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

Springfield Micro-Lending Fund Gives $120K in 1st 2 months

City of Springfield

The city of Springfield’s new micro-lending program has given out a total of $120,000 in loans to small business owners…

in Local

U of I Business Incubator has NSF Grants for Female and Minority Entrepreneurs

u of i research park

The people trying to turn ideas into commerce at the University of Illinois have a $100,000 grant from the National Science Foundation in a program called AWARE.

in Local

SAA Hopes to Restore Lincoln-Era Piano with Crowdfunding Help

lincoln piano

A crowdfunding campaign hopes to raise the final $7,500 needed to bring a possibly 180-year piano back to playable condition.

in Local

Foul Play Not Suspected in Death of Southern Illinois Woman

jeannie schuur

Authorities in southern Illinois say foul play is not suspected in the death of a 22-year-old Murphysboro woman whose body…

in Local

Prosecutors: Man Eyed Targets After Brother Shot

corey morgan

Investigators say a Chicago man suspected in the fatal shooting of a 9-year-old boy went looking for targets after his brother was killed during a months-long gang feud.