WLUK-TV FOX 11 | Open government doesn’t apply to Wis. pension recipient payouts

Findings from TUA’s pension project on the state of Wisconsin are featured in this news story from WLUK-TV Fox 11.


MADISON – Wisconsin boasts the best state retirement pension system in the country. State figures show the plan holds more than $90 billion in trust.
But specifics on the amounts paid out to individuals is not something the Wisconsin Retirement System chooses to share.
Some 250,000 school teachers, state workers, and city and county municipal employees pay into the fund. Their employers with taxpayer dollars contribute too. Overall employer contribution last year was 60 percent of the total, since some state employees aren’t required to contribute under Act 10.
Robert Conlin heads up the state’s Department of Employee Trust Funds.
“The system is solid and sound and there’s no need for major changes,” said Conlin, citing a study of the system released in 2012.
The state trust fund paid out roughly $4 billion to pension recipients last year. That information is released by the state. What is not released are the individual names of the pension recipients and just how much each of them received.
“The state won’t give us the pension names and pension amounts. They’re hiding that from the taxpayers,” said Jim Tobin, who heads up the watchdog group Taxpayers United of America.
Tobin calling for more transparent government in states across the country. He says he’s standing up on behalf of the taxpayers.
“And we suspect maybe because the pensions being paid out to the retirees are huge amounts,” added Tobin, speculating on the lack of full disclosure on the pension funds.
Taxpayers United of America routinely posts projected pension payouts for the highest paid public employees on its website and elsewhere. The group plans to release figures soon for Shawano County workers.
The latest release though targets taxpayer funded employees in Brown County.
The name topping the Brown County School Employees list is Green Bay schools superintendent Michelle Langenfeld. She is paid $190,000 a year.
With access only to her salary, Taxpayers United of America calculated her retirement pension at $159,000 a year. Assuming Langenfled receives that payout for 21 years of retirement, the group shows Langenfeld’s total payout of more than $3 million.
Such figures, Tobin says would put an extra toll on state taxpayers.
“No we can’t keep funding this unless taxpayers want to work into their 80s and 90s. I don’t think taxpayers will put up with that,” said Tobin.
But FOX11 Investigates questioned the numbers published by Taxpayers United of America, and found the pension for Langenfeld way off.
TUA’s calculation assumes she worked in Wisconsin for 41 years when in reality it’s been less than 3. She’s not even vested yet. Langenfeld previously worked in Minnesota.
And if Langenfeld were to retire at the end of this school year, based on salary and actual years of employment, we calculate she would receive just $7,000 a year in Wisconsin retirement benefits. Her 21-year payout during retirement would be closer to just $150,000, well short of the $3 million estimate from Taxpayers United of America.
“Those assumptions have to be made because we’re not provided with any personal information,” said Rae Ann McNeilly, executive director for TUA. “It does give a good indication of what the system allows if she did meet all of the criteria for retirement.”
A FOX 11 Fact Check shows the average annuity received by all 178,000 retirees in 2012 was about $24,000. Just 50 retirees received more than $150,000 while more than 47,000 received less than $9,999.
Secretary Conlin says if something doesn’t add up it’s TUA’s agenda.
“I think some of those groups have more of an interest in stirring up perhaps some discord between the public and public employees,” said Conlin.
But if state pension amounts for individual workers were made public there would be no confusion.
Wisconsin however is one of 17 states across the country to keep that information private. That’s what Taxpayers United of America is really trying to change. And in the era of government openness I raised the issue with Conlin.
“When it comes to pensions we don’t know the figures. Why not?” asked reporter Mark Leland.
“The simplest reason is there’s a law that says that personal information in our files are confidential,” explained Conlin.
Conlin says the money in the retirement fund belongs to the retirees and, like anyone’s investment portfolio, shouldn’t be open to public inspection. To do so, the legislature would have to change the law.
Is that something that should be more transparent?
“I think that would probably be a good idea, personally,” said State Rep. Dale Kooyenga, R-Brookfield. “Salaries are online, it makes sense to equate that to public pensions. I don’t know why that isn’t out there already.”
Kooyenga is a member of the Assembly Finance Committee and has a background as a certified public accountant. And says the system should have nothing to hide when it comes to the amounts individual retirees receive.
“I don’t know if it’s a cost issue, a privacy issue, who’s for or against it, but I think it’s definitely something we should consider and look into,” said Kooyenga.
Kooyenga does admit with the pension fund 100 percent funded, other issues like cutting taxes and creating jobs remain the legislature’s top priority. But we will continue to raise the question of open government so no one is left in the dark.
Click to read the study of the Wisconsin Retirement System.

