State Pension Deal Close, Not Done, Leaders Say
From the Chicago Sun-Times
Although Illinois’ legislative leaders say they are close, there still is no final agreement on a plan designed to fix the state’s underfunded pension systems.
With the clock ticking toward a possible showdown vote in the House on Tuesday, leaders in the House and Senate are expected to continue talking through the holiday weekend in an attempt to iron out the wrinkles in a problem that has vexed the General Assembly for years.
While many of the parameters of a pension deal have been established, disagreement remains over a proposal to reduce the automatic cost-of-living adjustments given to retirees.
“There’s still no agreement at this point,” said Rikeesha Phelon, spokeswoman for Senate President John Cullerton, D-Chicago.
Retirees currently receive a 3 percent compounded COLA each year. To reduce the size of the state’s unfunded liability, the leaders are considering a plan that would lower the raises to half the rate of inflation.
They also are mulling a plan that would only apply a COLA to a part of their annual pension payout.
The potential change is seen as a linchpin in attempts to reduce the unfunded liability of the state’s five pension systems by an estimated $150 billion over the next three decades. The goal is to leave the systems fully funded by 2043.
Read more in our daily News Update...
From the Chicago Sun-Times
Although Illinois’ legislative leaders say they are close, there still is no final agreement on a plan designed to fix the state’s underfunded pension systems.
With the clock ticking toward a possible showdown vote in the House on Tuesday, leaders in the House and Senate are expected to continue talking through the holiday weekend in an attempt to iron out the wrinkles in a problem that has vexed the General Assembly for years.
While many of the parameters of a pension deal have been established, disagreement remains over a proposal to reduce the automatic cost-of-living adjustments given to retirees.
“There’s still no agreement at this point,” said Rikeesha Phelon, spokeswoman for Senate President John Cullerton, D-Chicago.
Retirees currently receive a 3 percent compounded COLA each year. To reduce the size of the state’s unfunded liability, the leaders are considering a plan that would lower the raises to half the rate of inflation.
They also are mulling a plan that would only apply a COLA to a part of their annual pension payout.
The potential change is seen as a linchpin in attempts to reduce the unfunded liability of the state’s five pension systems by an estimated $150 billion over the next three decades. The goal is to leave the systems fully funded by 2043.
Read more in our daily News Update...