In a little over two months Illinois’ pension reform law is set to kick in, and now there is a big decision facing many public university employees.
If thousands don’t retire before July, they could lose a substantial portion of their retirement income.
At issue is a benefit calculation called the ‘money purchase’ option - when eligible employees retire, they receive a monthly benefit through either the money purchase option, or a formula based on years of employment, whichever is greater.
The way calculations are made is changing and as many as 10,000 employees could see a cut in benefits if they retire after the change.
The State Universities Retirement System is lining up consultations with employees to explain how things will work.
Those that support the change in the plan say that this was an unintended consequence.