Retirement Security Committee

Don’t keep your head in the sand… Your retirement depends on it!

Retirement Security: IEA Joint Governance/Staff Task Force

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The Teachers’ Retirement System (TRS), the State Universities Retirement System (SURS), and the Illinois Municipal Retirement Fund (IMRF) were established by legislation in the Illinois General Assembly. Your retirement is guaranteed by law, but the retirement may be altered by periodic legislation or during a Constitutional Convention.

For more information refer to the Pension code section of the Illinois Compiled Statutes.

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TRS, SURS, and IMRF have Defined Benefit plans rather than Defined Contribution plans for their members. You need to understand the difference between the plans, and why the Defined Benefit plan works best for you!

For more information refer to:

• The IEA fact sheets
• TRS defines a defined benefit plan vs. a defined contribution plan and outlines why it shouldn’t change
• The Illinois Municipal Retirement Fund analyzes the two systems.
• Illinois Retirement Security Initiative September 2007 Newsletter at the Center for Tax and Budget Accountability

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TRS and SURS are government pension plans whose members do not contribute to Social Security. At retirement, those individuals who find themselves eligible for Social Security due to other types of employment may find those benefits affected by two provisions of Social Security.

The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) alter the way in which a Social Security benefit is calculated for individuals who have paid into both Social Security and a government pension plan.

For more information refer to:

• The IEA’s federal fact sheets
• NEA’s stance and information ab0ut GPO and WEP
• The Social Security Administration addresses GPO and WEP
• The Teachers’ Retirement System’s take on the issue

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IMRF members do contribute to Social Security, so at retirement most individuals are entitled to full benefits from both IMRF and Social Security. The WEP and/or GPO may apply if you earned service credit with IMRF during years that you did not also contribute to Social Security.

For more information refer to:

• The IMRF’s FAQ section regarding this issue

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Important changes have been made to 403(b) investment plans. If you have such an investment, please check with your financial adviser or go to the following web site for additional information.

• The IRS’s document explaining the changes
• And, the IRS document that specifically addresses relief from immediate compliance

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Resources:

• PEN Webinar Feb 26 2010 Compiled Presentation
• NIRS pension factsheet

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