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House Speaker Overestimates Pension Plan Savings

Tue, 27 Aug 2013 06:39:02 CDT
By: AP

The estimated savings on a pension proposal backed by Illinois House Speaker Michael Madigan earlier this year is nearly $25 billion less than originally thought. That's because the Teachers Retirement System, one of Illinois' five pension systems, says it made a mistake in it's calculations. The change was outlined in a Monday letter to a bipartisan panel tasked with coming up with an approach to solving Illinois' nearly $100 billion pension crisis. Madigan's plan involves across-the-board cuts in benefits. It was originally touted to save Illinois about $187 billion over 30 years. However, the new estimate is about $163 billion in the same time period. Another plan from Senate President John Cullerton, which had union support, was estimated to save roughly $57 billion over the same timeframe.

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