SPRINGFIELD, Ill. (AP) - A proposed solution to Illinois' historic $100 million pension crisis is hanging in the balance as the state Legislature's October veto session approaches.
Key Democrats on a pension panel are pushing a plan to save the state $138 billion over the next 30 years, but Republican lawmakers want a number of changes. House Speaker Michael Madigan hasn't yet committed to calling the proposal for a vote, either.
Senate President John Cullerton supports the deal and calls it "less unconstitutional" than a previous plan that would have saved $163 billion.
Illinois' five public-employee retirement funds have an unfunded liability of about $100 billion. The annual contribution to the fund, plus payments on past pension bonds, is about $7.65 billion this year. That number will increase in years to come without action.
SPRINGFIELD, Ill. (AP) - The estimated savings on a pension proposal backed by Illinois House Speaker Michael Madigan earlier this year is nearly $25 billion less than originally thought.
That's because the Teachers Retirement System - one of Illinois' five pension systems - says it made a mistake in its calculations. The change was outlined in a Monday letter to a bipartisan panel tasked with coming up with an approach to solving Illinois' nearly $100 billion pension crisis.
Madigan's plan involves across-the-board cuts in benefits. It was originally touted to save Illinois about $187 billion over 30 years. However, the new estimate is about $163 billion in the same time period.
Another plan from Senate President John Cullerton, which had union support, was estimated to save roughly $47 billion over the same timeframe.
SPRINGFIELD, Ill. (AP) - A spokeswoman for Senate President John Cullerton says he will keep working to pass a pension reform bill he believes can survive a court challenge.
Rikeesha Phelon says Cullerton and fellow Democrat House Speaker Michael Madigan have "the same goal but different approaches" to solving Illinois' nearly $100 billion pension crisis.
Madigan filed his pension plan on Tuesday. It caps the salary on which a pension can be based at $110,000 and limits annual cost-of-living increases.
Madigan's legislation also removes language from a plan backed by Cullerton that got Senate approval last month. Cullerton's plan offers affected state-government employees and teachers a choice of benefits instead of unilaterally cutting them.
Cullerton believes the state must give retirees a choice in benefits in order for the legislation to be considered constitutional.
The bill is sponsored by House Speaker Michael Madigan and comes out of a laborious process where lawmakers are addressing the pension problem piece by piece instead of a total overhaul at once. House members voted in favor 66-50 yesterday. It's the third scaled-back pension bill the House has recently approved.
Thursday's proposal says that no cost-of-living increases can be taken until retirees reach 67 years of age, or five years after retirement and applies COLAs only to the first $25,000 of an annual pension.
Illinois has nearly $100 billion in unfunded pension liability because for years lawmakers either skipped or shorted payments.