The origins of what would become the SUAA can be traced to April 1, 1970, when retirees of the University of Illinois at Urbana-Champaign gathered in the Law Building auditorium to form an organization to represent their interests as annuitants. Secretary Mary Lois Bull noted 125 people were present, and they adopted a constitution and elected an Executive Committee. Key figures in this early phase included David E. Lindstrom and Charles L. Stewart, who were instrumental in organizing initial meetings and advocating for annuitant interests.
The initial aims of this Urbana-Champaign chapter included seeking more favorable pension adjustments, addressing living costs, better treatment for surviving spouses, and advocating for full pension coverage. One of their early successes was the passage of Senate Bill 923, which established the first statutory annual increase in pensions. Efforts also focused on including a provision in the Illinois constitution to protect state pension systems, resulting in Article XIII, Section 5, which states that pension benefits are an "enforceable contractual relationship" and "shall not be diminished or impaired".
The statewide organization, initially known as the Illinois Annuitants Association, was formally established in Springfield on November 17, 1971. This formation involved representatives from nine state campuses and universities who met to establish a unified state group. David E. Lindstrom, from the Urbana-Champaign chapter, was elected its first state president. The organization aimed for independence from university control while maintaining close liaison relationships.
By 1972, all campuses were considered "now organized" into chapters. The statewide organization officially adopted the name State Universities Annuitants Association (SUAA) in 1976. Throughout the 1970s and 1980s, SUAA continued its advocacy, focusing on increasing pension payments, improving survivor benefits (such as ensuring benefits would not terminate upon remarriage), and fighting for income tax deductibility of survivor benefits. A notable legal battle was the Florence Barnes vs. United States of America case, filed in 1984, which sought to establish that SURS survivor benefits were not taxable. Despite initial success, the U.S. Supreme Court appeal was ultimately rejected in 1987, affirming their taxability.
As SUAA approached its third decade, it focused on strengthening its state office with permanent headquarters and paid staff, as well as increasing membership fees and continuously growing its chapters. By the late 1980s and early 1990s, the SUAA's primary purpose was "to promote the interests of its members by improving the benefits and funding of the State Universities Retirement System". Its objectives included supporting favorable legislation, informing members, improving publicity, cooperating with other groups, working with the Pension Laws Commission, and increasing its chapters and membership to ensure adequate funding for the State Universities Retirement System (SURS).