Teacher Retirement & Disability

Teachers participate in state retirement plans that provide benefits to teachers meeting the retirement requirements. Retirement provisions vary by state. Teachers can find specific information about the retirement plans in their state by visiting their state department of education website.

Features

Most states require teachers to participate in a defined benefit retirement plan. Teachers generally contribute a small percentage of each paycheck to their retirement fund and their employer contributes as well.

Time Frame

Teachers typically do not qualify for any retirement benefits until their accounts are vested after a certain amount of years, which varies from about three to 10 years. To receive full retirement benefits, teachers must complete a certain number of service years. Minimum service years range from 20 to 35 years. Typically, teachers who reach the age of 60 can retire sooner if they have at least five service years; however, their benefits will be prorated based on the number of years worked. If a teacher can no longer work as a result of a disability, most states offer disability retirement regardless of the number of years of service.

Benefits

Retirement benefits are calculated using a formula, which varies widely by state. The formula usually involves calculating the average of the teacher's three to five highest years of compensation and then multiplying the average by a certain percentage (benefit multiplier), then dividing by 12 to determine monthly benefits. The benefit multiplier percentage varies by state.

References

• MIT Press Journals: An Introduction to Teacher Retirement Benefits
• State of Connecticut: 50 State Survey of Certain Teacher Retirement Plan Provisions
• National Education Association: Retirement Toolkit