SPRINGFIELD, Ill. – State Rep. Mike Halpin, D-Rock Island, recently voted to pass legislation to help educators save more effectively for retirement by providing them the options of participating in state-administered 403(b) savings plans.
“Our state’s hard-working educators deserve to have peace of mind about their financial security in retirement,” said Halpin. “But teachers are often asked to select from a confusing array of retirement plan options, many of which result in higher fees than what institutional investors would charge.”
Halpin supported House Bill 5137, which creates an optional supplemental defined contribution plan for active members of the Teachers’ Retirement System (TRS) and State Universities Retirement System (SURS). Currently, many employers under these systems offer 403(b) plans to their employees. In addition to the traditional plan, the measure authorizes TRS and SURS to sponsor a 403(b) plan, which can provide better rates and lower fees than current options.
“For modest salaries, teachers devote their careers to impacting young people’s lives and making a positive difference in our community,” said Halpin. “This legislation aims to improve teachers’ long-term financial security by enabling them to save for retirement quicker.”