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Pension Increase Amendment

November 2, 2012 By 1 Comment

Below is the comparison done by Reboot Illinois. I have read much on this amendment recently and I stand by my original analysis when this first passed [summary below].  This is nothing more than a ploy by Michael Madigan to ensure union turnout to vote this down.  This amendment really does virtually nothing.

There are 2 items in the amendment wording that stand out.

1.  What is the definition of “otherwise unusually high increase in salary“?  This wording is vague it would make it easy to manipulate nearly all salary increases to be exempt.  One of the current methods to increase pension benefits is the artificial inflation (salary spiking) given with 6% raises during the last 4 years before retirement.  This end of career salary spiking is already costing over $1 Billion each year in additional benefits.

2.  Everyone I have seen so far has focused on the preventing increases portion of the Amendment.  What troubles me most is this part in the next to last sentence, “regardless of whether it includes an increase in contributions or a reduction in any other benefit“.   This sentence appears to give Madigan and Company and easy way to stop any real pension reform.  All they have to do is put and increase in with any reduced pension benefits; thus no real pension reform.

This proposal appears to be just another attempt to play games with the taxpayers of Illinois.  It’s intent is to make it appear as though the leaders in Springfield are trying to fix the system when in fact all they are doing is gaming the system to continue the enrichment of their donors and allies at the expense of the taxpayers.

 

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Filed Under: 2012 Election, Commentary, Public Pension Crisis, Top Stories Tagged With: , ,
About Lennie Jarratt

Small Business Owner, Education Watchdog, FOIA expert, Founder of For Our Children's Future

  • Wolf

    You are completely correct the inflating of the already excessive and fraudulent millionaire pensions by 40% in the last years prior to retirement highlights the extend of the fraud here. Any financial calculations based on a conservative investment plan for the contributions levels made into these plans keeps the payouts under $44K annually maximum. These Public Pension Systems have put a $50 Trillion obligation on the taxpayers for the 23 million millionaires in the Public Sector. It is time to correct this fraud and restore the health and survival of the private sector. It is clear that the government operations and representatives no longer represent the interests or serve the citizens. We need major restructuring and reform of these operations. All Public Sector Labor Agreements need to be approved at the Ballot Box. A Voucher System needs to be introduced at $7K per student annually to restructure these mismanaged Public Education Systems and reform the outrageous property taxes immediately. If there was justice the majority of the principles involved in this fraud would be prosecuted but since the judicial system is part of this fraud, there is no way our present system will correct itself form the inside. Fortunately the impending default of the state and nation is here and that will allow the power of evolution to correct this mess quickly but with great pain for even those did benefit or participate in this fraud or enrich themselves on it.