Sunday, April 27, 2014

UIC President Addresses Pension Law Error

“I write today out of concern over an unintended glitch in the wording of the state’s public pension funding law that would significantly reduce pension benefits under the “money purchase” option if retirement-eligible employees continue working beyond June 30, 2014.

The wording was actually meant to preserve (or “hold harmless”) employee benefits when the new pension law lowers the interest rate used to calculate monthly annuities under “money purchase,” effective July 1, 2014. It sought to lock in annuities for retirement-eligible employees to the level they would receive on June 30, 2014, even if they retired months or years later. “ READ MORE

Title: “Pension update re money purchase”
Author: Robert A. Easter
Source: Office of the University President
Date Published: April 24 2014

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