Quinn throws Hail Mary on pension reform

Chicago Tribune political editor Eric Krol reports on Gov. Pat Quinn's pension reform efforts.

SPRINGFIELD --- The Illinois House adjourned this afternoon without even voting on Democratic Gov. Pat Quinn's desperation pension reform plan.

Quinn threw his support behind a bill that would set up a commission to decide how to fix Illinois' financially failing government worker retirement systems.

Conventional efforts to craft a compromise on pension changes have gone nowhere during the lame-duck session. The new measure filed today would set up an eight-member commission appointed by the four legislative leaders. The panel would issue a report on pension system changes that would become law unless the General Assembly voted to overturn it.

Testifying before a House panel, Quinn said the measure represents "extraordinary action" to break the gridlock. It is modeled after federal military base closing commission reports to Congress. "We must have some sort of movement," Quinn said.

While the committee advanced the measure to the full House, Democratic Speaker Michael Madigan of Chicago later adjourned the lame-duck session without calling Quinn's plan for a vote.
Labor leaders immediately called it a "clearly unconstitutional delegation of power" and a "sad attempt to get something done."

Quinn maintained the approach has been upheld as constitutional. The governor said he wanted the pension systems fully funded by the end of December 2045, saying it is critical to "act promptly on this crisis."

Under questioning, Quinn acknowledged, "we need a new mechanism or different structure" because political gridlock had not yielded a solution.

House Majority Leader Barbara Flynn Currie, D-Chicago, said she would support the bill in committee as a nod to the governor but had serious questions of the constitutionality of the proposal.

Further, Currie said she worried the proposal would "take us three steps back." Currie said she thought the legislative negotiators on pension bills had made progress.

The committee voted 7-2 to advance the bill to the full House.

Quinn's latest plan came after he urged lawmakers to take a vote on government worker pension reform before the new legislature is sworn in at noon Wednesday, saying Illinois' economy is being held hostage by "political timidity."

The Democratic governor suggested there needs to be compromise, but did not offer specifics on how he thinks the gridlock on pensions could be broken.

Quinn decided to hold his news conference despite being told by House Speaker Michael Madigan that demanding a vote, even for symbolic reasons, didn't make sense when there aren't enough votes to pass the bill, according to Steve Brown, a Madigan spokesman.

Brown said forcing such a tough vote could irk lawmakers who are coming back in the new General Assembly and whose votes may be needed to pass pension reform down the road.

So far, House sponsors have been unable to line up enough votes to pass a comprehensive plan that would freeze cost-of-living increases for six years, delay granting pension inflation bumps until retirees hit 67 and require employees to pay more toward their retirement.

Even if that plan passed the House, it could face an uphill climb in the Senate, where senators went home last Thursday and would have to quickly return to vote. In addition, Senate President John Cullerton has indicated he prefers his own version of pension reform that he argues is constitutional, unlike the House plan.

With time running short, Quinn today said all parties need to double their efforts to reach a comprehensive bill that clears up the state's worst-in-the-nation $96.8 billion in a generation.

Pension reform is essential to put the Illinois economy on "sound financial footing," Quinn said.

"We cannot allow the state's economy to be held hostage by political timidity," Quinn said.

Quinn said more compromises need to be reached on legislative proposals, but he said he did not favor the Senate plan that dealt with state rank-and-file workers and legislators because it was not comprehensive.

A bill pending on the House floor reins in pension costs and addresses the state's pensions for four pension systems. The two additional systems are for university workers and and public school teachers from the suburbs and downstate.

Quinn said the Senate and House are both going to be in Springfield today, although the Senate President John Cullerton, D-Chicago, had said it would be back if the House passed a significant pension bill.

"We've put them on stand-by," said Rikeesha Phelon, Cullerton's spokeswoman. "It's still tentative."

She said the Senate is awaiting House action before it returns. "I don't know how to be more clear," Phelon said.

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Venezuela postpones inauguration for cancer-stricken Chavez

CARACAS (Reuters) - Venezuela will postpone the inauguration of President Hugo Chavez for a new term due to health problems, the government said on Tuesday, another sign the socialist leader's cancer may be bringing an end to his 14 years in power.

The 58-year-old former soldier who has dominated the South American OPEC nation since 1999 has not been heard from since surgery on December 11 in Cuba - his fourth operation since he was diagnosed with an undisclosed type of cancer in June 2011.

