State Lawmakers May Delay Pension Reform

By aaroncynic in News on Nov 7, 2011 8:40PM

Next week marks the last week of the fall legislative session and state lawmakers are putting various items off towards the spring, including pension reform. While the issue has been debated hotly all year, WBEZ reports the Illinois General Assembly may wait until spring 2012 to vote on Senate Bill 512, which requires state workers to pay more into their retirement funds.

With primaries quickly approaching, lawmakers may want to avoid a polarizing vote before their constituents head to the polls. Tyrone Fahner, president of the Civic Committee of the Commercial Club of Chicago, a lobbying group which has been trying to increase workers’ pension contributions, said “This all comes from basic cowardice.”

At present, the pension system takes on a bigger share of the state budget each year because Illinois has been paying less into the system. When other state programs were suffering budget crunches, smaller payments were made into worker retirement funds so other programs could survive.

Delaying voting on the issue will cost the state even more money. The Chicago News Cooperative reports the Civic Committee estimates that a delay into spring could cost an extra $7 billion in unfinanced liabilities and interest. Speaker Mike Madigan could call for a vote, but he has not expressed any sign that he may do so. Illinois lawmakers will meet for three days this week.