SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Problems emerge with Preckwinkle’s pension bill

Thursday, May 29, 2014

* I told subscribers this morning that no House Republicans were willing as of last night to put votes on Cook County President Toni Preckwinkle’s pension reform bill. No pension reforms have ever passed the House without at least a couple dozen GOP votes. So, big trouble.

Greg Hinz reached out to Leader Jim Durkin today

“A number of our members continue to express concerns because this bill does not go far enough to achieve meaningful benefit reform — and worse, seemingly relies heavily upon increases in residential and commercial property taxes,” Mr. Durkin said in a statement.

In particular, he added, Ms. Preckwinkle’s bill provides more generous annual cost-of-living adjustments in pension payments than does the city bill, guaranteeing at least 2 percent a year, compounded, and potentially as much as 4 percent, as opposed to half of inflation, simple, with a 3 percent cap. “This bill does not match the structural changes previously enacted by the General Assembly. Furthermore, the business community has not weighed in on this bill as they previously have with the other state pension reform and Chicago pension reform bills,” he said. […]

And, for the record, both Mr. Durkin and other Republicans are denying that GOP gubernatorial nominee Bruce Rauner is behind the opposition. Mr. Rauner wants to completely abolish defined-benefit government pensions, moving to a 401(k)-style system

I talked with a labor lobbyist not long ago who said the union is holding their “No” votes so far, but that the situation remains “fluid.” If the GOPs stay off, President Preckwinkle has real problems with this legislation.

- Posted by Rich Miller        


19 Comments
  1. - Frank B. - Thursday, May 29, 14 @ 3:00 pm:

    It would interesting if Preckwinkle toughened the bill up to get a few Republican votes and it passes. Then AFSCME will have helped kill the most employee-friendly pension bill yet in exchange for something more punitive for their members.


  2. - Almost the Weekend - Thursday, May 29, 14 @ 3:07 pm:

    Totally agree Frank. I would love to see the look on rank and file AFSCME members’ faces if this pension bill becomes tougher to garner more Republican votes.

    In the long-run it could be addition by subtraction. AFSMCE’s leadership has been swimming against the current for the past four years and going nowhere fast.


  3. - Barney - Thursday, May 29, 14 @ 3:12 pm:

    something is a bit fishy. the chicago bill called for anywhere between $250-$750 million in property tax hikes that durkin supported. Cook Cty only has a deficit of $140 million that they could try to fill through streamlining and such, but prob need to hike some taxes. What’s the real story here?


  4. - Chi - Thursday, May 29, 14 @ 3:16 pm:

    =the most employee-friendly pension bill=

    current-retiree-friendly is different than employee-friendly


  5. - low level - Thursday, May 29, 14 @ 3:18 pm:

    “Rauner is not behind the opposition … He favors a switch to 401(k) style plans” - Durkin and other Republicans.

    This sort of makes sense, I suppose (Republicon artist style.) He doesn’t favor any reforms - rather, he is opposed to the whole system and won’t be satisfied until every last pension - averaging $30k, is put at risk.

    Rauner is a clown. He expects everyone to become a stock market expert. Now, part of my retirement is in a 401(k) style system. However, I know a thing or two about investing. Suddenly, though, the 60 year old teacher who has spent her entire career education our children is supposed to have the financial instincts of a MBA.

    Give me a break, Bruce.
    Republi-con artists.


  6. - titan - Thursday, May 29, 14 @ 4:56 pm:

    Aren’t there signigicant cash flow problems for the state if such a 401(k) type system were put into place?
    How would the state pay the pensions of the current retirees without being able to use the money being paid in by the current employees?


  7. - Property taxpayer - Thursday, May 29, 14 @ 5:00 pm:

    Durkin has it nailed. The mayor’s pension Reform Bill has received extraordinary scrutiny, both by the media and by civic and fiscal organizations. Preckwinkle’s has gotten little attention. The attention it has received indicates it is woefully inadequate in reducing future pension costs. Her unwillingness to identify the source of the $140 million before her election is further evidence of the political nature of this so-called “reform”.


