The University of Illinois board of trustees, Urbana, passed a resolution to explore alternative retirement programs in response to the state's new pension reform law passed in December, according to a webcast of the Thursday meeting.
The board is concerned a reduction in the benefit package as a result of the new law could have an impact on the university's ability to provide a competitive compensation package, according to a memo on the resolution.
The new law reduces cost-of-living adjustments, increases the retirement age and places a cap on pensionable salary. Many university employees participate in the $16 billion Illinois State Universities Retirement System, Champaign.
The university resolution directs the president and administration to “assess the impact of the recent pension plan amendments and recommend to the board programs or options to address deficiencies which may cause these competitive concerns. This review should include a study of retirement benefit plans and programs offered at similar institutions and may include external consultant assistance and input from constituencies on the campuses.”
The new pension law goes into effect on June 1.