Teacher pension bumps behind Social Security

In the early 1970s, the General Assembly passed legislation that provided for a benefit increase of 3 percent per year for retired teachers. The annual benefit increase was considerably below the rate of inflation and less than one third of the benefit increases granted to Social Security recipients.

In 1972, Social Security recipients received a benefit increase of 20 percent, which is almost seven times the 3 percent benefit increase for retired teachers. From 1974-81, Social Security retirement benefits increased 73.2 percent or 9.15 percent per year. In 1980, Social Security recipients received a benefit increase of 14.3 percent versus 3 percent for retired teachers.

When the 3-percent annual benefit increase for retired teachers was initiated, legislation was enacted to protect the actuarial integrity of the Teacher Retirement System. Teachers then employed and those employed in the future would each pay an additional one half of one percent of his/her annual salary to the Teacher Retirement System.

During its next session, the members of the Illinois General Assembly will discuss the 3-percent annual benefit increases that retired teachers receive. Retired teachers prepaid for this benefit. The merit of retaining this benefit is clearly demonstrated by the historical data discussed above.

Dan Brown

Geneva