Opinion: The simplest fix for Illinois’ Tier 2 pensions is the best one – Crain’s*

Derek Douglas, president of the Commercial Club of Chicago and its Civic Committee, Jack Lavin is president and CEO of the Chicagoland Chamber of Commerce and Sarah Wetmore, acting president of the Civic Federation: "We agree this issue needs to be addressed. But in doing so, we urge the General Assembly to stick with the simplest, most cost-effective fix for the safe harbor compliance issue: changing the Tier 2 pensionable salary cap to match the pay cap used to determine Social Security benefits, known as the Social Security Wage Base (SSWB)."
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susan
8 months ago

What is always diverted is the issue of early retirement obligations.
SS offers no early retirement option similar to Tier 1 or Tier 2 (10 years or 20 years work entitlement to multiples of SS 30 year entitlement).

Old Spartan
8 months ago

Hurray! Some of our city’s business groups are finally taking a stand on an important issue. After their cheerleading piece in Crain’s the other day it is nice to see that maybe they understand there are some critical problems they should weigh in on.

Poor Taxpayer
8 months ago

Why should they get less? I agree with the SS base but change the 1st tier to match.

Pensions Paid First
8 months ago
Reply to  Poor Taxpayer

If you want tier 2 to match tier 1 you will need to increase tier 2. Can’t steal from tier 1 pensioners as it’s their money and not the taxpayers to allocate.

Da Judge
8 months ago

Huuuh?

Aren’t Tier 1 pensioners currently stealing from Tier 2 pensioners?

Pensions Paid First
8 months ago
Reply to  Da Judge

No. You’re misinformed. Tier 1 pensioners were offered their benefits by the state. Tier 2 are paying too much for the benefits that they will receive to the benefit of the taxpayer. Tier 1 pensioners had their contract before tier 2 was ever hired. The state or taxpayers is stealing from tier 2. If the state doesn’t change their behavior then they will be violating the safe harbor rules and pay even more. Nothing to do with tier 1.

Poor Taxpayer
8 months ago

I am not sure paying over $50,000 per year in taxes to the State and local governments is stealing. I get next to nothing for this money, and I am the one stealing? I think it is the other way around.

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