So, the retired administrator from Glenview wants corporations to shoulder the burden of her bloated pension. Is she willing to take the risk that the corporations will leave the state and take jobs with them when the tax burden gets too high? She needs to understand that EVERYTHING is "on the backs of the citizens" as she puts it. This includes the cost of her retirement.

"Republicans responded the fault lies at the hands of Illinois Speaker Mike Madigan who has proposed gradually shifting the costs of teacher’s pensions to individual school districts."

“'The fact that school districts don’t have to pay anything is unbelievable,' said Jo Sawyer, a retired communications consultant from Wilmette."

If this is all true, why are the following items on my Lake County Real Estate tax bill?

DEERFIELD SCHOOL DISTRICT #109 PENSION: 0.059
HIGHLAND PARK HIGH SCHOOL DISTRICT #113 PENSION: 0.062

As an investment manager (and your Republican Senate Candidate for the 9th District) I am very well versed in retirement plans. With about $50 billion in assets and well over $100 billion in unfunded liabilities (not even counting the Health Care benefit promises), there is absolutely no way to make this gap up with investment returns. The State just raised personal income tax rates 67% and corporate rates 46%, which did little to close the State's deficit. Taxing citizens and corporations even more is off the table, unless we want to see our taxpayers flee at a faster rate then the current 1 every 10 minutes (IPI study over last 15 years). Until everyone, including the Union leaders and their constituents, come to the realization that benefits must be cut first we are all just kidding ourselves. The fact that legislators just voted against cutting their own pensions is very telling. We don't have real leaders in this state, just liars and grifters who look to take care of themselves at every opportunity. If you want real solutions to our problems, go to my website at www.farkas4illinois.com, and then make sure to vote Republican in November. The Democrats and Mike Madigan have run this state for too long, and need to be summarily escorted out of Springfield.

"noted Rep. Lou Lang (D- Skokie). “It was the Governor that tried to force a pension resolution on a Friday when it was 85 degrees out in the middle of the afternoon. That is not a recipe for accomplishing of value.”"

I could care less what the temperature was outside. Isn't the Capitol building air conditioned? I imagine that with all the whiney, evasive souls within that it'd be the FIRST thing topping the list if it wasn't.

So give me, and the rest of the taxpayers a break. Suck it up and fix the problem that was created by the Legislature when they chose NOT to apply the tax dollars they received from the taxpayers to the pension obligations the Legislature agreed to.

In this case, we're so far in the hole that the State should simply declare bankruptcy and discharge the CONTRACTUAL obligations that are the pension obligations. What the pensioners funded themselves, they should get. What was actually funded by the State the pensioners should get. The rest of it? DISCHARGE THE DEBT and move on.

Going forward, if we can't fully fund something for the life of the 'something' - we would be well served NOT to ever offer it.

I'm not unsympathetic to the financial plight of the pensioners or what they were promised, but as a taxpayer, I ALREADY PAID my taxes - and the buffoons in the Legislature failed to apply those taxes accordingly, leading to a funding shortfall. So the problem isn't with the taxpayers, it's with the Legislature. Vote them out.

"Joan O’ Malley, a retired school administrator from Glenview went another way. “I’d like to see Springfield tax corporations and stop giving out unnecessary benefits. That is on the backs of the citizens"

IL already has the third highest corporate tax rate so she already has her wish. As the first commenter mentioned, this too falls on the backs of citizens.

If by "unnecessary benefits" she is only referencing company-specific tax credits (Sears, Caterpillar, CME, etc.), then I agree 100%. I don't think her complaint is that narrow, however.

Mr. White, my case is laid out on my website at www.farkas4illinois.com. I suggest you read it and then get back to me. Short answers to your questions though: Repeal corporate tax increase to keep businesses from firing/laying off more workers and/or leaving the state; lower personal income tax increase, and negotiate cuts with unions/pensioneers. Major cuts of politician pensions: 20%-40% of current pension, eliminate pensions for all new politicians. Convert existing pensions of both politicians and other state workers to "Cash Balance Plans" if under age 50. All new state workers get 401k plans, like the rest of us. Cut other state worker pension benefits by 10% and freeze COLA at 0% for up to 3 years. Re-evaluate after 3 years to check progress. Do you think any of the existing politicians, especially the Dems, would ever give you such straight answers? I think not.

Government Pensions are not sustainable and some tough decisions lie ahead. Our municipalities simply cannot afford to keep paying these outragous expenses that cause higher taxes and less services.

