I read the message from the Illinois Teacher Retirement System that the board has picked a company to administer a new program, ordered by the legislature, that allows current teachers to contribute to a defined contribution retirement plan.
I don’t get it.
Most school districts in the state already work with teachers to do this. And anybody can open a retirement savings account.
This appears to be nothing more than that.
Meanwhile the legislature continues to short the pension systems and the liability continues to grow.
It’s now at $137,000,000,000.
I talked to a retired teacher today who had heard from friends (don’t listen to friends about retirement money) that Illinois was broke and she should take up the the offer to take out her money as a lump sum instead of continuing to receive monthly payments with yearly 3% compounded increases.
I don’t give financial advice either.
I mean everybody’s situation is unique in some ways. But unless you’re in debt to the mob or have weeks to live, I would pass on the lump sum idea.
And I’m not promoting the company selected by TRS.
It reminds me of the days when I was a local union president and I would get calls from district approved annuity companies to set up meetings for teachers in the building for them to meet and sell their product.