Capitol - Your Illinois News Radar » Pension roundup
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Pension roundup

Thursday, Feb 28, 2013

* As I told you yesterday, House Speaker Michael Madigan is holding yet another “weekly order of business” today, but this time on pension reform. He has four amendments, two each to HB1154 and HB1165.

Keep a close eye on our live session coverage post for updates.

The SJ-R summarizes the Madigan amendments

* End cost-of-living adjustments to pension benefits for anyone hired before Jan. 1, 2011. Retirees now receive a 3 percent compounded COLA annually. Other pension proposals have called for limiting COLAs, but not eliminating them.

* Stipulate that COLAs would be eliminated until the pension systems achieve an 80 percent funding level. The five state-funded pension systems now have a funding level of about 39 percent.

* Raise the retirement age at which a person could collect full pension benefits to 67.

* Increase working employees’ contributions to their pensions by 5 percent of salary, in addition to what employees already pay into the system. Other pension plans have called for higher employee contributions, but in the range of 2 percent or 3 percent.

* AP

They include elimination of pension cost-of-living increases, an apparently extreme measure that Madigan put forth as a serious potential remedy because “there’s a huge problem,” spokesman Steve Brown said.

“Everything’s serious,” said Brown, “and it’s just, keep working on the issue until we can find a majority of the Legislature willing to pass a bill and send it to the governor.”

* Meanwhile, as we’ve already discussed, Rep. Elaine Nekritz and House GOP Leader Tom Cross have introduced a retooled pension reform plan…

But don’t expect any immediate budget savings

Cross and Nekritz said their legislation could save the state $2 billion a year. But it wouldn’t take hold immediately and help lawmakers with the budget they’re working to craft now.

“We still have enormous fiscal pressures,” Nekritz said.

* Senate President Cullerton is OK with the new language, but still wants his own plan to be part of the solution

Illinois Senate President John Cullerton is on board with the newest Illinois House pension solution plan.

Spokeswoman Rikeesha Phelon says the Chicago Democrat plans to amend his proposed pension fix with language from a bipartisan House plan announced Wednesday. But Cullerton would retain other provisions he says would ensure the plan’s constitutionality.

* Related…

* Speaker gears up test votes on pension proposals

* New pension reform plan surfaces in Springfield

* House GOP OK with new cost-shift on pensions

* Editorial: Illinois stands to run off road

- Posted by Rich Miller        

  1. - Mittuns - Thursday, Feb 28, 13 @ 10:16 am:

    Any pension concessions/agreement in lieu of the tentative new contract?

  2. - Grandson of Man - Thursday, Feb 28, 13 @ 10:20 am:

    Though I certainly can’t and won’t speak for other state workers in the pension systems, if I have to, I don’t mind paying a little more into my pension and health insurance. I do mind having to work to age 67 to collect a full pension, so I am against this particular amendment. I would rather be able to retire earlier and get a smaller full pension than have to work to age 67.

  3. - walkinfool - Thursday, Feb 28, 13 @ 10:24 am:

    You wanted “bi-partisan”? You got it with Nekritz/Cross.

    Read it and weep, then get over it.

    Painful, and “unfair” to both sides, as it simply must be. These are courageous legislators!

    Politically destructive to both sides as well — probably more destructive to the Dems, which might be historically appropriate.

  4. - wordslinger - Thursday, Feb 28, 13 @ 10:31 am:

    Nothing on health-care costs for retirees? If that’s off the table it’s a win already.

  5. - Grandson of Man - Thursday, Feb 28, 13 @ 10:47 am:

    I thought Madigan was against raising the retirement age. I’m sorry to see that he filed this amendment. I’d rather pay more into my pension and retire earlier.

  6. - Jack - Thursday, Feb 28, 13 @ 10:47 am:

    I am okay with the Cross / Nekritz proposal, but would like to see that COLA limit a bit higher. Maybe $30k.

  7. - huggybunny - Thursday, Feb 28, 13 @ 10:52 am:

    @walkingfool 10:24am
    Read it and weep, then get over it

    I wouldn’t do your happy dance just yet-I’m going to wait until the Supremes do their thing and then depending on what they “vote” cry tears of joy or sorrow. Long road ahead of us on the pension mess, this won’t be over in a week.

