SUAA Statehouse Report 2.3.26

“The most expensive thing the State of Illinois can do regarding Tier 2 pensions is nothing.”

- Drew Bodewes, contractual lobbyist for SUAA

Sneak Peek of Governor Pritzker’s Budget Address

Yesterday, February 2^nd, Governor Pritzker’s office released a press release that “reaffirmed his commitment to the core principles he outlined in his FY2025 budget proposal to manage Illinois pension commitments through a set of proposals designed to build on the state’s recent fiscal progress and further reduce long-term risk for taxpayers and retirees.”

Governor Pritzker outlined a set of proposals he believes will strengthen the state’s pension system’s long-term stability:

• Reaffirming commitment to the Governor’s 2024 multi-tiered plan to manage the state’s long-term pension funding commitments, including increasing the statutory funded ratio goal to 100% funded by 2048 and addressing the Tier II safe harbor concerns by adjusting pensionable earnings cap, building on $75 million set aside in the most recent budget.

• Proposing to direct additional revenues toward paying down Illinois’ pension commitments through transferring unexpected surplus revenues left over after paying income tax refunds.

• Proposing an extension of the state’s pension buyout program to further reduce long-term liabilities and continue to save taxpayer dollars.

  
  

“We appreciate Governor Pritzker’s actions to increase funding levels for state pensions, but his discussion on Tier 2 benefits promotes a system that denies Tier 2 recipients the retirement they’ve earned.”

- W. Bryan Soady, SUAA Executive Director

You can read the entirety of the Governor’s press release by CLICKING HERE.

Governor Pritzker will provide his Budget and State of the State Address on February 17^th. SUAA will provide a live link to his address on the 17^th.

“Weird” General Assembly Calendar

Whereas it’s the norm that the Illinois Senate and House are in session at the same time, it will not be until the week of the Governor’s budget address that both chambers will convene together at the Capitol. The two weeks the Senate has been in session (one in January and this week) has mainly involved the members picking new offices in the newly renovated Statehouse and, this week, moving into those offices. The House and Senate committees on Pensions and Higher Education have yet to hold hearings this spring session.

This Friday marks the deadline for the introduction of House and Senate Bills, and SUAA has four bills it will introduce prior to the deadline that it will share with SUAA members in the near future. SUAA continues to monitor other relevant legislation as it is introduced, relating to pensions, healthcare, and higher education.