pension bill

The Illinois Supreme Court today struck down a recently passed law designed to fix the nation's worst funded public pension system, putting Illinois lawmakers and the state's new Republican governor back to square one as they try to solve a huge state budget crisis.

The law enacted in December 2013, would have eliminated annually occurring 3% cost of living increases in pension benefits. It also would have upped the retirement age for state workers and limited the amount of salary that could be used to calculate pensions.

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Illinois lawmakers are bringing a new proposal on the table to fix the state’s multi-billion dollar pension crisis. Democratic Representative Elaine Nekritz and about a dozen other lawmakers are expected to announce new legislation today to repair Illinois' $95 billion pension liability. The plan calls for raising employee contributions and a tiered retirement age. It also would shift some of the costs for teachers' pensions to school districts.

Illinois House Speaker Michael Madigan says he's dropping his proposal to make state schools and colleges pay employee retirement costs.  

Illinois House Panel Approves Pension Overhaul

May 30, 2012
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A plan to cut government pensions and shift some retirement costs to schools has cleared its first hurdle in the Illinois Legislature.  A House pension committee approved the bill 6-3 yesterday.