Wednesday, November 9, 2011

Illinois House Committee Passes Pension Bill

SPRINGFIELD, Ill. (AP) - An Illinois House committee has approved a measure to change pension costs and benefits for state employees. The bill heads to the full House where its fate is uncertain. It would create three different "tiers" of pension benefits and costs. One of those is a 401k-style "defined contribution" plan. Supporters say the state needs to change its pension plans because it can't afford them. Unions strongly disagree with the changes being proposed. American Federation of State, County and Municipal Employees executive director Henry Bayer says the bill is asking workers to pay more. Language in the Illinois Constitution also bars reducing retirement benefits for current employees. House Republican leader Tom Cross, a sponsor, criticized the unions for not offering an alternative while acknowledging the state has a pension problem. - http://goo.gl/ZyKgd