Editor's Note: This article was created by aggregating news articles from Illinois Statehouse News that were written by various Illinois Statehouse News reporters.
Week in Review: Illinois Pension Reform Still Top Priority
SPRINGFIELD — The Illinois Capitol was quiet a week after lawmakers closed out the spring legislative session, but pension reform negotiations continue behind closed doors in Chicago
Legislative leaders meet with Quinn in Chicago
The state’s four top legislative leaders met with Gov. Pat Quinn on Wednesday in Chicago to begin hashing out pension reform.
The reform effort fell apart in the final hours of the legislative session, when lawmakers disagreed over shifting some costs to local school districts. Democrats supported the cost-shift, but Republicans said they feared it would lead to property tax hikes.
Quinn met with Senate President John Cullerton, D-Chicago; House Speaker Michael Madigan, D-Chicago; House Republican Leader Tom Cross, R-Oswego; and Senate Republican Leader Christine Radogno, R-.
State officials are gathering information from school districts statewide to find out how shifting some pension costs to them and away from the state would affect their bottom line.
“We can’t have partial solutions. That won’t get the job done,” Quinn told reporters after meeting with the leaders.
The reform package is a top priority for Quinn. If the state’s mounting pension liability goes unaddressed, its bond rating could be downgraded.
State’s unfunded pension liability picture could change
A recalculation of the investment returns in one of the state’s major pension funds could affect reform efforts this summer.
The Teachers Retirement System, the largest state-run public pension system, is recalculating the amount of money it makes on its investments. If the figure is lower than the current expected rate of return of 8.5 percent, the system’s unfunded liability would increase.
Furthermore, if the recalculated rate of return is less than 7.75 percent, the unfunded liability will continue to grow yearly, a state budget expert said.
TRS has an unfunded liability of $44 billion, or 55 percent unfunded, meaning it only has enough assets on hand to cover 45 percent of the cost of current and future pensions.
TRS recalculates its expected rate of return every five years. The latest recommendation to change the rate could come as soon as the system’s June 21-22 board meeting. TRS spokesman Dave Urbanek said no decision has been made, and no options have been presented to board members.
Lawmaker panel recommends discipline for indicted colleague
A panel of state lawmakers on Wednesday recommended that the state House pursue disciplinary action against indicted state Rep. Derrick Smith.
Members of the six-person House Special Investigative Committee, formed to examine a federal bribery charge against Smith, a Chicago Democrat, said their probe is complete, and reasonable grounds exist to pursue discipline against him.
The punishment, if any, could be reprimand, censure or expulsion. A new House committee will meet within the next 30 days to begin deliberating what should happen to Smith, who faces a federal charge of accepting a $7,000 bribe.
The new bipartisan Select Committee on Discipline will be headed by state Reps. Lou Lang, D-Skokie, and Jim Durkin, R-Western Springs. It will have 12 members, or “jurors,” who will be appointed from the House — six from each party. Lang and Durkin will “try” the case, and the jurors will hear the case.
Any recommendation of punishment must go before the full House for a vote. A two-thirds majority is required for punishment to be handed down.
“Personally, it saddens me that we’re here today, not only personally, but on behalf of the institution — to go through this process with one of our members. I wish it were otherwise, but these are the cards we were dealt,” said state Rep. Elaine Nekritz, D-Northbrook, chairwoman of the Special Investigative Committee.
State police settlement money due to former Death Row inmate
A $2.5-million settlement check from the Illinois State Police to former death row inmate Randy Steidl must be in hand by June 15, according to records in a civil rights lawsuit pending in federal court.
State police spokeswoman Monique Bond could not verify whether the agency anticipates any problems getting the settlement money to Steidl by the deadline.
“All I can confirm at this time is that the settlement has been approved,” Bond said.
The settlement was approved in October, but the General Assembly had to appropriate the funds, which will come from the fiscal 2013 budget.
Steidl, who turned 60 last year, spent more than 17 years in prison — 12 on death row — for the 1986 killings of newlyweds Dyke and Karen Rhoads in their Paris, Ill., home. The two were stabbed to death and their house set on fire.
The settlement with the state police, if it goes through, means the agency will be dropped as a defendant in the lawsuit, which is still pending against other defendants, such as the former Edgar County state’s attorney and the City of Paris.
Steidl's attorney Flint Taylor, who works for the People’s Law Office in Chicago, said the state has agreed to pay the settlement by June 15.
“We’re hopeful that’s going to happen. We’re in contact with the lawyers for the state, and they’re making every effort to comply,” he said.
