Illinois university officials have offered up a plan to help combat the state's nearly $100 billion pension shortfall.
plan, created with help from the University of Illinois Institute for
Government and Public Affairs, calls for workers at state colleges
and universities to kick in an additional 2 percent to their pension funds. The increase would be phased in over a four-year period, reports the AP. Also under the plan, the 3 percent compound interest on cost-of-living-adjustments, or COLAs, would change to one-half of the inflation rate.
The proposal, SB 2591,
also calls for state universities and colleges to take over the employer
costs of their employees' pensions, which is currently paid for by the state, over a 12-year period.
the proposal involves the State Universities Retirement System, Glenn
Poshard, president of Southern Illinois University, said it could serve
as an example for a more comprehensive pension reform plan.
Illinois General Assembly did not enact a pension fix before the
spring legislative session ended, and state lawmakers will head back to
Springfield this week for a special session to tackle the issue.
According to a spokeswoman for Senate President John Cullerton, a committee hearing on the state college and university proposal should take place Tuesday.
The plan was originally introduced on May 31 by State Sen. Michael Hastings (D-Orland Hills).