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Gov. Quinn: Fix Pensions ‘Once And For All’

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Gov. Pat Quinn (Credit: CBS)

Gov. Pat Quinn (Credit: CBS)

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SPRINGFIELD, Ill. (AP) — Illinois Gov. Pat Quinn pledged Tuesday to reform the public employee pension system “once and for all” this spring.

The Democratic governor said he’s willing to take on the ailing program in a year when every seat in the Legislature is up for election because the state’s contribution to five retirement plans is eating up more and more of the state budget.

The system is short about $85 billion what it will eventually need to cover all its liabilities. But repair could mean reducing benefits for state employees, something that’s highly unpopular with powerful unions who contribute money to political campaigns.

“This is a major mountain to climb this year and I’m willing to lead the expedition,” Quinn told reporters in Chicago. “That’s exactly what we’re going to do. We’re going to get this done once and for all.”

Quinn wrote to legislative leaders on Monday, asking them to make appointments to a panel he’s setting up to recommend a legislative fix. Most leaders have already tabbed their point people to work with Quinn’s staff and agree with him that, election or no, pensions should be a focus when lawmakers return later this month to Springfield.

“It should have happened a long time ago,” said House Republican Leader Tom Cross, of Oswego. “I hope it’s real, I hope it’s not something for delay purposes, but real and substantive and not nibbling around the edges and saying, this is pension reform.”

State pension contributions have suffered from a weak economy and years of underfunding by lawmakers who sometimes skipped payments to use money elsewhere. Quinn released a report last week showing that what the state owes to pensions will by 2015 grow to $5.9 billion, or nearly 18 percent of all revenue available.

“It’s been a priority and will continue to be a priority,” said Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago. “There have been pretty significant changes and there are other ones pending that don’t have broad bipartisan support.”

A reform law took effect a year ago that raised the retirement age for new employees and capped their overall pensions, despite protests from unions that pensions are not overly generous and that employees have faithfully contributed their portions while the state sometimes reneges.

Cross took a bill to the House floor last spring that would give public employees a choice — keep their current pensions and pay more, or accept reduced benefits or a defined-contribution program. Despite support from Madigan, it has not gotten a floor vote.

Democratic Senate President John Cullerton believes the measure is unconstitutional and benefits for current employees can only be changed through contract bargaining. Spokeswoman Rikeesha Phelon said the Chicago Democrat plans to name a representative to the Quinn panel shortly and is willing to talk about how a proposal similar to the Cross plan “could create great cost controls by working with unions, not against them.”

Minority Leader Christine Radogno, R-Lemont, supports Cross’s idea, spokeswoman Patty Schuh said. She said Quinn’s call for a study committee shows a “renewed effort at collaboration.”

“Illinois cannot continue to stick its head in the sand and not address it,” Schuh said. “We need pension reform that is fair and affordable and is constitutional in the end.”

(TM and © Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View Comments
  • Joe in Missouri

    A politician telling the truth? ROTFL

  • NICK

    PAY YOUR STATE EMPLOYES THEIR PAY RAISES FIRST AND FORMOST. THEN CUT YOUR QWN PENSION INSTEAD.

  • XAVIER BUNCKLEY

    CUT ALL THE STATE WORKERS N CITY WORKERS PAYS IN 1/2 (IF U CAN CALL WHAT THEY DO WORK) AND URS GOV, BY 1/2 AS WELL……. THEN THE STATE WILL HAVE MONEY,

  • da truth

    so cut peoples pay and benifits that actually work and pay taxes,but dont cut welfare?

    • XAVIER BUNCKLEY

      WELFARE SHOULD BE THE FIRST TO BE CUT, DEFINATLY………..

  • Afro

    This is a major mountain to climb this year and I’m willing to lead the expedition,”

    When Quinn the eskimo gets back from his expedition, there won’t be anyone here jump for joy!!!!!!!!!!!!!

    • Afro

      P.S> Do Illinoids a big favor. Climb that mountain and throw your self off of it

  • Sickened

    Put an end to retirement at 50. Nobody in the private sector gets that, no less 75% of their pay. Don’t allow villages to let their employees retire early with huge bonuses so they can shift salaries to the state like Hanover Park recently did or like Schaumburg did to then bring the police chief back as a consultant. Also put an end to these huge retirements. Max retirement benefit should be what the normal working man or woman gets, not 100k plus for gym teachers.

    Unfortunately there’ll be no real reform as they’re the ones benefiting from these sickening pension benefits that are bankrupting the state and driving businesses and residents to flee like it was Sodom and Gomorrah.

    Remember, there’s no layoffs for public workers near 50 & over. They just retire.

  • PG

    The politicians in Illinois continue to amaze me. They created this mess with the pension plans by agreeing to whatever their union friends demanded, and now they want to go on a crusade to fix the mess that they made. If they do fix it (I seriously doubt that they will), they’ll view themselves as heros. Unreal!

  • WASTE OF TIME

    Stop giving state senators and state reps full pensions and ins bene`s after just one term in office,
    TO BAD THE GOV WON`T READ THESE POST`S ANYWAY!!!!!

  • southside

    Quinn is lying. He knows the dems in the legislature will do NOTHING in an election year, becasue the union puppetmasters won’t support their campaigns.
    That way, Quin says he tried…not my fault.

  • Just the Average Joe

    I have come to believe the only way to fix this mess is to shut down the pension plan at the end of the year, and pay out all benefits accrued up to that point as promised. Start the new year with every single state worker in a 401K type program that the state provides a match. Also, require all employees to contribute to SS. These politicians simply don’t have the credibility to make the necessary hard decisions that will impact the futures of so many people.

  • http://www.championnews.net/2012/01/11/gov-quinn-fix-pensions-once-and-for-all/ Champion News | Gov Quinn: Fix Pensions ‘Once and For All.’

    [...] Click here to read this article from CBS Chicago. Share| Filed Under: Economy & Tax/Spend, Public Pension Crisis, Top Stories Tagged With: governor pat quinn, IL Pensions [...]

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