By the end of Thursday, Illinois lawmakers may have two pension solutions to consider: one passed by each chamber. The state’s plans are underfunded by an estimated $100 billion.
The one championed by Senate President John Cullerton (D-Chicago) boasts union support and a choice for pension system members between a higher cost-of-living adjustment and staying in the state health insurance plan.
He says if workers wanted to keep their health care access, they can, in effect, pay for it by taking a three-year delay, when they retire, in their compounded COLA, and pay an additional 2 percent in employee contributions as they work.
While the bill was negotiated with unions, at least one group has a problem: the Illinois Retired Teachers Association, which is not a union, sees the choice as an unconstitutional reduction of benefits.
A house-passed plan kicks in later, actually anticipating a court challenge.
Sb 2404 has passed the senate executive committee.