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MACOMB, IL – The executive director of the Illinois Teachers Retirement System said the fund is underfunded by $44 billion dollars but will provide benefits for the forseeable future.
Director Dick Ingram said the legislature took notice during the last session and gave precedence to payments to pensions.
Ingram said, "We became a priority and I think as long as that continues and the statutory plan that's in effect now is followed we will, in fact, be strong for the long term."
Ingram said the fund's total liability is $81 billion. He said the legislature's plan would put the fund at 90% of full funding by 2045.
Ingram also said while investment returns can vary last year the fund's return was about 24%.
Ingram added a senate bill would offer a third option for teachers to invest their retirement funds. State senate bill 512 would create a third tier for a defined-contribution plan that would resemble of 401-(K) plan. The benefits would depend on the amount invested and the return on investment.
He said the bill would also change the contributions for current teachers. Those in Tier I would see their contributions increase from 9.4% to 13.77% of their pay. Those in Tier II would see their contributions drop from 9.4% to 6% of their pay.
Ingram held an informational meeting for teachers in Macomb.