Teaching Profession

Charter Advocates Say Planned Rules Threaten Pensions

By Sean Cavanagh — February 21, 2012 1 min read
  • Save to favorites
  • Print

Charter school advocates have sounded a warning about a federal rule in the works that they say could undermine the ability of teachers in those schools to participate in state retirement plans.

Facing those concerns, the Internal Revenue Service earlier this month extended the deadline on its Advance Notice of Proposed Rulemaking, which says that federal officials are seeking to clarify what kinds of pension systems qualify as “governmental plans,” which would affect their regulation.

The National Alliance for Public Charter Schools, in Washington, worries that the proposal, first unveiled in November, could affect the ability of states’ pension systems to meet the definition of a “governmental plan,” if they allow charter employees to participate. As a result, states would not “accept the risk of allowing charter school teachers to continue their participation in state plans,” the alliance said in a statement.

The charter school group urged its members to ask U.S. Secretary of the Treasury Timothy F. Geithner and Secretary of Education Arne Duncan to make sure the regulations are crafted in a way that protects charter schools. The IRS’ deadline for public comments on the notice of rules is June 18, and it has set a public hearing for July 9.

The notice also drew objections from U.S. Rep. John Kline, R-Minn., the chairman of the House education committee, and Rep. Duncan Hunter, R-Calif., the chairman of the subcommittee on early-childhood, elementary, and secondary education, who co-wrote a letter to IRS Commissioner Douglas Shulman warning that regulations “could effectively prevent many public charter schools from recruiting or retaining veteran traditional public school teachers.”

According to the alliance, 24 states have laws that mandate charter participation in state-sponsored retirement systems, and 18 others permit it. The alliance estimates that more than 90,000 employees, mostly teachers, would be affected if the rules as envisioned take effect.

Officials from the Treasury Department declined comment on the advanced notice. An Education Department official said that staff members planned to have a conversation with the Treasury Department about the proposed rules, but declined further comment.

A version of this article appeared in the February 22, 2012 edition of Education Week as Charter Advocates Say Planned Rules Threaten Pensions

Events

Budget & Finance Webinar Creative Approaches to K-12 Budget Realities
What are districts prioritizing in 2026? New survey data reveals emerging K-12 budgeting trends.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
From Coursework to Careers: Expanding Work-Based Learning and Industry Credentials in CTE
Expand work-based learning and industry credentials in CTE to connect classroom learning with real careers and prepare students for future success.
Content provided by Project Lead The Way
College & Workforce Readiness Webinar Data-Driven and District-Ready: What EdWeek Research Tells Us About the CTE Market
Discover how to sharpen your positioning in a fast-moving market of CTE with actionable strategies grounded in EdWeek Research Center data.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Teaching Profession Download 5 Strategies for Supporting K-12 Teachers: Lessons From Texas
An April 14 event hosted by Education Week and Texas Public Radio surfaced challenges, and potential solutions.
1 min read
Teaching Profession How Powerful Are Teachers’ Unions? It Depends on the State
Teachers unions face challengers for policy influence as new state-level organizations emerge, adding additional voices to education debates.
5 min read
BRIC ARCHIVE
K-12 teaching is among the most heavily unionized profession, but unions aren't monolithic—their strength is shaped by a multitude of factors. Teachers in Portland, Oregon gather to press the state legislature for more funding on April 10, 2019
Mark Graves/The Oregonian via AP
Teaching Profession What Teachers Love (and Hate) About Appreciation Week
Teachers want thoughtful, inclusive appreciation, not gimmicks or last-minute ideas.
2 min read
Image of an apple with a bite out of it in shape of heart. Also a box of donuts with "Clearance" stikcer on it.
Collage by Laura Baker/Education Week with Canva
Teaching Profession AI Can Help Teachers Craft Their Assessment Portfolios. Is That Cheating?
The tools help guide teacher reflection for the portfolios used for PD and licensing—or be used to cheat.
9 min read
Northside American Federation of Teachers President Melina Espiritu-Azocar, right, speaks with middle school teacher Celeste Simone during a Microsoft AI skilling event, Saturday, Sept. 27, 2025, in San Antonio.
Northside American Federation of Teachers President Melina Espiritu-Azocar, right, speaks with middle school teacher Celeste Simone during a Microsoft AI skill-building event on Sept. 27, 2025, in San Antonio. As use of generative AI ramps up, it could affect the integrity of the portfolios teachers have to assemble in many states to meet licensing requirements.<br/>
Darren Abate/AP