SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Preckwinkle says Quinn “noncommittal” on her pension reform bill

Thursday, May 22, 2014

* From yesterday

Several dozen unionized Stroger Hospital employees descended on a Cook County board meeting Wednesday, expressing their displeasure with President Toni Preckwinkle’s pension-reform plan, which is expected to surface soon in Springfield.

As county hospital workers waited their turn to address the board, the echoes of an overflow crowd could be heard chanting “save our pensions” from a hallway outside the boardroom. […]

When asked what her thoughts on the workers concerns were, Preckwinkle said she was obligated to revamp county pensions.

“In 2034 it runs out of money. And then there’s no pension for anybody,” she said.

The county’s pension accounts — which are about 54 percent funded — are not as severely underfunded as the city’s.

* She’s in Springfield today lobbying for her pension bill

“We put this together, because we knew if we didn’t do something . . . then we’re probably going to suffer . . . downgrades in our bonds,” Preckwinkle added. “And the longer we wait, the harder it is to do, the more money is required, the more difficult it is. So we’re pushing to get something done by the end of the session.”

Doing so, in the face of so-called pension fatigue after the General Assembly recently passed bills making changes to state and city of Chicago pension plans, may be a tall order. Gov. Pat Quinn has yet to sign the bill that would make changes to two of four Chicago pension plans that are in worse financial shape than the county plan. Preckwinkle said she’s talked to Quinn.

“I’ve talked to him about the fact that we will be trying to secure passage in this session,” she said. “He was noncommittal, but I’m hopeful that he will be supportive. I think it’s no secret that this is complicated by the fact that he has a city pension bill on his desk already.”

Quinn is in a tough spot, as he mulls whether to sign a city plan that likely would lead to a $250 million tax increase over the next five years, even as he talks about granting a larger income tax break to offset property taxes for homeowners across the state.

Yeah, but he also said he was “Put on this Earth” to solve the pension problems. Now, when property taxes could rise as a result, he doesn’t wanna hear about any pension reforms.

- Posted by Rich Miller        


19 Comments
  1. - Gene Debs - Thursday, May 22, 14 @ 1:17 pm:

    The new-found motivation for dealing with a pension problem due to arrive in 2034 does not seem genuine. “The numbers indicate that we might have to cut pensions in 2034, so let’s cut them now!” Consider this. If Illinois does not do anything address its structural deficit, the state will be in a much more serious financial breakdown that will affect all state services. Most observers expect that will happen long before 2034.


  2. - DuPage - Thursday, May 22, 14 @ 1:20 pm:

    Didn’t she read the paper? She should wait until the Illinois Supreme Court decides the constitutionality of SB1. Otherwise she is wasting time and resources and political capitol on something that may be thrown out later.


  3. - Chris - Thursday, May 22, 14 @ 1:23 pm:

    “Yeah, but he also said he was “Put on this Earth” to solve the pension problems. Now, when property taxes could rise as a result, he doesn’t wanna hear about any pension reforms.”

    What IS PQ’s plan to fix the pensions? And the “much more serious financial breakdown” that Mr Debs notes?

    So far, PQ’s plan seems to be a give away of tax dollars to homeowners. Sure, it’s more of a plan than Rauner has offered, but I’m not sure that it is a *better* plan than “nothing”.


  4. - Chris - Thursday, May 22, 14 @ 1:24 pm:

    DuPage: “Didn’t she read the paper?”

    She read the part that said she might beat Rahm for Mayor.

    If she can get her (possibly unconstitutional) bill signed before Rahm gets his (possibly unconstitutional) bill signed, then she looks like someone more able to git’r'dun than Rahm.


  5. - MOON - Thursday, May 22, 14 @ 1:25 pm:

    GENE

    The problem exist’s today.
    In 2034 “it runs out of money” according to Preckwinkle. That is a lot different then what you concluded. Or would you rather wait until there is no money and then address the issue?


  6. - OneMan - Thursday, May 22, 14 @ 1:27 pm:

    Do the cook county property tax bills break out the taxes you pay to the various pension funds?

    Would be curious how those rates compare to what I pay in dogpatch


  7. - Anonymous - Thursday, May 22, 14 @ 1:28 pm:

    She has thousands of non-union employees. She has never reached out to them. Not once. Kinda silly when you learn over 800 are attorneys.


