May 28, 2025
Dear Governor Pritzker, President Harmon, Speaker Welch, Leader Curran, and Leader McCombie:
As we enter the final days of session, our collection of civic organizations is concerned about a final push for pension legislation that could undo much of the progress Illinois has made on slowing down pension liability growth.
Tier 2 pension legislation billed as "Tier 2 Safe Harbor Fixes” has surfaced in SB1937, House Amendment 1, sponsored by Rep. Jay Hoffman. Other amendments could emerge before the scheduled May 31 close of session.
The proposed amendments go far beyond the Governor’s pension proposal as introduced in the FY2026 budget. They would be detrimental to the long-term fiscal stability and credit rating of the State of Illinois, contrary to claims their proponents have made. Moreover, proposals covering the City of Chicago and other municipalities have received very little scrutiny, exacerbating the risk to taxpayers and the state budget if adopted.
We are writing to express support for the caution and care Gov. Pritzker and the legislative leaders have applied before proceeding with any pension legislation during the spring session. However, the eleventh-hour filing of massive pension bills and the possibility they could be acted on swiftly compels us to reiterate the importance of care and diligence in consideration of any pension legislation.
Before implementation of any pension bill, actuarial estimates of the cost should be undertaken and distributed to all stakeholders. In addition, any pension legislation that is passed is permanent and benefits may not be reduced ever moving forward. So, a quick passage of a bill could severely impact the long-term fiscal condition of the state.
Too much is at stake. There is no legal imperative to act ahead of the close of session. And more information is needed before the state responsibly can take action to address any shortfalls in the existing Tier 2 program.
We’ve written about this issue in three recent commentary pieces that highlight our concerns:
- Civic leaders: State lawmakers still have time to adopt a measured fix for Tier 2 pension problem
- David Greising: With state lawmakers in the final stretch, transit and pension proposals involve high stakes
- Civic leaders: Time for Illinois to pass a sensible Tier 2 pensions fix
We know that you are committed to protecting the fiscal progress our state has made over the past few years and understand the importance of protecting Illinois’ credit rating. If there is a chance that legislation could move toward a vote, we respectfully request a meeting with you in your Springfield offices before the legislature takes any action.
We greatly appreciate the work that you are doing and the challenges of the current fiscal situation that confronts the state. We are on hand to work with you in addressing the state’s pension challenges in ways that ultimately inure to the benefit of the state, employees and retirees, and all the people of Illinois.
Many thanks for your consideration.
Sincerely,
Derek Douglas, Civic Committee of the Commercial Club of Chicago
David Greising, Better Government Association
Joe Ferguson, Civic Federation
Jack Lavin, Chicagoland Chamber of Commerce
Lou Sandoval, Illinois Chamber of Commerce