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View Diary: Middle Class Dies Twice in Detroit (63 comments)

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  •  When a company does not have money to support (0+ / 0-)

    a pension plan then it does not have the money.

    You can't get blood from a stone.

    The cost to the employee varies by plan. In Illinois, Teacher Retirement System members contribute 9.4% each pay period to TRS.
    That's the deduction from their pay check.

    But it's not the cost.

    Remember - if the plan ends up overfunded it's not their money, and if it is underfunded the employer must make up the difference if it can.

    That means you can't calculate the actual cost.

    Presumably, the employer is looking at the total actuarial cost of the plan when calculating how many teachers it can afford and how much it can pay them.  But there is no way to know what salary teachers would get if they and their employer were not paying into TRS.

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