State government workers in Illinois highest paid in the nation: Illinois Policy Institute report

May 13, 2016

CHICAGO (May 13, 2016) – A new report released today by the nonpartisan Illinois Policy Institute finds that state government workers in Illinois are the highest paid in the nation, when wages are indexed for cost of living. The average annual salary of state government workers in Illinois is $59,088 – approximately $10,000 more than the national average for state workers. This is in addition to other benefits such as health insurance and pensions.

The report also found that salaries for state workers in Illinois have increased by 41 percent since 2005, according to state and federal data. Meanwhile, earnings in the private sector have remained nearly flat.

Gov. Bruce Rauner has been negotiating for more than a year with the American Federation of State, County and Municipal Employees, a government union that represents more than 35,000 state workers in Illinois. AFSCME is seeking more than $3 billion in higher salaries and benefits for government workers, including raises that range from 11.5 to 29 percent. The governor has instead asked AFSCME for a temporary salary freeze in return for new merit pay and incentive bonuses, to bring the contract in line with what taxpayers can afford.

“AFSCME claims it’s ‘middle-class’ salaries and benefits are under attack, but the numbers say otherwise. Not only do state workers in Illinois make more than the private-sector workers who pay their salaries, the average pay for state workers in Illinois is out of step with their peers in the other 49 states,” said Ted Dabrowski, vice president of policy at the Illinois Policy Institute. “Illinois taxpayers simply cannot afford the contract AFSCME is fighting for, and it is wrong to ask everyone to pay more so that a mere .5 percent of the workforce can get another round of raises and benefit increases.”

Highlights from the report:

  • State government workers in Illinois are the highest paid in the country after adjusting for cost-of-living differences between the states. Average salary for a state government worker in Illinois: $59,088.
  • AFSCME worker salaries grew 3x faster than private-sector workers’ earnings over the past decade.
  • Median AFSCME worker salaries increased more than 40 percent from 2005 to 2014. During that same period, median private-sector earnings in Illinois remained virtually flat.
  • Taxpayers pay 77 percent of AFSCME workers’ platinum-level health insurance plans, or $14,880 per worker. State workers pay bronze-level premiums for platinum-level health insurance benefits.
  • State government workers in Illinois are eligible for free retiree health insurance after working for the state for 20 years. This benefit has a cash value of $200,000 to $500,000 for each retiree, all paid for by taxpayers. Free retiree health care is virtually unheard of in the private sector.
  • More than half of state workers retire in their 50s, and career workers receive an average pension of $1.6 million. This is in addition to Social Security.

Full report: “Cadillac benefits: Illinois state workers highest paid in nation

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