On Wednesday, the General Assembly approved significant pension reform for most state and local government employees. It’s been reported that it took the legislature less than 12 hours to complete the entire process. Governor Quinn is expected to signed the bill into law.

The legislation includes reduced benefits, a higher retirement age, lower cost-of-living adjustments, sets a maximum salary on which pensions are based, and prevents some individuals from collecting two pensions. According to the Commission on Government Forecasting and Accountability, the reforms will reduce the state’s pension liability by $119 billion by 2045. No estimates have been formulated for savings to local governments. Doug Whitley, President of the Illinois Chamber of Commerce, called the action “the biggest thing that I’ve seen around here in years.”

The legislation does not change benefits for current employees because it is believed that this could be subject to legal challenge. It is claimed that pensions for current employees cannot be reduced without violating the state constitution, so that was left out. The changes will only apply to newly hired government employees.

In addition, the new law does nothing to reform local police and fire pensions. This was disappointing for municipalities and the Pension Fairness Coalition. The coalition issued the following PFIC Statement on Pension Reform Legislation.

Just as important is that current and future legislators and governors use this to change their behavior and stand up to those individuals and organizations who routinely visit Springfield and request pension enhancements or “sweeteners.” If that doesn’t change, it’s just a matter of time before all the progress made this week is completely erased. 

It is my hope that the legislation approved this week can serve as a basis for public safety pension reform, which is urgently needed.

As we approach the start of the baseball season, I recall the great movie “Field of Dreams” where Ray Kinsella was encouraged to “go the distance.” The General Assembly and Governor Quinn need to do the same and finish pension reform.