Best practices
Alaska offers a defined contribution pension plan that is neutral, with pension wealth accumulating in an equal way for all teachers for each year of work. In addition, Illinois, Minnesota and New Jersey offer a defined benefit plan with a formula multiplier that does not change relative to years of service and does not allow unreduced benefits for retirees below age 65. Illinois and New Jersey are further commended for ending their previous practices of allowing teachers to retire well before Social Security age without a reduction in benefits.