 The Illinois House of Representatives could vote this week on the
proposed changes, which include increasing the retirement age from
50 to 55 and requiring employees to be on the job for 30 years
before being eligible for their full pensions.The legislation
would also cap the salary that public employees could use to
calculate their retirement at $106,800, starting next year. (This
amount would increase annually by half of the Consumer Price Index.)
The legislation is a compromised version of the bill that was
introduced in the House after passing the Senate 46-0 this spring.
Changes to
Senate Bill 3538 were a result of listening to the concerns of
the police and firefighters' unions and municipalities throughout
the state, according to the bill's sponsor in the House, Rep. Kevin
McCarthy, D-Orland Park.
"I think we've come forward with a compromise that is workable.
It's a compromise that I don't (think) is something that either side
is going to say is their cup of tea, but I think they both realize
this a very difficult and very involved issue," McCarthy said.
Forcing cities to make their annual contribution to the
retirement funds is one specific area the unions said they wanted to
see beefed up in the legislation. As the legislation stands, the
state can, but isn't required to, intervene if a city didn't
contribute enough cash to the retirement funds.
Municipalities, which are responsible for the majority of the
pension payments, say the bill is better than nothing but doesn't go
nearly far enough.
"Some of the other changes that aren't going in the direction
we'd like to see it go will obviously have a negative impact on our
ability to make our payments into the system," said Rockford Mayor
Larry Morrissey. "The penalty provision without some of the other
reform elements we'd like to see, again, could be problematic."
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Morrissey added that real reform will affect those already in the
system, not just new hires.
"We're debating about what's going to happen with future
employees when we're not doing any hiring," he said.
Morrissey said the Illinois Municipal League, of which he is a
part, will be back in Springfield during the spring session with
more substantial changes.
Ideas on how to shore up the state's sagging pension system are
welcome, said McCarthy, the legislative sponsor. Currently, the
state's pension system is about $77.8 billion short of what is
promised to current and retired workers. Making changes to benefits
for those already in the system would be a difficult task, however.
The state constitution equates retirement benefits for public
employees to a contract. Changing benefits for those in the system
could be construed as unconstitutional.
"We aren't going to load up a bill that we know is constitutional
with some things that may be unconstitutional in order to delay the
implementation of it," McCarthy said.
The legislature passed similar changes earlier this year for
state-funded pensions of teachers, university employees, judges and
future lawmakers.
[Illinois
Statehouse News; By ANDREW THOMASON]
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