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Protect Charter School Teacher Retirement Funds

The Internal Revenue Service recently issued a Proposed Regulation titled “Determination of Government Plan Status.” This regulation would force states to prohibit charter school teachers from participating in state retirement plans. Presently, every single state that authorizes charter schools either requires or permits charter school participation in the state’s retirement system. Therefore, this regulation would negatively impact nearly all charter school teachers in the country. 

In total, the National Alliance for Public Charter Schools estimates more than 95,000 charter school teachers - more than 93% of our country’s charter school workforce - will be affected by the Proposed regulations. All of these teachers will be forced to either leave their charter schools or lose their accrued pension wealth. For this reason, we cannot allow these regulations to be adopted in their current form.

Please assist us in preventing the adoption of these unfair regulations.


Advocacy Updates


Additional Information

  1. Potential impact in your state
  2. NAPCS' position statement
  3. NAPCS' public comments to the Treasury Department
  4. Advanced notice of proposed IRS regulations
  5. Slide show explaining the issue
  6. Letter to IRS Commissioner from Chairman Kline
  7. Letter to IRS Commissioner from Senate Republicans
  8. Letter to IRS Commissioner from Bipartsian House Members
  9. Letter to IRS Commissioner from Senator Landrieu 
  10. Public Comments Submitted by The Council of Chief State School Officers (CCSSO)
  11. Public Comments Submitted by the National Council of La Raza (NCLR) 
  12. California State Teachers's Retirement System (CALSTRS) commentary on proposed regulations
  13. Public Comments Submitted by the California State Teachers's Retirement System (CALSTRS)

Media Coverage 

“Charter Schools Worry Proposal Could Hurt Pensions,” The Associated Press, February 10, 2012 http://www2.wsav.com/news/2012/feb/10/charter-schools-worry-proposal-could-hurt-pensions-ar-3209247/
 
“Charter Advocates Claim Rules in Works Would Affect Pensions,” Education Week, February 2, 2012 http://blogs.edweek.org/edweek/campaign-k-12/2012/02/charter_advocates_say_federal.html?qs=charter

“Possible IRS rule change alarms charter schools,” Arizona Daily Star, February 3, 2012 http://azstarnet.com/news/local/education/precollegiate/possible-irs-rule-change-alarms-charter-schools/article_fa88d480-a62b-52f0-807f-488174831da4.html
 
“Charter school pensions in limbo,” Arizona Family, February 3, 2012 http://www.azfamily.com/home/Charter-School-Pensions-in-Limbo-138683789.html

“Charter school teachers face exit from Arizona state retirement system,” MSNBC (Phoenix, AZ), February 4, 2012 http://www.msnbc.msn.com/id/46259693/ns/local_news-phoenix_az/#.TzAIM-NSRyE

“SIMMONS: New regulation eyes accounts of charter teachers,” The Washington Times, February 5, 2012 http://www.washingtontimes.com/news/2012/feb/5/simmons-new-regulation-eyes-accounts-of-charter-te/

“Is the IRS Grinding an Axe for Teachers' Unions?,” The Weekly Standard, February 6, 2012 http://www.weeklystandard.com/blogs/irs-grinding-axe-teacher-unions_621035.html

“Change in Governmental Plan Definition to Affect Charter Schools,” PlanSponsor Magazine, February 7, 2012 http://www.plansponsor.com/Change_in_Governmental_Plan_Definition_to_Affect_Charter_Schools.aspx

“Charter school teachers retirement in trouble?,” WBTV (Charlotte, NC), February 6, 2012 http://www.wbtv.com/story/16688379/charter-school-teachers-retirement-in-trouble

“Charter school teachers face exit from Arizona state retirement system,” The Ahwatukee Foothills News, February 6, 2012 http://www.ahwatukee.com/news/article_1bff0e91-4ecd-5a17-ba4f-e2bb1d1cb6db.html

“South Carolina Schools Chief Blasts Draft Pension Rules,” Education Week, February 7, 2012 http://blogs.edweek.org/edweek/state_edwatch/2012/02/south_carolina_schools_chief_blasts_draft_pension_rules.html?utm_source=twitterfeed&utm_medium=twitter&utm_term=education,+policy

“IRS Regulation Could Threaten Charter School Teachers’ Pensions,” The Heartland Institute, February 10, 2012 http://news.heartland.org/newspaper-article/2012/02/10/irs-regulation-could-threaten-charter-school-teachers-pensions

“Charter School Teachers Fear IRS Rules Change,” The Washington Times, February 12, 2012 http://www.washingtontimes.com/news/2012/feb/12/charter-school-teachers-fear-irs-rules-change/

“Pending IRS rules might push charter school workers out of public pensions,” The Statesman, February 19, 2012 http://www.statesman.com/news/texas-politics/pending-irs-rules-might-push-charter-school-workers-2186728.html

“Charter Advocates Say Planned Rules Threaten Pensions,” Education Week, February 21, 2012 http://www.edweek.org/ew/articles/2012/02/22/21policy.h31.html

“IRS targeting charter schools?,” One News Now, February 28, 2012 http://www.onenewsnow.com/Education/Default.aspx?id=1544596

"Charter school employees to lose retirement benefits?," Hudson Reporter, June 10, 2012 http://hudsonreporter.com/view/full_story/18931162/article-Charter-school-employees-to-lose-retirement-benefits---Hoboken--JC-schools-protest-possible-pension-%20%20losses-?instance=secondary_stories_left_column