Originally published on Wed June 25, 2014 11:03 am
The Illinois Teachers' Retirement System says it expects a lower return on its pension investments in the next year. That means the state will have to cover more of the cost of teacher pensions.
TRS says it's still a good assumed rate of investment return at 7.5 percent. That falls in line with similar pension systems nationwide. But it's not as profitable as 8-percent, which TRS had been using for the previous few years.
Bushnell-Prairie City School Superintendent David Messersmith will retire a year earlier than he wanted.
Other educators around the region are facing similar decisions.
He reconsidered his plans once Governor Pat Quinn proposed a number of changes to state pensions plans including reducing benefits for retirees. Messersmith hopes to “lock-in” his benefits under the current pension rules. He thinks the state will suffer a “brain drain” as other educators come to the same conclusion.