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The 3 year pension itch
Friday, May 27, 2011 - Posted by Advertising Department [The following is a paid advertisement.] From all of the testimony in the House pensions committee yesterday, the biggest concern appeared to be a 3 year nightmare scenario for pensioners and politicians. We do know that as employees retire or choose to leave tier 1, the costs will go up and cause more people to leave and further increase costs until no one is left. The same thing will happen in tier 2, until everyone has been forced out of the defined benefit system. The worst part is, this won’t happen all at once. Teachers and public employees will have to watch costs rise and make tough decisions every 3 years. Each time a painful reminder of what their lawmaker has done to their future. There are still many unknowns. The federal government is already investigating the second pension tier created for new hires who don’t receive Social Security. This bill will fall under the same scrutiny. Witnesses also testified that someone who works half of their career under the old system and half their career under the new system will receive a final benefit that is less than halfway between the 2. That decrease would seem to create a clear violation of the state’s constitution.
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The Illinois Grid Modernization legislation (SB 1652) has unprecedented consumer protections in place.
Friday, May 27, 2011 - Posted by Advertising Department [The following is a paid advertisement.] The Illinois Grid Modernization legislation (SB 1652) has unprecedented consumer protections in place. • Eliminates automatic rate increases: Creates an annual process for the ICC and intervenors to review utilities’ costs. The utilities must show that investments were made prudently or they are disallowed. No rates are set until 8-month review is complete. • Includes enhanced performance standards for utilities with financial penalties if targets are not reached. The tougher metrics include reliability and customer service goals that will hold utilities accountable. • Lowers the utility profits-level. • Mandates that if the average residential rate increase exceeds 2.5% annually by 2014, the program terminates. • Sunsets the entire law in 2017 requiring the utilities to reapply to the General Assembly to continue the program. • Caps utility earnings with any dollars exceeding the cap (during a particularly hot summer for example) being returned to customers. The grid modernization bill addresses stakeholder concerns about consumer protections. Other states are on the move, and we need to get moving building the energy infrastructure the 21st century is demanding. The time to act is now.
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