Illinois lawmakers approved a landmark pension reform package Tuesday that would cut retirement benefits for teachers, nurses and other retired and current state workers.
The legislation comes after years of debate on how to fix the state’s ailing retirement system — considered the most troubled in the country.
The plan will reduce annual cost-of-living increases for retirees, raise the retirement age for workers 45 and under, and impose a limit on pensions for the highest-paid workers.
Employees will contribute 1% less out of their paychecks under the reform, while some will be given the option to contribute to a 401(k)-style plan.
Legislative leaders of both parties crafted the deal, which they say will save $160 billion over the next three decades — savings desperately needed to help fill the state’s $100 billion pension shortfall.
