Together with a number of other colleagues, Rep. McDermed has introduced legislation in the House to implement reform to stem the state’s ballooning pension liability. Illinois’ pension liability has spiked to $130 billion. House Bill 4027 would provide significant savings for taxpayers and grant Chicago Public Schools $215 million for a one time pension parity payment. Filed by House Republican Leader Jim Durkin, the bill is modeled after bipartisan legislation previously introduced in the Senate.
Specifically, HB 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
- Provides a one-time normal cost payment to the Chicago Teachers’ Pension Fund of $215.2 million for FY 17
- Closes new member participation in 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