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Home Illinois News

Batinick says his proposed pension reform would work with Supreme Court’s requirements

Illinois Review by Illinois Review
March 25, 2016
in Illinois News
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Batinick Pensions Presser

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PLAINFIELD – State Rep. Mark Batinick (R-Plainfield) says there is a way out of the pension debacle, despite Thursday's Illinois Supreme Court ruling striking down a pending Illinois law aimed at reducing unfunded pension obligations in Chicago.

“The Supreme Court’s ruling supports my proposal in that it gives pensioners valid consideration. They are free to keep their current pension as it is," Batinick explained. And that's what his plan uniquely offers.

Analyses of the Court-rejected plan involving the Chicago Municipal and Chicago Laborers’ Funds showed the pension to become insolvent by 2024 and 2028. Still they rejected the reform that was pushed by Chicago Mayor Rahm Emanuel to address the severe underfunding of these systems.

The measure on the table would have reduced the retirement benefits of current and future Tier I retirees, mostly by reducing the compounded automatic three percent cost of living adjustment, while also requiring current workers to pay more towards their retirement.

The Supreme Court soundly rejected the adjusted plan requiring the alterations to pensions, and not allowing pensioners constitutional rights to control in the process. The Court did leave a small window open for change, saying, “Nothing prohibits an employee from knowing or voluntarily agreeing to modify pension benefits from an employer in exchange for valid consideration from the employer.”

That's how Batinick says his proposed pension reform plan is different. It allows employees to make decisions on how they will access pension funds. There's more HERE on the plan.

"I’ve spoken with the Commission on Government Forecasting and Accountability and my proposal saves significant money and pensioners keep their constitutional rights,” Batinick said.

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