Sunday, June 3, 2018

“Batinick buyout” pension reform to become law



News From
State Representative Mark Batinick

For Immediate Release
May 31, 2018

Contact: Debbie Kraulidis
(815) 254-0000

“Batinick buyout” pension reform to become law

SPRINGFIELD – State Representative Mark Batinick (R-Plainfield) today lauded passage of budget legislation which included pension reform language closely resembling a plan he introduced in 2016 and 2017. When Batinick introduced the proposal he was the first in the United States to propose such a concept, which has since been enacted into law in Missouri.

“If we are going to solve our long-term fiscal problems in Illinois we have to make changes to our pension system. This bill begins to do just that.”

House Bill 3342, the budget implementation bill which passed the House today, includes the “Batinick Buyout,” a plan for a buyout of vested inactive members of the five state-funded pension systems. It also includes an optional buyout of the 3% compounding cost of living adjustment at retirement. Batinick expects these changes to substantially reduce the state’s unfunded pension liability, saving taxpayers millions in contributions.

“These ideas give us a constitutional way to address the budget crisis,” Batinick said. “We have a lot more work to do, but I believe we are now one step closer to getting the state’s fiscal house in order for the long term.”

The bill passed both houses by large, bipartisan margins. Governor Rauner has indicated that he will sign it when it reaches his desk.

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Mark Batinick
State Representative 97th District
815-254-0000

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