SPRINGFIELD, Ill. (AP) — Illinois should create a second, lower-cost retirement plan for government employees, even if it triggers a legal battle, state Treasurer Dan Rutherford said Tuesday.
The Republican said current employees should have a choice between the existing plan, which guarantees certain retirement benefits, and a new 401(k)-style investment plan. He said offering a new option would not run afoul of the state constitution, which bars cutting retiree benefits.
"It should be litigated. For years and years, we've been, 'Oh, it's unconstitutional.' Litigate it," Rutherford said at a news conference. "Because until we do it, nobody is going to really know."
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