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I'm gonna pick on Illinois may be rightly may be wrong about gonna become -- -- -- pensions bankrupting Illinois.
It's no surprise therefore that Illinois has the worst credit rating -- fifty states.
We've got a state lawmaker who says he's got the answer to this.
Governor Thomas Morrison.
So welcome to the program I -- -- -- this right.
You propose that all state walkers will immediately shift into a 401K.
Plan all of them.
Now that's your proposal correct.
Yes that's right and that what it would do is it.
While it would it would freeze what they currently have earned.
And then going forward upon the effective date.
They would move into a borrowing Kate just like workers have done in the private sector now we hear a lot about this from -- -- states but they're always saying okay new -- go to the 401K.
But to -- The U.
Everybody everybody works for the state backs which are gonna do.
Rough -- that's correct well I mean in Illinois as you know as you widely reported are unfunded liability is.
-- -- in excess of a hundred billion dollars.
And so we've got a really make bold reforms I heard you earlier.
Just a few minutes ago talking about the bold reforms that have to -- in Washington.
And we need to do the same things right here in Illinois and I think this plan would actually get that done okay.
I -- it and let me be honest I don't that you got up craft of seeing this happen you will be opposed.
By every union guy annual state right.
Well I I've seen -- I I've been sitting on the house pension committee for the past two years.
And there's no doubt I've got colleagues that are very much afraid of what the government or the public sector unions.
Have to say about this but the problem is if we don't do this kind of serious reform.
Then these pension systems are going to run dry -- that's why.
This proposal is so important but they'll just go from bailout.
-- -- -- we voted for President Obama -- come on out here and help us we've seen it before it'll happen again they wanna bail out.
Well that that may be the case I hope that doesn't happen -- and out.
Most of my colleagues even the ones on the other side of the aisle -- -- a Republican but they recognize that.
That would be terrible fiscal policy -- week we created this mess here in Illinois we have the ability to fix it here's a plan that would do that.
And -- we shouldn't punish the other states because of our own fiscal mismanagement okay give me some -- illness.
What are the odds that -- proposal will be accepted within the next yeah I'd say -- -- adult and you say.
Well I know that the constituents I talk to both in my district I've got a district just outside of Chicago.
They understand it it's it's very simple.
Because if they work in the private sector most likely if they had a defined benefit plan they've now been rolled over into a defined contribution plan 401K.
And even my colleagues recognize that we as.
-- government as a state government we have to get out of the define.
Benefits system we cannot fulfill these promises that we've made for decades into the future.
OK hello I'm I'm not trying to -- cold water on the plan I think this kind of bold reform is absolutely necessary in fact ought to be cheering you want.
But I just want to caution that.
Is -- not gonna happen tomorrow.
But just -- well represented I'll say this Stewart if I could just add one quick thing I mean there are a lot of proposals on the table.
But this one goes the farthest it would save roughly 46.
Billion dollars off of our unfunded liability.
And and it's something that have to happen so I we have you have the opportunity to talk about it yes sir it would look we -- you -- -- -- want cheering -- on Tom Austin state represented Illinois thanks very much appreciate it.
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