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Madigan pension reform package clears hurdle

May 2, 2013
Michael J. Madigan

Michael J. Madigan

The Illinois House Personnel and Pensions Committee passed a pension reform plan put forth by Speaker Michael J. Madigan by a 9-1 vote, clearing the way for the pension reform bill to be called before the full House today.

Madigan’s plan calls for employees to pay 2 percent more of salary toward their retirement plans. Workers would only be able to collect pension on a salary up to $110,000, which would increase by 0.5 percent of the inflation rate per year.

“It will bring solvency and stability to the four systems,” Madigan said of his amendment, which would affect the State Universities Retirement System and three others but leave out the Judges’ Retirement System of Illinois to avoid a conflict should the reforms face legal challenges.

“I commend the nine members of the House committee who today voted to address the biggest challenge facing our state,” said Illinois Gov. Pat Quinn through a statement released Wednesday. “Illinois’ economy will not fully recover until the General Assembly passes this comprehensive pension reform and sends the bill to my desk.”