Updated: Senate passes TRS pension bill – Illinois Education Association

21 Mar

Sen. President John Cullerton put a bill in front of the Senate Wednesday — twice — that would have a direct impact on active Tier 1 TRS employees who have not yet submitted their letters of retirement.

IEA is OPPOSED to the bill.

The bill, known as SB1, forces current Tier 1 employees to choose to freeze their pensionable salaries (the salary on which their pension would be based) where the salaries are today and to forgo access to any state provided health insurance, to retain a 3 percent compounded COLA in retirement.

Or, active Tier 1 employees can continue to count salary increases toward their pensions but they would see their COLA reduced in retirement to half of the consumer price index or 3 percent simple COLAs, whichever is less, to retain access to a (as yet undefined) healthcare plan. The legislation even suggests that this access could be to a plan in which the participating retiree could be required to pay for the entire cost of their health insurance (unlike TRIP as we know it today). More…

via Updated: Senate passes TRS pension bill – Illinois Education Association.

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