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Center for Labor Research and Education

UC Berkeley

Most Kentucky Teachers Are Significantly Better off with Pensions than 401(k)s

Published Web Location

http://laborcenter.berkeley.edu/kentucky-teachers-pensions-vs-401ks/
Abstract

The UC Berkeley Center for Labor Research and Education analyzed the career patterns of Kentucky teachers in order to estimate their retirement income from an idealized 401(k) plan, compared to the lowest-tier pension offered by the Kentucky Teacher Retirement System (TRS) for those hired since 2008. The results of our analysis indicate that the current Kentucky TRS pension is better matched to meet the retirement needs of the teaching workforce than a 401(k)-style plan.

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