State lawmakers may not be done with pensions. The law that was enacted at the end of 2013 is soon to come before the Illinois Supreme Court, but State Sen. Matt Murphy (R-Palatine) says waiting to find out if the law is valid could cost the state billions.
“We may not know for two more legislative sessions what the Supreme Court’s ultimately gonna do. Two more years with this thing growing at 10 percent a year as a problem doesn’t strike me as the right approach,” he said.
He says the pensions for teachers and state workers are a financial problem as far as running the state is concerned, and they’re also a philosophical problem: If workers in the private sector have to pay higher taxes to support public sector workers’ retirement, they’ll have a harder time paying for their own retirement.
The governor proposes moving workers to a 401(k)-type program; Murphy says he’s open to that for new government employees.
The pension law, enacted in 2013, keeps the accrual rate for pensions intact, but it raises the retirement age for workers under age 45, and it limits the growth of the annuities during retirement.