Gov. Rauner Attempts to Reduce End-of-Career Pension Spiking for Teachers, Administrators

Much has been made of Gov. Bruce Rauner’s wish to move most categories of public employees into a Tier 2 pension system with reduced benefits and the fact that he is banking on $2.2 billion in savings from doing so in the budget year that starts in 2016.

There’s practically no chance of that happening and producing the savings he’s banking on by July 1. Rauner’s staff also is negotiating a new contract with the American Federation of State and County Municipal Employees and his budget proposal also questionably counts on collecting another $700 million in savings from health care coverage for union workers, though there’s certainly no contract agreement in sight yet.

Of course, budget proposals from governors are just that and typically are starting points for discussion and negotiation. That certainly will be the case with Democrats firmly in control of both chambers of the statehouse.

Rauner’s pension plans also include a significant adjustment to the practice of end-of-career pension spiking for teachers and school administrators the Daily Herald has been shining a light on for years.

Read more about the Daily Herald’s report and Rauner’s efforts to tamp down end-of-career pension spiking at Reboot Illinois…

And a new study by Young Invincibles, a non-profit organization focused on empowering young Americans with information on education, healthcare and jobs, warns of the major consequences continued disinvestment by the state in higher education will have on Illinois’ future college students. Do you think additional cuts to higher education funding is a necessary sacrifice given the state’s fiscal crisis?