TRS Issues and Answers: Pension Reform Proposals

5 Mar

Issue: A comprehensive overhaul of the Illinois pension code, House Bill 3411, was proposed on February 27, 2013 in the General Assembly by House Republican Leader Tom Cross of Oswego and State Rep. Elaine Nekrtiz, D-Northbrook.

TRS will not take a position on House Bill 3411. It is the legislature’s job to dictate the laws and rules that govern TRS and other public pension systems. The job of TRS is to administer those laws and work to secure the System’s finances so that the promises made to generations of teachers by the General Assembly can be kept.

Answer: The bill seeks to stabilize TRS finances and eliminate the System’s unfunded liability in 30 years by raising active member contributions, raising the retirement age for younger member, reducing the cost of living adjustment for all retired members, delaying all COLA payments until age 67 and requiring all new members after the bill becomes law to join a new “Tier III” that is composed of both a traditional pension and a 401(k) style retirement fund. Read the summary…

via TRS Issues and Answers: Pension Reform Proposals.


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