Print Friendly, PDF & Email

“Over half of new Illinois teachers won’t qualify for any pension at all. They will leave before the 10-year service requirement to qualify for any pension. New teachers are given a bare-bones retirement plan. In fact, on average new teachers will pay more into the system than they’ll ever get back in return. As a group, they’re paying a tax for the privilege of receiving negative retirement benefits.”

Comment: “Tier 2” members — those hired after 2010 — are SOL, as we have documented repeatedly here. They are forced to pay more than their own normal cost to subsidize the lavish benefits of Tier 1. That’s why Tier 1 fat cats go ballistic when you point this out, as happened with our earlier article linked here.

Read Article

newest oldest most voted
Notify of

The truly maddening part is that Tier 2 is eventually going to fail Social Security’s safe harbor test, requiring an increase in benefits (call it Tier 1.6) anyway. All Tier 2 is accomplishing now is deterring folks from a career in teaching and allowing charlatans such as Ralph Martire to peddle pension reamortization plans using Tier 2 savings that will never materialize.