Illinois state pensions

Last week, the Illinois governor’s budget address outlined several proposals to reduce state spending. One focuses on K-12 schools.

Illinois Gov. Bruce Rauner wants public school districts to begin “cost sharing” their employees’ state pensions over the next few years. Districts would be responsible for 25 percent of their pension cost during the first year, then an additional 25 percent each of the following three years. He said this overhaul is a fiscal necessity.

jeanneives.org

The state representative challenging Governor Bruce Rauner in next year’s Republican primary is proposing several changes to Illinois’ pension systems.

Jeanne Ives of Wheaton is calling for three things. First, she want to amend the Illinois Constitution to eliminate protections for government pensions. Second, she wants to enroll all new state workers in a 401(k)-style plan. And finally, she wants to renegotiate pensions as part of an “honest conversation” with both current employees and retirees about the state pension system.

state of Illinois

One of the toughest issues facing Illinois lawmakers is moving along in the legislature. The House approved a plan supported by House Speaker Michael Madigan this afternoon. It now moves to the Senate.

Illinois Governor Pat Quinn wants state institutions, such as Northern Illinois University, to contribute to their workers' pensions.  Currently, the state pays the employer share of contributions.   Quinn's plan would slowly shift the responsibility for paying the "normal cost of pensions" to universities, community colleges and school districts.