An Illinois House committee held the first hearing on Gov. Bruce Rauner’s pension proposal.
Under his plan, workers would keep all the benefits they earned, but would see a cut to their benefits going forward. Democratic Representative Scott Drury said last week’s Supreme Court opinion, overturning pension changes passed two years ago, rules out that idea.
Rauner's staff argued that the plan is legal because it does not reduce current benefits -- only those yet to be earned.
Republican Jeanne Ives says employees in the private sector already face that reality.
“My brother, AT&T employee, he got five years and then he was told, ‘You’re immediately shifted to a 401k,’” Ives said. “This happens all the time -- at that point, it’s your decision whether to continue employment or to not continue employment.”
Democrats argued last week’s Supreme Court ruling on pension changes sent a clear message that the constitution does not allow cuts to benefits. Rauner wants lawmakers to approve a plan during the spring legislative session, which is scheduled to adjourn at the end of this month.