The Daily Journal | A PE teacher has $102K a year pension?

By on September 16, 2015   /   Illinois Press, Latest  

President of Taxpayers United of America, Jim Tobin, was quoted by The Daily Journal during the pension release of Kankakee County.

A Libertarian organization in Illinois is taking aim at government pensions and is signaling out Kankakee County, particularly its retired educators, noting that more than 1,000 retirees here are collecting multimillion payouts.
Taxpayers United of America released its report today, focusing on Kankakee County retirees, basing its projections on an average lifespan of 85 years.

“While taxpayers struggle to make their property tax payments, working well beyond retirement age, these government pensioners enjoy lavish, gold-plated retirements beginning, on average, at the age of 58,” said report author Jim Tobin.
The report looked at pensions within Kankakee Community College, Kankakee area schools and Kankakee County government.
According to the report, the area’s largest annual pension — $151,441 — belongs to a former school superintendent in eastern Kankakee County. Based on life expediency, this person will collect $4.4 million.
The pensions of several former school superintendents are among the highest with pensions ranging from $151,441 to $122,483.
There is another pension for a former career PE teacher at just more than $102,000 annually or $2.4 million throughout his life. A former top KCC administrator is collecting just less than $135,000 annually. Several retired county law enforcement officials are drawing pensions ranging from the low $80,000 to the mid $50,000.
Tobin called these pensions as both immoral and unethical.
“This is not a retirement system for poor public servants. This system will grind to a halt as more and more of these people retire and draw from it,” he said. “This system cannot continue. Our system will collapse if this continues.”
According to Tobin’s research, there now are 12,154 annual Illinois government pensions greater than $100,000. There are 85,893 annual pensions that exceed $50,000.
“Those are staggering numbers considering the taxpayers who fund these pensions get an average Social Security pension of about $15,000 a year,” he said.
What is even more shocking, Tobin said, is how little the employee puts into their own fund. He said the top superintendent will have contributed just 5.3 percent toward the total payout. The P.E. teacher? 7.6 percent. The KCC administrator just 3.6 percent.
So, what should be done? After all, these are the pensions that taxpayers agreed to, even if unwittingly.
Tobin said these employees should do what most private sector workers do, invest their own money into their own retirement account, such as a 401k.
“You and your employer should be funding your retirement account. It’s not for you to live ‘The Life of Reilly’ thanks to the taxpayers. People are getting fed up with this,” he said.
He said meaningful reforms must be taken.
“… Residents of Kankakee and nearly every other city in Illinois will have to choose between fulling funding the pension systems to pay for the services provided in the past, or pay for the services we need today,” he said.
Tobin helped found the TUA in 1976. He started his career as a Federal Reserve Bank examiner. He was one of the first economic experts to predict the collapse of Continental Bank.
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Kankakee on the Brink With Gov. Pension Liabilities

