Large group of lawmakers float their own pension plan – Illinois Education Association

5 Dec

A diverse group of legislators presented a “framework” for pension reform today, that the bill’s sponsor acknowledged likely will not pass in its current form because many different entities need to weigh in on it and because actuaries haven’t studied it.

However, the bill’s co-sponsor, Elaine Nekritz, D-Northbrook, said the bill, which she described as being written in a “very organic, member-driven process,” has support from lawmakers in “all corners” and shouldn’t be ignored.

And, those lawmakers who support the bill, which numbered about 25 at the press conference held Wednesday, said they hope it’s passed by the end of the lame duck session in January.

The bill, filed as House Bill 6258, would:

Create a new 30-year pension payment plan, making the state pay its employer share with a new funding right that can be enforced through court action.

Allow cost of living pension increases only for the first $25,000 of an employee’s pension.

Increase employees’ retirement age anywhere from one to five years, depending on their current age.

Increase employees’ pension contributions by 2 percent, one percent each year for two years.

Place new hires in a cash balance plan that combines the best features of defined contribution (or a 401k) plan and a defined benefits plan.

Further limit legislators’ pension increases.

Gradually shift teacher pension costs from the state to the school districts, doing so at about a half a percentage point per year.

Further pay down pension debt with money freed up when existing pension obligations notes are paid off. More…

via Large group of lawmakers float their own pension plan – Illinois Education Association.

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