Illinois legislature sends two-tier pension reform bill to Governor - it will only affect those hired after Jan. 2011!

From John Curry, March 26, 2010

Notice, STRSers, the new regulations (as are the reforms written into most other state reform initiatives and unlike the proposed Ohio STRS reform package) does NOT affect current actives OR retirees. There IS another way of legislating pension reform.

John

http://www.mysuburbanlife.com/westchester/opinions/x1447157373/Editorial-At-last-lawmakers-step-up-to-the-pension-plate

Editorial: At last, lawmakers step up to the pension plate

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By Anonymous
GateHouse News Service
March 26, 2010

What the Legislature couldn't accomplish in the last 20 years it did in the span of hours on Wednesday as a pension reform bill was moved to the governor for his signature.

Distrustful of that dizzying pace though we are, the overwhelming margins in favor of this legislation in the House and Senate -- 92-17 and 48-6, respectively -- on such short notice were indicative of how necessary such reform is in a state with the largest unfunded pension liability in America and a job-killing deficit of $13 billion. Something simply had to be done. This is a significant something.

Senate Bill 1946 creates a two-tier pension system. It moves the retirement age for future state workers and lawmakers looking to get full benefits to 67 from 62 (or lower in some cases). It caps the maximum pensionable salary at $106,800. It bases benefits on the highest average salary over eight years rather than four. It limits and likely lowers cost-of-living increases by hooking them to inflation. It reduces the number of employee groups qualifying for higher payouts from jobs considered high-risk. It eliminates one kind of double-dipping for those state retirees who take another government job; no longer would that person be able to collect both public salary and pension.

Importantly, as Speaker Mike Madigan noted, "This bill does not affect anybody who works for a government today" or is retired. Indeed, should Gov. Pat Quinn turn the bill into law, it would affect only those hired on or after Jan. 1, 2011.

Read the complete article here.