* Rep. Elaine Nekrtitz’s spokesman has responded to the We Are One coalition’s research which shows that their pension reform plan saves more than the House’s plan off the unfunded liability…
This new report suggests more significant savings from SB 2404 than SB 1 if you calculate in health care savings from employee choices. But there are a couple of important points.
Senate Bill 1 makes important changes to how Illinois calculates and funds its pension systems according to actuarial science — changes intended to ensure we pay into these systems what is required to meet our obligations. These actuarially appropriate changes are not included in Senate Bill 2404.
Assuming the health care numbers cited are correct, unfunded liability savings are not the only important calculation here. Senate Bill 1 saves a proven $180 billion off the state’s 30-year pension spending — far more than anything saved under SB 2404. And it also provides certainty, predictability and a sufficient solution for a massive problem where SB 2404 falls far short. We remain hopeful this will be considered and SB 1 approved before session ends tomorrow.
So far, no response to the union coalition’s other claim, that the House bill will force teachers into Social Security, driving up costs.
*** UPDATE *** Here’s the Nekritz spokesperson answer on the Social Security question…
Simple answer is it’s an issue that’s not immediate — probably 10-12 years down the road — and could be addressed later. It shouldn’t stand in the way of a real solution like SB 1.