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Illinois implemented Tier II pensions with fewer benefits in
2011. Former Illinois Gov. Pat Quinn signed that measure.
Tuesday, he said it brought savings.
“I do think it may need some tweaking to make sure it complies
with the federal law regarding Social Security,” Quinn said at
an unrelated news conference.
A measure proposed at the statehouse would bring Tier II into
line with Social Security, something estimated to cost taxpayers
about $5 billion extra over several years.
Wednesday, Gov. J.B. Pritzker said something will happen, but
couldn’t say when.
“It’s not something that needs to get done exactly in the next
session but it’s clear it needs to be dealt with because
otherwise you create a whole nother liability for the state,”
Pritzker said.
Illinois’ unfunded pension liability is $140 billion. That
doesn’t include tens of billions in liabilities from subsidized
health care coverage for public employee retirees.
Pritzker acknowledged the taxpayer cost to bring Tier II in line
with Social Security.
“Five billion dollars I think, but it’s something that will be
strung out a number of years to pay into the system as we do
now,” Pritzker said.
Illinois spends about $10 billion a year on pension payments.
House Minority Leader Tony McCombie, R-Savanna, said her caucus
is still reviewing the proposed details.
“So our caucus certainly supports a safe harbor fix, it’s just
going to be the devil in the details on that,” McCombie said.
The legislature canceled Thursday’s session. Lawmakers will be
back Tuesday. |
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