Factbox: Details emerge on Illinois pension reform deal

CHICAGO (Reuters) - Illinois legislative leaders on Friday revealed more specifics on the deal they reached on Wednesday to overhaul the state's under-funded public pension system. State lawmakers are expected to take up pension reform next week. Illinois has the worst-funded public employee pension system among the 50 states. Here are details on the deal, according to an overview released by the Illinois House speaker's office: * The retirement age for public workers who are currently aged 45 and under would gradually increase. * For high-wage earners, the state would set a cap on the portion of their salaries used to calculate pension benefits. * The current 3 percent annual cost-of-living adjustment (COLA) for retirement pay would be subjected to a formula aimed at benefiting longer-term, lower earning workers. Increases would be tied to the inflation rate. * COLAs would be suspended for anywhere from one to five years, depending on the age of the worker. * Workers would see a 1 percent decrease in their required pension contributions. * Workers looking for an alternative to state-funded pensions would have the option of contributing toward a 401(k)-like investment vehicle. * Illinois would contribute $364 million to the public pension fund in FY 2019 and $1 billion annually thereafter through 2045, or until the system reaches 100 perfect funding. * Illinois state-employee pension funds would have a right to go to court to force the state to make its required pension payments. * Illinois pension systems could not use pension funds to pay healthcare costs. (Reporting by Tom Polansek; editing by Andrew Hay)