SPRINGFIELD, Ill. — A union-backed approach for dealing with Illinois’ nearly $100 billion pension crisis is getting its first full airing.
A Senate committee will hold a hearing Wednesday on the new legislative proposal.
The measure gives workers and retirees a choice of benefit packages. For example, if workers choose to receive health insurance in retirement they would get smaller cost-of-living increases. Those who choose to keep 3 percent cost-of-living increases compounded annually wouldn’t get health insurance.
Senate President John Cullerton says the plan saves money and would survive a court challenge.
Critics say the cost savings may not be enough to properly address Illinois’ worst-in-the-nation pension shortfall.
Senate Democrats opted to move forward with the union-supported proposal over a plan approved in the House last week that would unilaterally cut retirement benefits.