IL SR0545

Opposes a proposed educational pension cost shift that would transfer $10.187 billion in pension benefit costs from the State of Illinois to local school districts, community colleges, and state universities over a 10 years.

States that 67% of Illinois school districts are already operating in the red and would face massive property tax increases or classroom cuts if required to pay normal pension costs for Teachers' Retirement System and State Universities Retirement System members.

Notes school districts already contribute 0.58% of pensionable teacher payroll to pension costs, totaling $92.5 million in Fiscal Year 2012, and would bear additional burden from locally-negotiated retirement options.

Warns that shifting costs to universities could increase tuition by 2% for each percentage point of payroll costs transferred, making higher education less affordable for students and parents.

Declares the Senate's position that an educational pension cost shift is financially unsound and would constitute an unfunded mandate on local taxing bodies.