The Path Forward on Tier 2
Sen. Robert Martwick (D-Chicago) testifies in a Senate committee in 2022. (Photo: Chicago Tribune)
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A report released earlier this month from the Commission on Government Forecasting and Accountability (COGFA) analyzing the cost of a union-backed Tier 2 pension “fix” provided an eye-popping cost and a directive for supporters to head back to the drawing board.
COGFA estimated the union bill would cost taxpayers around $30 billion over the next 20 years.
Sen. Robert Martwick (D-Chicago), who chairs the Senate Pensions Committee and is the likely lead voice on any pension fix legislation, said work will have to continue to repair the pension system, which has been found to not be providing adequate funding to employees and retirees required by law.
Tier 2 was enacted by the legislature to impact new hires beginning in 2011 to give them fewer pension perks than previously hired state employees.
“[The legislature] clearly made an overcorrection,” Martwick said. “We overcorrected to save money by diminishing retirement benefits for people that we ostensibly value so much, teachers, and first responders. We had shirked our responsibilities for decades, built up a massive debt, and put ourselves in such a situation that offering the benefit that we wanted to offer our employees was impossible. It was because we had put ourselves in so big of a hole.”
That means trying to find compromise that meets legal requirements and the demands of Democrats and their union allies.
“This bill represents what it would cost to do the right thing,” Martwick said. “So I have no problem with that bill. I think it's great. And the $30 billion a year shows is exactly what it costs. “We're going to start with that 30 billion. Can we afford it? Probably not. I intend to keep that on the front burner as we go through our long term finances, not one year budget.”
Martwick predicts a deal on pensions will be reached during the spring legislative session.
Our visit with Martwick on WMAY Wednesday can be found here.
