Government
12:10 pm
Wed February 27, 2013

New Pension Plan Unveiled

Credit Illinois.gov

Several Illinois lawmakers have introduced another plan to address the state's massive pension problem. This proposal creates a new type of retirement plan for future teachers and university workers.

The plan combines some of what's been in previous proposals: The retirement age would be raised for employees younger than 45, and workers will have to contribute more toward their retirement.

Current and future retirees would have cost-of-living increases delayed until age 67 or five years after retirement.

But the biggest difference would create a new hybrid retirement plan for teachers and university workers hired in 2014 or later. It'd be a combination of a traditional pension and a 401-K-style retirement account, with school districts and universities picking up all of the costs.

Its the idea of Democratic Rep. Elaine Nekritz of Northbrook, and House Republican Leader Tom Cross of Oswego.

Cross says it's auspicious that 31 representatives, both Democrats and Republicans, have signed on as co-sponsors of the legislation.

"The fact that we have bipartisan support on an issue as critical as this sends a very strong signal that those folks get it" Cross said.

The sponsors acknowledge that any pension change is likely to be challenged in court.