Dive Brief:
- An advocacy group for Illinois state university retirees has filed a court motion to temporarily block a pension overhaul law that could force employees of the state schools to retire prematurely.
- A glitch in the new law would force employees of state universities and colleges to retire before July to avoid large cuts in their future pensions. State legislators are considering measures to correct the problem.
- But even beyond the glitch, the State University Annuitants Association says the law has several problems, and should be put on hold until courts rule whether it is constitutional.
Dive Insight:
Time is running short for state school employees who have to decide whether to take an early retirement, and even if the motion to stay the pension law is granted, they may have to retire anyway to avoid the risk of the law being upheld. The pension overhaul law was passed in December to address a $100-billion shortfall in retirement benefits, and several lawsuits against the law have been filed, claiming it is unconstitutional. According to the State University Retirement System, 17,000 college and university workers are eligible for retirement, and it has been flooded with members seeking counseling about the law.
