Sun Times: IL House Votes to Lower Pension Benefits for New Judges and Lawmakers

BY DAVE McKINNEY AND STEVE CONTORNO Sun-Times Staff Reporters

SPRINGFIELD -- Future legislators and judges would qualify for less generous retirement benefits under a partial fix to the state's financially buried pension systems that passed the Illinois House Friday.

"The first thing you have to do is stop digging if you're in a hole. Today is the day that we stop digging," said Rep. Kevin McCarthy (D-Orland Park), the pension legislation's chief House sponsor.

Under the plan, which passed 109-0, incoming legislators and judges would have to wait until they are 67 to draw full pension benefits. Now, they can draw full benefits as young as 55 years old.

The plan would base their pensions on 60 percent of their final salaries rather than the current 85 percent.

Annual, post-retirement, cost-of-living adjustments would be capped at half the rate of inflation or 3 percent, whichever is less. Now, retirees in the General Assembly Retirement System and Judges Retirement System get automatic 3 percent annual increases.

McCarthy said the changes don't pertain to sitting lawmakers or judges because of a constitutional provision that bars the diminishment of pension benefits to them, though some Republicans disagree with that interpretation.

The establishment of a two-tiered pension system, in which existing judges and lawmakers fare better than future ones, would save the state $1.65 billion by 2045, according to a House Democratic analysis of the legislation.

However, the changes would generate only $22 million of short-term relief toward the $4.6 billion contribution the state must make toward its pension systems next year under a 1995 law designed to make the retirement funds 90 percent funded by 2045, McCarthy said.

The House's vote represented one of the rare moments this spring when ruling Democrats and the GOP minority have come together in responding to the state's $13 billion budget deficit, which is fueled partly by huge shortfalls in Illinois' five public retirement systems.

"It would be nice if this was all done in a bipartisan manner, but I'm not sure what's going to happen. Let's take advantage of saying this was a good move," said House Minority Leader Tom Cross (R-Oswego), who contended his members supported McCarthy's bill despite not being given a voice in its creation.

One government watchdog characterized Friday's vote as the first "significant pension reform" lawmakers have imposed on Illinois' retirement systems in years, but stressed it remains far short of what is necessary to defuse the state's pension time bomb.

"While it's a positive first step, it's neither comprehensive nor does it effectively address the greater financial challenges facing the state," said Laurence Msall, president of the Civic Federation.

Msall's group and Gov. Quinn have advocated major pension belt-tightening for state employees, university workers and suburban and Downstate teachers, as well. A plan pertaining to those groups is expected to surface as early as next week in the state Senate.

But AFSCME Council 31 and the state's teachers unions have dug in against any weakening of their benefit packages, and their sway over lawmakers is sure to be enhanced given that this is an election year.

"Those groups are little bit more well-organized than General Assembly members or judges," McCarthy said, acknowledging the tough road ahead in securing more expansive pension reforms.