pension

Pensions
1:17 am
Mon November 24, 2014

Ears Turn To Supreme Court For Next Pensions Cue

Gov. Pat Quinn is surrounded by legislative leaders and lawmakers who helped write the pension plan, as he signs it into law.
Credit Harvey Tillis / Illinois Information Service

Although one court has tossed out Illinois’ mega pension overhaul, state leaders are likely to wait on another legal opinion before deciding what to do next.

There’s no question -- the Sangamon County Circuit Court judge’s ruling is meaningful. But Attorney General Lisa Madigan’s office is appealing to the state Supreme Court.

Madigan has said it makes sense for lawmakers to wait to hear from those justices.

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Pensions
4:54 am
Mon September 29, 2014

Pensions: Vexing Illinois Politicians Since 1917

The tally in the Illinois House on the pension overhaul law.
Credit Amanda Vinicky

The underfunding of the state's pensions have grabbed headlines the past several years, and finally reached the political tipping point late last year when legislators passed an overhaul of the systems. It's a recent response to a very old problem.

It was Gov. Pat Quinn who signed the law that reduces state workers' and most public school teachers' pensions -- a controversial plan that's at the center of a lawsuit.

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Pensions
11:31 pm
Sun September 7, 2014

Moody's: Illinois' "Daunting Pension Challenges" Faced By Its Local Governments Too

Sen. Daniel Biss, D-Evanston
Credit ILGA.gov

A new report from Moody's investors service says Illinois still faces "daunting pension challenges" despite a 2013 law intended to curb the state's pension costs. So do its cities. 

The Moody's report lays it out starkly: Illinois' pension burden is significantly higher than other states. And yet Illinois' legal framework gives "very limited" flexibility for dealing with that.

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Pensions
4:58 pm
Wed May 14, 2014

Hold Placed On Illinois Pension Law

  A judge has blocked Illinois pension overhaul from taking effect next month. It's a temporary victory for government employees who say the law is unconstitutional.

State employees, teachers and university workers were supposed to begin seeing changes to their retirement plans in June. It's part of a sweeping pension overhaul passed late last year.

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Pensions
6:20 am
Wed May 14, 2014

Decision Could Come Today On Pension Delay

The vote in the Illinois House on the 2013 pension overhaul law.
Credit Amanda Vinicky

A hearing set for this afternoon could determine if some, or even all, of Illinois' new pension law will be suspended.

The pension law is supposed to take effect next month.

The We Are One coalition of unions wants a hold put on the entire law, until a broader lawsuit seeking to have it declared unconstitutional is resolved.

Anders Lindall is a spokesman for AFSCME, the state's largest public employees union. He says once someone retires, that can't be reversed.

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Pensions
12:49 am
Tue May 13, 2014

Deal Reached On University Pensions

Gov. Pat Quinn signs the pension overhaul, known sometimes as Senate Bill 1, into law in December, 2013.
Credit Harvey Tillis / Illinois Information Service

Even as the "We Are One" broad coalition of unions seeks to prevent any of the pension law from taking effect next month, a new agreement would prevent parts of it from being implemented.

It mostly affects university and community college employees nearing the end of their careers.

The deal, between the State Universities Annuitants Association and the attorney general, could put a stop to a surge of retirements at Illinois' public universities.

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Court Challenge Ahead
7:12 pm
Thu December 5, 2013

Pension Overhaul Signed Into Law

After the General Assembly passed the pension bill, Gov. Pat Quinn called a statehouse press conference, calling it a 'victory."
Credit Amanda Vinicky

  A major overhaul of Illinois' pensions is now law. Gov. Pat Quinn held a private bill-signing ceremony this afternoon in Chicago. A court challenge seeking to stop it from taking effect is certain.

The new law will cut state workers' and public school teachers' retirement benefits.

It also raises the retirement age; employees younger than 46 will have to work up to five years longer before they can retire. The savings from those changes are intended to rid Illinois of a long-festering budget issue: an unfunded pension liability that's grown to about $100 billion.

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Statehouse
11:59 am
Thu December 5, 2013

CapitolView: Pension Reform Analysis

WUIS State Week host, Bill Wheelhouse, guests on the latest CapitolView regarding the pension reform passed in Illinois.

