A change in the estimated rate of return for the Teachers’ Retirement System could leave Illinois taxpayers on the hook for an additional $300 million, according to one estimate.
Last week, TRS revised its estimate, predicting now that its investments will yield a return of eight percent, instead of the previous prediction of eight-and-a-half percent. Under state law, a lower rate of return forces the state to make up the difference.
State School News Service says that could mean an additional $300 million obligation… and will likely increase pressure on lawmakers to approve pension reform during the lame duck session in January.
