Pittsburgh Post-Gazette | Taxpayer group slams public pensions

By on March 12, 2012   /   Pennsylvania Press, Press  

Findings from TUA’s pension project on Pittsburgh and Allegheny County are featured in this article at the Pittsburgh Post-Gazette. UPDATE: An update to the original release that this article is based on has been made here.

A Chicago-based advocacy group today highlighted what it called overly generous pensions to local government retirees and called on state officials to change pension laws.
Government employees with defined benefit plans receive far better benefits than private-sector employees — and the plans are straining taxpayers’ ability to fund them, representatives of Taxpayers United of America said during the Pittsburgh stop on their multi-state campaign for pension reform.
“The math just doesn’t work for defined benefit systems,” Rae Ann McNeilly, the group’s director of outreach, said.
That message is familiar in Pittsburgh, which narrowly avoided a state takeover of its underfunded pension fund last year. The state pension funds for teachers and commonwealth employees also are serious underfunded.
Taxpayers United provided lists of city and Allegheny County government retirees who receive pensions ranging from $38,000 to $180,000 a year.
“What we’re doing is creating awareness,” Christina Tobin, vice president of Taxpayers United, said.
The group wants to halt defined benefit plans for new government hires and put new workers on 401(k) plans. It also wants current government employees to begin contributing more of their salaries toward their pensions.
On Wednesday, the group will be in Harrisburg to press its demand for new pension laws and to reveal the pensions of state legislators. “There are some hefty ones there,” Ms. McNeilly said.
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Pittsburgh PA: Government Pensions Revealed!

By on March 12, 2012   /   Latest, Pennsylvania, Pension Reform  

View release as a PDF
PITTSBURGH—Taxpayers United of America (TUA) today revealed retired government employee pensions for Pittsburgh and Allegheny County. Many Pennsylvania government employees are becoming pension millionaires when retired.
“Many government retirees make more in pension payments than the private sector taxpayers make in salaries,” stated Christina Tobin, TUA Vice President. “Both the economy and the pension system are in serious trouble. While taxpayers struggle to save for their own retirement and fund the pension system, government retirees have to be concerned that their pension payments will continue.”
“I will deliver letters to Gov. Corbett and each member of the Pennsylvania General Assembly, calling for meaningful pension reforms that will be both fair and sustainable. TUA is ready to work with legislators to implement reforms that will preserve the system for those that are relying on it, and bring relief to the taxpayers who are obligated to fund it.”
“Private sector taxpayers are struggling in the ‘Great Recession,’ with an average income of $52,000. The unemployment/underemployment rate (U6) is 14.9%. The maximum Social Security annual payout is $22,000, regardless of how much one may have earned in their working career.”
“Charles A. Dayieb, retired from the city of Pittsburgh, collects an annual pension of $180,331. His estimated lifetime payout is $5,409,918.*”
“Paul G. Gelet, also retired from the City of Pittsburgh, has an annual pension of $135,467 with an estimated lifetime payout of $4,069,411*.”
“Retired Allegheny County employee, Gerald A. Fischer, has a lifetime estimated payout of $2,737,868* based on his actual annual pension of $91,262.”
“Pennsylvania government pension systems are making millionaires out of public employees at taxpayer expense. Ending pensions for all new government hires and replacing with social security and 401(k)s would eventually eliminate unfunded government pensions. If government employees would just increase their pension contributions, they would preserve their pension benefits. Anything less will ensure the system’s collapse and Pennsylvania government retirees will get nothing. We need a stable system that is fair to both taxpayers and beneficiaries.”
“Every employee deserves a fair wage for the work they do at the time they do it so they can plan for their own retirement, rather than counting on the bureaucrats who helped to create such an unstable situation.”
“This is the time for the political courage to do what’s in the best interest of taxpayers, rather than the special interests. Let’s knock any politician out-of-office, who cuts bad deals with union bosses and corporations! Republican or Democrat, what’s the difference, with numbers like these?”
Click to view pension amounts:

*TUA submits FOIA requests for actual pensions. Since personal information is not available, lifetime pension payouts must be estimated based on retirement at 55, life expectancy of 85 and without COLA. All annual pensions included in this report are derived by annualizing the benefit amount provided by the legal representative of the subject fund.
UPDATE: An update to this release has been made here.

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Taxpayers United Urges "NO" Vote on $400 March 20 Evanston-Skokie Sch. Dist. 65 Property Tax Increase Referendum

By on March 12, 2012   /   Illinois, Latest, Referenda, Taxpayer Alert  

View release as a PDF
CHICAGO–The President of Taxpayers United of America (TUA) today urged all voters in Evanston-Skokie School Dist. 65 to vote “NO” on the March 20 property tax increase referendum, adding, “Don’t build palaces for the bureaucrats.”
“The salaries and benefits of government-school bureaucrats and teachers in Evanston-Skokie School Dist. 65 are some of the most extravagant in the state,” said Jim Tobin, TUA President. “Now these same bureaucrats and teachers want another property tax increase on top of Dist. 65 homeowners’ already-high property taxes.”
“80% of Evanston-Skokie School Dist. 65 spending goes for salaries and benefits. The administrators and teachers get rich, with no benefit whatever to the students. Dist. 65 administrator, Hardy Murphy, gets a whopping annual salary (as of 6/30/11) of $229,662. Administrator Susan Schultz pulls in a hefty annual salary of $178,006.”
“Retired administrators and teachers have become pension millionaires. Robert Campbell receives an annual pension of $114,945, and with a total pension contribution of only $52,208, already has collected $2,022,377 in total pension payments. Annett Grubman receives an annual pension of $105,132, and with a total pension contribution of only $81,094, already has collected $1,493,452 in total pension payments.”
“School Dist. 65 mouthpieces state that the property tax increase will be ‘only’ $32 per $100,000 assessed valuation of a home, but if approved, the property tax increase for an average home in Evanston, instead of the claimed $127 per year, will actually be three times that much, or more. Make no mistake about it, this is an annual property tax hike of $400 on an average Evanston home, not $127.”
“Politicians and their government-school backers are notorious for scheduling property tax increase referenda during primaries, when voter-turnout is low. This March 20, if only 10% of voters turn out, the Dist. 65 bureaucrats and teachers, who will be out in force, will be able to pass this property tax increase easily.”
“Taxpayers United of America has defeated 192 property tax increase referenda since 1977, including a Dist. 65 property tax increase referendum in 1979.”

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