Why Should You Inform Your Employees About the 403(b)?

As a school system administrator, are you doing everything you can to help your teachers retire with dignity?

Facts:

• After 30 years of service the average teacher has a pension income of $1,500 per month or about 40% of pre-retirement income.
• Other than social security the ONLY way to make up the obvious shortfall in retirement income is through personal savings.
• A 403(b) plan offers the teacher an opportunity to maximize personal savings through the unique benefits of tax advantaged accumulation for retirement.

How many of the teachers in your school system are maximizing the benefits of tax advantaged accumulation through their 403(b) plan?

Facts:

• A 2005 “Wall Street Journal” online poll indicated that income levels are a primary determining factor for participation in both 401(k) and 403(b) retirement plans. Specifically the findings indicated the following:

Annual Income:	Participation Rate:
$35,000 or Less	22%
$35,001 to $49,999	40%
$50,000 to $74,999	54%

• Considering the average national income for teachers, according to the National Education Association, is $47,674; therefore, the average participation rate should be approximately 40%.

What is the 403(b) participation rate in your school system?

100% participation is the goal because everyone should be able to retire with dignity! ValuTeachers is committed to providing retirement education for you and your school system.