There’s no question that there is a real problem facing our Teacher Retirement System, or TRS. But if there is crisis looming it is because the state has not fulfilled their responsibility to fund it. Local boards of education have paid their share. Teachers have paid our share. I pay 9.5% every paycheck into TRS.

For the past two years the state has taken a “holiday” from making their contribution. But now, rather than having the state pay their bill, some want to change the system to a 401(k)-style retirement system. This would turn it from a defined benifit system into a defined contribution system. This would cost the state more and reduce benefits.

You would think those that are proposing this would be spending time thinking about a fair progressive revenue stream for funding our schools. But no.

According to the Illinois Retirement Security Initiative, working under the auspices of the Center for Tax and Budget Accountability, state lawmakers should instead focus on how to pay off the $40 billion debt run up by the five state-funded pension systems.

The Springfield Journal-Register reported:

“It was not our current (benefit) system that created Illinois’ unfunded pension liability, it was the state’s failure to fund the system,” said Jourlande Gabriel, author of the study. “Switching to a defined contribution system will not erase the debt. It will simply cost the state more money while depriving retirees of adequate benefits.”

The study warned that those with 401(k) style plans did significantly worse than those who are currently receiving defined benefits from TRS.