Rep. Jesiel Sponsors Comprehensive Pension Reform Proposal

SPRINGFIELD - State Representative Sheri Jesiel (R-Winthrop Harbor) has joined House Republican Leader Jim Durkin and more than 20 House colleagues to offer comprehensive pension reform legislation. House Bill 4027 would provide significant savings for taxpayers to address Illinois' unsustainable $130 billion unfunded pension liabilities. The legislation is modeled after legislation introduced in a bipartisan manner in the Senate.

House Bill 4027 includes:

• Senate President John Cullerton's "consideration model" that would require members of TRS, SURS, SERS, GARS, and CTPF to exchange their Tier 1 COLA for the right to have future raises to be counted as pensionable, or keep their COLA and sacrifice future raises as pensionable. This concept previously received union support by the We Are One Coalition;

• Closes new member participation in the General Assembly Retirement System (GARS);

• Offers Tier 1 TRS, SURS, SERS and GARS employees the option to participate in a defined contribution (DC) plan;

• Creates a voluntary Tier 3 Hybrid defined benefit/defined contribution plan for new Tier 2 employees under TRS, SURS, and certain SERS members who do not participate in Social Security.

"Pension reform is essential to solving Illinois' long-term financial problems," said Jesiel. "Through this legislation, we can achieve short-term savings of $2.25 billion to help close the current budget deficit and put us on a path to address the unstainable $130 billion unfunded pension liabilities that are driving residents out of Illinois every day. The bill is consistent with bipartisan legislation in the Senate and the Governor is prepared to sign it. I hope Speaker Madigan will work with us to take this important step toward a balanced budget."