Pension plan could save billions
Updated: December 22, 2012
SPRINGFIELD -- New numbers show a plan to fix the state's public pension system could save the state enough money to get Illinois back on its feet.
A report on the proposal shows it would drastically cut down on what the state owes. State workers say the savings come at a price they are not willing to pay though.
Public pensions have ben in the spotlight in Springfield all year. They're costing the state too much money. But state workers do not want to lose any benefits. That is why lawmakers have not been able to agree on a fix. Some say the newest proposal could be the answer though.
It would save the state about $170 billion worth of pension payments over the next 30 years. That is almost half of what Illinois is supposed to pay right now. It would also cut off about $30 billion from the unfunded liability right away. Next year, it would free up $2 billion of the budget.
A major part of the plan is to make local school districts pay retirement costs instead of the state. Taxpayers say they can not afford that. But the report says the cost shift won't break the bank because there are built-in limits.
State workers don't think this plan is the right way to go though. Fixing pension systems means less pension benefits. Workers say they would rather contribute more of their paychecks if they can keep their promised benefits.
A report on the proposal shows it would drastically cut down on what the state owes. State workers say the savings come at a price they are not willing to pay though.
Public pensions have ben in the spotlight in Springfield all year. They're costing the state too much money. But state workers do not want to lose any benefits. That is why lawmakers have not been able to agree on a fix. Some say the newest proposal could be the answer though.
It would save the state about $170 billion worth of pension payments over the next 30 years. That is almost half of what Illinois is supposed to pay right now. It would also cut off about $30 billion from the unfunded liability right away. Next year, it would free up $2 billion of the budget.
A major part of the plan is to make local school districts pay retirement costs instead of the state. Taxpayers say they can not afford that. But the report says the cost shift won't break the bank because there are built-in limits.
State workers don't think this plan is the right way to go though. Fixing pension systems means less pension benefits. Workers say they would rather contribute more of their paychecks if they can keep their promised benefits.
