Union Objects To Treasurer’s Pension Reform Plan
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SPRINGFIELD, Ill. (WBBM/CBS) – The union representing many state employees disagrees strongly with Illinois Treasurer Dan Rutherford’s plan to require state workers to contribute more to their pensions.
As WBBM Newsradio 780’s David Roe reports, the American Federation of State, County and Municipal Employees said Wednesday that making workers pay more would be a violation of the Illinois State Constitution, which forbids cuts to pension benefits for current employees.
LISTEN: Newsradio 780′s David Roe reports
Rutherford is proposing two pension systems for state employees. One would be a 401(k)-style investment plan, the other a standard plan in which employees would be guaranteed monthly checks.
One way to entice employees to the 401(k) plan, Rutherford says, is to raise employee costs to the standard plan. Rutherford has not called for that, but his office says he is open to the idea.
Illinois pension systems have a gap of $79 billion between assets and long-term costs.
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