  8. - VanillaMan - Thursday, May 22, 14 @ 1:30 pm:

    Now that is the kind of action we need in City Hall!


  9. - Chris - Thursday, May 22, 14 @ 1:36 pm:

    “Do the cook county property tax bills break out the taxes you pay to the various pension funds?”

    Yes, partially. Don’t see my current one handy, tho. Know that (in Chicago) it does NOT break about the pieces to the various muni pensions, but just one big chunk.

    So we see Cook County, MWRD, Forest, City Parks, Schools, Community College, and City, with the total levy and the portion to pensions.


  10. - Rhino Slider - Thursday, May 22, 14 @ 1:42 pm:

    I am well aware this completely lacks sensitivity, but I must admit to a certain amount of amusement with Chicago and Cook pension problems. Both have been complete cesspools of patronage and their respective corruption, so it feels like poetic justice that the people who ultimately caused the problem will have to suffer the consequences.

    I just wish karma was more swift to the big dogs.


  11. - RNUG - Thursday, May 22, 14 @ 2:08 pm:

    - DuPage - is on target if she is not running for mayor.

    - Chris - is right if she is running for mayor.

    In either case, she would be better off sitting down again with the various employees / retirees and trying to work out a compromise …


  12. - Chris - Thursday, May 22, 14 @ 2:28 pm:

    “so it feels like poetic justice that the people who ultimately caused the problem will have to suffer the consequences.”

    How do you figure? They’re all retired collecting their pensions and will mostly be dead before the funds actually run out of $$.

    The people who will “suffer the consequences” are the ordinary tax payers.

    Sure, say what you want about ‘getting the government you deserve’, but that’s just facile.


  13. - Anonymous - Thursday, May 22, 14 @ 3:01 pm:

    How can a pension fund run out of money if there are contributors (current workers)and (the key) contributions from the county?


  14. - Name/Nickname/Anon - Thursday, May 22, 14 @ 3:05 pm:

    They are spending a lot more than they are bringing in, eventually they run out.


  15. - Anonymous - Thursday, May 22, 14 @ 3:31 pm:

    They can run out of money because contributions are being skipped and that’s not an option that can be exercised by employees.


  16. - Precinct Captain - Thursday, May 22, 14 @ 4:02 pm:

    ==Do the cook county property tax bills break out the taxes you pay to the various pension funds?==

    If you look up a property on the Treasurer or Assessor’s website, you can see the breakdowns to taxing districts for your taxes, but not by pension fund. They do include pension fund data. However, looking at old tax bills that are paid, there is a “pension” number, but I can’t find an explanation of what it actually means and whether it is the amount that went into pensions from your bill. I’ve included a couple screenshots.

    http://imgur.com/bH0PQeS
    http://imgur.com/p91BrM1


  17. - Precinct Captain - Thursday, May 22, 14 @ 4:05 pm:

    ==you can see the breakdowns to taxing districts for your taxes, but not by pension fund. They do include pension fund data.==

    I should have written this better. The bills include pension fund data such as how big it one fund is and its funded/unfunded percentage. You can see how much of your taxes are going to specific government bodies, but you cannot see how is going into pensions from your taxes. As I wrote in the earlier comment, there is a pension number that you can see on older tax bills, but I’m not sure what it actually means.


  18. - Just The Way It Is One - Thursday, May 22, 14 @ 9:48 pm:

    I think his “put on this Earth” remark applied to IlliNOIS’ Pension Crisis because that’s what he was fighting to do for so long…not so sure he meant that statement to automatically apply to all sorts of OTHer large units of Government, like Chicago and Cook County, however, who respectively caused their OWN messes on the Pension issue–particularly the City…!


  19. - Not So Innocent Bystander - Thursday, May 22, 14 @ 11:40 pm:

    No payments have been skipped by Cook County. The alleged shortfall is the result of revised actuarial calculations based longer life expectancies and a significantly more pessimistic view of future returns on investments. It is unclear where these new actuarial guidelines came from or how they compare to the City’s or the State’s.

