Changes in the Illinois state retirement system...the 3% STAYS with the current retirees

From John Curry, June 10, 2010

Even in a retirement sytem, that is in the worst shape of all state retirement sytems, the current retirees KEEP their (COMPOUNDED) COLAS. STRS....take note!!!!!!!!!!

http://www.pioneerlocal.com/evanston/news/2364544,pioneer-press-pensionsnewlaw-061010-s1.article
Benefits for new hires changed

evanston/news, June 10, 2010

Educators hired after Jan. 1 won't get as sweet a deal when they retire, which of course may not be for decades.

Threatened with a sharp downturn in the state's bond rating, Illinois lawmakers in late March swiftly scaled back benefits for newly-hired employees and took steps to rein in runaway retirement benefits for highly-paid employees.

The measure raises the retirement age for full benefits to 67 while allowing retirement at 62 with discounted benefits.

A cap will be placed on the salary used both to calculate employee contributions and benefits. The cap will be synchronized to a Social Security figure, currently $106,800 a year.

Once retired, those new hires won't get the annual 3 percent pay raises -- compounded -- that effectively double the pensioners' checks over 24 years.

In retirement, pay raises will be one-half of the Consumer Price Index or 3 percent, whichever is less. The percentage raises won't compound annually. Each annual increase will be figured using the pensioner's starting pension.

-- Staff Writer Karen Berkowitz