The pension fund in the Illinois' Teachers' Retirement System is running out of money according to the head of the organization, and a Northern Illinois Republican lawmaker says she has a plan that could go a long way toward fixing it. Part of the plan is to get rid of the state's defined benefit plan and moves to a 401(k) retirement plan.
The funding shortfall may not impact retired teachers, but State Representative Jeanne Ives (R-Wheaton) says those in the classroom now should be paying attention.
Illinois' teacher pension fund is worth 40 billion dollars, but is 55 billion in debt. Without reform, the teacher's retirement fund could be bankrupt in the next few decades. Lawmakers may consider a pension reform plan this week in the last three days of the Fall Veto Session.