The proposed pension plan by the Illinois House and Senate is set to cut the hundred billion dollar debt the pension plan has seen for the past two decades, according to reports.
The proposed plan, which will be historic if it is passed, will create a plan for lawmakers to close up the 100 billion dollar pension shortfall. The plan was narrowly approved by members of the General Assembly.
Lawmakers of Illinois say that the plan will save more than 160 billion dollars over the course of the next three decades.
The bill has many shortfalls, however. It requires workers to retire later than 65, ignores the cost of living increases, and creating a 401(k) plan is only available for some workers. Labor unions within the state plan to file a suit, saying the bill is “unconstitutional.”
Due to the disastrous state of the pension system, Illinois is considering ending the public pension system. The bill now moves to Gov. Pat Quinn to sign.