Mike Tryon Explains His Vote Against Pension Bill

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Pension Reform Bill Sent to Governor

Mike Tryon

Mike Tryon

This has certainly a historic week in Springfield. After years of discussion and countless proposals, the General Assembly on Tuesday sent a comprehensive pension reform bill to the Governor. Following several hours of debate in both chambers, SB1 was approved in the House in a 62-53-1 vote and in the Senate in a 30-24-3 vote. Governor Quinn has promised to sign the bill as soon as he receives it.

Pension reform is an issue that has been very important to me during my time as a legislator. In fact, since taking my seat in the IL House in 2005 I have sponsored or co-sponsored 19 different pension reform bills. While I had hoped that the legislation brought forward from the conference committee on pensions would be something I could support, I could not in good conscience vote for pension changes that I truly believe constitute an unconstitutional diminishment of pension benefits.

The Governor and General Assembly are bound by the Illinois Constitution to adequately fund the State’s pension systems and guarantee the pension benefits of current state employees. Article XIII, Section 5 of the Illinois Constitution states that “membership in any pension or retirement system of the State… shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.”  In simpler terms, this means that once a benefit has been earned it cannot be lessened or taken away. To pass the constitutionality litmus test, pension changes or reforms needed to only affect future earnings while leaving already-earned benefits untouched.

The unions affected by the passage of SB1 have already promised to immediately challenge this legislation in court. Attempts to change pension benefits in other states have already been heard in other states and the courts have been clear in supporting constitutionally protected pension provisions. I have no reason to believe the courts will rule differently in Illinois.  If, down the road, the provisions of SB1 are found to be unconstitutional, real reform will have been delayed and the $100 billion pension liability will have only grown larger.

In spite of my “no” vote on Tuesday, I sincerely appreciate the hard work put into this important issue by Republican House Leader Jim Durkin and by the bi-partisan conference committee. With the vote now behind us I hope we can refocus our energy on improving Illinois’ business climate and reducing unemployment.

Legislators are now back in their home districts and will not return to Springfield until January 29, when Governor Quinn will issue his annual State of the State adddress. If my staff or I may assist you in any way, please contact us at mike@miketryon.com or at the Crystal Lake phone number listed below.


Comments

Mike Tryon Explains His Vote Against Pension Bill — 3 Comments

  1. Does anyone care about any of this for and against political blather?

    The truth will come out about this ‘deal’, with the $350 M general- obligation sale next week.

    We’ll see what investors and the credit agency’s think of this latest fix.

    I’m betting we edge out Detroit and Puerto Rico, for the worst of the worst offerings and that yield gap continues to expand.

  2. NO ONE SHOULD BELIEVE RATINGS AGENCIES

    Eric Holder Holds One Half Of US Rating Agencies Accountable For Financial Crisis
    just brilliant Pure pathetic political posturing, because it was the rating agencies, whose … agency Standard & Poor’s Ratings Services alleging that S&P engaged in a scheme to defraud … S&P/Moody’s or any other rating agency to commit this kind of fraud? Where’s the money(implied)? …

    Story – Tyler Durden – 02/05/2013 – 11:30 – 132 comments – 0 attachments

    SEC Report On Credit Raters Finds Leaks And Conflicts Of Interest
    biggest face-palm moment of the day, the SEC’s summary report on credit raters found 22 pages worth of supervisory failure and conflicts of interest concerns at each and every one of our NRSROs. However, perhaps … `LARGE’ CREDIT RATER APPEARED TO LEAK PENDING RATING *SEC DECLINED TO IDENTIFY WHICH RATER MAY HAVE LEAKED …

    Story – Tyler Durden – 09/30/2011 – 10:39 – 42 comments – 0 attachments

    Civil Charges To Be Filed Against S&P For Its Exuberant Pre-Crisis Mortgage Ratings
    the US ahead of all the other rating agencies), but now the time has come for that other rating agency … charges against S&P for its mortgage bond ratings during the housing crisis. U.S. AND STATE … bonds. The likely move by U.S. officials would be the first federal enforcement action against …

    Story – Tyler Durden – 02/04/2013 – 13:32 – 63 comments – 0 attachments

    The Fledgling Conflicts Of Interest At The Nouveau Rating Agencies
    rampant conflicts of interest over the past decade which everyone on Wall Street was all too aware of … to be the root of the credit and mortgage crisis (one can see how that is not a futile argument: if … (Barney Frank, Bear Market, Capital Markets, CRE, CRE, Fitch, FOIA, Freedom of Information …

    Story – Tyler Durden – 06/23/2009 – 17:46 – 0 comments – 0 attachments

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