Illinois Sen. Daniel Biss, D-Evanston, and Rep. Elaine Nekritz, D-Northbrook, hold a press conference on Gov. Bruce Rauner’s pension reform proposal. Here is the press release: – Two leading pension experts in the Illinois Legislature are calling for an analysis of Gov. Bruce Rauner’s proposal to move employees into a less-generous pension plan to fully determine its impact on the state and those receiving pensions.
State Rep. Elaine Nekritz and state Sen. Daniel Biss announced they are sponsoring a new resolution asking to put the governor’s pension plan under more rigorous scrutiny. Gov. Rauner has called for ending the current Tier 1 pension plan and moving all employees into Tier 2 to attempt to reduce the state’s massive unfunded pension liability.
Lawmakers created Tier 2 for all new state hires in 2011 to help save an estimated $64 billion in pension obligations. But the austere plan could fall out of compliance with a federal government mandate to provide a benefit that is at least comparable to Social Security.
In the resolution, Nekritz and Biss warn Tier 2’s deficiencies could create “severe unforeseen consequences for taxpayers in the state of Illinois.” They warn it would be irresponsible both to pursue Rauner’s plan without a federal decision that Tier 2 complies with federal law, and for the state of Illinois to “enact such a drastic proposal without studying the financial impact it would have on taxpayers and working families.”
The legislators urge the Teachers Retirement System and State Universities Retirement System to ask for a federal ruling on Tier 2 compliance and provide a detailed analysis of how Rauner’s Tier 2 shift plan would affect employees now in Tier 1 before legislators consider his plan.
“Every time we have considered pension reform proposals in Springfield, we have relied on detailed analysis from the retirement systems on how the changes would affect their retirees to guide our decisions,” said Nekritz, D-Northbrook. “The governor’s plan should be no different. With the very real questions out there about Tier 2’s viability, we must take these steps to prevent decisions that could make our pension problem much worse.”
“We need to make decisions on pension reform based on core principles of mathematics, law, and basic fairness,” said Biss, D-Evanston. “It is unjust to these employees and dangerous for the state to do anything less. We will work with our colleagues to take the proper thoughtful and careful approach to the governor’s Tier 2 plan and ensure we are moving down the right path.”
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