May 21, 2013

IGPA Report Details Retirement Contribution Changes Across US

THE UNIVERSITY of Illinois Institute of Government and Public Affairs (IGPA) has released a report that provides a compilation of data on the changes to current employees' retirement contribution rates and post-retirement cost of living adjustments (COLAs) that have been enacted in the United States since 2009. Click here to read the report: The National Picture of Public Pension Changes: What benefit reductions have otherstates enacted?

“ILLINOIS’ STATE pension system has the lowest funding ratio of any state, with roughly $100 billion in unfunded liabilities,” said James R. Paul, Assistant Director, IGPA. “That means that the State has promised to make these payments to workers when they retire, but does not have the resources set aside to do so. IGPA has conducted many analyses of this situation.” You can read all of IGPA's work on public pensions here.

SINCE 2009, changes have been made to public employee pension systems in about half of all states, but the details vary widely. Post-retirement COLAs have been reduced, adjusted, and tied to inflation and pension funding ratios. Employee contribution rates have been increased in numerous states, but these increases are not always permanent and some states have also mandated larger employer contributions. 

TO SEE which states have made changes, and brief summaries of each change, as well as links to resources, readthe report here (PDF)For more information, call (217) 333-3340.

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