If I remember correctly, here in Arizona we had a tax increase a few years ago because the Teacher’s Retirement fund was not doing as well as expected. When that happens, apparently the property owners have to make up the difference.
My question at the time was - so what, my 401K is not doing as well as expected either - who is going to make up that difference?
I actually remembered this a few weeks ago and dread the next property tax bill.
Maybe the good citizens will say ‘Enough is enough’ and put an end to this nonsense. If teachers can ride the highs, they should also ride the lows. It sucks for everyone.
Texas teachers are forced to contribute to the TRS, while most 401(k) plans are optional for private sector employees. (Whenever I left a Texas public school job for a private teaching job or to move out of state, I always took the hit and withdrew my money.) If you have money forcibly removed from your income into a pension, and they poorly manage the money, after making all these promises to you about how they’re going to pay you for the rest of your life after you retire, I guess that’s justification to stick it to the rest of the tax base for the short-fall.
Interesting, just as with other government pension plans, that many ‘retired’ teachers know how to work around the loopholes in the system here in Texas and continue to work after ‘retirement’ enabling them to draw their pensions while still being employed, many times within the same district from which they retired, essentially double dipping.