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Chicago Sun-Times | Counterpoint: Abolish taxpayer funded financial aid altogether

A bill in the Illinois House would expand the applicant list for financial aid to include undocumented students at the University of Illinois and the state's other public universities. Photo by David Mercer, AP.

A bill in the Illinois House would expand the applicant list for financial aid to include undocumented students at the University of Illinois and the state’s other public universities. Photo by David Mercer, AP.

The Illinois General Assembly is considering a bill that would expand the state’s higher education financial-aid considerations at public universities to include students who are undocumented but meet requirements for in-state tuition. The students would be eligible for funds administered by the state, state agencies and the universities.

First, it is immoral to force taxpayers, many of whom can’t afford college for themselves or their children, to pay for college for others — citizens or not. I urge the Legislature to consider abolishing a financial-aid system that causes more problems than it solves.

OPINION

Second, Illinois is in dire financial straits. Financial-aid programs would be a great place to start cutting. Eliminate them in their entirety.
Third, government tuition assistance simply drives up the costs of college. Scholarships and grants for higher education should remain the function of the private sector. Companies experiencing a shortage of skills have shirked their responsibility for their own candidate pool by looking to government solutions. We would all be better served if companies offered human capital contracts. Such contracts bind the employee to work for a certain number of years, effectively repaying a loan.
Fourth, government money, both federal and state, has created an education bubble.
In my experience with for-profit institutions, I found that many engage in predatory recruiting practices, marketing to those least capable of success in a collegiate role. Their business model is to recruit anyone to whom they can sell the dream of changing their life. And they are effective at selling the dream, regardless of how suited the student is to the program or college at all. But that doesn’t matter because in their business model, they are profitable after only a few terms. While the student might fail miserably, incur insurmountable debt without attaining a greater capacity to repay the debt and become convinced that he or she is indeed a failure with no way out of their plight, the schools have boosted their profit and that’s all that matters to the institutions.
When it comes to assisting the undocumented, let’s reform our immigration policies to meet the needs of the millions who choose to live and thrive in this country while keeping out those who want to harm us.
Rae Ann McNeilly is executive director of Taxpayers United of America, which is based in Chicago.

The Herald News | Pension issues highlighted in Taxpayers United report

Taxpayers United of America’s operations director, Jared Labell, was quoted by The Herald-News in an article about Taxpayers United of America’s recent pension release for both Will County and Joliet.


TDHArtThe two top police officials in Elwood also get two of the highest pensions from the Joliet Police Department, according to a report last week from Taxpayers United of America.

 “Hard-earned money,” Elwood Police Chief Fred Hayes said when asked about his $120,000-plus annual pension from his 31 years with Joliet, where he retired in 2011.
Both Hayes and Elwood Commander Pat Kerr retired from Joliet to take jobs as the No. 1 and 2 officers in the Elwood Police Department. Kerr’s pension also tops $120,000, according to Taxpayers United.
“I think in today’s economic climate, regardless of what field they’re in, many retirees from one company go to work for another company,” Hayes said, noting that he knows educators in the public sector and engineers in the private sector who have done the same thing.
A look at the list of pensions compiled by Taxpayers United shows some other retirees working elsewhere.
Steve Engledow, chief of the New Lenox Township Fire Department, is a retired deputy chief from Joliet with an annual pension of $116,000, according to Taxpayers United.
The second-highest government pension in Will County is the $239,000 paid to John Harper, who retired as superintendent of Plainfield School District 202 in 2014 and became principal at Providence Catholic High School.
Jared Labell, director of operations for Chicago-based Taxpayers United, agreed that private sector employees also retire with a pension only to make more money working elsewhere.
But Labell said private businesses are harder pressed to put pension plans in line with revenues.
“At the very least, that has to be determined from the business perspective that if we’re giving that percentage to our employees, we also have to stay afloat as a business,” Labell said.
Taxpayers United has been on a pension crusade for months, spotlighting government pension benefits for state employees and in counties across Illinois. The release of Will County numbers was its latest report aimed at drawing attention to the size of government pensions.
Labell said Taxpayers United does not want to change what retirees are getting. But it does want to see changes in what new employees get and even what current employees put into their pensions.
“We understand that people who decided to be police officers and teachers went in with expectations,” he said.
But Labell said he hears from young police officers and teachers worried retirement money won’t be there because of government pension problems.
Hayes, who also is president of the Illinois Association of Chiefs of Police, said he, too, hears that concern from young police officers.
“They’re asking if these funds are sustainable and if they will be available in the future,” Hayes said. “It is important that we make some changes so the system is sustainable.”
One of the top pensioners at Joliet Junior College is Andy Mihelich, a former administrator who gets $138,000 a year. Mihelich is retired, but active. He is chairman of the Joliet Junior College Board of Trustees and just ran an unsuccessful bid to become mayor of Joliet.
Mihelich said he has been prepared for his pension to be capped.
“I thought there would be pension reform in Illinois,” he said. “I’ve been waiting, but no one in Springfield seems to want to do anything.”

