11-20-2010, 09:13 PM
Why stop here? Why not eliminate all elected official pension programs? Can anyone here give a counterpoint to this article? I won't hold my breath. But it could generate some honest debate on this issue. Normally, people who register on a blog(forum)site participate by entering their personal point of view to the posted articles. Forget about your closely held political beliefs, for a moment, and think about what this issue really means. We have just reelected most(maybe all) of the creators of our current state fiscal situation. I want to acknowledge the teacher's union victory in our recent election. Your union supported the usual suspects. Do the majority of you agree with your union's political endorsements and campaign donations made, in your name? Even in my days as a local democrat, I thought that Mike Madigan was a corrupt, self-serving asshole. Now, your state pension fund is going into the crapper, courtesy of the political leadership that your money and membership supported. What comes around, goes around. Better start saving your money.
Do it Now: End the General Assembly Retirement System
Posted: November 16, 2010
By Craig Vinke
For generations Illinois has been a land of opportunity. We have been privileged to live in a state located at the crossroads of commerce as the wealthiest nation in history has grown and prospered.
A nationwide rail and highway transportation infrastructure was built. Illinois served as the hub of that system. Additionally, we were blessed with access to the shipping capabilities of the Great Lakes and great rivers. That access has given us access to markets all over the world.
We have all benefited from unprecedented economic growth. Illinois possesses other abundant natural resources. We have fertile farmland and a temperate climate. We have coal and other mineral resources. The opportunities available have attracted industrious and creative people to our state. Wealth has been created. Life has been good.
Illinois has changed. While all the favorable attributes still exist, we now face a monumental financial burden. It is a burden has been created by our irresponsible government. It is destroying the wealth that has been created through our own efforts and by the efforts of generations that preceded us. That financial burden harms us and it will deny opportunity to our children. It is simply, an abject failure of our state government.
For too long we have been abused by our elected state legislators, both Republicans and Democrats. While some elected officials have been honorable and served their constituents with distinction, many at best are blatant self serving influence peddlers. At worst, they often they have been effectively, unindicted corrupt criminals.
We have a total of 177 state legislators, 118 Representatives and 59 Senators. Each is paid an average of $80,000 each year to represent us. Some are paid more, some slightly less. For many, the elected position is a part time job. Many legislators hold other jobs. They are ministers, dentists, lawyers, businessmen; they may hold any variety of other occupations as they serve as elected officials.
They are supposed to be our elected representatives, public servants serving our interests. Instead they have transformed themselves into a self serving, elite aristocracy.
While the majority of Illinois residents would be envious of a full time job that paid half of that salary without other benefits from the legislator's part time job; however the salary they earn is only the beginning.
Most Illinois residents are struggling in a depressed economy and under the tax burden placed upon them. Consider your own situation compared to that of our state legislators.
In addition to their salary, Illinois Senators and Representatives earn full retirement benefits at age 55 with only 20 years of service in their part time job.
What does "full retirement benefits" mean?
Each legislator will be paid 85% of their final year salary as an elected official. Currently, that means 85% of $80,000. That amounts to $68,000 annually, more than twice the maximum social security benefit, a benefit that is not available to the rest of us until age 67.
While most taxpayers will still work for another 12 years and pay as much as much as 15.3% in payroll taxes, our retired legislators will receive $68,000 annually until age 60, at which time that annual payment will increase to over $80,000 annually.
They will then receive a 3% increase every year as long as they live. Unlike the wages you earn, that income will be entirely free of state income taxes. If they die, their surviving spouse is entitled to two thirds of that annual payment as long as they live. Legislators and their spouses also receive full health insurance at no cost to them.
For these benefits our state legislators have 11.5% deducted from their annual pay. At age 55 a legislator retiring this year would have contributed a total of $140,000 for these retirement benefits. At a six percent rate of return those contributions would have grown to around $250,000 at age 55. The difference in the benefits they receive and their own contributions will approach $3 million. That difference is borne by entirely by taxpayers of the state of Illinois.
To characterize the situation as abusive is an understatement. It is unconscionable.
It is time for the taxpayers of Illinois to demand better. There must be a relentless drumbeat from all of us to demand our legislators immediately to end the abuse of the Illinois taxpayer.
The General Assembly Retirement System must end immediately!
Everyone should immediately contact both their Illinois state senator and representative and demand this abuse end. If they refuse regardless of party affiliation they must be removed from office.
We face a budget deficit of $15 Billion. Spending must be cut drastically. Pension reform is the first step. This is the just the beginning. All abusive state pension plans must end. We must start with our elected officials. The $80,000 salary is more than enough for a part time job.
