Public Pension Reform
(Senate Bill 1673, Sen. Kwame Raoul, D-Chicago; House Republican Leader Tom Cross, R-Oswego)
This legislation overhauls the benefit structure and funding mechanism for TRS pensions. Preliminary estimates indicate that for TRS alone, the proposal would save the state budget $54.1 billion to $57.7 billion over the next several decades and erase the unfunded liability of TRS and the other state pension systems by 2043.

Senate Bill 1673 applies to both active members and retired members already receiving an annuity.
Here is a menu of proposals lawmakers are considering for the bill that would affect active TRS members:
Active and Retired Members – This proposal would apply the legislation’s provisions to both active members and retired members who are receiving an annuity.
A Benefit Choice for the Future: COLA and Health Insurance – This proposal calls on all active, inactive and retired TRS members to choose between two options in the make-up of their retirement benefits after July 1, 2013. This irrevocable, one-time election would have to be made between January 1, 2013 and May 31, 2013. This proposal would save state government an estimated $33.4 billion to $37 billion over 30 years. * Option 1: Accept a change in the annual Cost Of Living Adjustment (COLA) for a TRS pension – from 3 percent compounded to a COLA that is capped at 3 percent or one-half of the consumer price index, whichever is less. The COLA would not be compounded. The TRS member retains “access” to state-supported health insurance through the Teachers’ Retirement Insurance Program. For active members, all future salary increases will be used to calculate the member’s future pension. * Option 2: Reject the change in the COLA and it remains at 3 percent compounded annually. The TRS member loses “access” to state-supported health insurance through the Teachers’