By Ashley Badgley  Illinois Statehouse News

SPRINGFIELD – After months of debate and discussion, Gov. Pat Quinn on Wednesday signed the new pension reform legislation into law.

Effective, Jan. 1, 2011, new state employees — including teachers and other school employees, university teachers and staff, lawmakers and judges —  will receive a different pension than current or retired state employees. State employees will have to work until they are 67 to receive full benefits under the new plan and their overall pension compensation will be less.

“The changes that have been enacted into law here today for new employees who come to the state as well as new teachers who come after the first of January of next year, they will have a different set of rules,” Quinn said.

Quinn said that without this reform, Illinois’ pension system would not be sustainable moving into the future.

“The people of Illinois will be well served by this law,” Quinn said. “It protects taxpayers and it protects the retirement of thousands of public employees and teachers.”

He said the new plan will save Illinois $220 billion over the coming decades and $400 million in fiscal year 2011, set to begin July 1.

The legislation, which Quinn called “historical,” had support from both sides of the aisle Wednesday when he signed it into law.

Senate Republican Minority Leader Christine Radogno of Lemont said the pension reform bill is a “good first step” in fixing the state’s financial problems, but said more pension reforms are still possible.

State Rep. Kevin McCarthy, D-Orland Park, who was a sponsor of the legislation, said he agreed with Radogno that the new reforms make a good starting point towards reducing costs for Illinois taxpayers.

“It’s a first step,” McCarthy said. “I think it’s a pretty good first step and I hope that we can make significant future steps to even reduce the burden on our taxpayers more.”

Speaker of the House Michael Madigan, who was the bill’s sponsor, said he was thankful to the people who worked hard on the pension legislation in both chambers of the General Assembly.

“It really started in the Senate and came over to the House,” said Madigan, a Chicago Democrat. “Multiple supporters and multiple sponsors of the bill…there is plenty of credit that can be spread around.”

David Vaught, director of the Governor’s Office of Management and Budget, noted a key element of the law prohibits “double dipping” for individuals receiving pensions.

Currently, those receiving a public pension in Illinois can work a second state job and still receive their pension along with a salary. Vaught said that practice will stop under the new law.

Vaught also noted the pension legislation will help Illinois as it moves into the future by improving the state’s bond rating, which was recently downgraded.

“That we showed the capacity to govern and face a big problem…it doesn’t only save [$200 billion],” Vaught said. “It’s going to save us a lot in interest payments as we issue debt in our state.”

The new pension law will go into effect Jan. 1, 2011.