McHenry Times|With primary win secured, Allen Skillicorn vows to continue fight against Mike Madigan in House

Tax Accountability’s, the political action arm of Taxpayers United of America (TUA), endorsement of Allen Skillicorn was mentioned by McHenry Times.


In the four-candidate race for House Representative in District 66 that became a three-candidate race at the 11th hour, Allen Skillicorn emerged as the winner of the Republican primary on March 15.
“I am feeling good,” Skillicorn told the McHenry Times. “We are excited about finally being able to publicly declare victory.”
The East Dundee trustee and vice-chair for the Kane County Republican Party said he personally knocked on more than 10,000 doors, and talked to voters about property tax relief and the need for Republicans to stand up to House Speaker Mike Madigan — a message Skillicorn said was very well received.
Now that all the signs and campaign litter has been cleared up, Skillicorn said it’s time to continue the conversation about Madigan and the state of Illinois.
“The next stop is continuing to talk to voters and raise awareness about what Speaker Madigan is doing in Springfield,” Skillicorn said. “Currently the House is on spring break until April and the fact is we need a budget; the fact is we need pension reform; the fact is we need significant financial and business reforms to get the Illinois economy going; and Mike Madigan refuses to advance those issues. He also refuses to even schedule the House to meet.”
Skillicorn, who claimed approximately 33.04 percent of the votes in McHenry and Kane counties, will face off against Democratic challenger Nancy Zeller in November for retiring State Rep. Mike Tryon’s seat.
“She’ll be able to get some financial resources and she has some fans in the area, but at the end of the day she has a track record of raising property taxes,” Skillicorn said. “She supports Mike Madigan and she supports Madigan’s tax increases. I don’t think the voters of the 66th District are going to be able to identify with those issues.”
Curtailing property taxes has been the hallmark of Skillicorn’s campaign. Skillicorn was elected as East Dundee trustee in 2011 and fought to keep property taxes from rising. His efforts ultimately helped lower village property taxes per home.
The marketing director signed the Tax Accountability Taxpayer Protection Pledge on July 10, 2015, and has been endorsed by Tax Accountability, the political action arm of Taxpayers United of America (TUA).
In addition to solving property tax problems, Skillicorn wants to help promote accountability in Springfield and believes term limits for elected officials would greatly reduce corruption in government.
For now, Skillicorn is grateful for voters’ support and promises to be their voice in Springfield.
“I just want to thank people for their support, and we plan on taking the fight to Mr. Madigan,” Skillicorn said.

Madison Record|Haine and Haida among top IMRF beneficiaries in state; Though adequately funded, critic says pension system 'just as efficient at stealing taxpayer wealth'

President and founder of Taxpayers United of America (TUA), Jim Tobin, was quoted by Madison Record about the latest IMRF Pension data release.


