More than three-quarters of education employees in West Virginia have voted to change from their defined-contribution pension plan to a traditional defined-benefit plan. AFT-West Virginia, working closely with the independent West Virginia School Service Personnel Association (WVSSPA), conducted joint education and information sessions across the state to educate their members about what was a complicated pension plan selection process. Together, the two organizations represent more than 16,000 employees in the state.

"These employees, trapped in a failed retirement plan that had little chance of producing enough money for retirement, can now count on a secure and viable retirement benefit," says AFT-West Virginia president Judy Hale, who is also an AFT vice president. "Education employees, who have dedicated their lives to the state, deserve no less."

In the end, more than 75 percent of employees opted to move from the underfunded Teachers' Defined Contribution Plan to the Teachers Retirement System. The 75 percent figure was important because that threshold was needed to trigger millions of dollars in state funds to help with transition costs. Those who voted not to transfer can continue with the defined-contribution plan.

Bob Brown, executive secretary of the school personnel association, says that those transferring from the defined-contribution plan should not be required to pay a substantial penalty in order to receive the same level of benefits as those in the traditional plan, many of whom have fewer years of service. WVSSPA represents classified employees in the state.

Hale pointes out the organizations did not pursue any legal actions during the selection process because they didn't want to introduce any further confusion, but there could be legal action in the future.

June 3, 2008