UI institute compares pension proposals
A University of Illinois institute report says neither of two legislative proposals that seek to address pension underfunding will balance the state's budget.
And the plan that has the greater likely impact also is likelier to face court challenges, says the Institute for Government and Public Affairs.
"Illinois will continue to have serious fiscal problems even if efforts to reduce pension obligations are successful," the authors of the report said. "Of course, it is also true that the state's budget gap will be even larger if cost-saving pension reform efforts fail."
Senate Bill 1, called the Madigan plan for Speaker of the House Michael Madigan, would save the state $2 billion to $3 billion annually, the institute says. Senate Bill 2404, the Cullerton plan (for Senate President John Cullerton) saves from $500 million to $1.5 billion annually.
The IGPA report and other related information is available online at igpa.uillinois.edu/pensions.