In 2010, the Illinois General Assembly passed Public Act 96-0889, which created a new tier of pension benefits (tier 2), thus impacting pensions for local government employees hired after January 1, 2011. At the time, the Mayors Caucus heralded this agreed upon change because it was viewed as a significant way to reduce long-term public safety pension costs, provide greater efficiency and investment return opportunities, and provide local tax relief.
The Legislation brought unions and local governments to the table to carefully discuss and design legislation that would comply with Illinois constitutional protection of public-employee pensions and has successfully provided substantial long-term savings and slowed the growth of pension liabilities by stabilizing future obligations and easing pressures on municipal budgets. Even though it has been proven to be very impactful for local governments it is now being threatened by the public safety unions who want to roll back these successful reforms.
Caucus Position: The Metropolitan Mayors Caucus urges the General Assembly to maintain the current Tier 2 pension system that many of our municipalities and their public safety employees have seen positive benefits from.