By Illinois Radio Network
SPRINGFIELD -Some Illinois lawmakers want the upcoming veto session this fall to focus on a task force recommendation to consolidate 649 downstate local police and firefighter pension funds into two funds.
Two lawmakers said the plan was a small reform to address the state’s high property taxes and underfunded pensions.
Gov. J.B. Pritzker unveiled a plan proposed by the Pension Consolidation Feasibility Task Force last week to combine 649 suburban and downstate police and fire pension funds into two separate funds, one for police and another for firefighters. The plan does not include the city of Chicago or the state’s five pension funds for university employees, state employees, lawmakers, judges and teachers.
Before Pritzker announced the plan, the Illinois Department of Insurance released its biennial report on public pensions. It showed in 2018 the average funding ratio for the state’s suburban and downstate police pension funds was 55.1 percent. Downstate firefighter pension funds were 54.4 percent funded. The total unfunded liabilities for those funds was a combined $12.3 billion.
State Sen. Robert Martwick, D-Chicago, said some local public pension funds were 80 percent funded while others are woefully underfunded. Consolidating them won’t be an immediate fix.
“An 11 percent funded local pension fund after this consolidation is still only 11 percent funded,” he said.
However, Marwick said consolidation would give smaller funds the ability to access investment opportunities with greater returns.
State Rep. Mark Batinick, R-Plainfield, said he likes the overall proposal because it would lower costs and increase investment returns, even if it doesn’t deal with the state’s $135 billion in unfunded liabilities.
“But if you’re in the burbs or downstate this is a big issue with your property taxes,” Batnick said. “And some of this snowballs.”
There aren’t many vetoes to consider when lawmakers return later this month and Batnick said he hoped to see the consolidation plan pass before the end of the session.
“It would actually be nice to focus on something that is important, that directly affects property taxes so I’m kind of hopeful that all the air is taken out [of the room] with this,” Batinick said.
Many communities across the state report local police and firefighter pension funds are taking up more and more of their operating budgets and share of property taxes.
Martwick said he expects thorough hearings of the governor’s pension consolidation proposal.
“All of this was done behind closed doors and so I’m looking forward to some public hearings where I can hear the people in support of it say why they support it and I want to hear what those who are opposed to it say why they are opposed to it,” Martwick said.
A state firefighter association has come out in support of the proposal. A state police association has raised concerns.
Batinick warned against muddying up the idea, something he said could be a greater risk if lawmakers wait until the Spring to take the issue on.
“Springfield can screw up a one-car funeral,” Batinick said. “People could throw anything at it … people with other agendas that may want to attach something else to any bill that’s passed.”
Lawmakers return to Springfield for three days beginning Oct. 28 and three days beginning Nov. 12. It’s still unclear who the governor will pick to take the lead on the pension consolidation plan.
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