Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. You need to know this news in the fight for a secure retirement.
State, City of Peoria leaders pushing for change in Illinois’ pension policies
The fight for reforming Tier 2 benefits continued during the legislative breakfast in Peoria this week. 25 News Now reports that, among other issues raised, a key factor in the talks was the attempt to bring Tier 2 benefits to the same level as Tier 1.
Tier 2 is for city and county workers hired after 2011, and Tier 1 is for those hired prior.
The main difference is that Tier 1 allows those who retire at age 55 with 20 years of service credits to receive benefits reduced by 6% annually until age 60.
Tier 2 requires pensioners to be 67 years old and have a decade of service credit to receive benefits.
While not everyone supports bringing Tier 2 benefits up to the same standards as Tier 1, even those in opposition recognize that changes are necessary.
“I believe adjustments need to be made in the Tier 2,” said State Sen. Dave Koehler (D-Peoria). “Right now, it’s costing us teachers. These teachers can go to states around us and won’t have to wait until they’re 67 to be able to complete their pension.”
As the legislative season begins, it is clear that the fight for a more equitable pension system is not going anywhere.
Michigan Democrats’ pension, retirement bills in limbo amid GOP ‘legal review’
A bizarre development has occurred in the Michigan state legislature:
The Bridge Michigan reports that nine bills passed by both chambers in the lame duck session have been held up for legal review by the new House Speaker Matt Hall, instead of being sent to Governor Whitmer.
One of these bills would place corrections officers in the Michigan Police pension system.
“Can a new Legislature even present what an old Legislature did? You know, I don’t have answers to all this stuff,” Hall told reporters. “I don’t like to rush. I stopped. I said, ‘We need a legal review.’
This unprecedented move has resulted in some strong criticism.
“A self-proclaimed ‘constitutional lawyer’ should be able to understand a very simple sentence in the Constitution that says bills shall be presented to the Governor,” Senate Majority Leader Winnie Brinks wrote in a post on X, referencing Hall’s past campaign characterizations of his legal background.
While this political fight goes on, the retirement security of corrections officers in Michigan will continue to be in limbo, and the more the state loses employees, the more dangerous jails become for both the incarcerated and the workers.
As Alaska lawmakers begin introducing bills, public pension revival is poised to advance
Alaska is revisiting legislation to reinstate employee pension plans after the bill died last year. The Alaska Beacon reports that Senate Bill 28, filed Friday at the state Capitol by Sen. Cathy Giessel, R-Anchorage, would create a system slightly modified from the one eliminated by lawmakers in 2006.
The early introduction of this bill in the legislative session is a sign that innovative pension reform is a priority for Alaska lawmakers. Ever since eliminating the pension system in 2006, Alaska has experienced an exploding hiring crisis.
Despite competitive wages, many professions, from Teachers to Police Officers, cannot retain workers, leading to a severe lack of services.
One in three Alaska villages have no police and Anchorage police say they witnessed a sexual assault in public. It took seven years for the case to go to trial.
This is an unthinkable situation; without some serious reforms, the danger to Alaskans will increase. Public Defined Benefit Pensions are great for retaining workers, and if the pension system is returned, it will be a great effort towards fixing this crisis.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.