Illinois House has another pension porposal to consider
As members of the Illinois House prepare for another all-day hearing – this one tomorrow on pensions – a new pension proposal is floating. Backed by members of the four legislative caucuses, House Minority Leader Tom Cross (R-Oswego) describes this plan as a hybrid.
“What this does going forward takes us in a little different direction from a DB to a combination of a ‘defined benefit’ plan coupled with a ‘defined contribution’ plan,” Cross said. “You’ve heard about “cash balance” plans; this is a different variation on that..”
State Rep. Elaine Nekritz (D-Northbrook), co-sponsoring the plan with Cross, said, “The funding guarantee … allows the state pension systems, acting in their fiduciary obligation, to go to court to enforce an actuarily required number,” as opposed to the General Assembly setting some less reliable number and/or skipping payments.
Features include higher contributions, an increased retirement age, and COLA restrictions. Supporters say they believe it can pass a constitutional test, but Cross acknowledges anything which passes will wind up in court anyway. Cross said he did not know how the plan would fit into tomorrow’s pension debate.
(posted 2/27/13 by Illinois Radio Network/Christian Spain)