9,900 Illinois Government Pensioners With Annual Pension Over $100k

By on May 22, 2013   /   Commentary, Illinois, Latest, News Releases, Pension Reform  

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Chicago—Taxpayers United of America (TUA) today released the results of its annual study of the top government pensions in the State of Illinois.
“Illinois House Speaker, Michael Madigan (D), and Senate Majority Leader, John Cullerton (D), continue their political charade of pension reform while the number of six-figure pensioners grows 47% in one year to 9,900”, according to TUA president, Jim Tobin.
“Illinois is quickly running out of time to deal with the government-created crisis of unfunded pension liabilities. Madigan and Cullerton engage in a carefully choreographed pension reform debate that provides political cover for their allegiance to the union bosses who keep them in power.”
“The reality is that they have crafted legislation packaged as sweeping reform that will do more harm to taxpayers than no reform at all. The Madigan version of pension reform will provide a funding guarantee that places the cost of this elite group of government pensioners squarely on the backs of taxpayers and make these outrageous pensions the first priority of the budget – before any other services or obligations of the state.”
“Real pension reforms were proposed in HB3303 which was introduced by representatives Tom Morrison and Jeanne Ives, but that bill did nothing to help the union bosses maintain favor with their rank and file and was quickly rejected by Boss Madigan.”
“The purpose of our study is to put some perspective around individual pensions, to put them in terms to which the average taxpayer can relate. Illinois taxpayers, whose average household income is $53,234, and struggle with 9.3% unemployment need to know how much Illinois’ government retirees are being paid not to work and the astronomical accumulation of those payments over an average lifetime.”
“We actually expanded our list from the top 100 to the top 200 since there are so many six-figure pensioners now. The top 200 are all over $189,000a year.”
“Still topping our list of Illinois’s government elite in annual payouts is Tapas Das Gupta, retired from the University of Illinois at Chicago. He collected a cool $439,672 in his last annual pension payment and will accumulate a stunning $5.2 million in lifetime pension payments.*”
“Beverly Lopatka retired from DuPage Government HSD 88 at the ripe old age of 56 and has an annual pension of $399,652, with a staggering estimated lifetime payout of $11,524,643. Her contribution of the estimated lifetime payout would be only 0.8%.* ”
“The highest lifetime payout estimate goes to Larry K. Fleming, retired from government school district Lincolnshire-Prairie View 103. Having retired at the age of 55 with a cushy annual pension of $258,163, he will accumulate a breathtaking $11,868,155 in pension payments over a normal lifetime.”
View Pension Amounts Below

“Illinois’ financial condition is in the tank. We have the worst credit rating, the highest unfunded pension liabilities and one of the highest unemployment rates in the country. We had a net loss of 74,000 productive, taxpaying residents last year.  What does it take to get serious about pension reform that will solve problems, not create new ones?”
“Without sweeping and immediate reform, Illinois’ government pension system will collapse by 2015. It’s mathematically impossible to tax your way out of this problem. Illinois has more than 9,900 retirees collecting more than $100,000; in 2020, that will be over 25,000 six-figure pensioners. Real pension reform must include raising the retirement age to 67, increasing employee contributions by 10%, increasing healthcare contributions to 50%, eliminating all COLA’s, and replacing the defined benefit system with a defined contribution system for all new hires.”
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).

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Police Pay and Benefits Higher Than More Dangerous Jobs