The delay has outraged opposition leaders who insist that Chavez must be sworn in before the National Assembly on January 10 as laid out in the constitution, or temporarily step aside and leave an ally in power.

"The commander president wants us to inform that, based on his medical team's recommendations, the post-operative recovery should extend past January 10," Vice President Nicolas Maduro said in a letter read to the legislature.

"As a result, he will not be able to be present at the National Assembly on that date."

The letter said authorities would seek another date for the inauguration ceremony but did not say when it would take place, nor give any time frame for Chavez's recovery or his return from Havana.

Rather than being sworn in by the legislature, he would take his oath at a later date before the Supreme Court, the letter said, as allowed by the constitution.

Government leaders insist Chavez is completely fulfilling his duties as head of state - even though official medical bulletins say he has a severe pulmonary infection and has had trouble breathing.

The government has called for a massive rally of supporters outside the presidential palace on Thursday, and allies including Uruguayan President Jose Mujica and Bolivian leader Evo Morales have confirmed they will visit Venezuela this week despite Chavez's absence.

But the unprecedented silence by the president - famous for regularly speaking for hours in meandering broadcasts - has left many convinced he could be in his last days.

His resignation or death would upend politics in the oil-rich nation where he enjoys a deity-like status among poor supporters thankful for his social largesse.

His critics call him a fledgling dictator who has squandered billions of dollars from crude sales while dashing the independence of state institutions.

CONSTITUTION DISPUTE

The constitution does not specify what happens if the president does not take office on January 10.

Opposition leaders argue that Congress chief Diosdado Cabello should take over as mandated by the constitution if the president's absence is formally declared. Cabello, a close Chavez ally, has ruled that out, saying the president continues to be in charge.

"Venezuela is not a monarchy. Ours is not the Cuban system where power is passed around without an election," opposition leader Henrique Capriles, who lost to Chavez in the October presidential election, told reporters on Tuesday.

Supporters have held near-daily vigils for Chavez's recovery, while opposition activists accuse the president's allies of a Cuban-inspired manipulation of the situation.

Vice President Maduro, who Chavez named last month as his successor, has taken over the day-to-day running of the government and looks set to continue in the role past Thursday.

The mustachioed former bus driver lacks Chavez's charisma, but he has sought to imitate the president's style with rambunctious attacks on the opposition and televised ribbon-cutting ceremonies.

With the micro-managing Chavez away, major policy decisions in Venezuela, such as a widely expected devaluation of the bolivar currency, appear to be on hold.

Opposition predictions of fighting within the ruling Socialist Party have not materialized, however, with Maduro and Cabello in particular pledging unity despite rumors of rivalry.

(Editing by Daniel Wallis and Eric Beech)

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Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.

Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.

Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.

The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.

"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.

Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.

Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.

The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.

Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.

In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.

The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.

Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.

Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.

"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.

Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.

Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.

Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.

Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.

Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.

Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.

(Reporting By Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)

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Love 'em or hate 'em, all eyes on Tide and Irish

MIAMI (AP) — Love 'em or hate 'em, it's hard to turn away from Notre Dame and Alabama.

They are storied programs that stir plenty of passions, college football's North and South versions of the New York Yankees.

Well, now they're facing each other for the biggest prize of all.

A national championship.

"Having those two traditions come together in a game like this certainly creates a lot of national interest," said Alabama coach Nick Saban, "which is probably really good for college football."

Indeed, this was shaping up as one of the most anticipated games in years, a throwback to the era when coaching giants named Bear and Ara ruled the sidelines, when it was a big deal for teams from different parts of the country to meet in a bowl, when everyone took sides based on where they happened to live.

"I'm pretty aware of our history. I've become more aware of theirs over the past few months," said Barrett Jones, the Crimson Tide's All-American center. "I know that they are a very storied program. We both are. I think that's part of what makes this matchup fun."

ESPN executives were hopeful of getting the highest ratings of the BCS era. Tickets were certainly at a premium, with a seat in one of the executive suites going for a staggering $60,000 on StubHub the day before the game, and even a less-than-prime spot in the corner of the upper deck requiring a payout of more than $900.

"This is, to me, the ultimate matchup in college football," said Brent Musberger, the lead announcer for ESPN.

