Rauner Has His Own Plan For Illinois Pensions
Union members and state employees can expect another pension battle ahead, regardless of what the state Supreme Court says about Illinois' landmark 2013 law.
The jury-- in this case, that's the state's high court-- is still out on whether a law that reduces state employees' and retirees' benefits is legal.
There's a lot riding on the answer. Projections are that it will save the state $137 billion over the next few decades, but Gov. Bruce Rauner says that's not enough.
"Our plan saves far more money and is more reasonable, and frankly if we did both, that'd be even better for taxpayers," he said. "But I believe ours is more reasonable, more fair."
Rauner, a Republican, says he doesn't like that the current law slices retirees' benefits. His proposal affects only state workers, teachers and university professors who are still working.
Under Rauner's idea, they'd either earn smaller pensions going forward, or take a lump sum payout they could use to start a 401(k) style plan.