Madigan files pension reform proposal

This just in… Madigan files pension reform proposal

Tuesday, Apr 30, 2013

* 11:58 am - House Speaker Michael Madigan has filed a pension reform proposal. I’m still going through it, but I’m sure our pension experts out there can help figure out what’s in it. Click here to read the amendment (which was tacked onto Senate President Cullerton’s SB1) and make sure to comment below.
* 12:17 pm - I was given a quick briefing on the bill. Here are some of the highlights, but overall it’s somewhat pretty close to the Nekritz/Cross bill…

* The Tier 3 and cost shift language from Nekritz/Cross are out;

* COLA change is a “bit less onerous.” Instead of basing compounded COLA on only the first $25K of salary at retirement, this would provide a formula of $1k per year of service. So, if somebody worked 30 years, then the first $30K would qualify for compounded COLAs;

* The proposal’s Social Security wage cap is slightly lower than Nekritz/Cross. The cap is tied to the Tier 2 level. So, now the cap is $109k, which is a few grand lower and will grow more slowly;

* Retirement age, employee contribution levels are the same as Nekritz/Cross;

* State funding guarantee language is stronger than Nekritz/Cross - basically the same commitment as made to the bond houses.

- Posted by Rich Miller         

79 Comments » - 47th Ward - Tuesday, Apr 30, 13 @ 12:08 pm: The preamble reads like a horror movie script. I don’t think I’ve seen the fiscal problems spelled out as clearly as this. It’s breathtaking. - Norseman - Tuesday, Apr 30, 13 @ 12:14 pm: The preamble looks like the first brief in the defense of the bill’s constitutionality. - Anonymous - Tuesday, Apr 30, 13 @ 12:26 pm: Nice how the Chicken Little preamble conveniently fails to mention anything about pension holidays. Don’t have to read far to see that it is completely unconstitutional. I’m betting the Supreme Court ain’t baiting on this. - Colossus - Tuesday, Apr 30, 13 @ 12:31 pm: I thought you guys were exaggerating, but WOW. I kept thinking the list of problems would stop as I got to the end of each page, but I’m 8 pages in and only now seeing it let up. - Marie - Tuesday, Apr 30, 13 @ 12:32 pm: they can add - inadequate funding by the Illinois House and Senate to the preamble - wordslinger - Tuesday, Apr 30, 13 @ 12:32 pm: The preamble would sober up the town drunk. The most concise, informed assessment of the state’s fiscal condition and recent history that you’ll find anywhere. click here to see the rest of the conversation