Update: Reps. Jason Plummer and Sue Scherer were inadvertently excluded from the list of current lawmakers who rejected a pension. Their names have been included.
By: Ted Dabrowski and John Klingner
Illinois’ public pension crisis is coming to the fore after three years of being ignored during covid. Billions in federal aid to both the private and public sectors helped Illinois politicians paper over the state’s growing debts and worsening retiree security, but with pandemic aid finally drying up, they soon won’t be able to ignore the problems.
The state’s official pension debts are back up to a near-record high of $142 billion. Chicago’s police and firefighter funds are almost out of cash. And many local governments are scrambling to deal with a combination of budget deficits and higher pension payments.
The best solution for everyone involved – taxpayers, current workers and retirees alike – is structural pension reform. But that’s unlikely to happen as long as state politicians continue to receive pension benefits from the same retirement plans they’re supposed to fix. They get the same guaranteed benefits for life and automatic cost-of-living increases government workers do. It’s a clear conflict of interest.
The good news is there is a way forward blazed by lawmakers like former State Reps. Tom Morrison and Ron Sandack back in 2010: as newly-elected politicians, they rejected a state pension.
Their rejection was followed by 18 lawmakers who were part of the 2011-2012 legislature, according to a FOIA request Wirepoints received from the General Assembly Retirement System.
Current Rep. Brad Halbrook was in that class and one of the first ten lawmakers to opt out of a pension. His reasoning was simple: “I made the decision to refuse a legislative pension because I knew we were never going to reduce our pension liability as long as the members of the General Assembly stood to gain from the status quo. And it would be hard to preach fiscal responsibility and advocate for reforms if I was personally benefiting from the very system we were trying to change.”
Since then, about a quarter of all legislators have rejected a taxpayer-funded retirement. And in the current 103rd General Assembly, 56 of 177 legislators, over 31 percent, have refused a pension.
That includes 36 of 59 total Republicans (61 percent) and 20 of 118 total Democrats (17 percent).
Ordinary Illinoisans should add a state candidate’s promise to reject a pension as one of the main reasons to vote for them. That alone won’t solve the problem, but at least it will eat away at some of the conflict of interest that governs Illinois’ dysfunctional pension system.
Appendix.
Read more from Wirepoints:
- As population woes continue, Illinois’ loss of congressional seats could accelerate
- Chicago’s public transportation faces massive deficits as federal Covid relief money runs out
- Big red states gain, big blue states drain when it comes to 2023 population growth
- New 2023 data: Inflation can’t save Illinois from its worst-in-nation pension crisis
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
When I think about pensions of Public Sector members my thoughts revolve around the “risk-less” financial lives that Public Sector employees enjoy. In practice the stock market could crash to zero and only Private Sector savers and investors would be; could be, ruined. Nothing would happen to the pension cash flows or incomes and benefits that government workers receive. In years past when Public sector workers salaries and benefits were perhaps 25-30% less than an equivalent Private Sector position, the benefit afforded to the government worker was job security and a pension that was greater than a typical Social Security… Read more »
Here is a somewhat different look at how pensions are calculated.
https://www.financialsamurai.com/how-do-i-calculate-the-value-of-my-pension/
This posting is a good one, but I think my understanding of how they work as well as how they valued is far better than that of most people in the general public. For an introductory overview to a novice it’s likely to be of much more personal value. Kudos to the writer and to you for its posting.
Here is some info about judges pensions. I posted the link way down to Riverbender. Click on the top 100 pensions PDF
https://www.taxpayersunitedofamerica.org/retired-illinois-judges-raking-in-gluttonous-pensions/
First step is eliminating government employee unions. Second step is rectifying their corruptly and criminally ill gotten gains of absurd pensions, grossly-above-market salaries and gold plated benefits. The first step already has traction. Check out this book “Not Accountable: Rethinking the Constitutionality of Public Employee Unions“
Because of the likelihood of a very short term of employment, lawyers in the Chicago Law Department were able to opt out of the municipal employee regular pension. However, they were required to defer equivalent amount into either Social Security or the 457b deferred compensation plan offered by the city. Though saving the State Pension Plan larger insolvency, state politicians may be doubling up on deferred comp plans by investing a mandatory amount plus the voluntary contributions. Also, their regular government job (Highway Department, Forest Preserve etc.) may provide a bigger pension than service in the State Capital. Great that… Read more »
I can’t figure out the sort sequence of the current list. Makes it a bit inconvenient to try to see the status of a particular legislator.
You can manipulate/sort the list by clicking on the various column headers.
Big deal. While these people are refusing a pension, hundreds of new hires are entering into the pension system. These “noble, not accepting a pension” people aren’t fixing anything. How stupid do they think we are? I am not impressed and wouldn’t vote for any of them because of this bad decision. We need real reform and it has to start in the court system.
So you want the courts to ignore our constitution? Good luck with that.
