Illinois institutes two-tier pension system for state workers, teachers, wants more blood too

Sweeping, radical change to the state's pension systems finally came to Illinois on Wednesday, an important first step toward pulling the state back from the brink of bankruptcy.

With unexpected speed, the House and Senate passed legislation that creates a two-tier pension system estimated to save the state up to $150 billion over 35 years. It features a new retirement age of 67 and significantly lowers pension benefits for most newly hired government workers, including teachers, university employees, legislators, state employees and municipal workers across the state. Gov. Quinn says he supports the bill...

It caps the salary from which pensions are calculated, lowers annual cost-of-living increases and prevents retirees from getting a pension if they take another government job. We don't think current benefits are grossly excessive -- 78 percent of state retirees don't even get Social Security -- but the state can't afford these benefits any longer...We don't think all employees should wait until 67 to retire. Is that really the right age for a kindergarten teacher...? The bill exempts the financially weak pension systems for police officers and firefighters, which we think is a mistake.

http://m.suntimes.com/suntimes/db_45566/contentdetail.htm;jsessionid=51113144C9E5906FB8BBF1FDDB14EBA0?contentguid=YRFex3Vi&detailindex=0&pn=0&ps=2&full=true


Two-tier pensions, like the auto corps...part of the global assault on labor.

Where were the unions?

In less than 48 hours a bill got through committee, passed the House, passed the Senate and went to the governor for his signature. Faster than Jesse James could say, “This is a hold-up,” future teachers’ retirement money was gone.

The bill will mean that anybody who enters the teaching profession in Illinois will have their pension gutted: They will have to work until they’re 67, will have their creditable earnings capped and will have their Cost of Living adjustments reduced.

What about my union leadership? What exactly are they about?

Our union’s position has always been “just say no” when it comes to a two-tier pension plan. A month ago the IEA’s Board of Directors, made up of Region Chairs from around the state, split down the middle when Ken Swanson and the lobbyists asked for a change in that position. Student IEA leaders, representing those who will pay most dearly for the double-dealing in the General Assembly, pleaded that the IEA not change its “just say no” stand. But Swanson and the lobbyists went to the RA and demanded a change. “We have to be at the table,” Swanson and the lobbyists explained, refusing even to recognize opposition from the floor.

Well, we got to the table alright. As the first course!

http://preaprez.wordpress.com/2010/03/25/hey-kid-wanna-be-a-teacher-screw-you/

...minimum age of retirement for teachers raised, per-year penalty for early retirement raised to 7%...

I'm 52 and if I'm laid off this fall, as I expect, my pension, after 21 years, is a little over $6000 a year.

Won't be many on it for a while, it would seem...K&R

:shrug:

We're too far down the rabbit hole now and we are not about to be allowed to stop this plunge.

blind leading the blind, the sighted have no voice...

but let's help the Cubs get a new stadium! Let's give the wealthy and corporate bloodsuckers another break! Minimum wage hospitatlity industry jobs don't need education.

Really... corporations get a tax deduction for filing their taxes. We get 35-40 students/class and a 5-10% pay cut.