Illinois governor signs pension overhaul into law

[flowers]

http://www.foxnews.com/politics/2013/12/05/illinois-governor-signs-pension-overhaul-into-law/

Gov. Pat Quinn has signed landmark legislation Thursday to reform Illinois' massively-underfunded pension system, though the new law is certain to face threatened lawsuits by labor unions.

The overhaul, approved by the General Assembly this week after years of delay and inaction, cuts benefits for most employees and retirees. It has a June 1 effective date, but could be delayed by the legal challenges.

Quinn, who often signs new laws in celebratory public events, signed the pension bill Thursday afternoon in a private ceremony. It was a mark of how politically sensitive the issue is in Democrat-controlled Illinois, with hundreds of thousands of public employees and retirees across Illinois being negatively affected.

Illinois' $100 billion shortfall in funding employee retirement benefits is considered the worst pension crisis in the nation. For decades, while other states dealt with similar problems, Illinois lawmakers and governors skipped or shorted payments to their state's five pension systems. It led to repeated downgrades of the state's credit rating and diverts millions of dollars from education and social programs.

The new plan is expected to save the state roughly $160 over three decades and guarantees Illinois will make its full annual contribution to the pension funds. Legislative leaders have estimated the plan will reduce the current unfunded liability by about $21 billion and fully fund the retirement systems by 2044.

Unions representing public employees say the legislation, unveiled last week and approved Tuesday by the General Assembly, violates the Illinois Constitution. They cite a provision that prohibits diminishing pension benefits.

However, Quinn and legislative leaders believe the new proposal will survive a court challenge because of the funding guarantee and a reduction in employees' own contributions to their retirement funds.

[truth_seeker]

"The new plan is expected to save the state roughly $160 over three decades ..."

Anybody proofread these days?

[Cincinnatus]

Interesting that this article, from Fox, states this has happened in

Democrat-controlled Illinois

, but doesn't identify Quinn as a Democrat.

[truth_seeker]

Interesting that this article, from Fox, states this has happened in  , but doesn't identify Quinn as a Democrat.

The 2008 crash meant eventually most jurisdictions would have to cut pension costs. Now it is coming to pass, albeit slowly. Stockton BK, San Bernardino  BK, Detroit BK, Illinois, etc.

CA Gov. Brown will probably face conflicts over keeping his train fantasy going, without cutting pensions.

I think the left sees nuclear energy and shale oil/gas extraction as a taxation bonanza that might help them avoid pension cuts.

Now of course a true conservative like me would opt to cut pensions, cut other costs, use hydrocarbon taxation revenues to pay down debt.

[Fishrrman]

[[ "The new plan is expected to save the state roughly $160 over three decades ..."
Anybody proofread these days? ]]

Maybe that's not a misprint.

Hey, it's Illinois...   :)

[Oceander]

The 2008 crash meant eventually most jurisdictions would have to cut pension costs. Now it is coming to pass, albeit slowly. Stockton BK, San Bernardino  BK, Detroit BK, Illinois, etc.

CA Gov. Brown will probably face conflicts over keeping his train fantasy going, without cutting pensions.

I think the left sees nuclear energy and shale oil/gas extraction as a taxation bonanza that might help them avoid pension cuts.

Now of course a true conservative like me would opt to cut pensions, cut other costs, use hydrocarbon taxation revenues to pay down debt.

Pay down debt!?!?!?  What sort of a sicko are you?!?!?

/jk