  8. - wordslinger - Thursday, Feb 28, 13 @ 10:57 am:

    –If our GA did what they did to a private pension, they would all be in jail.–

    Lot of corporate execs in jail for shorting private pensions?

    All they have to do is go into bankruptcy court, dump their obligations, and come out clean on the other side?

  9. - Both Sides Now - Thursday, Feb 28, 13 @ 11:00 am:

    We keep hearing about the effects on those “hired before January 1, 2011″; what happens to those hired after January 1, 2011?

  10. - DanL60 - Thursday, Feb 28, 13 @ 11:03 am:

    Transferring responsibility, at least in part, back to local boards-where does that stand?

  11. - DisgustedOne - Thursday, Feb 28, 13 @ 11:05 am:

    Few expect anything moral or ethically stellar from the corporate world. It’s clear that they need more and more money. We do have slightly different expectations from our elected (although in this state, we’ve come to settle and expect so much less). When our elected are dealing with everyone’s tax dollars and contributions, I think most people don’t expect to get robbed blind. If we’ve come to accept robber baron mentality from our legislators, why have so many of our governors gone to jail? The point is, they ARE different from corporate execs in the private sector. Do execs take any oaths?

  12. - retired and fed up - Thursday, Feb 28, 13 @ 11:08 am:

    Those hired after 1/1/11 are Tier 2.

  13. - Retiree - Thursday, Feb 28, 13 @ 11:19 am:

    I made my contributions and met my side of the contract- I’ll see them in court.

  14. - pensioner - Thursday, Feb 28, 13 @ 11:19 am:


  15. - Downstater - Thursday, Feb 28, 13 @ 11:39 am:

    Sounds like a sensible solution for the citizens on Illinois.

  16. - titan - Thursday, Feb 28, 13 @ 11:57 am:

    To the extent that the changes are retroactive, they will be tough to get through court. To the extent that they’er not, they don’t help the state’s bottom line much.

  17. - Mouthy - Thursday, Feb 28, 13 @ 12:06 pm:

    I read the amendment to increase the total employee funding to a total of 5% not an increase of 5% to the current funding level. Did I read it wrong?

  18. - Scottish - Thursday, Feb 28, 13 @ 12:27 pm:

    @Mouthy - I read it that way at first also, but upon further review it specifies the 5% is in addition to any contributions already required in other Sections.

  19. - Mouthy - Thursday, Feb 28, 13 @ 12:35 pm:

    Thanks Scottish.

  20. - mokenavince - Thursday, Feb 28, 13 @ 12:56 pm:

    I would bet nothing gets done and we punt til next session.These guys get paid either way.

  21. - Stones - Thursday, Feb 28, 13 @ 1:09 pm:

    It seems unconstitutional to eliminate the COLA’s. We’ll see how the Court’s rule if this passes.

    I would prefer to increase my contribution if that would be a solution to the problem.

  22. - fairR - Thursday, Feb 28, 13 @ 1:44 pm:

    It is not fair to break a contract or change the rules in the middle of the game…should we honor the contracts with the corporate world or quite paying our bills because we can’t afford it…contracts are sacred…with that said changes should be made with this in mind

  23. - Demoralized - Thursday, Feb 28, 13 @ 1:56 pm:

    Let’s see . . . no raises for a decade, and now they want to essentially cut my salary by 5% by making me pay that much more for my pension, not give me any COLAs when I retire, and hold my retirement until I’m 67. I’ve been preparing my resume to leave my current job. No reason to stay if this happens. I’ll go somewhere where I can invest my own money and determine my own retirement age. Of course I’m going to sue the pants off of them to fight for what’s rightfully mine first.

  24. - chuck - Thursday, Feb 28, 13 @ 2:12 pm:

    Here in Chicago we paid for our cola and they cant take away what we paid for.Go to you tube and watch Eric Maddar.Also you can sue the State for not paying their share into the pension fund.

  25. - rusty618 - Thursday, Feb 28, 13 @ 2:16 pm:

    It looks like all of Madigan’s bills failed miserably!

