A Bloomington State Senator says he will carefully read the Supreme Court opinion on the Chicago pension case. Justices once again ruled against attempts to diminish pension benefits.
The plan pushed by Mayor Rahm Emanuel reduced cost-of-living increases and required larger employee contributions. The city argued benefits in the funds affecting civil servants and laborers were preserved because it also required a steep increase in city contributions. The Democratic mayor says he's committed to "ensuring employees and retirees have a secure retirement without placing the full burden on Chicago taxpayers." Emanuel says the city will continue contributing what state law requires, $180 million in 2015. Without a fix the city says both pension accounts will be broke within 15 years.
This decision has implications for state workers as well. Republican Senator Jason Barickman says there are still several tools to use in tackling the state pension funding problem other than tax hikes.
"Whether it's asking individuals to contribute more or maybe it's a look at the amortization table, the cycle that exists, I think there are options out there that the legislature will consider," he said.
Barickman says there may also still be allowable ways to reduce pension benefits if workers are allowed to choose the long term reduction in return for some near term consideration.
"I think generally that concept is one that has some thoughtful ideas to it that we'll see the legislature try to embrace. I don't know what that'll look like," Barickman said.
Democratic Senate President John Cullerton has made some proposals that involve the use of the 'consideration' principle.
As an attorney, Barickman says contract law prevents the state from holding a figurative gun to workers heads to force acceptance of such a choice.
Groups representing state workers argue the state should pay what it promised in spite of decades of lawmaker decisions to avoid adequate pension funding.
The state pension systems are the worst funded in the nation.
