Ill. Teacher’s Retirement System Director Calls Fund Sustainable
The executive director of the Illinois Teachers Retirement System says the fund is underfunded by $44 billion, but it will provide benefits for the foreseeable future.
Director Dick Ingram said the legislature took notice during the last session and gave precedence to payments to pensions.
"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.
Ingram said the fund's total liability is $81 billion. He said the legislature's plan would put the fund at 90 percent of full funding by 2045.
Ingram also noted that while investment returns can vary last year the fund's return was about 24 percent.
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 percent to 6 percent of their pay.
Ingram held an informational meeting for teachers in Macomb.