A proposal to change the retirement age for state workers to 67 would have to be phased in to discourage a wave of workers trying to sneak their retirement papers in before the measure takes effect, Gov. Pat Quinn says.
“We don’t want a rush to the door of current employees,” Quinn told The State Journal-Register.
Gov. Pat Quinn, citing the need for "bold action" to rescue the state's public pension funds, this afternoon unveiled a plan calling for increased employee contributions, a reduced cost-of-living increase for retirees, and an older retirement age.
While some public employees can now retire at 55, the governor's plan would push that back to 67. Meanwhile, employees would contribute an extra 3 percent of their earnings toward their pension, and COLA increases would fall to half the rate of inflation or 3 percent, whichever is smaller.
Legislation pending in the state Senate would pump $270 million into the underfunded Chicago Teachers Pension Fund next year.
After that, the state's contribution would be fixed at a tenth of the annual amount it provides to the Teachers Retirement Fund, the pension fund for teachers elsewhere in Illinois. Read more...
An Illinois House committtee today approved a bill that will make it more diffficult for local governments and the General Assembly to increase pension benefits.
Under the measure, backed by House Speaker Michael Madigan, city councils, school districts and legislators would have to pass any pension-benefit increase by a 60 percent margin, rather than a majority.
