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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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."
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.
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.
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.
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.
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.
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.
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.
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 ...
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.
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.
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.
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.
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.
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.