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 for the weekend
* Long list of appointments by Gov. Rauner
* Question of the day
* *** UPDATED x1 *** The Democrats' budget time bomb is starting to explode
* State threatens to zap all Chicago GSA school funding
* Another optics problem
* This is why we can't have nice things
* Tiny, secluded county wants no part of ATV plan
* It's just a bill
* Feds drop drug conspiracy charges
* Governing ain't easy
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* 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

          
        * Google Cellular, Apple Watch battery, Windows 10 comments & more – Pocketnow Daily Recap
        * The Week in iPad Cases: Backpacks from Spigen and iSkin, an OtterBox screen protector, and more
        * Improve your game of Go (or just keep playing) with this collection of apps
        * Apple's missing out on X: Where X is whatever isn't shipping yet
        * Apple and Samsung tied, Microsoft + Cyanogen, LG G4 & more – Pocketnow Daily
        * What is the future of Windows Holographic?
        * Anton thinks: Windows Phone is not good for me

        * Got Acne? YoDerm Lets You Skip a Trip to the Dermatologist
        * Zeus Vaporizer Review
        * This Week's Top Downloads
        * Ask For a Resident Discount at Local Museums
        * Find Your “10 Minute Tasks” Each Day to Stay Productive
        * Amazon Makes It Easier to Use iTunes, Spotify With Its Echo Speaker
        * Reflector Mirrors your iOS Screen to a Mac, PC or Android device

        * Sale 'speechless' at FGCU jersey retirement
        * Terrerobytes: More about the White Sox's fateful dinner
        * Rodon leads White Sox trio on list of Top 100 Prospects
        * Inbox: How will new-look Sox lineup affect Abreu?
        * Keith Law likes the White Sox (more than PECOTA does, anyway)
        * Which prospects will make the Top 100 cut?
        * White Sox embrace their position as favorites

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


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

        Archives
        January 2015
        December 2014
        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


        * Thermostat won't turn up savings for state..
        * Banks honored during memorial service in Chicago..
        * Rauner's CFO sharpens axe for Illinois budget..
        * Quotes of the day..
        * ATV park decision awaits new DNR director..
        * Observers await specifics in Gov. Bruce Rauner'.....
        * Chuck Sweeny: Stephenson County Board chairman .....
        * Senator wants Rauner to fill vacancy on board c.....
        * Our Opinion: Rauner driving wedges instead of b.....


        * Hill delivers nail-biting 60-58 Illini win over Penn State
        * More than a foot of snow possible for Midwest, Northeast
        * More than a foot of snow possible for parts of Midwest
        * Chicago police seize cocaine worth nearly $7M
        * Cubs legend Ernie Banks remembered for unwavering optimism
        * Southern Illinois town investigating suspicious fires
        * Illinois suspends Rice, Cosby indefinitely
        * Cubs teammates say Ernie Banks was about more than baseball
        * Chicago mayor wages lively campaign with no big challengers
        * Pair sentenced to prison for $665 million financial fraud

        * Observers await specifics in Rauner's first State of the State speech
        * Statehouse Insider: Rauner pension slide slides over some details
        * Bill to ban pure caffeine introduced in General Assembly
        * Rauner defends paying staff more than Quinn did
        * Local lawmakers named to paid committee positions
        * Decision looms on ATV facility in western Illinois park
        * 'Right to Try' bill would give access to experimental drugs
        * Top Rauner staff receiving higher pay than Quinn's
        * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
        * Rauner staff receiving higher pay than Quinn's

        * The paperless office is here, so why is Acco stock up?
        * Elected or apppointed? Pick your poison for Chicago Board of Ed
        * Governor to find out if Illinois is ready for 'right to work'
        * Rauner's CFO sharpens axe for Illinois budget
        * These fast-food chains are resisting the gluten-free craze


          * Cops: Man fatally shot in South Chicago neighborhood, woman stabbed
          * Up to 14 inches of snow in the forecast: 'We have a lot of winter left'
          * Father, son hurt in accidental shooting in Marengo
          * Mother of murder victim: 'Nobody can hurt her now'
          * South Shore on track for express train in March
          * Officials investigate bridge demolition in Hammond
          * Roseland man charged with burglary, threatening cops on West Side
          * Man charged in Southwest Side shooting
          * No bail for man charged in West Pullman fatal shooting
          * Man slain in front of teen son: 'The community lost a hero'


