Bob Lyons is one of two members of the TRS board of trustees representing retirees. Bob reports:
I can tell you, now that it has been reported in the press, that the four legislative leaders have agreed in principle to a pension reduction plan that has gone to the system actuaries to total up the full “savings “ to the state. Their goal was to arrive at a reduction number greater than the Cullerton proposal though less than the Madigan approach. Their expected goal of saving the state $150 billion over thirty-one years would be closer to Madigan’s original pension reduction target of $168 billion. Supposedly, the COLA would be based on 3% times $1000 for every year that you taught up to a maximum of 30 years, or 3% of $30,000. Those of you that are mathematically gifted, or own a calculator as I do, will have determined that no matter what the size of your current pension it will grow by only $900 a year for those of us that have made at least the full thirty.
Three of the leaders are concerned that Cullerton, having convinced his own members of the Senate that “consideration” is a necessary element of a constitutional bill, will not be able to provide enough votes to pass this “compromise” plan in the Senate. Needing enough time to allow the actuaries to do their work means that if they do not want to wait forJanuary than a special session just before or after Thanksgiving is expected. Both Madigan and Cullerton have told the two Republican leaders that they must come up with half the votes necessary to pass a measure that will go into effect after June of 2014.
Other details on the proposal have not been reported.