image
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Report: Link “verging on a deal” for first responder pension reform

Thursday, May 22, 2014

* Sen. Terry Link has been attempting to put together a deal to reform local police and firefighter pension plans. Link, who voted against state pension reform, has made it clear that he wants what he considers to be a constitutional solution. WBEZ reports that Link is close to a deal. We’ll see

One proposal Link outlined during a closed-door meeting earlier this week would grant pension funds wider latitude in how they can invest their money. Illinois pension law currently restricts how much money pension funds can pour into certain types of investments - such as stocks - with smaller pension funds facing tighter restrictions, while larger ones are free to take more risks. Critics say this has hamstrung police and fire funds that might otherwise have seen bigger investment returns.

Another proposal would change the makeup of the hundreds of five-member boards that govern police and fire pension funds outside of Chicago. Right now, two members are appointed by each municipality, with two elected from the ranks of working cops and firefighters and one retiree. Municipal groups argue that leaves them in the minority during key pension fund votes. According to sources, Link wants to increase the boards to six members - three appointed by the municipality and three chosen by public safety workers - possibly with a seventh member chosen by the whole group.

A third idea would allow smaller pension funds to pool their assets and invest them together. This falls far short of the mayors’ call to consolidate Illinois’ hundreds of discrete pension fund into a single entity, similar to the fund for municipal workers around the state. But backers say it would provide more stability for funds with less money to invest.

Link’s proposed [five-year moratorium on changes to the pension law without both parties’ consent] could be a tough sell. It would mean cops and firefighters wouldn’t be able to win the sort of benefit enhancements that mayors have blamed for their public safety pension woes. But it also means mayors and municipal groups wouldn’t be able to fight for more sweeping reforms - with bigger savings - in the near future.

The firefighters and coppers always point out that they negotiated those previous pension changes with local governments.

Discuss.

- Posted by Rich Miller        


11 Comments
  1. - Enough - Thursday, May 22, 14 @ 10:41 am:

    How about turning the pension funds over to the unions and out from under state government instead of trying to micromanage everything.


  2. - Walker - Thursday, May 22, 14 @ 10:41 am:

    Hate to say it but Link’s been “verging on a deal” on gambling expansion for a decade.


  3. - Anonymous - Thursday, May 22, 14 @ 11:01 am:

    These are young person occupations and we must be careful to not change the dynamic as to have a 60+ yr old responding to alarms.
    Lets abolish other public sector pensions and follow private industry and start 401k style for new employees. Police, Fire and the Military must always be looked at differently.


  4. - Norseman - Thursday, May 22, 14 @ 11:20 am:

    I was going to say something nice, but Walker got me with his poignant observation about Link’s successful deal-making.

    Actually, from the generalities the proposal sounds like a reasonable response. Which means that Walker is right in his belief that this will not happen.


  5. - Shemp - Thursday, May 22, 14 @ 11:39 am:

    I don’t recall our municipality negotiating any pension changes in the past…. For that matter, under the arbitration system as it is set up, municipalities don’t have much room period to negotiate. There is in fact very little local control in the process in practice.


  6. - The Doc - Thursday, May 22, 14 @ 12:09 pm:

    ==Lets abolish other public sector pensions and follow private industry and start 401k style for new employees. Police, Fire and the Military must always be looked at differently==

    Another profile in courage proposal by a nameless Raunerbot. Into the spam folder….


  7. - Walker - Thursday, May 22, 14 @ 12:10 pm:

    I’m often wrong. Just sayin.


  8. - Ahoy! - Thursday, May 22, 14 @ 1:05 pm:

    –The firefighters and coppers always point out that they negotiated those previous pension changes with local governments.–

    True or not, I’m not sure, but even if it’s true it’s not a good argument. Politicians don’t make the best choices for today on tomorrow’s pensions. I think Illinois and numerous units of local government can serve as that reminder.

    The 5 year moratorium would probably help the cities, the General Assembly just can’t help themselves about giving away a benefit (and earning votes and campaign contributions) while not having to pay a dime of state funds.


  9. - Former Pension Trustee & Retired - Thursday, May 22, 14 @ 1:08 pm:

    All past legislation for pensions has been negotiated. It is state law and not under the jurisdiction of local municipalities. When Public Safety Pensions received a benefit in negotiations they also had to give something up. This is negotiation 101. The Municipal Organizations have not just ceded benefits to employees. Negotiations included the Pensions Law Committee and various organizations representing public safety personnel. Unions are not the only group that bargained with various Municipal groups for any pension law changes.

    The arbitration system that many municipalities have AGREED to use with their various Unions do not apply to Public Safety Pension Law.

    In the early 1990’s Municipalities were allowed to kick the can down the road by “refinancing” pension obligations. They all knew at that time that pension payments artificially decreased and would increase in the future. No one at the IML or other Municipal Organizations (like the DuPage Mayors and Managers) continued to have their municipality make the higher payment back then. They knew that this shortage was going to happen and ignored it. Now they want to wash their hands of the obligation and blame others for the problem.

