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State Representatives
Elaine Nekritz and Daniel Biss.
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THE BILL introduced by State
Rep. Daniel Biss (D-Evanston) and
State Rep. Elaine Nekritz
(D-Northbrook), would:
• Create a new 30-year
pension payment plan, making the State pay its employer share with a new funding
right that can be enforced through court action.
• Allow cost-of-living
pension increases only for the first $25,000 of an employee's pension.
• Increase employees'
retirement age from one to five years, depending on their current age.
• Increase employees'
pension contributions.
• Place new hires in a
cash balance plan that combines features of defined contribution (or 401(k))
plans and defined benefit plans.
• Further limit
legislators' pension increases.
• Gradually shift
teacher pension costs from the State to the school districts that determine
salaries.
• Further pay down
pension debt with revenues freed ups when existing pension obligation notes are
paid off.
BISS AND Nekritz are calling
for action before the current Legislature's term ends on Wednesday, Jan. 9.
•
A plan that includes State-sponsored retiree health care and lower annual cost
of living increases than those now offered. The COLA would start at age 67 or
five years after retirement, whichever occurs first; it would be the lesser of
three percent or half the consumer price index, calculated on the original annuity.
•
A plan that offers the same annual cost of living increases now available, 3
percent annual COLA on a compound interest basis, without participation in the
state-sponsored retiree health care program.
THE PROPOSED legislation would not increase the pension contribution by
employees or change the effective retirement age. However, it would essentially
force employees to choose between health care benefits or the current COLA.
SEE ALSO State
Journal-Register, Dec.
4: http://www.sj-r.com/thedome/x1156351407/Details-emerge-on-new-pension-plan?zc_p=0.
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