The top Illinois Municipal Retirement Fund (IMRF) beneficiaries in Madison and St. Clair counties are among the state’s highest paid. And both of them – a lawmaker and a judge – are accruing benefits in other pension systems that will provide even more tax payer-supported income for life when they retire a second time.
State Sen. William Haine (D-Alton), who served as Madison County State’s Attorney for 14 years (1988-2002), began receiving IMRF pension benefits one month after he was elected to the 56th Senate District in November 2002.
According to Taxpayers United of America (TUA) pension analysis, Haine currently receives $148,042 annually from IMRF. He began receiving pension payments on Dec. 1, 2002 at age 58. He retired after 26.5 years of credited service at the county, which included work as a public defender and county board member.
To date, Haine has received $1,714,021 in IMRF payments. He contributed $110,031 into the system. Based on a life expectancy of 85, Haine will receive an estimated $3,033,922 in lifetime benefits from the IMRF.
His current salary as state senator is $67,836, plus he receives $111 per diem while in session. His total tax-payer supported annual income is approximately $228,804.
When he is no longer a state legislator, Haine will be eligible for benefits from another state pension system – the General Assembly Retirement System (GARS).
In St. Clair County, Circuit Judge Robert Haida, who served as St. Clair County State’s Attorney for 19 years (1991-2010), began receiving IMRF pension benefits in 2012, two years after he was elected to the Twentieth Judicial Circuit.
Haida currently receives $154,084 annually in IMRF benefits. He was 55 when he retired as state’s attorney; he is credited with having worked 24.6 years as a county employee, which also included time as an assistant state’s attorney.
To date, Haida has received $520,442 in IMRF payments. He contributed $209,176 into the system, and will have received an estimated $4,283,142 at age 85.
As a circuit judge he is paid $178,835, bringing his total tax-payer supported annual income to $332,919.
When he is no longer a judge, Haida will be eligible for benefits from another state pension system – the Judicial Retirement System (JRS).
The state senator and circuit judge – both of whom seek to keep their seats in the November general election – were named to the TUA’s list of top 200 IMRF beneficiaries, Haida in 40th place and Haine in 50th.
“The IMRF, although touted as the gold standard in government pension funds, is just as efficient at stealing taxpayer wealth to benefit the political elite as any Illinois state pension fund,” said Jim Tobin, TUA president, in a press release.
“The entire list of the top 200 IMRF annual pensions exceeds $116,000 with multi-million dollar lifetime payouts that are largely taxpayer funded. Although the IMRF is adequately funded, that doesn’t make it fair to taxpayers, especially considering that the total unfunded liabilities for Illinois government pensions is far in excess of $111 billion.”
The TUA reported these statistics regarding the IMRF:
• Total number of pension beneficiaries is approximately 119,556
• 478 collect pensions in excess of $100,000
• 5,916 collect pensions in excess of $50,000
• The average 2014 annual pension is $17,268
• The average amount that employees paid into their own pension fund is $19,030, or 4.6 percent of their estimated lifetime pension payout
• The average estimated lifetime payout is $411,998, based on a life expectancy of 85 and an annual 3 percent cost of living adjustment
• The average age at retirement is 62
• The average years of employment are 18
• In fiscal year 2014, taxpayers were forced to pay $923,382,825 into the government pension fund
• In fiscal year 2014, local and county government employees paid $351,089,445 into their own pension fund
• The net return on investment for IMRF in fiscal year 2014 was only 5.8 percent, or $2,001,440,028
• As of the end of fiscal year 2014, IMRF had an 87.3 percent funded ratio with a $4.8 billion unfunded liability
Tobin and other pension reform advocates support changing public pension systems from the current defined-benefit system to 401(k) style retirement savings accounts.
“But this type of positive, sweeping reform cannot occur without first amending the Illinois Constitution by removing the government employee pension protection clause,” Tobin stated. “However, the Illinois General Assembly could immediately require that all new government employees be placed in a 401(k) style defined-contribution plan, which would eliminate additional unfunded government pension liabilities immediately.”
He said that taxpayers are forced to pay $2.63 for every $1 that pensioners pay into their own IMRF fund annually, or 263 percent.
“I can’t think of a single private sector employer who does that,” he stated. “Social Security payments by the employer are an equal match to employee payments.
“Today’s taxpayers should not be required to pay for services rendered years ago, just as bureaucrats and politicians should not be allowed to balance today’s budgets on the backs of tomorrow’s taxpayers. Let’s make necessary reforms that will benefit all of Illinois economically and finally do something that actually is ‘for the children.’”
A pension reform bill passed by the state legislature in 2013 was struck down by the Illinois Supreme Court last year when it sided with public unions in ruling that the state was obligated to protect public worker pensions.
And ever since Republican Gov. Bruce Rauner was elected in 2014 on a reform platform, Democrat lawmakers, who control both branches of state government, have resisted his proposals to transform the state’s under-funded pension systems.
Legislation introduced by Republicans this session would give retired government workers a choice in collecting benefits over several years, or cash out immediately but with a smaller lump sum.
Two bills on the subject were discussed during a testimony-only committee hearing last week – House Bill 4427 sponsored by State Rep. Mark Batinick (R-Plainfield) and House Bill 5625 sponsored by State Rep. Mike Fortner (R-West Chicago).
As reported by Illinois News Network last week, under one scenario in Batinick’s plan, it would take the state a $700,000 up-front investment to fund the pension of an employee projected to draw $50,000 annually.
The legislation would offer workers essentially three options: Accept the $50,000 annual pension; take an immediate payout at about 75 percent of $700,000; or take an immediate, partial amount and still get an annual pension payment — although smaller than $50,000, according to the report.
Chairperson of the House Personnel and Pensions Committee Elaine Nekritz (D-Northbrook) said the state should not force workers into reduced, lump sum payouts.
That decision, Nekritz said, “would have to be completely voluntary and only at the whim and desire of the participants,” the Illinois News Network report stated.

Chicago Tribune|Taxpayers need way to claw back excessive state-funded pensions

Taxpayers United of America’s (TUA) data on the recent Teachers Retirement System pensions was cited by Chicago Tribune


