The Illinois House approved a pension reform plan on Thursday aimed at reducing and delaying cost-of-living increases for retirees, its third such stripped-down proposal geared toward chipping away at solving the state's nearly $100 billion pension problem.
The bill comes out of a laborious process where lawmakers are addressing the pension problem piece by piece instead of a total overhaul at once. Thursday's bill proposes no cost-of-living increases can be taken until retirees reach 67 or five years after retirement and applies COLAs only to the first $25,000 of an annual pension.
House members voted 66-50 in favor of the measure, presented by Democratic state Rep. Elaine Nekritz, who has been at the heart of pension talks.
Illinois has the nation's worst pension problem and ever-growing pension debt because for years lawmakers either skipped or shorted payments.
Lawmakers have been taking overlapping approaches in trying to solve the problem and numerous overhaul plans are pending. The piecemeal approach has come under scrutiny by several lawmakers who've been frustrated and called it directionless.
But House Speaker Michael Madigan, who is the sponsor of the bill, defended it on Thursday saying the House had approved three pieces that are significant reforms.
"We all recognize the enormity of this problem," he told lawmakers before the vote. "The significance of the problem is not the issue. The issue is how do we react to the problem, how do we move legislation that will solve the problem, and do it in such a way that we have a reasonable chance of approval in the Illinois court system."
Last week the House approved two others. The first caps the salary that pension benefits are based on at the limit set for Social Security, currently $113,000 a year. The other amendment pushes back the retirement age by different increments based on age group. For example, younger employees will see a later retirement age.
Some critics have called the bill unconstitutional.
Thursday, May 16 2013 9:49 PM EDT2013-05-17 01:49:53 GMT
Mayor Emanuel will celebrate two years in office by unveiling "Elevate Chicago" on Thursday, a series of construction projects to improve Navy Pier and McCormick Place.
Mayor Emanuel will celebrate two years in office by unveiling "Elevate Chicago" on Thursday, a series of construction projects to improve Navy Pier and McCormick Place.
Monday, February 25 2013 1:41 PM EST2013-02-25 18:41:37 GMT
Just as Oscar host Seth MacFarlane set his sights on a variety of targets with a mixture of hits and misses, the motion picture academy spread the gold around to a varied slate of films.
Just as Oscar host Seth MacFarlane set his sights on a variety of targets with a mixture of hits and misses, the motion picture academy spread the gold around to a varied slate of films.
Anthony Weiner's run for a renaissance is officially on.
Anthony Weiner knows there may be a lot of New Yorkers who would never consider voting for him again, but he says he's running for mayor because he wants to bring his ideas to the fore - and win.
Wednesday, May 22 2013 6:45 PM EDT2013-05-22 22:45:07 GMT
Illinois public schools that teach sex education will have to include information about contraception and sexually transmitted diseases instead of a curriculum focused on abstinence.
Illinois public schools that teach sex education will have to include information about contraception and sexually transmitted diseases instead of a curriculum focused on abstinence.
Wednesday, May 22 2013 8:53 AM EDT2013-05-22 12:53:15 GMT
Illinois' congressional delegation has asked President Obama to add 16 Illinois counties to the list of those eligible to receive disaster aid after last month's flooding.
Illinois' congressional delegation has asked President Obama to add 16 Illinois counties to the list of those eligible to receive disaster aid after last month's flooding.
Monday, May 20 2013 5:52 PM EDT2013-05-20 21:52:14 GMT
Gov. Pat Quinn said Illinois lawmakers have a chance to make history on two fronts this month by approving a plan to fix the state's decades-old pension crisis and legalizing same-sex marriage.
Gov. Pat Quinn said Illinois lawmakers have a chance to make history on two fronts this month by approving a plan to fix the state's decades-old pension crisis and legalizing same-sex marriage.
Monday, May 20 2013 3:05 PM EDT2013-05-20 19:05:27 GMT
Former White House social secretary Desiree Rogers has been appointed to head the board of a government-supported nonprofit that promotes Chicago as a tourism and convention destination.
Former White House social secretary Desiree Rogers has been appointed to head the board of a government-supported nonprofit that promotes Chicago as a tourism and convention destination.
Republicans call them "scandals." Democrats call them "fishing expeditions." Whatever the case, the Obama administration finds itself trying to fix three big problems this week. FOX's Bret Baier reports.
Republicans call them "scandals." Democrats call them "fishing expeditions." Whatever the case, the Obama administration finds itself trying to fix three big problems this week. FOX's Bret Baier reports.
