SPRINGFIELD, Ill. — Standing before more than 2,000 angry union members Wednesday, Gov. Pat Quinn canceled his call to increase pension costs for Illinois teachers, university staff and state employees.
SPRINGFIELD, Ill. — Standing before more than 2,000 angry union members Wednesday, Gov. Pat Quinn canceled his call to increase pension costs for Illinois teachers, university staff and state employees. The Democratic governor had proposed raising workers’ pension contributions by 2 percent in an effort to cut government spending. He paired the increase with a plan to create a two-tiered retirement system that offered fewer benefits to new employees. Quinn said he gave up on the unpopular idea of higher pension contributions to help his push for a two-tiered retirement system, which will be a hard sell even without the increased pension costs. The proposals were part of Quinn’s plan to close a budget deficit expected to top $11.6 billion in the upcoming fiscal year. The plan also includes raising income taxes and trimming spending in some areas. "In hard times, we have to band together for the common good," Quinn said to members of the Illinois Education Association. Before his announcement, teachers peppered the governor with criticism, interrupting his speech and blaming him for the state’s dire budget situation. One said he should cough up more for his pension before increasing theirs. Under Quinn’s proposal, teachers would have contributed 11.4 percent of their paychecks to retirement, up from 9.4 percent. Members of the other four retirement systems, which cover state employees, judges, legislators and state university workers, faced similar increases. The change won’t mean any immediate extra costs for the state, said Quinn’s budget office. Instead, sticking with the lower employee contributions will add to the state’s long-term pension obligations that will have to be paid in years to come. Quinn wants to approve a budget by May 31, but officials seem far from a consensus on how to close the deficit. His concession on pension costs did not mollify the teachers union on reducing retirement benefits. "They are very concerned about what this does about who is going to want to teach in Illinois in the years ahead when other states have pension systems that are fully funded and have better benefits," said IEA President Ken Swanson. ______ Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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