I’m just going to ignore you.
You want the courts to ignore the constitution so that makes perfect sense you would do the same when someone points out a massive flaw in your logic.
Ignoring the truth won’t help you.
Knock it off, PPF.
PPF, time for you to knock it off. She said nothing about ignoring the Constitution and you know God damn well that the Constitution does not include an absolute bar to pension reform. I am tired of getting complaints about your incessant repetition here. I am glad to have you here with an alternative viewpoint on pensions, be we don’t need constant repetition and we won’t put up with comments like that, which was flat-out misinformation.
“We need real reform and it has to start in the court system.” What do you think she meant by this statement Mark? She is implying that the courts were somehow corrupt with pensions when they ruled the only way that was possible based on the clear language of the constitution. You know damn well that it was the only way they could rule. You have many commenters here that spread these kinds of lies and when I refute them it seems to upset you and others because it takes away from your echo chamber. “be we don’t need constant… Read more »
She’s presumably not a lawyer, so maybe she got the sequencing wrong about an amendment. Big deal. Or maybe she was thinking of some other problems with pensions that indeed are the courts’ fault and not dependent on the Constitution. Like Kanerva, an abysmal decision that extended the pension clause to healthcare.
That’s a lot of presuming on your part for you to quickly suggest censoring speech. You are projecting your idea around adding an amendment with her idea of reform. She made no such suggestion around an amendment and there is zero proof that the decision requires any type of reform just because you don’t agree with a decision. FYI, she could have easily clarified her position as to why the courts are corrupt but offered up no such evidence. I consistently provide facts when discussing my point of view and that seems to irritate many people on your site. I… Read more »
PPF is a giant loser who spends all day posting on this board because he has no life. P.S. Your pension is doomed in the future, and you know it. Enjoy posting all day on this board while having no life and no way to stop mathematical reality! All the posts in the world won’t stop your pension from being cut majorly when the world economy breaks. Mark, ban this spamming, no life, biased troll idiot. I won ‘t respond nor even look at your inevitable dumb, biased, troll response because I have a life, but just know I will… Read more »
Many people enjoy posting comments here for various reasons. I enjoy pointing out the illegal and wrong behavior to try and steal from retirees and you seem to enjoy the idea of retirees having their pension checks cut. You even probably think you are morally right in your desire to steal. To each his own. “Mark, ban this spamming” And there it is. You can’t handle someone pointing out the flaws in your arguments so you wish to ban ideas that you don’t agree with. It also lets everyone know that you are afraid of the truth. Enjoy your additional… Read more »
I had to comment again since you were wrong about where I live you idiot. I left Illinois years ago for Tennessee, so you enjoy the additional taxes before your pension implodes! Remember to get a life. I’m sure you’ll have 100 more comments to my 2 comments.
So you lied that you wouldn’t comment. That fits. You also are too slow to see the irony telling others to get a life when you live out of state and come to this site to follow and comment. Try to provide a cogent argument to my stance regarding pensions other than name calling or “you’ll see”. You might just learn something. Although that probably frightens you.
On a humorous note I think those Judges are in the pension system too and right, wrong, up, down inside or out I don’t think they would rule to cut their own pensions
I agree with you RB. I also believe that even if they weren’t part of the pension system they would have ruled the same exact way. The logic and wording of their ruling was solid and even many pro reform advocates don’t think they reached the wrong decision. I don’t think I’ve ever heard Mark or anyone at WP try to make that claim.
Complete nonsense. It was a BS political decision. The logic was stupid too. Only a CapFax contributor or Redditor could convince themselves of the logic. https://www.forbes.com/sites/ebauer/2020/01/08/what-the-illinois-supreme-court-said-about-pensionsand-why-it-matters/?sh=42b4d83c3666 “It’s all, I suppose, a trick of assuming that there is a singular People of Illinois who, through their ratification of the constitution, promised to pay future benefits when they come due, rather than recognizing that the People of 1970 (presumably quite unknowingly) restricted future generations of Illinoisians by forcing them to make these payments without limitation.” And that’s the stupid trick the IL Supremes relied upon to convince themselves that FORMER GOVERNMENT EMPLOYEES… Read more »
“The logic and wording of their ruling was solid”
No need to provide a selfie. I figured that’s what you looked like during your rant that provided no legal basis to disagree with the unanimous decision by 4 democrat and 3 republican justices.
Begs the question…if judges were not pension eligible, would they still run to become judges? I’d argue yes, that the prestige and power of a judgeship far outweigh the pension considerations. And the salary bump is so large that it would far outweigh the pension considerations for any attorney currently working for the govt.
Again, elected positions should not be pension eligible.
Agreed. Now just get the voters to agree with you.
Judges have a pretty good gig all in all including the hours, holidays and pay scale. The pensions are an additional sweetener and then you have Judges that run just long enough to qualify for a small pension with the hospitalization benefits. A 401K type plan is what all State employees should be on in my estimation but they didn’t ask me.
