Charter schools worry proposal could hurt pensions

COLUMBIA, S.C. (AP) — Charter school advocates worry that a proposed federal rule could force South Carolina and other states to dump charter school employees from state retirement systems.

The executive director of South Carolina’s Public Charter School Alliance says the proposed IRS rule could affect about 900 teachers in the state. Mary Carmichael fears charters could lose most of their teachers to traditional schools if they’re faced with losing their pension benefits.

The fear stems from a proposed IRS definition change on what can be considered a government plan. IRS said in a statement Friday the proposal is still in draft form and does not exclude charter schools.

But the National Alliance for Public Charter Schools says charter schools appear to not meet the new definitions, creating a legal risk for states.