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Illinois legislature OKs pension overhaul

  • Illinois' Senate and House have approved a revamp of the state's retirement system, one of the most underfunded in the country with a gap of almost $100B.
  • The plan is designed to fully fund Illinois' five pension systems by 2044 by saving an estimated $160B over 30 years. Workers and retirees face cuts, the retirement age for younger staff will rise, and the state will increase its payments by $60-70B.
  • Unions are strongly opposed to the proposals and intend to go to court to stop them from being enacted. One argument is that the overhaul violates the state constitution by lowering pension benefits.
  • Still, the Illinois revamp could provide a template for municipalities that are grappling with similar problems. Chicago, which has a pension shortfall of $19.5B, has been watching the situation with interest. (Previous)
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Comments (7)
  • I meant no offense Sir,We are heavily in debt as a nation and some saw this present situation coming a long ago and prepared the best they could.But this is what happens usually when one lets someone else do their financial thinking for them.
    4 Dec 2013, 06:36 AM Reply Like
  • Egad, public employees taking personal responsibility for their own retirement planning, you must be mad, sir..........In addition, plan only addresses 20% of pension gap so hardly a template for other cities, more like fig leaf for Quinn's run for re-election.
    4 Dec 2013, 06:44 AM Reply Like
  • Good thing those union employees who are strong democrats will still come out and vote for quinn.

     

    Remember, in 2010 Bill Brady only lose to Quinn by something like 20k votes... These union votes are very important and Quinnochio might be digging his own grave.
    4 Dec 2013, 08:53 AM Reply Like
  • Workers your going to have to create a revenue to cover the gap that the cuts create,best.In the planning try to keep it above rise in cost and inflation,the planning should keep us net 30.
    4 Dec 2013, 07:51 AM Reply Like
  • Where is the state getting the 60 or 70 Billion? They are broke.
    4 Dec 2013, 09:22 AM Reply Like
  • As a former municipal worker I have no problem with this as long as the state put their required contributions in the fund EVERY year without fail, otherwise the workers and former workers are being asked, no demanded to fund state projects and lack of tax increase(s) that were enjoyed by all the citizens.
    4 Dec 2013, 09:32 AM Reply Like
  • You do realize as a former municipal worker you were promised something they could not deliver in exchange for your vote.
    4 Dec 2013, 10:27 AM Reply Like
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