— Jayette Bolinski
Do you know any teachers, Ruth? Do you know the amount of schoolwork they bring home every night and on weekends? Do you know that more than 50% of teachers take classes and attend eduational symposiums over the summer to stay abreast of urrent trends, research and educational strategies? (They have to PAY for these things, by the way.) Others teach summer school, work on curriculum, and mentor newer teachers. You know what else, Ruth? There are actually teachers who go into schools and work on the weekends! GASP!!! Some even hold study sessions for their students on Saturdays. And hey, Ruth, ask a teacher how much money they spend on things for their classrooms and students every year. Ask them how many extra-curricular events they attend . . . How many fundraisers they support . . . How many parents they call every night??? Perhaps education isn't important to you, Ruth. Perhaps we should pay these lazy teachers minimum wage and give them no benefits. Forget that retirement crap altogether - they don;t need a pension OR Social Security!!! Think of the QUALITY teachers you would have then, Ruth. I bet you wouldn't spend your days working with 32 first graders . . . or try and teach 150 high school kids who would rather be playing video games or hanging out with their friends than be in school. Yeah, Ruth, it's a SWEAT deal indeed. Oh, and by the way, contrary to what you wrote, NOBODY asked you.
#6 - I hope more people like ruth chime in - because I am asking.
•The average retired government-school teacher was a part-time employee with a part-time career. •Teachers work 170 days or 34 weeks a year or less (182 workdays minus 12 sick days or personal days, per the standard teachers’ contract). Teacher pensions that teachers describe as “modest” are four to seven times larger than Social Security. •The average pension in the Teachers Retirement System (TRS) is $46,000. Average age of retirement is 58, and the average years worked is 25. •For private-sector employees with college degrees, a career typically begins at age 22 and ends at its earliest after 40 years at age 62 or more likely after 44 years at age 66. For government-school teachers, on the other hand, less than one percent work 40 years or more before they retire, and the average teacher works only 25 years." You can read the rest at http://www.taxpayersunitedofamerica.org/
What "should" have happened, is anything that results in a change to the pension payouts, should have a corresponding and immediate change in the pension funding (every teacher raise, every change in healthcare, changes to life expectancy, changes to expected interest rates... it is all computable - the pension plan would always be funded at 100% based on current data). Here is why I believe that didn't happen - I'd almost consider it a conspiracy theory. The elected politicians get votes and campaign contributions when they give in to union demands. Giving public union deferred benefits (like pensions) gets them immediate votes and campaign contributions, but since the benefits aren't payable for many years to come (after that politician leaves office) - someone else is left holding the bag. The unions get better pension benefits for their members - and they know the state is not fully funding the pensions, but instead of adding a constitutional ammendment to fully fund pensions - they get a constitutional ammendment added that the pension benefits can never be diminished. Why? Because there is no way the state can afford to fully fund the pensions, and the unions realize this. Now the state is in a bind - they can't reduce pensions, and the can't afford to fund them.
With regards to your comment, "Most professionals I know don't get an institute day. If I have a week of training, I have make up my work." So in the teaching situation, in order to gather all staff together to analyze data that considers school performance and how to target improvement, we would make our work: ergo, teaching when? Unfortunately, there is some need for administrators to convene district meetings during the school year. It allows for informed instruction. Now you are going to say, do that in the summer, but looking at data trends needs to be done throughout the school year. That is how educators make informed decisions.
Funding comes from taxes: With all this I had to ask myself it is really worth it to own a home in financial terms today? Well do we really ever own a home? For those that have paid off their mortgage (I bet the % is very low) you still don’t own it because the land it sits on and the associated taxes. And these continue to climb.There are no guarantees/entitlement for anyone and it doesn’t matter if you’re in the public sector or private. Just ask any older american who lived through the depression. A 401k and social security that most private sector employees are banking on being there when they retire may not be. For public sector employees including politicians, do you really believe there is a guarantee your retirement will be there? Local politicians don’t have a problem spending tax money for themselves personally just like county and state politicians. Manage the budget if it were you own. Until everyone realizes how serious these issues are and recognizes both sides need to change it’s only going to get worse. I read last week that for every new homeowner in the state of IL. there are two leaving. I hope this issue is resolved and the solution is fair for everyone.
I do think they deserve pensions and a good wage but it has gone way to far, and the teachers and unions must learn we cannot afford it any longer. They better compromise or we should just let it go bankrupt which will leave them with nothing as at that point we should not be asked to bail out an unfair system.
