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CHICAGO—Ill. Senate President, John Cullerton is putting Illinois at risk of going under by denying that the state’s pension systems are in crisis, according to the Executive Director of Taxpayers United of America (TUA).
“Illinois’ five government-employee pension plans have a deficit of at least $100 billion,” said Rae Ann McNeilly, of TUA. “Due to decades of reckless overspending on lavish, gold-plated pension benefits of retired government employees, the plans have passed the point-of-no return. It is mathematically impossible to tax your way out of this crisis. The 67% increase in the state personal income tax and the anti-business 9.5% corporate income tax rate passed two years ago, every dollar of which is being pumped into these pension funds, didn’t even make a dent in the state’s unfunded liability. Unbelievably, Ill. Senate President, John Cullerton has been quoted recently stating that the Illinois’ pension system is not yet in crisis.”
“The so-called ‘reform’ plans of Ill. House Speaker Michael Madigan (D) and Ill. Senate Pres. John Cullerton (D) do nothing more than provide political cover for these career politicians, falling critically short of the necessary reforms.”
“While they play Russian Roulette with Illinois’ finances, the number of government retirees making more than $100,000 in annual pension benefits has grown to more than 10,000 and the unfunded liability grows, conservatively, by $5 million each day that passes without real pension reform.”
“Immediate and sweeping pension reform can stop Illinois’ downward spiral but will take serious political courage. Will you step up to the plate, Pres. Cullerton and Speaker Madigan? Or will you turn your back on Illinois as you ride off into retirement, leaving the state in virtual ruin?”
“Reform must include ending defined benefit pensions for all new government hires in order to permanently eliminate new, unfunded government pension liabilities. New government hires should plan for their own retirements by being placed in Social Security and 401(k) plans, like those in the private sector.”
“Each current government employee must be required to contribute an additional 10% toward his or her pension, saving taxpayers $150 billion over the next 35 years.”
“Finally, requiring Illinois government employees and retirees to pay for one half of his or her healthcare premiums would save an estimated $230 billion over current projections.”
“If these reforms are not put in place soon, Illinois will become a larger version of Detroit.”
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Green Bay—Taxpayers United of America (TUA) today released the results of its study of the Green Bay Municipal, Brown County, and Brown County Government school employees.
“The State of Wisconsin, hiding behind a secrecy law, refuses to release actual pension payments derived from huge taxpayer subsidies. Because we have a right to know just how much ‘public servants’ get paid not to work, we must estimate the pensions of current employees,” stated Jim Tobin, president of TUA.
“While Wisconsin may have made big moves in improving their government pension system, the state is a long way from stabilizing a broken system.”
“Taxpayers need to listen to economists who know what they are talking about and not the government bureaucrats who are responsible for the fund’s performance. Wisconsin’s pension fund is not 99% funded and if we don’t face reality and plan appropriately, we will be in as terrible shape as Illinois.”
“A government pension’s unfunded liability is calculated by using a rate of return on investment or discount rate to determine the future value of the current value of the asset, or cash balance compared to the total defined benefits that have to be paid out. Wisconsin pension fund managers are using 7.2% for that calculation when private standards call for a rate of about 3.25%.”
“That may not sound like much of a difference but what it means to Wisconsin taxpayers is about $60 billion in unfunded liabilities, according to the State Budget Solution analysis.”
“75% to 80% of local taxes go to pay the salaries and pensions of government employees. Taxpayers have a right to see the details of those payments. How can taxpayers understand exactly how much their government employees are being paid in total compensation, salary plus benefits, without access to the actual payments to retirees? Wisconsin taxpayers have a right to review, evaluate, and make decisions about those payments.”
“That is precisely why we are here now, releasing the salaries and pension estimates for the Green Bay and Brown County government employees. $60 billion dollars in unfunded liabilities is really hard to comprehend, but when you see what actual people in your community get in salaries and how those salaries become a pension tax burden of more than $10,437 for every man, woman, and child, the problem becomes clear.”