For Alabama (12-1), this is a chance to be remembered as a full-fledged dynasty. The Tide will be trying to claim its third national championship in four years and become the first school to win back-to-back BCS titles, a remarkable achievement given the ever-increasing parity of the college game and having to replace five players from last year's title team who were picked in the first two rounds of the NFL draft.

"To be honest, I think this team has kind of exceeded expectations," Saban said Sunday. "If you look at all the players we lost last year, the leadership that we lost ... I'm really proud of what this team was able to accomplish."

That said, it's not a huge surprise to find Alabama playing for another title. That's not the case when it comes to Notre Dame.

Despite their impressive legacy, the Fighting Irish (12-0) weren't even ranked at the start of the season. But overtime wins against Stanford and Pittsburgh, combined with three other victories by a touchdown or less, gave Notre Dame a shot at its first national title since 1988.

After so many lost years, the golden dome has reclaimed its luster in coach Brian Kelly's third season.

This is the beginning, he said.

"Playing in this game is an incredible springboard into the next season," Kelly said. "They've already been here. You come back the next year, it's unacceptable for a standard to be any less than being back here again."

Both Notre Dame and Alabama have won eight Associated Press national titles, more than any other school. They are the bluest of the blue bloods, the programs that have long set the bar for everyone else even while enduring some droughts along the way.

Kelly molded Notre Dame using largely the same formula that has worked so well for Saban in Tuscaloosa: a bruising running game and a stout defense, led by Heisman Trophy finalist Manti Te'o.

"It's a little bit old fashioned in the sense that this is about the big fellows up front," Kelly said. "It's not about the crazy receiving numbers or passing yards or rushing yards. This is about the big fellas, and this game will unquestionably be decided up front."

While points figure to be at a premium given the quality of both defenses, Alabama appears to have a clear edge on offense. The Tide has the nation's highest-rated passer (AJ McCarron), two 1,000-yard rushers (Eddie Lacy and T.J. Yeldon), a dynamic freshman receiver (Amari Cooper), and three linemen who made the AP All-America team (first-teamers Jones and Chance Warmack, plus second-teamer D.J. Fluker).

"That's football at its finest," said Te'o, who heads a defense that has given up just two rushing touchdowns. "It's going to be a great challenge, and a challenge that we look forward to."

The Crimson Tide had gone 15 years without a national title when Saban arrived in 2007, the school's fifth coach in less than a decade (including one, Mike Price, who didn't even made it to his first game in Tuscaloosa). Finally, Alabama got it right.

In 2008, Saban landed one of the greatest recruiting classes in school history, a group that has already produced eight NFL draft picks and likely will send at least three more players to the pros. The following year, he guided Alabama to a perfect season, beating Texas in the title game at Pasadena.

Last season, the Tide fortuitously got a shot at another BCS crown despite losing to LSU during the regular season and failing to even win its division in the Southeastern Conference. In a rematch against the Tigers, Alabama romped to a 21-0 victory at the Superdome.

The all-SEC matchup gave the league an unprecedented six straight national champions, hastening the end of the BCS. It will last one more season before giving way to a four-team playoff in 2014, an arrangement that was undoubtedly pushed along by one conference hoarding all the titles under the current system.

"Let's be honest, people are probably getting tired of us," Jones said. "We don't really mind. We enjoy being the top dog and enjoy kind of having that target on our back, and we love our conference. Obviously, we'd rather not be a part of any other conference."

The schools have played only six times, and not since 1987, but the first of their meetings is still remembered as one of the landmark games in college football history. Bear Bryant had one of his best teams at the 1973 Sugar Bowl, but Ara Parseghian and the Fighting Irish claimed the national title by knocking off top-ranked Alabama 24-23.

If you're a longtime Notre Dame fan, you still remember Parseghian's gutty call to throw the ball out of the end zone for a game-clinching first down. If you were rooting for the Tide, you haven't forgotten a missed extra point that turned out to be the losing margin.

Of course, these Alabama players aren't concerned about what happened nearly four decades ago.

For the most part, all they know is winning.

"You want to be remembered for something," defensive lineman Damion Square said. "You live life to be remembered and do great things so that you can leave a legacy here when you're gone."

___

Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963

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Enter NASA’s Winter Weather Photo Contest

If you’ve got awesome photos of winter weather, send ‘em to NASA.

