(Springfield, IL) When Governor J.B. Pritzker signed a new budget into law, he also returned a policy likely to continue Illinois’ massive pension shortfall. The item repeals a law signed in early 2019 that curbs a practice known as pension spiking.
Pension spiking is when those that fall under the Illinois Teachers’ Retirement System, get a boost in pay at the end of their careers, to in turn, get a boost in their pensions. Then Governor Bruce Rauner had signed a law capping the spiking at 3%, but Pritzker’s repeal of that plan pushes the cap back to 6%.
Estimates have the Teacher’s Retirement System underfunded by about 75-billion-dollars.