In response, the Illinois We Are One Coalition made this statement: “We were not consulted in the development of this plan, but our preliminary review suggests that there are significant problems with HB 6258 that need to be worked through. The pension debt was caused by the state's failure to make actuarially adequate pension contributions, not by public employees, but like its predecessors, this proposal essentially balances the pension debt on the backs of teachers, police officers, nurses, caregivers and other public servants, both active and retired. It is also unclear at this juncture whether this proposal is constitutionally or actuarially sound. We intend to thoroughly analyze this proposal's elements and provide a more comprehensive response in the coming weeks.”
From Illinois Issues Blog
Richard Palzer’s Letter Sent to Representative
Nekritz on November 20th:
As a retired teacher, I remain quite
concerned that the only proposals under discussion to address the pension
problem center on reduction of rank-and-file employee and retiree benefits.
Your position as House Democratic leader of pension reform and your website statements
referring to the abuse of the retirement systems have prompted me to contact
you.
Everyone agrees that decisions of past
legislatures and governors--from underfunding (or not funding at all) and
"diverting" funds for other purposes, to borrowing at higher interest
rates to compensate for contributions that should have been made as
scheduled--are the primary cause of the problem.
Add the costs incurred as a result of
those who, as your statement reflects, gamed the systems to enhance their
pensions, as exposed, for example, by the Chicago Tribune
"Watchdog" investigative series and WGN TV's "Pension
Games," and you have homed in on a second cause, the kind of "abusive
loopholes" you have vowed to close.
Yet, employees and retirees, we who
have not manipulated the system, remain the ones slated to bear the cost of the
so-called "reform," hardly fair when you're targeting the wrong
people; in fact, because retirement funds were used to finance other
projects--which should have been paid for by incremental tax increases all
along--current workers and retirees would wind up twice victimized.
I found it quite interesting--actually
infuriating--when during an interview by host Phil Ponce on "Chicago
Tonight" (April 25), guest Tyrone Fahner not only admitted that
public-sector employees had not caused the problem, but that deliberately not
making required payments would be considered criminal if it occurred in the
private sector.
But, you may argue, despite who is to
blame, the money isn't there--everyone agrees with that as well. However, there
is an alternative solution that deserves consideration, one that addresses
funding in ways that do not unfairly target rank-and-file employees and
retirees. The underfunding problem is just that, one of revenue.
Please seriously consider the analysis
and recommendations of the Center for Tax and Budget Accountability, which has
concluded that Illinois has a funding problem that structural tax reform and
restructuring the infamous back-loaded "ramp" repayment schedule can
successfully address.
For quick reference, Ralph Martire, its
executive director, wrote an editorial summarizing the Center's finding--the
Daily Herald published his comments as a guest editorial in its July 3
issue. His June 19 presentation to the State University Annuitants Association
in Springfield outlines in more detail the arguments for reforming the tax code
and fixing the "ramp."
I have been continually frustrated that
most people are not even aware that an alternative assessment and proposals
exist, despite contacting my local legislators as well as other legislative
leaders of both Parties and the Governor; absent such information, the public
is not getting a full picture, and that's irresponsible.
Given Civic Committee Ty Fahner's
recent ominous warning that even the draconian benefit-reduction measures he
and his committee advances won't cover the extent of the debt, he is tacitly
recognizing that Illinois does indeed have a revenue problem.
Reducing benefits--even if it were
fair--is not the answer. It only makes sense to pursue a more productive,
fiscally responsible path that can lead to financial stability.
I'm asking that you use your leadership
position to move debate from benefit-reduction as the only game in town--it's
not and shouldn't be.
Thank you for your consideration.
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