Retaining Effective Teachers Policy
The state should ensure that pension systems are neutral, uniformly increasing pension wealth with each additional year of work.
Alaska provides a defined contribution pension plan for teachers. In a defined contribution plan, benefits are based on employee and employer contributions plus investment earnings or losses earned by those contributions, rather than on a benefit formula. Therefore, the state's plan is neutral, with pension wealth accumulating equally for all teachers for each year of work.
Alaska Department of Administration, Retirement and Benefits, DCR Plan General Information http://doa.alaska.gov/drb/dcrp/dcr_plan/general_info.html
Alaska recognized the factual accuracy of this analysis.