If you are an education employee hired after Jan. 1, 2011, you are enrolled in Tier Two of either the Teachers’ Retirement System (TRS), the State Universities Retirement System (SURS) or the Illinois Municipal Retirement Fund (IMRF). In a nutshell, this means you have to work until age 67 to retire with your full benefits. Your peers hired prior to this date only have to work until age 55, if they have 35 years of service. There are also drastic differences in the salary your retirement income will be based upon and on the cost-of-living adjustments your pension earns post-retirement. We believe Tier 2 is a major flaw in our pension system, and it is causing many to switch careers or choose not to begin a career in education in the first place. 

As you know, educators in TRS and SURS do not pay into Social Security. Federal law allows government agencies to do this, as long as the benefits those agencies offer are at least equal to what Social Security pays, a law known as the “Safe Harbor” provision. There are real concerns that the current Tier Two system for these educators will violate the Safe Harbor provision this year, which could trigger financial repercussions for the state of Illinois. 

For more information, see below, and watch for opportunities to take action.