The ability to double dip and the outragous ability for people to game the pension system so that they receive AMAZING amounts of money in retirement that do not always accurately reflect on their economic contribution. In addition those that can take a high pension and then land another job that ultimately allows them to earn from both pots and then even enhance their pension even more is rediculous.

I am not talking about the guy that works 30 years running a machine in a factory but rather the govenmental employee that works at strictly gaming the system.

We need real reform. Oops, forgot that the biggest gamers are also the ones that make the rules! Discusting.

Mr. White, statistics show that 85% of the workforce does not currently have any pension, only a 401k and maybe an employer matching contribution. For the 15% who do have a typical pension, most are combined with a 401k plan (Defined Contribution). For those private sector workers with just a true Defined Benefit Plan (Pension) that number drops to 3%. The private sector long ago abandoned pensions because they are just too complicated (and expensive) to administer and expose the companies to large payouts long-after employees leave the company (See GM). When you allow pensions in the public sector, collusion and corruption also take over and what you are left with is the current situation. If we can extricate ourselves over the next 20-30 years from the pension shell game, the state will eventually be on much more sound financial footing. And as Me correctly states above, beginning pension payouts at 65 or so reduces the longevity of the taxpayers obligation. If state workers want to retire and live off their savings; or get another job that is fine....but their pension payments won't begin until much later.

Once upon a time, State and Municipal employees made much less than they could make in the private sector, so to thank them for their service, and help take care of them in their old age (because they had less to save, since they made less) - we funded pensions for them.

However, with the unionization of Governmental and Civil employees, the inevitable whining about pay occurred and as raises were given, pension contributions increased as well.

The employees made more money, narrowing the gap between public and private service AND got a pension funded by the taxpayers....

Folks, the social compact of less money so we fund a pension has been broken, and now public/civil jobs are often at parity or greater than private sector jobs (just look at the salaries of school administrators if you don't believe me...).

I'd argue that as an employee's salary goes up past a threshold amount (say $50K year) that the public pension contribution should approach ZERO. So by the time a public employee is at or exceeding the private sector wage, they get no pension dollars from the public. IF they want to set aside their own money - fine, but leave the taxpayers out of it.

Going forward - we ought to have no publicly funded pensions. Whatever the 401k equivalent is - we can use that - and NO matching with taxpayer dollars as they exceed the threshold amt. Let the employee manage their own funds too.

Mr. White: I would also dispute your numbers about the total amount of private sector workers getting a true, full blown Defined Benefit Plan (Pension). Large companies are the only ones that could even come close to funding a Pension (or take the huge risk to undertake). But you are correct, arguing about that number is pointless in saving Illinois. My goal is to save this state from implosion, which means we MUST end the public sector pension shell game over a period of 20-30 years. It is a matter of financial imperative and fairness. The taxpayers should not be on the hook for guarantees made by politicians that those same taxpayers do not have themselves. Any increase in funding by the taxpayers to shore up pension funds would come right out of taxpayers savings and/or retirement funds. That won't fly. I would start new public workers on a 401k plan with an employer match up to 3%-4% of salary--pretty much directly in line with private sector 401ks with a Safe Harbor provision. I advise all of my clients to stick 10-15% of their salary (at a minimum) into their plan to save for retirement. There are no guarantees, and if clients want one they can buy an immediate annuity upon retirement with their saved funds. Insurance companies are in the business to provide guarantees, and since they have duty to make their company survive long-term, I assure you they price that guarantee much better than Illinois does.

Gary, since the health care benefit promises do not fall under Constitutional protection, there is more room to negotiate. I suggest some sort of premium assistance program (based on income) that would allow workers to purchase insurance in the private markets. New workers would be in 401ks and eventually Medicare. I am not an expert in this area, so I would listen to many sides to ascertain the correct, long-term approach. But getting out of the retirement plan business and the health care business over time is the only way to return the state to solvency. The state has proven time and again that they cannot manage the risks for employees or taxpayers.

How many of you bright idea people are " financial planners?"
The far right continues to demean the working class
Nice try Greeberg et al.
You guys are just salivating over getting your mitts (hmmm?) on workers life's work.
401ks are a recipe for your churn and burn burglary
Put the Banksters in charge of the middle class retirement.
What go go wrong

Mr. Brown: The Democrats in charge of managing public sector funds have "demeaned" them far more than any Advisor could ever do. They lied, cheated and stole from the state purse and will inevitably force the public sector workers to accept far less in retirement than they are entitled to because of their malfeasance. How long will you let them pull their scam before you wise up and escort them out of office? Hopefully before all the money runs out and nothing is left for the younger public workers.

