The push is on for Illinois legislators to advance some form of pension reform to address what proponents say are shortfalls in Tier II pensions.
Illinois implemented Tier II pensions with fewer benefits in 2011. Former Illinois Gov. Pat Quinn signed that measure. Tuesday, he said it brought savings.
“I do think it may need some tweaking to make sure it complies with the federal law regarding Social Security,” Quinn said at an unrelated news conference.
A measure proposed at the statehouse would bring Tier II into line with Social Security, something estimated to cost taxpayers about $5 billion extra over several years.
Wednesday, Gov. J.B. Pritzker said something will happen, but couldn’t say when.
“It’s not something that needs to get done exactly in the next session but it’s clear it needs to be dealt with because otherwise you create a whole nother liability for the state,” Pritzker said.
Illinois’ unfunded pension liability is $140 billion. That doesn’t include tens of billions in liabilities from subsidized health care coverage for public employee retirees.
Pritzker acknowledged the taxpayer cost to bring Tier II in line with Social Security.
“Five billion dollars I think, but it’s something that will be strung out a number of years to pay into the system as we do now,” Pritzker said.
Illinois spends about $10 billion a year on pension payments.
House Minority Leader Tony McCombie, R-Savanna, said her caucus is still reviewing the proposed details.
“So our caucus certainly supports a safe harbor fix, it’s just going to be the devil in the details on that,” McCombie said.
The legislature canceled Thursday’s session. Lawmakers will be back Tuesday.
