OAKLAND – A plan to consolidate 650 downstate pension funds passed the Illinois General Assembly during last week's veto session, but that plan was met with skepticism from many Republicans that simply don't trust Illinois Democrat fix-it schemes.
State Representative Chris Miller (R-Oakland) says he voted against the Governor’s scheme to consolidate the 650 downstate police and fire pension funds because giving the state control of local pension funds sounded more like a scam than a reform.
“I have heard from many of my local police and fire departments and the idea of turning the management of their pension funds to the state of Illinois is something they have zero interest in seeing happening,” Miller said. “It may be the greatest reform in the history of reforms, but there is no trust in the state to manage these funds. It is just like what President Reagan said, ‘the nine most terrifying words in the English language are I’m from the government and I’m here to help.’”
The House voted to approve the pension consolidation plan (SB 1300), which calls for the 650 downstate police and fire pension funds to be consolidated into two funds – one for police pension funds and another for fire pension funds. The bill also increases Tier 2 pension benefits.
Miller said the purpose behind the legislation is to leverage more money in investments by pooling the pension funds, which could yield more money in returns but could also go the other way depending on the volatility of the market and the type of investments being made. Miller also noted that the public safety pension funds make up just 4.5 percent of Illinois’ combined $270 billion pension and retiree health insurance deficit.
“This is being heralded as a major reform and it isn’t,” Miller said. “The Democrat leaders in the House and the Senate do not want real, comprehensive reforms and so they push these do nothing bills that make people feel good that they are doing something to solve the pension crisis in Illinois. This bill is window dressing. We need real reform – not another scam.”
Last week's House 96 to 14 vote (also sponsored by both Democrats and a Republican) :
The Illinois Senate 42 to 12 vote also had support from Democrats AND Republicans:
