Jim Tobin Takes Jim Thompson to Task for Pension

A press release from Taxpayers United of America:

Former Gov. James R. Thompson Lives Lavishly as Social Security Recipients Struggle

Jim Tobin

Jim Tobin

CHICAGO—Former Illinois Governor James R. Thompson, who in 1983 and 1989 engineered raising Illinois’ state personal and corporate income tax rates by 20 percent, will receive a generous increase to his lavish, gold-plated state pension on July 1, 2016, while Illinois residents on Social Security government pensions will see negligible increases to their own benefits next year.

Thompson’s annual pension as of 2016 is $147,477.

On July 1, his annual cost-of-living increase of 3% will boost his annual government pension by $4,424.

Compare those figures to Social Security recipients, whose cost-of-living increase of two-tenths of one percent for 2017 was just recently announced.

For those receiving a Social Security pension of $1,000 a month, that cost-of-living increase amounts to only $24 annually, or nearly one-hundred eight-five times less than that of Thompson.

“It is obscene that tax-raiser Thompson is pulling in millions of dollars from the essentially bankrupt state pension fund, while retirees on Social Security pensions, whose earnings were taxed to prop-up his state pension fund, must get by with an increase of $2 or $3 a month in 2017,” said Jim Tobin, President of Taxpayers United of America (TUA).

Under Thompson, the state personal income tax was raised from 2.5% to 3%, and the state corporate income tax to 7.3%, including the 2.5% personal property replacement-tax surcharge.

“This is an example of how corrupt the Illinois government is and has always been,” said Tobin.

“Thompson, who retired at age 55, and who has contributed only $84,996 to his pension plan, already has collected $2.5 million to date, and his estimated lifetime pension payout is $3.38 million.

“He should be ashamed, Social Security pensioners and taxpayers alike should demand immediate reform.”

To understand the tax burden Illinois taxpayers face due to unfunded government pension liabilities, see TUA’s 10th Annual Illinois State Pensions Report.


Comments

Jim Tobin Takes Jim Thompson to Task for Pension — 7 Comments

  1. Jim Thompson and Jack Franks have something in common.

    Both are pension benefit hikers.

    While pensions were already underfunded.

    Akin to carrying a balance on a credit card yet charging more.

    Not being able to pay off the monthly balance on a credit card results in interest payments.

    Pensions have a similar concept with investment returns.

    If the pension is not 100% funded, investment returns are less.

    Taxpayers make up that difference.

    And here we are with hiked taxes of all sorts due to pensions which were hiked by hiking the benefits and hiking the salaries.

    Most pension benefit hikes were underfunded.

    Most pensions benefit hikes and salary hikes happened when the pension funds were underfunded.

    The Illinois Pension Scam.

    The biggest fiscal problem in the state of Illinois.

  2. Unless you are going after Tryon and Althoff- this argument has no weight.

  3. How many house boys does Big Jim have these days?

    Don’t they have to be kept in clover by their aged Sugar Daddy!!!???

  4. Tryon is retiring and Althoff needs to stop the Pension as well.

    However, Jack is running for County Board Chairman.

    He will be pulling in a pension and getting another 80k but closer to 100k with benefits from the taxpayers.

    So he will be making 150k+ off of the taxpayers if he wins.

    f course why wouldn’t he want to run for that office.

    He could have just ran as a County Board Member but he wants the power grab!

  5. Legislative pension and retiree healthcare benefit hikes weigh Franks down like an anchor.

    Claiming no tax hikes while voting for pension and retiree healthcare benefit hikes is preposterous.

    Most pension and retiree healthcare benefit hikes being underfunded or unfunded.

    Most pension and retiree healthcare systems at the time of the hikes being underfunded or unfunded.

    It gets better.

    One sentence added to the Illinois State Constitution on December 15, 1970, has been interpreted by the Illinois Supreme Court to mean that all such legislative pension and retiree healthcare benefit hikes are contractual and cannot be diminished or impaired.

    Irregardless if the hikes were underfunded or unfunded.

    Irregardless if the pension or retiree healthcare system at the time of the hike was underfunded or unfunded.

    That’s the Illinois Pension Scam and Franks is part of the tax hiking scheme which puts a tax ball and chain on taxpayers.

  6. Worst part about most Republican is once in power, like Big Jim, they are sometimes more fiscally irresponsible than the Dem.

    The Dem are more honest about wasting $$$$ than the Rep.
    Yamon!

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