Pension Reform Takes Center Stage in Springfield
8:20AM Thursday
February 28, 2013
February 28, 2013
by Todd Wineburner with Dave Dahl
As members of the Illinois House prepare for another all-day hearing today (Thursday) on pensions, a new pension proposal is being considered. Backed by members of the four legislative caucuses, House Minority Leader Tom Cross (R-Oswego) describes this plan as a hybrid.
“What this does going forward takes us in a little different direction from a DB to a combination of a ‘defined benefit’ plan coupled with a ‘defined contribution’ plan,” Cross said. “You’ve heard about ‘cash balance’ plans; this is a different variation on that.”
State Rep. Elaine Nekritz (D-Northbrook), co-sponsoring the plan with Cross, said, “The funding guarantee … allows the state pension systems, acting in their fiduciary obligation, to go to court to enforce an actuarially required number,” as opposed to the General Assembly setting some less reliable number, or skipping payments, or both.
Features include higher contributions, an increased retirement age, and cost of living adjustment restrictions. Supporters say they believe it can pass a constitutional test, but Cross acknowledges anything which passes will wind up in court anyway.
Cross said he did not know how the plan would fit into today’s pension debate.
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