By Illinois Radio Network
SPRINGFIELD – A state Senator who plans to retire soon says lawmakers have to lead the way on pension and retiree benefit reforms.
Illinois taxpayers are on the hook for $130 billion of unfunded pension liability with the worst funded public sector pensions of any state. Then there’s the fully taxpayer subsidized health care state government retirees get on top of that. Both promised benefits have been enshrined in the state constitution by the Illinois Supreme Court.
State Senator Tim Bivins, R-Dixon, said state lawmakers also get those perks.
“As things stand now, legislators get free health coverage after 8 years,” Bivins said. “So they can be here 8 years, retire or leave and get free health coverage.”
That needs to change, he said. Bivins’ legislation would require future legislative retirees in the system to pay for half of their health benefits in retirement.
“I don’t know of too many private sector [employees] or others that get free health coverage after they leave in just 8 years, so I think it’s the fair thing to do,” Bivins said.
After joining system, he was surprised what he found.
“When I came here the pension discussion hadn’t really heated up, although the issue was there,” said Bivins, who joined the Senate in 2008. “As it heated up I looked into getting out, well I couldn’t get out.”
His measure would give the option to current retirees to opt into paying half of their health costs. Bivins added his measure is meant to save money and show other public sector workers that lawmakers are serious about pension and benefit reform.
“If we’re talking about other people’s pensions, other people’s benefits and we’ve got the issue of the state constitution, then you have to look at other areas and different directions to try to correct this,” Bivins said.
The measure passed out of committee with little debate last month and heads to the Senate floor for consideration. GARS is the worst funded of all the state’s systems. All combined, taxpayers are on the hook for more than $200 billion in pension and retiree healthcare liabilities.
