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.
Without careful evaluation of whether Illinois’ pensions for newer employees are running afoul of federal rules or what the penalties would be, spending $78 million from the state’s budget is premature and wasteful.
Members of the Illinois Senate Pensions Committee heard from pension administrators and government unions about the need for more benefits from retirement systems that are already broken. The Illinois Policy Institute was there, too, to represent taxpayers’ interests.