Experts propose plan to reform university pensions


Share
Posted Online: Dec. 10, 2012, 5:26 pm
Comment on this story | Print this story | Email this story

URBANA, Ill. (AP) A group of University of Illinois professors have a plan to reform the retirement system for university employees.

In a proposal issued Monday by the Institute of Government and Public Affairs, the professors recommend letting workers trade a portion of their guaranteed benefits for a lump-sum payment. That payment would go into a self-managed retirement account.

Professor Jeffrey Brown says many employees would choose the lump sum to diversify their retirement funds.

The report says offering the lump sum payments would help cut Illinois' $96 billion unfunded pension liability.

It also recommends ending the tax exemption on retirement income, and warns that shifting the full cost of pensions to universities could lead to tuition increases.

Lawmakers have said they want to pass pension reform by Jan. 9.














 



Local events heading








  Today is Friday, Aug. 22, the 234th day of 2014. There are 131 days left in the year.
1864 -- 150 years ago: The ferry boat, Rock Island, having been put in good order at the boat yard is now making her regular trips, much to the gratification of those who have to cross the river.
1889 -- 125 years ago: W.J. Gamble, for many years superintendent of the Moline & Rock Island railway, leased the Fourth Avenue Hotel and renovated and refurnished it throughout.
1914 -- 100 years ago: Pending the building of new public schools or additions to the present ones to provide adequate room for all the children, the board of education decided that pupils younger than 6 years old would not be accepted in Rock Island schools.
1939 -- 75 years ago: The fifth annual New Windsor Fair and Horse show, which has been delayed for two days because of unfavorable weather, got off to a new start last night. The parade was held this morning.
1964 -- 50 years ago: The Rock Island County Fair and Rodeo will celebrate its silver anniversary this year. The fair opens Tuesday and will run through Saturday and offers entertainment and activity for young and old.
1989 -- 25 years ago: Earl Hanson School, Rock Island, joins the Program to Assist Latch Key Student, which aids working parents. PALS is a before and after school program for grades 1-6 in certain Rock Island public and private schools.




(More History)