Dupage Policy Journal

A Des Plaines lawmaker advanced legislation out of the Senate that cracks down on loopholes university administrators use to game the system for large payouts, commonly known as "golden parachutes."

Sen. Laura Murphy's (D-Des Plaines) legislation bolsters a policy adopted under the Government Severance Pay Act in 2018. The regulation limits the amount paid out in severance packages from universities. Murphy's plan would strengthen the 2018 legislation and ensure that definitions are more clearly laid out. 

"Students and taxpayers shouldn’t have to foot the bill for a retired administrator’s six-figure payouts," Murphy said in an April 23 Facebook post. "The Government Severance Pay Act was intended to ensure our institutions spend responsibly, with the campus community in mind — it’s time we hold them to that standard."

The problem had arisen due to increasingly large severance payouts for university administrators upon their departure, even when university performance and key metrics declined under their watch. 

At the expense of taxpayers, these large payouts have caused increasing pressure to address the situation to ensure these funds are used responsibly, rather than providing massive payouts to administrators transitioning to a new role.