Published: May 04, 2008 03:13 pm            

UPDATE — Teacher pension transfer plan hits key date

CHARLESTON, W.Va. — Monday marks D-Day in the campaign to allow teachers and others to leave West Virginia’s only public 401(k)-style retirement plan for another state-run pension program.

Though enrollees have until May 12 to elect to transfer, Monday is when they can hand in the necessary forms at their schools or offices.

Officials expect heavy turnout for “Selection Day.” Supporters certainly hope that’s the case: just 2,251 Teachers’ Defined Contribution plan participants had requested transfers as of Friday, according the latest figure posted by the state’s Consolidated Public Retirement Board.

Transfers will occur only if at least 65 percent, or 12,343 enrollees, make that choice. Those who don’t would still keep their individual TDC accounts.

Ben Shew is among those who remain happy with their accounts, in which enrollees invest contributed funds to generate retirement benefits. Director of school transportation at the state Department of Education, Shew helped oppose the attempted 2005 merger of the two teacher retirement programs.

Shew has urged fellow TDC members to sit down with a professional investment adviser before deciding whether to transfer.

“People need to look at this from an individual standpoint, and not a group standpoint,” Shew said. “If you don’t really comprehend your options, you could end up making a really bad decision and not realize it until it’s too late.”

Shew noted that the personalized benefit projections mailed earlier to enrollees assume future annual pay raises of between 3 percent and 6 percent. He and others question whether those were realistic.

        

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