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updated: 8/26/2013 5:37 PM

Madigan pension fix would save $25 billion less than estimated

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Associated Press

SPRINGFIELD -- The estimated savings on a pension proposal backed by Illinois House Speaker Michael Madigan earlier this year is nearly $25 billion less than originally thought.

That's because the Teachers' Retirement System -- one of Illinois' five pension systems -- says it made a mistake in its calculations. The change was outlined in a Monday letter to a bipartisan panel tasked with coming up with an approach to solving Illinois' nearly $100 billion pension crisis.

Madigan's plan involves across-the-board cuts in benefits. It was originally touted to save Illinois about $187 billion over 30 years. However, the new estimate is about $163 billion in the same period.

Another plan from Senate President John Cullerton, which had union support, was estimated to save roughly $47 billion over the same time frame.

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