It’s hard to tell how former Lincoln-Way High School District 210 Superintendent Lawrence Wyllie feels about his role as the newest poster boy for excessive state-funded pensions in Illinois.
Wyllie was a highly regarded educator when he retired in 2013, but he’s saying little publicly these days. As the district prepares to close one of its four high schools to narrow a budget deficit, Wyllie is mum about collecting the largest pension in the Teachers’ Retirement System.
His pension is $312,081 this year and will grow to $321,443 next year thanks to an automatic 3 percent annual cost of living increase. That’s a difficult figure to grasp, since the highest gross earnings of his career were “only” $276,307 during his final year of employment.
The formula used to calculate Wyllie’s overly generous pension has been phased out, but taxpayers are still on the hook for the guaranteed benefits.
As outrageous as Wyllie’s retirement pay is, it pales in comparison to others. TRS is one of five pension systems for public employees in Illinois. The state’s highest pension is paid through the State Universities Retirement System (SURS) to Tapas Das Gupta, former chair of surgical oncology at the University of Illinois at Chicago. His annual pension was $466,409 last year.
Coverage: Lincoln-Way School District 210
Coverage: Lincoln-Way School District 210
I think Gupta and other SURS pensioners pulling in shocking paydays are the reason Gov. Bruce Rauner is punishing college students by withholding state funding for higher education during the budget impasse.
Because SURS has bigger pensions, it’s no small feat that for the moment TRS is grabbing headlines for more egregious abuses of taxpayer money. Last week, Taxpayers United of America, one of many groups that has been analyzing Illinois’ pension crisis for years, released updated stats about TRS’ 114,434 pension beneficiaries.
Taxpayers United found that 8,507 TRS members collect pensions in excess of $100,000 a year, and that employees on average pay only 4.1 percent of their estimated lifetime pension payout into the system.
That means you, me and other state taxpayers pay 95.9 percent of pension benefits, on average.
I know numbers can make your head spin sometimes, so I’ll try to keep the math to a minimum. You’re outraged that a civil servant collects six figures a year in retirement, right? Public pensions should be capped at $100,000, watchdogs and ordinary Joes have been saying for years.
Ah, but the state Supreme Court has ruled that denying already earned benefits to pensioners would be unconstitutional. Our legislators can and should reform public pensions moving forward, but is there any way to spare honest taxpayers the burden of excessive benefits already granted to pensioners?
The answer is yes, by taxing retirement income.
This is not a new idea. Taxpayer watchdogs and economists who have studied Illinois’ budget problems have suggested this for years. Illinois is one of just 12 states that do not tax retirement income, the Civic Federation says. Among states that impose an income tax, we’re one of only three that exempt all pension income.
No one wants to punish the salt-of-the-earth teachers and municipal clerks who worked hard all their lives and paid into a system. They deserve a fair pension. Benefits for those folks and elderly collecting meager monthly Social Security payments can easily be preserved by exempting, say, the first $50,000 of annual retirement income.
For the record, Taxpayers United is against taxing retirement income. The group responded in January to an idea floated by Barbara Wheeler, a Republican state representative from Crystal Lake. Wheeler suggested taxing state pensions.
I like the idea. Even if Illinois were to tax retirement income a guy like Wyllie, who owns a residence in Florida, could simply declare residency in the Sunshine State and collect his full pension where retirement income is not taxed.
As much as I’d love for taxpayers to be able to claw back absurdly generous pensions, the state and U.S. constitutions have uniformity clauses that make it illegal to target one group for taxation, even if that group happens to consist solely of obscenely compensated public servants.
Taxpayers United says the solution is to repeal the 1970 Illinois Constitution clause that protects outrageous government pensions from reform. But the state’s powerful unions will block any effort to reform the state Constitution.
In 2012, House Speaker Michael Madigan backed an effort for a constitutional amendment that would have required a supermajority of state legislators to increase pension benefits. It passed unanimously in the House and received only two “no” votes in the Senate.
But a supermajority of voter approval was needed statewide, and in the face of union opposition only 56 percent of voters supported the measure. Consider that to be a test of the likelihood of amending the state Constitution to bring about reasonable pension reform.
As a state, we’ve made zero progress on pension reform, and here’s some math that explains why we’ll never achieve a balanced state budget without pension reform. According to the Illinois Policy Institute, “More than 25 percent of the state’s $32 billion budget … is being consumed by pension costs for downstate and suburban teachers, public-university and college workers, state employees, judges and state lawmakers.”
Illinois has the worst-funded pension systems in the nation, with a shortfall at $111 billion and counting. More than half the $4 billion in state higher-education appropriations go toward the pension and retirement costs of university and college workers, the Illinois Policy Institute says.
Most people concede that Illinois needs more revenue to solve its problems. But higher property taxes should be out of the question, and a higher tax rate on all income shouldn’t be the only solution. Solutions proposed by groups like the Center for Tax and Budget Accountability include a variety of personal, sales and corporate tax increases, as well as “including some retirement income in the personal income tax base.”
It’s not a perfect solution. I’d love to see pensions capped or the Constitution reformed. Local school boards must stop granting end-of-career salary bumps that boost pensions and end up costing all of us dearly.
But realistically, I think comprehensive budget reform for Illinois must include taxes on retirement income above a reasonable exemption limit. That way, at least, taxpayers will have a way to recapture some of the excessive pensions being paid to many public-sector employees.