    Also, unlike the City and the State, Cook County employees do not participate in Social Security, so the pension is the only source of retirement income. Because timely pension payments are necessary to continue its exemption from Social Security, the County cannot miss any payments without incurring a significant penalty from the federal government. In contrast, because both the City and the State participate in Social Security while also promising generous pensions, they have been able to skip pension payments with impunity.

    Any valid comparison between the State and County pension systems should factor in the County’s saving of the employer-side Social Security payment.


Sorry, comments for this post are now closed.


* Reader comments closed until Monday
* TrackBill update
* Caption contest!
* It's worse than we thought
* Question of the day
* Long-term debt is not short-term debt
* Today's quotable
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Lumia Instagramer of the Month: Dishant Kalthiya
        * Giant 12.2-inch iPad schematic, hardware details leak
        * Black Friday deals: Save 10 percent on everything when you use code HAPPYBF10
        * Cyanogen blindsides OnePlus with side deal: no CM support for One in India
        * Mophie Powerstation Plus Review: Integrated Cable Is Both Blessing And Curse
        * Pastry Paradise is yet another yummy challenge
        * Call of Duty: Heroes game hits Google Play

        * Ring Menu Adds a Shortcut To Your Most Used Stuff Anywhere
        * Last Call: The Best Remaining Black Friday Deals
        * Schedule a Toy Purge Before the Holidays and Birthdays
        * Save $50 on the New Nexus 9, Plus a Free $50 Google Play Credit
        * Super efficient perovskites are dazzling solar cell researchers
        * Outbrain said to be considering an IPO that could value it at $1B
        * Stop Trash Talking Others to Improve Your Own Work

        * Speedy Campana invited to White Sox camp
        * White Sox can go short or long with free agent starter
        * Catching up with Tadahito Iguchi
        * White Sox ACE program helps send players to college
        * Additional 2005 fan-favorite players added to '15 SoxFest
        * White Sox introduce Adam LaRoche and their plans for him
        * White Sox plan for contention a work in progress

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * States React to Obama Immigration Order..
        * Will Rauner want the mansion?..
        * Rauner Will Pay for Repairs..


        * Video gambling's spread raising cash, eyebrows
        * Chicago council to vote on minimum wage
        * Idaho rockslide halts passenger, freight trains
        * Illinois man faces trial for stomping puppy
        * Ferguson protests continue in downtown Chicago
        * Protesters demonstrate outside Chicago Walmart
        * Illinois Route 66 gets electric charging stations
        * Plan would use medical marijuana to fund education
        * 3 meetings set on planned central Ill. power line
        * Against odds, Chicago school aims for championship

        * Attorney wants use medical marijuana earnings to fund education
        * Illinois attorney general files notice of appeal in pension case
        * Quinn grants clemency to 126 ahead of holiday
        * Illinois gives $4.5M food banks for modernization
        * State begins accepting fracking applications
        * Debt rating agencies weigh in on state pension ruling
        * Lisa Madigan to ask Illinois Supreme Court to consider pensions
        * Rauner tackles transition agenda
        * Attorney general warns of immigration scams
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court next

        * Chicago, Evanston parking garages hit by data breach
        * Emanuel to prevent Springfield from limiting Chicago minimum wage hike
        * Emanuel calls special council meeting to hike minimum wage
        * Black Friday live: Holiday shopping in full gear
        * Most BP oil spill claims handled correctly, McGladrey says


        * South Side is best home for Obama museum
        * Asking in Ferguson: Ain't I a man?
        * A visit to the Last House on the Block
        * City Council to meet next week to vote on minimum wage
        * A Democrat admits his party really blew it
        * How Illinois can charge ahead on education
        * Jesse L. Miller, former alderman, community activist in North Lawndale, dies at 72
        * ||| Jack Higgins’ perspective
        * Quinn grants pardons to 126, including one of Dixmoor Five
        * Educators up in arms over Rauner's question on budget cuts


        * Boy, 16, killed in double shooting on Southwest Side
        * Officials: Man drives SUV in reverse from LSD into Lake Michigan
        * Two men charged in Aurora shooting
        * Fire at Schaumburg apartment complex; Baby delivered in stairwell
        * Homer Glen bans 'vicious' dogs
        * Police and paramedics responding to crash on Lake Shore Drive
        * Start of shopping 'marathon' looks promising, retailers say
        * Deputy disciplined for reportedly pulling over bus to give son lunch
        * Park District vehicle slides off bike path into Lake Michigan near Oak Street
        * Cubs' Pedro Strop "doing fine" after car crash


