Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
What do you think the means testing level should be for pension salary fix? Absolute or related to what you put in and what benefits you are expected to receive?
Every single person has a unique take on this topic as to what’s “fair.” It doesn’t matter how any of us respond to your question. “Math wins” is the ultimate solution as I think most would say, and I don’t disagree. So, it comes down to some legally permissable between that view and the terms of the current Pension Clause” in our IL Constitution. Assuming that the IL pubic pensions really are individual rights given to them by that constitution, then it stands to reason that they as individuals might well be amenable to some form of compromise. I’m all… Read more »
I still trying to figure out if the calculations that determines the pension are based on how the pension clause is written is legal by definition. Example if you check out in the pension code 40 ILCS 5/3-111 it gives an example of a fireman and how the pension is calculated. The word salary and average salary are used. What I’m trying to convey is when the highest 4 years salary are calculated unused vacation,sick time,personal days,etc are calculated in. To me those are benefits not salary. The definition of benefits is a payment or gift made by an employer,the… Read more »
I don’t necessarily disagree with your version. But, really, don’t you think this issue likely has been litigated and probably several times here, there and almost everywhere? So, the legal answer(s) must be out there for all to see. I’d have to guess that what’s being done currrently in the way of pension determinations is considered legal at least until another ruling comes down the pike against it. Some government pension systems seem to allow overtime to be counted towards pensions while some do not as but one example. So, perhaps it gets down to what the rules were for… Read more »
Thank You for your input. It is appreciated. I was trying to see if the exact wording is being followed or just generic. When these laws are made seems like every word and phrase has every contingency in wording to protect themselves.That is why I think that when the word salary is said and not wages or total compensation that it can be an opening to litigation so that only the salary can be used in calculations but as we know everything but the kitchen sink is being thrown in to enhance pensions so that is why the 6% law… Read more »
Where everyone thinks alike no one thinks very much.
In many cases the pensionable income (and thus gross income) is higher than the BGA posted figures.
This is especially true for educators, as BGA obtains those salaries from the ISBE and not TRS.