Pension reform bill makes progress
Updated: March 21, 2013
SPRINGFIELD -- A pension bill targeting teachers made it out of the senate, but it didn't come without a fight. Senators actually had to vote on the bill twice. It didn't get enough votes the first time around.
The proposal calls for some significant changes to the Teacher's Retirement System. Teachers would have to choose between two options: they could give up their retiree healthcare and keep their current benefits or save retiree healthcare, and take a reduced benefits package instead.
Critics argue the plan is unconstitutional and worry about the lack of savings. The sponsor, Senate President John Cullerton, believes it is constitutional, but says they really won't know until it's taken to court.
He defends the bill and says it would cut the unfunded liability by nearly $5 billion, and also save the state at least $18 billion over the next 30-years.
This bill only tackles the Teacher's Retirement System. Other systems are lumped into another bill which is still under review by the senate. Cullerton's proposal now heads to the house.
The proposal calls for some significant changes to the Teacher's Retirement System. Teachers would have to choose between two options: they could give up their retiree healthcare and keep their current benefits or save retiree healthcare, and take a reduced benefits package instead.
Critics argue the plan is unconstitutional and worry about the lack of savings. The sponsor, Senate President John Cullerton, believes it is constitutional, but says they really won't know until it's taken to court.
He defends the bill and says it would cut the unfunded liability by nearly $5 billion, and also save the state at least $18 billion over the next 30-years.
This bill only tackles the Teacher's Retirement System. Other systems are lumped into another bill which is still under review by the senate. Cullerton's proposal now heads to the house.
Comments
I have worked for the state for over 28 years and a percentage of my check has been held out to cover this cost of living increase. If they are now going to NOT give it to me when I retire then they need to stop taking it out. If our government was in the public sector someone would be arrested on embezzlement charges. I want to know what the status of our legislators retirement is going to look like.
Jennifer L.
March 21, 2013 at 5:11 pm
