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May 9, 2013

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Cullerton, Madigan Appear Headed For Pension Showdown
From the Chicago Tribune
The pension deal cut by Senate President John Cullerton and state employee unions moved a step closer Wednesday to a collision course with a proposal backed by House Speaker Michael Madigan.
Cullerton's Democratic majority delivered a 10-5, party-line committee vote that set up a Thursday debate in the full Senate. The plan advanced despite the protests of a retired teacher group that declared it unconstitutional because it would reduce benefits and Republican complaints that the deal doesn't save enough money. The Senate plan is projected to save about a third of the House plan's estimated $150 billion.
At the heart of the legal debate is how to get around what has long been seen as a state constitutional guarantee that pensions cannot be impaired or diminished. But it's the political debate that ultimately may make the difference between what, if any, measure goes to Gov. Pat Quinn to overhaul the pensions of rank-and-file state workers, downstate and suburban teachers, lawmakers and university employees.
The Democratic governor has showered praise on a Madigan plan passed last week that raises retirement ages, requires workers to kick in 2 percent more from their paychecks and scales back the automatic 3 percent annual compounded increases for retirement checks.
Read more in our daily News Update...

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