Cross’ Pension Plan Called ‘Most Promising’
As Illinois comes in dead last in education funding, the Sun-Times says it's time for lawmakers to take meaningful action on pension reform.
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State Rep. And house minority leader Tom Cross introduced a bill last week with Illinois Rep. Elaine Nekritz of Buffalo Grove that aims to trim the state’s pension costs.
In an editorial this weekend, the Chicago Sun-Times called the plan promising and urged lawmakers to pass the bill and make real progress toward solving one of the state’s biggest financial worries.
The bill includes the following new provisions for Tier I state employees, or those hired before 2011:
- Cost-of-living adjustments apply only to the first $25,000 of the employees’ pension
- That limit is reduced to the first $20,000 for employees eligible for Social Security
- COLAs are delayed until the employee turns 67 or five years after retirement, whichever comes first
- This applies to all employees and retirees who are currently receiving COLAs
- Retirement age is increased by:
- No increase for employees age 45 and older
- One year for employees age 40 to 44
- Three years for employees age 35 to 39
- Five years for employees age 34 and younger
- Employees would be required to contribute more toward their pensions by:
- One percent starting July 1, 2013
- Two percent starting July 1, 2014
The state is facing $98 billion in pension debt and has the worst credit rating in the nation. Moreover, it was revealed Monday that the state is also dead last when it comes to funding education.
According to the Sun-Times, the Cross bill could save the state $167 billion over the next 30 years.
Jax
6:33 pm on Monday, March 4, 2013
Not surprised every politician and union leader for state pensions got their fair share of that 98 billion now teachers and state workers get the shaft because of corruption at all levels and the surprising part is no federal agency is looking into the theft of 98 billion dollars from peoples pensions...hmmm mabye because Osama Obama got his hand dirty from that pot as well.. Not surprised about the educational funding either or the credit rating democrats have been in charge of illionois for decades and just like Detroit we will soon be a slum as well thanks to free welfare for everyone ..thanks Quinn, Obama ,Emmanuel,
oldschool
8:19 pm on Monday, March 4, 2013
They need to cap the pensions. I am in the system and some of the pensions that the retiring administrators will be pulling down are obscene. Also, dual pensions should be looked into.
jono100
9:32 pm on Monday, March 4, 2013
Thanks Tom...ill remember this next time I vote...
Ami
11:37 pm on Monday, March 4, 2013
It is wrong that educators have to suffer because of the actions of the politicians. The entire state benefited from the use of our funds which were "borrowed" by the legislators and NEVER repaid, but now people cry if their taxes would be raised. Taxes should have been raised instead of stealing from the retirement fund. Limiting COLAs to the first $25,000 is ridiculously low. We need to pay bills also. Are state legislator's pensions going to be impacted the same way? There have always been complaints about teacher's salaries--which for most of the state are ridiculously low. Are we now not even entitled to a decent pension that we have earned and paid for?
Dave
2:05 pm on Tuesday, March 5, 2013
Yeah, because if you look at how much the taxes have to be raised to pay for this it will drive everyone out. We can't afford it. You don't care if half the state lives in poverty to pay your pension, so don't be surprised when they don't care about your COLAs on a pension that they could never dream of. Run the actual numbers and see what kind of return you expect versus the amount contributed, it is not possible without setting a tax rate that drives everyone out of the state. Then what. When not enough folks are left to pay it, where does it come from. It is a compromise that still provides teachers with a better retirement plan than most of the folks who have funded it through their taxes.
Arthur Nelson
7:49 am on Tuesday, March 5, 2013
Illinois needs Revenue Reform.
Not pension theft.
The Supreme Court will rule this unconstitutional.
Lisa S.
4:17 pm on Tuesday, March 5, 2013
We need spending reform, entitlement reform, and a state that pays their bills and obligations. Had they done that all along we would not be in this mess.
I agree that some pensions (especially the double dippers and the 'pay bumps' before retirement) are ridiculous, and the system should be reformed. This is not the way.
Between this and the drivers licenses for illegals, I am not feeling very supportive of Tom Cross
HockeyFan
7:42 pm on Tuesday, March 5, 2013
We wouldn't have a pension mess if the leaders in our state didn't take and not payback the money they took out the pension fund to start entitlement programs. It is wrong that while state employees who put in their fair share into the fund are dealing with medical bills not being paid for over 12 months because the state is so far behind paying their health insurance premiums. Yet, people on LINK still get their money every month on time to waste on bottled water. WE ARE BECOMING THE WELFARE STATE. People who work hard get punished while people on welfare just keep getting more free stuff. More and more people I know want out of Illinois if they could only get out of their home.Tom Cross and everyone in Springfield should be fired.