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University Pension Plan Fix Possible

Tue, 13 May 2014 09:59:37 CDT
By: IPR

A last-minute effort to stave off a rash of retirements at Illinois universities and community colleges is just one step from success. An association representing employees has reached an agreement with the attorney general to hold off implementing some of the state pension overhaul. Aaron Maduff, an attorney for the State Universities Annuitant's Association, hopes the agreement will reassure workers feeling pressure to either retire or lose a bunch of money, thanks to some obscure provisions in last year's pension overhaul:

   
“What this should do is resolve any need for anybody to retire before June 1 of 2015. Which is to say that the rush of retirements that is going on right now because of people's fears, this should obviate.”

Maduff and the attorney general's office agree to delay the effective date of several parts of the pension law key to university employees. That resolves problems stemming from a typo, literally. "2013" should have read "2014." It would also hold off changes in the way benefits are calculated, something projected to cost some employees tens of thousands of dollars. The agreement comes as the "We Are One" group of unions has filed for the entire pension law to be put on hold, until its lawsuit seeking to find the law unconstitutional has been decided.

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