(Carolina Journal) Changes could be coming soon for voluntary supplemental retirement plans that are set up for teachers and employees of school boards across North Carolina.
Those supporting the changes say they would expand retirement plan options and reduce fees for teachers, while opponents say they would limit teachers’ choices by squeezing out smaller companies that offer options across the state.
The state treasurer’s office is in the process of setting up a centralized supplemental retirement plan for employees of local school boards across the state. The retirement plan is called a “403(b)” plan, which is used by employees of nonprofits and government entities.
Contributions are made pre-tax, and the plans operates much like the 401(k) plans used in the private sector. In the program, teachers contribute their own money in investment options. It is an optional retirement plan and is in addition to the state pension plan for teachers. As many as 35,000 teachers currently participate in 403(b)s, the treasurer’s office estimates.
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