The space agency is holding a photo contest (entitled “Let it Snow!”) to highlight its Global Precipitation Measurement mission.

The GPM mission is an international satellite mission that studies Earth’s water and energy cycles. One goal of the mission is to improve the forecasting of extreme weather. “Let It Snow!” follows an earlier extreme photo contest. Find the winning entries of that contest here. 

The contest runs from today (Jan. 7) until Feb. 4 and the winning entry will be featured on NASA’s Precipitation Measurement Missions website.

You can submit your photographs at the website for the photo contest. Here are the submission guidelines:

• Images should be in JPEG (.jpg) format in as high a resolution as possible.

• Please provide as much data about the image as you arecomfortable providing.

• Your name.

• Affiliation (e.g. school, community group, etc.).

• Location where photo was taken (country, city, state, latitude, longitude).

• Any other interesting details about the photo.

NASA reminds contestants to be careful when taking pictures of extreme winter weather, which can be dangerous to get out into and photograph.

Follow OurAmazingPlanet on Twitter @OAPlanet. We’re also on Facebook and Google+.

Copyright 2013 OurAmazingPlanet, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Many French aghast at Depardieu exit

STORY HIGHLIGHTS

• Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu


• For Depardieu, a public war of words erupted, with many in France disgusted by his move


• Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier


• Majority of French people disapprove of his action but can't help loving him, she adds

Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.

Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.

Read more: Depardieu's puzzling love for Russia

Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.

Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.

Read more: Actor Depardieu makes Russia trip after accepting citizenship

Agnes Poirier

For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.

The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.

Read more: French star Depardieu ditches France for Putin's Russia

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles

For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.

Read more: Paris promises flurry of economic reforms

Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.

If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.

Read more: Brigitte Bardot threatens to spurn France, embrace Russia if 2 elephants killed

The opinions expressed in this commentary are solely those of Agnes Poirier.

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No vote on Illinois House pension plan today

SPRINGFIELD—

The Illinois House adjourned for the day without voting on a major government worker pension overhaul, casting grave doubt on the reform plan's fate.

The bill passed out of a committee earlier today, but proponents are still trying to round up enough votes to get it out of the full House.

The clock is ticking down until a new legislature is sworn in Wednesday. The Senate is not in town, and it's unclear whether enough lame-duck senators would return to vote on a pension plan even if it passed the House.

The House will return at 11 a.m. Tuesday.

"Sponsors will continue to work to find the votes and move the bill forward," said Ryan Keith, a spokesman for Democratic Reps. Elaine Nekritz of Northbrook and Daniel Biss of Evanston.

Earlier today, the plan won approval from a House committee. Workers would chip in more from their paychecks and automatic cost-of-living increases would be reined in for retirees under the proposal. Retirees would not get automatic annual inflation bumps until age 67 and cost-of-living increases would be frozen for six years.

The legislation emerged as the most comprehensive pension overhaul for government workers to reach the House floor with bipartisan support since estimates of the nation's worst-funded retirement system hit $96.8 billion. The proposal moved to the full House on a 6-3 vote.

Rank-and-file state workers, university employees, legislators, and suburban and downstate public school teachers and retirees would be impacted.

Sponsoring Rep. Elaine Nekritz called for action because the state's pension finances are "in crisis." She said the proposal is not the "ideal solution" but represented a solid compromise that lawmakers can pass before a new legislature is sworn in Wednesday.

"The choice is clear. The time is now," Nekritz testified in the House hearing. Failing to act would mean less money for schools, health care, social services and other state operations, she said.

House Republican leader Tom Cross of Oswego hailed Nekritz and Rep. Dan Biss, D-Evanston, for jump-starting a "give-and-take process" that has resulted in a "very good product" that will lower the debt by $30 billion.

"This is not going to get better, the economy will not save it and it's got to be fixed," said Cross, who threw his support behind the bill after working two years for pension reform. "This is something that has to happen."

He warned that the state must act or its already-poor credit ratings will drop farther and it will cost Illinois more to borrow money. Businesses already are wary about staying or moving to Illinois because of the uncertainty over the state's financial albatross, and workers deserve to know the fate of their pension plans, he said.

Cross said the state pension systems are only 39 percent funded and "it's not getting any better" because the state is on the hook for nearly $7 billion a year in pension payments ---nearly a quarter of the state's overall operating budget.

