Rauner looks to Washington for the power to change pension benefits
He's lobbying
The focus on D.C. allows the first-term governor to show supporters he has a plan for delivering on the promises he made as a candidate despite losing a two-year budget battle with
Much of the major legislation Rauner signed this year -- an overhaul of the state's education funding system and a boost in spending on schools; a bill protecting immigrants from federal deportation efforts; an expansion of taxpayer-funded abortions; and a new law allowing automatic voter registration -- are measures that
Speaking to a gathering of business leaders in late September, Rauner said he was turning to
"We need the help. We need the help because the system's rigged. Can't change it, can't fix it," Rauner said.
As a candidate and as governor, Rauner had proposed cutting pension costs by transitioning workers to less generous benefit packages or 401(k)-style retirement plans. But past attempts to cut retirement costs have run up against legal problems. The Illinois Constitution stipulates that benefits cannot be "diminished or impaired" once they are bestowed to workers, and the state
The governor thinks
After conducting hearings, a state would have to propose its changes to a court, which would hear arguments from people who would be affected. Options could include reducing benefits provided under a pension plan, changing the way benefits are calculated or limiting the number of pensions a person can collect.
"There's so many things that we can't touch because we're unreasonably hamstrung," Rauner said. "And the federal government can say, 'No, federal restructuring law supersedes the state restrictions,
The idea comes from conservative policy circles but hasn't been written into legislation that's been seriously considered in
"Frankly, I find it troubling that a governor would turn to
Rauner said his administration lawyers are "talking to everybody in the federal government" about the idea. He said last month that he hoped to see it included "with the tax overhaul" that's been anticipated as the next big issue to be taken up in
Even if the appeal to the federal government goes nowhere, it allows Rauner to tell voters he has a plan for dealing with the pension problem.
Asked Friday if he had given up on trying to work with the
"The idea for the federal is just to allow states to actually structure their pensions the right way," Rauner said. "We have a lot of spiking, and two and three pensions, and some not good, not fair structure inside there that's costing a lot of money and taking money away from the honest state employees who do not have a rigged deal. So we need to make some changes."
Even as he blames the state's pension woes on unions, the governor is looking to the
That case centers on government employee unions, which collect what's known as "fair share" fees from nonmembers. The thinking behind the fees is that all employees should pay for the cost of negotiating contracts and handling employee grievances and other services provided by unions. Rauner wants to put a stop to the fees, contending that requiring nonmembers to contribute financially to a union is a violation of their rights to free speech.
A decision in that case is expected next year. A similar case was heard by the
A second, lesser-known case is also making its way through the legal system, and Rauner hopes it, too, will land at the high court.
That case involves an attempt by the
A federal district court struck down the
"We're in federal court right now to make sure that states can have their local governments, counties and cities, decide for themselves their labor regulations," Rauner told the
Rauner told reporters he hopes the case will make its way to the
Closer to home, the governor is in the midst of a court battle with the American Federation of State, County and Municipal Employees, the largest public worker union in
___
(c)2017 the Chicago Tribune
Visit the Chicago Tribune at www.chicagotribune.com
Distributed by Tribune Content Agency, LLC.
Sen. Murray Issues Statement on Republican’s Attack on Workers’ Retirement Security
Washington State Insurance Agent Jailed For $50K Theft
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News