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Economic Club of Chicago Chairwoman Debra Cafaro asked Pritzker why lawmakers shouldn’t let voters change the state’s pension protection clause to control the growing cost of public sector pensions.
“To even working-class me, that seems like a fair way to address the shared sacrifice that we all have to make to get Illinois on the right track,” Cafaro said.
Ventas Chairman and CEO Debra Cafaro received more than $25 million in total pay [in 2017], more than double what she earned in 2016, as the company switched to a new compensation system for its top executives.
Ventas, a Chicago-based real estate investment trust that specializes in senior housing and medical properties, paid Cafaro $25.3 million in 2017, including stock awards totaling $17.4 million, up from total compensation of $9.7 million in 2016, according to a company proxy filed yesterday.
People do rise from the working class to high positions of power and wealth (as Cafaro most certainly did) and they may still consider themselves working class at heart. But, c’mon, they’re no longer working class when they make $25 million in a single year. A person making the median income would have to work about 397 years to earn what she raked in during just one.
So, with respect, maybe it’s not all that believable for a successful CEO to advocate cutting retirement benefits for people who worked for modest pay their entire lives by claiming to currently be one of them.
posted by Rich Miller
Thursday, Nov 21, 19 @ 10:48 am
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At least her $4,000,000 house on the lake is a monstrosity and needs a ton of work. https://www.zillow.com/homedetails/245-Sheridan-Rd-Kenilworth-IL-60043/3364175_zpid/
Comment by Sonny Thursday, Nov 21, 19 @ 10:52 am
This issue has gone to the state supreme court more than once. They may not like the answer but advocates like Cafaro cannot ignore what the court keeps saying.
No one we advocates cutting benefits for current employees is serious about reform. It’s a non-starter
Comment by DIstant watcher Thursday, Nov 21, 19 @ 10:53 am
How is amending the constitution “sharing” the sacrifice? It would only ask MORE of the people who are ALREADY sacrificing the most while asking nothing of the rest of the state. I’m paying taxes AND my slice of the pension right now. This framing has never made a lick of sense
Comment by SWIL_Voter Thursday, Nov 21, 19 @ 10:55 am
CEO’s have no problem canceling contracts
Comment by Rabid Thursday, Nov 21, 19 @ 10:58 am
=why lawmakers shouldn’t let voters change the state’s pension protection clause to control the growing cost of public sector pensions.=
Because the responsibility for this issue lies at the feet of the Illinois Legislature and Governors for the better part of the past century. That means those who created the problem will bare little to no responsibility of cost to pay the borrowed and skipped payments back.
Just for starters….
Comment by JS Mill Thursday, Nov 21, 19 @ 10:59 am
“To even working-class me”
Lol, this person is born to be a concern troll.
That’s also part of the delusion that certain wealthy people or their mouthpieces push when it comes to a graduated income tax, that it will affect the middle class when it will really affect upper incomes and the richest. Some rich people apparently see themselves as middle class victims. It just bolsters the case for not cutting pensions and taxing the rich more.
We’ve done pension reform and brutal cuts via the previous governor’s budget sabotage, including depriving thousands of state workers of their legally-obligated pay increases. The biggest problem is unfunded pension liability, and what we haven’t done is tax the rich more. It’s been a sweetheart deal for upper income folks, being taxed at the same low rate as everyone else for so long. They have to join in the sacrifice.
Comment by Grandson of Man Thursday, Nov 21, 19 @ 11:02 am
In reference to Sonny’s post-
Man, the difference in home values from one end of this state to the other is night and day.
Comment by efudd Thursday, Nov 21, 19 @ 11:02 am
Thanks for posting Rich and thanks for standing up for those of us who will be relying on those pensions to survive in our old age.
Social Security and my pension will be all I’ve got. I’m probably gonna have to work till I can’t. And that’s okay. I love my job and it provides so much stability for my family.
The wealthy and privileged are diseased in my opinion. Karma is building up against them I feel.
Comment by Honeybear Thursday, Nov 21, 19 @ 11:06 am
Always enjoy hearing those who sit at the top go on about if only they still sat at the bottom, they would be perfectly fine getting hosed by those they aspire to join.
To ask those whose livelihood depends on a fair and modest pension to “sacrifice more” is a slap in the face to all the owners of one home. I’m of the humble opinion, when the rich no longer have multiple choices about which home they wish to sleep that night should we consider the burden equally shared.
Comment by MG85 Thursday, Nov 21, 19 @ 11:06 am
How is cutting the pensions a shared sacrifice for all Illinois citizens? The only people negatively affected by that move are the state employee retirees. What shared sacrifice will she suffer as a result?
