Politics & Government

Cross Sponsors Bipartisan Pension Reform Proposal

The House Republican joined Democrat Elaine Nekritz at a press conference Wednesday to introduce new legislation.

House Republican Leader Tom Cross (R-Oswego) joined Northbrook Democrat Elaine Nekritz at a Wednesday morning press conference to unveil a new bill they say is the answer to Illinois' state pension woes.

“This legislation is the most complete, fairest bill we could come up with that will solve our pension crisis. When it passes and becomes law, it will also loosen the pension squeeze on our state budget,” Cross said of House Bill 3411 in a statement. “We’ve filed and supported many bills and concepts along the way, but we believe this is the answer.” 

The bill includes the following new provisions for Tier I state employees, or those hired before 2011:

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  • Cost-of-living adjustments apply only to the first $25,000 of the employees’ pension
    • That limit is reduced to the first $20,000 for employees eligible for Social Security
  • COLAs are delayed until the employee turns 67 or five years after retirement, whichever comes first
    • This applies to all employees and retirees who are currently receiving COLAs
  • Retirement age is increased by:
    • No increase for employees age 45 and older
    • One year for employees age 40 to 44
    • Three years for employees age 35 to 39
    • Five years for employees age 34 and younger
  • Employees would be required to contribute more toward their pensions by:
    • One percent starting July 1, 2013
    • Two percent starting July 1, 2014
  • Pensionable salary – the amount of salary that counts toward a pension – is limited to the higher of the Social Security wage base or the participant’s salary when the legislation becomes law

 Click here to read the full text of the bill.

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