Pension reform constitutional amendment

BETA
Introduced Feb 22, 2021
Status: Introduced

64%

36%

Summary

Modifies the pension clause in the Illinois constitution to allow for changes that would slow the growth in benefits for current workers and retirees, but still protects benefits earned for work already performed. Unlocks pension reform to make the system more solvent for retirees and more sustainable and affordable for taxpayers.
Amends the Illinois pension clause to create a distinction between “earned and payable benefits” and future benefit accruals, bringing Illinois pension protections in line with the “anti-cutback rule” in federal law.

Clarifies that nothing in the pension clause, state contracts clause, or any other provision of the state constitution shall be construed to limit the power of the General Assembly to make changes to future retirement benefits, including for current workers and retirees.

Opens the door to statutory reforms to future pension benefit accruals, unlocking a “hold harmless” pension reform plan developed by the Illinois Policy Institute that an independent actuarial analysis found would save the state $2 billion per year in pension contributions and more than $50 billion by 2045 while fully eliminating the debt over that time.

Keeps our promises to public workers and retirees by allowing reforms that would prevent pension fund insolvency, replacing an empty promise with a financially secure retirement system.

Last Action

Referred to Rules Committee