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* House GOP Leader Tom Cross on pension reform and Friday’s special session…
“I would encourage [Gov. Pat Quinn] if nothing happens Friday, to call us back. If he wants to call us back Saturday, Sunday, Monday, Tuesday or Wednesday, we really don’t care. We’ll go back,” Cross said, adding that reform needs to happen now, not after the November election. “People are going to yell and scream and they’re going to complain. It’ll be chaotic down there (in Springfield). But my approach is you put us in a room, lock the (door) and when we’re done you let us out.”
Chaos is what the minority party usually wants. Chaos and furor and confusion all serve to embarrass the majority party. And dire warnings of catastrophe…
A catastrophic pension-fund collapse may be what Illinoisans need to understand the urgency of pension reform, House Republican leader Rep. Tom Cross said Tuesday.
* But the State Journal-Register has some reasonable advice…
So for now, the House and Senate should send a message to Wall Street and the credit rating agencies that the state is serious about pension reform by acting on Cullerton’s plan. It offers lawmakers and state employees a choice between keeping the 3 percent, compounded cost-of-living increase or a lesser cost-of-living increase, access to state-sponsored health care upon retirement and the counting of raises toward their pensions.
The proposal, which is projected to save $30 billion over the next 40 years, only has a chance of passage if House Minority Leader Tom Cross, R-Oswego, changes his position and supports the Cullerton plan.
Quinn and Cross are demanding a solution to the whole problem right now. That’s not realistic. Nearly $70 billion of the $83 billion unfunded pension liability is in the Teachers’ Retirement System and State Universities Retirement System. Do they really think the rating agencies and bond houses are going to forget about those systems and let the state off the hook?
This is a tough problem. It took decades for the state to dig itself into this hole. Lawmakers won’t be able to leap out of it on Friday, but they can start the climb.
* Related…
* VIDEO: Leader Cross on pension reform
posted by Rich Miller
Wednesday, Aug 15, 12 @ 10:30 am
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“The proposal, which is projected to save $30 billion over the next 40 years, only has a chance of passage if House Minority Leader Tom Cross, R-Oswego, changes his position and supports the Cullerton plan.
Quinn and Cross are demanding a solution to the whole problem right now. That’s not realistic. Nearly $70 billion of the $83 billion unfunded pension liability is in the Teachers’ Retirement System and State Universities Retirement System.”
So if the liability is nearly 70 million for TRS and SURS and the total pension shortfall is 83 million than that leaves 13 million savings needed. But, the first paragraph states that passage of Sen. Cullerton’s plan will save 30 million on the state employee’s and legislator’s plans. What happen’s to the 17 million out of the 30 million that’s not needed.
Some pretty poor math.
Comment by Mouthy Wednesday, Aug 15, 12 @ 10:44 am
Mouthy- you beat me to it! IF you only need to “save” (as in reduce promised benefits) by 13 billion from the SERS and GAR portion of the deficit (with 70 billion unfunded in the Teachers system), isn’t asking SERS and GAR to give up 2.5 times their shortfall wrong? This also shows that what they are voting on on Friday (Ha!) goes way further than necessary.
Comment by Roadiepig Wednesday, Aug 15, 12 @ 10:54 am
I have this hybrid mental image of the College of Cardinals in conclave and the legislators held in special session, locking the doors with no contact with the outside world and burning all documentation of their votes as they go along until they reach a choice.
Comment by thechampaignlife Wednesday, Aug 15, 12 @ 11:00 am
For anyone that did not attend or watch yesterday’s hearing in the House Pension and Investments Committee yesterday, it is very apparent how little Tom Cross and the HGOP understand this issue and are only using this tactic to get the media, average citizens, and their base and fringe groups fired up. I’m all for reform and I’m a Tier 1 member that understands that 2 of the 3 major causes for the mess we are in was caused by legislature and past Governors (both Republicans and Democrats are to blame, more blame can be attributed to the Dem’s though). What Cross and Quinn is doing is shameful. Yes, we understand there is a problem, tough votes will need to be made. Madigan and Cullerton want school districts to begin paying normal cost. It makes a lot of sense and the gradual phase in schedule is manageable for the school districts.
Cross/Quinn are all talk, don’t understand the issue, have no muscle to do anything other than pander through the media by using scare tactics. If Madigan/Cullerton take the bait and call the bill that impacts TRS/SURS benefits + shifting costs before the election, then Madigan/Cullerton are not nearly as sharp as I give them credit for. Only way Cross can win is such a bill is called before the election. Madigan wins by calling SERS/GARS bill for a vote and “target repub’s” vote no.
