Benefits October 19, 2007

NYC to Pay Teachers $160M to Settle Dispute over Lost Pension Contributions

October 19, 2007 (PLANSPONSOR.com) - New York City will pay $160 million to retired and active teachers over the next decade, finally settling a long quarrel over whether the city was making proper pension contributions.
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The battle between teachers and the city over whether the city failed to pay the correct amount of interest on pension contributions has been waging for 37 years, according to the wire service.

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The city now says it will pay $160 million to about 40,000 retired and active teachers, to rectify the matter out of court, where a judge might have handed down an even heftier award to the teachers.

The city also promised to give teachers who work in the 200 schools with the lowest test scores and graduation rates $3,000 bonuses if the school raises student achievement significantly.

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