 Representatives shot down a plan that would increase the state's
contributions to Chicago Teachers' Pension Fund. Lawmakers then
turned around and approved a measure that would require cities to
pay for their employers' last-minute increased pension funds.
State Rep. Jerry Mitchell, R-Rock Falls, said this is not the right
time to increase any spending.
"We're broke," Mitchell said. "There may be times when the
economy improves, we can look at this pension fund along with
others, but right now this is definitely a 'no' vote ... simply
because we cannot afford it."
House Bill 1544, sponsored by state Rep. Monique Davis,
D-Chicago, would have required the state to increase its
contribution -- an additional $481.3 million in fiscal 2012 -- to
the Chicago Teachers' Pension Fund. The bill failed 38-73.
Davis said the state has failed to make a larger contribution
since the funding has been lower than 90 percent.
"It would bring about a small amount of equality and fairness,"
Davis said. "It certainly wouldn't equal to $2.4 billion, but it
would certainly help bring that fund up to closer to what is
required."
Chicago Teachers' Pension Fund is underfunded by $191.5 million,
according to the fund’s most recent assets and liabilities report.
"The state is supposed to accept its responsibility and make a
contribution," Davis said.
But state Rep. Roger Eddy, R-Hutsonville, disagreed.
"The state of Illinois is in no position, as you all know, to
begin to fund the system at a $430 million addition. ... We have a
difficult budget process ahead of us, and a $430 million hit is
certainly not what's needed," Eddy said.
[to top of second column] |
But the proposal for Chicago teachers was not the only pension
cost-cutting move Monday. For cities and counties, the House
approved a proposal that lawmakers said would end "abuse on the
state pension system."
State Rep. David Harris, R-Mount Prospect, sponsored
House Bill 3076.
"What this bill does is simply this: It doesn't stop that
increase. If the municipality or the instrumentality wants to give
them that increase, that's fine. But it says anything greater than 6
percent has to be paid for right away by that municipality," Harris
said.
State Rep. Jack Franks, D-Woodstock, said a previous General
Assembly passed a similar plan because school district
administrators received end-of-term pension fund "spiking."
"(School boards) gave these folks these huge increases and told
the state to pay for it, so we stopped that," Franks said.
House Bill 3076 passed unanimously by a vote of 112-0. It was
passed to the Senate.
[Illinois
Statehouse News; By MARY J. CRISTOBAL]
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