Illinois House Republican Leader Tom Cross (R‐Oswego) and Rep. Elaine Nekritz (D-Northbrook) introduced pension reform legislation Feb. 27, which would save taxpayers $30 billion and the pension system for government workers, according to a press release.
House Bill 3411 includes many components of bills filed previously, but also includes several new ideas, including:
- Allowing cost of living adjustments (COLA) to the first $25,000 of the employees’ pension, which would take effect when the employee turns 67 or five years after they retire, whichever comes first;
- Increasing retirement age from one to five years, depending on current age;
- Increasing employee contributions by 2 percent over two years;
- Capping pensionable salary;
- Changing Tier 2 COLA benefits in GARS to match COLA provisions in other systems;
- Creating Tier 3 defined benefit/defined contribution plan for SURS and TRS members who start work after January 1, 2014, funded by local employers and employees;
- A funding guarantee that allows pension systems to take state to court over nonpayment;
- $1 billion in additional funding for systems starting in 2020 until systems are 100 percent funded
HB 3411 FACT SHEET (PDF)
RELATED VIDEO: Tom Cross and Elaine Nekritz Press Conference (Pension Reform Bill)