I feel similarly to those expecting good wages along with premium pensions, for we get to pay their abuse of the system as they and their unions ask for more and more. They say how dedicated they are, but go on strike to get more money for salaries and pension. Now the system is bankrupt and my feeling I do not want to bail out another group and I do not care what it says in the Illinois constitution since that can be amended. They either to clean up the situation by reducing oversized pensions and increase the retirement age to 66 or 67 with a penalty for those taking it early at 62, or we should let the whole system go into bankrupcy and we citizens should just walk away from it and let the congressman and other elected officials pay to this fund through their salaries. At this point I think all political officials who have acted irresponsibly in this pension mess should take a 20% pay cut since they have not done their job. Hopefully much of this will not be needed if true compomises may be made so the pensions are at a more reasonable level along with the top income owners. But at this time I think we are entitled to demand a 20% pay cut for the politicians. Quinn and Madigan would be good starting points since they have shownn they are part of the problem not the solution. My real estate taxes are too high and my senior reduction is a joke.
Majority of politicians that made this mess are long gone. Remember, the state stopped funding the teacher pensions in the mid 1950's. It's only been in the last 10 years that the funding has been pretty decent. Nice of you to want to walk away from the teacher pension, how would you feel if the government walked away from your social security? Because this is the teacher's social security. And after you profited by paying lower taxes for decades than was needed. As for buying houses out of their means, back in the day when I bought my first house, most people bought there first house on a wing and a prayer, that was the norm. And people just got by for much of the time their kids were at home, there was no Suze Orman saving of 8 months income. That's because people weren't getting laid off.
My sister, making the same kind of points you did, said, "Well I know you (meaning me) didn't overextend yourself". I have no idea what she is talking about, we had $17 left in our account after closing on our first house. And she wants everyone (a GOP talking point) to pay at least $100 in fed taxes. She grew up with a mom who was a poor widow on VA and Social security benefits and a paltry salary, who had to borrow from Household finance to pay the bills many times. As I said to her, if mom had to pay a $100 in taxes, she would have had to borrow it. In her late 50's, my sis doesn't remember.
I am also aware of my mother first losing her mother and going to Europe with her father and then losing him. She was given money to come back to the states where she eventually met my father who cherished their family and emphasized religion, family, hard work, and education. They were not rich in money that they passed onto their children but they were rich in faith and spirit which they gave to their children who helped them to grow up. I would not have closed on a house with only $17, as it would not be financially sound. Our assumption was at least 20% down, and save until then. Unfortunately too many did buy homes without sufficient funds who should have been stopped. Remember our constitution does not guarantee happiness, but only your pursuit of it. The same may be said about those asking for more and those giving it to them without regard as to who would pay for it. Please do not say the state, since they only tax us to pay for their bills.
With all of this money, the US has fallen to 17th in world ranking regarding education. Apparently you do not necessarily buy good teachers with these bloated benefits but you do buy many greedy ones. Yes there are some very good dedicated teachers and deserve decent benefits, but greed was pushed through the unions and our moronic government gave it to them but these officials also receive absurd benefits. Good case is Daley's $180,000 pension that is not just paid by Chicagoans but all of those in the state.
What pension? Because I taught in a state other than Illinois for the first 12 years of my career, my pension is looking to be about $20,000 a year. And I have to forfeit all my Social Security monies (earned over more than 15 years of full time employment) because I now will have an Illinois state "pension." This is all assuming that by the time I retire when I am 87, any of the pension monies "borrowed" or "redirected" by the state have been replenished. So I know plenty and I will bash what I wish. Perhaps you are barking up the wrong tree. Go attack someone with a cuter blog name - that apparently is very important to you - and says volumes.
The TRS has a publication that addresses the issue ... it is not as cut and dried as you imply. I recommend you read: http://trs.illinois.gov/subsections/members/pubs/booklets/pub20.pdf which covers the issue.
We should all agree that means testing is coming and it will affect both TRS and social security recipients. And lettuce, for my final jab, the real irony bills have to be written using the english language, maybe it's possible that them darn repersentives down yonder springfied dont no what their write-n or read-n.
If you can't afford to move sell all you have to a point you can move with one car. Or rent a truck with another family you know that is leaving. We here in Nebraska will welcome you...we have lots of jobs, way lower taxes, way lower cost of living and our traffic isn't full of angry Chicago drivers.
How is 6.84% in Nebraska state income tax, lower than 5%? Illinois income tax? http://www.bankrate.com/finance/taxes/state-taxes-nebraska.aspx The only way taxes are lower in NE, is if someone makes less than $17K/yr. Sounds like you should be spending more money on education, especially math.