On April 14th, 2010 the Governor signed SB1946. SB1946 represents pension legislation reducing benefit levels for state and university employees hired after 1/1/11. The legislation can be found here: .
The major benefit changes in SB1946 to the State University Retirement Act include:
| SURS system | Current employees | New Hires (1/1/11) |
| Retirement Age | 62 w/5 years; 60/w 8 years; any w/30 years | 67 w/10 years 62 w/10 years (reduced) |
| Formula multiplier | 2.2% | 2.2% |
| Final Average Salary definition | Four year | Eight year |
| Retirement COLA | 3% compounded | 50% of the CPI up to 3% Simple interest after age 67. |
| Maximum Annuity | 80% of final avg. capped ar SS limit ($245,000) | Capped at $106,800 indexed to CPI |
| Employee contribution | 8% of salary | 8% of salary |
| Other | Suspends annuity if member returns to work |
Further Information:
It is also important to remember that in addition to the state’s direct operational support to its public universities, it also provides billions of dollars annually in funding for state employee and retiree pension and health care costs. The growth rates of the state’s pension and health care liabilities represent two of the most significant contributors to the state’s current budget deficit. Below are links to pension and health care information produced by the Commission on Governmental Forecasting and Accountability, the state legislature’s fiscal agency. I hope you will find the information useful.
http://www.ilga.gov/commission/cgfa2006/Upload/FinCondILStateRetirementSysMar2010.pdf
http://www.ilga.gov/commission/cgfa2006/Upload/fy2011stateemployees'groupinsurance.pdf
