Jacksonville State Representative C.D. Davidsmeyer is weighing in on a new report focusing on teacher retirement contributions.
According to the Commission on Government Forecasting And Accountability, the recommended percentage of salary both schools and teachers need to contribute for teachers taking early retirement has decreased
An Actuarial Review of Early Retirement Option for Teachers’ Retirement System from COGFA recommends contributions from members seeking to retire early be lowered from 14.4 percent to 10.8 percent and the employer contribution from 29.3 percent to 22 percent.
Davidsmeyer says the recommendations are an effort to counteract early retirement.
“The goal here is to make sure that it offsets the cost of the person who is deciding to retire early,” he says.
Davidsmeyer says the state could go with the proposed rates or not have the retirement option altogether.
“That’s something that needs to be discussed with school districts and the state and teachers, to make sure what the benefits are the programs are, and negatives and positives,” says Davidsmeyer.
The most recent Auditor General report for the Teachers’ Retirement System has the fund at 41.5 percent funded for fiscal year 2015, down 1.5 percent from the year before. The actuary suggested the member contribution be lowered from 14.4 percent to 10.8 percent and the employer contribution from 29.3 percent to 22 percent.
Story from the Illinois News Network.