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News Release - State Board Opposes IRS Proposal

Feb. 9, 2012

News Release

State Board of Education opposes IRS proposal

The Colorado State Board of Education members united in their opposition to a proposed regulation by the Internal Revenue Service.

As a part of the state board’s meeting, board members discussed the IRS proposal that would force states to prohibit charter school teachers from participating in the state retirement plans. Currently, every state that authorizes charter schools either requires or permits charter school participation in the state’s retirement system.

“This regulation would negatively impact nearly all charter school teachers in the country,” Board Chairman Bob Schaffer said. “In essence this regulation would strip charter schools of their status as government groups when it comes to retirement system participation.

“If that were to happen, teachers at those charter schools who now participate in the Colorado Public Employees Retirement Association would be forced to find jobs elsewhere or forfeit their accrued pension wealth.”

More than 90,000 charter school teachers – more than 90 percent of our country’s charter school workforce – will be affected by the proposed regulations should they go into effect according to the National Alliance for Public Charter Schools.

Board members, unified in their concerns, signed a letter requesting all of Colorado’s congressional delegation to urge Treasury Secretary Geithner and Education Secretary Duncan to withdraw the proposed regulation.

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