2 ms·You cannot renegotiate or cancel pensions. But you can simply tax their receipts as income.by polski-g 3y agoYou cannot renegotiate or cancel pensions. But you can simply tax their receipts as income.cozzyd 3y agoyes, Illinois doesn't tax pension income, though maybe it could. (Maybe it even could with a residency exemption; perversely many Illinois pensions are being taxed by other states...)behringer 3y agoThat's perfect. Tax anything over poverty level at 80 percent until we're balanced.