  26. - Ronbo - Thursday, Feb 28, 13 @ 2:39 pm:

    HB 1154, Amendment 1 (eliminates COLAs) — failed with only 2 in favor, 66 opposed
    HB 1154, Amendment 2 (eliminates COLAs unless system is 80% funded) — failed with only 5 in favor, 62 opposed
    HB 1165, Amendment 1 (increases retirement ages to 67) — failed with only 1 in favor, 66 opposed
    HB 1166, Amendment 1 (to increase employee contributions by 5%) — failed with only 3 in favor, 61 opposed

  27. - Meaningless - Thursday, Feb 28, 13 @ 3:29 pm:

    When will the discussion of increasing revenue (besides higher employee contributions) and reamortizing the pension debt ramp (Ralph Martire) be put on the table in a serious manner?

  28. - funny guy - Thursday, Feb 28, 13 @ 3:30 pm:

    They are basing the payback on a 30 year time horizon–which is not necessary–only to make it look worse than it is and justify more draconian measures. Mayor Daley’s Commission report used a 50 year time frame.

  29. - Fiercely Independent - Thursday, Feb 28, 13 @ 3:31 pm:

    Why isn’t there more discussion regarding the low rate of return that Illinois received on its investments last year? I believe it was somewhere around 1.4%. A quick Google search shows that Louisiana received a return of 14.3%. Wisconsin was in double digits, as was North and South Carolina.

  30. - funny guy - Thursday, Feb 28, 13 @ 3:32 pm:

    Sue in federal court based on a 5th amendment takings argument (and the state constitution)–keep it away from the Illinois Supreme Court

  31. - 47th Ward - Thursday, Feb 28, 13 @ 4:16 pm:

    These amendments are basically Ty Fahner’s plan to solve the pension issue. Since neither Tom Cross nor anyone else was willing to put that garbage into bill form, Madigan had to do the dirty work for them.

    So we should be calling these the Fahner amendments. For a refresher:

    Now maybe we can move on to some solutions that might win majorities.

  32. - Katiedid - Thursday, Feb 28, 13 @ 4:30 pm:

    Fiercely Independent - Those funds have a calendar year fiscal year, while the Illinois’ state funds’ fiscal year runs from July 1 to June 30. If you look at those other funds’ returns for calendar year 2011, they’re pretty flat, too.

  33. - Fiercely Independent - Thursday, Feb 28, 13 @ 4:37 pm:

    Thanks for clarifying, Katiedid.

  34. - PublicServant - Thursday, Feb 28, 13 @ 4:48 pm:

    Who were the legislators that voted for any one of the proposed amendments? We retirees have a lot of time on our hands, enough to actively volunteer/campaign against those unprincipled reprobates.

  35. - wordslinger - Thursday, Feb 28, 13 @ 4:57 pm:

    Still, 47, love the idea of making the Mushrooms take votes and explain them. Let your light shine!

    The dirty little secret, for many years, is that any backroom dealing by Madigan was as much to protect GOP lawmakers as Dems. Madigan has been carrying Cross’ water for years, protecting his pals and making life easy for him with staff, office space, etc.

    I’m sure the railrats of the “Third Chamber” don’t like this new development of transparency, but who cares? I’m not paying them. I think it’s awesome.

    Put the issues on the floor, debate and vote. Sounds like democracy.

  36. - 47th Ward - Thursday, Feb 28, 13 @ 5:02 pm:

    ===Sounds like democracy.===

    Amen brother. More please.

  37. - chuck - Thursday, Feb 28, 13 @ 5:15 pm:

    WORDSLINGER-Where did you pick up mushrooms Miaron Kulas

  38. - Just The Way It Is One - Thursday, Feb 28, 13 @ 7:14 pm:

    Good to see Bipartisanship alive and well again. And the best thing is they’re all talkin’, and per J. Cullerton’s actions, open to some tinkerin’. In the long run, the short run signs are all good. Let’s keep this momentum goin’, Folks…

  39. - I know labor - Friday, Mar 1, 13 @ 11:41 am:


    I think you do make valid points in a previous post. It is certainly a gray area. If the numbers of 1and 2 percent are the correct negotiated numbers…. I don’t like it….it stings… But it is not devastating to me, and hopefully others. I must eat crow and agree… That yes, if we have pay, then having AFSCME and Henry Bayer negotiate is the best option.

  40. - pensioner - Friday, Mar 1, 13 @ 1:49 pm:

    Google Overview of Retiree Health Insurance Lawsuits July 26 2012 for Maag case. May be additional plaintiffs now.

Sorry, comments for this post are now closed.

