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Pension Reforms Headed to Governor's Desk
State employee pension reforms are now headed to the governor's desk. The Senate and House of Representatives passed a bill Wednesday to change the pension system for newly hired employees.

The reform plan raises the retirement age to 67. It also limits the salary amount an employee may collect on a pension. Under the legislation, an employee can only receive a pension based on a salary of $106,800 or less. The bill also ensures a retired state employee cannot collect a pension while they work full time at a different government job.

The reforms do not apply to police or fire fighters, but Senate President John Cullerton (D-Chicago) expects those reforms could come up in a trailer bill.

Speaker of the House Mike Madigan (D-Chicago) says the reforms will save the state money in the long run, and will stabilize the drastically under funded pension system.

Union groups strongly opposed the measure. Henry Bayer, executive director of the American Federation of State, County and Municipal Employees, says it is unfair to make future generations pay for the current pension crisis. He says the problem is not that current pension benefits are too generous, but that the state has neglected to properly fund the system.

The bill is SB1946.

(Illinois Radio Network)
03 25 10 by Newsroom
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