Evaluating Retirement Income Security for Illinois Public School Teachers

Research Report

Evaluating Retirement Income Security for Illinois Public School Teachers

Abstract

The financial problems afflicting Illinoiss teacher pension plan have grabbed headlines. An equally important problem, though underappreciated, is that relatively few teachers benefit much from the plan. Long-serving teachers receive generous pensions, but only 18 percent of teachers remain employed for at least 25 years. Only 24 percent of those who complete at least five years of service receive pensions worth more than the value of their required plan contributions. Alternative plan designs, such as cash balance plans, could distribute benefits more equitably and put more teachers on a path to a financially secure retirement.

Cross-Center Initiative

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