Illinois teachers are required to contribute 9% of their salary toward pensions, but many school districts “pick up” this cost – putting the pension burden on taxpayers.
Tariffs by President Donald Trump sent markets tumbling and temporarily hurt public pension investments. While the markets recovered, the episode showed Chicago’s pension systems are extremely fragile.
With $18.5 billion of the city’s $52.4 billion shortfall driven by interest on pension debt, it’s clear Illinois’ largest city needs the state to pass constitutional pension reform.
Chicago Public Schools teachers hired before 2017 only pay 2% of the required employee contribution for their pensions. The other 7% is picked up by the district, costing $135 million in 2025.
Reports that give Illinois pensions a rotten grade are not evidence government workers need better benefits. What they need is a properly managed, financially solid system. Adding more costs to a fiscal mess helps no one.
Illinois’ top 50 state pensioners can expect an average lifetime payout of $8.47 million despite just $333,844 being contributed during their careers. That’s $1 in, $25 out, thanks to taxpayers.
Illinois’ Tier 2 is a great retirement benefit for long-term state workers. But those who don’t spend their careers in government could be better served by the flexibility and portability of a defined contribution plan.
A local referendum would tell state lawmakers how Lemont Township voters would like to fix $22 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
A local referendum would tell state lawmakers how Palos Township voters would like to fix $83 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
A local referendum would tell state lawmakers how Winfield Township voters would like to fix a nearly $50 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
A local referendum would tell state lawmakers how Homer Township voters would like to fix $7 million in pension debt for which they are responsible. Pension reform is the surest way to provide property tax relief.
Career state workers receiving a Tier 2 pension stand to retire with significantly higher payouts than Social Security would deliver.