University, College Presidents Urge Pension Law Fix

Apr 29, 2014

SIU's President is joining with other university leaders all over Illinois to ask lawmakers to fix a problem in the new pension reform law.

Glenn Poshard says legislators made a mistake in some dates when they drafted last year's law, and he wants them to change it.

Poshard says it all applies to employees who've chosen the "money purchase" option in their pension plan, and it sets a deadline of this summer for those eligible employees to retire - or face dramatic cuts in their benefits.
"Now, that's a simple change, and the legislature really ought to pick up on that and change that - to be fair about everything.  They've got until the end of May - supposedly, when they adjourn - to do it, but I think it will get done."
Poshard says he hopes lawmakers will understand the effect this issue could have on schools all across Illinois. He says SIU could lose hundreds of employees to retirement, and it could be thousands for colleges and universities statewide.

The pension law is currently making its way through the state's courts, as several groups have filed suit - calling the legislation unconstitutional.