SPRINGFIELD – In an effort to save taxpayer money, State Senator Dave Koehler (D-Peoria) voted in favor of a measure today that will consolidate police and firefighter pensions.

“The passage of this bipartisan legislation was years in the making, and I’m thrilled my colleagues and I were able to work with the governor’s office to address a part of our serious pension problem,” Koehler said. “We’re saving taxpayers money and increasing retirement security for those who risk their lives on a daily basis.”

Under this legislation, the roughly 650 separate pension funds for downstate police officers and firefighters will be consolidated into two individual and separate funds. The fund consolidation will happen over a 30-month transition period beginning upon the legislation becoming law and is estimated to save Illinois taxpayers nearly $160 million annually while not affecting individual pension amounts.

“I understand the concerns people may have about giving the state control over a pension system,” Koehler said. “For that reason it’s especially important to keep in mind that local pension board control remains in place under this legislation.”

Under this legislation local pension fund boards and their authority to rule on benefits would remain firmly intact. Additionally, balances of other pensions would be untouched. The proceeds from one fund’s investment will not be used to make up for another fund’s shortfall.

This legislation now awaits the governor’s signature.