Pensions Become Less Certain For Government Workers

by Alan Greenblatt

December 11, 201310:04 AM
 Illinois Gov. Pat Quinn smiles during the signing of the pension overhaul legislation bill on Dec. 5 in Chicago. Looking on from left are: Sen. Bill Brady, R-Bloomington; Senate GOP leader Sen. Christine Radogno; Rep. Darlene Senger, R-Naperville; Rep. Jim Durkin, R-Western Springs; House Speaker Michael Madigan and Sen. Kwame Raoul, D-Chicago.
Illinois Gov. Pat Quinn smiles during the signing of the pension overhaul legislation bill on Dec. 5 in Chicago. Looking on from left are: Sen. Bill Brady, R-Bloomington; Senate GOP leader Sen. Christine Radogno; Rep. Darlene Senger, R-Naperville; Rep. Jim Durkin, R-Western Springs; House Speaker Michael Madigan and Sen. Kwame Raoul, D-Chicago. M. Spencer Green/AP

Federal workers have reason to be nervous. The budget agreement announced Tuesday — if it passes — would raise revenue by making employees contribute more toward their pensions.

It’s part of a trend. Governments at all levels have been cutting back on pension benefits in recent years, in an attempt to fix funding problems caused by the recession and years of fiscal mismanagement.

In many cases, states and localities have made benefits less generous. But that has, for the most part, only affected newly-hired workers.

Last week, Illinois changed its pension law, taking away cost-of-living increases for current workers and retirees. The law passed in tandem with a ruling by a federal bankruptcy judge that Detroit could cut benefits promised to already-retired city employees. Continue reading “Pensions Become Less Certain For Government Workers”

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