pensions

Statehouse
6:04 pm
Thu March 6, 2014

Fifth Lawsuit Filed Against Illinois Pension Law

An Illinois House voting board in December shows the results for what would become a pension overhaul law.
Credit Amanda Vinicky

A fifth lawsuit has been filed by state employees challenging Illinois' new pension law.  
The lawsuit from current and former employees at the University of Illinois at Champaign-Urbana and Parkland Community College was filed in Champaign County Circuit Court Thursday.  

It says the legislation passed by the General Assembly in December violates several provisions of the state constitution, which says retirement benefits should not be diminished or impaired and private property should not be ``taken or damaged for public use.''  

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Statehouse
6:15 am
Thu March 6, 2014

GOP Governor Candidates Argue Pensions

Credit Brian Mackey/WUIS

The Republican candidates for Illinois governor are arguing about pension reform and the state's finances in the second-to-last debate ahead of the March 18 primary.  

State Sens. Bill Brady and Kirk Dillard, businessman Bruce Rauner  and Treasurer Dan Rutherford attended the debate Wednesday hosted by WGN-TV and the Chicago Tribune.  

Brady is the only one who supported a recent pension overhaul that cuts benefits for state workers and retirees. Dillard voted against it, which has been the reason that several unions have endorsed him.  

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Regional
11:30 am
Wed February 26, 2014

Springfield Pension Problem Worst in State According to Think-Tank

Credit illinoispolicy.org

A conservative think tank recommends the City of Springfield switch its employee pension system to a 401K style plan rather than a defined benefit.

"First and foremost you need to make sure the data is pure." -- Budget Director William McCarty

The Illinois Policy Institute presented aldermen data that indicate the city of Springfield has the worst funded pension system among larger cities in the state.

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Statehouse
5:49 am
Wed February 26, 2014

Effort To Consolidate Pension Lawsuits

Efforts are underway to consolidate four lawsuits challenging Illinois' new pension reform law.  

Lawyers representing the respective groups of state retirees who filed class-action suits have asked the Supreme Court to allow them to present their cases as one.  

The groups share the common claim that the new pension reform plan violates the state constitution, which says benefits may not be diminished.  

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Statehouse
12:05 am
Fri February 21, 2014

Arizona Pension Case Could Chart Course for Illinois

Credit Brian Mackey/WUIS

A court case decided in Arizona Thursday could have implications for Illinois' ongoing legal battle over pensions. The decision (pdf), by the Arizona Supreme Court, struck down an attempt to reduce Arizona officials' retirement benefits.

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Statehouse
6:46 am
Fri February 7, 2014

How Large Is Illinois' Pension Debt? Depends On Who You Ask

Credit MT_Image/Flickr

The controversial new law that overhauls pensions for Illinois public workers is now facing legal challenges.

But even before it was passed, experts had been fighting over exactly how big the state’s pension crisis really is. The answer to that math problem could have a big impact on your wallet.

When pundits and politicians and reporters talk about Illinois’ monster pension problem...there’s this number that keeps coming up.

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Pensions
11:48 am
Tue January 28, 2014

Unions Sue Over Pension Law

Credit wuis

Illinois labor unions have filed a lawsuit seeking a new plan to reduce the state's $100 billion pension shortfall declared unconstitutional.  

The We Are One Illinois Coalition of public employee unions filed the lawsuit Tuesday in Sangamon County Circuit court.  
The long-anticipated legal challenge comes weeks after Gov. Pat Quinn signed the measure into law and ahead of his annual State of the State address.  

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Statehouse
5:57 pm
Thu January 23, 2014

Democrat Cullerton Wants To Meet With GOP Nominee For Governor

Sen. John Cullerton
Credit ilga.gov

The President of the Illinois State Senate - John Cullerton - says he wants to meet with the eventual Republican nominee for governor about the state’s finances.  It comes as the state’s income and corporate tax rates are scheduled to go down in a year.

The governor’s office predicts the tax decrease will create a nearly $2 billion hole in the next budget. Cullerton - a Chicago Democrat - says he’d like to hear from the Republican nominee about the state’s budget.

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Higher Education
5:41 pm
Thu January 23, 2014

U Of I To Consider Pension Cut Offsets

Robert Easter
Credit U of I

University of Illinois President Robert Easter and other administrators will consider ways to help university employees make up for some of the money they will lose when state pension reforms begin June 1.  

