Promoting & Protecting the Economic Well-Being & Quality of Life for All Retired School & Public Employees

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Educating Candidates About PERA

Most candidates are not knowledgeable about the Defined Benefit Plan (which takes the place of Social Security). Public employees ARE NOT covered by Social Security.

However, the Defined Benefit Plan works like Social Security in that the retiree knows what their benefits will be at retirement.

From time to time, there are legislative proposals that would, if passed, change PERA to a Defined Contribution Plan. A Defined Contribution Plan is a 401K plan. The 401K Defined Contribution plan began as a perk for highly paid executives and was designed to shelter income from taxes, as well as a supplement to Social Security in retirement. A 401K IS NOT A PENSION REPLACEMENT.

If retirement planning is like a three legged stool -- pension, social security, and savings, then we are missing two legs. PERA serves as a pension and as a replacement for Social Security. The only leg left is savings/investments! Due to the financial meltdown the only leg left has been severely damaged. Without PERA's Defined Benefit Plan, current and future public employees could be pushed into poverty and require government assistance in their retirement years.