Lawmaker wants to replace teachers’ pensions with 401(k)-style system

New Missouri teachers might be able to invest in 401(k)-style accounts rather than traditional pensions under a bill proposed by a state legislator. Rep. Jered Taylor, R-Nixa, wants teachers to have the opportunity to invest 3 to 50 percent of their pay into the accounts. 

Currently teachers invest 14.5 percent of their pay in a pension system that guarantees a set monthly benefit. Opponents say the proposed change would bankrupt the pension system. 

Most teachers are required to be in the public school system for at least five years to qualify for pension benefits. Taylor’s bill would allow teachers to take their 401(k) with them. 

Some studies say the current system doesn’t favor short-tenure teachers, but other studies say long-term teachers benefit from it. 

Read more: Springfield News-Leader.

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