US - Four of Florida's education associations have backed an historic new 'Model Plan' for retirement savings to close a feared shortfall in pension benefits.
Tom Herndon, spokesperson, Independent Benefits Council, said: "This is the first time in the nation that a plan this comprehensive and with such outstanding terms will be offered to educators. More of educator's dollars - perhaps billions more in Florida alone - will be available to them when they retire."
The Model Plan has been made necessary by changes in IRS regulations regarding tax-sheltered accounts, or 403(b) plans, due to come into force at the beginning of 2009.
In a poll, 90% of Floridian teachers responded they were concerned about meeting financial needs on retirement. The poll also revealed that 80% were not satisfied with the investment returns of their current tax-deferred investment plan and would like to see the Model Plan made available to them.
The plan was negotiated by the Florida Education Association, Florida Association of School Administrators, Florida School Boards Association and Florida Association of District School Superintendents.
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