Crain’s Chi Business’s Greg Hinz has details, ” from multiple sources in both chambers, and from both sides of the aisle”:
The big savings projected to total about $160 billion over 30 years would come from reduced annual cost-of-living adjustments (or COLAs, as they’re generally known). Right now, everyone in the state funds gets a flat 3 percent a year, compounded.
Under the proposed new formula, the COLA only would apply to one’s years on the government job, times $1,000. That means, for instance, that a 25-year government veteran would get a 3 percent annual COLA only on the first $25,000 of their pension, even if the total pension was $50,000. That employee would get no COLA on that second 25-grand.
More on that . . .
Then retirement age:
Another savings would come from raising the retirement age. Those workers who are at least 45 years old would…
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