As the Illinois Teachers Retirement System (TRS) recently voted to lower their expected rate of return on investments concerning their pension fund, District 110 Rep. Reggie Phillips is calling for a total shift to a 401(k) program to help ease the state’s crisis.
At its meeting last month, the TRS voted to lower their rate of return to seven percent based on data that shows the retirement funds will not continue to do as well as they have in the past several years. According to a recent Chicago Tribune article, the vote is estimated to cost the state an additional $400 to $500 million a year.
“Pension reform must be tackled in the state of Illinois,” Phillips recently told the East Central Reporter. “For far too long, the pension obligation from the state has not been met and the promises of high rate of returns are simply not possible in our economy.”
In recent town halls across his district, Phillips has been addressing the state’s pension issue with voters, saying he believes it is the biggest issue currently facing Illinois. Phillips has said at the town halls that the key to fixing the pension crisis is to change the state’s constitution and allow lawmakers to make adjustments.
“Without changing the pension obligation, we are just spinning our wheels,” Phillips told a crowd of attendees at a recent town hall in Robinson. “We must stop the drastic amount of debt being placed on the future of Illinois and come to a responsible solution for all."
Phillips continues his call for a move to a 401(k) system as a step towards solving the state’s debt and pension issue.
“I have and will continue to push for a complete shift to a 401(k) system. This is a fair and viable model of retirement savings for future retirees,” Phillips said.
Alerts Sign-up