A General Assembly Interim Education Committee has recommended a review of the effect of a defined contribution plan - hoping it would help improve teacher retention. The Indiana State Teachers Associations sees problems of switching to a Defined Contribution Plan.
The IRTA does not believe a DC Plan will help Indiana entice more teachers into the profession and actually hurt recruitment and retention of teachers.
It is interesting to note that the Public Employees of Indiana have had this option for a few years and yet only ten percent of the employees have signed-up for the Defined Contribution Plan.
To more clearly define the issue, here are the definitions of Defined Benefit and Contribution Plans: