New pension plan advances in Illinois legislature

By WEEK Producer

June 17, 2013 Updated Jun 17, 2013 at 10:17 PM CDT

SPRINGFIELD, Ill. -- Another pension plan has been advanced, just two days before the Illinois General Assembly is due back in Springfield to deal with pension reform.

The proposal comes from the Illinois Policy Institute and Republican members of the House and Senate.

Their plan, unveiled Monday, moves current and future government workers into a 401(k)-style system.

The plan’s backers say employees would get a 7 percent state contribution match if the employees put in 8 percent of their paycheck.

"It gives a generous 7 percent employee match for every paycheck, every day, not a promise to be kept later. A promise kept now," said John Tillman of the Illinois Policy Institute. "This reform is generous and would not force a movement into social security elgibility."

Tillman says their proposal is constitutional and would immediately cut Illinois' $100 billion unfunded pension liability by half.