11th Annual Report Illinois State Pensions

View as PDF

Unsustainable Illinois Govt. Pensions Driving State to Bankruptcy

CHICAGO — Taxpayers United of America (TUA) today released the results of its 11th Annual Illinois State Pensions Report. This new report analyzes government retiree pensions from Illinois’ General Assembly Retirement System (GARS), Judges’ Retirement System (JRS), Teachers’ Retirement System (TRS), State Universities Retirement System (SURS), State Employees’ Retirement System (SERS), and the Illinois Municipal Retirement Fund (IMRF).
Click below to view the data from TUA’s 11th Annual Illinois State Pensions Report

Surveying the increasing number of government retirees and the growth of their pensions over the past few decades provides a greater understanding of the financial burden facing Illinois taxpayers. Nearly two years ongoing, Illinois’ current budget crisis is mainly due to the exorbitant costs of the government pension system supported by Democrats and Republicans like Illinois House Speaker Michael Madigan and former Gov. Jim Edgar. Government pension payments now devour billions of tax dollars every year to line the pockets of retired government employees.
TUA’s research exposes the magnitude of Illinois’ financial crisis by examining the vast number of retired government employees collecting lavish six-figure annual pensions. 17,000 former government employees each collect annual pensions of at least $100,000, costing taxpayers more than $2 billion this year alone.
Taxpayers work longer and receive far less in retirement than government employees, who often retire in their early 50s with taxpayer-funded pensions worth multiple times the annual maximum Social Security retirement benefit for taxpayers, which is $32,000 if working until 66.
Based on data collected through Freedom of Information Act (FOIA) requests, TUA’s analysis of Illinois government pensions reveals nearly 100,000 Illinois government retirees now collect annual pensions of $50,000 or more, an increase of more than 7,000 additional government retirees since TUA’s 2016 Annual Illinois State Pensions Report.
How much these pensioners paid into their own retirement, in contrast to their generous payouts, is shocking.
For many government retirees, within two years they will collect more money in retirement than they contributed to their own pension. These gold-plated government pensions, subsidized by taxpayers, accumulate to multi-million dollar payouts over a natural lifetime. Using this data to calculate the estimated lifetime pension payout totals for these government retirees underscores the ever-increasing liabilities of defined-benefit government pensions. The system is an untenable burden on taxpayers and increasingly consumes billions of tax dollars in the state budget, worsening with every new hire and retiree adding to the cost.
The Illinois State Constitution’s pension-protection clause – Article XIII, Section 5 – chains generations of taxpayers to an uncontrolled financial burden foolishly created decades ago by politicians in Springfield. It must be amended for a sustainable financial future. Taxpayers are unable to pay this enormous cost, as the budget crisis clearly shows, and without changes, taxpayers will otherwise continue to leave Illinois by the thousands for states with booming economies, while the tax burden increases for those remaining in Illinois.
 

Taxpayers Oppose 7 Property Tax Increase Referenda April 4

View as PDF
Chicago – Government bureaucrats want voters to approve seven property tax increase referenda on the April 4, 2017 ballot, but Taxpayers United of America’s (TUA) president, Jim Tobin, says opposing these measures is best for residents concerned with their skyrocketing property taxes, their homes, and their livelihood.
“Whether the proposal to voters is to enact home rule, which gives unlimited taxing authority to local bureaucrats, or to issue tens of millions of dollars in new bonds and raise property taxes, taxpayers in these six communities must reject these seven referenda on the April 4 ballot to avoid disastrous increases to their property tax bills,” said Tobin.
TUA and local supporters are opposing two home rule referenda in Lynwood and Coal City and government school property tax increase referenda in Berwyn, Evanston, Hinsdale, and Oak Park.
You can download PDFs of our ‘Vote No’ flyers below for printing and distribution.