We can’t do what the true appropriate action would be- Bill every one who lived in Illinois the years the pension fund was shorted retroactive taxes to make the shortfall up.
So therefore all Illinois residents must pay the extra taxes now.
Go ahead, tax retirement income. Keep in mind it has to be all Illinois residents retirement income, not just state employee retirees.
Comment by thoughts matter Thursday, Nov 21, 19 @ 11:14 am
If you want to be a hero, well just follow me.
https://www.youtube.com/watch?v=iMewtlmkV6c
Comment by Six Degrees of Separation Thursday, Nov 21, 19 @ 11:16 am
The wealthy are diseased?
What a disgraceful comment Honeybear. A lot of wealth privileged people worked very hard, took substantial risk to acquire what they have.
They also employ a lot of people too.
Does that also apply to those that inherited their wealth like and stash it off shore like JB?
Comment by Lucky Pierre Thursday, Nov 21, 19 @ 11:16 am
The most telling thing about uber-wealthy folks who earned their way to success… is if they reach down to help other rise… or use their foot to keep others from rising.
This is that foot keeping others down.
Comment by Oswego Willy Thursday, Nov 21, 19 @ 11:17 am
Plutocrats like Cafaro know the public is finally waking from its slumber and starting to realize that the reason their incomes have been stagnant for 50 years, their kids are strangled by college debt, and they have nothing saved for retirement, isn’t really the fault of immigrants washing the dishes, cutting the grass and working at the packing plant.
So, Debra, go ahead and don that spiffy plaid shirt and jeans, throw a barn coat on top, finish your PBR while talkin’ bidness with some dudes at the VFW before you hop on your Harley. We’ll see how it works out for you and your “working class” friends. (PS - don’t forget to drop that “g”, newbie.)
And, if you think the equivalent of throwing a few of those coins into the Salvation Army kettle like a real working person - aka tax-deductible charitable giving - is gonna save you, well, the public’s waking up to that scam, too.
“How America’s Elites Lost Their Grip” just published today in Time is good reading. Maybe something to chew on over some cold ones next time you’re at the VFW hall.
Comment by Moe Berg Thursday, Nov 21, 19 @ 11:20 am
the whataboutism on pensions isn’t to advocate changing the constitution on benefits. If the venture capital/Tribune/Civic Fed set really wanted that done, they wouldn’t have sat on their hands in 2013. It’s about why not to be for the Fair Tax.
Comment by Not for Nothing Thursday, Nov 21, 19 @ 11:22 am
Why worry about changing the pension clause? Why even have it if you are so convinced the contracts clause in the federal constitution will protect public pensions in federal court? Nothing but rainbows.
Comment by Steve Thursday, Nov 21, 19 @ 11:27 am
=== Why worry about changing the pension clause?===
Anyone understanding 71 and 36 knows that the change right now is impossible.
Still, phonies like a person making $25 million a year thinking they know… whatever… it’s time to show the math, again, that matters… 71/36… then 60%
That’s the exercise here.
Comment by Oswego Willy Thursday, Nov 21, 19 @ 11:31 am
The Contract Clause appears in the United States Constitution, Article I, section 10, clause 1:
No State shall . . .pass any . . . Law impairing the Obligation of Contracts,. . .
The entire point of the clause was to prevent states from doing precisely what is proposed here and there has never been any serious question regarding its enforcement. It predates the 14th Amendment and thus has nothing whatever to do with its Due Process Clause.
The willful ignorance surrounding this is inexcusable.
Comment by HistProf Thursday, Nov 21, 19 @ 11:33 am
Yes Steve, why not chip away at the wall. After all, there are a LOT of bricks in that wall, I’m sure chipping away half of them couldn’t hurt anything… Please try to be serious, hard as that is for you.
More seriously, as it stands the pension is an ongoing promise and contract. As in new hires under Tier 2 are entering into a contract every time they are hired. Changing the IL constitution might change that, depending on language and court interpretations. So the NEXT generation, which is not the source of the pension debt, is just about the only ones who could be hurt by changing the IL constitution, without saving a cent in pension debt.
Comment by Perrid Thursday, Nov 21, 19 @ 11:38 am
I am not worthy to have an opinion on the working woman, Ms. Cafaro. She who suffers the daily indignity of the working woman. The working woman who has to decide which bills to leave until next payday. The working woman who prays the paycheck hits the account one day before the mortgage payment is due. The working woman who cancels her dentist appointment with the excuse of a sick child but really it’s because she can’t afford it. The working woman who takes a child to day care who would be better off at home due to a slight fever.
Poor poor Ms. Cafaro.
