Illinois State Pension Update

With pension-faq-1the implementation of the FY18 Illinois State budget comes changes to state pensions. Of the three bills that make up the FY18 budget, SB 42 creates an optional third tier for new hires under many of the state’s pension systems. Included in the change are State Universities Retirement System (SURS), Teachers’ Retirement System (TRS) and State Employees’ Retirement System (SERS). The Illinois Municipal Retirement Fund (IMRF) is not included.

The goal of the newly created Tier III is to address some of the issues with Tier II. Although an effective date is yet to be determined, Tier III will give Tier II members and all new hires an option:

  1. Elect to be part of Tier II, or
  2. Elect to be in a new hybrid benefit known as Tier III

This new Tier III hybrid benefit will combine features of a defined benefit and a defined contribution plan. Learn more about this newly created pension benefit with the IEA’s Tier III FAQ.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s