Quinn Signs Pension Reform Bill Into Law
By Chuck Sudo in News on Dec 5, 2013 11:00PM
Gov. Pat Quinn quietly signed into law Senate Bill 1, the pension reform bill hammered out by Illinois’ legislative leaders, this afternoon, nearly 18 months after he proclaimed he was “put on this earth” to solve the state’s nearly $100 billion underfunded pension problem. Quinn’s action sets the stage for a near-certain legal challenge of the new law from organized labor, who called it “attempted pension theft."
Quinn, in a statement, praised Springfield lawmakers for hammering out a deal and said the “Illinois is moving forward.”
“This is a serious solution to address the most dire fiscal challenge of our time … (w)orking together, we will continue to build a brighter future for the people of Illinois.”
The new law calls for a hike in the retirement age for state workers currently age 45 or younger; a reduction in cost of living allowances using a formula based on how long a worker held their job and only toward a portion of their pension; prohibiting state pension systems from using pension funds to pay healthcare costs; removing all pension matters from collective bargaining talks except pension pickups; reduce employee salary contributions to their pensions by 1 percent; and for the state to contribute $364 million in funding in 2019 and $1 billion every year thereafter until 2045 or until the pensions are fully funded. The cuts are expected to save the state $160 million over the next 30 years.
One of the politicians Quinn thanked was Illinois House Speaker Michael Madigan who expressed characteristic humility for his part in reaching the deal. (Emphasis ours.)
“The bill would not have passed without me. I was convinced that standing fast for substantial savings, clear intent and an end to unaffordable annual raises would result in a sound plan that will meet all constitutional challenges," Speaker Madigan said.
Typical for the state’s Democratic power broker, Madigan may have engaged in some hog trading behind the scenes to get the bill passed. In These Times reports Madigan demanded support for the pension bill from the sponsors of the recently passed marriage equality law in exchange for bringing that bill to the House floor. Capitol Fax editor and state political insider Rich Miller reviewed the votes for Madigan’s pension reform bill in May and last week’s vote against the major sponsors of the gay marriage law and found that three representatives who voted against Madigan’s bill in May voted in favor of the new pension reform law.
One of those who switched was Rep. Lou Lang, a top member of leadership. He basically had no choice. The other two were Reps. Kelly Cassidy and Ann Williams.
Both Cassidy and Williams disputed Miller’s allegation they switched their votes on the pension bill in order to get the support needed for the marriage equality law; Cassidy called it “patent crap.”
The We Are One Illinois labor coalition promised to take their opposition to the bill to the courts in a statement to media.
“Governor Pat Quinn has given hundreds of thousands of working and retired teachers, nurses, police, caregivers, first responders and others no alternative but to seek justice for retirement security through the judicial system. Contrary to his belief, every Illinois citizen loses today.“It didn’t have to be this way. Bipartisan majorities in both chambers could have passed a much fairer, legal, negotiated solution - with real, substantial savings - in Senate Bill 2404.
“Instead, leading politicians and their followers chose to violate their oaths of office, trample on the Illinois Constitution, and willfully ignore the plain letter of the law. In abandoning their constitutional duties, they’ve voted to slash the retirement benefits of senior citizens and working families by one-third or more.
“Senate Bill 1 is attempted pension theft, and it’s illegal. Once overturned, its purported savings will evaporate, and the state’s finances and pension systems will be left in worse shape.
“Our coalition has been consistently in contact with our attorneys, and today we directed them to prepare to file suit. We will challenge SB 1 as violating the constitution and ask for a stay of the legislation's implementation pending a ruling on its constitutionality.”