Medill Reports | Ald. Fioretti: City Council bond vote puts Chicago on the 'real road to Detroit'

TUA President Jim Tobin was quoted about Chicago debt in Northwestern University’s Medill Reports.
medillreportsDespite Chicago’s debt being among the worst in the nation, the City Council voted Wednesday to allow the city to issue bonds up to $900 million and authorized borrowing another $1 billion for Midway Airport.
The measure passed without discussion, with only Ald. Scott Waguespack (32nd), Ald. Bob Fioretti (2nd), Ald. Brendan Reilly (42nd) and Ald. John Arena (45th) voting no.
This action comes less than a year after Moody’s downgraded Chicago’s credit rating by three notches.
Fioretti said he voted no for two reasons: a lack of transparency in the proceedings and his feeling the council was “kicking the can down the road.”
Fioretti, who is not a member of the finance committee, attended Monday’s meeting and said, although he asked questions, he learned little about the plan.
“This is The Parking Meter: 2,” Fioretti said, referring to former Mayor Richard Daley’s controversial lease of the city’s parking meters to Chicago Parking Meters, LLC. The lease was widely criticized for its lack of transparency.
Fioretti said Chicago is headed in a dangerous direction and faults fellow aldermen for refusing acknowledge the problem.
“Nobody wants to discuss the real road to Detroit that we are on at this point,” he said.
Sarah Wetmore, vice president and research director of the Civic Federation, wrote in an email that it is important to distinguish between the kinds of debt the city issues.
The portion of the debt the city said will be used for safety-related building repairs is necessary, she wrote, to keep government infrastructure sound.
About $120 million of the $900 million would be used to push debt to future years, according to Wetmore.
“The unsustainable savings have helped balance the city’s current year operating budgets, but they also greatly increase the city’s long-term obligations,” she wrote. “The city must find a more sustainable way to address the growing gap between its spending and available revenues.”
Wetmore warned of dire consequences if they city cannot curtail its spending and continues to rack up debt.
“It will be forced to choose between a significant increase in the property tax, crippling cuts to city services or some combination of both,” she wrote.
Finally, Wetmore wrote, the city’s credit rating could be hurt by the amassed debt, which would make borrowing in the future more expensive and possibly limit borrowing opportunities.
Some were more forceful in their criticism.
Jim Tobin, president of Taxpayers United of America, said the law is “horrible.”
Tobin said the action amounts to the council “stealing the peoples money. They should all be thrown from office.”
The law is pushing financial obligations onto future generations and making them responsible for “lavish, gold-plated pensions,” Tobin said.

Illinois Review | Taxpayers United of America endorses Rauner, Oberweis, Harris, Williams, Bayne

TUA’s endorsement of various Illinois state candidates was featured on Illinois Review.
ilreviewTax Accountability (TA), the political action arm of Taxpayers United of America (TUA), has announced its candidate endorsements for the March 18, 2014 primary election. The are:

  • Governor: Bruce Rauner
  • US Senate: Jim Oberweis
  • 3rd Congr. District of IL: Diane M. Harris
  • 9th Congr. District of IL: David Earl Williams, III
  • 11th Congr. District of IL: Ian Bayne

The TA’s reasoning for each candidate is below:

Bruce Rauner is a successful businessman and strong leader with the fiscal experience to save Illinois from its history of failed and criminal leadership. Bruce has pledged to repeal the 67% state income tax increase surcharge and to perform a complete overhaul of the State’s tax policies to simplify and eliminate the corporate welfare that burdens individuals and small businesses.
Jim Oberweis has been a strong leader in the Illinois State Senate and a successful businessman who understands that tax-and-spend policies destroy our economy and prosperity. Jim has pledged not to raise taxes or impose any new taxes, directly or indirectly.
Diane M. Harris has a solid record of achievement both personally and professionally. Diane has a lifetime of community service and commitment to restoring integrity to Illinois politics. Diane has pledged not to raise taxes or impose any new taxes because of her commitment to responsible spending and respect for taxpayers’ personal wealth.
David Earl Williams, III has established himself as a strong leader and achiever. David is a veteran of the US Navy where he managed a multi-billion dollar budget. David is committed to restoring personal and economic freedom to Illinois and the country and has pledged not to increase or add new taxes.
Ian Bayne is a self-made, successful businessman who has fought hard to achieve the American dream. His fight has highlighted the need for government reforms that restore the power to the people. Ian has also pledged to protect taxpayers from any new or increased taxes.