          * Jason Barickman
          * Latest Update: Springfield Area Expecting 3-6 Inches
          * Springfield Attorney Picked To Chair Illinois Gaming Board
          * Up To 8 Inches Of Snow Forecast For Springfield Area
          * Could Rauner's Spending Hold Derail New Train Routes?
          * Listen to State Week - January 30, 2015
          * Rauner Staff Receiving Higher Pay Than Quinn's
          * Rauner Defends Higher Staff Salaries
          * Unmasking Ernie Banks
          * Guzzardi Wants Parents To Be Able To Opt Kids Out Of Testing


          * Our Opinion: Rauner driving wedges instead of building bridges
          * Bernard Schoenburg: Campaign discussion — Oak Ridge to park district?
          * Sharmin Doering: Simulation helps local officials understand poverty struggles
          * Steven Simpson-Black: Human rights struggle continues 150 years after the 13th Amendment
          * Quote of the Day: Sunday, Feb. 1, 2015
          * Observers await specifics in Rauner's first State of the State speech
          * Statehouse Insider: Rauner pension slide slides over some details
          * Statehouse Insider: Rauner pension slide slides over some details
          * In My View: Remembering Mary Lou "Smokey" Schneider
          * Charles Krauthammer: Auschwitz, today


          * Cub Scouts take victory lap with Pinewood Derby
          * Sheriff's office takes steps toward body cameras
          * Sunday Conversation: Howard Griffith
          * Illini Legends, Lists and Lore: Happy 23rd birthday, Tracy Abrams!
          * PHOTOS: Jump Rope for Heart
          * Crime blotter 2/2/15
          * Sunday Special: Schlarman's Peoples draws interest
          * Best of Fred: No. 27 — Pinning down the elite
          * Saturday's prep highlights: Wells powers Maroons
          * Kroner: Good call to put Dalbey in Hall


          * Flames rally in big third period to top Oilers 4-2
          * Niemi leads Sharks to 2-0 victory over Blackhawks
          * Curry has 25, Warriors snap 2-game skid, eclipse Suns 106-87
          * Cubs legend Ernie Banks remembered for optimism
          * Verge, Willowbrook slips past Benson, Hinsdale South

          * Illinois House Dems agonize over vote to f...
          * Congressman calls for removal of police co...
          * Congressmen Plan House Speech on Chicago's...
          * Davis To Obama: 'Do Everything In Your Pow...
          * Rahm Touts New Law to Clear Juvenile Polic...
          * Democratic Congressman Condemns Chicago Su...
          * REP. DANNY K. DAVIS NOW SUPPORTS DR. WILLI...
          * Danny Davis Defeats Robert Bumpers In Illi...
          * Rehab of Affordable Housing Building in Ol...
          * Rep. Danny Davis Hopes to Keep His Seat fo...

          * "NBC sports executive Dick Ebersol was unh......
          * "The mother of bestselling author James Bo......
          * TV News Shows, Feb. 1...

          * Netanyahu invitation shows GOP's disdain f......
          * Obama Has Given Iranians ’80 Percent of Wh......
          * Senate Committee Votes to Advance Iran San......

          * Diary Of A Lost Pregnancy, Part 7: Like A Pelvic Game Of Asteroids
          * The Beachwood Radio Hour #42: Debating Race, The Mayor & The Super Bowl
          * Illinois college cited for viewpoint discrimination in free-speech case
          * Illinois union members dwindle by 20,000 in 2014
          * Mr. Cub's Last Stand: Ernie Banks, 1986
          * Ch'ava Says Farewell
          * Karen Lewis: “I felt like I made God laugh. There are so many people worse off than me.” VIDEO
          * Keeping retirement weird. Tomorrow I get my post retirement pension increase. But the banks get a bigger one.
          * Rauner appoints Springfield attorney Don Tracy as new Gaming Board head
          * The [Tuesday] Papers


          * IDHS reminds eligible workers to take advantage of free tax help and the Earned Income Tax Credit (EITC) - More than 30 sites offer free tax services Statewide
          * IEMA, American Lung Association Launch Health House - Radon Excellence Program in Savoy - Two Champaign builders coordinating with Heyworth radon mitigator in program to reduce radon-related lung cancer risks in new homes
          * One Confirmed Case of Measles in Illinois
          * Governor announces latest round of agency appointments
          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around




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