IL AFL-CIO’s Devaney on fight for fair pensions, retirement security

Pat Devaney, Secretary Treasurer of the Illinois AFL-CIO, joined the America's Work Force Union Podcast to discuss the history of pension cuts, their impact on public workers and efforts to restore retirement security through the Fix Tier 2 campaign.

In 2010, Illinois politicians created a lower "Tier 2" pension system for public employees hired after Jan. 1, 2011, drastically reducing benefits. Devaney explained this was done in response to the Great Recession but resulted in significantly slashed pensions for newer workers doing the same jobs as their colleagues. The cuts included capping pensionable salaries, changing the benefit calculation formula, reducing cost-of-living adjustments and more. Devaney said this has led to recruitment and retention issues as workers realized the "raw deal" they were getting compared to peers. As a result, they would often seek employment in other states.

The Illinois AFL-CIO and labor allies have launched the Fix Tier 2 campaign to address these inequities. With over 80,000 supporters, Devaney said they are pushing for legislation to improve Tier 2 benefits before the May 31 legislative adjournment. Devaney said he believes this to be both a moral imperative and practical necessity, as the current system may not meet legal requirements for public pensions not coordinated with Social Security. He expressed optimism about making progress this legislative session, citing strong labor support in Illinois and the current pro-worker administration.

Finally, Devaney explained how public sector workers often accept modest wages in exchange for retirement security, but Tier 2 has broken that social contract. He argued that restoring fair pensions is crucial, not just for workers, but for government operations and public services that communities rely on. The campaign aims to take the first steps toward fixing the system, though full equity with Tier 1 remains the ultimate goal.

To hear more about the efforts to restore retirement security for Illinois public workers, listen to the full episode with Devaney above.