- Published: Friday, May 10, 2013 04:18 PM
State Senator Tony Munoz voted on legislation that would help to solve the pension crisis facing the state of Illinois.
“Unfortunately, the pension funds have never been adequately funded,” Munoz said. “Currently, Illinois has to make increased payments to ensure the funds can continue to support retirees. This proposal will provide some stability of the pension systems for future generations.”
Senate Bill 2404, a product of negotiations between public employees unions and the Senate President, is not only a cost savings measure, but is also fair to current and future retirees.
This plan will require current state employees hired before Jan. 1, 2011 to choose between three options. They can agree to a simple interest three percent Cost of Living Adjustment that takes effect two years after they retire. They will be able to keep their current compounded three percent Cost of Living Adjustment, but give up retiree health care and agree that all future raises will not count toward their pensions. The final choice is that employees could keep their current three percent compounded Cost of Living Adjustment, but agree that it will take effect three years after they retire and that they will pay two percent more of their salaries toward their pensions now.
This proposal would require retirees to choose between two options. Either keep their three percent compounded Cost of Living Adjustment, but accept a two-year COLA freeze or keep their three percent compounded Cost of Living Adjustment, but give up access to retiree health care.
By providing choices, this proposal is constitutional and it guarantees 90% funding of the pension systems by 2045.
This measure is supported by the We Are One Coalition of unions that includes the AFL-CIO, AFSCME, the IFT, the IEA and others.