SPRINGFIELD - The Illinois House Democrats are said to now have Republican Leader Tom Cross on board with a pension direction change, rather than a long term "fix". The deal is scheduled to be heard in committee at the Capitol at noon. Illinois Watchdog reports that on the docket will be Senate Bill 1673, with a new amendment. It is much of the framework of House Bill 6258, with a few tweaks:
- Pause COLAs for all workers and retirees for six years
- Once COLAs resume, they apply only to the first $25k of pensions
- No COLAs will be awarded until age 67
- Increase employee contributions by 1 percent of salary for 2 years (total of 2 percent increase)
- Cap pensionable salary at the Social Security wage base or their current salary, whichever is higher
- Create a new 30-year payment plan to get to 100 percent funding
- Provide the same funding guarantee as in HB6258
- Continue using pension obligation note revenue to pay down pension debt when the notes are paid off
The cost shift and cash balance plans are not included. More to come ...
