There is an independent actuary letter showing that the improvements to the Tier 2 Downstate fire and police benefits did solve the Social Security compliance issue. Now that Chicago is at the same level, they are in compliance also but may well have also passed the test without the recent improvement. I do think there is a problem for the statewide teachers TRS fund as far as Social Security compliance is concerned. The maximum pensionable salary is now well below the Social Security Wage Base and that will move them out of compliance in a generation. DAN
It's moot digging up the report(s) [if they ever existed] on any of the Police/Fire systems Tier 2 failing Social Security compliance at this point, as the "reforms" can't be undone right now, until the Illinois State Constitution gets amended/redone.
That said, I would like to see whatever reports about the Teachers Tier 2 benefits not being compliant. As in, actual projections/numbers run. I don't mean somebody putting words out there (I've already seen those), but explaining which specific groups of teachers would be the ones failing the test....
... because I'm going to guess it would have to be a fairly low-income, low-service, etc. combination of factors to fail.
Even so, there are cheaper fixes, as many have pointed out. Just have a fund to boost for those who need a top-up at retirement to get to the proper level.
And heck, with the Social Security Trust Fund running out in less than a decade........
There is an independent actuary letter showing that the improvements to the Tier 2 Downstate fire and police benefits did solve the Social Security compliance issue. Now that Chicago is at the same level, they are in compliance also but may well have also passed the test without the recent improvement. I do think there is a problem for the statewide teachers TRS fund as far as Social Security compliance is concerned. The maximum pensionable salary is now well below the Social Security Wage Base and that will move them out of compliance in a generation. DAN
It's moot digging up the report(s) [if they ever existed] on any of the Police/Fire systems Tier 2 failing Social Security compliance at this point, as the "reforms" can't be undone right now, until the Illinois State Constitution gets amended/redone.
That said, I would like to see whatever reports about the Teachers Tier 2 benefits not being compliant. As in, actual projections/numbers run. I don't mean somebody putting words out there (I've already seen those), but explaining which specific groups of teachers would be the ones failing the test....
... because I'm going to guess it would have to be a fairly low-income, low-service, etc. combination of factors to fail.
Even so, there are cheaper fixes, as many have pointed out. Just have a fund to boost for those who need a top-up at retirement to get to the proper level.
And heck, with the Social Security Trust Fund running out in less than a decade........