Illinois lawmakers have passed a pension reform bill intended to erase the state’s US$100-billion ($106.6-billion) liability.
“This bill will ensure retirement security for those who have faithfully contributed to the pension systems, end the squeeze on critical education and healthcare services, and support economic growth,” says Illinois Governor Pat Quinn.
The bill—which he is expected to sign into law on Wednesday—will cut back cost-of-living increases, give workers the option of freezing their DB plan and moving into a DC plan, and raise the retirement age for workers 45 and younger. The state will also increase its payments into the plan.
Labour coalition We Are One Illinois says the bill’s passage “is no victory for Illinois but a dark day for its citizens and public servants.”
The group wants the governor to veto the bill. If he doesn’t, the coalition says it will “have no choice but to seek to uphold the Illinois Constitution and protect workers’ life savings through legal action.”
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