The first two weeks of January have carried some significant movement in pension reform. The “Big News” being Governor Quinn’s pledge for pension reform this spring despite this being an election year.
Governor Quinn as asked both parties to form a panel to agree to the resolution of the “pension problem.” The governor said it is time to resolve the pension issue “once and for all.”
The governors’ pledge comes just as the state’s credit rating has been lowered once again by Moody’s, a bond rating agency. The primary reasons cited for the downgrade are the unfunded pension liability and the increasing annual pension funding required by the state along with the inaction of the Illinois legislature in reforming the states’ pension plans. The state’s low credit rating (the lowest of all states) makes it difficult and expensive for the state to issue bonds for financing projects and managing the state budget.
Also noteworthy, Senate President John Cullerton has decided to take an active role in pension reform. Previously Cullerton’s position has been that any pension reform would violate the Illinois Constitution. Cullerton said recently that the current proposal (SB512) would be a workable solution with union agreement.
Finally, The Illinois Education Association has recently formed a task force to formulate a pension reform alternative to bring to the negotiating table.
There has been a noticeable movement by stakeholders resolving that there will be pension reform soon.
For more information about pension reform and what you can do to minimize any impact it will have on your retirement, visit the Teacher Resource Center.
Also, be sure to view our “SB512 Impact Calculator” to see exactly how pension reform will impact your retirement.
You need to take action now whether you plan to retire in 2 years or 25 years. If you don’t, you will be letting the politicians and state government make your retirement plan for you.
SeCura Partners has designed a retirement plan specifically for teachers. Our plan makes sure you get the retirement you thought you were getting, regardless of pension reform. Contact us today so we can help you.