Comment: As one of our commenters pointed out, these numbers are not accurate for Illinois because they do not account for “pick-ups” — local subsidies most teachers get to cover their portion of pension contributions. Thanks for being on the ball, Mike.

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Mike
3 years ago

It is not true that in Illinois, 80% of new teachers will never break even on the pension contributions.
In the majority of school districts in Illinois, teachers contribute little to nothing to their pension plan.
There are many nuances of Illinois Teacher pensions including pension pickups by the employer on behalf of the employee in a practice known as “Board Paid TRS” involving either “Salary Schedule Add-On” or “Salary Schedule Reduction” method.
The break even point of recouping employee contributions varies greatly from district to district.

Mike
3 years ago
Reply to  Mark Glennon

Another aspect of TRS and other Illinois pensions is, as TRS points out in some of its documents, assets are not legally restricted for the payment of Tier I or Tier II benefits. When enacting Tier II, legislators could have stated Tier 1 assets are for Tier 1 payments, and Tier 2 assets are for Tier II payments. They can still do so although maybe Tier I could sue successfully sue, stating that has the potential to diminish or impair their pensions. The point being, why should Tier II contribute the same as Tier I, yet receive lower benefits, and… Read more »