* Despite Rauner praise, Illinois hasn't sent any data to Crosscheck since last year
* There are upsides to having your own billionaire
* Yesterday's stories

Visit our advertisers...






* Money Machines: Billionaires Rain Cash — With S.....
* How Rauner, Pritzker pension plans compare..
* Bernard Schoenburg: Bourne, Clark clash over mi.....
* Election hacking leaves Illinois voters uneasy..
* Demmer joins Rauner to pledge support for term .....
* OUR VIEW: State must prioritize voter data secu.....
* Incumbents hold big fundraising leads in centra.....
* Aurora trying to 'make the best' of new.....
* Rauner visits Ottawa to raise support for term .....
* During La Salle County stop, Bruce Rauner dares.....

* Tollway plans temporary lane closures for Interstate 88 work
* PETA seeks records on 54 stingray deaths at Brookfield Zoo
* Chicago-area man exonerated after serving 10 years in prison
* Illinois man stabs himself after jury’s guilty verdict
* State offers conference for minority-owned businesses
* Man stabs himself moments after jury’s guilty verdict
* Probation handed man in 2010 death of violent roommate
* Ex-priest ordered indefinitely to facility for sex offenders
* Hundreds displaced by blaze at condo complex near Chicago
* AP News Guide: Chicago police releasing videos more quickly

* Incumbents hold big fundraising leads in central Illinois legislative races
* Springfield man wins Illinois State Police logo contest
* Rauner 'deeply troubled' by Trump's Helsinki comments
* Rauner signs bill to ease physician assistant hiring
* Bill taking Illinois out of voter registration system vetoed
* Rauner signs laws to improve Quincy veterans' home
* Rauner: President Trump should blame Russians for hacking
* Rauner signs laws to speed up Quincy veterans' home construction
* U of I paying alum $7,500 to halt sales of Chief Illiniwek T-shirt
* Rauner's campaign spent nearly $8 million last quarter. Pritzker's spent more than double that.

* New Pritzker investment fund takes in $1.8 billion
* Could this device save your life?
* Everything you ever wanted to know about the famed white stallions called Lipizzans
* Socially responsible ETFs now come with a twist
* After Durbin slam, Chicago nonprofit promises to probe handling of migrant kids

* Attempted bank robbery reported in Des Plaines
* Comcast drops out of bidding war for Twenty-First Century Fox
* Putin calls summit a success; warns Trump opponents hampering progress
* Trump’s says Biden is his 2020 ‘dream’ Democratic opponent
* High-pressure steam leak in Manhattan; no injuries reported
* Lollapalooza — Tips on staying cool, hydrated and avoiding sunburn
* 9-year-old boy missing from Indiana in extreme danger, prompting Amber Alert
* Jason Mraz — Part of the Inclusion Revolution at Special Olympics concert
* Burglar strikes 4 homes this week on North Side
* Ford F-150 Raptor: One Menacing Machine

* Man who opened Kane County home to fellow church member then wound up killing him in altercation gets probation
* Millennials are dying of alcohol-related liver disease at increasing rates
* Comcast dropping out of 21st Century Fox bidding war
* $5 billion Lincoln Yards development could bring 5,000 homes and 23,000 jobs to North Side
* Chance the Rapper announces purchase of Chicagoist website on newly-released song
* 5 things to do this weekend in Chicago
* 14 teams, 14 questions: Big Ten talking points heading into media days
* ESPYs review: Danica Patrick's spinout, Aaron Rodgers' mustache, Jim Kelly's words and more
* Mother of two girls slain near Washington Park: 'Somebody saw something. Nobody’s gonna say anything'

» Money Machines: Billionaires Rain Cash — With Strings Attached?
» July 18, 2018 - Full Show
» Fast Food ‘No Poaching’ Clauses; Trade Wars & Farmers; Small Town ‘Brain Gain’
» 'Carnaval’ Festival To Highlight Latinx Stories In Theater
» The Cook County Sheriff Is Launching A Podcast On Opioid Addiction
» July 17, 2018 - Full Show
» Rauner Vetos 'Crosscheck' Ban — Illinois' Participation Already On Hold
» Rauner: Trump Should Be Holding Russians Accountable
» Suit: Chicago Should Refund Drivers Hit With Expensive Tickets
» Vallas Returns Campaign Cash From Controversial Donor Tied To CPS Scandal

* Bernard Schoenburg: Bourne, Clark clash over missed votes
* Our View: Access to Narcan key to combating addiction
* Our View: Dorsey right choice to lead SIU
* Incumbents hold big fundraising leads in central Illinois legislative races
* Springfield man wins Illinois State Police logo contest
* Rauner 'deeply troubled' by Trump's Helsinki comments
* Guest View: As politicians duke it out, we must remember that most children just want to go home
* Byron York: Trump's approach doesn't work for the Trump-Russia probe
* Marc Thiessen: Trump isn't the first president to embarrass America by cozying up to Putin
* Catherine Rampell: Why do Republicans hate consumers?