University trustees on Thursday directed Easter to assess the changes coming to the state pension system and options for preserving benefits that will be lost. The president is expected to make recommendations to the trustees before June. The board of trustees oversees the university's three campuses in Urbana-Champaign, Chicago and Springfield.  

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New IGPA Report
7:15 am
Tue January 21, 2014

Budget Gap To Increase Despite Pension Overhaul

Credit Brian Mackey/WUIS

Illinois' pension overhaul is tied up in a court challenge.  But even if it remains law, cuts to state employees' and public school teachers' retirement benefits will not solve the state's budget problem.  That's the forecast from a report issued today by the University of Illinois' Institute for Government and Public Affairs. Amanda Vinicky spoke with the report's principle author, economist Richard Dye.

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Statehouse
7:23 am
Wed January 8, 2014

Quinn Signs Another Pension Measure

Gov. Pat Quinn
Credit wikimedia

Gov. Pat Quinn has signed a pension-reform measure for the Chicago Park District.  

The legislation Quinn signed Tuesday is designed to deal with a $971 million deficit in the district's pension program. When lawmakers approved it in November, experts hailed it as example of compromise for what was then an elusive solution to the five state pension systems' $100 billion hole.  

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Pensions
7:20 am
Tue January 7, 2014

Don't Bank On Pension Savings Just Yet

House Speaker Michael Madigan sponsored the pension overhaul, which state employees' and teachers' unions say unfairly cuts their benefits.
Credit Amanda Vinicky/WUIS

With the new year comes the annual process of crafting a new state budget.  Money will be tight, despite a pension law that's supposed to save $160 billion dollars over the next 30 years.

Legislators who voted to cut state employees' and teachers' retirement benefits say they had no choice. Nearly a fifth of the state budget was going into Illinois' pension systems. Meaning there was less money to spend elsewhere. The pension law is supposed to ease that so-called "squeeze."

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State Week
1:26 pm
Fri January 3, 2014

Listen To State Week - January 3, 2014

This week's topics include the state's system for accepting Concealed-Carry applications, the many lawsuits filed against the recent law changing the state's pension system, and a look back at some top stories from 2013.

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Statehouse
2:10 pm
Thu January 2, 2014

State Retirees Sue Over Pension Law

A group of retired state employees has filed a lawsuit challenging a new Illinois plan to eliminate the state's $100 billion public pension shortfall.  

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Statehouse
10:55 am
Thu January 2, 2014

Justices Get Campaign Money From Groups Involved In Pension Battle

Credit flickr/RandyvonLiski

A published report says groups with ties to the pension-reform law adopted last month have contributed close to $3 million to Illinois Supreme Court justices who might decide its fate.  

The Chicago Sun-Times reports (http://bit.ly/1aqJQ5n ) that six of seven justices have taken money in the past 13 years from labor unions, business groups and a political committee controlled by Chicago Democratic House Speaker Michael Madigan.  
Retired teachers have sued to stop the pension-reform plan that cuts retiree benefits to reduce a $100 billion debt.  

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pension
6:39 am
Fri December 20, 2013

Illinois Pensions Don't Sell Assets In 2013

Credit SRS

Officials say sufficient state funding the last two years means key state-employee pension funds didn't have to sell assets to meet payments.  
 The State Retirement Systems covers pensions for ex-state employees, judges and lawmakers. A report Thursday by Auditor General William Holland says SRS withdrew $30 million in the 2013 fiscal year _ down from nearly $250 million the year before.  
 William Atwood heads the Illinois State Board of Investment, which manages the SRS portfolios.  
 He says the large withdrawal in 2012 was because of state underfunding in 2011.  

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Pensions
6:00 am
Tue December 17, 2013

Preparing To Implement Pension Overhaul — And Not To

Credit Arthur Public Library via IMLS DCC (creative commons)

Illinois’ biggest and most indebted pension system is beginning to implement changes tied to the pension overhaul passed this month. But officials are also making plans in case the new law is struck down.

The Teachers Retirement System is by far the biggest of Illinois’ five pension systems, with well over 360,000 members. TRS is also the biggest factor in the pension funding problem, accounting for more than half of the combined $100 billion shortfall.

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State Week
6:15 pm
Fri December 13, 2013

Listen To State Week - December 13, 2013

This week, among the topics of discussion: corporate tax incentives, interest on state bonds, and more on state pensions.