Disclosure News Online | WHO’S COLLECTING THE BIGGEST ILLINOIS PENSIONS?

Taxpayers United of America’s recent study of the top 200 Illinois pensioners was cited by Disclosure News Online.


discartBefore getting into the list of individuals with the biggest pensions in Illinois, here’s a look at the average pension payout in the state’s five pension systems and the Illinois Municipal Retirement Fund (you can view the rest of the fast facts and figures here):

  1. Judges’ Retirement System (JRS) – $128,628
  2. General Assembly Retirement System (GARS) – $56,520
  3. Teachers’ Retirement System (TRS) – $51,288
  4. State Employees’ Retirement System (SERS) – $38,025
  5. State Universities Retirement System (SURS) – $37,248
  6. IMRF – $13,278*
*The average annual pension figure is from IMRF’s 2013 Comprehensive Annual Financial Report, the latest available. The 2014 report will be published in June.

Taxpayers United of America, a Chicago-based organization dedicated to tax relief and “fighting government pensions,” released its updated study of the top 200 Illinois pensioners who, as of Feb. 1, 2015, receive more than $200,000 a year in pension benefits.
“There are now 12,154 Illinois government pensions over $100,000 and 85,893 over $50,000,” TUA President Jim Tobin said. “Those are staggering numbers considering the taxpayers who fund these pensions get an average Social Security pension of about $15,000 a year.”
Of the state’s 200 biggest pensioners, 81 belong to TRS and 111 to SURS. A Better Government Association investigation in 2013 revealed many of the top annuitants were University of Illinois at Chicago employees who retired, began collecting their pensions, and then were rehired after waiting the required 60 days in order to work part-time for a smaller salary.
Listed below are the top 25 pensioners along with their current or previous titles and employers. A data table follows with all 200 individuals who are receiving the most in Illinois pensions. Last year’s report can be viewed here.

*Estimated lifetime pension payout includes the 3 percent compounded cost-of-living adjustment and assumes life expectency of 85 (IRS Form 590), according to TUA.

1. Tapas Das Gupta (SURS)

  • Title: Professor, Head of Department of Surgical Oncology, Chief of Service (Current)
  • Employer: UIC
  • Annual Pension: $466,409
  • Employee Contribution: $475,331
  • Age at Retirement: 72
  • Pension Collected to Date: $4,256,321
  • Estimated Lifetime Pension Payout: $5,203,131*
  • Percent Contributed to Estimated Lifetime Payout: 9.1%

2. Edward Abraham (SURS)

  • Title: Orthopedic Surgeon (Current)
  • Employer: UIC
  • Annual Pension: $453,164
  • Employee Contribution: $535,165
  • Age at Retirement: 66
  • Pension Collected to Date: $3,198,430
  • Estimated Lifetime Pension Payout: $9,002,459*
  • Percent Contributed to Estimated Lifetime Payout: 5.9%

3. Mahmood Mafee (SURS)

  • Title: Clinical Professor of Radiology (Current)
  • Employer: UIC
  • Annual Pension: $404,463
  • Employee Contribution: $562,570
  • Age at Retirement: 64
  • Pension Collected to Date: $3,038,008
  • Estimated Lifetime Pension Payout: $8,778,156*
  • Percent Contributed to Estimated Lifetime Payout: 6.4%

4. Herand Abcarian (SURS)

  • Title: Professor of Surgery, Division of Colorectal Surgery (Current)
  • Employer: UIC
  • Annual Pension: $370,140
  • Employee Contribution: $628,987
  • Age at Retirement: 67
  • Pension Collected to Date: $2,092,580
  • Estimated Lifetime Pension Payout: $6,833,263*
  • Percent Contributed to Estimated Lifetime Payout: 9.2%

5. Ronald Albrecht (SURS)

  • Title: Associate Professor of Anesthesiology; Chief, Anesthesiology Service, Jesse Brown VA Medical Center (Current)
  • Employer: UIC
  • Annual Pension: $368,742
  • Employee Contribution: $462,077
  • Age at Retirement: 70
  • Pension Collected to Date: $2,554,786
  • Estimated Lifetime Pension Payout: $5,380,260*
  • Percent Contributed to Estimated Lifetime Payout: 8.6%