Pensions
7:10 am
Tue December 3, 2013

How Today's Pension Vote Will Go, Procedure-Wise

The pension conference committee meets in Chicago over the summer.
Credit Amanda Vinicky

This morning, legislators on a special, bipartisan panel formed to reach a compromise on Illinois' pension situation will once again meet in Springfield. Already, most of the committee's members have signed off on a deal.  Beyond that, the measure's fate is uncertain.

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Pensions
6:21 am
Tue December 3, 2013

Strange Bedfellows Could Kill Leaders' Pension Deal

A Christmas tree and other holiday decorations bring a festive spirit to the capitol on Monday -- today the statehouse will be bustling during last-minute negotiations ahead of a landmark pension vote.
Credit Brian Mackey/WUIS

Illinois legislators will be asked today (12/3) to take what many say could be the most important vote of their careers. They've been called back to Springfield to take up a measure that would drastically alter the state's retirement plans. Doing so would have obvious ramifications for state employees, teachers and university workers whose pensions are at stake. But the impact of a vote is far more widespread. What happens could also affect everything from the state's credit rating and Illinois' next budget, to the 2014 elections. The outcome is anything but certain.

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Pensions
2:58 am
Tue December 3, 2013

Republican Hopefuls Split On Pension Overhaul

Sen. Kirk Dillard, R-Hinsdale, says the Senate should gather all of its members, and spend a couple of days hearing from experts, as well as from state workers whose pensions would be affected by pension changes.
Credit dillard.senategop.org

The four Republicans running for Illinois governor are taking diverging stances on the pension measure that's bringing the General Assembly back to Springfield tomorrow. The package drafted by the legislative leaders would cut state workers', teachers' and university employees' retirement benefits.

Whether there's enough support for the leaders' plan to pass is uncertain, but it will get Sen. Bill Brady's vote.

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Pensions
4:10 pm
Fri November 29, 2013

How Leaders Want To Overhaul Illinois Pensions

Details are out on what the leaders of Illinois' General Assembly want to do to the state's retirement systems. They've released an outline of their deal.

After years of debate about what to do about the $100 billion dollars of unfunded liability Illinois has racked up for its pension systems, legislative leaders announced on Wednesday they had agreed to a deal. But they were tight-lipped about what all it involved.

That information has now been spelled out in a one-page overview, a memo passed out to members of the House and Senate.

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Pension Plan Awaits Gov. Action
6:26 am
Tue November 12, 2013

A Possible Pension Legal Test

House Speaker Michael Madigan talks with reporters about pension prospects in May, at the end of the spring legislative session -- as the year nears an end, the General Assembly has yet to pass an overhaul of the state's retirement systems. A recent measure approved to cut a local pension system's costs could be a legal test case, though. It could also be a framework for Chicago's other underfunded retirement funds.
Credit Amanda Vinicky

  Another legislative session has gone by without a solution in place to bring down the amount Illinois owes the state's retirement systems. Given the clamoring from the governor, business leaders and credit rating agencies for lawmakers to do something about it, legislators mentioned relatively little about pensions before adjourning from their fall veto session last week ... which may well be a sign that something is afoot; there's talk of legislators returning before the year's end to deal with pensions.

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Pensions
3:22 pm
Mon November 11, 2013

Legislative Leaders Take The Reins On Pensions

Senate Republican Leader Christine Radogno, of Lemont, says the General Assembly's two top Democrats and Republicans are meeting on pensions; she says it's easier to reach a consensus with fewer people at the table.
Credit ILGA.gov

 Overhauling Illinois' pension systems is no longer in the hands of the special committee of legislators that met all summer. How to reduce the state’s $100 billion of long-term pension debt is now in the hands of the General Assembly's four leaders.

All summer long, state employees and retirees concerned about their retirement benefits had their eyes on a bipartisan conference committee, but insiders say even the key panel members are no longer part of discussions.

The General Assembly's four leaders (who are really always in charge) are taking the reins.

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Statehouse
9:32 am
Tue November 5, 2013

State's Mayors Want Pension Overhaul

Loves Park Mayor Darryl Lindberg
Credit Loves Park City Website

The new head of the Illinois Municipal League wants lawmakers to remain committed to a pension overhaul. Loves Park Mayor Darryl Lindberg was recently named president of the organization. Lindberg says the group has not put its support behind any one plan, but is paying attention to work being done by the bipartisan pension panel.

