Rutherford: Pension reform critics should ‘take it to the courts’

State Treasurer Dan Rutherford says critics of his pension reform plans should challenge them in court. (WJBC Stock Photo)

State Treasurer Dan Rutherford says the union criticizing the idea of having state workers contribute more money to their pensions doesn’t seem to have all the facts.

The American Federation of State, County and Municipal Employees contends increasing worker costs would violate the Illinois Constitution.

Rutherford tells WJBC, offering employees a choice in pension plans makes it legal.

“Once (the union members) understands it, realizes that it really is a pretty fair opportunity, it becomes a choice. It’s truly something that has to happen to have these state pensions systems be sustainable for future to be able to pay benefits for the people that are in it,” Rutherford said.

Rutherford has said he’s open to the idea of having two pension systems for state workers. One option would guarantee monthly checks possibly at a higher cost for workers. The other would be similar to a 401(k)-style retirement plan.

Rutherford says he thinks the state would be on firm legal ground if it were to adopt pension reforms that would increase what employees would have to pay.

“My take on it is, take it to the courts. Go all the way to the Illinois Supreme Court and test it out because if that’s the reason you’re not causing something to go into effect because you questions whether or not it’s constitutional, my contention is put together  the best arguments, put together the best legislation, put together what’s the right thing to do and run it all the way to the Illinois Supreme Court,” Rutherford said.

He expects state lawmakers will come up with pension reform legislation in the next two weeks.

Click here to listen to Scott Laughlin’s interview with Rutherford.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.