Ill. teacher pension system lowering expectations

Published: Sunday, Sept. 23, 2012 5:30 a.m.CDT

SPRINGFIELD – The pension system for thousands of Illinois teachers is officially lowering the forecast of how much money it will make on investments.

Instead of assuming an 8.5 percent rate of return, the Teachers' Retirement System will now base its plans and projections on 8 percent growth.

The prediction of less money in the future means the retirement system faces a bigger funding problem. The latest estimate is that TRS has only 42.4 percent of the money it needs for pensions in the decades ahead.

The retirement system's executive director says assuming a lower rate of return is the prudent thing for long-term planning.

The change also means the state's annual contribution to the pension fund will increase slightly next year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Watch Now

Player embeded on all DDC instances for analytics purposes.

Sycamore Defeats DeKalb at NIU - April 17, 2014

More videos

Reader Poll

What's your favorite Easter tradition?
Church services
Family dinner
Easter egg hunt
Easter bunny
Decorating eggs