A pension reform plan with significant implications for existing and retired state and university employees passed the House Personnel & Pensions Committee late this morning on a 6-3 vote.
It now moves to the full House for consideration, possibly later today.
Briefly, SB 1673, House Amendment #3, shifts normal costs to universities, community colleges and school districts, reduces cost-of-living-adjustments in retirement and offers employees a choice between accepting the lesser, Tier II cost-of-living-adjustment (COLA) with access to the state’s retiree health care plan or maintaining the current COLA with a freeze on pay raises counting toward future pension benefits and no access to the state’s retiree health care plan.
At this point, the legislation does not include an increase in the retirement age to 67 or an increase in employee contributions to the retirement systems. A complete analysis of SB 1673, prepared by the State Universities Annuitants Association, was completed early this morning.
As this critical phase of pension discussions unfolds, updates will be posted to NIU’s State Pension & Budget Update website in addition to NIU Today.