News

Rauner Advocates 401(k)-Style Pensions

Rauner Advocates 401(k)-Style Pensions

Bruce Rauner believes pensions for state workers should be moved to defined contribution plans, which he admits will initially cost more to the state.

The Republican nominee for governor has advocated switching public pensions to 401(k)-style benefits for work past a certain date. While he hasn’t released the details of his plan, he admits there will be some up-front costs due to moving away from the current system, but he doesn’t believe that’s a deal breaker.

“That’s one of the problems we have. Everybody gets wrapped up in only one tax rate or only one budget, and we should think long-term, strategically, about our fiscal health overall,” Rauner said.

Rauner has said his plan would pay out benefits accrued by current workers and those who have already retired. That would include the 3 percent compounded annual escalator, which would be altered under the pension reform law passed last year.

 

Recent Headlines

in Local

Fuel Leak Closes Road Near New Berlin

Fresh
policetape2

No one was injured in the crash.

in Local

Salaita Sues U of I Over Rescinded Job Offer

university illinois

A professor who lost a University of Illinois job offer over his profane, anti-Israel Twitter messages has sued.

in Local

Springfield Man Shot Near King and Stuart

gun

Another Springfield man has been shot, but is expected to be okay.

in Local

Bill Would Prohibit Legislative Leaders From Holding Outside Employment

state_capitol_3

If it looks like a conflict, that's bad enough for State Rep. Scott Drury (D-Highwood).