SPRINGFIELD, Ill. (WTVO) — Illinois Governor J.B. Pritzker signed a new pension consolidation plan into law.
The bill will take nearly 650 municipal pension plans and combine them into two statewide funds.
One will be for police, the other for firefighters.
The bill was passed by lawmakers during the Fall veto session.
Supporters say investment returns could be increased by as much as $800 million in the first five years.
“In the end this was a win, win, win,” said Pat Devaney, of the Associated Fire Fighters of Illinois. “It’s a win for the firefighters and police officers that rely on these pensions as their sole source of retirement income. It’s a win for our elected officials that are charged with balancing local municipal budgets, lean municipal budgets. And it’s certainly a win for taxpayers, for the hundreds of millions of dollars in property tax savings that we’re going to realize as a result of this effort.”
Critics are worried the law doesn’t address funding gaps in the state’s largest pension programs.
Those are underfunded by more than $130 billion.
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