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.


* Oberweis now for gay marriage
* The patented Pat Quinn close has begun
* Question of the day
* McKinney resigns from Sun-Times: "I’m convinced this newspaper no longer has the backs of reporters like me"
* Another one pops
* Reality vs. reporting
* New anti-Rauner theme: "Wolf of Winnetka"
* Redefining Bobby
* Pat and Bruce
* The lindane file
* US judge orders hiring monitor at IDOT
* Underdog endorsements
* Birth control, millionaires and the minimum wage
* Good morning!
* 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 to Use 'Instant Hotspot' On a Mac with OS X Yosemite
        * Barnes & Noble and Samsung release new Nook tablet
        * Inbox by Gmail gives you another way to look at email
        * Google Inbox, iOS 8.1 Jailbreak, Android Beam boost & more – Pocketnow Daily
        * Android Lollipop imminent, new Nexuses nearing, no more Nokia | Pocketnow Weekly 119
        * How Mia Mullarky made the world’s most a-mew-sing Lumia cat video
        * The Week in iOS Accessories: New products for new iPads

        * Guardians of the Galaxy Brings Back the Cassette Tape!
        * BikeCharge Dynamo Turns Your Bicycle Into a Mobile Battery Pack
        * iPad Air 2 Gets Taken Apart By iFixit (Video)
        * Titanfall gets a new co-op game mode
        * Verizon HTC One M8 Gets Android 4.4.4 KitKat Update With Eye Experience
        * Wanna See the Latest New Yahoo Home Page, Rolling Out Next Month? Bokay!
        * What Twitter Fabric Means for Developers

        * World Series Game 2: Notes and discussion
        * 23 potential MLB free agents as SkyMall items
        * World Series Game 1: Notes and discussion
        * The e-gus off-season plan
        * Reading Room: A wild card of a World Series
        * Following same path as '59 White Sox, KC eyes title
        * larry's Offseason Plan


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

        Archives
        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


        * Selig, MLB grateful for strides in fight vs. ALS..
        * Bernard Schoenburg: Local Rauner ad leaves out .....
        * Dave McKinney, Sun-Times Springfield Bureau Chi.....
        * Our Opinion: Frerichs has the expertise to be I.....
        * Extra Extra: Federal Hiring Monitor Appointed T.....
        * Sun-Times reporter Dave McKinney resigns, calls.....
        * Child hospitalized in Chicago to be tested for .....
        * Court-appointed monitor ordered for IDOT hiring..
        * Former President Clinton campaigns for Gov. Qui.....


        * Chicago jail escapee sentenced to 36 years
        * Durbin, Oberweis face off in 1st US Senate debate
        * Biden in Illinois: Each vote for Democrats crucial
        * Indiana killings case prompts Illinois searches
        * Reporter resigns following Rauner complaint
        * Illinois adding press-box medical staffer
        * VP says Democrats working to protect middle class
        * Former Illini coaches speak at McClain's funeral
        * Editor defends Sun-Times after reporter quits
        * Court-appointed monitor ordered for IDOT hiring

        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes
        * Election 2014: Learn about all the candidates
        * What to watch for in third governor debate tonight
        * U of I sees turning point as election nears

        * Ken Griffin says wife's claims are 'devoid' of merit
        * What's next as Sun-Times/Rauner story explodes?
        * Bob Fioretti, Nicki Pecori are engaged
        * Ebola? Biz travelers say 'meh'
        * New city Treasurer Summers learning the political ropes fast


        * ‘Narcissistic’ bank robber and jail breaker sentenced to 36 years
        * Critics on Emanuel’s choice for city treasurer: Good person, flawed process
        * Federal monitor will oversee hiring at Illinois Department of Transportation
        * CPS wants to delay new standardized test, even though state says 'no'
        * Scandal or not, Bring on that  federal monitor
        * New archbishop chooses modest rectory over traditional mansion
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85


        * Durbin, Oberweis clash on immigration, health care in debate
        * 1 dead, 1 wounded in Richton Park shooting
        * Aldermen question speed cameras
        * Man charged with arson in Logan Square fire
        * 17-year-old charged in West Side man's slaying
        * Sun-Times reporter Dave McKinney resigns, calls time off 'house arrest'
        * Suspect in serial killings charged in 2nd death
        * CPS sells first shut-down school
        * CPS asks feds for delay on new standardized test
        * Man dies in Long Grove crash


        * Real estate and religion: The tale of Seventeenth Church of Christ, Scientist
        * Suspicion lingers over Ebola treatment
        * Judge Orders Court Appointed Monitor For IDOT Hiring
        * 13th Dist. Candidates Talk NAFTA, Ebola During Springfield Debate
        * Attorneys Due In Court For Quinn Hiring Lawsuit
        * Small Campaign Contributions Amount To Chump Change
        * Civic Fed: Lawmakers Once Again Taking Illinois Down Bad Budget Path
        * Cheddar's Leaves Springfield WUIS-SJR Business Report
        * Area Cub Scouts Burned In Explosion
        * Notes On The Final Governor Debate


        * Our Opinion: Frerichs has the expertise to be Illinois treasurer
        * Robert Kaestner: Good education policy is good health policy
        * Eugene Robinson: Warren makes the case for a presidential run
        * Bernard Schoenburg: Local Rauner ad leaves out ‘everything Springfield isn’t’ line
        * Minimum wage increase supporters urge early voting
        * George Will: In Kentucky, a constitutional moment
        * Sun-Times political reporter resigns following Rauner complaint
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Our Opinion: Choice for Illinois comptroller comes down to experience
        * Rep. Raymond Poe to undergo stem cell transplant


        * Letter: Time has come to turn around county’s schools
        * (No heading)
        * Rare piece of history uncovered in Menard
        * Eubia Bahl
        * Evelyn Raley
        * Edward 'Gene' Kronable
        * Geraldine Pitts
        * Doris Kerr
        * Brian Meehan
        * Marjorie Davis


        * Hundreds fill Vernon Hills gym to see Vice President Joe Biden
        * Football: Week 8 MVPs
        * Girls tennis: State tournament scouting, Northwest
        * Wednesday's results
        * Tri-Cities police reports

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Endorsement for U.S. Senate: Dick Durbin...
        * Vice President Biden to return to Illinois......
        * Endorsement for U.S. Senate: Dick Durbin...
        * Vice President Biden to return to Illinois......
        * Endorsement for U.S. Senate: Dick Durbin...

        * Officials continue push for funds to clean......
        * Online Marketplace for Sex Led Indiana Ser......

        * Mayor Looks To Squeeze Motorists More In 2015 Budget
        * City Clerk Announces New Push To Nab City Sticker Scofflaws
        * Poll: Illinois Governor's Race A 'Statistical Tie'
        * Report Examines Big-Money Influence In IL Guv's Race, Congressional Primaries
        * Dozen more days of anti-Quinn rhetoric
        * The True North Strong and Free...
        * The College Football Report: Jameis State
        * Chicagoetry: Sixteen Movies Ago
        * More Details About Decatur Classical School's Possible Move To Uptown
        * New poll numbers for Illinois congressional races


        * TV Breaking News: Ethics blow for Pat Quinn
        * Federal judge deals Quinn ethics blow on IDOT patronage hiring
        * Rauner Statement on Federal Hiring Monitor at IDOT
        * Governor Quinn Announces Ebola Task Force - Group of Healthcare Experts to Advise State on Ebola Response Efforts
        * New TV Ad: Endorsed




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