State Representative Kifowit, Chair of Pensions Appropriation, applauds the Governor’s leadership to fix Illinois Pension crisis

OSWEGO, IL – State Representative Stephanie Kifowit, D-Oswego, applauds the Governor’s leadership on embracing the bold ideas for pension reform and a plan to pay down the state of Illinois over $140B pension debt.

“Thoughtout my tenure as Pension Chair and now Pension-Appropriations Chair, we have thoughtfully studied and evaluated the need for Tier 2 pension fixes and to address the unfunded liability of our pension systems,” stated Kifowit.  “I applaud the Governor for addressing this problem head on and I look forward to scheduling subject matter hearings in my committee so that we can find a solution that helps educators, public safety employees, and other public sector employees along with support of the units of government they work for”.

Kifowit has filed new legislation, HB 4673 to reform Illinois’ Tier 2 pension system, addressing long-standing inequities that threaten retirement security for members of the state pension systems and risk violating federal pension standards.  Since becoming the chair of a Pensions committee three years ago, she has been a tireless advocate for working families and a fair and equitable pension plan.

Illinois’ Tier 2 system applies to state and public safety employees hired on or after January 1, 2011, and currently is in violation of the Safe Harbor Provision of the Federal Government.  Employees do not pay into social security and rely solely on the state of Illinois pension plan. While workers pay into the system every paycheck, and the state has continued to short change it’s obligation leading to a significant pension liability. This creates uncertainty for employees and long-term risk for the state.

“I urge my colleagues to support fixing our pension system and I will be working with the Governor on his plan to support our public sector workers and start addressing the long-overdue pension liability,” continued Kifowit. “This pension crisis was started by bad policy in the early 90’s, which granted the state the authority to skip and underpay required pension payments.  I am committed to fixing Tier 2.”

For more information, please contact Representative Kifowit at (630) 585-1308 or email stephanie.kifowit@att.net.