State law helps public workers prepare for retirement

Daily Herald reporter Jake Griffin barks up the wrong tree in his Wednesday article "Why some retired teachers get two pensions." Since 1955, state law has allowed public workers who participate in more than one state retirement system to combine pension service credit to calculate separate pensions from each system.

Vexed by this long-standing practice, Mr. Griffin describes it as a peculiar "quirk" in the Pension Code. Though this may be a revelation to Mr. Griffin, I can assure Daily Herald readers that it is a common practice across the nation, with similar laws in nearby states like Wisconsin, Michigan, and Kentucky.

The purpose of this 60-year-old state law is to allow a measure of portability for the retirement savings of public workers, many of whom are your friends and neighbors.

Just like retirement savings in a 401(k), the law allows workers to carry pension service credit with them when they change jobs and retirement systems.

Here's a real world example of why this law is necessary: It's very common for educators to work a few years as teacher's aides, and participate in the Illinois Municipal Retirement Fund (IMRF), before transitioning into certified teaching roles, and participating in the Illinois Teachers' Retirement System. This law allows those educators to convert their IMRF service credit into modest pensions at the close of their teaching careers.

Without the law, that IMRF pension service credit would essentially be worthless.

We all must make saving for retirement a top priority. Those in the private sector should contribute to a 401(k) and rollover balances when they change jobs. Those in the public sector should continue to save for retirement by contributing toward a future pension.

From a public policy perspective, we should support - not attack - laws that facilitate that process.

Louis W. Kosiba, IMRF Executive Director

Oak Brook