Experts propose plan to reform university pensions
URBANA, Ill. (AP) -- A group of University of Illinois professors have a plan to
reform the retirement system for university employees.
In a proposal issued Monday by the Institute of Government
and Public Affairs, the professors recommend letting workers trade a portion of
their guaranteed benefits for a lump-sum payment. That payment would go into a
self-managed retirement account.
Professor Jeffrey Brown says many employees would choose the lump sum to
diversify their retirement funds.
The report says offering the lump sum payments would help cut Illinois' $96 billion
unfunded pension liability.
It also recommends ending the tax exemption on retirement income, and
warns that shifting the full cost of pensions to universities could lead to
Lawmakers have said they want to pass pension reform by Jan. 9.