A pension reform bill passed the Illinois House of Representatives on Thursday that changes cost-of-living adjustment policies for state employees hired before Jan. 1, 2011.
Under the bill, COLAs of 3% would apply only to the first $25,000 of pension benefits for participants, and the COLA would not start until five years after retirement or age 67.
The bill, sponsored by Democratic Rep. Elaine Nekritz, passed 66-50.
A competing bill in the state Senate, proposed by President John Cullerton, passed 30-22 on Wednesday. It would allow teachers a choice between keeping a compounding 3% annual cost-of-living adjustment increase or retiree health care. The move could save up to $40 billion over the next 30 years.
Earlier on Wednesday, the Senate had rejected, 30-23, a bill that could have saved a projected $150 billion over the next 30 years and dealt with all of the state retirement systems.