Administrators say as many as 4,000 employees in the U of I system could lose hundreds of dollars a month in retirement benefits if they don’t retire by July 1st. Easter says the problem stems from an error in the pension law involving a benefit option called the ‘money purchase formula’, and he’s working with legislative leaders to develop a fix.
“I’m optimistic that something will get done… but it needs to get done – sooner rather than later is the challenge.”
State Senator Daniel Biss was involved in drafting the legislation, and says the change would be simple. But some lawmakers may be uneasy about reopening the pension legislation. U of I Trustees will also vote next month on a supplemental employee retirement plan to make up for a loss in pension funds.