Illinois Issues blog: House to take another shot at pension reform tomorrow

6 Jan

Supporters of pension reform in the House say they are still hopeful that the chamber can approve a plan before the current legislative session ends on Wednesday.

A House committee is scheduled to take up Senate Bill 1673 at noon tomorrow. Northbrook Democratic Rep. Elaine Nekritz said the bill scheduled for a hearing tomorrow would be similar to the plan that legislative leaders were negotiating over the weekend. The plan would:

  • Freeze cost of living adjustments (COLAs) for six years.
  • Increase employee contributions by 2 percent of salary.
  • Phase in contribution increases over two years.
  • Cap pensionable salary at the salary employees are earning when the bill goes onto effect or the Social Security wage base, whichever is more.
  • Include a guarantee that the state makes its annual required contribution to the pension systems.

Once the cost of living increase returns, it would only apply to the first $25,000 of retirement incomes and would not be awarded until employees turn 67. A controversial cost shift, which would require schools outside of Chicago, universities and community colleges to eventually pick up the full employer cost for employee pensions, has been temporarily set aside in an attempt to clear the way for the passage of this plan. More…

via Illinois Issues blog: House to take another shot at pension reform tomorrow.

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