By on May 13, 2013   /   California, Commentary, Latest, Pension Reform  

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CHICAGO—Data from the Bureau of Labor Statistics do not support the perception that police officers have very high-risk jobs, or that there is a “war on cops,” according to Jim Tobin, President of Taxpayers United of America.
“Police-organization bureaucrats repeatedly state that there is a ‘war on cops’ in order to justify police salaries and the ability in some municipalities for cops to retire at an unusually young age, often in their fifties,” said Tobin. “By retiring earlier than most workers, police officers can literally rake in millions of dollars in pension benefits over a normal lifetime.”
“In fact, the number of on-the-job police fatalities has dropped nearly 50 percent in the last 20 years, even as the total number of cops has doubled. And, by the way, the leading cause of death for cops is car accidents, not violence.”
“Figures from the Bureau of Labor Statistics prove that police work is not one of the top five or even top ten most hazardous jobs. Police officer fatalities and reported injuries place them at number 12. Eleven jobs are more hazardous, number one being Fishermen, with 129 fatalities per 100,000 workers. The average annual salary of a fisherman is only $27,950 and does not include a pension. The second most hazardous job is that of logger, with 116 fatalities per 100,000 workers. The average annual salary of a logger is $30,360 with no pension benefits. Farmers and ranchers have 40 fatalities per 100,000 workers and earn about $49,140 per year. Sanitation workers have 37 fatalities per 100,000 workers and earn $32,790 per year. Number 12 on the list is police officers, with 16 fatalities per 100,000 workers. The national average annual wage for police is $51,410.”
“Not only are police officers paid well to work, but they are paid extremely well not to work! Retiring in their fifties with as much as 80% of their pay and COLA (cost of living adjustment), they make more after about 10 years of retirement than they did when they were actively working. Their annual pension actually doubles after 24 years of a 3% compounded COLA.”
“Another false justification of excessive pension benefits is that police officers die at a much younger age. The fact is that police officers live as long as non-police officers according to CALPERS (California Public Employee Retirement System) actuarial data.”
“Police protection is vital to a safe society, and we should be happy that is has become so much safer in the past 20 years. But at the same time, taxpayers should not be bombarded by false data from police-organization bureaucrats with emotion-based propaganda in order to justify higher-than-justified salaries or pension policies that include unusually early retirement.”
Sources:
Bureau of Labor Statistics
Reason, Apr. 26, 2011
CALPERS

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95% of Illinois Taxpayers Held Hostage by State Pension Cartel

By on May 8, 2013   /   Commentary, Illinois, Items of Interest, Latest, News Advisory, Pension Reform  

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Chicago –Pension reform could be easy if there were no government-union bosses — and the votes they deliver — according to Taxpayers United of America (TUA).
“The entire State of Illinois has been brought to its knees by about 5% of its population,” said Rae Ann McNeilly, TUA executive director.
“The debt to accommodate this 5% has grown to 200% of the state’s annual budget. Using liberal actuarial standards, Illinois’ pension debt hits the $100 billion mark sometime this month, and that debt is created by the pension funds that serve only 5% of the state’s total population.”
“How is it that this 5% of the population has such total control over the entire state? Government unions. Government-union bosses deliver the votes to keep politicians in power. The state of Illinois is being held hostage by cowardly legislators who are so worried about the votes of the rank and file that they are willing to steal massive amounts of wealth from the rest of the state’s population to prop up a system that is a proven failure.”
“Pension reform could be relatively easy if we didn’t have government unions. We have reached the point where government unions have outlived their usefulness and are actually a threat to the entire state’s economy and general welfare.”
“There should be no Constitutional protection for union thugs who pillage the state’s coffers for the benefit of a few and the legislators who kowtow to their demands. There should be no more laws that protect this corrupt system of election quid pro quo.”
“None of the proposed pension reform bills even attempt to address the cause and effect that has brought the state to its knees. The current pension system places tremendous amounts of money in the hands of government bureaucrats who have never demonstrated responsibility with such assets.”
“Pensions, as we know them, rely on steady growth and prediction of the future. All across the country, these systems have failed. Pension reform that does not permanently eliminate the possibility of unfunded liabilities by replacing them with defined contribution retirement savings is a smokescreen and shows disregard for 95% of the state’s population.”
“The ‘Madigan bill’, being touted by Chicago machine boss and Ill. House Speaker Michael Madigan (D), not only falls short of eliminating unfunded liabilities, but worse, it guarantees that no matter how outrageous the pension debt gets, taxpayers must pay the pension bill before all others. This bill actually affords even more protection to the 5% at the cost of the 95%.”
“The ‘Cullerton bill’, which Senate leader John Cullerton purports will provide ‘real and substantial reform for a generation to come’, falls short on nearly every level and relies on the employees making the choices between COLAs and hospitalization. Both need to be cut if we intend to stay afloat.”
“Neither of the proposed bills is a panacea or even provides a margin of relief to taxpayers. It’s time for lawmakers to do their job and fix this problem as though there were no government union bosses to appease. Pension reform can be that simple. Pass the laws necessary to do the job and pass a bill that gets a state constitutional amendment on the ballot that makes it legal to do what is in the best interest of 95% of the state.”
“Real pension reform must: 1. End pensions for new hires and implement a 401k type retirement savings program with no guarantees that hold taxpayers hostage. 2. Increase current employee pension contributions to reflect private sector levels. 3. End COLA’s entirely. 4. Raise the retirement age to 67 and continue to raise it as life expectancy increase. 5. Require all government employees and retirees to contribute 50% to their healthcare premiums.”
“And while we are at it, maybe we should ban government unions and Constitutional protections to special interest groups.”

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