Being in the top 10 of Illinois’ five statewide pension systems is an investor’s dream and a taxpayer’s nightmare. The median investment is shy of $166,000, but the estimated lifetime payout is $5.5 million.
Illinois state lawmakers shorted pensions by $4.1 billion and killed scholarships for low-income students, but gave themselves pay raises and a new office building. Their budget leaves no room for error as revenue projections drop.
No matter what rhetoric about passing a balanced budget comes out of Springfield, the state budget will automatically be unbalanced because of inadequate pension contributions.
Officials at the General Assembly Retirement System suspended Michael McClain’s legislative pension after he was convicted on nine counts of bribery in the ‘ComEd Four’ trial. Precedent suggests it may not be permanent.
The proposal by state Sen. Robert Martwick is intended to fix a technical problem with the Tier 2 pension system, but Martwick said he doesn’t know how much it could cost taxpayers. He said it could be “billions.”
Fifty-six percent of Illinoisans support amending the Illinois Constitution to reform the state’s public pension systems. Illinois has the nation’s least-funded pension plans.
Despite claims of Chicago’s improving financial condition, the $48 billion in pension debt for the city’s core retirement systems continues to loom over its fiscal future.
Mayoral candidate and Chicago Teachers Union organizer Brandon Johnson is eligible to collect an estimated $1.1 million pension through the Chicago Teachers’ Pension Fund despite only teaching for four years. His future path could yield a public pension worth over $2.8 million.
A Chicago civic group suggests either increasing the state’s personal and corporate income taxes for 10 years or implementing a retirement tax to help pay for the state’s worst-in-the-nation pension debt. Here are the problems with that plan.
The typical career state worker collected $82,478 in annual pension benefits, recouping more income in 17 months of retirement than they contributed over 35 years. Working Illinoisans only earned $59,650 a year.
Just like Chicago Mayor Rahm Emanuel did late in his term, Mayor Lori Lightfoot is calling for public pension reforms. Pensions are damaging cities, she said.
The typical career state pensioner earns more in retirement than Illinoisans do working. Households now pay over three times more than they did nearly two decades ago to cover the costs.
Illinois’ five statewide pensions system saw their debt increase by nearly $10 billion to a grand total of $140 billion in fiscal year 2022. Pensions will cost the state nearly $11 billion next year, but that’s still $4.4 billion too little.
The Biden administration promised nearly $36 billion to stabilize pension plans for Teamsters nationwide after forecasts predicted the system’s default by 2026. Union members would have seen their retirement benefits slashed by 60% if the system defaulted.