Biss maintained it is the only bipartisan legislation that has come forth that "truly solves theproblem" and has a "rationale, sensible framework."

In stark disagreement, Michael Carrigan, president of the Illinois AFL-CIO and a leader in a coalition of unions fighting the changes, maintained the pension proposal would disenfranchise people who have made their payments over the years and "played by the rules." 

Proponents maintained the proposal would be constitutional, but opponents maintained it represented "an all-out assault on employees" and a violation of the state charter's ban on diminishing benefits once they are given.

Illinois Federation of Teachers President Dan Montgomery charged lawmakers would violate their oaths of office if they supported the "illegal plan" and urged them to follow the "better angels of your nature."

Henry Bayer, who heads the union representing the most state workers, contended the measure "shifts costs away from state and onto the backs" of public workers and retirees.

The plan represented a "Tea Party approach" of "cut, cut, cut," said Bayer, executive director of the American Federation of State, County and Municipal Employees Council 31.

Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure  public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.

Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.

The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems

Even if the House plan passes, the Senate would have to come back to the Capitol Tuesday or early Wednesday to vote on it. It's unclear how many senators would return for such a vote and whether Senate President John Cullerton, D-Chicago, would help pass it. Cullerton prefers his own plan that he says would pass constitutional muster.

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Five accused in India rape case charged in court

NEW DELHI (Reuters) - Five men accused of raping and murdering an Indian student were read the charges in a near-empty courtroom on Monday after the judge cleared out lawyers for bickering over whether the men deserved a defense.

The 23-year-old physiotherapy student died two weeks after being gang-raped and beaten on a moving bus in New Delhi, then thrown bleeding onto the street. Protests followed, along with a fierce public debate over police failure to stem rampant violence against women.

With popular anger simmering against the five men and a teenager accused in the case, most lawyers in the district where the trial will be held refuse to represent them.

Before the men arrived for a pre-trial hearing on Monday, heckling broke out in a chamber packed with jostling lawyers, journalists and members of the public after two of the lawyers, Manohar Lal Sharma and V. K. Anand, offered to defend the men.

"We are living in a modern society," declared Lal Sharma, defending his decision. "We all are educated. Every accused, including those in brutal offences like this, has the legal right ... to defend themselves."

One woman lawyer prodded V. K. Anand in the chest, saying: "I'll see how you can represent the accused."

Unable to restore order, presiding magistrate Namrita Aggarwal ordered everyone to leave except the prosecution, and set police to guard the entrance.

She said the trial would now be held behind closed doors because of the sensitivity of the case.

FACES COVERED

Reuters video images showed the men stepping out of a blue police van that brought them from Tihar jail and walking, their faces covered, through a metal detector into the South Delhi court building.

The court was across the street from the cinema where the victim watched a film before she was attacked on her way home.

Aggarwal gave the men copies of the charges, which include murder, rape and abduction, a prosecutor in the case told Reuters.

Police have conducted extensive interrogations and say they have recorded confessions, even though the men have no lawyers.

If the men, most of them from a slum neighborhood, cannot arrange a defense, the court will offer them legal aid before the trial begins.

Two of them, Vinay Sharma and Pawan Gupta, have offered to give evidence against the others - Mukesh Kumar, Ram Singh and Akshay Thakura - possibly in return for a lighter sentence.

Mohan, describing what he called a heinous crime, said: "The five accused persons deserve not less than the death penalty."

The case has sharpened long-standing anger against the government and police for a perceived failure to protect women.

A male friend who was assaulted with the woman on December 16 said on Friday that passers-by left her unclothed and bleeding in the street for almost an hour and that, when police arrived, they spent a long time arguing about where to take them.

The woman lived for two weeks after her attack, dying in a Singapore hospital where she had been taken for treatment.

FAST-TRACK COURT

Aggarwal said the next hearing would be on January 10. The case is due to move later to another, fast-track court set up since the woman was attacked to help reduce a backlog of sex crime cases in Delhi.

Legal experts say the lack of representation for the five men may give grounds for appeal if they are found guilty. Convictions in similar cases have often been overturned years later.

Some legal experts have also warned that previous attempts to fast-track justice in India in some cases led to imperfect convictions that were later challenged.

The sixth member of the group alleged to have lured the student and a male friend into the private bus is under 18 and will be tried in a separate juvenile court.

