Springfield,
IL – The Teachers’ Retirement System Board of Trustees today issued the following
statement regarding the on-going debate in the General Assembly concerning an
overhaul of the state’s pension code:
“The Board of Trustees of
the Teachers’ Retirement System reiterates and reaffirms its resolution of
March 30, 2012 (as amended on April 30, 2012) declaring that present
legislative action is paramount to ensure the continued solvency and viability
of the plan, by providing for fairness and equity in benefits, adequate funding
and adherence to generally accepted actuarial principles and standards.
Additionally, the Board of Trustees underscores its unalterable position that
any changes to the Pension Code must adhere to the Pension Protection Clause,
Article 13, Section 5, of the Illinois Constitution of 1970.”
This
statement was approved by the trustees on October 26 during a
regularly-scheduled meeting. The Board’s March 30 resolution, which was
approved unanimously, reads as follows:
Having heard the report of the Executive Director
describing the analysis performed by TRS staff and actuaries evaluating the
State of Illinois’ ability to meet its existing future funding obligations, the
Board of Trustees hereby resolves that:
The fiscal situation of the State has deteriorated
to the point that the Board no longer has confidence that the State will be
able to meet its existing funding obligations to TRS. As a result, the Board
believes that action must be taken now to ensure the continued solvency and
viability of the plan. This action must be based on the following principles:
1. The impact of any proposal, and all future
contributions to the plan, must be determined using generally accepted actuarial
principles and standards and not the funding scheme and pension bond limits currently
in Illinois law.
2. All future contributions must be guaranteed by
statutory language substantially similar to that presented to the Governor’s
pension assembly in February.
3. Any changes to the Pension Code must first
correct the existing inequities and funding flaws created with the enactment of
Tier II and,
4. Any changes to the Pension Code must be based on
the simplest and most straightforward changes possible.
5. Any changes to the Pension code must adhere to
the Pension Protection Clause, Article 13, Section 5, of the Illinois
Constitution of 1970.
Further, the Board resolves that it will only
certify future contributions that are calculated based on generally accepted
actuarial principles and standards. The Board further resolves to continue to
commit the time and expertise of its staff and actuaries as necessary to ensure
the accurate analysis of any and all proposals for changes to the Pension Code.
About
Teachers’ Retirement System:
The
Teachers’ Retirement System of the State of Illinois is the 39th largest
pension system in the United States, and provides retirement, disability and
survivor benefits to teachers, administrators and other public school personnel
employed outside of Chicago. The System serves 366,000 members and had assets
of $37.5 billion as of September 30, 2012.
Contact: Dave Urbanek
October
29, 2012 Public Information Officer
Office:
217-753-0968
durbanek@trs.illinois.gov
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