* Bicyclist injured after swerving into car in Cahokia
* Centralia man shot, but police say he refuses to give info on who may have fired gun
* What happened to O’Fallon man in Arkansas ‘will never be known for sure,’ police say
* Now hiring in Decatur and Macon County. Recently posted employment opportunities for job seekers
* Lincoln nursing home cited for alleged preventable death
* Meet soldiers, civilians
* 'It's really cool'
* Woodrow pleads not guilty to charges
* Decatur and Macon County neighbors: Obituaries published today
* Police Report

* Zuckerberg clarifies statements on treatment of Holocaust deniers
* No one harmed in South Elgin garage fires
* 'Devastated' Gold Pyramid House owners want to rebuild after fire
* Feder: Chance the Rapper to relaunch Chicagoist
* Broken air conditioning on heels of schedule changes steams BNSF riders

* Foster, Kinzinger, Lipinski react to Trump...
* Letter: What is Rep. Kinzinger doing?
* Illinois pols criticize Trump's contro...
* Growing number in GOP call for Trump to fi...
* The Latest: Schumer wants hearings on what...
* GOP rep.: Trump was wrong 'in a major ...
* New Emmett Till investigation just another...
* Slowik: Some unopposed candidates have big...
* Letter: Appoint commission on Russia hacking
* Liberal groups protest Trump but mostly st...

* DCFS investigating abuse allegations at Ch......
* Kavanaugh's role in Bush-era detainee ......
* Detained migrants allege they were forced ......
* Senators send letter to President for deta......
* Clueless: Leading Dem Durbin Compares Ille......

* Democrat Savior Ocasio-Cortez Is Actually ......
* Clarkson: Mayslake exhibit teaches of stat......
* 'A Disaster for Our Country'...
* Ocasio-Cortez Splitting The Democratic Par......
* Get Loud Now makes it easy to mail a postc......

* Thorner/Nelson: Conservatives to gather in St. Louis September 16-18
* Ben Joravsky: Rahm makes a joke out of Quinn's term-limit push, but voters could have last laugh
* A Little Girl's Daddy Is Never Coming Home
* ICEE vs. ICE
* 5 Must Sees on Chicago’s Fringe Theater Scene
* Special Deals For Teachers
* Latin Fusion Music, Belly Dancers, Drum Circle, And Exotic Food: All At Argyle Night Market
* Mario Metoyer, Age 57, Missing; May Be In Area Of People's Church
* Trump “beating” Lincoln? Well, he wasn’t ever going to take Illinois vote
* Grabber.

* Nursing Home Violations for Second Quarter 2018
* Illinois Department of Human Rights Releases Important New Guidebook for Housing Providers
* Illinois State Fire Marshal announces $2.2 million in grants for fire safety
* Gov. Rauner vetoes SB 2368
* Governor takes bill action

* San Diego Comic-Con 2018: all the trailers, updates, and pictures from fandom’s biggest event
* Robin gets dark in the first trailer for DC’s live-action show Titans
* DC’s streaming service will be a one-stop shop for its TV shows, movies, and comics
* On its 50th anniversary, Intel is forced to do less with Moore
* HTC exits Indian smartphone market
* Microsoft says Teams is now at 'feature parity' with Skype for Business
* You need a VPN to stay safe online, and we’ve got one for life that’s just $34

* The worst managers in White Sox history
* White Sox Minor League Update: July 18, 2018
* Former Pioneer inks with White Sox, assigned to Winston-Salem
* Diamondbacks 'stayed engaged,' fell short on Manny Machado ...
* Drew Pomeranz sharp in rehab assignment, giving Boston Red Sox a po...
* Everything that's gone right this year in the White Sox ...
* Five burning questions for the second half of the MLB season

Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0

Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller