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Pension Reform Still Hampering Illinois

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    Rep. Mike Bost, (R-Ill.), on the need to reform state pensions.

  • Duration 4:26
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Pension reform and Illinois -- really heating up.

His Republican state representative -- boss expressing his frustration of the Democrats push for that plan.

I am bill that does all the damn time.

-- your.

Credit.

Able.

Saying that aren't they yeah.

See yourself.

-- All right now pension reform clearly a major issue in this state of Illinois which faces massive amounts of unfunded pension liability represented my -- Joins us now live from Springfield Illinois so welcomed the show glad to have you -- Would you repeat that what will you do that again on the floor of the states does that -- house.

Well I think that that would at least we're expressing the concerns we had understand the house Republicans have been working on this issue for over a year and a half now the last four months very intensely.

In a bipartisan manner on that day.

The speaker came forward early in the morning and actually brought forward a completely different -- -- did not follow suit with what we had been negotiating on.

And it shifted the burden to downstate property owners and no burden to the city of Chicago now with the that was that was -- reason for there.

Appearance that look -- we got a national audience via.

We're looking at the state of Illinois and when looking at your pension problem which is really a very severe and serious -- just as it out in California so I'm I'm not particularly interested in that in the local issues he.

I'm ensure that they national issue of how do you reform in Illinois you state pension system.

How can you do it because act outside -- think you'll going broke.

Correct one thing we have to do is modify those obligations to a point that are sustainable.

We got a 3% compound and cola.

That is paid to retirees that is something that was put in.

In the late eighties we got to look at that modify that because it's unsustainable we also have to look at the long term to be able to.

Develop a tier system because what's happened is people started living longer we can't sustain that.

We as a state of Illinois short of that pension system three times about forty years ago three years about forty years ago and three years again ten years ago.

What do we create a lot of this problem -- but we must work work -- -- and those are some ideas that were coming up with you yet still are.

-- -- -- really get to grips with this problem because it's such a huge problem.

Don't you have to reduce the pensions that you're already paying to retired state -- I know that might be on our number don't don't feel we have to reduce our.

It we don't have reduced our pensions that were paying but we do have to reduce.

This continuing climbing cola can we show that if if we would do that and make it sensible we could actually dropped 21 billion dollars in our long term indebtedness.

In the in the day that we would pass what we were originally talking now -- my rival sites and -- -- -- about 83 billion Obama right inciting.

That governor Quinn says look you either agree to get Britain get readable restrict this -- cost of living allowance fall.

You retirees you -- lose your health cat I think he's put it this stock yeah as I mean he's trying to he is tried to tie the two together so we have we have -- already tried to deal with the health care at a certain level.

And each proposal actually puts that in place.

The question is.

Can we get enough votes to pass that.

Is there are other options like everybody -- -- -- it'll probably -- Illinois and saying look you've got this plan.

You all going to restrict what you pay out to existing retirees that's what you gonna do.

And everybody's looking at we have if you gonna have to.

We have to reduce.

That long term indebtedness.

Yeah we're 83 billion dollars we have to reduce that.

Why are our debt service -- seven billion -- -- yes something has to be okay what's the been response to you'll rat I'm gonna call them out votes that display an emotion I think.

It's actually been very well.

In a state of Illinois because they do understand the local politics -- nationally it's amazing to me how many people just say that's the way we feel about government and so is -- it is just amazing to me that the response it has gotten.

-- look so we appreciate you being with us today live from Springfield Illinois representative -- boss -- is again -- we wanna hear what's happening in Illinois because -- -- test case for the nation we -- Thank you --

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