Possible Pension Fix Could Save Illinois $145B

August 23, 2013
pension committee

In this June 27, 2013 file photo, members of a bipartisan committee of Illinois lawmakers facing forward from left, State Sen. Daniel Bliss, State Sen. William E. Brady, and State Sen. Matt Murphy listen to Ty Fahner, head of the Civic Committee of the Commercial Club of Chicago, during a public pension hearing in Chicago.

(M. Spencer Green/AP)

A bipartisan panel tasked with solving Illinois' multibillion-dollar pension crisis is considering a framework that could save the state about $145 billion over 30 years.

The Associated Press on Friday obtained an outline of ideas the 10-person committee is considering.

It calls for ending automatic 3 percent cost-of-living increases for retirees. Increases would instead be linked to the rate of inflation. 

Employees would contribute 1 percent less to their own retirement. And the pension systems would be fully funded within 30 years.

Sen. Kwame Raoul is committee chairman. He says the group hasn't reached a consensus and ``our work is not done.''

Illinois has a nearly $100 billion pension shortfall. Lawmakers voted in June to form the committee after hitting an impasse on a pension fix.

Story source: AP

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