Illinois House Panel Approves Pension Overhaul

A plan to cut government pensions and shift some retirement costs to schools has cleared its first hurdle in the Illinois Legislature.  A House pension committee approved the bill 6-3 yesterday.  

The measure would reduce annual cost-of-living increases for public employees. It also gradually makes schools and universities pay the cost of retirement benefits for their employees.  Opponents argue schools would be stuck with a huge expense at a time when money is already tight.  But House Speaker Michael Madigan says the shift makes schools come up with money they promise to their employees.