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State
Sen.
Bill Brady, R-Bloomington, who represents the Senate Republican
Caucus on the panel, says the next step will be even more difficult.
"Next week, the commission will
attempt to determine how to recommend any cost savings be used,"
Brady said. "That is where we're really going to have to vigilant to
ensure any cost savings aren't used to hide the governor's failed
fiscal policies. This discussion needs to be about the long-term
solution to our pension funding crisis -- and its overall drain on
the state's budget -- not the governor's fiscal irresponsibility.
"I will not support further
burdening our grandchildren with debt and putting the pension system
in greater financial risk to bail out the governor."
To help ease the long-term financial
burden on the state budget, the commission on Friday approved
recommending a moratorium on new pensions unless there is a specific
new funding source identified. "It does not make sense to incur new
costs without a way to pay for them," Brady said.
In addition, the commission chose
eight areas of cost savings for "examination and consideration."
"The list includes limiting ‘end of
career' pay increases that we're seeing in school districts and
other areas," Brady said. "We should examine limiting these large
bumps in pay that are done not as a reflection of job duties but
rather just to bump up an employee's pension."
Other areas to be examined include
increasing the early retirement penalty for future employees who
retire before age 65, limiting cost-of-living adjustments for new
hires, changing the alternative retirement formula for new hires
only, increasing employees' contributions and changing the money
purchase option for new university system hires. The report will
also include options that could be considered in those areas.
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this article] |
 Brady made it clear in the
commission meeting that the report will not recommend benefits cuts
or changes. "What we're doing is urging the governor and General
Assembly to focus the attention on specific areas where the state
could save some money," he said.
At his insistence, the Pension
Funding Commission has already voted unanimously to reject any plans
the governor may have had to reduce benefits for existing employees,
which Brady and others believe would be unconstitutional.
"The pension benefits of our current
teachers and employees are protected under the Illinois
Constitution," Brady said. "Any move to reduce those benefits would
end up costing the state in litigation expenses. The bottom line is:
The state needs to live up to the commitments we have made to our
teachers and other employees."
The recommended moratorium also does
not apply to an extension of the early retirement option in the
Teachers' Retirement System, which was approved unanimously by the
Illinois Senate during the 93rd General Assembly, or to local
government pensions.
[Illinois
Senate Republican Caucus news release]
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