Pension Reform
11:57 am
Mon August 26, 2013

Special Pension Committee Considering Framework for Compromise

A bipartisan panel tasked with solving Illinois' multi billion-dollar pension crisis is considering a framework that could save the state about $145 billion over 30 years.

Credit Illinois Public Radio

The Associated Press on Friday obtained an outline of ideas the 10-person committee is considering.
It calls for ending automatic 3 percent cost-of-living increases for retirees. Increases would instead be linked to the rate of inflation. Employees would contribute 1 percent less to their own retirement. And the pension systems would be fully funded within 30 years.

State Senator Kwame Raoul is committee chairman. He says the group hasn't reached a consensus and ``our work is not done.''  Illinois has a nearly $100 billion pension shortfall. Lawmakers voted in June to form the committee after hitting an impasse on a pension fix.

Gov. Pat Quinn says the outline is ``positive indeed.''  However, the Chicago Democrat was less clear about whether he's fully behind it or not, saying he wants to see final details. He told reporters Sunday after an unrelated event that the panel tasked with coming up with a way to address the state's nearly $100 billion pension problem has made progress. Pensions have been Quinn's top issue. He recently halted lawmakers' pay after lawmakers missed another one of his deadlines to solve the issue.

 

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