Experts propose plan to reform university pensions


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Posted Online: Dec. 10, 2012, 5:26 pm
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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.














 




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  Today is Tuesday, Sept 2, the 245th day of 2014. There are 120 days left in the year.

1864 — 150 years ago: It is estimated that 300,000 people attended the recent Democratic convention in Chicago when Gen. George B. McClellan of New Jersey was nominated as a candidate for president of the United States.
1889 — 125 years ago: Alderman Frank Ill, Winslow Howard and Captain J.M. Montgomery returned from Milwaukee, where they attended the national Grand Army of the Republic encampment.
1914 — 100 years ago: Three members of the Rock Island YMCA accepted positions as physical directors of other associations. Albert Cook went to Kewanee, C.D. Curtis to Canton and Willis Woods to Leavenworth, Kan.
1939 — 75 years ago: Former President Herbert Hoover appealed for national support of President F.D. Roosevelt and Congress in every effort to keep the United States out of war.
1964 — 50 years ago: The Rock Island Junior chamber pf Commerce has received answers to about 65 % of the 600 questionnaires mailed out recently in a "Community Attitude Survey" to analyze sentiments of citizens towards their city's various recreational, educational, and civic service programs.
1989 — 25 years ago: The two thunderstorms passing through the Quad Cities last night and early today left some area residents reaching for their flashlights.






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