By on September 16, 2015   /   Latest, Pension Reform, Taxpayer Alert  

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CHICAGO—Taxpayers United of America (TUA) today released the results of their updated study of the top government pensioners of Kankakee County, Kankakee County government schools, Kankakee Community College, and Kankakee municipal.
“Well over 1,000 of the Kankakee area government pensioners receive multi-million dollar lifetime pension payouts,” stated Jim Tobin, TUA president. “The pensioners’ average personal investment is only about 5.5% of the lifetime payouts.”
“While taxpayers struggle to make their property tax payments, working well beyond retirement age, these government pensioners enjoy lavish, gold-plated retirements beginning, on average, at the age of 58.”
“This is not a retirement system or a safety net for ‘the poor public servants’ who have given their lives to public service. This is theft. These government pensions are immoral and unethical theft of taxpayers’ hard-earned money to be given to the political elite to do absolutely nothing.”
“Kankakee police and fire pensions are some of the most troubled funds in the country. With 27.7% and 18.8% funding ratios, respectively, and more retirees collecting benefits than employees paying into the fund, they are rapidly spiraling to insolvency.”
“There are now 12,154 Illinois government pensions over $100,000 and 85,893 over $50,000 annually! Those are staggering numbers considering the taxpayers who fund these pensions get an average Social Security pension of about $15,000 a year.”
“I defy teachers, or any government employee, to look into their neighbors’ eyes and say, ‘You deserve another pay cut so I can make more in retirement than you make working.’ They have to be able to say to their neighbors, ‘I don’t care if you can no longer afford your home’s property tax payment; I want more. I want more of your money. I want more of your wealth. I want more of your property.’ That is the reality of demanding more lavish government pensions. If you are a government employee, your neighbor is your employer,” challenged Tobin.
“Retired Pembroke CCSD 259 government employee, Barbara J. Howery enjoys an annual taxpayer funded pension of $151,441. Over a normal lifetime, she will get about $4.4 million in pension payments. Her personal investment in this rich pension is about 5.3%, or $234,403.”
“Larry Huffman retired from Kankakee Community College at only 54 years of age and his current annual pension is $134,960. He will collect about $4.4 million while he only put in $157,199 of his own money, slightly more than one year’s pension payout. That’s a 3.6% investment in his own multi-million dollar retirement payout!”
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“Although we did not support or endorse SB 1 as any kind of pension reform, as it did more harm than good, the unanimous ruling of the Illinois Supreme Court clearly illustrates the limited options available to solve the pension crisis…and the answers are not tax increases!”
“A constitutional amendment that is fair to taxpayers, as well as government employees, must be approved next year in 2016. In the meantime, if the Illinois General Assembly increased individual government employee contributions to their own gold-plated pensions by 10 percentage points, it would save taxpayers about $150 billion over the next 35 years, or about $4.3 billion a year, and save the State of Illinois from financial ruin. If nothing else, the Illinois General Assembly must pass legislation that permits local governments and taxing districts to file for Chapter 9.”
“Taxpayers must pursue these three paths forward to avoid disastrously higher taxes in the immediate future.”
“Rather than finding ways to perpetuate this horrible system that places copious amounts of cash in the hands of bureaucratic hacks, rank and file union members should be calling for the complete reform and conversion to 401(k)-style funds that places employees in control of their own futures. The union and political bosses must know that they just can’t tax their way out of this problem.”
“The choice is clear: without sweeping, meaningful pension reform, residents of Kankakee and nearly every other city in Illinois will have to choose between fully funding the pension systems to pay for the services provided in the past, or pay for the services we need today.”
“With Kankakee being rated the 6th most dangerous city in the state, we need to continue to provide services to the taxpayers living here now and ensure that their tax dollars aren’t squandered on propping up the unsustainable government pension system,” concluded Tobin.
 
 
 
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).

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Chicago’s Minority Residents Shortchanged on Police Protection as Emanuel Prepares Huge Property Tax Hike

By on September 8, 2015   /   Illinois, Latest, News Releases  

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CHICAGO—Chicago residents, especially minority residents on the South and West sides of the city, are shortchanged on police protection, as they bear the brunt of the crime wave caused by rival drug gangs, charged Jim Tobin, President of Taxpayers United of America (TUA).
“This past weekend, six persons were killed and 27 wounded between Friday and Sunday. This carnage is unacceptable.”
“The highly-politicized police department has essentially given up on protecting Chicagoans,” said Tobin. “And to make it worse, while they provide substandard protection, Chicago police are pulling down high salaries and fat, lavish, gold-plated pensions that have been drained to the point where the plans are grossly underfunded and, in effect, bankrupt.”
“Mayor Rahm Emanuel (D) is calling for the largest property tax increase in modern Chicago history, between $450 million and $550 million, to raise enough money to make a major pension payment for police and firefighters next year. This will drive Chicagoans with good jobs and homes out of the city, leaving the less affluent to pay the higher property taxes as they are besieged by criminals,” said Tobin.
“The War on Drugs is not only a complete failure, but its prosecution has cost taxpayers trillions of dollars and an even steeper price for the countless lives lost. This is a war on people, as we are continuing to witness on the South and West sides, and considerable reform of the drug laws are required to stop the violence fueled by prohibition.”
“Just like the pension plans of the State of Illinois, the Chicago government-employee pension plans and the Chicago Board of Education pension plan are beyond the point of being rescued by tax increases. The amendment to the Illinois Constitution protecting government employee pensions from being “diminished or impaired” must be repealed. The Illinois General Assembly must vote to allow municipalities to file for bankruptcy so the bankrupt pension plans can be restructured to bring expenses down to reasonable levels.”
“Finally, all new hires should be placed into 401(k)-style retirement plans, so they can fund their own retirements rather than living off the earnings of Chicago homeowners and property owners.”

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