Teacher pensions and local property taxes are mutually exclusive

While teachers are employed locally, they are licensed by and are technically employees of the state of New Jersey. Teachers pay into the fund and the local board of education forwards that money every three months to the fund. The state is supposed to contribute a proportional amount into the fund; the teachers’ pensions cost the local district and municipality zero. So there is no connection between local property taxes and teachers’ pensions.

A teacher’s contribution rate is based on age and salary at enrollment. The pension payment is based on a formula involving the last three years or three highest years’ salary and years of contribution. Herein lies the problem.

At the top — people with connections — obtain large increases in salary the last three years of employment and state employees get semi-retirement fat-cat jobs in Trenton and in colleges and raid the fund. Also, the state in all administrations has not made its required contributions.

The Teachers Pension and Annuity Fund has a history of being one of the best-managed funds in the nation. The problems in Trenton with corruption, poor administration and non-contribution have nothing to do with local property taxes.

Theresa E. Ward

Edison