What is the Effect of Having Taxpayers Pick Up Teachers’ Pension Payment, plus the Employers’ Side?

Larry Snow

Larry Snow

The Daily Herald has figured out what the late former Huntley School Board member Larry Snow discovered in May two years ago.

Taxpayers pick up the bulk, if not all, of the teachers’ side of pension payments to the Illinois Downstate Teachers Retirement Fund throughout the suburbs.

Jake Griffin poses the question:

“Does it matter if districts cover teacher contributions?”

He concludes, “It turns out total compensation for suburban teachers who receive this benefit is about the same as for those who don’t, an analysis of salaries shows.”

As one school administrator puts it, the taxpayer-paid pension payment is “in lieu” of salary.

However, the article notes, “‘There is a small tax advantage if the contribution is covered by the district,’ said Dave Urbanek, a TRS spokesman.”


Comments

What is the Effect of Having Taxpayers Pick Up Teachers’ Pension Payment, plus the Employers’ Side? — 1 Comment

  1. Does Social Security allow the employer to “pick up” the employees portion of social security contribution?

    No.

    The TRS rules allowing the practice should be eliminated.

    Who creates TRS rules?

    The rules that have resulted in the underfunded pension?

    The rules that resulted in ever increasing state contributions?

    State Senators, State Representatives, and Governors in exchange for campaign contributions and votes.

    If the TRS rules hadn’t been changed, TRS wouldn’t be underfunded today.

    Teacher unions keep saying the state didn’t make it’s payment.

    Teacher unions don’t say the state would have been able to make its payment if the TRS rules weren’t changed.

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