Danny Oest

Publication Date


Document Type


First Advisor

Johnson, Donald R., 1941-

Degree Name

Ed.D. (Doctor of Education)

Legacy Department

Department of Leadership, Educational Psychology and Foundations


Teachers' Retirement System of the State of Illinois; School districts--Illinois--Finance; Teachers--Retirement--Economic aspects--Illinois; Early retirement--Economic aspects--Illinois


It is extremely important for school districts to accurately predict anticipated revenues and expenditures in order to forecast their financial position at the present time or at some point into the future. Prediction is critical in determining the status of the districts’ estimated cash flow, estimated fund balances, and financing options for the future. Sometimes, financial projections are not conducted with accuracy due to factors outside of school-district controls. A major concern to school-district business managers and superintendents is attaining the most accurate picture possible of all activity that influences financial conditions of a school district. One activity imposing costs upon school districts in unexpected fashion is the retirement of their educators. These retirements may bring the school districts unanticipated additional costs as required by provisions of the Teachers’ Retirement System (TRS) of the state of Illinois. Educators are permitted to retire early under certain TRS guidelines. Under an accelerated retirement benefit calculation method referred to as the 2.2 TRS Legislation, educators may feel compelled to retire sooner than expected as they may obtain the maximum annuity benefit sooner than previously allowed. The 2.2 TRS Legislation became law in June 1999. The provisions of the 2.2 legislation allow members to retire at age 55 with fewer years of creditable service yet maximum annuity calculation. The ability to retire sooner than expected with a greater retirement annuity created great interest among the TRS membership and resulted in an escalation of retirements. As a result of TRS member retirements, legislatively imposed school-district costs increased due to TRS members retiring sooner with greater benefit. Illinois public school districts remained financially obligated, under specific statutory requirements, to fund the school districts’ retirement system portion, regardless of the number of member retirements. The purpose of this study was to examine the financial implications of the 2.2 legislation imposed upon Illinois public school districts. A survey was conducted of the 890 Illinois public school systems regarding educators’ retirement activity and associated costs occurring between 1999 and 2003. A response from 320 Illinois public school districts generated the findings and analysis included in this research project.


Includes bibliographical references (pages [77]-80).


x, 87 pages




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