6. James Ausman (SURS)

  • Title: Former Head of Neurosurgery at UIC. Currently Professor of Neurosurgery at UCLA
  • Employer: UIC
  • Annual Pension: $338,630
  • Employee Contribution: $418,471
  • Age at Retirement: 70
  • Pension Collected to Date: $2,143,866
  • Estimated Lifetime Pension Payout: $5,155,075*
  • Percent Contributed to Estimated Lifetime Payout: 8.1%

7. Jacob Wilensky (SURS)

  • Title: Professor of Ophthalmology (Current)
  • Employer: UIC
  • Annual Pension: $315,649
  • Employee Contribution: $410,791
  • Age at Retirement: 62
  • Pension Collected to Date: $2,822,676
  • Estimated Lifetime Pension Payout: $7,302,378*
  • Percent Contributed to Estimated Lifetime Payout: 5.6%

8. Phillip Forman (SURS)

  • Title: Professor Emeritus in Health Policy & Administration Department (Current)
  • Employer: UIC
  • Annual Pension: $307,702
  • Employee Contribution: $376,541
  • Age at Retirement: 67
  • Pension Collected to Date: $3,237,873
  • Estimated Lifetime Pension Payout: $4,871,504*
  • Percent Contributed to Estimated Lifetime Payout: 7.7%

9. Lawrence Wyllie (TRS)

  • Title: District Superintendent
  • Employer: Lincoln-Way HSD 210
  • Annual Pension: $302,991
  • Employee Contribution: $398,488
  • Age at Retirement: 75
  • Pension Collected to Date: $461,651
  • Estimated Lifetime Pension Payout: $3,155,952*
  • Percent Contributed to Estimated Lifetime Payout: 12.6%

10. Joel Sugar (SURS)

  • Title: Professor of Ophthalmology; Cornea Service Vice Chair; Clinical Operations (Current)
  • Employer: UIC
  • Annual Pension: $299,512
  • Employee Contribution: $446,643
  • Age at Retirement: 59
  • Pension Collected to Date: $2,732,588
  • Estimated Lifetime Pension Payout: $8,303,189
  • Percent Contributed to Estimated Lifetime Payout: 5.4%

11. Edward Andersen (IMRF)

  • Title: Former President & CEO, currently Senior Advisor
  • Employer: CGH Medical-Sterling
  • Annual Pension: $298,123
  • Employee Contribution: $312,570
  • Age at Retirement: 64
  • Pension Collected to Date: $561,267
  • Estimated Lifetime Pension Payout: $8,049,191*
  • Percent Contributed to Estimated Lifetime Payout: 3.9%

12. Henry Bangser (TRS)

  • Title: District Superintendent
  • Employer: New Trier TWP HSD 203
  • Annual Pension: $294,524
  • Employee Contribution: $275,366
  • Age at Retirement: 57
  • Pension Collected to Date: $2,156,709
  • Estimated Lifetime Pension Payout: $9,554,224*
  • Percent Contributed to Estimated Lifetime Payout: 2.9%

13. Gary Catalani (TRS)

  • Title: District Superintendent
  • Employer: CUSD 200
  • Annual Pension: $293,214
  • Employee Contribution: $289,151
  • Age at Retirement: 56
  • Pension Collected to Date: $1,890,723
  • Estimated Lifetime Pension Payout: $10,299,070*
  • Percent Contributed to Estimated Lifetime Payout: 2.8%

14. Craig Bazzani (SURS)

  • Title: Former Vice President for Business Affairs, currently Senior Advisor for Foundation Advancement at the University of Illinois Foundation
  • Employer: U of I Urbana-Champaign
  • Annual Pension: $290,220
  • Employee Contribution: $298,686
  • Age at Retirement: 55 (Retired under a pension formula intended for police officers and firefighters)
  • Pension Collected to Date: $3,070,262
  • Estimated Lifetime Pension Payout: $9,385,910*
  • Percent Contributed to Estimated Lifetime Payout: 3.2%

15. Laura Murray

  • Title: District Superintendent
  • Employer: Homewood-Flossmoor CHSD 233
  • Annual Pension: $288,472
  • Employee Contribution: $298,591
  • Age at Retirement: 57
  • Pension Collected to Date: $1,676,100
  • Estimated Lifetime Pension Payout: $9,948,462*
  • Percent Contributed to Estimated Lifetime Payout: 3.0%

16. George Honig (SURS)

  • Title: Professor Emeritus, Department of Pediatrics (Current)
  • Employer: UIC
  • Annual Pension: $288,017
  • Employee Contribution: $401,027
  • Age at Retirement: 67
  • Pension Collected to Date: $2,712,912
  • Estimated Lifetime Pension Payout: $4,919,828*
  • Percent Contributed to Estimated Lifetime Payout: 8.2%