Comment by don the legend Thursday, Nov 21, 19 @ 11:43 am
Now we need some working people data on salaries paid …probably a 5K….Team JB probably smart enough to know the vote would be 90-10 and lead to another law suit and more delay. Non government workers have generally been hosed by employers over the last 25 years and now they want to impose the same punishment on govt workers. Perhaps we could the wing nuts to amending the US Constitution first
Comment by Annonin Thursday, Nov 21, 19 @ 11:43 am
Senior Housing and medical properties, where the firms take every penny they can from the individual or state, pay everyone working there except a select few $15/hour, and the top reaps the rewards. Working class
Comment by James the Intolerant Thursday, Nov 21, 19 @ 11:45 am
The wealthy are diseased?
My old man told me the best place to be was somewhere between rich and poor…he said being poor messes a person up…and being rich messed one up as well.
I believe he was right.
Comment by Dotnonymous Thursday, Nov 21, 19 @ 11:46 am
- HistProf -
No worries. Those Trump appointed federal judges will think just like you when it comes to public pensions. That pension clause was redundant in the Illinois state constitution . Rainbows.
Comment by Steve Thursday, Nov 21, 19 @ 11:46 am
=== Those Trump appointed federal judges will think…===
Nothing since this is a state issue to be decided by the ILSC… again.
Comment by Oswego Willy Thursday, Nov 21, 19 @ 11:51 am
OW
Glad you cleared that up since Pritzker and others claim the federal contracts clause would prevent changes. No standing in federal court.
Comment by Steve Thursday, Nov 21, 19 @ 11:56 am
There are so many wonderful wealthy people, just like anyone else. Capitalism is wonderful, too, it just needs reform. So-called democratic socialist countries have capitalism. America has the worst income inequality of all top economic countries, and it’s unacceptable. It’s a joy when we gain jobs, and when Chicago metro keeps winning at attracting corporations. It’s great that many workers now have more money to spend in the economy, thanks to the capital bill and the steps being restored to state workers.
What Fair Tax proponents are asking for is that upper-income people contribute more in state income tax, to be used for pensions and help unburden fiscal hardships that fall on the more-vulnerable, as just happened in Illinois. This is not unlike most of our neighbor states who have a graduated income tax and worse rates than what we’re proposing.
Comment by Grandson of Man Thursday, Nov 21, 19 @ 11:57 am
=== Just like when the Illinois lottery winners didn’t get their money===
That was because of a purposeful budgetary standoff.
Are you trolling, bored, purposely antagonist of things you know or willfully ignorant to get attention?
I don’t wanna know. I’ve fed you enough.
Comment by Oswego Willy Thursday, Nov 21, 19 @ 11:57 am
I don’t understand why she went down the path with that question. And she’s tone deaf with the working class comment.
She can take steps to shelter her income if she doesn’t want to pay more taxes. She wouldn’t be the first.
Comment by SSL Thursday, Nov 21, 19 @ 12:00 pm
As a public employee for over 30 years, my pension is the carrot that has been dangled at the end of the stick by my employer. I don’t begrudge others in private industry who have similar qualifications as I from getting mid 5-figure bonuses every year based on their individual/company’s performance. Me, and the vast majority of my co-workers, get the same 2% across the board increase regardless of performance. By the way, after the annual medical insurance premium increases are applied, out take home pay actually goes down. Not every pensioner is a school superintendent or CEO who will receive a 6 figure pension, think about the $18 hour CNA’s working in a public hospital, the maintenance staff, snow plow drivers, etc who can barely get by.
The pension was a contract between us and our employer, the employees have lived up to our part of the deal, the pension contribution comes directly out of our paychecks no questions asked. We don’t have the luxury of telling the HR Department, I’d like to put off contributions for a couple of years so I can get my car fixed or the roof replaced. The state has made a concerted choice to not fund their contribution and spend the money elsewhere. Try doing that with the social security contribution and the feds would’ve shut the state down.
Argue all you want about “you chose to go to government” and “if you don’t like it, get another job”, but the deal set by law was you do this job for xx years, we will pay you $$$ when you leave. With that promise in mind, me and my fellow workers accepted the conditions.
Take it from someone on the front lines, the quality of new hires since the tier 2 pension went into effect is drastically down from before. Jobs have gone unfilled and it is very difficult to attract qualified candidates. Folks, we are talking about prosecutors, mental health professionals, nurses, police, engineers, etc. The failure of local governments and the state to recognize this liability to fund the pension obligation as reality instead of passing the buck to the next group had got to stop. As stated above, the constitutional protection was put there for a reason.
