SPRINGFIELD-The Illinois House voted Thursday to limit compounding annual cost-of-living increases for state retirees in a constitutionally questionable move targeting the largest driver of the state’s $97 billion pension crisis.
The Senate-bound measure, sponsored by House Speaker Michael Madigan (D-Chicago), passed the House on a 66-50 roll call and would affect current and retired state workers, university employees, legislators and downstate and suburban teachers. Judges weren’t included.
Under the measure, current and future public employees would have to wait until age 67 or five years after retirement to begin collecting retirement benefits. State employees” annual cost-of-living adjustments would be capped at the lesser of 3 percent or $750 per year.
“This single benefit is the most expensive single component of the pension systems,” said Rep. Elaine Nekritz (D-Northbrook), who presented the measure on the House floor. “As painful as it is we will never get the increasing pension costs under control if we don’t address [the COLA’s].”
The vote represents the third incremental pension-reform measure to pass the House, following votes last week to cap the size of pensions and raise retirement ages.
“If we pass this bill and we all recognize the COLA s the big cost driver and the problem, then I hthink we’re in a position to finalize preparation of the bill and move a bill from the House to the Senate that includes all aspects of the problem,” Madigan said before the vote.
The measure received bipartisan support, including praise from House Minority Leader Tom Cross (R-Oswego).
For those who mistakenly took some relief in the fact that current retirees were excluded from the Senate Bill that passed yesterday should now note that we are included in the House measure.
Update: In my selection of the Sun-Times article I may have misled some into thinking that the bill delays retirement until 67. It is the COLA that would not kick in until 67. Bad enough, but sorry about any confusion.
Fred Klonsky 
Hey Fred, What about those teachers who already put in their letter of retirement like me? Am I affected?
Abby
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You are not affected by SB 1. I don’t know about the language in HB1165 that passed today. Since it affects retirees, I would imagine it impacts those in the pipeline. But all these bills will be challenged in court.
Something must be misquoted in the Sun-Times online article as it states…
“Under the measure, current and future public employees would have to wait until age 67 or five years after retirement to begin collecting retirement benefits.”
No pension until age 67! Then it cannot be called “retirement”. I it think that is called quitting if you “leave” before age 67 with no pension.
The Demos are committing electoral suicide by screwing their base.
There are so many stories out there. I wish someone could put it all together for us. I honestly cannot believe it’s no pension until 67…isn’t it no COLA until 67/5 years after retirement?What will the legislators do – yank the pensions from all of us already collecting them? (I wouldn’t put it past them…) I’m going nuts here…it doesn’t help that my state rep is a sponsor of every bill designed to hurt state employees.
Well, if they want to GIVE ME MY JOB BACK since they have changed all the rules since I retired seven years ago, then perhaps we can talk. I can work for five more years to start receiving my pension and my Medicare TRS supplement that I will still have to contribute to. What they are planning to do with the young teacher who took my place who is still trying to pay off her student loans is a mystery. As is much of what is going on in Springfield.
Fred, how would my “accumulating cola” be affected by this new house bill? I retired 5 years ago and will not receive my first cola increase until next year(I’ll turn 61 this year).