Where do the Chicago Civic Committee and now the Illinois Policy Institute get off proposing legislation?
Illinois Policy Institute – PRESS RELEASE: Illinois Policy Institute pension reform proposal would save more than twice as much as Madigan pension plan
HB 3303 is the only pension reform plan under consideration that protects what workers have earned to date and actually solves the pension crisis
SPRINGFIELD, Ill. May 28, 2013 – Today, state Rep. Elaine Nekritz released savings projections for the pension reform plan backed by House Speaker Michael Madigan. Supporters of the Madigan/Nekritz/Cross plan have argued that his plan should be enacted because it saves more money than Senate President John Cullerton’s proposal. Using that same principle, Illinois would be better off passing House Bill 3303, the Illinois Policy Institute-backed pension proposal, which save more than twice as much money by converting Illinois’ pension systems to a 401k-style system.
The Illinois Policy Institute’s pension reform plan, HB 3303:
- immediately reduces the unfunded liability by about half, or $46 billion,
- saves the state more than $220 billion between now and 2045.
- replaces the irresponsible repayment ramp with level payments reduces the state’s annual pension contribution by more than $2 billion in fiscal year 2014 year and eliminates the state’s unfunded liability by 2045, and
- empowers workers to control their retirement savings going forward with 401k-style plans modeled after the existing State Universities Retirement System’s 401a plan.
This plan is supported by state Sen. Jim Oberweis, and state Reps. Jeanne Ives and Tom Morrison. The core components of the Institute’s plan have been scored by the Commission on Government Forecasting and Accountability. The Institute’s plan would achieve savings greater than any other pension proposal on the table.
By contrast, the Madigan plan reportedly:
- only reduces the unfunded liability by $21 billion, compared to the Institute plan’s $46 billion;
- saves the state less than $190 billion over the next 30 years, compared to the Institute’s more than $220 billion in savings;
- keeps in place the irresponsible repayment ramp enacted under the Edgar plan;
- reduces the state’s annual pension contribution by less than $2 billion in the first year, compared to the Institute’s plan to move to level annual payments; and
- forces state workers to continue putting their retirement savings in the hands of politicians, instead of giving them the choice and control over their own retirement future.