Several pension reform bills were acted upon last week. This week, more movement occurred as the momentum for final passage of a pension reform measure continues to build. The House of Representatives approved HB 1165 (Madigan, D-Chicago) Thursday which would limit the Cost of Living Adjustment (COLA) for the Teachers’ Retirement System (TRS). The COLA would be frozen until five years after the employee’s retirement or age 67. The COLA would be a flat 3% of the first $25,000 of the pension or $750 per year. The House has already approved other bills that would cap the pensionable salary amount and increase the retirement age on a graduated scale. The Senate has not acted on any of the bills the House has sent over.
The Senate this week approved an amended SB 1 (Cullerton, D-Chicago). The bill now only affects active Tier I members of TRS and would not force any changes to current annuitants of TRS. The bill would:
HB 1277 (Senger, R-Naperville), for the pension systems, changes the actuarial cost method from “projected unit credit” to “entry age normal.” The bill was approved by the House Personnel and Pensions Committee and was sent to the House floor for further consideration.