Rep. Ives Files Legislation to Limit Pensionable Income for College and University Administrators

After passing legislation that triggered a detailed audit of College of DuPage expenditures and limited the size and scope of community college buyout packages and severance agreements, State Representative Jeanne Ives (R-Wheaton) on Monday filed a bill that takes aim at administrative perks that are used to bolster pensionable income for community college administrators.

HB4256 would amend the State Universities Article of the Illinois Pension Code to restrict the definition of “basic compensation,” which is used in calculating pensions, to exclude perks such as car and house payment allowances and allowances for home maintenance, laundry and other items. “Most Illinoisans are not aware that these college presidents, who often make more than $300,000 per year, are also receiving tens of thousands in these additional perks,” said Ives. “The allowances for cars and house payments boost pensionable income and drive up the costs to Illinois taxpayers.”

According to Ives, the provisions would not apply to employees hired before the effective date of the bill. “For college or university employees hired after the effective date, pensionable income would be limited just to the gross basic rate of salary or wages paid by the employer,” said Ives. “These hidden perks have allowed our colleges to inflate pensions to ridiculous levels and my bill will remove the loophole that allows that to occur while providing clarity to just how much money these college and university administrators make.”