* 11:58 am - House Speaker Michael Madigan has filed a pension reform proposal. I’m still going through it, but I’m sure our pension experts out there can help figure out what’s in it. Click here to read the amendment (which was tacked onto Senate President Cullerton’s SB1) and make sure to comment below.
* 12:17 pm - I was given a quick briefing on the bill. Here are some of the highlights, but overall it’s somewhat pretty close to the Nekritz/Cross bill…
* The Tier 3 and cost shift language from Nekritz/Cross are out;
* COLA change is a “bit less onerous.” Instead of basing compounded COLA on only the first $25K of salary at retirement, this would provide a formula of $1k per year of service. So, if somebody worked 30 years, then the first $30K would qualify for compounded COLAs;
* The proposal’s Social Security wage cap is slightly lower than Nekritz/Cross. The cap is tied to the Tier 2 level. So, now the cap is $109k, which is a few grand lower and will grow more slowly;
* Retirement age, employee contribution levels are the same as Nekritz/Cross;
* State funding guarantee language is stronger than Nekritz/Cross - basically the same commitment as made to the bond houses.