from The Associated Press
SPRINGFIELD,
Illinois — a business group says the Illinois pension system is
"unfixable" and that even current retirees' benefits will have to be
cut to keep it from bankruptcy. The Civic Committee of the Commercial Club of
Chicago told members Wednesday in a memo -- shown to The Associated Press in
advance -- that keeping the state's five pension systems from collapsing will
require drastic action. That includes eliminating annual cost-of-living
increases, capping the salaries that pensions are based on and more. Committee
president Tyrone Fahner told the AP that current state employees and teachers
will never see the benefits promised them. The systems are underfunded by at
least $85 billion. The committee hopes to light a fire under a stalemated legislature.
Fahner says lawmakers' ideas for reducing benefits are "half
measures."
Letter to Members of the Commercial Club from Fahner, et al.
Letter to Members of the Commercial Club from Fahner, et al.
Commentary
Remember
this: it is a “rigged system” that exempts the
wealthy from their proposed “reforms.” The rising inequalities that continue to
exist in Illinois are funded by powerful and wealthy interests’ groups, like
“We Mean Business” of the Civic Committee of the Commercial Club of Chicago. Ty Fahner of the Civic Committee said prior to the elections that he wanted “to build a $1 million pot” by November to elect lawmakers who back pension reform. Well, Representatives Tim Schmitz, Elaine Nekritz, and Darlene Senger are among some of the legislators who have received donations from the Civic Committee’s “We Mean Business” coffers.
There are legislators who proffer unequal opportunities for the citizenry and quantifiable payoffs for the state’s largest corporate executives to ensure patronage for their re-election campaigns. I guess it’s time for payoffs now.
Such is the case in the State of Illinois where the government is held hostage by affluent and influential “special interests” (to protect the riches of the state’s wealthy ruling class); where both the Republican and Democratic parties (the Money Party) are one side of the same dirty coin corrupted by briberies (unlimited campaign funding) made legal; and by the Civic Committee of the Commercial Club of Chicago, in particular, that can and will manipulate the state’s politicians, set the legislative agenda, and hoodwink and oppress an oblivious populace, especially through media and its obverse website Illinois Is Broke.
What is the relationship between dishonest politics and corrupt partnerships? A substantial amount of campaign money affects the ability and the will of our state legislators to make ethical decisions. It is money and their re-election that motivate legislators to believe that radical “pension reform,” for instance, is a road to navigate for reducing the state’s future budget deficit.
Of course, Illinois policymakers will attempt to break the contracts with their public employees by calling it “pension reform” very soon, and Pulitzer Prize-Winning Reporter David Cay Johnston states why: “It is the rich who are gorging themselves on the government with giveaways, favors, contracts, rules that rig the economy, tax breaks, and secret deals [and not the majority of citizens in Illinois, many of whom are public employees with a hard-earned pension plan]” (Free Lunch, How the Wealthiest Americans Enrich Themselves at Government Expense and Stick You with the Bill).
By the end of January 2013, public employees of Illinois will become
victims of well-financed, organizational interest group politics and unreasonable
policies unless they unite now and defend their rights and benefits.
What does the Civic
Committee want?
Eliminate all cost-of-living increases
for retirees or future retirees;
Cap the final salary on which pensions may be based;
Increase retirement age to 67;
Shift the cost of teacher pensions to local school districts over a 12-year period.
Cap the final salary on which pensions may be based;
Increase retirement age to 67;
Shift the cost of teacher pensions to local school districts over a 12-year period.
AFSCME’s Response
Millionaire CEOs want to
slash the modest retirement savings earned by middle-class public servants like
teachers, police, nurses and caregivers. Regrettably, that’s not news. But it
is disappointing that the Civic Committee’s letter to the governor is alarmingly
fact-free: No mention that the pension debt was mostly caused by politicians
who skipped required payments even as public employees always paid their share.
No mention that retirees rely on an average pension of just $32,000 a year,
with nearly 80% not eligible for Social Security.
But Illinois residents reject these false attacks. Last week they
defeated a change to the Illinois Constitution meant to pin the blame for the
pension problem on workers and retirees. And a recent statewide newspaper poll
found that voters rightly fault politicians, not workers, by a margin of 51 to
2.
Like all public employees, AFSCME members are helpers and problem
solvers by trade, and we remain ready to help solve the pension funding
problem. But that’s going to require everyone to work together.
Along with our partners in the We Are One Illinois coalition of
unions that represent public employees, we have proposed a pension funding
framework that would guarantee politicians pay their share going forward, never
repeating the mistakes of the past. It would protect retirees from changes
while offering that active employees would make increased contributions to help
pay down the debt. And crucially, it would end tax giveaways for big,
profitable corporations, helping Illinois to end its practice of using public
retirement systems as a credit card to fund vital public services. This last
imperative explains the agenda of the CEO crowd: They want to protect their
special treatment in the tax code at all costs—even if that means picking the
pockets of retired teachers, fire fighters, child protection workers and other
public servants.
from Crain's Chicago Business:
State’s pension systems will run out of cash even if lawmakers make big changes
from Crain's Chicago Business:
State’s pension systems will run out of cash even if lawmakers make big changes
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