SPRINGFIELD — Changes that would make Illinois pension systems compliant with Social Security by improving benefits for government employees hired since 2011 could be on the table when lawmakers return to Springfield in January.
The General Assembly passed legislation in 2010 to create a second tier of state pension benefits in hopes of reducing long-term liabilities. But the latest benefits structure for employees entering the government workforce after 2010, known as Tier 2, has raised concerns about its compliance with Social Security and fairness to public employees. Not all public employees are covered by Social Security. But federal law does require governments to provide benefits that are at least equal to Social Security. If a pension system fails to meet that “Safe Harbor” requirement, the employer must make up the difference. Officials from pension systems have said doing so would be costly, though exactly how much so is unclear. While calls for changes have grown louder in recent years, the underlying concerns aren’t new, Sen. Robert Martwick, D-Chicago, told Capitol News Illinois. “It was contemplated by members of the General Assembly during debate for its passage that Tier 2 could create a problem if it didn’t satisfy Safe Harbor,” Martwick said. Tier 2 employees also say the benefits they receive, which are not as generous as those received by Tier 1 employees who were employed before 2011, will make retirement challenging and are currently hurting recruitment and retention in public sector jobs. Lawmakers are tentatively scheduled to be back in Springfield on Jan. 4 for a lame duck session before new lawmakers are sworn in on Jan. 8. “Whether that will all come together in a fashion that is ready for lame duck or not remains to be seen,” Rep. Stephanie Kifowit, D-Oswego, told Capitol News Illinois. “I do think we’re closer than we were than at the beginning of the legislative session.”