General Assembly Slashes Pension Benefits

Senate Bill 1946, legislation that makes drastic pension cuts for new teachers and public employees, passed the House of Representatives and the Senate last week. The bill now goes to the governor. A fact sheet about the bill is available online.

Among the provisions of SB 1946 is an increase in the retirement age for new hires to 67 with 10 years of service. Final average salary will be calculated using the eight highest consecutive years out of the last 10. The Cost of Living Adjustment (COLA) will be reduced to 3 percent or half of Consumer Price Index, whichever is less. The maximum pensionable salary will be $106,800. The bill also mandates a $400 million pension holiday in Fiscal Year 2011 for the Chicago Teachers Pension Fund. A press statement from IFT President Ed Geppert, Jr. is available on the IFT website.

The IFT will now determine next steps in the aftermath of this vote. How a legislator voted on SB 1946 will weigh heavily in the IFT's endorsement decision for that candidate.

(Inside IFT 4/1/10)