The Problem
For years, Springfield has made simple issues complicated; full of loop holes and special rules for certain individuals which allow family, friends and campaign donors to increase their pension retirement payout and take advantage of the Taxpaying public. This has led to an unfunded pension liability of $80 – $100 Billion, depending on what numbers you look at. Some of the leading factors that have contributed to this problem are the following:
- Inflated pensions due to end of career salary bumps
- Short vestment periods
- Overly generous percentages and early retirement ages
- Out of control spending and skipping of pension payments
- etc.
The Solution
Pensions must be reformed with a common sense solution for all new and non-vested state retirement system employees, teachers and elected officials or the system will go bankrupt affecting all currently earned pensions. Here is a proposed solution:
- No Pension issued under 20 years of service
- Pension payout will be set on last 10 year salary average
- Elected Officials will not earn a pension without 20 years of service
- Elected will not be permitted to carry Elected official service in to a state Employee CMS position. The only way to use Elected Official service time is if leaving their Elected Position to serve as a Governors Appointee in a 4 year appointment
- No Yearly pension will be more than the $75,000 pension cap, no matter the salary earned during service to the State of Illinois
It is time we started having the hard discussions. We can no longer afford to play around the edges of the major problems and continue kicking the can down the road to our children and grandchildren. We can solve these problems today with a return to common sense instead of the smoke and mirrors used by the political elites in Springfield.
Retirement System Grid
| 20 Years of Service 55% |
25 Years of Service 60% |
30 Years of Service 65% |
35 Years of Service 70% |
40 Years of Service 75% |
|
|---|---|---|---|---|---|
| $20,000 | $11,000 | $12,000 | $13,000 | $14,000 | $15,000 |
| $25,000 | $13,750 | $15,000 | $16,250 | $17,500 | $18,750 |
| $30,000 | $16,500 | $18,000 | $19,500 | $21,000 | $22,500 |
| $35,000 | $19,250 | $21,000 | $22,750 | $24,500 | $26,250 |
| $40,000 | $22,000 | $24,000 | $26,000 | $28,000 | $30,000 |
| $45,000 | $24,750 | $27,000 | $29,250 | $31,500 | $33,750 |
| $50,000 | $27,500 | $30,000 | $32,500 | $35,000 | $37,500 |
| $55,000 | $30,250 | $33,000 | $35,750 | $38,500 | $41,250 |
| $60,000 | $33,000 | $36,000 | $39,000 | $42,000 | $45,000 |
| $65,000 | $3,5750 | $39,000 | $42,250 | $45,500 | $48,750 |
| $70,000 | $38,500 | $42,000 | $45,500 | $49,000 | $52,500 |
| $75,000 | $41,250 | $45,000 | $48,750 | $52,500 | $56,250 |
| $80,000 | $44,000 | $48,000 | $52,000 | $56,000 | $60,000 |
| $85,000 | $46,750 | $51,000 | $55,250 | $59,500 | $63,750 |
| $90,000 | $49,500 | $54,000 | $58,500 | $63,000 | $67,500 |
| $95,000 | $52,250 | $57,000 | $61,750 | $66,500 | $71,250 |
| $100,000 | $55,000 | $60,000 | $65,000 | $70,000 | $75,000 |
