Illinois Teachers’ Retirement System’s Supplemental Savings Plan Update
Since our previous alert regarding the Teachers’ Retirement System’s Supplemental Savings Plan, we have had productive discussions with many business managers, IASA, IASBO, and TRS about problems with the Plan and the agreement which TRS has presented for approval by all Illinois school boards. To its credit, TRS appears receptive to modification of the Plan and the agreement. Modifications should address such issues as eliminating fiduciary duties of school districts, minimizing administrative tasks at the district level, streamlining reporting, coordinating with existing school district 457(b) plans, and providing hold harmless protection for school districts. Given the prospect for changes and TRS Employer Bulletin FY21-10 softening of the March 31 response date, we believe it would be premature for boards of education to approve, by March 31, the Plan and agreement in the form presented by TRS earlier this month. In about a week, we expect to have a better sense of the process, timing, and prospects for resolution of the concerns and will issue another Alert. In the meantime, please contact Todd Faulkner for additional information.