The government is aiming to lower the age at which teenagers can be tried as adults, acknowledging public anger that the boy will face a maximum three-year sentence.

The victim was identified by a British newspaper at the weekend but Reuters has opted not to name her.

Indian law generally prohibits the identification of victims of sex crimes. The law is intended to protect victims' privacy and keep them out of the glare of media in a country where the social stigma associated with rape can be devastating.

The dead woman's father repeated on Monday that he wanted her identified and said he would be happy to release a photograph of her.

"We don't want to hide her identity. There is no reason for that. The only condition is it should not be misused," he told Reuters.

He said he was confident the trial would be quick and reiterated a call that the perpetrators be hanged.

(Writing by Frank Jack Daniel; Editing by Robert Birsel and Tom Pfeiffer)

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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.

Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.

That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.

Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.

In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.

"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.

Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.

U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.

Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.

"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.

Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.

REVENUE WORRIES

One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.

S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.

On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.

For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.

Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.

In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.

"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.

Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.

Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.

(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)

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Redskins lead Seattle 14-13 at halftime

LANDOVER, Md. (AP) — Robert Griffin III threw two 4-yard touchdown passes in his first career playoff game to give the Washington Redskins a 14-13 lead over the Seattle Seahawks after the second quarter of their NFC wild-card game on Sunday.

Griffin capped the Redskins' only two drives of the first quarter against the NFL's top-rated scoring defense with short tosses to running back Evan Royster and tight end Logan Paulsen.

The Seahawks allowed 15.3 points per game this season and the 14-point deficit was their largest of the season.

Seattle rallied with 13 points in the second quarter, including rookie Russell Wilson's 4-yard TD pass to running back Michael Robinson.

Steven Hauschka's 32-yard field goal with 12:05 remaining put the Seahawks on the board and he added a 29-yarder as the half expired.

The right-footed Hauschska was playing with a left ankle injury and limped off the field to the locker room.

Griffin was 6 of 11 for 68 yards with an interception and he ran three times for 12 yards.

On the second drive, the rookie fell awkwardly while backpedaling on a pass and came up limping, but stayed in the game. He sprained his right knee in Week 14 and had a brace for the third straight game.

Wilson led three consecutive scoring drives, though Seattle settled for two field goals on its two other red zone trips. The Seahawks rookie finished 9 of 14 for 123 yards and also ran for 35 yards.

Marshawn Lynch rushed for 33 yards with his biggest result coming after scooping up a Wilson fumble and racing for 19 yards, leading to the Seahawks touchdown.

Rookie Alfred Morris, the league's second-leading rusher, had 60 yards — 34 of them on four carries during Washington's opening drive that resulted in the TD pass to Royster.

Paulsen's touchdown catch finished off an 11-play, 54-yard drive in 5:58.

Washington's offense slowed in the second quarter with two drives resulting in a punt and an interception by Seattle Pro Bowl safety Earl Thomas.

Seattle was moving the ball in the first quarter, but a promising drive ended when the Redskins' Stephen Bowen and London Fletcher combined to sack Wilson on third-and-2. It was one of two sacks for the Redskins in the quarter.

The playoff meeting between the two teams was the third, but first outside Seattle. The Seahawks won 20-10 in January 2006, and 35-14 in January 2008.

Those were the last two postseason games played by the Redskins, who entered the playoffs on an NFC-best seven-game winning streak.

Seattle has won five straight, outscoring opponents 193-60, but finished the season with a 3-5 road record and has lost eight straight road playoff games. Their only road playoff win came in its first postseason road game, Dec. 31, 1983, at Miami. The streak is the second longest in the NFL behind Detroit.

Washington, NFC East champions and No. 4 seed in the conference, became the first team since the Jaguars in 1996 to reach the playoffs after starting 3-6. The Redskins went worst-to-first after finishing last in the division for four straight years.

This was the second playoff game in NFL history with two starting rookie quarterbacks.

Last year in the first rookie QB meeting, T.J. Yates led the Texans to a 31-10 victory over Andy Dalton and the Bengals.

Wilson tied Peyton Manning's 1998 NFL rookie record with 26 touchdown passes. Griffin set the league mark for yards rushing by a rookie quarterback (815) and had the best single-season rookie passer rating in NFL history (102.4), followed by Wilson (100).

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