Contact: Will Potter   (202) 822-7823

June 29, 2007

NEA Members Discuss Threats to Retirement Security

WASHINGTON -- Experienced educators have a responsibility to reach out to young colleagues and explain how eliminating defined benefit plans threatens their right to a stable, secure retirement. That was a key message that more than 200 educators took away from the National Education Association Retirement and Health Benefits Forum in Philadelphia today.

“Our young members are very smart, but they’re also very young,” said NEA Secretary-Treasurer Lily Eskelsen. “NEA members that are reaching retirement age need to emphasize to them what’s at stake with campaigns to overhaul benefit programs, and give them information “so they know they’re being sold down the river.”

NEA does not oppose defined contribution plans, which are often simply called 401k plans. But 401k plans must be one part of a comprehensive retirement plan that includes a pension plan and social security.

Across the country, defined benefit plans have been under attack in favor of heavy—and often exclusive—emphasis on defined contribution plans.

Defined contribution plans offer more freedom, tax savings and rollover options when changing jobs. But many educators contribute too little too late, or don’t have the guidance to invest wisely. Defined benefit plans are “boring” and don’t let educators withdraw money for a luxury purchase, Eskelsen said, but that’s why they’re needed: they provide a stable, guaranteed income throughout retirement.

Attendees also heard from Bill Raabe, NEA’s director of collective bargaining and member advocacy, and Dennis Van Roekel, NEA vice president, among others. They discussed offensive and defensive communications, strategies for protecting health and pension benefits, and successful affiliate campaigns.

NEA members will continue their campaign to protect retirement benefits at a forum this fall in Washington, D.C.

For more information:
nea.org/retired

For a full listing of scheduled events at the NEA Annual Meeting and Representative Assembly:
www.nea.org/annualmeeting

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The National Education Association is the nation's largest professional employee organization, representing 3.2 million elementary and secondary teachers, higher education faculty, education support professionals, school administrators, retired educators
and students preparing to become teachers.