Catherwood LibraryILR School

An analysis of the North Dakota public teachers' pension system showed that switching new hires to 401(k)s from pensions would harm the existing pension benefits. Without new members, the pension fund would have trouble paying benefits to existing members, and would go broke in about 30 years, leaving the burden of making up the difference to taxpayers. Spokesmen for the North Dakota Education Association and the state Public Employees Association says that hey would rather increase pension contributions from both teachers and employers than to give new workers 401(k)s. Both said that ending the pension system would cost more than trying to save it, and that they were willing to work with the state to try and fix it. The North Dakota Education Association also said that it would support raising the retirement age for newer teachers.