This two and a half minute video explains the differences between defined benefit pensions and defined contribution savings plans.

Active IEA members who participate in TRS or SURS are being told by Governor Bruce Rauner and others that the state’s defined benefit (DB) pension systems should be replaced by defined contribution (DC) savings plans. A 401(k) plan is one example of a defined contribution plan.

The video illustrates why Gov. Rauner’s claim, that active members can be moved into a defined contribution plan while retaining all benefits they’ve earned to date, is unworkable, undesirable and, most importantly, unconstitutional.