Teacher Pension Reform

Governor Quinn announced his long awaited plan to reform the state's pension system for public employees and teachers.  The plan attempts to close the $83 billion in pension liability that has been accrued over these past years.

Here are the major points of his plan.  First, employees to receive their full pension, would have to work until age 67.  Also, during the lifetime of their employment, teachers and public employees would have to pay 3%, per year, more into the retirement fund than they are currently contributing.  Finally, the proposed legislation would restrict the cost of living adjustments to a much lower rate than is currently the case.

It ought to be noted that the Quinn plan would only affect those currently teaching or who will one day enter the profession.  Current teachers and public employees would not be affected by the above rule changes.

A good number of legislators back the plan as do a number of groups (Civic Committee, Commercial Club) looking to curtail the states pension liability.  The plan is bound to run into roadblocks with the various unions and other like minded organizations.

Over the next few days I will look at the implications of this plan and offer some thoughts, comments and adjustments that ought to be made before it goes into effect.  Suffice it to say, these are major alterations and some of them are rather draconian.

Dick