(The Center Square) – The taxpayer cost of enhancing Tier II pensions in Illinois isn’t known as legislators hear of a proposed change they could take on in the new year.
For months, members of the General Assembly have been holding hearings about what some say is the need to enhance benefits for some public employees hired after 2011, because their benefits may not be in line with standards set by Social Security. There were also arguments that the benefits are not enough to attract and retain talent for the public sector.
Groups of labor unions took part in Friday’s Illinois House Personnel and Pensions Committee, pitching a measure to increase the wage cap, change the cost of living adjustments, and restore the Tier I retirement age for Tier II public employees hired after 2011.
Pat Devaney with the We Are One coalition said the taxpayer cost isn’t known.
“We stand ready to work with the leaders in the General Assembly and the governor’s office to identify revenue to pay for our proposals when the costs are known,” Devaney told the committee.
It’s also unclear what it could cost to comply with Social Security standards if nothing is done.
During an Illinois House committee Friday, Pat Devaney with the We Are One Coalition and state Rep. Steven Reick, R-Woodstock, discuss the unknown taxpayer cost of pension enhancements. Separately, Gov. J.B. Pritzker and Wirepoints President Ted Dabrowski discuss pensions.
“I’ve seen several estimates, let’s just call it three to $6 billion total over a 20-plus year period,” Gov. J.B. Pritzker said Thursday at an unrelated event. “So that is something that has to be done.”
State Rep. Steven Reick, R-Woodstock, said without knowing the costs, they need to focus on the debt that is known.
“And I think it gives the taxpayers, people who are actually paying the bill, an understanding of what we are doing about this debt because this debt is hanging over us like the Sword of Damocles and it’s never going to go away,” Reick said during the committee hearing Friday.
The Illinois Commission on Government and Accountability reports the state’s unfunded liability grew $1.5 million last year to $143.7 billion, the second highest since it was $144.2 billion in 2020.
Separately, Wirepoints President Ted Dabrowski said the conversation should be about cutting the costs, not increasing benefits.
“Some of these Tier II plans increase costs for taxpayers by billions, some as much as $80 billion, and so we’re not going to fix Illinois until we fire a bunch of those politicians that refuse to talk about pension reform,” Dabrowski told The Center Square.
Dabrowski advocates for a constitutional amendment to allow for pension benefits to be reduced.
This article was originally published at www.thecentersquare.com
