Poll: No cost shift, but reform pensions
Monday, Jun 25, 2012 - Posted by Rich Miller
* Crain’s has a new poll. Here’s one of the results for the hot-button issue that’s supposedly holding up pension reform talks…
Asked whether teacher pensions should be paid for through state taxes, equalizing the pension bill everywhere, or through raising local taxes so that each school district pays only for its own teachers, 45 percent back the current state system, with 28 percent preferring a switch to local funding. A relatively high 28 percent say they don’t know what to do or have no opinion.
Crain’s didn’t publish its exact questions, but a phrase like “equalizing the pension bill everywhere” could easily lead respondents into being for the status quo. It’s also not true. “Everywhere” in Illinois would necessarily include Chicago. And the state doesn’t currently pick up Chicago’s share of the employer pension contribution.
It also appears that lots of people just don’t understand this situation. It hasn’t been debated nearly as much as most other pension issues, mainly because nobody ever talked about the fact that Chicago pays its employer share into its pension fund, while the state picks up the employer share for suburban and Downstate schools.
* Overall, though, Illinoisans want to reform the current pension program, according to the poll…
* They do disagree somewhat on the details…
* From Crain’s…
Presented with four options that lawmakers have discussed to offset the pension plans’ collective $83 billion in unfunded liabilities, survey respondents give majority support to only one, with 57 percent saying that workers should have to contribute 3 percent more from their paychecks to keep their current pension benefits; 26 percent say no.
But pushing back the retirement age to 67 draws only 47 percent support (with 20 percent strongly backing that option) and 37 percent opposed. And asked whether workers should be forced to choose between paying 3 percent more or losing their state-provided retirement health care, Illinois residents are split 42 percent against and 40 percent in favor. The difference is well within the poll’s credibility interval of plus or minus 4.9 percent.
Similarly, those surveyed reject a measure now pending in pension talks in Springfield that would require local school districts and taxpayers to pick up teacher retirement costs that now are funded by the state.
Discuss.