Jul 28, 2014

Illinois Passes Historic Pension Reform

Both the Illinois House and Senate narrowly passed a measure that addresses Illinois' out of control pension problems, spreading out the pain.

Illinois Passes Historic Pension Reform
Posted by  Pam DeFiglio, Editor

After years of dithering, Illinois senators and representatives took a momentous step forward Tuesday in solving the $100 million pension problem that has bedeviled the state, its finances, and its credit rating.

The state Senate  passed the measure 30-24, and the House passed it 62-53, the Chicago Tribune reports--all in one afternoon.

The deal will  save $160 billion over 30 years, and reduce the state's payments for pensions by about $1.5 billion a year, reports the Chicago Sun-Times. 

It does so by curtailing cost-of-living increases for pensioners, who include suburban teachers and retired state workers. It also raises retirement ages for younger workers. 

For that reason, several sources said, labor unions may mount a legal challenge to it. 

Illinois' pension crisis is  considered the worst in the nation,reports chicago.cbslocal.com, because for years lawmakers diverted money elsewhere and did not make full payments into the funds. 

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