ERO Sunset
On July 1, the TRS Early Retirement Option was allowed to expire by the Illinois General Assembly. With its expiration, TRS reports that approximately 200,000 active and inactive TRS members will be eligible for a refund of total contributions they paid between 2005 and 2016 to help fund the ERO program. The .4 percent increase in effect since July 1, 2005 has been handled in various manners by each district, most frequently bargained through the collective bargaining agreement. Many districts have anticipated this change through their language, but each CBA must be carefully reviewed to determine how the contribution decrease and the refunds will be handled, and should include discussion on the district's past practices, history of negotiations, and open discussions with any teacher representatives. Districts should consider how their CBA language can manage any potential revocation of this sunset and reinstatement of the ERO option.
TRS has announced that there will be refunds of these increased payments to eligible TRS members beginning in late 2016. TRS has indicated that it will contact eligible members and will let them know when they can apply for the refund.