        * Listen to State Week - November 28, 2014
        * CPS tests causing more anxiety in teacher evaluations
        * LLCC Offers Variety Of Community Education Classes
        * Another Year Of "Messiah" For Springfield Choral Society
        * New Exhibit On Lincoln's "Undying Words"
        * Locals Organize For Vigil In Response To Ferguson
        * Illinois Hunters Kill 52,000 Deer Over The Weekend
        * Pension Ruling "Credit Negative," But No Ratings Change
        * Tim Landis: Foreclosure Sales, CIPS Icehouse and Heritage River Trail
        * Part Timers & Manufacturing in Illinois Feeling a Slow Economic Recovery


        * Attorney wants use medical marijuana earnings to fund education
        * Michael Carrigan: Illinois can’t afford another year without a raise
        * Esther Cepeda: How to really enjoy the holidays
        * E.J. Dionne: Thank a politician today
        * Our Opinion: Help combat hunger this holiday season
        * Eugene Robinson: On replacement, caution urged
        * George Will: Thanks, or something
        * Quote of the Day: Nov. 27, 2014
        * Illinois attorney general files notice of appeal in pension case
        * Quinn grants clemency to 126 ahead of holiday


        * HS Football: Maroa-Forsyth, IHSA Class 2A Playoffs
        * Illini Notebook 11-28-14
        * Rollover on I-55 sends 4 people to area hospitals
        * Wally’s mustache? Always in style, at least in his mind
        * ‘This has all been fascinating’: McKendree students research copperhead snakes
        * McKendree students are on the hunt for copperhead snakes
        * Illini scrapbook: That magical '83 season
        * New surroundings keep old tradition alive
        * Get it right: They're athlete-students
        * Talent school to hold recital


        * Former ‘Real World' cast member dies in Wisconsin
        * Video gambling's spread raising cash, eyebrows
        * Ferguson protests continue in downtown Chicago
        * Bob Baker, legendary puppeteer, dead at 90
        * Fox Valley police reports

        * Davis retains US Congress 7th seat with ea...
        * Danny Davis Defeats Robert Bumpers In Illi...
        * Rehab of Affordable Housing Building in Ol...
        * Rep. Danny Davis Hopes to Keep His Seat fo...
        * Congressman calls for removal of police co...
        * Congressmen Plan House Speech on Chicago's...
        * Sri Lanka's Downward Spiral - Foreign Policy
        * Davis To Obama: 'Do Everything In Your Pow...
        * Rahm Touts New Law to Clear Juvenile Polic...
        * Dem Rep. to Columnist: Stop Comparing Blac...

        * Durbin to chair hearing on civil rights, F......

        * Just say no to new Iran sanctions...

        * Bruce still hasn’t gotten it right. Pardon who?
        * Vilson beats Cuomo.
        * Chicagoetry: Love In Vain In A Station Of The Metro
        * Beachwood Photo Booth: Happy Day
        * The Beachwood Radio Hour #33: Save The Spire, Ditch DePaul, Nuke The Luke
        * The College Football Report: Eggs, Hooks, Frogs & Stingers
        * Be like Martin Luther King.
        * We are decorated for the season.
        * Small Business Saturday is tomorrow!
        * Thorner: Rick Santorum answers Northwestern students' questions


        * Governor Quinn Announces Investment to Help Regional Food Banks Better Serve Those in Need - Governor’s Investment Will Ensure Lower Cost and Higher Efficiency for Services Reaching Nearly 2 Million Illinois Residents
        * Governor Pat Quinn Takes Clemency Action
        * Governor Quinn Statement on Abner Mikva Receiving Nation’s Highest Civilian Honor
        * Department of Insurance Announces Multi-State Settlement with Symetra Life Insurance and Symetra National Life Insurance Company - Illinois will share part of a $1.2 million penalty against Symetra Life regarding Life Insurance policies
        * Avoid Foodborne Illness This Holiday Season




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller