In addition to their regular state pensions, teachers and their employers can contribute to optional 403(b) retirement programs, which are similar to tax-deferred 401(k)s.
New York City's 403(b) program is controversial because beneficiaries are guaranteed an 8.25 percent annual return on their investments under state law. On Long Island and elsewhere, by contrast, returns are similar to those provided by 401(k) money market accounts, according to the statewide New York State United Teachers union.
"They're in the range of 2 to 3 percent," said Carl Korn, a union spokesman.
