Illinois Lawmakers Reach A Deal On Pension Reform
By Chuck Sudo in News on Nov 27, 2013 8:00PM
Illinois four top legislative leaders have reached a tentative framework on solving Illinois’ nearly $100 million underfunded pension mess Wednesday. House Minority Leader Jim Durkin (R-Western Springs) said he, House Speaker Michael Madigan, Senate President John Cullerton and state Rep. Tom Cross will now “speak to the membership and try to secure votes.”
No details of the deal have been released. Madigan’s staff is working on drafting an “explanatory memo” for lawmakers and will send them details of the bill Friday. The Sun-Times quoted Madigan as saying, “everybody came to the negotiating table in good faith and laid out their concerns.” Those include Cullerton’s wish to minimize reductions in pension benefits while also focusing on bottom-line savings favored by Republicans.
Crain’s Chicago Business’ Greg Hinz reports the deal will save Illinois taxpayers $160 million over three decades and will come from the current 3 percent cost-of-living increase currently enjoyed by retirees. Hinz also reports there will be a change to the retirement age. Madigan said provisions have been included in the bill that would hopefully help the legislation to withstand the legal challenge that will surely follow.
It’s unknown at this time what effect the deal will have on Chicago’s underfunded pensions. A balloon payment of $600 million to fund Chicago police and firefighters’ pensions is looming in 2015 that could have reverberations on the city budget without some form of pension relief. Mayor Rahm Emanuel has been lobbying for a pension plan that would kick the payment further down the road and require a series of property tax increases beginning in 2018.
Lawmakers have been asked to return to Springfield for a meeting on the deal 11 a.m. Dec. 3.