Suburban Gov. Pensions Suck the Life Out of Taxpayers

By on January 26, 2016   /   Illinois, Latest, Pension Reform  

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CHICAGO—Taxpayers United of America (TUA) today released the results of their study of the government pensions for Villa Park, Lombard, Elmhurst, and Hillside municipal retirees, as well as local government schools.
“These suburban Chicago government retirees are really making out like bandits at the taxpayers’ expense,” said Jim Tobin, founder and president of TUA. “The per capita average income for these four municipalities is a modest $32,416. Eighty-five percent of the government pensioners in the Illinois Municipal Retirement Fund (IMRF), the individual police and fire pension funds, and the Teachers’ Retirement System (TRS) are getting pensions greater than the per capita average income of the constituents they are ‘serving.’ Seventy percent of the retirees in this group receive more than $50,000 per year and a stunning thirteen percent of this group collect pensions in excess of $100,000! This is retirement pay, not salaries. The pittance that these retirees paid toward their own retirement is a laughable 5.5%.”
“Taxpayers have far exceeded their fair share for these ridiculous pensions. Not only did we make our tax payments on time when the services were rendered, we are now expected to pay again because of reckless accounting by the fund managers and typical bureaucrat behavior of playing a shell game with taxpayer money. There is plenty of blame to go around and yet taxpayers are always the ones to bail out the government,” added Tobin.
“This government employee pension system is theft of taxpayer wealth in order to redistribute it to the government elite. The average Social Security ‘pension’ that taxpayers enjoyed was $16,080 in 2015. The maximum Social Security ‘pension’ is about $28,000 and you would have to have earned more than $100,000 a year to realize that amount.”
“For taxpayers to achieve the kind of affluent retirement that is forced out of our wallets into the wallets of this protected class, we would need about $1,000,000 in our retirement nest egg. TRS members, on average, contributed only $100,485!”
“But let’s not forget who started this Ponzi-scheme in the first place: Chicago Machine Boss Madigan has been the primary driver of the pension cabal in Illinois. The $111 billion pension shortfall is largely due to his cronyism with unions, as demonstrated by his decades-long support of the government pension system in which he was instrumental in codifying it into law,” said Tobin.
“The government pensions are unsustainable. Illinoisans are enduring cuts to services, the defunding of programs, and having their earnings confiscated. Tax dollars continue to be diverted from services required by today’s taxpayers into the pension funds for government employees, whose services were rendered long ago,” said Tobin.
“Local governments are continuously seeking to raise property taxes, sales taxes, and fees and licenses, but never tell taxpayers that nearly 80% of local taxes go to fund salaries and benefits of government employees.”
“Retired at the ripe old age of 58, Glen Ellyn CCSD 89 employee, Lawrence M. Baskin enjoys an annual taxpayer funded pension of $244,622. Over a normal lifetime, he will get about $7.3 million in pension payments. His personal investment in this rich payout is about 3.7% or $267,490 – barely more than his current annual pension.”
“Thomas P. Borchert retired from the Elmhurst municipal government with a current annual pension of $176,742. That will accumulate to about $4.4 million of redistributed taxpayer wealth. His personal contribution of only $169,127, or 4% of a stunning multi-million dollar retirement payout is less than his current annual pension!”
“Robert W. Niemann retired from the Villa Park municipal government with a generous annual pension of $127,016. Retiring at only 59, he will receive about $3.7 million in lifetime pension payments. His personal investment in his own retirement? About 3% or $115,713 – again, barely less than his current annual pension!”
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“The choice is clear: without sweeping, meaningful pension reform, taxpayers throughout Illinois will have to choose between fully funding the pension systems to pay for past services rendered, or pay for the services we need today,” concluded Tobin.
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).
Data Source: Freedom of Information Act requests to IMRF, TRS, and municipal police and fire pension funds.

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The McDonough County Voice|Tax watchdogs say public pensions ‘stolen’ from taxpayers

By on January 19, 2016   /   Illinois Press, Latest, Pension Reform, Press  

Taxpayers United of America’s president, Jim Tobin, was quoted during the latest pension release detailing the pension payouts of public employees in Fulton and McDonough counties by The McDonough County Voice.

