CHICAGO -- A pension reform plan endorsed by leaders of Illinois’ public universities and touted as a potential model for an overhaul of the state’s other funds received a hearing last week before a legislative committee.

The proposal outlined in Senate Bill 2591 calls for a 2% increase in employee contributions to be phased in over four years, and shifting how cost of living adjustments are calculated from a compounded model to one that is tied to inflation. The state government’s 11% employer contribution would move over to the schools over 12 years with the state guaranteeing to hold aid levels at least steady. New employees would participate in a hybrid plan with defined contributions.

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