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

Police Impersonators Tie Up, Gag Victim South of Springfield

illinois state police

State Police are trying to find another round of police impersonators.

in Local

108,000 Illinoisans Eligible for Insurance Rebates

insurance

The federal government says more than 108,000 Illinois health insurance customers will benefit from more than $8 million in refunds.

in Local

Mine Simulator Under Construction in Harrisburg

mine

Coal mining is still a big deal in Illinois, and Terry Bruce says there's really no end in sight.

in Local

Quinn Signs Flood Fighting Measure

IEPA-logo

A newly signed law is aimed at fighting the effects of flooding around Illinois.

in Local

Guilty Plea in Drug Induced Homicide

scales justice

Springfield man faces 30 years in drug death