A state senator says his measure to reform lawmaker pensions is meant to send a message to other public pensioners that change is necessary.
37th District Senator Chuck Weaver wants to put future lawmakers into a self-managed retirement system, instead of a defined-benefit plan, as it is now.
His measure, Senate Bill 2284, would also allow current members of the General Assembly Retirement System to opt into a 401(k)-type plan.
“We have to be leaders … with regards to who we are down here as senators, with who we are as representatives,” Weaver said.
“I would like to expand this [to other pension plans] but I think this is probably the best we’ll be able to do with the political will that exists here in Springfield,” Weaver said. “But it will at least be a start and say ‘it’s time that we start aligning with what’s happening in the private sector.’ ”
Illinois’ pension problem is the worst in the country with an unfunded liability of $130 billion. That figure doesn’t include fully subsidized health care state government retirees get.
“We’ve seen that there are so many people that are outside of the public realm that are not seeing wage increases the way we want to see them and yet they are forced to fund people inside of public entities and it’s just not fair to those people,” Weaver said.
Members could contribute as much as they wanted, but taxpayers would match 7% for the accounts.
The funds would also be managed by the retiree, not by a political body as is the case now.
Of the five different public-sector pension funds in Illinois, GARS is the worst funded at 14%.
Another measure from Republican state Senator Tim Bivins would require future retired lawmakers to pay for half of their health care in retirement.
Right now it’s fully subsidized for Tier I members.
