House OKs consolidation of 650 local pension programs
SPRINGFIELD, Ill. -- The Illinois House has approved Gov. J.B. Pritzker's plan to consolidate hundreds of local pension programs covering police officers and firefighters to boost investment returns and save administrative costs.
The plan by Democratic Rep. Jay Hoffman of Swansea was OK'd 96-14. It would create two statewide pension accounts - police and fire - out of nearly 650 municipal plans. Combined the two funds would have $15 billion in assets. Democrat Pritzker says the greater investment power could generate an additional $2.5 billion over the first five years.
Hoffman says the plan would reduce costs on local governments struggling to fully fund pensions while paying for city services.
The legislation moves to the Senate with one day left in the Legislature's fall session.
The bill is SB1300.