Retirement-Pension
Issue Background

Pension Reform

IPA supports the constitutional protection of state pensions for school leaders, and opposes changes in benefits or benefit structure to current pension system members and retirees.

After pension reform (SB 1) was struck down by the Illinois Supreme Court, lawmakers and Governor Rauner have been exploring other ways to lower the cost of pensions to the state. 

This August 25, 2016 WSIU report outlines the deal that was struck as part of FY17 budget negotiations, to tackle the pension issue related to more money for Chicago Public Schools. 

"The spending plan legislators passed in June calls for giving Chicago Public Schools some $215 million, but only once they pass what Rauner calls 'comprehensive pension reform.' CPS passed a $6.3 million dollar budget Wednesday that relies on the money coming through."

In addition to discussions of a framework to change or reduce pension benefits, on the recommendation of several actuaries, the Teachers Retirement System board on August 26, voted to reduce their expected investment returns from 7.5% to 7.0%. This reduction in expected returns may end up costing the State an additional $420 million in pension payments for the coming fiscal year. Read more about the decision here.