Statehouse
10:34 am
Tue December 3, 2013

Madigan: Pension Plans Are "Too Rich"

Illinois' House Speaker told a bipartisan legislative committee that the state's pension systems are ``just too rich'' to be afforded in the future.  
Madigan is a Chicago Democrat and the state's longest-serving House Speaker. He says Tuesday that a $160 billion reform proposal was designed to keep long-term low-income workers in mind.

He called the plan a balanced approach, ``not just a reduction in benefits.''  
Leaders announced the compromise last week. A vote is expected Tuesday afternoon.  
The proposal pushes back workers' retirement age on a sliding scale, has a funding guarantee, adds a 401(k)-style option and reduces employee contributions.  

It'd also replace the current 3 percent annual cost-of-living increases. Retirees would continue to receive that rate up to a certain amount of annuity payments, based on years of employment.