Two-tiered pension system
passed by state lawmakers
April 9, 2010
In the blink of an eye, the Illinois General Assembly last month passed (by a wide margin) a historic overhaul of Illinois' public employee pension system.
The bill creates a two-tiered system for Illinois state retirement systems.
However, the pension changes would only apply to newly hired employees and would not affect the benefits of retirees or anyone currently working for CPS.
State employees hired after the bill takes effect would have to wait until age 67 to get full benefits.
Currently, teachers and legislators can retire at 55 while other workers can hang it up at 60.
The amount benefits can be based on would be capped at $106,800.
Supporters contend the changes could save the state billions of dollars over the coming decades.
Unions, including Local 73, strongly disagree.
We maintain the state’s pension system is in crisis because state lawmakers have skimped on payments for decades, using money designated for the pension system to cover core services – instead of paying for them by raising taxes.