Lawmakers have a new proposal on the table Wednesday as part of efforts to fix Illinois' multi-billion-dollar pension crisis.
Democratic Rep. Elaine Nekritz and about a dozen other lawmakers announce the new legislation aimed at reducing the state's $95 billion pension liability.
The plan calls for raising employee contributions and reducing cost of living increases. It would also create a tiered retirement age. Younger employees would have to work longer, and some costs for teacher pensions would shift to school districts.
Illinois Senate President John Cullerton is concerned the new plan may be unconstitutional. Cullerton says the plan appears to impose unilateral cuts to benefits, which he believes the Illinois Constitution prohibits. Rep. Nekritz is one of the proposal's authors, and she says it remains to be seen how the Supreme Court would rule. Nekritz also says a new provision to guarantee Illinois will meet its funding obligations may sway justices. Cullerton says he'll take a closer look.
Illinois' pension crisis is among the worst in the nation, but lawmakers have been unable to agree on legislation needed to fix it. Some critics already say the effort falls short; others believe the cost shift will lead to a hike in local property taxes. It remains to be seen whether Gov. Pat Quinn or legislative leaders will support this new proposal.
The bill is HB6258.
