The state’s highest court deemed the most recent pension reform bill, SB 1, unconstitutional. That means politicians must work together to find an intelligent and attainable alternative. The SBAC supports HB 4427, a bi-partisan pension bill sponsored by Representative Mark Batinick. Under this proposal, eligible retirees will be offered the option to take a lump sum payment in exchange for all or a portion of their annuity, at a 25% discount to the state. Only those retiring will be presented this option.
Significantly, this legislation provides a voluntary and constitutional approach to addressing the state’s pension obligations, while giving retirees greater control over their money.
This proposal will not bridge the full $111 billion shortfall. But it will save Illinois billions of dollars. It should be considered by every politician in Springfield and used as a springboard for further discussions on tackling Illinois’ pension crisis.