News

Big Move Could Be Necessary If Plan B Is Needed

Big Move Could Be Necessary If Plan B Is Needed

A state lawmaker is looking at Plan B, in case the pension restructuring enacted last year is struck down in court.

The state must find a way to keep pension benefits from growing, because it will never be able to come up with the money to fulfill its promises, says State Sen. Matt Murphy (R-Palatine).  So if the court says the new law is unconstitutional?

“I think you’re gonna have to look at a constitutional amendment, because you’re not coming up with $100 billion,” he said.

At issue would be the clause in the Constitution saying that a state pension cannot be diminished or impaired.  An amendment might specify that that applies to the accrual rate, but not to cost-of-living adjustments or other escalators.

How would that go?  “Well, it’d be fascinating to see.  I’m sure the unions would put a little bit of money in on trying to defeat such an initiative,” he said.

A lawsuit challenging the pension law will be heard this year in Springfield, and it is expected to quickly rise to the Illinois Supreme Court.  The law cuts the automatic 3 percent raise that pension beneficiaries receive, and it raises the retirement age for enrolled workers age 45 and younger.

 

 

Recent Headlines

in Local

State Attorney General Warns Against Immigration Scammers

Fresh
immigration reform

Lisa Madigan's office warns those applying for deportation relief to be on the lookout for scammers posing as Notarios.

in Local

Cullerton Helps Veterans Transition to Civilian Life

Fresh
Tom Cullerton

HJR 91 helps returning veterans transition back to civilian life.

in Local

New Lincoln Exhibit Opens Today at Presidental Museum & Library

Fresh
Lincoln Presidential Museum

New exhibit celebrates 150th anniversary of Lincoln's death and 10th anniversary of ALPLM.

in Local

Court Date Set to Determine State Retiree Healthcare Refunds

state_capitol_3

The state will refund money to about 75,000 state retirees who've been paying a portion of their pensions for health insurance.

in Local

Durbin: President Did Right Thing on Immigration

immigration

Durbin tells Illinois colleagues to take action, not complain