Possible Pension Fix Could Save Illinois $145B

August 23, 2013

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