If pension restructuring in Illinois involves capping pensionable wages, raising the retirement age and limiting cost-of-living adjustments, what’s in it for the affected workers? Gov. Pat Quinn (pictured) says the benefit to workers and retirees would be a requirement that the state contribute its employer share to the pension funds every year, though that is not part of the legislation passed last week in the Illinois House.
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“I do think there will be some perhaps other amendments made. One should be that the state can never ever again not pay what it should pay every year to the pension account. That’s why we’re in this situation,” he said – the situation being an unfunded pension liability of $95 billion. The governor says the state is using the hint of progress on pension restructuring to try to impress bond rating agencies that a resolution is coming. The state will be selling bonds next week.