Local · Trusted · Free
The Morning Impact — your neighborhood's most important stories, delivered every morning.
Magnolia ISD’s board of trustees voted to implement a new 401(a) retirement plan that will go into effect in the 2026-27 school year at its May 12 meeting.
What’s happening?
The 401(a) retirement plan is a component of the recently approved MISD employee compensation plan.
Assistant Superintendent of Operations Erich Morris said the plan was put in place as a way to incentivize loyalty, as employee eligibility does not start until they have been with the district for at least 10 years.
“We believe it's very aggressive. It's something that's going to separate us from other districts,” Morris said.
The breakdown
MISD officials stated the district does not match retirement contributions for employees who have worked for the district for less than 10 years.
Under the new 401(a) plan, once a person reaches the 10-year employment threshold, the district matches contributions on a semi-annual basis, starting at 2%, with that figure increasing to as high as 5% when they have been employed for at least 21 years.
In order to qualify, employment years do not have to be consecutive. If someone leaves the district and then returns, then their combined years of service will be taken into account when determining their eligibility.
More details
Morris said the district has the ability to make adjustments to the plan in the future or freeze contributions depending on potential economic and legislative changes.