  8. - NoBody's Perfect - Thursday, May 29, 14 @ 5:25 pm:

    Here at ShakeyMitt HQ we are disappointed Durkie is not confirming powerful bid to kill the County pension bill…how can we show our cool, cash driven “power” if we don’t get credit?
    Come on Durkie sing our little song.


  9. - low level - Thursday, May 29, 14 @ 5:58 pm:

    Last time I checked, Property Taxpayer, Cook County Government workers pay property taxes as well if they own a home.

    News flash - they pay the same taxes everyone else does, so I’m really not sure where you are coming from.


  10. - NoBody's Perfect - Thursday, May 29, 14 @ 7:04 pm:

    Up here at ShakeyMitt HQ we are deeply saddened that our bid/threat to oppose the PQ road program failed. Perhap Durkie has found a new barrel of campaign cash to replace lost due to our boycott.


  11. - DuPage - Thursday, May 29, 14 @ 7:53 pm:

    Preckwinkle might have a problem with the Illinois constitution. She could cut for future employees, but existing employees would be covered by the pension protection clause, same as the state pensions.


  12. - Andrew Szakmary - Thursday, May 29, 14 @ 9:03 pm:

    I agree with DuPage. This rush to enact pension diminishment legislation that is patently unconstitutional, before the courts even rule on similar existing legislation, is the height of absurdity and an unconscionable waste of time and resources.


  13. - Anonymous - Thursday, May 29, 14 @ 9:55 pm:

    Didn’t have time to weigh in until now. Everyone, city, county, etc. should put their desire for pension changes on hold until the current law suit is resolved; otherwise it is highly likely they will be back having to re-do it after forking out payment for losing a law suit.

    Plus Quinn should be against any changes at the local property tax level right now. He’s most likely going to have to shove a portion of the TRS and SURS pension payments onto the local taxing districts and he doesn’t want them to have already tapped out the property taxpayer.


  14. - Mr.Big Trouble - Thursday, May 29, 14 @ 10:07 pm:

    You don’t need the financial instincts of an MBA in order to create a reasonable portfolio for retirement. That’s a lie promulgated by the financial services industry– trust us because we know so much more than you do. There is plenty of good material available for someone to educate himself on the basics of investing and to do well. Keep it simple and take charge of your own education and destiny and you will do fine.


  15. - anon - Thursday, May 29, 14 @ 10:14 pm:

    This bill is far worse for current employees than SB1 or the City bill. As pointed out above, the retirees are barely touched. But the unions don’t represent the retirees.

    Also, I have not had time to read the final bill but her initial proposal to the unions had a clause that the County would pay NO cost of living whatsoever if the funding remained below a certain level. Would anyone trust the County not to deliberately underfund for the sole purpose of eliminating COLA entirely?


  16. - RNUG - Thursday, May 29, 14 @ 10:23 pm:

    Oops … don’t know exactly what happened but - Anonymous - Thursday, May 29, 14 @ 9:55 pm was I …


  17. - Federalist - Thursday, May 29, 14 @ 10:23 pm:

    Are these employees on SS also?


  18. - Cold - Friday, May 30, 14 @ 7:22 am:

    Cook County employees do not have Social Security.


  19. - Sean Tankarian - Friday, May 30, 14 @ 11:28 am:

    The pension egg started to crack for the private sector in the 80s as declining asset prices put too much pressure on corporations to pay future debt obligations. The public sector depends on the private sector for funding of salaries, benefits, etc. so the stress in the public sector is understandable given the economic climate over the past 10+ years. Public sector pensions will be around for some time, but adjustments are obviously needed. At its core the pension issue is a debt issue and dealing with debt is very painful. publicretirementplanners.blogspot.com


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

          
        * What is the ideal app development strategy?
        * iPhone wins big while Windows Phone runs on empty | Pocketnow Weekly 133 (Podcast)
        * 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

        * The Pirate Bay Is Now Back Online And Fully Functional
        * Schedule Your Phone Calls Instead of Reacting to Them
        * Capital Gains: Jay-Z Buys a Music Streaming Service, Giphy Raises $17 Million and More
        * Check Out the Best From This Week's Open Thread
        * Amazon's Cheap Tablets are Even Cheaper Today
        * The Super Bowl Starts at 6:30 and Google Knows It, So We Can Stop This Now
        * Create a “Fairytale Phone” With a Raspberry Pi and a Rotary Phone

