Act to Oppose the Draft Conference Committee Proposal!
Call your legislators toll-free now at 888-412-6570 and tell them to oppose the draft plan by the conference committee. It’s just as bad as SB 1! Click here to call.
UPDATE (November 7): The legislature has adjourned its fall veto session without acting on pension legislation that affects state retirement systems. However, House Speaker Michael Madigan has hinted strongly that the legislature could return in early December.
If the legislature returns, it will almost certainly vote on an unfair, illegal plan to slash pensions that’s just as bad as the Speaker's Senate Bill 1. (Remember SB 1? Click here for a refresher.)
At this point, media reports indicate that the plan includes:
1. The devastating Half-CPI “Diet” COLA cut. This cut replaces the 3% compounded cost-of-living adjustment (COLA) with a COLA that only keeps pace with half the inflation rate. This “Half-CPI” COLA means pensions will always lose value to inflation by design, and senior citizens won’t be able to keep up with rising living expenses. The Half-CPI COLA cuts pensions essentially as deeply as SB 1. (Read more on this below.)
2. Long COLA holidays of up to five years. On top of the Half-CPI “Diet” COLA cut, the plan mandates COLA holidays of up to five years – again, similar to SB 1. These long COLA holidays further erode pension values and harm retirement security.
3. A cap on the amount of salary that earns a pension. This cap ignores the mandatory overtime worked by many public employees, especially those with physically-demanding, high-risk professions.
Conservative Republicans have demanded that the plan must also expand 401(k) plans across retirement systems (and thereby undermines defined-benefit pensions), increase retirement ages, and worsen the Half-CPI COLA cut to be more like SB 1. Some Democrats appear willing to bend to these extreme demands and punish working families and retirees for a problem they did not cause. Top legislative leaders are discussing incorporating these changes into the draft conference committee plan.
These details may still change, so keep up to date by watching our website.
Our coalition fact sheet on the plan is below, as well as our brief on the harms of a Half-CPI COLA. Read this information, then make the call toll-free at 888-412-6570 and tell your state representative and state senator to oppose the draft conference committee plan or any plan not supported by We Are One Illinois!