logo

Illinois Public Pension Reform Tops Special Session Agenda

image
Created: 17 June, 2013
Updated: 14 October, 2022
2 min read
Credit: Chicago Tribune

Illinois pension reform

After the Illinois legislative session ended with relatively few gains, Governor Pat Quinn quickly called a special session which is set to meet on Wednesday. At the top of the agenda is the public pension reform that failed.

Shortly after the original legislative session that ended on May 31, the Moody's and Fitch credit rating agencies issued downgrades for Illinois. The reason for the downgrade was due to the "unsustainability" of the state's retirement system. Estimates vary the retirement deficit between $97 and $100 billion. Illinois has the worst credit rating of any state in the country and any further credit downgrades may drop its rating to Triple-B.

The public pension crisis is largely a dispute between Governor Quinn, Speaker of the House Michael Madigan, and Senate President John Cullerton -- all are Democrats.

Versions of public pension reform passed each chamber before the session ended, but no compromise was made and reform died. This also marks the second time in a year that Quinn has called for a special session specifically related to public pensions.

Quinn, an embattled incumbent, has urged compromise legislation. He also appealed to the city's pride in the success of the local hockey team, the Chicago Blackhawks, in the Stanley Cup Finals:

"I saw Jonathan Toews assist Patrick Kane who scored the winning goal. That's the kind of teamwork that we need in Illinois."

Madigan's proposal, which he has offered as an amendment to the Senate legislation, "cuts cost-of-living adjustments, raises the retirement age and hikes employee contributions." It also provides no choice for the workers it would affect and is unlikely to have support from unions.

Perhaps in a sign of what the Illinois public pension crisis portends, Illinois universities have already had a difficult time paying their obligations. One such, as reported in last week's Chicago Tribune, was Chicago's National Louis University, which has resorted to firing tenured faculty and rehiring them as adjuncts.

A proposal that originated at the University of Illinois Institute for Government and Public Affairs, and which Cullerton has indicated he might support, includes employees paying in more toward retirements. It also shifts the employer portion of employee pension contributions from the state to the schools themselves. This plan has the initial support of all the state's public university presidents.

IVP Existence Banner

In addition to all the other hurdles regarding public pension reform, any changes made to the system requires a three-fifths majority under the Illinois Constitution. Otherwise, any plan that receives a simple majority would take until June 1, 2014 to take effect.

Although expectations of the special session are low, the General Assembly and Governor Quinn have an opportunity to solve some of the liabilities surrounding the Illinois public pension impasse.

Latest articles

votes
Wyoming Purges Nearly 30% of Its Voters from Registration Rolls
It is not uncommon for a state to clean out its voter rolls every couple of years -- especially to r...
27 March, 2024
-
1 min read
ballot box
The Next Big Win in Better Election Reform Could Come Where Voters Least Expect
Idaho isn't a state that gets much attention when people talk about politics in the US. However, this could change in 2024 if Idahoans for Open Primaries and their allies are successful with their proposed initiative....
21 March, 2024
-
3 min read
Courts
Why Do We Accept Partisanship in Judicial Elections?
The AP headline reads, "Ohio primary: Open seat on state supreme court could flip partisan control." This immediately should raise a red flag for voters, and not because of who may benefit but over a question too often ignored....
19 March, 2024
-
9 min read
Nick Troiano
Virtual Discussion: The Primary Solution with Unite America's Nick Troiano
In the latest virtual discussion from Open Primaries, the group's president, John Opdycke, sat down ...
19 March, 2024
-
1 min read
Sinema
Sinema's Exit Could Be Bad News for Democrats -- Here's Why
To many, the 2024 presidential primary has been like the movie Titanic - overly long and ending in a disaster we all saw coming from the start. After months of campaigning and five televised primary debates, Americans are now faced with a rematch between two candidates polling shows a majority of them didn’t want....
19 March, 2024
-
7 min read