SURS Director: State Pension Contribution Bill Needs Monitoring
State employees are starting to find out just how a proposed pension reform bill in Springfield would affect them.
People who are covered under the state's traditional pension plan would pay more into their pensions under the Republican-sponsored bill to start cutting into the deep state pension fund deficit. The State Universities Retirement System (SURS) is one of four systems facing scrutiny after years of state underpayments into their coffers.
Speaking on WILL's Focus program Tuesday morning, SURS director William Mabe said state pension benefits are not overly generous to begin with, especially since SURS members don't receive Social Security for their time working in state government.
He said the bill would let people choose a self-managed retirement plan that would let them avoid the increase.
"If they were to remain in the current plan, their contributions would increase, and they could increase significantly depending on how many people move out of the current plan into the new plan," Mabe said. "It's a very complex piece of legislation that's requiring a lot of analysis. We're having our actuaries look at it and our legal counselors heavily involved in reviewing it."
Mabe said SURS currently has pension liabilities of $30 billion but only $14 billion in assets. There are exceptions to the increased contributions for police and firefighters as well as judges - who may eventually have to rule on whether the bigger bite on employees' paychecks is constitutional.