Letter: Public workers, tax-exempt savings
2008 -- Stock photo of an old-fashioned gold watch resting on a Benjamin Franklin, $100, one hundred dollar bill. Photo credit: istock Credit: ISTOCK/
In "LI's soaring pensions" [News, Jan. 29], you forgot to mention that many teachers and other public workers are also eligible for a 403(b) retirement plan, which allows them to shield part of their salaries from taxes in a savings/investment plan. This is in addition to their pensions, and is something that the public unions are not publicizing, because it's a bonanza for these workers.
Most employers in the private industry have discontinued the defined benefit plan and changed to the 401(k), which is similar to the 403(b). In many cases, employees contribute 3 percent, and private employers match that. The worker can often contribute an additional 10 percent without a match from the employer.
Why should teachers and other public workers be eligible for a 403(b) and still have their state pensions? To be fair and help the long-suffering taxpayers, public workers should forgo pensions and save exclusively through the 403(b), like the rest of us.
Albert J. Prisco, East Northport
