Illinois Gov. Rauner Unveils Pension Overhaul Proposal

Illinois Gov. Bruce Rauner on Wednesday unveiled his own pension reform proposal, which contains significant changes for public workers of all stripes, as well as municipalities.

[Read a full summary of the overhaul at the bottom of this post.]

Among other things, the bill contains benefit reductions – leading some to question whether this proposal would hold up in court.

From the Sun-Times:

The lengthy bill — all 500 pages of it — would cut retirement benefits for police officers, firefighters and public teachers. It would also give local governments a way to file for bankruptcy “as a last resort” after a review or the declaration of a fiscal emergency.

[…]

Rauner’s bill gives Cook County the option of choosing the pension plan introduced by Preckwinkle, or a consideration-based plan that prompts employees to choose between a bargaining change, a reduced cost-of-living adjustment benefit or agreeing that all future salary increases are not included in pension benefit calculations.

[…]

A closer look at the governor’s proposal raises questions over its constitutionality, since it appears to offer workers the choice between one diminished benefit or another.

Madigan spokesman Steve Brown characterized the pension proposal as “a hodge podge.”

“I don’t know how it stacks up to the court opinion,” Brown said, referencing an Illinois Supreme Court decision that earlier this year struck down a landmark pension reform compromise plan. “We’ll have to take a look.”

Read a summary of the overhaul below.

Photo by Tricia Scully via Flickr CC License