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Same-Sex Marriage Vote Possible
6:22 am
Mon November 4, 2013

Heavy Veto Session Agenda

Rep. Elaine Nekritz, a Democrat from Northbrook, is a member of the conference committee tasked with negotiating a pension deal.
Credit ILGA.gov

  Illinois legislators are scheduled to finish out their veto session this week. Their back-loaded agenda ranges from dealing with budget matters to social issues.

The first week of the veto session late last month went by with little of substance accomplished.

But what the General Assembly didn't touch then is back now.

Like tax packages designed to keep companies, like Archer Daniels Midland, headquartered in Illinois.

It also appears the sponsor of stalled same-sex marriage legislation is leaning toward calling it for a vote in the House.

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Pensions
6:15 pm
Thu October 24, 2013

Quinn Not Ready To Talk Taxes

Credit Amanda Vinicky/WUIS

Though he supported Illinois' income tax hike in the past, Governor Pat Quinn is so far unwilling to take a stance on whether it should expire.

This fiscal year, Illinois is putting $6.8 billion toward pensions. An amount that's more than covered by how much money the state took in from a higher income tax rate -- the increase alone is projected to pull in almost $8 billion this year.

But that raises the question: how will Illinois function when the income tax revenues begin to decrease?

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Pensions And Pay
6:13 am
Wed October 23, 2013

Turning The Tables: Legislator Files To Cut Quinn's Budget

Rep. David Harris, R-Arlington Heights, says "the chief executive has attacked the legislature, which shows how dysfunctional we are. If they haven't done their job, then they shouldn't get the full appropriation that we did, and I suggest that that appropriation be cut."
Credit ILGA.gov

  Several months after Illinois Gov. Pat Quinn vetoed legislators' salaries from the state budget -- one lawmaker wants to turn the tables on him.

Gov. Quinn says lawmakers shouldn't be paid until they overhaul the state's pensions. A judge rejected that move and the governor's appeal is still pending before the state Supreme Court, so lawmakers are getting their paychecks.

Nevertheless, legislators are still offended by Quinn's "attack," as Rep. David Harris, R - Arlington Heights, describes it.

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Veto Session 2013
7:50 am
Mon October 21, 2013

Preview: Fall Veto Session

Advocates pass out fliers promoting it during the Pride Parade in Chicago over the summer; despite an intense campaign to legalize same sex marriage in Illinois, the legislation's sponsor remains tight-lipped about whether he has the 60 votes needed for it to pass in the House.
Credit Amanda Vinicky

For the first time since a brief special session in July,legislators will begin making their way en masse to Springfield this week, for the fall veto session. The agenda before them is relatively light. The General Assembly will likely debate some budget matters. And there's a hearing on a new type of health care coverage for retired state employees. Amanda Vinicky previews what else is ahead.

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Pension Overhaul
5:07 pm
Tue October 15, 2013

Quinn Responds To Pension Absence, Begins Reach Out

Gov. Pat Quinn speaks to leading Democrats in September as he seeks the state party's endorsement in his campaign for re-election; critics say the governor has been concerned about politics, rather than policy, when it comes to pensions -- for example by stripping legislators of their salaries as punishment for not passing a bill, even as he was absent from negotiations.
Credit Brian Mackey/WUIS

Governor Pat Quinn went months without meeting with members of the special legislative committee formed to draft a new pension plan, but this month he has begun to reach out.

It was Quinn's idea to form a conference committee, to bridge differences between the House and Senate over how to reduce Illinois' $100 billion pension debt.

But the ten members of that panel say other than phone calls welcoming them to the committee, he was absent from their talks from June on, leading to criticisms like this, from Rep. Jil Tracy, a Republican from Quincy.

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Statehouse
1:30 pm
Tue October 15, 2013

Cullerton Says Pension Issue Could Bypass Committee

Sen. John Cullerton
Credit Illinois Senate

Illinois Senate President John Cullerton says the state's pension problem could be addressed in the fall legislative session even if a committee working on it remains split.  
The Chicago Democrat tells The Associated Press in an interview that lawmakers could bypass the committee and call a vote through another legislative route.  
An AP survey found that five of the pension committee's 10 members still had concerns with a proposed $138 billion savings plan. The Legislature cannot consider a committee proposal unless it is signed by six members.  