“For example, Yogesh C. Pareek, Brown County clinical director, makes $245,242 in annual salary. Assuming he meets the criteria for a full pension, he would collect an estimated annual pension and Social Security payment of $197,600*. Those annual payments would accumulate to $4,149,592* over a normal lifetime. Remember this is what he would be paid not to work for about 21 years.”
“Brown County government school employee Michelle Langenfeldgets an annual salary of $190,000 plus another $50,000 in fringe benefits. Her estimated annual pension with Social Security is $159,000* and her estimated lifetime payout is $3,339,000*.”
“Green Bay municipal government employee, Edward E. Wiesner gets an annual gross of $108,211. His estimated lifetime pension payout is $2,136,705* based on his annual estimated pension and Social Security payment of $101,748*.”
Click below to view
- Brown County Government Schools Top Pension Estimates
- Brown County Government Employees Top Pension Estimates
- Green Bay Municipal Government Employees Top Pension Estimates
“Wisconsin taxpayers who are on the hook for unfunded liabilities get an average ‘pension’ from Social Security of about $15,000. Private sector taxpayers don’t enjoy nearly iron-clad job security and struggle with average unemployment of 6.7% and in some areas, over 10%.”
“While our pension estimates are a very useful education tool, I encourage Green Bay and all Wisconsin taxpayers to demand the right to review pension payments. I have written letters to Governor Walker and every member of the state legislature, urging them to stop hiding pension payments from taxpayer review.”
“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.”
*Gross wages provided by government administrator and may include overtime or PTO that would not be eligible for pension calculation.
Annual Pension Estimate Assumptions:
1. Assumes employee retires one year from now and this salary would be the second to last salary.
2. Assumes 41 or more years of employment with SS W/H, retirement age is 65, and fully vested with 70% pension
3. Plus Social Security (non-firefighters) assuming 4% salary increases over last 35 years.
Lifetime Pension Estimate uses IRS Life Expectancy Table (Form 590) at age 65 = 21 years
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CHICAGO—Red-light cameras are a scam whose only purpose is to generate millions of dollars for cities and towns, and, furthermore, actually increase accidents, not decrease them, according to Jim Tobin, President of Taxpayers United of America.
“Chicago Mayor Rahm Emanuel must have felt a tingle go up his leg when he announced last week that red-light cameras would be coming Jan. 31 at 18 Chicago intersections,” said Tobin. “He is looking forward to the additional millions of dollars that will be funneled into city coffers to fund the lavish, gold-plated Chicago government-employee pensions.”
“Emanuel stated that such cameras have reduced accidents, but this is either a sign of ignorance, or a lie.”
“One report after another has shown the reverse is true: Red-light cameras increase accidents. But they also increase revenues for municipalities, which is why politicians love them.”
“The National Motorists Association website has a sampling of these studies.”
- Los Angeles | KCAL TV A local TV station fact-checked the city’s claims that their ticket cameras reduced accidents and found that the opposite was true. At 20 of the 32 intersections studied, accidents increased and several intersections tripled their accident rate.
- Washington, D.C. | Washington Post This report showed an overall increase in accidents at red-light camera intersections of 107 percent.
- Portland, Oregon | KATU News KATU News reviewed city statistics and found a 140 percent increase in rear-end crashes at the intersections where red light cameras were installed.
- Fort Collins, Colorado | The Coloradoan Ft. Collins, Colorado has experienced an 83 percent increase in the number of accidents since red light cameras were installed.
- Oceanside, California | North County Times This report showed a 800 percent increase in rear-end accidents.
- Philadelphia, Pennsylvania | Philadelphia Weekly This article showed an increase of 10 to 21 percent in accidents in intersections with red-light cameras.
“Taxpayers are being nickel-and-dimed to death by greedy politicians, except we’re not talking about nickels and dimes. In addition to having to pay out big bucks, motorists are suffering increased injuries caused by rear-end collisions. Only politicians and orthopedic surgeons are benefiting.”
