U Of I: Illinois Pension Overhaul Had Costly Mistake

University of Illinois officials have worried for months that state pension reforms will push employees to retire early. But they say language inadvertently placed in pension law may provide even stronger
incentive.
 
Avijit Ghosh is a senior adviser to university President Robert Easter. He said at a trustees' meeting Friday that the pension law passed last year would effectively take away a year of pension benefits from about 4,000 University of Illinois employees if they don't retire before July 1. Those pensions would be reduced by up to 35 percent.
 
The change affects employees at other public universities, too.
 
State Sen. Daniel Biss was involved in drafting the legislation and says the
fix would be simple. But some lawmakers may be uneasy about reopening the
pension legislation.