Glitch is state pension system could force thousands into early retirement

By WEEK Producer

April 18, 2014 Updated Apr 18, 2014 at 7:54 PM CDT

URBANA, Ill. -- A glitch in the state's new pension law, could have thousands of Illinois teachers opting for early retirement.

Officials at the University of Illinois say, if not corrected, the unintended flaw would reduce teachers' monthly retirement, by changing the interest rate used to calculate yearly pension benefits.

For example, an employee who would have received $2,540 a month would now receive just $1,640 a month.

At U of I alone the change would force up to 10-percent of the university's workforce into retirement.

Public universities hope to work with lawmakers to fix the issue and avoid the wave of retirements and its potential effect on the quality of academic programs across Illinois.

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