Cross, it’s time for you to return to the “kid’s table” where you belong. For you to advocate that the Retirement System’s adopt a 5.5% assumed rate of rate proves how little you understand the pension issue in Illinois. Where do you get off suggesting that the legislature mandate such an assumed rate? They can’t even manage their own finances.
Comment by dirt diver Wednesday, Aug 15, 12 @ 11:12 am
The problem with public pension system in Illinois is that it is regulated/funded by the legislature. In our history, very few legislators understand the realities and nuances of the system. Those that did or do, have exploited the vulnerabilities by creating “windows” or “loopholes” in the Code to help cronies. Both parties are to blame. Jim Edgar and Speaker Madigan blessed more of these pension abuses than anyone. How many benefit increases have been created throughout the years that were not paid for? How many years did underfunding occur? The solution is to get the GA out of the business of regulating the pension code, it only creates problems.
Comment by dirt diver Wednesday, Aug 15, 12 @ 11:22 am
–A catastrophic pension-fund collapse may be what Illinoisans need to understand the urgency of pension reform, House Republican leader Rep. Tom Cross said Tuesday.–
What, are you saying we’re stupid or something? Is that all you’ve got? Lead, follow or get out of the way.
Comment by wordslinger Wednesday, Aug 15, 12 @ 11:52 am
thechampaignlife - So should we look for smoke coming out of the top of the dome?
Comment by Mouthy Wednesday, Aug 15, 12 @ 11:54 am
Dear Leader Cross,
Return to the golf course and stay out of the pension issue.
Comment by dirt diver Wednesday, Aug 15, 12 @ 11:55 am
The paper is a little off on the unfunded liability (UL). TRS and SURS make up $61 billion (not $70 billion) of the $83 billion. And the actual UL is not the same as the amount of payments over the next 40 years. It is like your mortgage - your balance may be $100,000 (like the total UL is $83 billion), but the total payments over the life of the mortgage are a lot more than that. The State would have to make annual payments (level debt service) of $7.47 billion for 30 years ($224.1 billion) to pay off the Unfuded Liablity at the current rate of return for the pension systems.
Comment by archimedes Wednesday, Aug 15, 12 @ 11:56 am
My first post should have been billions and not millions. Clerical error.
Comment by Mouthy Wednesday, Aug 15, 12 @ 12:05 pm
===Dear Leader Cross,
Return to the golf course and stay out of the pension issue.===
Rumor has it that the HRO does, indeed, have a golf outing during State Fair … so you will get your wish!
Tom Cross - either the Head Mushroom, or “Three-Putt” Tommy … take yer pick, because running a caucus, not so much.
Comment by Oswego Willy Wednesday, Aug 15, 12 @ 12:06 pm
Tom Cross is part of the problem. not part of the solution.
Unfortunately, his caucus appears ready and willing to follow him blindly.
Every time Democrats offer a solution, Cross moves the goal posts.
Now, he thinks it would be great if the state’s retirement system collapsed?
Where, btw, is Tom Cross’ pension bill? I HOPE he plans on calling it for a vote Friday.
Comment by Yellow Dog Democrat Wednesday, Aug 15, 12 @ 12:12 pm
Does anyone honestly believe that clown Tom Cross wants to do anything other than play golf? What a joke.
Comment by just sayin' Wednesday, Aug 15, 12 @ 12:44 pm
Here is a radical idea for pension reform: pay the bill!
Comment by Liberty_First Wednesday, Aug 15, 12 @ 12:55 pm
@dirt diver -
Appropriate nickname.
Cross’ golfing is fair game, as is Madigan’s love for apples and Saputo’s.
That personal attack was offensive.
YDD
Comment by Yellow Dog Democrat Wednesday, Aug 15, 12 @ 12:57 pm
Well let’s see. We had a bill madigan sponsored right before the vote Quinn says he is against the cost shift. Madigan withdraws his support bill fails. Yeah it s the GOP fault for all this mess. Also not one GOP vote is needed to pass a law as an example the tax increase we were all lied to about.
Comment by Fed up Wednesday, Aug 15, 12 @ 1:06 pm
Easy, - drit diver-,
And that comes from me!!!
Stick with the golf, please.
Comment by Oswego Willy Wednesday, Aug 15, 12 @ 1:21 pm
I did Cross the line on comments about Leader Cross, I was just pushed over the edge after the joke of hearing that took place yesterday in which Mr. Cross suggested that the State Retirement Systems need to adopt an assumed rate of return that mirrors the Moody’s standard (5.5%) that has been recently published. If he even bothered to read the Moody’s information on their rate, he would know that Moody’s is only using that as a measuring stick to compare public pension debt, with private sector debt. Even Moody’s (despite their lack of credibility) has stated they are not advocating for funds to drop their rate to this suggested level.
