CHICAGO, Ill. (IRN) – The president of the Illinois Senate is out with his proposal to reform state employees’ pensions.
Senate President John J. Cullerton (D-Chicago) says if state workers will agree to have a simple cost of living adjustment, rather than a compounded cost of living adjustment, the state would commit to funding pensions at a certain level to assure the pension plans are solvent. But Cullerton says this is something to which workers would have to agree.
“The bottom line is that employees must have a real opportunity to accept or reject the General Assembly’s offer in order (for the reform) to pass constitutional muster. With that said, the General Assembly may build (in) incentives to encourage employees to accept the offer,” he said.
Cullerton says this change would save the state a quarter million per employee lifetime. He says the plan under consideration in the Illinois House is not constitutional because it requires state workers either to pay more or accept less.
Cullerton unveiled his proposal Monday in Chicago.
The governor convened a task force on pensions, which is due to release its report next month.