Rauner Talks Pension Reform

A press release from Governor Bruce Rauner:

Governor Rauner Statement on Pension Reform Legislation

CHICAGO – The following statement can be attributed to Lance Trover, communications director for the Governor’s Office:

“Administration lawyers have spent weeks negotiating the best possible pension reform language with members of Senator Cullerton’s staff.

“Central to the Cullerton model is that future salary increases are part of the employee election, and that to ensure the proposal passes Constitutional muster current law must be changed to make the employee’s election permanent. On that core principal, the Governor’s legal team and the President’s legal team have agreed, and this is the model that the Governor and Republican leaders endorsed today.

“We hope the Senate President still supports this agreed upon model, originally developed by his office. If he no longer supports it, we urge him to immediately introduce new pension reform legislation that he thinks will be approved by the Supreme Court, and the governor will be open to considering it. Now is the time to act.”

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The Tribune says Cullerton immediately denied the agreement.


Rauner Talks Pension Reform — 6 Comments

  1. Whatever the proposal you can be sure there will be a lot of back and forth, he said, she said.


    As far as the Rauner press release.

    It does not define “employee election.”

    Here is what it seems they are talking about, or something along these lines.

    Right now two big problems with pensions are that salary hikes, and 3% COLA, cause overly generous pensions.

    So the reform is to choose one, but you can’t have both.

    And furthermore it’s the choice of each individual employee, not the union.

    What are the unions going to say.

    1. That diminishes pensions.

    2. That’s an attack on collective bargaining (individual choice vs collective choice).

    So you can be sure someone will sue.

    In more detail.

    If you choose to freeze salary hikes, you would still get salary hikes for take home pay, it’s just the salary hikes would not be used to determine starting pension. Instead salary for starting pension calculating purposes would be frozen, and that frozen salary would be used for calculating starting pension. With this choice you would get the 3% COLA in retirement.

    The other choice is salary hikes remain to be used for calculating starting pension, but once in retirement, there is no COLA (or a reduced COLA).


    Rauner does not want all charter schools and to privatize everything, where is that evidence, and Rauner’s name is not even in the SourceWatch URL.

    The SourceWatch list of politicians in Illinois with ties to ALEC is massively shorter than politicians who receive campaign contributions, votes and election assistance from public sector unions in Illinois.

    The public sector unions force public sector employees to contribute agency fees aka fair share fees aka forced fees aka mandatory condition of employment fees, to the union.

    Fees which might be outlawed if Friedrich’s wins the US Supreme Court case in Friedrich’s vs California Teachers Association.


    Rauner is for more educational choices for students and so are a lot of other people, but along the lines of education reform, not eliminating public schools.

    Talk to some parents and kids who don’t like the school they are forced to attend, and they don’t have the money to send their kid anywhere else, the money is tied up in taxes which go to the school irregardless if the parent sends the kid to another school.

    That’s a monopoly to the detriment of the kids education and there are a lot of people fed up with that system.


    Since there was an injustice to taxpayers, a flat out scam by legislatively hiking pension benefits while pensions were underfunded, the best choice is to repeal the pension sentence.

    The pension sentence which protects the benefit hikes to underfunded pensions.

    Repeal the injustice.


  2. Here is some more information on the Rauner proposal and Illinois Policy Institute ideas on reforming pensions.

    Illinois Policy Institute
    Rauner Making Moves on Pension Reform
    January 21, 2016
    by Ted Dabrowski

    Illinois Policy Institute
    Illinois Pensions: What You Need to Know
    January 21, 2016
    (URL’s to 11 articles as indicated below)

    1. Illinois Policy Institute
    Solving Illinois’ Pension Crisis – Actuarial analysis offers options to transition to a defined-contribution retirement plan
    May 2015
    by Benjamin VanMetre, Ted Dabrowski
    32 pages

    2. Illinois Policy Institute
    5 reasons Illinois government-worker pensions are unfair to taxpayers
    by Ted Dabrowski & John Klingner
    December 9, 2015

    3. Illinois Policy Institute
    7 pension reforms that Illinois can still enact despite the SB1 ruling
    by Ted Dabrowski & John Klingner
    November 6, 2015

    4. Illinois Policy Institute
    Illinois’ unfunded pension liability has increased by $13 million per day since 1996
    by Benjamin VanMetre
    May 14, 2015

    5. Illinois Policy Institute
    IL taxpayers overpaid for pensions by more than $16B under original Edgar ramp
    by Benjamin VanMetre
    May 13, 2015

    6. Illinois Policy Institute
    More than 12,000 Illinois government retirees receive annual pensions over $100,000
    by Ted Dabrowski & John Klingner
    January 3, 2015

    7. Illinois Policy Institute
    Pension costs consume 90 cents of every tax-hike dollar
    by Benjamin VanMetre
    March 11, 2015

    8. Illinois Policy Institute
    Who says Illinois’ state workers don’t get Social Security?
    by Benjamin VanMetre
    May 18, 2015

    9. Illinois Policy Institute
    Illinoisans pay 2.5 times for their politicians
    by Ted Dabrowski & John Klingner
    January 4, 2016

    10. Illinois Policy Institute
    Why won’t Illinois lawmakers reform their own pensions?
    by Ted Dabrowski & John Klingner
    July 27, 2015

    11. Illinois Policy Institute
    64 percent of Illinois school districts pick up pension contributions for teachers
    by Benjamin VanMetre
    May 23, 2015


    Remember according to the Illinois state constitution:

    1. A pension is a promise by taxpayers.

    2. A legislative pension benefit hike is a promise by taxpayers.

    3. A legislative pension benefit hike to underfunded pensions is a promise by taxpayers.

    4. Unlimited legislative pension benefit hikes to underfunded pensions is a promise by taxpayers.

    5. Unlimited legislative pension benefit hikes while pensions are underfunded an unlimited amount is a promise by taxpayers.

    6. Unlimited unused sick days exchanged for years of service credit while pensions are underfunded an unlimited amount is a promise by taxpayers.

    7. Unlimited salary hikes which hike pensions an unlimited amount while pensions are underfunded an unlimited amount is a promise by taxpayers.

    8. There are 20 public sector pension systems in Illinois, each with unlimited pension benefit hikes while each is underfunded an unlimited amount is a promise by taxpayers.

    9. There’s a sucker born every minute.

  3. Those lucky enough to have a pension should stop being so damn selfish.

    We need to stop agreeing to pay lavish pensions we cannot afford.

    It would probably be more cost effective to just implement a pension policy that says, you get this flat amount a year as pension regardless of how much you are paid…

    And be sued for it.

    Rather than keep paying these outrageous pensions.

    Pensions need to stop and other retirement options should be offered.

  4. As long as politically connected bankers will lend to the state, the lavish pensions will continue unabated.

    Default on those bonds and watch the banks enforce fiscal responsibility.

  5. All that lawyer time and money on ‘language’?

    How’s this Cullerton?

    Convert to 401K’s what they’ve actually paid in, or get nothing!

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