Latest Post | Last 10 Posts | Archives
Previous Post: SUBSCRIBERS ONLY - Sullivan/Sandoval/Haine; Gambling; Statehouse Roundup (use all caps in password)
Next Post: This is the last thing they should cut
Posted in:
[The following is a paid advertisement.]
Are Illinois retired teacher pension benefits too rich? Do they cost too much? Does the governor’s plan improve the state’s fiscal health? These are fair questions and ones the Illinois Federation of Teachers would like to answer.
Illinois retired teachers currently average $41,532 in annual pension benefits received. Most do not get a Social Security benefit. The state’s “normal cost” for the current plan is around 6.5%, and since there is no Social Security payroll tax to pay, that is it. By contrast, private employers pay at least 7.65% for Social Security and Medicare.
No, benefit levels are not the problem, nor is their cost to Illinois taxpayers. The 800 lb. gorilla in the pension room is the pension debt, and reducing benefits for new hires does not change that. Even COGFA says the governor’s plan is not the answer, giving it harsh treatment in its April pension briefing memo.
Governor Quinn’s pension proposals will penalize new teachers for decades, even after the economy bounces back. A decent, stable pension system is one of the reasons young teachers can stay in the profession when teacher salaries don’t compete with other professions. Our current plan is affordable and provides decent benefits.
posted by Capitol Fax Blog Advertising Department
Thursday, May 14, 09 @ 11:58 am
Sorry, comments are closed at this time.
Previous Post: SUBSCRIBERS ONLY - Sullivan/Sandoval/Haine; Gambling; Statehouse Roundup (use all caps in password)
Next Post: This is the last thing they should cut
WordPress Mobile Edition available at alexking.org.
powered by WordPress.