SPRINGFIELD – A union-backed proposal to curb the state’s rising pension costs passed out of the Illinois Senate earlier today with bipartisan support. The measure, Senate Bill 2404, saves the state up to $46 billion over the next 30 years and guarantees 90% funding of the pension systems by 2045.
State Senator Michael Hastings (D–Orland Park) was one of 40 senators who supported the measure.
“I am tired of reading about teachers being laid off, health care facilities closing and underfunded mental health programs as a result of deep cuts in our budget because of our skyrocketing pension costs,” Hastings said. “If the courts throw out the proposal, we don’t save any money and we will see another year of major cuts to vital state services. It is imperative that we pass a constitutionally-sound measure and I think this is the plan.”
SB 2404, which has received backing from top union officials, offers employees and retirees choices, such as keeping annual 3 percent compounded cost-of-living increase on pensions in exchange for giving up access to retiree health insurance.
The measure now moves to the House for consideration.