The Illinois House approved a pension reform plan on Thursday aimed at reducing and delaying cost-of-living increases for retirees, its third such stripped-down proposal geared toward chipping away at solving the state's nearly $100 billion pension problem.
The bill comes out of a laborious process where lawmakers are addressing the pension problem piece by piece instead of a total overhaul at once. Thursday's bill proposes no cost-of-living increases can be taken until retirees reach 67 or five years after retirement and applies COLAs only to the first $25,000 of an annual pension.
House members voted 66-50 in favor of the measure, presented by Democratic state Rep. Elaine Nekritz, who has been at the heart of pension talks.
Illinois has the nation's worst pension problem and ever-growing pension debt because for years lawmakers either skipped or shorted payments.
Lawmakers have been taking overlapping approaches in trying to solve the problem and numerous overhaul plans are pending. The piecemeal approach has come under scrutiny by several lawmakers who've been frustrated and called it directionless.
But House Speaker Michael Madigan, who is the sponsor of the bill, defended it on Thursday saying the House had approved three pieces that are significant reforms.
"We all recognize the enormity of this problem," he told lawmakers before the vote. "The significance of the problem is not the issue. The issue is how do we react to the problem, how do we move legislation that will solve the problem, and do it in such a way that we have a reasonable chance of approval in the Illinois court system."
Last week the House approved two others. The first caps the salary that pension benefits are based on at the limit set for Social Security, currently $113,000 a year. The other amendment pushes back the retirement age by different increments based on age group. For example, younger employees will see a later retirement age.
Some critics have called the bill unconstitutional.
Thursday, June 13 2013 1:45 PM EDT2013-06-13 17:45:09 GMT
Even a fire hydrant is feeling the Blackhawks spirit, especially after Chicago's midnight victory over the Boston Bruins at the United Center in triple overtime.
Even a fire hydrant is feeling the Blackhawks spirit, especially after Chicago's midnight victory over the Boston Bruins at the United Center in triple overtime.
Wednesday, June 12 2013 9:55 PM EDT2013-06-13 01:55:01 GMT
Forecasters say hot weather could give way to violent storms across parts of Illinois and are warning residents to be prepared for strong winds, hail and even tornadoes.
Forecasters say hot weather could give way to violent storms across parts of Illinois and are warning residents to be prepared for strong winds, hail and even tornadoes.
Tuesday, June 18 2013 2:56 PM EDT2013-06-18 18:56:25 GMT
After collecting tens of thousands of dollars for themselves on Wednesday, members of the General Assembly plan to kick the can of public employee pension reform down the road for at least one more month.
After collecting tens of thousands of dollars for themselves on Wednesday, members of the General Assembly plan to kick the can of public employee pension reform down the road for at least one more month.
Human rights advocate Marianne Elliot wrote "Zen under Fire," a powerful memoir about her experience as a U.N. peacekeeper in war-torn Afghanistan. She also does yoga to de-stress in her everyday life.
Human rights advocate Marianne Elliot wrote "Zen under Fire," a powerful memoir about her experience as a U.N. peacekeeper in war-torn Afghanistan. She also does yoga to de-stress in her everyday life.
Monday, June 17 2013 3:09 PM EDT2013-06-17 19:09:21 GMT
On the first day of deliberation, the jury hearing former Chicago alderman Ambrosio Medrano's trial found him guilty of bribery. He could face up to five years in prison.
On the first day of deliberation, the jury hearing former Chicago alderman Ambrosio Medrano's trial found him guilty of bribery. He could face up to five years in prison.
Monday, June 17 2013 2:44 PM EDT2013-06-17 18:44:33 GMT
A spokeswoman for Gov. Pat Quinn says he has fully backed the tough pension proposal supported by the Illinois House and has "fought hard" to get it passed.
A spokeswoman for Gov. Pat Quinn says he has fully backed the tough pension proposal supported by the Illinois House and has "fought hard" to get it passed.
Monday, June 17 2013 12:03 PM EDT2013-06-17 16:03:54 GMT
Carla Oglesby is accused of using fake contracts to scam hundreds of thousands of dollars to herself and her friends, from local vendors. She was first arrested nearly three years ago.
Carla Oglesby is accused of using fake contracts to scam hundreds of thousands of dollars to herself and her friends, from local vendors. She was first arrested nearly three years ago.
Friday, June 14 2013 9:36 PM EDT2013-06-15 01:36:02 GMT
Lawyers for Jesse Jackson Jr. assert in a court filing that the former Illinois congressman's mental health may worsen if he is given a lengthy prison sentence.
Lawyers for Jesse Jackson Jr. assert in a court filing that the former Illinois congressman's mental health may worsen if he is given a lengthy prison sentence.
Friday, June 14 2013 8:46 PM EDT2013-06-15 00:46:35 GMT
Political observers will be closely watching as New Jersey Gov. Chris Christie participates in a discussion at the Clinton Global Initiative in Chicago.
Political observers will be closely watching as New Jersey Gov. Chris Christie participates in a discussion at the Clinton Global Initiative in Chicago.
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