pensions

Pension proposal a move in the wrong direction

By Paul Kersey
12/03/2013
House Speaker Mike Madigan’s latest pension proposal is a giant step backward. The overall effect of this plan would be to leave Illinois pensions worse off than they are today – and that’s saying something, considering the state has $100 billion in official pension debt. If this plan passes, both taxpayers and government employees will...

TAGS: pensions

Savings from Illinois pension “fix” only $14 billion

By Ted Dabrowski
12/03/2013
Though House Speaker Mike Madigan claims his new pension proposal will save $160 billion over 30 years, much of what the Speaker calls “pension reform” is little more than a mix of accounting changes and a plan to commandeer more taxpayer funds. Madigan needed to find more savings since this version of his bill allows...

TAGS: Mike Madigan, pensions

Madigan pension plan makes guarantee taxpayers can’t afford

12/03/2013
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...

TAGS: Mike Madigan, pensions

What you need to know about Illinois’ latest pension bill

By Benjamin VanMetre
12/03/2013
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...

TAGS: pensions, Senate Bill 1

401(k) fraud: Pension bill floats fake defined contribution option

By Benjamin VanMetre
12/03/2013
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...

TAGS: 401(k), pensions, Senate Bill 1

An unfair approach to pension reform

By John Tillman
12/02/2013
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...

TAGS: Detroit, pensions

Five reasons why Madigan’s pension fix is a step backward

11/29/2013
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...

TAGS: COLA: cost of living adjustment, Jim Edgar, Pat Quinn, pensions, retirement age

Illinois has lowest credit rating of all 50 states

By John Klingner
11/19/2013
Chicago’s recent triple-notch downgrade by Fitch Ratings is a stark reminder that Illinois’ inability to solve its pension crisis has consequences. Illinois has the lowest credit rating of all 50 states. In contrast, three of its neighbors have maintained their AAA rating from Standard & Poor’s Ratings Services. Illinois has suffered 13 downgrades from the...

TAGS: Chicago, credit rating, downgrade, pensions

What Illinois Policy Institute’s pension plan means for teachers

By Ted Dabrowski
11/15/2013
The pension crisis has left teachers at risk of losing everything they’re counting on for retirement. Teachers deserve choice and control over their future. The Illinois Policy Institute supports freeing teachers from the bad choices of unpredictable Illinois politicians. Here’s our approach for treating everybody fairly: Pension benefits earned to date are paid. Going forward,...

TAGS: 401(k), education, pensions, teacher salaries

The next municipal bankruptcy?

By John Klingner
11/15/2013
Yet another city is heading toward bankruptcy. Desert Hot Springs, Calif., a city of 26,000 in the south-central part of the state, warned it could run out of money as soon as March 2014. If that occurs, the city could be forced to file for bankruptcy. If that happens, Desert Hot Springs will be the...

TAGS: bankruptcy, Desert Hot Springs, pensions

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Pathway to a Profession: How Apprenticeships Could Reshape Illinois’ Beauty Service Industry

Occupational licensing requirements present one of the steepest barriers to low-income Illinoisans starting careers in beauty services. Illinois requires anyone seeking to become a barber, cosmetologist, nail technician or hair braider to obtain a state license, essentially a permission slip to work. Unlike 45 other states, Illinois offers only one pathway to licensure for each...

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Diana Graham

Process for unionizing non-state workers raises red flags

By Paul Kersey
06/19/2014

CBS Chicago: Illinois’ highest-paid superintendent receives $400K per year to oversee 1,200 students

By Ted Dabrowski
05/02/2016