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Pension Overhaul - Updated
7:23 am
Tue October 15, 2013

Gov. Quinn "AWOL" From Pension Committee's Talks

The ten members of the bipartisan, bicameral conference committee formed to come up with a pension package gather in Chicago in July, for one of the panel's few public meetings. Gov. Pat Quinn did not attend.
Credit Amanda Vinicky

As he runs for re-election, Gov. Pat Quinn is staking a lot on getting something done with pensions. He making a show of asking the state Supreme Court let him cancel legislators' salaries until it's done, and he says he won't deal with other major issues before the General Assembly -- like using tax credits to keep ADM headquartered in Illinois -- until there's what he calls a "comprehensive pension solution." But it's hard to tell just what that means. Most of the ten legislators he tasked with crafting that solution don't even seem to know. They say he's been largely absent ...

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Pension Overhaul
5:24 pm
Fri October 11, 2013

Pension Committee Considering Adding 401(k) Option

Rep. Mike Zalewski, a Democrat from Riverside, sits on the pension conference committee. "There's some concern over ... frankly whether pension systems should get in the business of the market... and philosophically do we really want to go down this road when there's members of these systems that believe all we need to do is make our payment, rightfully so," he says of defined contribution plans.
Credit MikeZalewski.com

With an eye toward reaching an agreement in time for the upcoming veto session, legislators on a special pension committee met Friday in Chicago. The conversations focused on giving state employees and teachers a new style of retirement plan.

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Statehouse
5:16 pm
Wed October 2, 2013

Quinn Asking Supreme Court To Back Him In Lawmaker Pay Dispute

Gov. Pat Quinn has asked the Illinois Supreme Court to hear his appeal of a ruling that his veto of money for lawmaker salaries was unconstitutional.  
Attorneys for Quinn filed a motion with the court Wednesday. They say the case deserves an ``expeditious and conclusive'' ruling by the state's highest court.  
Quinn vetoed money for paychecks in July because he was angry legislators hadn't addressed Illinois' nearly $100 billion pension crisis.  
House Speaker Michael Madigan and Senate President John Cullerton sued, saying his action was unconstitutional.  

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Pension Overhaul
6:46 am
Thu September 26, 2013

Pension Conference Committee Progress Report

Rep. Darlene Senger, R-Naperville (left) and Rep. Elaine Nekritz, D-Northbrook, discuss estimated savings of a previous plan designed to cut the state's pension costs.
Credit Brian Mackey/WUIS

It is approaching four months since the Illinois General Assembly adjourned its spring session. Lawmakers have missed two paychecks since the governor decided to punish them for not passing a pension overhaul. And a special committee has been negotiating over how to solve the pension problem for more than 12 weeks. Amanda Vinicky checks in with members of that committee for a progress report.
 

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Pensions
6:50 am
Thu September 5, 2013

Pension Plan Not Finalized, But The End May Be Near

Sen. Daniel Biss (D-Evanston), courtesy of ILGA.gov
Credit ILGA.gov

Legislators writing an overhaul of the state's pension systems could be nearing the end of their work.

Feedback's been plentiful since late last month, when a draft of a pension plan drawn up by a bipartisan legislative committee was leaked. Unions hate it - saying it overreaches in cutting retirement benefits. Business groups say it doesn't go far enough to save the state money. Not to mention complaints, including from the governor, that the committee is taking too long.

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Pensions
5:03 pm
Tue August 20, 2013

Pension Returns Up; Problems Remain

Credit Amanda Vinicky

Illinois' largest public pension fund hit a major low in 2012, its rate of return was less than one percent.  But an early analysis shows the last fiscal year was better than expected. The success isn’t expected to make much of a dent in Illinois’ nearly $100 billion dollar pension liability, however, which lawmakers thus far have failed to tackle.   

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Election 2014
8:43 pm
Tue August 13, 2013

Pension Chairman Raoul Possible Democratic Challenger

Chair of the pension conference committee Sen. Kwame Raoul (D-Chicago) talks with Rep. Elaine Nekritz (D-Northbrook) at a July meeting in Chicago.
Credit Amanda Vinicky/WUIS

  Governor Pat Quinn already has one primary challenger, but there's talk he may get more. 

A lot of politicians are heading to the capital city this week; it's the State Fair, and a time for annual political meetings and rallies.

Democratic Sen. Kwame Raoul was driving down from Chicago Tuesday afternoon, in time for his fundraiser last night at a Springfield bar.

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