Union Objects To Treasurer’s Pension Reform Plan

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.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS Radio and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)

  • southside

    Wow, what a stunner that AFSCME would violently oppose this. Keep pushing for reform, Mr. Rutherford, and disregard thier nonsense about it violating the Illinois Constitution. Only Pat Quinn and Cullerton are stupid enough to believe that lie.

  • Nelson says ha ha

    Greedy people

    • Ken M

      Although a number of politicians, and connected individuals have took advantage of the loop holes with the current pension system, probably 80% of the other state employees, who have normal job and paid into the system for twenty five to thirty plus years have paid and expected to have a retirement package, per their union contract.

      Reform is need big time, but it should be dependent on the amount of money and time of service, not just across the board changes. For employees who have contributed for over fifteen or twenty years should be exempt and the rest would fall in line.

  • Just your average worker

    The taxpayer has been not represented for so long the costs are out-of-control. When are the state representatives going to understand this? Oh, they are the ones that let this happen in the first place.

    There is a reason that very few private companies have pensions. THEY COST TO MUCH.

  • Tom

    The state needs to net present value all pensions against weighted average income. Then tranche the payments. And authorize the funding. So if there is not enough money left over for the $100k/year folks then they can sue. And the legislature can then authorize the payment to either them or next of kin.


    The unions don’t want any changes to their gravy train. It is hard working people like you and me who pay for these pensions and i am tired of it. they have it easy, work slow, paid days off, paid sick days, don’t show up to work,etc. why change this? I blame the crooked politicians for letting this system get out of hand.Pay more for their pensions not a chance as long as idiots like you and me keep paying the vast portion of it. They want to maintain the status quo no matter what.

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