I understand people complain about the state income tax in Illinois being raised 66%. We all know that percentage is true (3% to 5%). Before the tax increase in Illinois there were six states that had zero income tax and two that equaled our level of 3% (Oklahoma and Pennsylvania). Most of the deficit in our state was due to mismanagement and corruption. However there were 42 states that had higher or equal state income tax that we had. Now there are fourteen states who still have a higher income tax compared to our 5%. Being a teacher I do agree we need pension reform. Even if the state did not put in anything ever again we would be solvent for over twenty years. That is due to our 9.4% we put in every check and never have missed. Make us work a few extra years, tax the retired income, take away COLA and maybe reduce five percent of what we get on our last four year average and add 3% to what we currently pay. Put the tax from the retirees back into the pension fund. We also do not pay social security so although that is a mess as well we wouldn't get anything from that. As some of us enter our twentieth year of teaching, we did not put in extra retirement funds (403 B for Govt. employees) earlier in our lives because of the pension that was put into law. I am trying to see both sides but I think some of you need to look at our side as well. Not to feel sorry for me because I know most do not. Just wanted you to hear a different view.

I attended the "Pension Reform" town hall meeting and was very alarmed by Rep. Biss' comments about his support for a Progressive Illinois State Income Tax, coming on the heels of the fairly recent State income tax increase. I also did not buy into his "spin" of re-framing the Pension Reform problem as a "fight" between local property taxpayers ( through proposed Pension Reform cost-shifting onto local school districts) and teachers while teflon-coating Springfield's multi-year fiscal irresponsibility of dealing with the burgeoning pension problems. Biss' blanket cavalier excuse and characterization of ALL being "liars" in Springfield (stated at the Town Hall meeting) and all being "idiots" ( see the recent Sun Times article on Pension Reform) should make everyone in the 9th District seriously consider that a new change in legislative representation is critical. And, Mr. Biss, this is not Rhode Island. ( We had to seriously stop ourselves from bursting out with laughter after his statement about supporting a Rhode Island solution). This is the big leagues and Illinois needs serious new leadership.

The ideas discussed here, or elsewhere for that matter, can only make a difference if the elected representatives in Springfield are different. By again electing those who brought us to this table (State Reps and Senators who have been in office 2+ years), we will get the same or similar outcomes. The adage, the definition of insanity is doing the same thing over and over and expecting something different to happen, sadly, applies all too well here.
The problem of the State budget has been known, detailed and discussed for approximately 10 years. Yet, our elected officials kept promising and spending. It is not the economy which is the main driver of the pension situation. It was and is the desire to stay in elected office by using public expenditures to curry favor which resulted in financial negligence, no more, no less.
What to do? Vote everybody out of State elected office from both parties. The logjam of inaction that is holding back the flow of credible ideas that could hold the solutions to our challenges can only be unblocked if we remove the barriers. It is too bad it has come to this in the Land of Lincoln. The recent and ongoing debacle in Springfield is so discouraging that I understand (but do not agree with) those that say they can see no way forward.

Democrat Quinn blames Republicans for the failures of the Democrat Madigan State House and the Democrat Cullerton State Senate. Boy, that's sure a sign of Mensa membership.
Democrat Obama blames the failures of 2009-2011 on the Republicans in the Democrat Pelosi House and the Democratic Reid Senate. Another sparkle of brilliance from Democrats.
The Democrats have had the majority of votes in the U.S. Senate but haven't passed a budget in three years. According to MSNBC, and other nearly defunct news networks, it's also the fault of Republicans. Such illumination.
The blame for Chicago's woes can't be blamed on Republicans because there aren't any left in city government. So the Democrat Emmanuel blames teachers, labor unions and just about any body else EXCEPT his precious Democrats who presided over the creation of the mess.
Remember the brainiac Todd Stroger's campaign TV ads in 2006 when he blamed the failure of County government on Bush? Another genius!

Here are some facts.

