ILLINOIS NEWS NETWORK
There are a lot of different plans to reform Illinois’ increasingly underfunded public pension funds, but one idea has been under lawmakers’ noses for nearly 20 years.
A recent report from Pew Charitable Trust for 2015 pension liabilities across the country shows Illinois’ then-$111 billion unfunded liability made up about 10 percent of the country’s overall liability of more than $1.1 trillion.
The latest numbers have Illinois’ liability at $130 billion and climbing. That’s up nearly $20 billion.
It has come to the stage where many are concerned about their pension savings, and some are wondering if it is time for them to consider reinvesting their 401(k)-style savings into another format, such as the IRA investment schemes (https://www.sofi.com/roth-ira-calculator/) to help ensure they can retire at a fair age.
State Rep. Jeanne Ives, R-Wheaton, said extending a 401(k)-style type option, which has been available for members of the State University Retirement System for nearly 20 years, to other pension funds is a good step forward.
“People have already self-selected it and our plan [House Bill 2405] basically says ‘new hires, you’re part of the SURS 401(k)-style plan and if you’re Tier II, you can opt into it, move your contributions out of Tier II, move them into here and you can own it day one,’ ” Ives said.
Other previous attempts at reforming growing pension costs have been challenged and ultimately shot down by the state Supreme Court as unconstitutional.
State Rep. Sheri Jesiel, R-Winthrop Harbor, said Tuesday it’s beyond time to get reforms in place that stick.
