pension

WUIS

Illinois may not be done with the 2013 law reducing state employees’ pensions after all. Attorney General Lisa Madigan appears to be readying an appeal to the U.S. Supreme Court.

Many thought the question of whether Illinois could save money by reducing state workers’ and retirees’ pensions was resolved in May, when the state’s Supreme Court justices unanimously ruled the answer is “no.”

Rauner's Pension Proposal Examined By House Committee

Jul 16, 2015
Flickr user Pictures of Money / "Money" (CC BY 2.0)

A multi-tiered pension proposal put forth by Governor Bruce Rauner was examined during an Illinois House committee yesterday.

Rauner wants to offer employees incentives like a one-time pay bump or extra vacation time. In exchange, public workers would receive a smaller pension.

With his plan, workers who opt to stick with their current pension setup would not have future wage increases counted toward their retirement earnings.

First Pension Proposal Hearing Held

May 14, 2015
illinois.gov

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.

Illinois Supreme Court

The Illinois Supreme Court will hear a case affecting public employee pensions. 

The court agreed to a quick review. Justices want to see briefs submitted by January 12th and responses by February 27th. The court could hear the case by March.

Lawyers representing state employees, teachers, university workers and others have another month to respond. The Attorney General's office argued delays would be costly to taxpayers because the pension reductions are designed to save more than a billion dollars a year.

Madigan Works To Accelerate Pension Law Review

Dec 10, 2014
state of Illinois

Illinois Attorney General Lisa Madigan wants to speed up a state Supreme Court review of a pension law.  But public employees are hoping to slow down that process.   

Last month,  a Sangamon County judge overturned the law that would reduce pension benefits.  The plan is estimated to save one billion dollars the first year. 

The judge found the law violates the state constitution's protection for public pensions.

Money is behind the arguments on both sides.  The state won't be able to pocket savings if the case remains tied up in the judiciary. 

A Cook County Judge ruled today that Illinois lawmakers will continue to receive paychecks while Governor Pat Quinn appeals a related ruling. 

Governor Pat Quinn says without a retirement system overhaul, Illinois will spend more on pensions than education in the next five years. Quinn's office says under current projections, required state pension contributions will rise to over $6 billion in the next few years if no reform is enacted.