- most of America contributes to social security which is a guareented return. We will call it pension light. You get a return for as long as you live.
- teachers are presently not part of social security.
- 401Ks can start being drawn upon at age 55.
- 401Ks are not a guareented product as we should all remember from back in 2008 when a good chuck of people witnessed a huge decrease close to 50% in there account
- every teacher in the state contributes 9.1% of every paycheck to the TRS system.
- the State of Illinois, which we all live in, did not properly fund the system. The State is at fault for the pension being underfunded not the teachers which had to pay 9.1%.

The debate for the future retiree program is up in the air. There does not seem to be a proposal that compensates are best and brightest when they choose teaching as a career. To be a teacher you need at least a bachelors degree. The cost of which is around $60K. Many communities then want our teachers to get a master's degree, which adds perhaps another $40K to their debt. Then we as a community will decide whether to fund their salaries. Does this sound like a good career choice for young Americans?

As state citizens we should remember, if we gut the professions benefits, while increasing the cost to entry, we should not be surprised when our children get a second rate education.

All the Democrats must go!......

Go where? To Missouri perhaps? Then, "legitimate rape victims" could self block contriception of babies through some unknown power that only Republicans know about. Without Democrats- citizens of this Country would have no rights left. Ryan co-sponsored a bill with that Missouri nutcase! We have become the watchdogs now that much of the media is owned by Rupert Murdoch.
You should be glad we are here, but you'll never figure that out.

It seems to me that we elect representatives to manage governmental finances and that they have FAILED to do so. Consequently, if failure to fund pensions is the problem, then cut the pensions of the politicians. I am sure that would not totally solve the deficit, but it would sure motivate them to manage state funds more responsibly.
Pat Thalman

What percentage of our high school teachers are union members?

Most 401ks cannot be tapped, at 55 yrs., without paying ordinary income tax and a 10% excise penalty for pre-59 1/2 yr. early distribution. Limited exceptions. Most ERs do not include an in-service 55 withdrawal provision for active participants & usually tie to service. Attending "Pension Reform" mtgs, reading & research, IMHO, it comes down to: current Springfield legislators appear to have run out of future pension funding options and ideas, with the exception of using our property taxes as their ATM! What do school districts think of the affect that "Pension Reform" liability cost-shifting will have on their borrowing costs? With state aid already being severely reduced (est. $1B; 2009-2012), the affects of liability cost-shifting to Districts will not only increase borrowing costs, definitely increase our property taxes & also deeply eat into K-12 class budgets- not to mention curtail funds for other programs.Triple whammy.This issue cuts across all political lines! Pension Reform is about taking back IL for future generations who would like to call IL home. Change needs to start right here; in the 9th District with our freshman legislator who adamantly supports cost-shifting as well as a Progressive IL State Income Tax. Counterpoint to Mr.Biss' claim that all Springfield legislators are "idiots" (Sun Times), the taxpayers in the 9th District are not all idiots.

What I would love to see...no actually it is a dream since it will never happen, is a forensic investigation into the waste and fraud in Illinois state government. We would have to build a few prisons first.

@TakeBackIllinois

You must not know that you can tap your 401K at 55 without paying the 10% excise penalty. Here is the information from the IRS. Always happy to educate and I am not even a teacher.

http://www.irs.gov/retirement/sponsor/article/0,,id=151926,00.html
"Exceptions. The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances:
...
Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55.
..."

In essence you quit your job and retired when you turned 55.

Thanks, Dan! Good info. When I read your post, I made the assumption you were referring to an Active 401k Plan participant. I would be interested in knowing your position on the 9th District's freshman representative's idea of a Progressive Illinois Income Tax which he so adamantly supports, coming on the heels of the recent 67% state income tax hike. The out-of-touch Springfield legislators have conveniently kicked the Pension Reform political football down the field until after the November elections. Illinois voters need game-on now. I keep on thinking of the popular catch-phrase, "Your Fired!" We need to ALL vote for political change, fortitude and courage - and it needs to start right here in our 9th District with new leadership for the sake of our children's education, our great educators and small business owners which have made the communities comprising of the 9th District great! This is not Rhode Island, Springfield.

High Coat equals High Pension
Read the book "The Illinois Pension Scam" .Our schools are in the top 1 percent for cost. Yet in the lower 99 percent for performance.
The below link is for Highland Park High Schools report card.

http://webprod.isbe.net/ereportcard/publicsite/getReport.aspx?year=2011&code=3404911300002_e.pdf

Carl Lambrecht 847 432 8255, lambrecht@laurelindustries.com

Read the book "The Illinois Pension Scam" .Our schools are in the top 1 percent for cost. Yet in the lower 99 percent for performance.