Comment by dirt diver Wednesday, Aug 15, 12 @ 1:32 pm
The Journal-Register’s advice might be reasonable if anyone seriously believes that the Guv and Legislature would follow up in good faith and fully reform the rest of the system. Personally, I think they are far more likely to see if this has the desired effect on the bond agencies, then drop further action if it is. Secondly, it might be “resonable advice” if you are nive enough to believe that this lot would ever negotiate anything in good faith. A better bet is that after this gets shoved down state employee throats, they will decide that the same state employees are easy pickings andtry to make up for more of their folly by reneging on even this deal. For pete’s sake, Rich, look at who we are dealing with! They haven’t a shred of honor or integrity.
Comment by Skirmisher Wednesday, Aug 15, 12 @ 1:37 pm
@dirt diver -
I know its hard to soar with the Eagles when you are surrounded by turkeys, but don’t let it diminish your otherwise fine reputation.
BTW, don’t assume that Cross hasn’t read the Moody’s report and doesn’t understand that what he’s saying is absolutely 100% untruthful.
Cross might not be the sharpest crayon in the box, but he’s also not known for his sincerity.
Comment by Yellow Dog Democrat Wednesday, Aug 15, 12 @ 1:44 pm
Cross needs to wise up. Move on what they have now. Save the circus for less serious matters.
Comment by Wensicia Wednesday, Aug 15, 12 @ 2:05 pm
If they were to pass what they have now, they could litigate it now and find out if (or how much of) it is constitutional BEFORE they impose the same limits on the other systems and spend the ’savings’ elsewhere…
Comment by titan Wednesday, Aug 15, 12 @ 2:50 pm
Was THIS really the Speaker’s Quote?…
“I expect IL GOP will have a peaceful gathering at the fair tomorrow. Just remember, no one boos the irrelevant.”
Yep …
The Speakers says very little, but when he does speak, Madigan cuts to the quick…
Comment by Oswego Willy Wednesday, Aug 15, 12 @ 4:38 pm
===Was THIS really the Speaker’s Quote?…
“I expect IL GOP will have a peaceful gathering at the fair tomorrow. Just remember, no one boos the irrelevant.”
Yep …
The Speakers says very little, but when he does speak, Madigan cuts to the quick…===
MY Bad … that was from The Twitter … @SpeakerMadigan … funny line thou…
Comment by Oswego Willy Wednesday, Aug 15, 12 @ 5:03 pm
“I expect IL GOP will have a peaceful gathering at the fair tomorrow. Just remember, no one boos the irrelevant.”
Hmm if they are so irrelavant then Madigan could pass pension reform and cost shift with out them. But he is whinning that he needs their votes to pass the reforms. Madigan he does speak much but when he does he speaks out of both sides of his mouth.
Comment by Fed Up Wednesday, Aug 15, 12 @ 6:22 pm
It’s nice how they waste money we supposedly
don’t have and go back to Springfield to try to finish business when it should have been done before they left.
Comment by Lucky Wednesday, Aug 15, 12 @ 6:35 pm
I think the @SpeakerMadigan is a spoof, but a funny line none the less …
I get what you are saying - Fed Up -, but you would think Minority Leader Cross would have figured out how to manuver what the Speaker needs to the HGOP’s advantage, considering the HGOP only knows how to BE the minority, less the 2 years of Speaker Daniels …
Cross’ leadership makes the irrelevence … relevent, and the quote … a little funy.
Further,
I also think the “snark” was about the ENTIRE IL ILGOP, but especially Brady, Radogno, and Cross and that in itself is pretty funny too.
As a Repub, I laugh because with this hand and no caucuses changing leaders, and no one leashing Brady … what can I do at this point?
Comment by Oswwego Willy Wednesday, Aug 15, 12 @ 6:43 pm
That is “me” above … I guess I forgot how to spell Oswego …
Comment by Oswego Willy Wednesday, Aug 15, 12 @ 6:44 pm
We live in interesting times.
For years, all we’ve heard is that Dems are captives of the unions and will drive us to the poorhouse protecting their masters.
In bad time, when the Dems look to take money away from the unions, the GOP goes AWOL and doesn’t want to commit to anything.
Folks, that’s bad faith. What’s the point of trying to do business with people like that?
The GOP minority in the GA is cozy with their offices, staff, per diem, and ever-smaller number of safe seats.
It’ a shame. I grew up in DeKalb County, which at one point was the toughest GOP county in the country from Lincoln on. Main Street GOP, Goldwater GOP, Reagan GOP. Not so much anymore.
Comment by wordslinger Wednesday, Aug 15, 12 @ 9:29 pm