Pension Reform for NEW State employees
Illinois currently has the highest unfunded pension liabilities of any state in the country. Experts estimate it is now $73 billion. This is much larger than the costs to operate the entire state for one year.
Governors and legislators from both parties have consistently underfunded. Indeed, this past July Governor Quinn signed a bill authorizing borrowing $3.5 billion for current pension obligations.
We have a pension system that is wasteful, regressive, and out of line with benefits private sector employees receive.
Let’s look at some examples of what we the Illinois taxpayers are currently paying.
- $447,000/yr + 3% increase every year for life to a retired anesthesiologist for Univ. of IL Medical Center
- $196,000/yr + 3% increase per year for life to a part-time retired state senator who left office earning $59,000/yr
- $136,000/yr +3% increase per year for life to a retired county commissioner, a part time job, who left office
- $68,000/yr + 3% increase per year to a crooked cop sitting in a federal penitentiary for stealing $5 million
Let’s put this in perspective. Federal law allows a pension of $191,000 for former presidents of the United States. We have countless retired public officials making more than that, and it’s growing.
So, how did we get here? I think FDR said it best- “In politics nothing happens by accident. If it happens you can bet it was planned that way.” It was planned by those who have lined their pockets with your tax dollars. It is a plan I do not share. I have a new plan.
Today it’s the taxpayers, including the working poor and middle class families struggling thru the toughest economy since the Depression. Tomorrow it will be our children and grandchildren. We have no right to saddle them with this crushing debt.
So, what do we do about it.
- End 3% guaranteed raises
- Raise retirement age to 65 or 67
- End double dipping
- Tax the pension payments
- End the practice of paying union leaders pensions based on their pay and time spent in the union just because they once worked for the government
- Consider a 401(k) program for NEW employees, which would mean increasing pay for some public employees, particularly teachers.
