Shhh! Top Secret Milwaukee Multi-Million $$ Government Pensions

By on July 10, 2013   /   Latest, News Releases, Pension Reform, Wisconsin  

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Milwaukee—Taxpayers United of America (TUA) today released the results of its study of the Milwaukee County, Milwaukee Municipal, and Milwaukee government school employees.
“The State of Wisconsin refuses to release actual pension payments in an effort to hide the huge subsidies from taxpayers. We can’t let them get away with that so we estimate the pensions for current government employees, giving taxpayers an idea of what their ‘public servants’ get paid not to work”, stated Jim Tobin, president of TUA.
“Even in Illinois, arguably the most corrupt state in the nation, we can get pension payments with the names of the recipients. This is critical in revealing the inherent problems of the government pension system. But like good politicians, Wisconsin legislators not only granted themselves lush pension payments, but also the protection of a secrecy statue, a law that keeps their pensions secret from the taxpayers who pay for them.”
“If we have learned anything about government over recent months, it is that the very things they try to keep secret are the very things about which we should know. While Wisconsin government pensions are not in as much trouble as Illinois’, there are always problems in a system that requires you to put large amounts of cash in the care of the government without completely open review.”
“Even with the recent, positive reforms implemented in Wisconsin, there is a long way to go to fix the pension problem here in Wisconsin. Looking at the top salaries in Milwaukee and estimating pensions for those employees, it is easy to see that a system that pays so many millions of dollars to people who do absolutely nothing is unsustainable. About 80% of local taxes go to pay salaries and benefits of government employees. As more retirees have to be paid out of that 80%, less money is available to pay current employees for the services we need today.”
“Wisconsin, like all state pension systems, gets away with very loose standards in calculating their pension system’s health. Unlike pensions in the private sector, government pension fund assets are over-stated. But when new accounting standards go into effect next year, even Wisconsin which boasts a fully-funded pension system, will be underfunded by billions of dollars.”
“But average taxpayers can’t even fathom billions of dollars in unfunded liabilities. When we show taxpayers exactly what their government-employee neighbors are being paid not to work, they immediately understand the problem created by paying for services performed yesterday with tax dollars that are needed for services performed today.”

“Gregory Thornton, an employee at Vincent High School, gets a salary of $265,000. On top of that, he gets about $75,000 in fringe benefits – each year. His estimated annual pension is $211,500 and his estimated lifetime payout is a stunning $4,441,500.”
“Milwaukee County government employee, Thomas Harding, gets an annual salary of $254,068. His estimated lifetime pension payout is a cool $4,280,793 based on his estimated annual pension of $203,847.”
“While our pension estimates are a very useful education tool, I encourage Wisconsin taxpayers to demand the right to review pension payments, especially since taxpayers, until the recent changes, have funded nearly 100% of the pensions and health-care premiums on behalf of government employees. I have written letters to Governor Walker and every member of the state legislature, urging them to stop hiding pension payments from taxpayer review.”
“Lawmakers aren’t even willing to answer questions about the secrecy surrounding pension payments. Wisconsin Reporter Bureau Chief, Matt Kittle said about the secrecy statute:

 ‘Wisconsin Reporter on Tuesday attempted to contact several state lawmakers asking why Wisconsin keeps pension information private while so many other states shine a light. None responded to the question as of this post.’

So not only are they hiding behind a secrecy law, they are hiding from the press to even answer to the public.”
“Wisconsin needs not only to be more transparent, but to continue with pension reforms that will bring its government employee benefits in line with those of the private sector. Specifically, government pensions need to be replaced with 401k-style retirement savings accounts where taxpayer contributions are made when the conditions allow it. Government employees need to increase their contributions to match the level of the private sector, and government retirees and employees need to pay for at least half of their health-care premiums.”
Pension Estimate Assumptions:
1. Assumes employee retires in 1 year and this salary would be 2nd to last salary
2. Assumes employee is on the payroll for 41 years or more and retires at age 65 and pension = 70%
3. Plus Social Security, assuming 4% annual salary increases over last 35 years
4. “Total Pension Payout” uses IRS Life Expectancy Tables for age 65 (21 years).

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Cook County Property Taxes Increase to Pay Government Pension Millionaires

By on June 26, 2013   /   Illinois, Latest, News Releases, Pension Reform  

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Chicago—Taxpayers United of America (TUA) today released the results of its study of the Cook County Pension Fund (CCPF) top government pensions.
“There are 276 Crook County pensioners getting over $100,000 in annual pension payments taking the total for the state over 10,000”, according to TUA president, Jim Tobin. “The average retirement age of these 276 retirees is only about 60 with an average estimated lifetime payout of $4.7 million.”
“As Crook County property owners receive their property tax bills next week, they need to remember two things: 80% of the property taxes they are about to pay is used to fund the salaries and benefits of the government employees, and second, the legislators we elected have failed to reform the very system that siphons away our wealth for their own benefit.”
“Illinois House Speaker, Michael Madigan (D), and Senate Majority Leader, John Cullerton (D), have failed in their roles as leaders of the Illinois General Assembly and should be fired by voters. The government pension system has failed and it didn’t happen over night or without warning. Taxpayers can’t afford to pay people for the services they need today if we are paying millions to people who no longer work! How can we afford to staff Stroger Hospital with competent doctors today if we are spending all of our resources to pay the doctors who have retired?”
“We need to pay all government employees fair wages that allow them to save for their own retirement. Cook County taxpayers are slaves to their property taxes. Cook County has some of the highest property taxes in the country and government salaries and pensions are the reason.”
“Real pension reforms were proposed in SB2026 which was introduced by Illinois State Sen. Jim Oberweis (R-25, North Aurora), but that bill did nothing to help the union bosses maintain favor with their rank and file and was quickly rejected by Senate ‘leadership’.”
“The purpose of our pension 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 $54,598, and struggle with 9.7% 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.”
View Cook County Government Pensions greater than $100k.
“Alon Winnie collects a taxpayer-funded annual pension of $330,323 and will accumulate a stunning $4,698,522 in lifetime pension payments.*”
“John Barrett has an annual pension of $321,854. Having retired at only 58 years of age, he will enjoy a staggering estimated lifetime payout of $10,037,135. His contribution of the estimated lifetime payout would be only 3.8%.* ”
“Without sweeping and immediate reform, Illinois’ government pension systems will collapse by 2015. It’s mathematically impossible to tax your way out of this problem. Illinois has more than 10,000 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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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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