State universities and community colleges reached an agreement with Illinois House Speaker Mike Madigan (D-Chicago) to assume responsibility for the retirement costs of their workers.
Under current law, the state pays the employer’s share of community college and state university employees’ pension costs. Under this agreement, should it become law, the institutions would gradually increase their contribution by one-half of a percentage point per year, starting in Fiscal Year 2015, so that in 22 years they are paying the full employer’s share of 11 percent of wages.
A plan affecting Tier 2 benefits is still being negotiated. Employees are Tier 2 if they were hired in 2011 or after.