"Want to
talk about cheap tricks?" you ask in Tuesday's editorial, "August
17," (July 31). Yes, I certainly do, and I have candidates in addition to
your examples of Illinois' pension systems being the nation's worst-funded.
Let's start with the causes: the raiding of the retirement systems' funds over
decades by legislators and other public officials, who diverted those funds for
other uses, decided to underfund required contributions and, at times, even
didn't contribute at all by taking so-called "pension holidays" – all
of which led to the subsequent borrowing at higher interest rates to compensate
for those inadequate and missed payments.
The victims of
these cheap tricks, of course? The average employees and retirees relying on
their promised benefits. At this point, let's make special mention of those who
used their clout and position, unethically if not illegally, to game the system
by writing and manipulating rules to enhance their own retirement. (Look no
further than your own "Watchdog" series and most recently, Monday
night's WGN – Tribune-owned – "Pension Games" expose, both of
which point fingers and name names.)
Your readers and
those who viewed the program – indeed, anyone paying attention – must be
outraged at the mismanagement, the irresponsibility, and the self-serving
machinations that have caused this financial crisis.
Want to talk
outrage? How about those same rank-and-file employees and retirees who had
their retirement funds stolen and, yet, are now being targeted as the ones to
close the funding gap by having their benefits reduced? That double-theft
should certainly meet your definition of cheap trick as well. I find it
outrageous that the "solutions" being proposed by the politicians – and
sadly, not just supported but heartily endorsed by the Tribune – center
on diminishing benefits of the victims.
Once again, you
urge the Governor and the lawmakers not to "leave Springfield until you've
fixed pensions." But what does such "fixing" entail? Higher
employee contributions, COLA reductions – whatever politicians can agree to
that will extract from people's benefits? And these after your own
investigative reports have exposed the real culprits?
More outrage – despite
documented information arguing that Illinois has a revenue problem, that it's
not the cost of benefits that is fueling the debt crisis. No mention is made
that these alternatives to solving the problem even exist, let alone are
recommended and may well be preferred. Only a glancing reference in reporter
Mark Suppelsa's "Pension Games" to the infamous back-loaded repayment
schedule – the so-called "ramp"—suggests that there is a focus
besides benefit reduction.
Analyses,
conclusions, and recommendations from the Center for Tax and Budget Accountability's Executive Director Ralph Martire and the Center on Budget and Policy's Iris J. Lav and Elizabeth McNichol detail tax structure changes that
they maintain can put us on a path to solvency. If, indeed, such views have
been considered – even dismissed – it's outrageous that in all of your
coverage, your readers have been steered to benefit reduction as the only
solution available. That's not accurate; that's not balanced. And not even
making your readers aware that alternative solutions have been presented also
qualifies as a cheap trick.
–Richard Palzer
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