UI plans pension meetings; financial picture bleak
URBANA -- Faced with a gloomy state outlook, the University of Illinois will hold pension informational meetings next week.
"The State Universities Retirement System funding level has dropped to a dangerously low assets-to-long-term-liability ratio of 40 percent as of June 30, 2010, and SURS is paying out substantially more in benefits than it takes in contributions," President Michael Hogan reported in a mass email Thursday.
At noon April 11, a pension forum will be held at the Alice Campbell Alumni Center Ballroom, 601 S. Lincoln Ave., U.
Other forums will be held in Chicago and Springfield.
A website on the issue is at http://bit.ly/ee0tKX
Hogan warned that a $470 million state reimbursement backlog is not the only financial hurdle for the university.
"Based on comments at both the Senate and House higher education appropriations hearings (last week), we have been forewarned to prepare for a significant reduction in our fiscal 2012 appropriation," Hogan warned.
Specifically, he said, "Two months are remaining in the state's legislative session and we must realistically prepare for a reduction in the university's fiscal 2012 appropriation," despite Gov. Pat Quinn's recommendation of flat budgeting.
When I was hired at the University many years ago I was told that I had to pick between the "traditional" plan and the "self-managed" plan.
I was told that was an irrevocable decision.
If the state is going to stop funding my "pension" properly, then offer ALL of us that are in the SURS program a ONE-TIME "opt out" where I get ALL my money back but only if I put every penny of it in a self-managed plan and agree to sign up for that instead.
I wouldn't give that more than a few seconds of thought. Sure wish I would have decided differently all those years ago.
The situation at the University is getting worse by the day.
I took the SMP and every time the bad news flows from the state and the UI, I am grateful I did! By law the UI/state must pay their share to my fund each month. The money is then mine to invest as I want. It's in my account and can't be taken away. I'm disgusted by the state and their financial mismanagement!
@Mike: It would be nice if we would get our money back, but as is happening in many states and has been happening at many companies over the last decade, the state may simply modify the conditions of the defined benefit plan without any consideration of how much you paid in or what payout you were promised. They may also increase our required contribution while decreasing their contribution, or increase the retirement age. Unless the politicians decide to use the general fund to pay back into the system which they have been in effect borrowing from, there is no way the system will be sustainable, particularly for workers far from retirement. Taxpayers will cheer, and the rich who have had their taxes cut will smile all the way to the bank.
When I got my job at the University I sort of chuckled that I didn't pay into social security anymore because, well, social security is going to be bankrupt soon. I didn't realize that SURS was going to be as well.
And fantastic that the stupid SEIU union is pressuring lawmakers and SUCSS to turn my academic professional job into a civil service one.
Ready to just leave this stupid state altogether. What an ugly situation.
If you were upgraded to an AP position just because you now hold a degree though your actual job hasn't changed then yes, you should be returned to a civil service position. Times being what they are you should be thankful....APs can be kicked to the street while Civil Service positions are much more difficult to eliminate. Your pay doesn't change, just your vacation accrual.
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