New bill introduced to solve Illinois' pension problem

By WEEK Reporter

February 27, 2013 Updated Feb 27, 2013 at 8:20 PM CDT

SPRINGFIELD, Ill. -- There's a new pension-reform package trotted out by a bi-partisian group of lawmakers. Backers say it could save the state $2-billion a year.

House GOP leader Tom Cross says the bill would eventually get the state out of the Pension business for teachers and university employees --shifting their retirements to a 401K system.

Universities and school systems would be responsible for any matching contributions.

There are other changes for state employees.

"Two percent contribution by employees, a cap on salaries, a billion dollar utilization of bond payments we're making down the road to help reduce the liability. We have COLA adjustments at 25-thousand dollars, capped at three-percent and we also have salary caps and some age changes," Rep. Tom Cross, House GOP Leader.

Other, more restrictive pension reform proposals from House Speaker Mike Madigan could be up for debate Thursday.

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