MACOMB — With much attention being paid statewide on public employees’ salaries, layoffs and sweeping cuts to higher education and services, at least one group is suggesting another approach: pension reform.
Taxpayers United of America recently put out figures based on state records illustrating the pensions for retirees from Macomb School District, Western Illinois University and the City of Macomb. TUA President Jim Tobin first took on WIU President Emeritus Alvin Goldfarb by stating that Goldfarb “enjoys an annual taxpayer funded pension of $187,541.” Tobin further said, “Over a normal lifetime, he will get about $6 million in pension payments. His personal investment in this rich payout is about 5.3 percent or $321,260.”
The list also highlights Francis A. Kranovich as a Macomb School District retiree as having an annual pension of $149,363 payout and City of Macomb retiree Danny W. Brown as having a $61,969 annual pension. Tobin pointed out Brown’s retirement age of 56 and projected his lifetime payout as being about $2 million.
Lists broken down by county, city and school retirees can be found on the group’s website, TaxpayersUnited.org.
With the state’s budget impasse in full swing, Tobin said pensions are unsustainable.
“Tax dollars continue to be diverted from services required by today’s taxpayers into the pension funds for government employees, whose services were rendered long ago,” Tobin said.
To take things up a notch, Tobin even said the “largesse is stolen from a constituency whose standard of living is far below the ‘civil servants’ they support.” He also referred to the public employee pension system as a “Ponzi-scheme” generated by “Chicago Machine Boss (Mike) Madigan” and his “cronyism with unions.”
Earlier this week, Gov. Bruce Rauner’s office also accused public universities around the state of waste and “cronyism” as why higher education institutions such as WIU are facing budget shortfalls.
In response to Tobin’s allegations of budgetary shortfalls being due to high pension pay-outs being “stolen,” Illinois Federation of Teachers Vice President John Miller told the Voice that pensions did not create the budget crisis, and cutting such pensions will not solve it.
“It is disingenuous to imply that the total benefit paid comes from taxes,” said Miller, who is also the president of University Professionals of Illinois, Local 4100. “The state failed to fund its share of the pensions for decades. To assume that the benefits are the problem is simply incorrect. The pension fund is like any other portfolio. The employee contributes money, and it is invested, allowing the money to grow. The single largest sum of money that pays for these benefits is investment earnings. The problem is the state’s failure for decades to put its share of the amount into the system. State employees do not receive Social Security, nor does the state pay into Social Security like other employers. In essence, the state did not invest its part of their employees’ retirement.”
With regard to many public employees who make modest salaries, Miller said employees — including many teachers — take the jobs for modest pay knowing they will have security at retirement.
“They plan their lives around the standing pension agreements,” Miller said. “They cannot go back in time and invest differently if their pensions are drastically altered.”

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Canton Daily Ledger|Watchdog group: County pensions ‘absurd’

By on January 14, 2016   /   Illinois Press, Latest, Pension Reform, Press  

Taxpayers United of America’s president, Jim Tobin, was quoted during the latest pension release detailing the pension payouts as of Feb. 1, 2015, of 1,029 public employees in Fulton and McDonough counties by Canton Daily Ledger

Report: Fulton County public pensions range from $20,837 to $109,632

Jim Tobin, president of taxpayer watchdog group Taxpayers United of America, speaks at Canton Harvester Inn on Tuesday. Tobin was in Canton to present the findings of a report looking at pensions paid to public-sector employees in Fulton and McDonough counties.

Jim Tobin, president of taxpayer watchdog group Taxpayers United of America, speaks at Canton Harvester Inn on Tuesday. Tobin was in Canton to present the findings of a report looking at pensions paid to public-sector employees in Fulton and McDonough counties.

CANTON
The president of a taxpayer watchdog group was in Canton Tuesday morning to present the latest figures on public employee pensions.
Jim Tobin, who heads Taxpayers United of America, presented part of a report detailing the pension payouts as of Feb. 1, 2015, of 1,029 public employees in Fulton and McDonough counties.
The report included data for retirees of Fulton County government, the City of Canton, Canton Police Department, Canton Fire Department, Canton Union School District 66 and Spoon River College.
Taxpayers United of America was founded in 1976 as National Taxpayers United of Illinois.
Over the years, the group expanded to include other states and morphed into Taxpayers United of America. Tobin and his colleagues travel the country speaking about public pension and property tax reform.
They publish annual reports on public-sector pensions and assist those fighting against tax increases.
Annual pensions listed in the materials provided to the media range from $20,837 to $109,632 within Fulton County, the report shows.
“Seventy-five percent of the areas’ local government retirees are getting annual pension payments of more than $50,000,” Tobin said. “The average annual pension for these government retirees is about $63,672, and their average personal investment in their own gold-plated pension is a mere 5.5 percent.”
Some of the figures presented by the group could not be independently verified by the Ledger at press time, but many of the pension payouts presented to the media were listed as part of a database operated by the Better Government Association, another group that monitors Illinois government.
Tobin went on to say that the blame for these large pensions rests squarely on the shoulders of Illinois Democrats, and specifically called out House Speaker Michael Madigan and Senate President Tom Cullerton.
“You need to throw Madigan and his friends out of office” in order to affect pension reform, he said. “Senate Democrats need to go. … All of those guys have failed the taxpayers. They and their friends and family slop at the public trough.
“The Republicans are going to have to shape up or there won’t be any of them left.”
Tobin also said a sweeping reform of pensions in Illinois must happen and that public-sector pensions should be structured more like the retirement plans offered through private companies.
“Let them (employees) raise the money themselves (and) stop making the taxpayers raise the money,” he said. “It’s absurd. It’s ridiculous. It’s the worst system in the entire country.”

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