Kane County Reporter

Illinois lawmakers have recently approved HB3657, a bill that aligns Tier II Chicago Police and Fire pensions with those of their downstate counterparts. The legislation passed both chambers without opposition and is now awaiting the governor's decision.

Supporters argue that concerns about increased costs from this measure are overstated. According to proponents, critics often cite ultimate payout figures rather than present-day values, which they say more accurately reflect the actual cost of the bill.

The bill comes at a time when Chicago police officers and firefighters have faced significant challenges in recent years. "Since 2020, these two groups have been some of the most beleaguered employees in the state," said Illinois State Representative Dan Ugaste (R-St. Charles). "The police have faced numerous challenges in performing their jobs, which is to protect the citizens of Illinois, for almost a decade, and especially since the Democrats passed the SAFE-T Act. Furthermore, these are men and women who perform a job, day in and day out, that most of us would not think of doing – putting themselves at risk to protect others and their property."

Ugaste emphasized that Tier II pensions for police and fire personnel are more affordable than previous pension plans and may not be generous enough to meet federal Social Security Safe Harbor requirements. He noted ongoing debates in Springfield regarding whether these pensions will be sufficient under federal law.

Instead of reducing benefits for public safety workers, Ugaste suggested alternative ways to save taxpayer money. He pointed to his own proposal, HB9, which aims to provide property tax relief by requiring the state to allocate 25% of its budget toward statutory pension obligations before distributing remaining funds to school districts. Under this plan, school districts would be required to reduce property tax levies by an amount equal to additional state funding received. Ugaste stated that if implemented this fiscal year alone, HB9 could have reduced property taxes statewide by approximately $2.8 billion, with estimated savings reaching nearly $82.4 billion over 21 years.

Ugaste also questioned the effectiveness of increased education spending through Illinois' Evidence Based Funding Formula. Despite annual increases intended to improve outcomes, he argued that test scores have not improved over eight years. Instead, he advocated for policies such as school choice and consolidation of underused schools in Chicago as potential sources of savings.

Additional cost-saving measures proposed include reforms in workers’ compensation and civil litigation processes at various levels of government.

"In addition to those listed above," Ugaste said, "there are more ways to save money in Illinois that do not involve skimping on reasonable benefits after 30 years on the job to those who perform duties most of us would never consider doing in order to protect us and our property." He concluded by arguing that broader reforms could lead not only to greater taxpayer savings but also support economic growth across Chicago and Illinois.

Ugaste has served as a Republican representative for Illinois’ 65th House District since his election in 2019; he succeeded Steven Andersson in this role (https://www.ilga.gov/house/Rep.asp?GA=103&MemberID=3206).