House pension package clears committee hurdle, positioned for full House vote – Sun-Times Politics

7 Jan

SPRINGFIELD-A bipartisan plan to solve the state’s $95 billion pension crisis moved forward Monday, advancing out of a House panel amid union claims the plan is “illegal” and uncertainty over whether it has enough votes to pass the House.

The House Personnel and Pensions Committee approved the package by a 6-3 vote. That outcome positioned the legislation for a full House vote, though its timing remained a fluid question as a noon Wednesday end to the Legislature’s lame-duck session looms

.”To me, the choice is clear. The time is now to end the excuses and say yes to reform for our pension systems and to long overdue relief for our great state,” said Rep. Elaine Nekritz D-Northbrook, the bill’s lead House sponsor.

Under the 175-page House bill, known as Senate Bill 1673, cost-of-living increases would be frozen for six years and disallowed for retirees until they reach 67.

Those retirement pension increases would be based on only the first $25,000 of a retiree’s pension; pensions would be capped at the Social Security wage base or an employee’s current salary, whichever is higher; employee pension contributions would jump by 1 percent of their wages for two years.

The House plan, which would fully fund the pension systems in 30 years, would apply to four of the state’s five pension systems and, most significantly, would not give existing workers or retirees a choice of accepting reduced pension benefits. More…

via House pension package clears committee hurdle, positioned for full House vote – Sun-Times Politics.

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