Illinois governor signs pension overhaul into law

Illinois governor signs pension overhaul into law

Credit: Getty Images

CHICAGO, IL - NOVEMBER 5: Illinois Governor Pat Quinn speaks to the media during a news conference to proclaim victory in the Illinois gubernatorial race against opponent Bill Brady November 5, 2010, in Chicago, Illinois. Quinn defeated Brady by a margin of approximately 20,000 votes. (Photo by Frank Polich/Getty Images)

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by AP

KMOV.com

Posted on December 5, 2013 at 3:31 PM

 CHICAGO (AP) -- Gov. Pat Quinn has signed into law a landmark overhaul aimed at fixing Illinois’ nearly $100 billion pension crisis.

The law reducing retirement benefits for state employees takes effect in June, but court challenges are expected. Several unions have called the benefit cuts unconstitutional.

Illinois’ unfunded pension system is considered the worst in the nation after lawmakers skipped or shorted payments for years.

The legislation was unveiled last week and is expected to save $160 billion over three decades.

Among other things, the plan signed into law Thursday pushes back the retirement age on a sliding scale for those 45 and younger. It also caps the salary on which a pension benefit is based and lowers the employee contribution.

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