The pension plans for firefighters and police officers have always been incredibly low, but in Chicago things have escalated to such an extent that words like “bankruptcy” have started to roam around. In order to take care of this urgent and somewhat embarrassing matter, a bill meant to change the schedule of these pension plans has arrived to Governor Bruce Rauner.
The number of the bill is 777 and its importance has been highly debated in the media. The bill and has passed House on Saturday and on Sunday, was brought for concurrence. Sunday is usually the final day in which laws can be approved by a simple majority.
The 777 bill had plenty of supporters to help make the need for approval more dire, among them was Senator Daniel Biss, who spoke highly of this new measure to take of the pension crisis that has taken over Chicago.
The new bill is meant to assure three important aspects of the good functioning of the pension plan. The first thing it will take care of, will be to create a functional, dependable and defensible funding schedule, that way solvency will be possible no matter the changes in economy. The second aspect is to increase immediately the funding so that payments could be made. The third aspect is to assure a guarantee that payments are indeed being made.
Senator Biss was accompanied in his effort to sustain the pension plan, by Senator Matt Murphy, who said that having a pension plan does not mean that the firefighters and police officers are living it up, it just means that they are able to lead decent lives with a good reward for a life on the line.
Senator Matt Murphy also underlined how urgent this matter is and how close things are coming to insolvency for these pension plans and that these are just the first to be hit. Many other pension funds might also be affected.
Unfortunately the approval of the new measure will mean that people will have to start paying higher portions of their salaries, but it will not affect those who are already retired.
Any further delay will have dire consequences and will make the plan become useless and the notion of a good pension plan will have lost its purpose altogether.
The measure to increase funding for the pension plan has passed with a majority of 38 to 20 votes and is now awaiting approval by the governor.
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