Illinois’ Tier 2 is a great retirement benefit for long-term state workers. But those who don’t spend their careers in government could be better served by the flexibility and portability of a defined contribution plan.
A local referendum would tell state lawmakers how Lemont Township voters would like to fix $22 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
A local referendum would tell state lawmakers how Palos Township voters would like to fix $83 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
A local referendum would tell state lawmakers how Winfield Township voters would like to fix a nearly $50 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
A local referendum would tell state lawmakers how Homer Township voters would like to fix $7 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
Career state workers receiving a Tier 2 pension stand to retire with significantly higher payouts than Social Security would deliver.
Without careful evaluation of whether Illinois’ pensions for newer employees are running afoul of federal rules or what the penalties would be, spending $78 million from the state’s budget is premature and wasteful.
Members of the Illinois Senate Pensions Committee heard from pension administrators and government unions about the need for more benefits from retirement systems that are already broken. The Illinois Policy Institute was there, too, to represent taxpayers’ interests.
Pension experts projected state lawmakers’ plans to drastically expand benefits for newer employees would add $60 billion to the state’s pension liability. Illinois is already $143.7 billion in the pension hole.
Illinois’ five state-run retirement systems need $16.8 billion in funding for the coming fiscal year, but state lawmakers only plan to pay $11.7 billion. That’s $5.1 billion less than needed for plans already approaching insolvency.
Nationwide analysis from the Equable Institute reveals Illinois state pensions remain fiscally unstable, underscoring the need for systemic reform.
Former Illinois House Speaker Michael Madigan collected a pension worth $158,000 in 2024 while facing a federal corruption trial in Chicago. Depending on the verdict, taxpayers could be on the hook for another $1 million to cover his remaining benefits.