Taking a job in Illinois public sector--bad idea? (how much, employment)

[seraphita]

My husband is considering a job as a university professor at an Illinois public university. Should we be concerned about the pension crisis, or do you think the current legislature will resolve it in a satisfactory manner?

[pvande55]

Except if the OP's husband turns down the job, someone else will become an evil government employee. We also need to eliminate the State Police, Prison Guards and other agencies. Mental Health has just about been eliminated already! But seriously, the pension crisis, when it is resolved, will probably result in less generous benefits for employees but still pretty good.

[chet everett]

The "resolution" will HAVE TO MEAN that younger / newer state employees will get the SAME KIND OF 401k type plan that any person working for EVEN THE FEDERAL GOVERNMENT has had for more than decade! Older employees will be "grandfathered" into the same overly generous benefits. Employees in the middle will have to "kick in more" to cover the older ones and themselves...

I would not rule out employment with the State of Illinois over "pension crisis" but I would be aware that the mess that has been allowed to fester for too long is unlikely to make for happy co-workers...

[seraphita]

Employees in the middle will have to "kick in more" to cover the older ones and themselves...

Professors at public Illinois universities currently contribute 8-10% of their salary towards their retirement plans. It seems clear that that amount will have to increase, but I wonder by how much.

[chet everett]

Originally Posted by seraphita

Professors at public Illinois universities currently contribute 8-10% of their salary towards their retirement plans. It seems clear that that amount will have to increase, but I wonder by how much.

...the law makers had no qualms about asking for 66% increase...

[Drover]

Originally Posted by tomcruiseisyourmom

Working in the public sector is always a bad idea. We need to get rid of all government employees and agencies. Why should I pay your husband's salary with my tax money. I earned it, I don't want any one else's grubby little hands on it.

Shaddap.

Originally Posted by seraphita

My husband is considering a job as a university professor at an Illinois public university. Should we be concerned about the pension crisis, or do you think the current legislature will resolve it in a satisfactory manner?

College/university instructors do not participate in the Teacher Retirement System, which is the pension system everyone's fretting about. He would be participating in the State University Retirement System. If he doesn't trust the state to manage his pension for him, he can select the 401(a) plan which is similar to a 401(k) in that it is a defined contribution rather than defined benefit plan, the employee chooses from a range of investment options, contributions are tax-deferred, the contributions are placed in trust and out of the employer's reach, et cetera.

Whether he chooses the standard pension plan or the 401(a) plan, there is a mandatory 8% contribution. The reason the contribution rate is so high is because full-time state employees do not pay into Social Security. The state throws in another 7%. The 7% match is the part he shouldn't count on forever -- as with any employer the match rate can change whenever management (in this case, the state legislature) decides to change it.