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Civic groups blast union-backed Tier Two pension bill

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Illinois

* Civic organizations sent a letter to the governor and the four tops about a bill to reform Tier 2 pensions…

Dear Governor Pritzker, President Harmon, Speaker Welch, Leader Curran, and Leader McCombie:

As we enter the final days of session, our collection of civic organizations is concerned about a final push for pension legislation that could undo much of the progress Illinois has made on slowing down pension liability growth.

Tier 2 pension legislation billed as “Tier 2 Safe Harbor Fixes” has surfaced in SB1937, House Amendment 1, sponsored by Rep. Jay Hoffman. Other amendments could emerge before the scheduled May 31 close of session.

The proposed amendments go far beyond the Governor’s pension proposal as introduced in the FY2026 budget. They would be detrimental to the long-term fiscal stability and credit rating of the State of Illinois, contrary to claims their proponents have made. Moreover, proposals covering the City of Chicago and other municipalities have received very little scrutiny, exacerbating the risk to taxpayers and the state budget if adopted.

We are writing to express support for the caution and care Gov. Pritzker and the legislative leaders have applied before proceeding with any pension legislation during the spring session. However, the eleventh-hour filing of massive pension bills and the possibility they could be acted on swiftly compels us to reiterate the importance of care and diligence in consideration of any pension legislation.

Before implementation of any pension bill, actuarial estimates of the cost should be undertaken and distributed to all stakeholders. In addition, any pension legislation that is passed is permanent and benefits may not be reduced ever moving forward. So, a quick passage of a bill could severely impact the long-term fiscal condition of the state.

Too much is at stake. There is no legal imperative to act ahead of the close of session. And more information is needed before the state responsibly can take action to address any shortfalls in the existing Tier 2 program.

We’ve written about this issue in two recent commentary pieces that highlight our concerns:

• Civic leaders: State lawmakers still have time to adopt a measured fix for Tier 2
pension problem
• David Greising: With state lawmakers in the final stretch, transit and pension
proposals involve high stakes

We know that you are committed to protecting the fiscal progress our state has made over the past few years and understand the importance of protecting Illinois’ credit rating. If there is a chance that legislation could move toward a vote, we respectfully request a meeting with you in your Springfield offices before the legislature takes any action.

We greatly appreciate the work that you are doing and the challenges of the current fiscal situation that confronts the state. We are on hand to work with you in addressing the state’s pension challenges in ways that ultimately inure to the benefit of the state, employees and retirees, and all the people of Illinois.

Many thanks for your consideration.

Sincerely,

Derek Douglas, Civic Committee of the Commercial Club of Chicago
David Greising, Better Government Association
Joe Ferguson, Civic Federation
Jack Lavin, Chicagoland Chamber of Commerce
Lou Sandoval, Illinois Chamber of Commerce

posted by Rich Miller
Wednesday, May 28, 25 @ 5:51 pm

Comments

Thank you for this letter. The public employees unions are so far out of step with reality here it’s deeply disappointing. As a Democrat, I hope the Governor rejects this fiscal
bomb taxpayers would get stuck paying for.

Comment by Here here Wednesday, May 28, 25 @ 6:29 pm
Wow, Tim, you sound worked up. Maybe sit back and chill a bit?

Comment by low level Wednesday, May 28, 25 @ 7:32 pm
=== Hopefully a few years from now when our final child graduates from college, we can sell our house and move out of Illinois. ===

So, the education system is good enough for you to linger, but you’re not happy paying for it?

Comment by Pot calling kettle Wednesday, May 28, 25 @ 8:50 pm
==It can be frustrating, living in the worst governed state in the country==

If you live in Texas, why are you commenting on an Illinois politics blog?

Comment by low level Wednesday, May 28, 25 @ 8:51 pm
==In addition, any pension legislation that is passed is permanent and benefits may not be reduced ever moving forward==

So they are finally admitting even a constitutional amendment could not be applied retroactively?

Comment by Big Dipper Wednesday, May 28, 25 @ 9:51 pm
Let’s see if the governor keeps his word and vetoes this bill if it passes.

Comment by Tim Thursday, May 29, 25 @ 6:58 am
=As a Democrat, I hope the Governor rejects this fiscal
bomb taxpayers would get stuck paying for=

Is that you, Pat Quinn?

Comment by Leatherneck Thursday, May 29, 25 @ 7:46 am
Not surprising that Jack Lavin was among the signees. Considering he worked under a Governor who hated state employees long before most of us ever heard of Bruce Rauner, and then another Governor who claimed he was “put on earth to fix pensions.”

Comment by Leatherneck Thursday, May 29, 25 @ 7:49 am
Tier 1 is gone, kids. Gotta get over it. There are other ways to recoup some of that money.

In your next contract negotiation, demand Tier 2 members get a much larger share of any salary increase. Tell your unions to charge higher dues for Tier 1 members. Neither of those options require legislation nor tax increases.

Comment by City Zen Thursday, May 29, 25 @ 8:42 am
=In your next contract negotiation, demand Tier 2 members get a much larger share of any salary increase. Tell your unions to charge higher dues for Tier 1 members=

I would love to be a fly on the wall during those negotiation sessions.

Comment by Leatherneck Thursday, May 29, 25 @ 8:45 am
The problem was not the original pensions. It was the state “borrowing” money by not paying the yearly matching funds, year after year after year. Tier2 pensions are so bad that many well qualified new teachers choose teaching positions in other states, causing a teacher shortage in Illinois. Pay the pensions first, then do the other budget items.

Comment by Dupage Thursday, May 29, 25 @ 12:17 pm
===The problem was not the original pensions. It was the state “borrowing” money ===

The state shorted the systems because it didn’t want to pay the high pricetag for existing pensions.

So, it was both.

Comment by Rich Miller Thursday, May 29, 25 @ 12:29 pm