Yes, Social Security and 457 B
Speaking of judges pensions here is some info. Click on the top 100 PDF to see a list.
https://www.taxpayersunitedofamerica.org/retired-illinois-judges-raking-in-gluttonous-pensions/
You do realize this information was gathered in 2012, I presume—more than a little outdated at this point.
I know but now the figures are now much larger due to the 3% compounding for 11 years. I will try to get more updated figures and Happy New Year.
The posting on your part deserves credit, and most here surely realize the effects of compounding benefits meantime. Yet, there are some who likely don’t, the reason for my earlier response. Happy New Year to you as well, a great and somewhat rare courteous responder here.
Top pensions for JRS was 240k per year in 2021. I’m sure many of the people on the list you provided have since died, including the first person on the list that died in April of 2017. The new number one on the list didn’t retire until the end of 2012.
Yes, absolutely. No need to be a bully. Constitution should be amended for a bankruptcy and reorganization to put Illinois into a receivership like Detroit and the state of Michigan. The Constitution and the chokehold public sector unions have on it will completely destroy the financial health of the most mismanaged state out of 50. I can’t wait until it happens, it’s going to be a sight to see all the rats jumping into the water as the ship sinks.
The state can’t amend its constitution to allow for the state to file bankruptcy. These are the kinds of comments I respond to Mark because they are factually inaccurate. Tell me I’m wrong?
I have no problem with that.
Many of my comments point out the inaccuracies of other commenters proposed “solutions” to the problem. You shouldn’t have a problem with my comments as many are like above. If you feel that I’ve been repeating myself to different commenters perhaps you should also analyze those that I’m responding to and ask yourself if they are also repeating the opposite view. I know you wouldn’t want to put your thumb on the scale and shut down my view point while allowing the opposite. At least according to your prior words that’s what I’m left to believe. Also, my comments don’t… Read more »
Those entering they system are in the Tier2 plan that is borderline with Social Security. I wouldn’t want in a Tier 2 plan myself and am surprised there has not been a big outcry over the program
There should be term limits and no pensions for politicians. #Period.
No pension could be considered a backdoor term limit.
If someone wants to spend their entire career in elected office, they can collect a social security check and otherwise fund their own retirement.
I think former Gov Jim Edgar gets the Pension Pig award – never has one public official grabbed so much from the public trough because he could, not because he needed it or wanted to lead. Pure greed and unethical behavior explained by ‘I’m entitled’
Edgar abused the system. He made the laws work for him.
The UniParty ‘Republicans’ seem to revere Edgar. Says a lot.
THANKS JIM! Former GOP Gov. Edgar says he’ll vote for Biden Former GOP Gov. Jim Edgar said Monday that he is voting for Democrat Joe Biden for president this year. “The biggest thing … was the issue of character,” Edgar said in an interview. “I just think Joe Biden is a very decent person.” And he said that while he thought GOP President Donald Trump “might grow into the job” after the 2016 campaign, “I don’t think he’s done that.” “I have been very disappointed,” Edgar said. “We’ve had chaos for four years we didn’t need to have. I… Read more »
Jim Edgar, the man who gave us the
“Edgar Ramp” that brought the Illinois pension mess to where it is today. What a person and of course he is a Biden backer and no doubt was a big Madigan backer as well. Edgar…ugh!
They are all cut from the same cloth.
I keep saying something that is the truth. Nothing will happen with public sector pensions until the first pension check bounces. At that point, someone will take notice. Until then, forget it.
My 2024 prediction is the collapse of the city once the banks decide they can no longer fund the debt. It happened to the CPS in ‘79 and conditions are much worse now. Retail is way down and revenue estimates underlying the Chicago and Cook County budgets are fantasy fiction.
California had a major budget deficit to the tune of billions. I was shocked to hear that Chicago, IL and Cook County didn’t have the same. I haven’t delved into the specifics but my BS meter went off too.
California has many AAA quality bonds in its portfolio. Illinois and Chicago are junk bonds. California is also an economy onto itself which actually is an economic powerhouse. California can be turned around easier than Illinois. California would take twenty years of more reckless decisions to put it closer to insolvency. Illinois is very close in my opinion to a total collapse. Chicago will drag it down the drain for sure. Illinois and Chicago are finished. The perfect storm is right around the corner.
Since the state enshrined pension benefits in its 1970 constitution, this issue has become politically untouchable with the real possibilities of structural reforms being between slim and none.
Until a suitable crisis occurs, it will be business as usual – more debt, more fees and taxes for us, more cumulative inflation-adjusted pension benefits for them.
Just more government for the politicians, by the politicians,
Our Gov, Legislators, and Judges have worked hard at feathering their private nests. Don’t expect any reform from this bunch.
Pigs Paid First