        * Agent: Samardzija open to extension talks with White Sox
        * James Shields is the biggest February item of baseball business
        * 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)

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


        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


        * Illinois governor urges against travel during s.....
        * Storm blankets US Midwest in snow..
        * Storm blankets US Midwest in snow, creeps towar.....
        * As evening approaches, blizzard shows little si.....
        * OFFBEAT with PHIL POTEMPA: Chance to see local .....
        * Slow-moving storm blankets the Midwest in heavy.....
        * Storm blankets Midwest in snow, creeps toward N.....
        * Report: Illinois paid over $1.8M for medical po.....
        * Worst of snow misses Springfield..
        * NFL to keep the roof open for Super Bowl Sunday..


        * Storm blankets Midwest in snow, creeps toward Northeast
        * Power outages reported during Chicago area storm
        * Illinois governor urges against travel during storm
        * Report: Illinois paid over $1.8M for medical pot program
        * Northern Illinois students press for underage access to bars
        * Overturned tanker forces closure of central Illinois freeway
        * Fact Check: Rauner arguments for reform don't all add up
        * Chicago area attractions close because of weather
        * Winter blizzard cancels over 1,000 Chicago flights
        * Judge: Quincy man accused in beating death mentally fit

        * Report: Illinois paid more than $1.8M for medical pot program
        * 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

        * Weather scraps more than 1,100 Chicago flights
        * 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


          * Pastor shot in Back of the Yards church
          * Say it ain't so: Blizzard 'still intensifying'
          * Restaurants closing early due to the storm
          * Rauner faces immediate test as Illinois runs out of day care money
          * Snowfall could be windfall for furniture store customers
          * Bolingbrook man dies week after Lawndale shooting
          * 'Frozen' show goes on despite blizzard


          * 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


          * Report: Illinois paid more than $1.8M for medical pot program
          * 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


          * Bellevue delving into its war past
          * Richey: Illini losing streak hits seven
          * Winter blizzard cancels about 1,600 Chicago flights
          * Heavy snow tackles Ambrose Dome
          * Feb. 2 Bob Asmussen chat
          * LIVE! Wisconsin
          * New movement group at Westhaven gets kids movin’ while learnin’
          * Missing student's sister: After body found, 'I’m trying to be strong'
          * Updated: I-57 closed west of Champaign due to accident
          * Without an ID, what can you do?


          * Dubnyk stops 35 shots, Wild beat Canucks 4-2
          * Messi, Neymar lead Barca to 3-2 comeback , Arsenal wins
          * Large storm dumps a foot or more of snow on northern Indiana
          * Messi, Neymar lead Barca to 3-2 comeback win over Villarreal
          * Koepka rallies to win Phoenix Open for maiden PGA Tour title

          * Three Family Members Receive Service Medal...
          * Bost, Shimkus take oaths in Benton ceremon...
          * US Congressmen Take Ceremonial Oath in Ben...
          * Congressional swearing-in held at Benton, ...
          * Shimkus co-sponsors bill to prevent overre...
          * Shimkus votes to prohibit taxpayer funding...
          * Congressman visits WVC to talk bills, comm...
          * Subcommittee Continues Work Toward Pro-Job...
          * On 42nd Anniversary of Roe v. Wade, Shimku...
          * Shimkus Votes for No Taxpayer Funding for ...

          * January White House Photo Diary...
          * Baker: Congress Speech Could Backfire on B......
          * Durbin criticizes Netanyahu DC trip...

          * Redskins spent $180,000 lobbying to keep n......

          * Not Long for This World? The Story of Birch Burdette Long's Mariano Park, as it goes out For Bid
          * Facebook me!
          * My Chicago 35th ward alderman Rey Colon just doing his job. DUI video emerges.
          * Why are the names of public pension investment managers a secret? Pay-to-play in Chicago.
          * We’ve moved!
          * In The Lyons Of Fire
          * BGA Backs New State Disclosure Effort
          * Budget Crisis Task Force Examines Illinois’ Debt Woes
          * To Cut Costs, Suburbs Eye Police Dept. Merger
          * State’s High Court Hears IG’s Case


          * 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