The leaders of Illinois' General Assembly are making last-minute pleas to their members to vote for a potentially historic pension measure. But unions that say the package is unconstitutional are doing the same thing.
The Illinois House and Senate gathered briefly today (Tuesday) before legislators went into closed door meetings to discuss their next moves. Later this afternoon they'll be asked to vote on a deal that aims to knock down Illinois' $100 billion of pension debt by reducing state employees', teachers' and university workers' retirement benefits. The plan was the subject of a two-hour hearing this morning, during which House Speaker Michael Madigan called it a balanced approach: "The reason we're here today talking about this issue is that the Illinois pensions systems are just too rich to be afforded as the state goes forward. I think everybody acknowledges that change must be done." Madigan says the $160 billion reform proposal was designed to keep long-term low-income workers in mind. The proposal pushes back workers' retirement age on a sliding scale, has a funding guarantee, adds a 401(k)-style option and reduces employee contributions. It'd also replace the current 3 percent annual cost-of-living increases. Retirees would continue to receive that rate up to a certain amount of annuity payments, based on years of employment.
But the unions representing state workers' most certainly do not believe the plan is a balanced aproach. In fact, they say the systems got into financial trouble because the state continually skipped out on paying its share. They charge that the plan is unconstitutional, and unfair to employees who worked to earn their pensions.
The chambers will return later this afternoon for a vote -- a vote which is expected to be very tight.
