Illinois Governor considers 2-tiered pension system

Illinois Governor Pat Quinn has proposed that Illinois offer new employees fewer pension benefits than current workers -- creating a two-tiered system.

A "two-tiered" pension system would reduce benefits for future state employees to soften the pain of paying up $54 billion in unfunded obligations to five pension systems. There would be no change for people already on the payroll.

"The people of Illinois who pay the taxes, they don't have a Cadillac pension plan, and we're going to have to take a look at everything in state government," the democratic governor said.

He would not discuss specifics of what he will propose, but dismissed the notion that it would be a defined-contribution plan like a private-sector 401(k).