Tier 3 Planning Underway

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Springfield, IL - Teachers’ Retirement System has begun the complicated process of creating a new Tier 3 “hybrid” benefit structure for future members, in compliance with a new state law enacted in July by the General Assembly.

Based on preliminary planning conducted over the last few months, TRS anticipates that the earliest date that Tier 3 may be implemented for members is July 1, 2019. The TRS Board will establish the final implementation date of the Tier 3 plan.

TRS Follows New Law and Lowers the State's FY2018 Contribution by $531 Million

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SPRINGFIELD, IL – The Teachers’ Retirement System Board of Trustees this week reduced the State of Illinois’ annual funding contribution to the System for fiscal year 2018 by $530.8 million; reluctantly adhering to a new law that changes the statutory pension funding formula.

The revised state contribution for TRS is now $4.034 billion. The previous FY 2018 contribution, certified by the TRS Board last October, was $4.564 billion.

Mark Bailey and Frederic Peronto Elected to TRS Board

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SPRINGFIELD, IL – Mark A. Bailey of Palos Park and Frederic S. Peronto of Elmhurst have been elected by active members of Teachers’ Retirement System to the retirement fund’s Board of Trustees, according to preliminary results of the 2017 Trustee election announced today.

If certified by the TRS Board of Trustees this spring, Mr. Peronto and Trustee Bailey will begin their four-year terms on July 15. This is Trustee Bailey’s second election to the TRS Board. He was first elected in 2013. Mr. Peronto has never before served as a TRS trustee.

Creation of Tier 3

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SPRINGFIELD, IL - In early July the General Assembly approved a new law that significantly changed the Illinois Pension Code by creating a voluntary “Tier 3” benefit structure. The law also alters the way the state funds TRS.
 

The pension code changes are designed to be cost-saving measures for state government and were enacted as part of a $36.1 billion state government budget for fiscal year 2018.
 

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