Comment by Boris Goodenough Thursday, Nov 21, 19 @ 12:01 pm
OW
Hopefully , we’ll never have to see what some judge decides if the money isn’t there. I don’t think judges want to be in the business of forcing tax increases on people.
Comment by Steve Thursday, Nov 21, 19 @ 12:02 pm
C-Suites have worked to effectively kill the entire concept of retirement for decades. Making lives of workers worse long term has been orthodoxy for a long time- so of course she thinks this way. But hey- it keeps money in the hands of rich owners, and that’s what counts.
Comment by In 630 Thursday, Nov 21, 19 @ 12:03 pm
=== Glad you cleared that up since Pritzker and others claim the federal contracts clause would prevent changes. No standing in federal court.===
- Steve -
“Point of information” on your comment. No need for a follow up, to your take on the federal contract clause. It’s addressed here in the ruling.
https://capitolfax.com/2015/05/08/this-just-in-illinois-supreme-court-rules-on-pension-law/
No need to respond, thank you.
Comment by Oswego Willy Thursday, Nov 21, 19 @ 12:04 pm
- Grandson of Man -
You are inspiring. I think Chicago needs more English Language Learners (ELL) in its’ public school system. It’s an excellent way to fight inequality. It’s not enough to have 19% of the district learning English. The ELL students will produce more in taxes and the rich should pay more to fund their educations. 1600 SAT scores are right around the corner.
Comment by Steve Thursday, Nov 21, 19 @ 12:09 pm
What Holden Caufield would call a “phony.”
Comment by Lt. Guv Thursday, Nov 21, 19 @ 12:12 pm
=What a disgraceful comment Honeybear. A lot of wealth privileged people worked very hard, took substantial risk to acquire what they have.
They also employ a lot of people too.=
Where to start? How about at the bottom.
Who does Cafaro employ? She does not own the business. Maybe you have some evidence to back up your statement, but probably not.
Honeybear’s opinion is in no way a disgrace. You are simply obtuse in your torch bearing for the uber wealthy. They cash in on the labors of middle class and working class while holding their wages down and complaining about costs. They lobby states for freebies and labor laws that reduce the rights of workers so that we can allegedly be “competitive” with third world countries.
At the same time they long for the 1950’s as the good old days failing to acknowledge that the middle class experienced it’s zenith in large part due to rising wages of union jobs.
Comment by JS Mill Thursday, Nov 21, 19 @ 12:12 pm
– MrJM
Comment by @misterjayem Thursday, Nov 21, 19 @ 12:25 pm
It’s an insult to have someone who makes $25 million say they are working class. They are most certainly not working class. And it’s also pretty insulting for someone making $25 million a year talk about taking pensions away from people who aren’t by any stretch of the imagination rich and for someone making $25 million a year to talk about shared sacrifice.
I think a nice shared sacrifice would be to cut her pay in half. That seems fair.
Comment by Demoralized Thursday, Nov 21, 19 @ 12:26 pm
JS Mill
I think it would do us all well to ignore anything LP says.
Comment by Demoralized Thursday, Nov 21, 19 @ 12:27 pm
=I think it would do us all well to ignore anything LP says.=
You are right.
I enjoy knowing he couldn’t last one day doing what I have done for 25 years and I take solace in the fact that I will earn a tax-free pension north of $100k and good reasonably priced insurance in my retirement.
Comment by JS Mill Thursday, Nov 21, 19 @ 12:48 pm
Steve - of course there would be standing in federal court on both the contracts clause and the 14th amendment but there would also be standing in state court. Given the prior pension decision, I do think state court is the better choice however.
Comment by Tominchicago Thursday, Nov 21, 19 @ 12:55 pm
Where were all of these wealthy supporters of a compromise when Rauner was governor?
It was not until the flat tax rates were restored and they got their hats handed to them in the election that they became “fair share” advocates.
“Let’s call it a draw” after you’ve already lost the match isn’t how this works. It is not how anything works.
Comment by Thomas Paine Thursday, Nov 21, 19 @ 1:05 pm
=The ELL students will produce more in taxes and the rich should pay more to fund their educations. 1600 SAT scores are right around the corner.=
This from the google-
“about 300 out of 1.7 million test takers achieve a perfect score on the SAT, which is approximately 0.0176% of test takers.”
@Steve- So you are probably pretty critical of all of these wealthy districts and elite private schools that produce so few 1600’s right?
Comment by JS Mill Thursday, Nov 21, 19 @ 1:07 pm
“I enjoy knowing he couldn’t last one day doing what I have done for 25 years and I take solace in the fact that I will earn a tax-free pension north of $100k and good reasonably priced insurance in my retirement.“
Congrats. Twenty five years is a long time, and there’s no reason to scorn someone who can retire well after a certain amount of years worked. In many cases we can thank a union for increased standards of living, even indirectly.
