SPRINGFIELD, Ill. – State Rep. Thaddeus Jones, D-Calumet City, is working to streamline pension systems to reduce the property tax burden, generate greater returns on investments and offer more financial stability for many retired first responders by passing a significant pension consolidation measure.
“Our pension system is stopped up with duplicative bureaucracy that is costing the state millions which communities like ours have to pay back in skyrocketing property taxes.” Jones said. “The Illinois pension system needs an overhaul to maximize investment gains, shed expensive government administration and provide retirees with the financial stability they deserve. This legislation is not the end of our work for that goal, but we are making great progress toward a more secure future for retirees.”
Jones backed Senate Bill 1300, which creates major pension reform while lowering the property tax burden on homeowners. The legislation combines assets and management of more than 650 police and fire pension systems into two systems, cracking down on wasteful bureaucracy and cutting back on the spread of needless government administration. Over the next 20 years, the consolidation of these systems is estimated to result in between $3.6 billion and $12.7 billion in increased investment returns. The legislation was passed with strong bipartisan backing.
“Consolidating the assets of the more than 650 downstate public safety pension funds throughout Illinois will help provide stronger investment returns for active and retired public safety employees and reduce redundant administrative costs on Illinois’ taxpayers,” said Illinois Municipal League Executive Director Brad Cole. “This is a good first step forward on the complicated and comprehensive issue of pension reform.”
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