Research from University of California, Berkeley shows that for
the vast majority of teachers, the California State Teachers’
Retirement System Defined Benefit pension provides a higher, more
secure retirement income compared to a 401(k)-style plan.
The study, conducted by Nari Rhee, PhD, of the UC Berkeley
Center for Labor Research and Education and William Fornia, FSA,
of Pension Trustee Advisors, shows that switching to an
account-based retirement system—such as a 401(k) or cash balance
plan—would sharply reduce the retirement income security of
teachers who account for a large majority of the educational
workforce in California.