A revamped proposal to tackle the state’s pension problems has been approved by an Illinois House committee. The proposal includes a freeze on cost of living increases and a cap on how much pension income would be subject to cost of living adjustments once they resume. Employees would pay more into their pensions and pension-eligible salary would be based on an employee’s current salary or the Social Security wage base – whichever is higher.
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The proposal now goes to the full House for a vote. The bill sponsor, State Rep. Elaine Nekritz (D-Northbrook), told reporters after the hearing she is still trying to determine if the plan has enough support to pass the House. The legislature has until Wednesday to pass this latest pension reform plan.