A letter sent from the Illinois Public University Presidents and Chancellors expressing “profound disappointment in and our opposition to the proposed pension legislation” was sent to Gov. Pat Quinn Monday.

President Bill Perry, along with other state university presidents and chancellors, wrote out the letter in response to the proposed pension plan being discussed Tuesday by legislators.

“The bill will be detrimental to higher education in Illinois and ultimately to the overall economy of the State of Illinois,” the letter states.

The proposed plan was introduced Monday with lawmakers expected to discuss it Tuesday. The plan includes stipulations such as capping the pension earnings to be like the limit used for Social Security purposes, increasing the retirement age for anyone 45 years old or under and “pension abuse” blocks, making sure the State pays for supplementary funding.

The letter states that by capping the pensionable salaries and changing the Cost of Living Adjustment (COLA) there will be “a severe impact on the retirement security of faculty and staff in the state’s public universities.”

“They will adversely affect our collective ability to recruit and retain the people we need to educate the next generation of workers and entrepreneurs, provide health care for the state’s neediest citizens and build new startup companies and create jobs through university research,” the letter continues.

The letter also urges Quinn to reconsider the proposed plan for the State Universities Retirement System (SURS) by the Illinois University Presidents and Chancellors, which they call “fiscally sound.”

The proposed plan, which they have been advocating for three years, revolves around the “Six Step Six Simple Steps: Reforming the Illinois State Universities Retirement System” from the Institute of Government and Public Affairs.

The six steps include changing the annual COLA, changing the value of the Effective Rate of Interest, shifting contributions to colleges and universities, increasing employee contributions by an additional two percent and requiring the state to repay the current SURS unfunded liability, and provide a new “hybrid” definition of benefit and definition of contribution plan for new employees.

“We continue to believe that sensible reform is essential,” the letter to Quinn states.

Perry also said the letter was sent to House Speaker Michael Madigan, Senate President John Cullerton, Senator Dick Durbin and Senator Christine Radogno.

Bob Galuski can be reached at 581-2812 or [email protected].