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More Pension Problems

Crisis Caused by Springfield Career Politicians Continues -

After touting a pension plan that allegedly saved the state $160 billion over thirty years, newly released bond documents expose major shortcomings in the overall scope of the new pension law.

Not only does the pension plan save $15 billion less than was promised, but the documents also reveal the shaky foundation upon which the entire plan is built. According to the filing, a fraction of the projected savings occur in the first 10 years of the 30 year plan.* The other projected savings are heavily back-loaded.

“This pension plan continues to look more and more like other plans crafted by Springfield insiders that appear good on the surface, but fail over the long term and make real reform harder,” said Mike Schrimpf, spokesman for Bruce Rauner’s campaign. “Like the 1994 pension plan that kick-started the pension crisis, the new law is shortsighted, unrealistic, fails to fundamentally reform the system and could make things even worse.”

According to the Chicago Sun-Times, the SEC cited the 1994 pension bill as the “primary driver” of the pension crisis.

“The politicians running for governor have all been in Springfield for the last two decades and played a major role in causing the pension crisis,” Schrimpf added. “It’s clear that career politicians are unwilling to shake up Springfield and won’t ever truly fix the pension system.”

“No wonder they also refuse to condemn the attempts by Pat Quinn and his allies to hijack the GOP primary,” Schrimpf said. “They all take money from the government union bosses and are part of the broken system of politics in Springfield.”

Pat Quinn Government Union Contributions
- More than $4.5 Million

Kirk Dillard Government Union Contributions
- More than $450,000
- Seeking endorsement from Illinois Education Association
- Seeking SEIU endorsement

Dan Rutherford Government Union Contributions
- More than $50,000
- Seeking endorsement from Illinois Education Association
- Seeking SEIU endorsement

Bill Brady Government Union Contributions
- More than $15,000

* State of Illinois General Obligation Bonds Preliminary Official Statement Dated January, 24, 2014 - Page 87 (Table 34A) - Reduction in Contributions FY 2015-FY 2044.

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Wolf says:

January 28, 2014 at 6:28 pm

The entire Public Sector Pension Plan is an outright fraud on the taxpayers. The fraud practiced and fully documented in all the Public Sector Labor Agreements shows that the final Salary of this defined Pension Plan is increased by 40% in the final years prior to retirement and that the salary compensation package is generally 50% above any comparable private sector function. The investment plan is based on a 8% return without absorbing any losses at these risk levels. The employee contribution is 9.2% compared to the Social Security 6.2% and the company match or taxpayer match is 9.2% compared to Social Security of 6.2% yet these Public Sector Plans want to pay better than 85% of the final salary with 3% or better COLAs while the Social Security plans will payout between $10K to $26K annually with COLAs less than 1%. Where in this World but in the Public Sector can one get 85% or more of their final salary that is massively bloated and inflated by 40% in the end and have 3% or higher COLAs moving forward without any risks. These millionaire Pension Plans are clearly a fraud on the taxpayers by all the Public Sector members. A conservative investment analysis shows that these plans should never payout more than $44K annually yet these plans payout $100K plus for most of the recipients without any risk to the members. This Public Sector operation is the biggest fraud on taxpayers in World history.

Danni Smith says:

February 6, 2014 at 6:24 pm

Here are some stats: 40% of the US. population has a government job. 60% work in the private sector. Except 1/3 of the private sector is unemployed. The public sector earns $3 in salaries, bonuses, pensions and spiffs for every $1 earned in the private sector. So it’s one on one- 100% of the private sector is going to support 100% the public sector? In simpler terms, the person earning $40,000. is going to support the person earning $120,000. How does that work, teachers? Please, teach me if you can.

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