 Effective, Jan. 1, 2011, new state employees -- including teachers
and other school employees, university teachers and staff, lawmakers
and judges -- will receive a different pension than current or
retired state employees. State employees will have to work until
they are 67 to receive full benefits under the new plan, and their
overall pension compensation will be less."The changes that have
been enacted into law here today for new employees who come to the
state as well as new teachers who come after the first of January of
next year, they will have a different set of rules," Quinn said.
Quinn said that without this reform, Illinois' pension system
would not be sustainable moving into the future.
"The people of Illinois will be well-served by this law," Quinn
said. "It protects taxpayers and it protects the retirement of
thousands of public employees and teachers."
He said the new plan will save Illinois $220 billion over the
coming decades and $400 million in fiscal 2011, set to begin July 1.
The legislation, which Quinn called "historical," had support
from both sides of the aisle Wednesday when he signed it into law.
Senate Republican Minority Leader Christine Radogno of Lemont
said the pension reform bill is a "good first step" in fixing the
state's financial problems, but she said more pension reforms are
still possible.
State Rep. Kevin McCarthy, D-Orland Park, who was a sponsor of
the legislation, said he agreed with Radogno that the new reforms
make a good starting point toward reducing costs for Illinois
taxpayers.
"It's a first step," McCarthy said. "I think it's a pretty good
first step, and I hope that we can make significant future steps to
even reduce the burden on our taxpayers more."
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Speaker of the House Michael Madigan, who was the bill's sponsor,
said he was thankful to the people who worked hard on the pension
legislation in both chambers of the General Assembly.
"It really started in the Senate and came over to the House,"
said Madigan, a Chicago Democrat. "Multiple supporters and multiple
sponsors of the bill ... there is plenty of credit that can be spread
around."
David Vaught, director of the Governor's Office of Management and
Budget, noted that a key element of the law prohibits "double
dipping" for individuals receiving pensions.
Currently, individuals receiving a public pension in Illinois can
work a second state job and still receive their pension along with a
salary. Vaught said that practice will stop under the new law.
Vaught also noted that the pension legislation will help Illinois
as it moves into the future by improving the state's bond rating,
which was recently downgraded.
"That we showed the capacity to govern and face a big problem
...
it doesn't only save ($200 billion)," Vaught said. "It's going to
save us a lot in interest payments as we issue debt in our state."
The new pension law will go into effect Jan. 1, 2011.
[Illinois
Statehouse News; By ASHLEY BADGLEY]
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