Breaking News ... Illinois Legislative Leaders Reach a Deal on State Pension Overhaul

Although the details are unknown, Illinois politicians have reached a preliminary deal to solve the nation's biggest public sector pension fund shortfall, estimated to be circa $100 billion.

We'll eagerly await further information due later this week or early next week about next Tuesday's vote.

Illinois Legislative Leaders Reach Deal on State Pension Overhaul says this:

"Illinois legislative leaders reached a deal Wednesday on a plan to overhaul the state retirement system, potentially ending a stalemate over how to address the worst pension crisis among U.S. states.

 

Rikeesha Phelon, a spokeswoman for Senate President John Cullerton, confirmed an agreement was reached between Democrat and Republican leaders at a morning meeting. She declined to release details of the plan, saying the leaders need to brief House and Senate members who are expected to vote on the plan Tuesday.

Ms. Phelon said challenges still remain in lining up the votes to pass the agreement.

 

Illinois legislators for more than two years have debated whether to address long-term pension costs by cutting benefits for state employees, teachers and retirees. In the meantime, the state has seen its credit rating drop to the lowest among U.S. states, driven by concerns over its deeply underfunded pension system.

 

A deal that cuts state pension benefits could face a court challenge from organized labor, arguing benefits are protected under the state constitution."

 

Summing Up

 

Stay tuned.

 

And Happy Thanksgiving, too!

 

Thanks. Bob.