State legislators introduce new employee pension fix
2 months, 2 weeks ago
Bill calls for higher employee contributions, limits on retirement cost-of-living adjustments and a hybrid retirement plan for recently hired educators
A new pension reform bill was introduced Wednesday that calls for higher employee contributions, limits on retirement cost-of-living adjustments and a hybrid retirement plan for recently hired educators.
Backed by House Republican Leader Tom Cross of Oswego, Rep. Elaine Nekritz, D-Northbrook and others, the plan was touted as the latest, best hope for the state to resolve its pension problems.
“This proposal has a lot of momentum,” Nekritz said at a Statehouse news conference.
The bill is similar to legislation drafted by Nekritz and Sen. Daniel Biss, D-Evanston, late last year, but which wasn’t passed by either chamber.
Employees would contribute 2 percent more toward their pensions, and retirement cost-of-living adjustments would be limited to the first $20,000 or $25,000 of retirement income, depending on whether a retiree qualified for Social Security. It also raises the retirement age on a sliding scale.- See more at: http://www.sj-r.com/breaking/x930805782/State-legislators-introduce-new-employee-pension-fix#sthash.LBBaEQ4v.dpuf