Gov. Rauner proposes new Illinois pension overhaul
SPRINGFIELD, Ill. -- Gov. Bruce Rauner is proposing a new overhaul to Illinois' underfunded pension system that he says could save more than $2 billion.
The Republican delivered his budget speech Wednesday.
Rauner says reducing pension costs must be Illinois' top priority.
He wants to move workers to a less-generous pension plan lawmakers approved in 2010 for new hires. Workers hired before 2011 also could have the option of moving to a 401(k)-style plan. Police and firefighters could keep their current benefits.
Lawmakers passed a pension overhaul in 2013. But labor unions and retirees sued, arguing it was unconstitutional. The Illinois Supreme Court is considering the case.
Even if Rauner could get a new plan through the Legislature, it's unlikely savings would be realized in the next fiscal year because of legal challenges.