Sen. Harmon, Rep. Willis at Wood Dale, 7/23/13, Part One

25 or so citizens at Wood Dale City Hall.

Q: Pension problem known since 2006, recognized since then. Where’s urgency? commitment?

Harmon:
* Crisis dimension rated according to tough standard, assuming pensioners live to 90 etc. Still, using that standard, with contributions as this year (and last), state has 32 years before money runs out.

* 2010 reform raised retirement age to 67, lowered benefits, etc. for 1/1/2011 and later hires.

Highlights Regarding 2010 Pension Stabilization Plan as explained by Sen. Cullerton:

The reforms . . . apply only to those who are employed on or after January 1, 2011. retirement on full pension is adjusted to age 67 with 10 years of service, on reduced pension to age 62 with 10 years of service. Final average salary is calculated over an eight-(not four-) year period. Cost of Living Adjustment is reduced from a 3% annual compounded to not-compounded, meaning that each increase is based only the original pensionable salary. Etc.

More to come on this town hall . . .

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