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Pans Tax Credits
6:19 pm
Wed December 11, 2013

Madigan: Resist Temptation To Cave To Corporate Officials' Demands

House Speaker Michael Madigan readies to introduce a pension overhaul bill denounced by public employee unions, who say Illinois should instead close corporate tax loopholes. Madigan today (12/11) issued a statement saying Illinois lawmakers "must resist the temptation to cave to corporate officials' demands every time they impose a deadline for payment in exchange for remaining in Illinois."
Credit Amanda Vinicky

  

  A day after Office Depot announced it would stay in Florida rather than move to Illinois, the speaker of the House says Illinois needs to end its practice of offering tax incentives on a case-by-case basis.

    

The Illinois House is getting flak for adjourning earlier this month without voting on tax breaks approved by the Senate -- deals meant to lure the newly-merged Office Depot to Illinois, and to convince Archer Daniels Midland to keep its global headquarters in-state.

State Week
2:32 pm
Fri December 6, 2013

Listen To State Week - December 6, 2013

This week, a discussion of the changes made to the state's pension system.

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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.

Statehouse
8:38 am
Thu December 5, 2013

After Pension Vote, Gov. Quinn Will Get His Back Pay

Gov. Pat Quinn is set to get about $74,000 in back pay now that Illinois lawmakers have finally approved a pension deal.  

The governor used his line-item veto power this summer when he halted legislators' salaries, saying they shouldn't get paid until they addressed the nearly $100 billion pensions crisis. He also stopped accepting his own paychecks.  
A judge disagreed with Quinn in September and the comptroller began issuing checks to lawmakers. But

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Statehouse
8:56 pm
Wed December 4, 2013

A Day After Passage, Pension Legislation Sent To Governor's Desk

A bill aimed at fixing Illinois' hundred billion pension crisis is before Gov. Pat Quinn.  
A spokeswoman for Senate President John Cullerton said Wednesday that the bill had been sent to Quinn.  
The move came a day after the Illinois General Assembly approved the bill that is estimated to save the state $160 billion over the next 30 years.  

The plan reduces benefits for current and retired public employees. Among other things, it also raises the retirement age on a sliding scale for some employees.  

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Pensions
7:22 pm
Wed December 4, 2013

Pension Changes More Common Among Governments

Republican Leaders Sen. Christine Radogno (left) and Rep. Jim Durkin
Credit Amanda Vinicky/WUIS

Illinois is just the latest state to vote on legislation to overhaul public pension plans.   

Heather Kerrigan is a contributor with Governing Magazine.  She says this year alone, state and local governments around the country have proposed more than 1,000 pieces of legislation to shore up pensions.  And she says almost all of them face the same challenge. 

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Pensions
4:52 pm
Wed December 4, 2013

Madigan: Courts Could Pick And Choose On Pension Plan

Illinois House Speaker Michael Madigan presents the conference committee report on Senate Bill 1, the legislation overhauling Illinois pensions. Madigan says "hopefully the Court will rule in favor of the constitutionality of the bill."
Credit Amanda Vinicky

  Illinois legislators may have passed a pension overhaul, but unions representing teachers and public employees have vowed to sue to stop it from taking effect. If they're successful, that could force lawmakers to go back to the drawing board.

Lawmakers made preemptive efforts to fend off a legal challenge. The measure contains a statement that details the terrible condition of Illinois' finances and what lawmakers have tried to do about it -- a clear attempt to justify cutting pension benefits.

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Statehouse
1:16 am
Wed December 4, 2013

How They Finally Passed A Pension Overhaul

House Speaker Michael Madigan, right, forcefully argued for legislation to overhaul the state's pension systems.
Credit Amanda Vinicky/WUIS

The Illinois General Assembly approved sweeping cuts to state employee pensions Tuesday. The move comes after years of stalemate over how to address a hundred-billion dollar liability — the worst-funded pension plans of any state.

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Statehouse
5:52 pm
Tue December 3, 2013

Sweeping Pension Changes Approved

Credit Brian Mackey/WUIS

The Illinois General Assembly has approved sweeping changes to pensions for state employees. Governor Pat Quinn says he will sign the legislation. It's intended to fix the worst-funded state retirement system in the country.

Illinois is roughly $100 billion short of the money it promised to pay state employees, university workers, and public school teachers.

After years of debate, lawmakers finally agreed on a solution to the problem: cutting benefits, mainly by reducing the three-percent annual increase retirees have gotten on their pensions.

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Statehouse
5:00 pm
Tue December 3, 2013

Recap Of Pension Vote With Brian Mackey

WUIS' Sean Crawford talks with Statehouse reporter Brian Mackey moments after state lawmakers voted to approve pension legislation. 

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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.

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