Illinois crafted the solution to its pension crisis nearly 20 years ago. That’s when lawmakers passed an inspired retirement plan that gave state university workers an alternative to the traditional pension plan, one that offered more flexibility, portability and individual control.
The problem is many lawmakers don’t even know that plan exists.
More than 20,000 university workers have opted into this alternative 401(k)-style plan since its creation.
Those who have joined avoided the trap of an Illinois pension system that offers its members no control, no voice and no exit. Meanwhile, their peers in the State Universities Retirement System, or SURS, pension plan are participating in a pension fund that has only $0.41 of every dollar needed today to pay out benefits to retirees.
With pensions in such a mess, it begs the question: Why aren’t all Illinois workers – not just university workers – given the same choice regarding their retirements?
