There’s a possible problem with the governor’s proposal for state workers’ pension reforms. The governor’s plan offers state workers a choice – They can accept the new terms, with a greater contribution and capped cost of living adjustment, or they can keep their current terms but lose health care in retirement.
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Senate Minority Leader Christine Radogno (R-Lemont) says there’s a third choice: Retire right away. “If it pushes people who are in their early- to mid-50s into retirement, who then get full and free health care coverage, 3 percent annual compounded COLA, that may be a negative on the state budget not offset by bringing in workers at a new lower wage,” she said. The governor estimates that three-quarters of state workers will accept the new terms. Radogno says there’s no bill yet, so her staff hasn’t had a chance to run the numbers. Radogno, speaking Monday at the City Club of Chicago, says in general, she supports the governor’s proposal.