17. Joel Milner (SURS)

  • Title: Professor Emeritus, Psychology (Current)
  • Employer: NIU
  • Annual Pension: $285,635
  • Employee Contribution: $429,142
  • Age at Retirement: 63
  • Pension Collected to Date: $1,978,988
  • Estimated Lifetime Pension Payout: $6,859,441*
  • Percent Contributed to Estimated Lifetime Payout: 6.3%

18. Mary Curley (TRS)

  • Title: District Superintendent
  • Employer: Hinsdale CCSD 181
  • Annual Pension: $280,172
  • Employee Contribution: $248,708
  • Age at Retirement: 55
  • Pension Collected to Date: $1,806,626
  • Estimated Lifetime Pension Payout: $10,362,182*
  • Percent Contributed to Estimated Lifetime Payout: 2.4%

19. John Folse (SURS)

  • Title: Chair of Department of Surgery
  • Employer: SIU Carbondale College of Medicine
  • Annual Pension: $279,703
  • Employee Contribution: $288,201
  • Age at Retirement: 67
  • Pension Collected to Date: $3,356,496
  • Estimated Lifetime Pension Payout: $4,221,029*
  • Percent Contributed to Estimated Lifetime Payout: 6.8%

20. James Schuler (SURS)

  • Title: Surgeon, Division of Vascular Surgery
  • Employer: UIC
  • Annual Pension: $277,703
  • Employee Contribution: $564,913
  • Age at Retirement: 59
  • Pension Collected to Date: $2,330,531
  • Estimated Lifetime Pension Payout: $7,928,160*
  • Percent Contributed to Estimated Lifetime Payout: 7.1%

21. Gerald Moss (SURS)

  • Title: Dean of UIC College of Medicine
  • Employer: UIC
  • Annual Pension: $274,386
  • Employee Contribution: $475,674
  • Age at Retirement: 70
  • Pension Collected to Date: $2,251,535
  • Estimated Lifetime Pension Payout: $3,708,289*
  • Percent Contributed to Estimated Lifetime Payout: 12.8%

21. Henry Gmitro (TRS)

  • Title: District Superintendent
  • Employer: CCSD 93
  • Annual Pension: $273,573
  • Employee Contribution: $282,750
  • Age at Retirement: 56
  • Pension Collected to Date: $1,314,213
  • Estimated Lifetime Pension Payout: $10,192,462*
  • Percent Contributed to Estimated Lifetime Payout: 2.8%

22. Reginald Weaver (TRS)

  • Title: President
  • Employer: National Education Association
  • Annual Pension: $273,113
  • Employee Contribution: $264,894
  • Age at Retirement: 69
  • Pension Collected to Date: $1,576,733
  • Estimated Lifetime Pension Payout: $4,351,312*
  • Percent Contributed to Estimated Lifetime Payout: 6.1%

23. Maureen Hager (TRS)

  • Title: District Superintendent
  • Employer: North Shore SD 112
  • Annual Pension: $271,653
  • Employee Contribution: $277,774
  • Age at Retirement: 58
  • Pension Collected to Date: $1,353,397
  • Estimated Lifetime Pension Payout: $9,143,454*
  • Percent Contributed to Estimated Lifetime Payout: 3.0%

24. Melvin Lopata (SURS)

  • Title: Professor Emeritus of Medicine
  • Employer: UIC
  • Annual Pension: $270,174
  • Employee Contribution: $417,772
  • Age at Retirement: 62
  • Pension Collected to Date: $2,625,165
  • Estimated Lifetime Pension Payout: $6,085,494*
  • Percent Contributed to Estimated Lifetime Payout: 6.9%

25. Stephen Rugg (SURS)

  • Title: Comptroller, Vice President for Planning and Administration
  • Employer: U of I Urbana-Champaign
  • Annual Pension: $266,138
  • Employee Contribution: $318,649
  • Age at Retirement: 63
  • Pension Collected to Date: $1,773,886
  • Estimated Lifetime Pension Payout: $6,321,201*
  • Percent Contributed to Estimated Lifetime Payout: 5.0%

DISCLAIMER

Taxpayers United Of America: (TUA). is a nonpartisan, 501(c)(4) taxpayer advocacy group. Founded June 27, 1976 in Chicago, Illinois by activist and economist Jim Tobin, TUA works on behalf of taxpayers to reduce local, state, and federal taxes. In the past forty years, TUA has saved taxpayers more than $200 billion n taxes and has become one of the largest taxpayer organizations in America. Check All posts. s.

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