“On November 4, 2014, sixty percent of voters rejected the last attempt by government bureaucrats to impose home rule on the taxpayers of Lynwood,” said Tobin. “Taxpayers should overwhelming defeat home rule unlimited taxing authority in Lynwood again, and the residents of Coal City must reject it, too.”
According to Taxpayers United of America (TUA), home rule means higher taxes.
“I like to call it ‘home ruin,’” said Tobin. “Why would anyone want to give up their right to vote on property tax increases?”
“Home rule always means higher taxes because it removes the cap limiting the amount that bureaucrats can increase property taxes. It gives bureaucrats a blank check and how many government bureaucrats would you trust with a blank check bearing your signature?”
“Home rule also gives local government authority to tax nearly any product or service they want. What they don’t tell you is that such taxation drives consumers to neighboring communities where the taxes on products and services are lower.”
“Berwyn South SD 100 collected $13.3 million in property taxes last year and seeks to increase property taxes by seventeen percent to steal another $2.2 million from taxpayers,” said Tobin. “Voters have overwhelmingly rejected referenda to raise their property taxes for the government schools as recently as 2014.”
Evanston/Skokie CCSD 65 is seeking to increase property taxes by $450 annually and the board of Education of Hinsdale Township HSD 86 wants to issue $76 million in new bonds, raising property taxes by more than $450 annually, which doesn’t include future property tax hikes to pay $24 million in interest.
Oak Park SD 97 has two referenda on the ballot this year, asking voters to raise their property taxes by $13.3 million and issue new bonds totaling $57.5 million. The two referenda will spike the property tax bill of an average homeowner by more than $700 annually.
“Illinois has one of the highest foreclosure rates in the country. You have to wonder how many people could have stayed in their homes if the property taxes weren’t so high – the highest property taxes in the country,” said Tobin.
“TUA has defeated 420 local tax increase referenda since 1977. We urge voters in these six communities to tell bureaucrats that they have had enough of government living beyond its means at the expense of taxpayers. Voters should urge their fellow taxpayers to Vote No.”
Polls are open from 6 a.m. to 7 p.m. on Tuesday, April 4.

Kill Illinois State Income Tax Hike in Senate Now

View as PDF
Chicago, IL – Members of the Illinois Senate return to Springfield for three days this week to vote on the 12 bills forming the so-called “grand bargain” budget plan. Taxpayers United of America (TUA) urges Illinoisans to demand state senators VOTE NO and kill this legislation now.
“The backbone of this legislation is a multibillion dollar state income tax hike orchestrated by Senate President John Cullerton (D) and Senate Republican Leader Christine Radogno which far outweighs any minor benefits to taxpayers found in the remainder of the legislation. We urge state senators to vote against the entire package,” said Jared Labell, executive director of TUA.
“Taxpayers are outraged, and understandably so. For decades, compromise in Illinois has meant a growing tax burden for Illinois residents, while politicians across the state and in Springfield conduct business as usual,” said Labell. “The Cullerton-Radogno multibillion dollar state income tax increase is out of the question for taxpayers, who are rightfully disgusted with Springfield.”
“TUA warned against the ‘grand bargain’ budget plan a couple days before Gov. Rauner’s (R) State of the State address. Legislators clearly heard our message on behalf of our members and taxpayers, temporarily halting the Cullerton-Radogno state income tax hike,” said Labell.
But now some Republican Senators are surrendering to government pensioners, government unions, and current government employees to support the disastrous Cullerton-Radogno multibillion dollar state income tax hike.
State Senator Dave Syverson of Rockford defended the Cullerton-Radogno state income tax hike after Gov. Rauner’s annual State of the State address. “While I do not like raising any taxes this latest proposal would keep the new tax at or below where it was before the last tax expired,” Syverson wrote.
Republican state Sens. Chris Nybo of Lombard and Karen McConnaughay of West Dundee joined Democratic state Sens. Kwame Raoul and Heather Steans of Chicago to support the state income tax hike on Chicago Tonight February 1.
And of course, Senate Republican Leader Christine Radogno has spearheaded this unnecessary income tax increase, telling taxpayers, “Unfortunately, our fiscal situation is so dire that it is unrealistic to think we can ‘cut’ our way out of it.”
Unlike those legislators, Republican State Senator Kyle McCarter of Lebanon received the highest rating of any of his senate colleagues on TUA’s last biennial tax survey of the Illinois General Assembly, and he continues to fight for taxpayers in Springfield and oppose this legislation.
Tax hikes are not inevitable if systemic changes are made to the operations of Illinois’ state government, yet this budget plan accomplishes nothing but guarantee the Cullerton-Radogno multibillion state income tax increase will further cripple Illinois’ economy and the finances of taxpayers.
State Sen. Dave Syverson of Rockford
(217) 782-5413 and (815) 987-7555
State Sen. Chris Nybo of Lombard
(217) 782-6578 and (630) 519-3652
State Sen. Karen McConnaughay of West Dundee
(217) 782-1977 and (847) 214-8245
Senate Republican Leader Christine Radogno of Lemont:
(217) 782-9407 and (630) 243-0800
Find your legislators here and contact them today!