Teacher Pension Funds Going Bankrupt

 ???????
Teachers' Pension
         Funds


My friends and I who are retired school teachers have been receiving 
disturbing news for the last several years. It appears teacher 
retirement  pension plans are grossly under-funded. Researchers 
(USA Today) owe pensioners about $600 billion more than the 
funds have. About $160 billion is due to recent developments in the 
stock market, but much the discrepancy is due to "funds lowballing 
the cost of future benefits." 


Every public pension fund in this country is either bankrupt or on the 
brink of it. Fortunately, Ohio's teachers' fund, STRS, is better off than 
most, but it requires immediate attention to make up the lost funds.


It did not help that in 1999, the STRS Board instituted the 
35 year/88.5% retirement benefit. That short-sighted decision, plus 
the down turn in the market, has allowed the fund to fall into the
present situation.


 A number of Ohio's retired teachers began teaching for less than 
$5,000 a year with the consolation that they would have a good 
retirement with their health care provided. They have seen the health 
care benefits decrease and now have to worry about value of 
their pension.