Illinois Government-Teacher Pensions Far Above Average For Less Work

By on June 14, 2012   /   Illinois, Latest, Pension Reform  

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“How much pension should be paid to part-time employees with partial careers?” asks pension analyst Bill Zettler in his book Illinois Pension Scam, published on April 1, 2012.
Illinois government-employee pensions and the amount of “work” performed to earn these pensions is explored by Zettler, and the results of his research raise many questions, especially when comparing salaries and pension benefits of Illinois government employees with workers in the private sector.
And according to Greg Hinz writing in Crain’s Chicago Business, the percentage of workers in the private sector who are covered by a defined-benefit plan has shrunk to a miniscule three percent, down from 28 percent from 20 years ago.
Using Illinois government-school teachers as an example, Zettler makes these points:

  • The average retired government-school teacher was a part-time employee with a part-time career.
  • Teachers work 170 days or 34 weeks a year or less (182 workdays minus 12 sick days or personal days, per the standard teachers’ contract). Teacher pensions that teachers describe as “modest” are four to seven times larger than Social Security.
  • The average pension in the Teachers Retirement System (TRS) is $46,000. Average age of retirement is 58, and the average years worked is 25.
  • For private-sector employees with college degrees, a career typically begins at age 22 and ends at its earliest after 40 years at age 62 or more likely after 44 years at age 66. For government-school teachers, on the other hand, less than one percent work 40 years or more before they retire, and the average teacher works only 25 years.

The Illinois Education Association (IEA) and other public unions, in their members’ letters to the media, claim that that the average pensions of government state employees are “modest” and “reasonable.” Concludes Zettler: “Twenty-five years is not a full career nor are 170 days a full-time job. So the IEA’s ‘average’ is not the same thing that we private sector workers consider ‘average’.”

Click here to view the top 100 Illinois teacher pensions as of April 1, 2012
This release is the first in a series. Stayed tuned for subsequent releases at: www.taxpayersunited.org.

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Wausau Hides Government Pension Payments

By on May 31, 2012   /   Latest, Pension Reform, Wisconsin  

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WAUSAU—Taxpayers United of America (TUA) released estimated pension payouts for Wausau and Marshfield area government employees. Wisconsin refuses to release government pensions, ignoring citizens’ right to review all payments funded by taxes.
TUA, who last year released pension estimates for state employees and eight Wisconsin cities, calculated estimated pensions for government employees in the cities of Wausau and Marshfield, and Marathon and Wood Counties, based on current salaries.
“Wisconsin has made the most politically courageous changes in the nation, to the corrupt system that allows money to be forced from the rank and file and given to politicians in the form of campaign contributions, by limiting collective bargaining,” stated Rae Ann McNeilly, Director of Outreach for TUA.
“But it seems that some government officials are willing to protect the system by keeping it hidden from review. The costs of shielding the system from review, and ultimately, reform, are devastatingly high as cities around the country are buckling under the weight of their unfunded liabilities. Pension funds are the number one budgetary problem in the country.”
“While residents across Wisconsin and the country face crushing taxes, falling home values, and high unemployment, and, at least according to some, another recession, government employees continue to receive lavish pensions funded by taxpayers who will never collect more than about $22,000 from Social Security.”
McNeilly continued, “For example, Steven C. Andrews, Wood County Psychiatrist, will collect an estimated annual pension of $137,886* based on his actual salary of $215,446. His estimated lifetime pension payout is $3,722,914*.”
“Bradley Karger, Marathon County Administrator, has an estimated annual pension of $75,070*, based on his actual annual salary of $117,296, with an estimated lifetime payout of $2,026,882*. ”
“Wausau Police Chief, Jeffrey Hardel, has a lifetime estimated payout of $1,853,229* with an estimated annual pension of $68,638*, based on his actual annual salary of $107,247.”
View pension amounts below:

“Wisconsin’s government pension systems are crushing middle class Wisconsinites. Replacing defined benefit pensions for all new government hires with social security and 401(k)s would eventually eliminate unfunded government pensions. If current government employees would further increase their pension contributions, they would preserve their pension benefits. Additionally, all members should pay for 50% of their healthcare premiums. We need a stable system that is fair to both taxpayers and beneficiaries or pension checks will stop coming.” Added McNeilly.
*TUA submits FOIA requests for current employee salaries and estimates pensions based on the current pension laws. Assumes retirement at age 65 after 38 years work. Assumes current salary is salary used for pension calculation. Assumes COLA of 2%/yr. Lifetime Pension Payout does not include SS payments.

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Top Oshkosh and Fond du Lac Gov't Pension Estimates Released

By on May 30, 2012   /   Latest, Pension Reform, Wisconsin  

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OSHKOSH—Free and Equal (F&E) and Taxpayers United of America (TUA) released estimated pension payouts for Oshkosh and Fond du Lac area government employees. Wisconsin refuses to release government pensions, ignoring citizens’ right to review all payments funded by taxes.
TUA, who last year released pension estimates for state employees and eight Wisconsin cities, calculated estimated pensions for government employees in the cities of Oshkosh and Fond du Lac, and Fond du Lac County, based on current salaries. Winnebago County has refused to release the salaries of its employees, further denying the public’s right to review anything funded by the taxpayers.
“Wisconsin has made the most politically courageous changes in the nation, to the corrupt system that allows money to be forced from the rank and file and given to politicians in the form of campaign contributions, by limiting collective bargaining,” stated Christina Tobin, Vice President of TUA and Founder of F&E.
“But it seems that some government officials are willing to protect the system by keeping it hidden from review. The costs of shielding the system from review, and ultimately reform, are devastatingly high as cities around the country are buckling under the weight of their unfunded liabilities. Pension funds are the number one budgetary problem in the country.”
“While residents across Wisconsin and the country face crushing taxes, falling home values, and high unemployment, and, at least according to some, another recession, government employees continue to receive lavish pensions funded by taxpayers who will never collect more than about $22,000 from Social Security.”
Tobin continued, “For example, Mark Rohloff, Oshkosh City Manager, will collect an estimated annual pension of $87,497* based on his actual salary of $136,714. His estimated lifetime payout is $2,362,424*.”
“Philip D. Kelley, Fond du Lac County Medical Examiner, has an estimated annual pension of $156,993*, based on his actual annual salary of $245,302, with an estimated lifetime payout of $4,238,818*. ”
“University of Wisconsin Oshkosh Chancellor, Richard H. Wells, has a lifetime estimated payout of $3,756,689* with an estimated annual pension of $139,137*, based on his actual annual salary of $217,401.”
View pension amounts below:

“Wisconsin’s government pension systems are crushing middle class Wisconsinites. Replacing defined benefit pensions for all new government hires with social security and 401(k)s would eventually eliminate unfunded government pensions. If current government employees would further increase their pension contributions, they would preserve their pension benefits. Additionally, all members should pay for 50% of their healthcare premiums. We need a stable system that is fair to both taxpayers and beneficiaries or pension checks will stop coming.” Added Tobin.
*TUA submits FOIA requests for current employee salaries and estimates pensions based on the current pension laws. Assumes retirement at age 65 after 38 years work. Assumes current salary is salary used for pension calculation. Assumes COLA of 2%/yr. Lifetime Pension Payout does not include SS payments.

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