    The responsibility sits squarely on their shoulders. The elected officials and professional managers set this in motion.


  10. - Judgment Day - Thursday, May 22, 14 @ 1:19 pm:

    There’s a reality on the ground happening inside municipalities….

    1. The building inspectors are being outsourced, or contract only. No full time, and maybe no part time - just contract.
    2. The plumbing inspector / electrical inspector are being outsourced, or contract only. No full time, and maybe no part time - just contract.
    3. The code enforcement inspectors are being outsourced, or contract only. No full time, and maybe no part time - just contract.
    4. In Cook County, the health inspector is/are being outsourced, or contract only. No full time, and maybe no part time - just contract.

    Reality is, everything not law enforcement is being looked at really hard to see if it can be cut back to (at best) part time, or contracted/outsourced.

    It’s not occurring everywhere - yet. But it is happening, and municipality workforces are slowly being hollowed out.


  11. - Chris - Thursday, May 22, 14 @ 2:40 pm:

    “Reality is, everything not law enforcement is being looked at really hard to see if it can be cut back to (at best) part time, or contracted/outsourced.”

    They’d outsource the cops, too, if it weren’t almost certain to backfire (and, you know, actually genuinely legal).


Sorry, comments for this post are now closed.


* *** UPDATED x1 - Rauner response *** Unions file suit over Rauner executive order
* Could Schneider face a primary foe?
* *** UPDATED x1 - Manar responds *** Madigan creates school funding task force
* Today's number: $1.8 billion
* Question of the day
* Editorial: "Don't fall for Exelon bailout"
* IDOT hiring monitor issues first report
* The Key to Lowering Workers’ Compensation Costs is Insurance Transparency and Oversight
* Under the bus he goes
* Learning the wrong lessons
* Rauner blasts "outrageous" lack of action
* *** LIVE *** Session coverage
* 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

          
        * How developers are making apps for an Apple Watch they haven't seen yet
        * Acer upgrades Chromebox CXI with 4th-gen IntelCore i3 chip
        * Lumia questions: you ask, we answer
        * Here’s what the 2015 Moto E camera can do
        * Cyanogen CEO warns established mobile brands about to be “slaughtered”
        * Motorola president shares news of global Moto Maker, talks dissatisfaction with fingerprint scanners
        * Apple Watch hardware details rumored: engraving, Lightning port (sorta)

        * Watching Apple Watch’s Apps
        * 2015 VW e-Golf Limited Edition Unveiled
        * New Audi R8 Price For The UK Starts At £119,500
        * Roto Spinning Virtual Reality Chair Soon Launching On Kickstarter
        * AnonyStik Online Anonymity Solution Launches On Kickstarter (video)
        * Crowdfunding: What You Need to Know to Succeed With Crowdfunding
        * Unlocked Microsoft Lumia 640 Up For Pre-order In The UK

        * Crain progressing toward live batting practice
        * Danks' experience shaping his approach on mound
        * Abreu, Alexei add to spring hit total in Sox loss to LA
        * Pierzynski's quick thinking sent '05 White Sox on their way
        * Anderson focused in return opportunity with White Sox
        * Visitation, services for Minoso on Friday, Saturday
        * First impressions from the White Sox's first spring training game

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


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

        Archives
        March 2015
        February 2015
        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


        * Illinois oil train derailment near Galena creat.....
        * Kids Count report finds child poverty is persis.....
        * Rauner budget cuts target older Illinois foster.....
        * Rauner's budget aims to run transit funding off.....
        * Scott Walker takes on unions again..
        * Lawmakers chastise Rauner for staff salaries..
        * Ag students lobby for education funding..
        * Madigan forms education funding panel..


        * Fans, relatives to pay respects to White Sox star Minoso
        * Belleville woman, 68, dies following house fire
        * Train carrying Bakken crude derails, burns in Illinois
        * Remains of 2 babies put in ceiling at Indiana funeral home
        * Unions sue to block Gov. Rauner's order on dues collection
        * BNSF freight train derails near Galena
        * Woman admits role in arson that killed 15-year-old son
        * Anti-violence group lose funds as Illinois freezes spending
        * Cardinal Egan, retired NY archbishop, dies at age 82
        * Madigan creates task force to examine school funding

        * Senate Democrats criticize salaries in governor's office
        * House forms education funding task force
        * Unions sue to block Rauner's order on dues collection
        * Lawmakers propose increasing state's earned income tax credit
        * Local men plead guilty to stealing millions from Illinois EPA
        * Report: State budget cuts would harm children in poverty
        * Court monitor says IDOT should clean house on hiring rules
        * Senate President Cullerton: We're not stalling
        * Judge grants delay of medical marijuana permit in Kankakee

        * Why Ken Griffin hated one of his first jobs
        * Train hauling 103 oil cars derails outside Galena
        * Whistleblower alleges conspiracy at Peoples; ICC to vote on probe
        * Unions sue to block Rauner's order on dues collection
        *


