From AP - News Headlines -

Ill. Treasurer: Pension Battle Belongs in Court

Illinois Treasurer Dan Rutherford says the state should give government employees an option between pension plans and then defend the change in court.

The Republican said Tuesday he thinks giving current employees a choice between the current, guaranteed payment pension plan and a new 401(k)-style program would not run afoul of the state constitution. The constitution bars cutting retiree benefits.

A major union says the idea wouldn't raise the same "constitutional red flags'' as simply reducing benefits.

But the Association of Federal, State, County and Municipal Employees says Rutherford's proposal wouldn't fix the state's pension problems.

Rutherford says the state cannot afford to fund pensions in its current form. He says the switch would help restore solvency.