Wednesday, January 05, 2011
 
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State workers could get break on furlough pension costs

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[January 05, 2011]  SPRINGFIELD -- Public employees who take a furlough are still going to miss out on a day's pay, but soon it could be more affordable to keep their pension benefits.

An Illinois Senate committee on Tuesday unanimously approved a plan that would fix a loophole in the furlough law that had some state workers paying huge amounts of interest to maintain their pension contributions.

State workers, university employees and prison guards have either been required to take a furlough or given the option to take a day without pay. Gov. Pat Quinn's office said furloughs are part of the plan to save Illinois millions of dollars over the course of the next year.

To ensure that any furlough would not affect their pensions, workers are required to pay both their share of the contribution and the state's share as well. The original law charged workers interest on that cost from the employees' first day on the job. State Sen. Larry Bomke, R-Springfield, said that could cost some longtime employees a lot of money.

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"The way it was originally drafted would require an employee to (go) all the way back to when they were originally employed with the state -- that could be one year, five years, 10 years, 20 years, 30 years -- and pay that interest all the way up to today in order to not lose any benefits," he explained.

Bomke, who represents thousands of state workers in his Springfield-area district, said the new legislation would charge interest only from the day a worker takes a furlough until the day they pay their pension costs.

Anders Lindall, a spokesman for AFSCME, said workers faced a tricky situation where it would cost them more to try to do the right thing for the state.

"State employees are doing what they can to help close (the state's budget) gap," Lindall said. "One of those ways is through participating in a voluntary furlough program, and this is a fix to make certain that they are not inadvertently punished by taking a secondary hit in addition to the pay that they are forgoing."

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AFSCME is Illinois' largest public employee union, with thousands of members across the state. Workers covered by a union contract, like AFSCME members, are not required to take furloughs. But some state employees have been ordered to take days off without pay.

Bomke is quick to point out that some workers who have been waiting to pay what they owe for their pension benefits may see a bit of a savings if his proposal becomes law.

"They knew when they took (a furlough) that it was going to cost them a fair amount of money," Bomke said. "Now if they have paid it back, they (are) probably not going to get a credit. Those who have not paid it back will fall under" this plan.

The proposal has already cleared the Illinois House. Bomke said he expects a vote in the full Illinois Senate by the end of this month's lame-duck session.

[Illinois Statehouse News; By BENJAMIN YOUNT]

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