Watchblog: New pension plan to get Monday hearing

By   /   January 6, 2013  /   No Comments

By Benjamin Yount | Illinois Watchdog

 

SPRINGFIELD  —  Weekened meetings between Gov. Pat Quinn and the four legislative leaders did not produce a grand-bargain on pension, but there is a new plan.

This is what we are hearing at the statehouse:

The House Personnel and Pensions hearing set for Monday morning at 10 am is expected to be moved. It now is expected to be set for noon in Room 114 of the Capitol.

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.

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