Easter asks potential retirees to reconsider
University of Illinois President Bob Easter is urging employees planning to retire this spring to reconsider now that a judge has put the state's new pension law on hold.
Easter sent a mass email to employees Thursday afternoon, saying the UI would consider taking back any employees who have tendered their resignations fearing their benefits would be cut if they stayed on past June 30.
A Sangamon County judge on Wednesday postponed the June 1 implementation of the state's pension overhaul law until courts rule on several lawsuits challenging the constitutionality of the new law.
Among other changes, the law would cut cost-of-living increases on pension payments for current and future UI retirees, raise the retirement age for employees under the age of 46, and cap the amount of earnings that could be applied toward pensions. It also lowered employees' contributions to the pension program from 8 percent to 7 percent, to offset some of those changes.
Lawmakers also added a measure intended to preserve any benefits earned through June 30, 2014.
Easter said Judge John Belz recognized that members of the pension system could suffer "irreparable harm" if the law had taken effect before the courts resolved the constitutionality question.
It's not clear how long that will take but legal analysts expect the case to wind up in the Illinois Supreme Court. A status hearing on the case is scheduled for May 22.
"Depending on how courts rule, provisions of the new law may still be implemented sometime in the future. But, for now, yesterday's ruling preserves the current pension system as we know it, and provides some assurance for employees who were considering retirement before June 30, 2014, to avoid losing benefits they had already earned," Easter said.
"I hope that faculty and staff who were weighing retirement will now decide to stay on and share their talents to benefit the university, our students and our state."
For those who have submitted a resignation but now want to return, "the University will make every effort to consider their request," Easter said.
Here is the text of Easter's letter: