Ungar keeps saying that the matching state contribution to both the defined and the optional retirement plans is money that would be paid as salary if the state didn’t do it that way, so the employees are paying 100% anyways. Wait a second. If the state decided NOT to match contributions, would that be a cut in pay? Of course not. It might be a cut in benefits, but it’s not a cut in pay. Just ask the IRS what they tax as income. No, wait...
You’ve put into words what I’ve been trying to—I was thinking, “So the money put into the bennies is taxed as if it were salary given to the teacher, huh??”