April 30, 2014

The University of Illinois is working to convince legislators to correct an unintended glitch in the new public pension funding law that could reduce benefits for some employees if they don’t opt to retire before June 30.

University officials, employees, and the Alumni Association’s Illinois Connection advocacy group are urging lawmakers to act swiftly to correct the error in the effective date for a change in the “money purchase” benefit calculation because there could be an exodus of employees potentially affected by the change.

University trustees heard from faculty and senior administrators on the unintended consequences—disruption of academic continuity, loss of research grants, costs associated with mass retirements and replacement hiring—at a special meeting on April 18. A video excerpt of remarks made during the meeting and a selection of recent news articles about the problem are included at the web page below.