Last week, Governor Pat Quinn offered the outlines of a pension reform proposal that is an important first step in addressing Illinois' massively underfunded public pension system. The plan calls for a 3% hike in employee contributions, phasing in an increase in the retirement age to 67, reducing cost of living adjustments, and shifting some costs to local school districts, community colleges and public universities. Quinn says the plan will save taxpayers $65 to $85 billion dollars and achieve 100% funding of the systems by 2042.
Reform advocates see this as an important step in the right direction. President of the Civic Committee, Ty Fahner, said "We're gratified that everyone now recognizes the depth of Illinois' pension crisis. The Governor's announcement today demonstrates important movement toward solving our pension problems, but the devil is always in the details. We agree with much of what is outlined in the Governor's plan, but believe that further refinement is necessary. With that said, we are very encouraged and stand ready to work together to put our state back on sound financial ground."
To learn more, read the Governor's entire pension proposal along with the news headlines below. And, for more information on the Illinois pension crisis and ways that you can help fix it, please visit www.IllinoisIsBroke.com.
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