Pension Reform

It’s a Spending Problem in Rock Island County

By on May 6, 2015   /   Illinois, Illinois Press, Latest, Pension Reform, Press  

View as PDF Rock Island, IL – Taxpayers United of America (TUA) has released its most recent government pension study exposing individual pensions for Rock Island municipal, Moline Municipal, East Moline Municipal, Rock Island County, Rock Island County government schools, and Black Hawk College.
“These government pensions explain why bureaucrats in Rock Island County keep trying to pass a new sales tax,” stated TUA’s director of operations, Jared Labell.
“There are about 930 Rock Island County government teachers collecting pensions of at least $50,000 annually. The median household income across the county is only $48,702 and the poverty rate is 13.3%.”
“Across 5 state pension funds, there are more than 12,154 government pensioners collecting six-figure pensions and over 85,893 pensioners collecting more than $50,000 where the state debt per capita is $24,959.”
“On average, these government pensioners contribute only about 5.5% to their own retirement payout. Taxpayers are forced to contribute $4 for every $1 that the government employees pay toward their own retirement. In the private sector, employees pay 15% of every dollar they earn into Social Security for an average pension of only $15,000!”
“These government bureaucrats need to get the message that taxpayers have had enough and it’s time to cut spending. Three times in the last six years Rock Island County has tried to pass a 1% sales tax and three times the voters have defeated this destructive new tax.”
The Rock Island Police pension fund is only funded at about 38.8%. A healthy funding level is at least 85%.  In 2003, 18% of Moline’s property tax levy went to the police and fire pensions, in 2014, it was about 47%, according to Kathy Carr, the city’s finance director.
“Taxpayers are on the hook for every penny of the shortfall in pension funding.  Forcing taxpayers to pay such a heavy portion of someone else’s retirement is criminal. ”
“It is time to protect the future of taxpayers who have been scammed by politicians and government union thugs into going along with a system that creates and constitutionally protects a special class of government elite.”
“It’s also time for union leadership to have a frank discussion with the rank and file, educating them on the inevitable collapse of an unsustainable crony system designed to siphon money from taxpayers for the benefit of the few. The unions should use those dues forced from members to bail out the pension system rather than use those funds to elect political cronies who keep them in power.”
“Take a look at Calvin D. Lee who retired from Moline USD 40. He gets $197,826 in annual pension payments. Retiring at only 58, his taxpayer funded pension payout will accumulate to more than $7.2 million! And his personal investment in that payout? A mere 5.4%.”
“Then there is Michael T. Huff, retired from Rock Island County government. He gets $97,291 in annual pension payments and because he retired at only 54, those payments with compounded annual cost of living adjustments will accumulate to $4.1 million! His personal investment was only about 2.3% or $94,478, less than his current annual pension.”
The complete list of the following can be at taxpayersunited.org:

 
“This government pension system is the single cause of Illinois’ critical financial situation and it is mathematically impossible to tax our way out of this situation. 80% of local taxes go to fund government employee pay, pensions, and benefits.”
“The Illinois government has failed us; local governments have failed us. It is in everyone’s best interest to solve the pension problem before the system completely collapses. It is no longer a matter of ‘if’ it will collapse, but when.”
“Our solution is to immediately place all new hires into 401(k) style retirement savings accounts, increase member contributions to their retirement fund, increase retirement age for full benefits, and increase member contributions to 50% of health care premiums. Anything short of these reforms will do nothing to permanently solve the problem. If it takes a Constitutional Amendment, then we need to get that on the ballot as soon as possible!”

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The Herald News | Pension issues highlighted in Taxpayers United report

By on April 20, 2015   /   Illinois, Illinois Press, Latest, News Releases, Pension Reform, Press  

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

By on April 20, 2015   /   Illinois, Illinois Press, Latest, News Releases, Pension Reform, Press, Taxpayer Alert  

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%

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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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