One of the biggest flaws in the pension “reform” proposals that have come out of Springfield has been “pension-funding guarantees” – provisions that would contractually obligate the state to fund public pension systems. The problem with any pension funding guarantee is that it commits taxpayers to spending that could lead to higher taxes, render the...
The 401(k) option is a fake: The bill says that some people would be allowed to participate in a 401(k)-style plan. But participation in the 401(k) option is limited to 5 percent of Tier 1 members (which includes members who were hired before 2011). Once 5 percent of these members are in the plan, it...
Lawmakers are touting the 401(k) element in House Speaker Mike Madigan’s proposed pension reform bill. But a close look at the bill shows this 401(k) option is a disaster waiting to happen. Participation in the 401(k) plan is limited to 5 percent of Tier 1 membership (meaning workers hired before 2011) on a first-come, first-serve...
REPORTS Pension Solutions: reforming retirement age More than 50% of Illinois government pensioners retired at age 59 or younger. Read more… Pension Solutions: cost-of-living adjustments are supersizing state pensions More than 8,000 Illinois government retirees receive more than $100,000 in annual pension benefits. Read more… Illinois’ pension system lacks transparency Actuarial data need to be...
For 33 years, Clyde Tome served the city of Detroit as a firefighter. Every day he was on duty he knew his life was on the line; in one encounter with riot fires, Tome watched a colleague die. Another time, he saw a nearby fireman killed in a random shooting. For his commitment, Tome counted...
There’s immense pressure on Illinois legislators to pass a pension bill. With the state pension system nearing insolvency and credit agencies warning of further downgrades, the perceived wisdom is that any pension fix, no matter how small, is a “step forward” that must be passed. But when it comes to pension reform in Illinois, that...
It wouldn’t be entirely fair to say that government unions exist solely to make government less effective and more expensive, but sometimes that’s just exactly what they do. One blatant example came a few weeks ago, when American Federation of State, County, and Municipal Employees Council 31 pushed the state into abandoning its contract with...
There really is no good time to call a strike, but late in November might just be the worst. That sums up the situation faced by around 1,000 Will County government employees. The American Federation of State, County and Municipal Employees Local 1028 called a strike against the county back on Nov. 18. If AFSCME...
Working at free market think tank in Illinois, it’s easy to get discouraged by bad policies. Despite the many problems Illinois faces, there is much to be thankful for. In the spirit of Thanksgiving, here are some of the things we are most thankful for this year: Illinois’ flat income tax. Illinois’ current flat tax...
What are you thankful for? We’re thankful for people like Pam Harris who stand up to the government when it threatens their rights. Pam is a mom in northern Illinois whose son, Joshua, needs constant care because of a rare genetic syndrome that causes severe intellectual and developmental disabilities. Pam receives a modest subsidy from a Medicaid-waiver...
The same president who wanted gift registries filled with donations to his campaign is back with another turkey of an idea. This time, the idea is to infiltrate Thanksgiving dinner with an ObamaCare enrollment push. Never mind that talking politics is right up there with the “when are you going to finally get your life...
Service Employees International Union Healthcare Illinois-Indiana is the largest union local in Illinois, but that’s not the only thing about this union that is interesting. The local also has an alarming number of agency fee payers, or workers who are covered by a union contract but who refuse to join the union formally. Instead, they...
The late newspaper columnist Charley Reese once wrote: “Government is inherently incompetent, and no matter what task it is assigned, it will do it in the most expensive and inefficient way possible.” Reese could have easily been referring to the state of Illinois’ recent decision to replace a private firm to scrub the state’s Medicaid...
The General Assembly Retirement System, which provides pensions to retired legislators, is broke.