Teachers generally accept lower base salaries in exchange for future pension benefits, and the plans are funded in part through contributions that are considered part of their pay packages. (educationnext.org)
Again, every state needs these assumptions to be accurate, or else it could risk over - or under - saving for future pension payments. (teacherpensions.org)
The employer is obliged to put aside sufficient savings to meet the expected future pension payments. (econofact.org)