Our economy is in a shambles because of government irresponsibility. We cannot afford more taxes. That is not a solution. That will serve only to make the problem worse as people and business are forced to flee Illinois.
Contact everyone you know. Everyone must demand action. It is time our state legislators begin serving us, not themselves. If they refuse, let them step down. There are many competent people of good will and good intent willing to serve the people of Illinois that would be happy to replace them.
Do it now!
Do it Now: End the General Assembly Retirement System
Posted: November 16, 2010
By Craig Vinke
For generations Illinois has been a land of opportunity. We have been privileged to live in a state located at the crossroads of commerce as the wealthiest nation in history has grown and prospered.
A nationwide rail and highway transportation infrastructure was built. Illinois served as the hub of that system. Additionally, we were blessed with access to the shipping capabilities of the Great Lakes and great rivers. That access has given us access to markets all over the world.
We have all benefited from unprecedented economic growth. Illinois possesses other abundant natural resources. We have fertile farmland and a temperate climate. We have coal and other mineral resources. The opportunities available have attracted industrious and creative people to our state. Wealth has been created. Life has been good.
Illinois has changed. While all the favorable attributes still exist, we now face a monumental financial burden. It is a burden has been created by our irresponsible government. It is destroying the wealth that has been created through our own efforts and by the efforts of generations that preceded us. That financial burden harms us and it will deny opportunity to our children. It is simply, an abject failure of our state government.
For too long we have been abused by our elected state legislators, both Republicans and Democrats. While some elected officials have been honorable and served their constituents with distinction, many at best are blatant self serving influence peddlers. At worst, they often they have been effectively, unindicted corrupt criminals.
We have a total of 177 state legislators, 118 Representatives and 59 Senators. Each is paid an average of $80,000 each year to represent us. Some are paid more, some slightly less. For many, the elected position is a part time job. Many legislators hold other jobs. They are ministers, dentists, lawyers, businessmen; they may hold any variety of other occupations as they serve as elected officials.
They are supposed to be our elected representatives, public servants serving our interests. Instead they have transformed themselves into a self serving, elite aristocracy.
While the majority of Illinois residents would be envious of a full time job that paid half of that salary without other benefits from the legislator's part time job; however the salary they earn is only the beginning.
Most Illinois residents are struggling in a depressed economy and under the tax burden placed upon them. Consider your own situation compared to that of our state legislators.
In addition to their salary, Illinois Senators and Representatives earn full retirement benefits at age 55 with only 20 years of service in their part time job.
What does "full retirement benefits" mean?
Each legislator will be paid 85% of their final year salary as an elected official. Currently, that means 85% of $80,000. That amounts to $68,000 annually, more than twice the maximum social security benefit, a benefit that is not available to the rest of us until age 67.
While most taxpayers will still work for another 12 years and pay as much as much as 15.3% in payroll taxes, our retired legislators will receive $68,000 annually until age 60, at which time that annual payment will increase to over $80,000 annually.
They will then receive a 3% increase every year as long as they live. Unlike the wages you earn, that income will be entirely free of state income taxes. If they die, their surviving spouse is entitled to two thirds of that annual payment as long as they live. Legislators and their spouses also receive full health insurance at no cost to them.
For these benefits our state legislators have 11.5% deducted from their annual pay. At age 55 a legislator retiring this year would have contributed a total of $140,000 for these retirement benefits. At a six percent rate of return those contributions would have grown to around $250,000 at age 55. The difference in the benefits they receive and their own contributions will approach $3 million. That difference is borne by entirely by taxpayers of the state of Illinois.
To characterize the situation as abusive is an understatement. It is unconscionable.
It is time for the taxpayers of Illinois to demand better. There must be a relentless drumbeat from all of us to demand our legislators immediately to end the abuse of the Illinois taxpayer.
The General Assembly Retirement System must end immediately!
Everyone should immediately contact both their Illinois state senator and representative and demand this abuse end. If they refuse regardless of party affiliation they must be removed from office.
We face a budget deficit of $15 Billion. Spending must be cut drastically. Pension reform is the first step. This is the just the beginning. All abusive state pension plans must end. We must start with our elected officials. The $80,000 salary is more than enough for a part time job.
Our economy is in a shambles because of government irresponsibility. We cannot afford more taxes. That is not a solution. That will serve only to make the problem worse as people and business are forced to flee Illinois.
Contact everyone you know. Everyone must demand action. It is time our state legislators begin serving us, not themselves. If they refuse, let them step down. There are many competent people of good will and good intent willing to serve the people of Illinois that would be happy to replace them.
Do it now!