Details Emerging On Possible State Pension Deal

The Governor and legislative leaders are set to meet Saturday in Chicago.
There’s a potential breakthrough in the protracted debate over what to do about Illinois’ estimated 96 billion dollars of pension debt.
House Speaker Michael Madigan is apparently no longer insistent that suburban and Downstate schools begin to pay for teachers’ retirement benefits … a cost currently paid for by the state.
That’s been a main sticking point for the top Republican in the House.  Tom Cross says shifting that cost to schools would spike local property taxes.
Various pension proposals have come up before the House in the past, but Cross says something about this deal is different.

CROSS “I have to assume that this is real.  I want it to be real so maybe it’s some wishful thinking.”

Illinois Public Radio obtained details of one potential plan, which would have Illinois’ pensions systems fully funded by 2043.
It requires state employees, teachers and university workers to pay more into their retirement.
Retirees’ wouldn’t get their cost-of-living increases for about five years, and they wouldn’t kick in until age 67.
And to ensure Illinois’ pension systems don’t get into this mess again, if the state skips out on paying its portion of the bill, the pension systems could sue. (Amanda Vinicky)

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One Response to Details Emerging On Possible State Pension Deal

  1. Jim Winhold says:

    So the pension systems could sue, and a judge would rule the same as they did against AFSCME when Quinn refused to pay agreed upon raises in the last AFSCME contract. He ruled “The state cannot be forced to spend money.” We need a mechanism to make the legislature take pension payments seriously with more teeth to it than the right to file a lawsuit destined to fail. Under this deal state workers will pay for past legislative aggressions and the legislature will continue shortchange the pension systems. We will be in trouble again in 10 years.
    The We Are One coalition needs to be involved in the process of devising a solution to the problem that actually constitutionally fixes the problem.
    All of the current legislative proposals place the burden solely on the backs of state workers and retirees. This is not only unfair it is unconstitutional. The state will spend money they don’t have defending these plans in court, and they will loose. Then we will be right back where we are now only the problem will be worse having been unaddressed while this whole ruse played out. Why not work with the union coalition to come up with a real, permanent and constitutional solution?

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