Padded Pensions Despite Pension Deficit Problems

by Kate Piercy Despite Illinois’s dire pension system, which includes police, fire and public-sector employees, boosting public employee salaries shortly before retirement in order to put them on a path to a bigger and better retirement package has turned into common practice among government in Illinois. Illinois has the most underfunded pension system in the nation,...

by Kate Piercy

Despite Illinois’s dire pension system, which includes police, fire and public-sector employees, boosting public employee salaries shortly before retirement in order to put them on a path to a bigger and better retirement package has turned into common practice among government in Illinois.

Illinois has the most underfunded pension system in the nation, “with only about half the assets needed to cover a staggering $60 billion in liabilities.” According to a Chicago Tribune report, for example:

Shortly before Tim Baldermann retired as Chicago Ridge’s police chief, the town boosted his salary by more than $70,000, handing the 44-year-old as big a paycheck in retirement as he earned full time on the police force.

This isn’t the only move happening. The Tribune says “Some towns are also rehiring retired police and fire administrators, allowing them to collect a salary and pension at the same time.”

For more on the various practices of pension boards in Illinois, check out the rest of the story here.