FDR helped jacked up the federal income tax real high. What Bernie Sanders is proposing is mild compared to the massive federal tax hikes of the 1930’s. I like Sanders the best of all presidential candidates. The Fair Tax is mild and very necessary for our finances and economic well-being.
Comment by Grandson of Man Thursday, Nov 21, 19 @ 1:09 pm
I guarantee if Ms. Cafaro got her way and whatever pension/constitutional question she advocated for was passed and then the Illinois Supremes struck that down as well, that she and other pension haters would be back within a year asking for the same question be placed on the ballot.
Some people just cannot follow, let alone be bothered to read the law and accept certain facts that fail to conform to their narrative. In our own current bizzaro world where ‘alternative facts’ are an accepted set of principles for roughly 40% of the population, I can take comfort in knowing the Illinois Supreme Court and the law is the ultimate bulwark to withstand the attacks against Illinois workers and their earned pension benefits.
Comment by Tommydanger Thursday, Nov 21, 19 @ 1:23 pm
Everyone wants to be “working class” and “blue collar.” Until the paycheck comes.
Comment by filmmaker prof Thursday, Nov 21, 19 @ 1:35 pm
“middle-class me” is just an alternate reality of her in a parallel universe.
Here is the game plan in that universe:
1. Get 71-36 to put a referendum on the ballot
2. Get 60% of voters to approve
3. Get 60-30-1 to cut benefits
4. Get 4 IL Supremes to agree
5. Get 5 SCOTUS justices to agree
6. Profit obscenely
7. Wake up from the pipe dream
8. Still profit obscenely, just slightly less
Comment by thechampaignlife Thursday, Nov 21, 19 @ 1:38 pm
>to control the growing cost of public sector pensions
The ongoing cost of the pensions and the cost of the pension debt are two very different things. Regardless of her position, a CEO at that level should do a better job of articulating an issue.
Comment by Earnest Thursday, Nov 21, 19 @ 1:46 pm
Another tax-break-gorged elite passing him/herself off as working class / middle class proposing cuts to old-age benefits, presumably to pay for the next Cronus Chemical / Amazon tax incentive deal. Please leave our elderly alone.
Comment by Ares Thursday, Nov 21, 19 @ 1:59 pm
==that seems like a fair way to address the shared sacrifice==
Last Christmas, my friend was in the audience when another employee asked, “Why is our bonus being phased out when you just got an additional $10 million? Can’t you help out?” His response, “I’d love to…(but can’t) my salary is decided by the board of directors.”
Comment by Jocko Thursday, Nov 21, 19 @ 2:03 pm
I’d be happy to take 10% of Cafaro’s compensation and sacrifice the other 90%. Will she do that? Ha.
Comment by JoanP Thursday, Nov 21, 19 @ 2:34 pm
– The willful ignorance surrounding this is inexcusable. –
Its not as open and shut as so many would like to believe. The Supreme Court applies a balancing test. There is no guaranty that the contracts clause would protect the pensions. A lot would depend simply on the breadth of the proposed modifications to the “contracts.” The pensioners would certainly have a strong argument, but it is by no means anything close to certain.
Comment by Courts Thursday, Nov 21, 19 @ 2:37 pm
And will Cafaro be voting for a working class tax cut in the form of a progressive tax?
Comment by A Jack Thursday, Nov 21, 19 @ 2:44 pm
A lot of wealth privileged people worked very hard, took substantial risk to acquire what they have.
OK Boomer
Comment by Honeybear Thursday, Nov 21, 19 @ 2:44 pm
No standing in federal court.
I’m dumber for reading this.
Comment by miso Thursday, Nov 21, 19 @ 3:03 pm
If we want shared sacrifice try the progressive income tax. Should this not be enough to put Illinois on track to pay our bills, then extend the progressive income tax to all retirement income.
Comment by Enviro Thursday, Nov 21, 19 @ 3:18 pm
JS Mill and Honeybear are my heroes of the day. Well said. Even the “ok boomer” crack. Being of that generation, absolutely did not take offense. Thought it was funny.
Comment by Huh? Thursday, Nov 21, 19 @ 3:43 pm
OW
It is not just a state issue.
Comment by HistProf Friday, Nov 22, 19 @ 10:52 am
=== state issue===
Until 71/36 happens, it probably won’t be an Illinois issue.
Comment by Oswego Willy Friday, Nov 22, 19 @ 11:02 am