This content is from: Corner Office

Illinois Slashes Retirement Benefits

Illinois Governor, Pat Quinn, has signed legislation that reduces retirement benefits for future employees.

04-19-2010 | Illinois Governor, Pat Quinn, has signed legislation that reduces retirement benefits for future employees, IM Weekly reports. The state faces a $13 billion deficit and liquidity crisis with $4.5 billion in unpaid bills. Quinn has proposed a temporary 1 percent income tax hike in the 2011 budget, to generate up to $3 billion that would help reduce the state’s overdue bills.

Under the law, the state will shift to a two-tiered system with benefits reduced for future employees. The measure requires future employees to be at least 67 years old with 10 years of state employment to qualify for full benefits. It places a cap on the salary at which benefits are determined.

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