|Rep. Patti Bellock|
Springfield, IL - House Republican Leader Jim Durkin today called on Speaker Michael Madigan and the House Democrats to join House Republicans in passing comprehensive pension reform that would provide significant savings for taxpayers and $215 million to the Chicago Public Schools for a one time pension parity payment.
According to Durkin, the legislation, House Bill 4027, is modeled after legislation introduced in a bipartisan manner in the Senate. Joining Leader Durkin in introducing the new bill as Chief Co-Sponsor is Rep. Patti Bellock (R-Hinsdale), the Deputy Minority Leader in the Illinois House of Representatives.
Specifically, HB 4027 includes:
- Senate President John Cullerton’s “consideration model” that would require members of TRS, SURS, SERS, GARS, and CTPF to exchange their Tier 1 COLA for the right to have future raises to be counted as pensionable, or keep their COLA and sacrifice future raises as pensionable. This concept previously received union support by the We Are One Coalition
- Provides a one-time normal cost payment to the Chicago Teachers’ Pension Fund of $215.2 million for FY 17
- Closes new member participation in GARS
- Offers Tier 1 TRS, SURS, SERS and GARS employees the option to participate in a defined contribution (DC) plan
- Creates a voluntary Tier 3 Hybrid defined benefit/defined contribution plan for new Tier 2 employees under TRS, SURS, and certain SERS members who do not participate in Social Security
“With this legislation, we estimate the State of Illinois will realize short-term savings of $2.25 billion dollars from the general funds and a substantial step towards closing the deficit gap. This is a significant step towards achieving a balanced budget but also saving our pension systems.”