          * Cab driver stabbed during robbery in West Rogers Park
          * The horror of a triple slaying plays out in criminal court
          * Iowa man forced third teen into prostitution, authorities say
          * 25 years for woman who hatched plot to kill drug dealer
          * Train carrying crude oil derails close to Mississippi River near Galena
          * Carol Stream man charged with sexually assaulting girl with spina bifida
          * Girl meets Austrian stem cell donor who helped her beat cancer
          * Man sentenced in battery, though victim said she lied about attack
          * Judge finds probable cause that ex-boyfriend raped escort
          * Moody's downgrades Chicago Park District's debt rating


          * Listen to State Week - February 27, 2015
          * Unions Take Rauner To Court
          * Art Beat: Three Art Shows & Rock N' Roll
          * Parents, Day Care Providers Worry About Child Care Funding
          * Full Audio: Poetry Out Loud - Central IL Regional Contest 2015
          * Let's Talk Kids - "A Shot in the Arm"
          * Lincoln Carriage Headed To DC
          * "Don't Get Used To This" Breezy Budget Hearing
          * Lawmaker Suggests Eliminating Tuition Waivers For University Employees' Children
          * Sexting Laws Could Be Added to School Handbooks


          * Our Opinion: Will Schock drown in the drip, drip, drip?
          * David E. Miller: New hepatitis C treatments save lives, reduce expensive complications
          * E.J. Dionne: The Bibi-Boehner coalition
          * Esther Cepeda: The importance of Chicago's Latino vote
          * Senate Democrats criticize salaries in governor's office
          * Quote of the Day: Thursday, March 5, 2015
          * House forms education funding task force
          * Unions sue to block Rauner's order on dues collection
          * Lawmakers propose increasing state's earned income tax credit
          * Local men plead guilty to stealing millions from Illinois EPA


          * Adjunct instructors struggle to make ends meet
          * A welcome warm up: Say goodbye to the snow in the Q-C region
          * Transmission line backers explain project
          * Hiring practices playing politics must be stopped
          * Upcoming Services (March 6)
          * Report: About 1 in 4 Rock Island County kids living in poverty
          * African-American society sprucing up its new home, exhibits
          * Alice Pohanka
          * Elizabeth Grimes-Bartlett
          * Lucy Korn


          * Finances top concern for U-46 school board candidates
          * Fans, relatives to pay respects to White Sox star Minoso
          * Ringling Bros. to give up elephant acts in 3 years
          * Rolling Meadows fire victim died from injuries in fall
          * Florida man faces sentencing in smuggling of Dodgers' Puig

          * US Rep. Randy Hultgren joins bipartisan gr...
          * National Review’s Rick Lowry and His Phony...
          * Bustos urges VA to improve access to care ...
          * EMILY's List Gala: Hillary Clinton Hosts a...
          * Bost support of comp time bill has comment...
          * Environmentally-friendly proposal could co...
          * Bob Clifford Named One of 100 Most Powerfu...
          * US lawmakers condemn Boko Haram’s terroris...
          * Illinois Reps urge nuclear solution
          * Hillary Clinton Ignores Email Controversy ...

          * Stopping an Out-of-Control IRS...
          * Republican bill aims to limit consumer bur......
          * George Will, Washington Post: IRS excesses......

          * Will the Senate weigh in on Iran negotiati......
          * Senators Introduce Resolution Honoring Nem......
          * Kirk Supports Strong, Bipartisan Path to S......
          * Kirk Honors General Pulaski and Emphasizes......

          * Spring Back On Sunday
          * The Beachwood Radio Sports Hour #40: West Side Stories
          * Yes, Black America Fears The Police. Here's Why.
          * The [Friday] Papers
          * Beachwood Photo Booth: Avondale Chicken
          * Chuy Says He’ll Stop Red Light Cameras His First Day As Mayor
          * Do we need to “like” a political person in order to back him on Election Day?
          * Striking Balance Between Religion, Patient Care In IL
          * Proposal Seeks To Strike A Balance Between Religion, Patient Care In IL
          * DOJ: No Charges Filed Against Darren Wilson; Ferguson Police Blatantly Racist


          * Statewide Financial Aid Workshops Help Improve Illinois FAFSA® Completion Rates - Illinois Student Assistance Commission Encourages Students to Continue to Complete Their FAFSAs
          * White-Nose Syndrome Found in Four Additional Illinois Counties - Disease That Has Killed Millions of Bats in North America Confirmed For First Time in Union, Saline, Johnson and Jackson Counties
          * IDHR Introduces Training on Preventing Pregnancy Discrimination in the Workplace - Program will focus on proactive compliance with new law
          * IEMA Urges People to Prepare for Severe Weather - Tornadoes, floods and severe storms can happen any time of year
          * IDHS helps more than 5,000 individuals with disabilities find jobs - Program offers necessary tools to earn a living wage and become more independent




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