A new retirement plan for Vermont teachers that would save the state $15 million a year and help to resolve a lack of pension funds was introduced by legislators on Friday, according to a story in the Burlington Free Press.
A panel led by state treasurer Jeb Spaulding originally recommended that the revised plan achieve $29 million in savings. The Vermont NEA teachers union threatened to challenge any changes to the current plan that would affect those who had already retired. The union and Spaulding compromised alongside lawmakers to create the new plan.
Under the plan, teachers would retire at 65 or when the sum of their age added to years of work is 90. The retirement age for teachers is currently 62. They would also pay roughly 1 percent more towards their pension. After retirement, a new health insurance system will now offer coverage to teachers' spouses, depending on years worked. The changes will not affect Vermont teachers who have already retired.
Retirement plan for Vermont teachers would save $15M yearly
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