Representative Barbara Flynn Currie has presented a new pension reform proposal in the House of Representatives, HB 4045, which will have a hearing on May 16, 2017. In addition, Leader Durkin has filed an identical bill, HB 4027, that is also scheduled for a hearing that day.
The proposals would:
–Recalculate how the state pays into the pension system. It will backload the pension payments, paying less now with the promise that the state will pay more down the road. This pushing off the pension payment is the same mentality that got the state into this mess in the first place.
–Requires active teachers and other current state employees to make a choice. They can choose to keep their compounded COLA in retirement, but can no longer have pay raises count toward their future pensionable salary. Or they can give up the compounded COLA, but continue having raises count toward their retirement benefits and be placed into the Tier II pension plan.
–Provides $215 million for Chicago teacher pensions.
–The General Assembly Retirement System will be closed to new members.
Not only are these measures unfair, the IRTA would suggest the changes proposed are unconstitutional. The lawyers who represented the IRTA Members against Senate Bill 1, Gino DiVito and John Fitzgerald, recently wrote an opinion concerning proposed “consideration” language presented in this bill.
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