Teachers Retirement System

Illinois Supreme Court
Brian Mackey / NPR Illinois | 91.9 UIS

The Illinois Supreme Court heard arguments Tuesday from a man who earned a state teacher pension after substitute teaching --  for one day. 

Carter Staley / NPR Illinois

When school districts outside of Chicago negotiate contracts, they do so with the assurance that the state will pick up the tab on pensions. To control growing pension costs, lawmakers capped salary bumps at 6 percent in 2005. This year, the cap tightened to 3 percent.

Illinois' teachers unions have collected more than 15,000 signatures on petitions urging state lawmakers to reverse that measure.  

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A recent report shows Illinois is facing a teacher shortage. But changes to teachers’ pensions — including cutbacks on the state’s share of contributions — spells uncertainty for anyone going into the profession.

Broken piggy bank
flickr: https://www.seniorplanning.org/

The Illinois state pension funds are among the worst-funded in the nation.  Yet, a new state law allows less money to be put toward that purpose. 

lockers with books inside
Carter Staley / NPR Illinois | 91.9 UIS

Between a new state pension plan and Gov. Bruce Rauner's amendatory veto of the Democrats' school funding plan, some school districts would be in for a big hit in July 2020. The two changes would have a particularly significant impact on districts with high rates of teacher turnover and declining enrollment.

State Sen. Andy Manar at podium
Dusty Rhodes / NPR Illinois | 91.9 UIS

The future of state funding for Illinois schools is still up in the air Monday afternoon. The fight over Senate Bill 1 — legislation that would overhaul the way Illinois supports k-12 schools — has such high stakes and such slim vote margins that it has turned into a parliamentary chess game. Now, the next move belongs to Gov. Bruce Rauner.

A globe in a classroom with the Illinois flag in the background.
Carter Staley / NPR Illinois | 91.9 UIS

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D Borman / flickr

Illinois' already strained bank account will be stretched by another $4.6 billion because of action taken by the state government's largest pension fund.

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It's a rare occurrence of late: A credit rating agency saying something positive about Illinois' finances. But the comment published Tuesday by Moody's Investor Service was tempered.

Illinois could end up having to put an additional half billion dollars into one of its pension funds next year.

As the name suggests, the Teachers Retirement System is the retirement benefits fund for all Illinois public school teachers outside of Chicago.

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Eric Skiff

The Illinois Teachers Retirement System voted last week to reduce the amount of money it assumes it will make from its investments. The board revised this rate of assumption down to 7 percent from 7.5 percent.

This change means that as lawmakers and the governor are putting together a budget for next fiscal year, they will have to come up with a projected $420 million more than what they might have expected to pay into the retirement system for teachers outside of Chicago. Illinois' total unfunded liability for all its pension funds is pegged at $111 billion. 

Carter Staley / NPR Illinois/Illinois Issues

Officials with the Teacher’s Retirement System made a decision today that could add another $421 million to Illinois’ annual pension costs.

 

Illinois Issues: The Next Pension Time Bomb

Mar 30, 2016

Illinois has more than $100 billion in pension debt. So far, attempts to fix it have been mostly illegal.

Brian Mackey/WUIS

Illinois' lack of a budget means public pension systems won't get their state contribution next month. That won't stop retirees from getting their checks. However, there could still be an impact.

Brian Mackey/WUIS

  The Illinois Teachers' Retirement System says it expects a lower return on its pension investments in the next year. That means the state will have to cover more of the cost of teacher pensions.

TRS says it's still a good assumed rate of investment return at 7.5 percent. That falls in line with similar pension systems nationwide. But it's not as profitable as 8-percent, which TRS had been using for the previous few years.

Dave Urbanek is with TRS. He says the unpredictable nature of the international economy spurred the decision to lower the rate.

uis.edu

The State Universities Retirement System now says a troublesome piece of last year's state pension-reform law may not cut retirees' pensions after all.  

William Mabe is the executive director of the retirement system. He tells The (Champaign) News-Gazette (http://bit.ly/QfeCu8 ) that the language in law that would cost retirees' a year of pension should be interpreted as if it didn't _ because it wasn't intended to.  
That's based on the interpretation the Teachers Retirement System has been using when it looks at the law. Now SURS plans to follow suit.  

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Arthur Public Library via IMLS DCC (creative commons)

Illinois’ biggest and most indebted pension system is beginning to implement changes tied to the pension overhaul passed this month. But officials are also making plans in case the new law is struck down.

The Teachers Retirement System is by far the biggest of Illinois’ five pension systems, with well over 360,000 members. TRS is also the biggest factor in the pension funding problem, accounting for more than half of the combined $100 billion shortfall.

Amanda Vinicky

The curtains are closing on the Chicago play "I Wish to Apologize to the People of Illinois" -- a timely production, given that today, Dec. 9, marks five years since Rod Blagojevich's arrest. Two trials later, he was convicted on 18 counts of corruption. At Blagojevich's sentencing hearing, the former governor said he was sorry for his mistakes. But Blagojevich was not the one making apologies in this show. He's not even a character -- just someone who gets mentioned now and again.