You are here: Home / Resources / Pensions

Pensions

 

Pension Update for Feb 9 2012

Pension Update for Feb. 1, 2012

What is IEA’s position on pensions?

  • Any proposed changes must be legal under the Illinois Constitution:
    “Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.” – Article XIII, Section 5
  • After meeting the constitutional requirement, any modifications should be fair to our members.
  • Any change must maintain the stability of the state retirement systems.

Talking Points

  • Teachers and university staff (TRS and SURS participants) do not receive social security for their years as an educator.
  • Teachers, Education Support Professionals and university staff have always paid their share for their retirement and never missed a payment.
  • For a majority of educators, their pension is their sole source of retirement income.

What can YOU do?

Members of the General Assembly need to hear from ALL IEA members! Some forms of communication are more effective than others. In order of effectiveness:

  1. Hold face-to-face meetings with your state legislators to discuss pensions.
  2. Call your state legislators’ offices and share your position.
  3. Send a hand-written original letter to your state legislators.
  4. Email your state legislators.
  5. Write a letter to the editor

Your pension – Why should you care?

  • Members of the Illinois General Assembly are going to try to “reform” pensions again this spring. This means cutting your retirement benefits, increasing your contribution toward your retirement, and possibly changing the Cost of Living Adjustment for current and future benefits.
  • The last attempt was in 2011 with Senate Bill 512 – a bill that was stalled by 132,000 IEA members and Association staff taking action! Our fight continues!
  • The next attempt at pension reform will come during the 2012 spring Legislative session.

What do YOU need to know?

  • TRS, SURS, and IMRF are Defined Benefit Plans – Protect them.
  • Defined Benefit plan – your retirement benefit is defined for LIFE (predictability)
  • Defined Contribution plan – (similar to a 401(k) plan) – your retirement benefit is determined by your ability to invest in tumultuous markets! Imagine retiring on a 401(k) in 2009 without social security benefits, as teachers receive none.
  • Many supporters of pension reform say that the state retirement systems are unsustainable. This is not true! Read more from Dick Ingram, Executive Director of TRS and read the fact sheet on “Why TRS is sustainable.”

Pension fact sheets:

Other information on the pension systems:

Illinois Teachers Retirement System (TRS)
TRS is a public pension plan for Illinois public school teachers and administrators.

State Universities Retirement System of Illinois (SURS)
SURS serves a diverse group of employees with occupations ranging from professors and teachers to clerical, building service workers, groundskeepers and provides retirement, survivor, disability, and death benefits to over 212,000 members throughout the world.

Illinois Municipal Retirement Fund (IMRF)
IMRF has provided employees of local governments and school districts in Illinois (with the exception of the City of Chicago and Cook County) with a sound and efficient system for the payment of retirement, disability, and death benefits.