State Rep. Lou Lang (D-Skokie) is proposing a pension solution that makes permanent the 2011 income tax increase that was supposed to expire. The additional 2 percentage points would help shore up the state’s five pension systems, which carry an unfunded liability approaching $100 billion.
Lang knows the idea will be unpopular, but he says it’s necessary. “I think most legislators in this building … will tell you we need the dollars. And the taxpayers of the state of Illinois, even those who would be the angriest about this, will tell you we need the cash.”
Lang said other pension proposals out there are unlikely to pass a constitutional test. He said plans which present choices for pensioners reflect a reduction of benefits, which is unconstitutional.
Other features of the Lang plan include:
-Retirement age 67
-50-year ramp for 80 percent funding
-Increase employee contribution by 3 percent of annual income
-Cost shift to local schools, phased in a half-percent of local payroll annually
-Five systems – including judges’ – included.
(Posted 11:35 am 02/20/13, Illinois Radio Network, by Ted Maguire)
-Retirement age 67
-50-year ramp for 80 percent funding
-Increase employee contribution by 3 percent of annual income
-Cost shift to local schools, phased in a half-percent of local payroll annually
-Five systems – including judges’ – included.
(Posted 11:35 am 02/20/13, Illinois Radio Network, by Ted Maguire)