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Pension Fears Prompt Surge of Retirements at Ill. Universities

(Cont...)

The newspaper said what makes the losses on both campuses particularly tough is the fact that the schools are in the midst of a three-year hiring freeze as they cope with state cuts in higher education spending. That means most of the early losses will have to be absorbed on campus.  

The University of Illinois at Urbana-Champaign also has seen a spike in retirements, losing 464 employees. Typically, the school loses around 220 a year. For now, it is coping with the loss of veteran professors by hiring part-time adjuncts and retirees, but that is only a stopgap measure while the school completes the hiring of new full-time faculty members, spokeswoman Robin Kaler told the St. Louis Post-Dispatch.  

So far, there’s been nothing close to an agreement on how to close the $85 billion gap between the state retirement system’s assets and obligations—which has helped Illinois earn one of the lowest credit ratings in the nation. Lawmakers do not yet have a plan to fix it and are not expecting to take up the issue until after the November election.

Rebecca Moore
editors@plansponsor.com

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