Pension reform bills passed out of each chamber of the Illinois General Assembly last week, and Gov. Pat Quinn said Monday he wants to see a provision requiring the state to make its yearly state pension contribution in full.
"The state can never ever again not pay
what it should pay every year to the pension account. That's why we're
in this situation," he told the Associated Press yesterday, as state
lawmakers enjoy a two-week vacation.
To address Illinois’ nearly $100 billion underfunded pension system, the Illinois House passed HB 1165
on Thursday. Sponsored by State Rep. Elaine Nekritz (D-Northbrook), the
bill would raise the retirement age to 67 for those hired after January
1, 2011 and change the cost-of-living adjustments (COLA) for pensions,
making the 3 percent annual increase only applicable to the first
$25,000 of an individual's pension, among other provisions.
The Illinois Senate passed SB 1
on Wednesday, a version of the bill sponsored by Senate President John Cullerton
(D-Chicago) that would require working members of the Teachers’
Retirement System (TRS), which includes Illinois teachers outside of
Chicago, to choose between a 3 percent annual cost-of-living increase or
state-subsidized health insurance.
Both bills are unfavorable to unions, which has spoken out against the legislation.