|
 But Senate President John Cullerton, a Chicago Democrat, said the
plan promoted by the Republican governor goes beyond what he
supports because of curbs on collective bargaining.
Rauner said the initiative would give workers a choice between
having future salary increases count toward their pensions or
continuing to receive 3 percent compounded annual cost-of-living
increases upon retirement.
"This does not go as far as we need to ... But it's a step in the
right direction," Rauner told reporters at a news conference. He
added it would save the state $1 billion annually and affect four of
the state's five pension funds.
Illinois has the worst-funded pensions and lowest credit ratings
among the 50 states. An impasse between Rauner and Democrats who
control the legislature has left the fifth-largest state without a
budget seven months into fiscal 2016.
 Rauner said the so-called consideration approach will be
constitutional as long as salary increases are removed from
collective bargaining with labor unions.
“We apparently still have a fundamental disagreement over the role
of collective bargaining in this process, in the sense that I think
collective bargaining should continue to exist and the governor does
not," Cullerton said in a statement.
An aide to House Speaker Michael Madigan characterized the
governor’s track record on pensions as anti-working family. “What
he wants to do is destroy middle-class families whether it’s over
pensions or wages or injuries on the job site,” said Steve Brown, a
spokesman for Madigan.
[to top of second column] |
Easing pension costs was made harder after the Illinois Supreme
Court last May tossed out a 2013 state law that would have saved as
much as $145 billion over 30 years, ruling that public sector
workers have iron-clad protection in the state constitution against
cuts to retirement benefits. The high court could rule as soon as
Friday on a union challenge to a 2014 state law to shore up two of
Chicago's financially struggling pension funds.
The city used a consideration argument to defend the law, claiming
that pension benefit cuts and higher pension contributions will save
the funds from insolvency.
Union coalition We Are One Illinois contended the governor's plan
was unconstitutional. "A forced choice between two diminished
options is no choice at all and forbidden by the court," it said.
(Editing by Matthew Lewis)
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