Tag: Riverbender

Suburban Residents Risk Losing Homes Over Rising Pension Costs

Mary Pat Campbell

Link: https://www.riverbender.com/articles/details/suburban-residents-risk-losing-homes-over-rising-pension-costs-52884.cfm

Excerpt:

In the 1990s, Illinois property tax bills were around the national average. But in the two decades from 1999 to 2019, we’ve seen a massive 65% increase in residential property taxes, adjusted for inflation. That increase is what drove Illinois to have one of the highest tax burdens in the nation.

The source of Patricia’s – and her fellow Illinoisans’ – property tax pains? Public employee pensions.

More than 70% of Patricia’s property tax bill goes to the school district. While school districts account for a significant portion of property tax bills in localities across the United States, school district budgets across Chicago and Illinois are getting devoured by underwater pension systems.

While the state is responsible for paying employer pension costs for teachers outside of Chicago, rising pension obligations mean more state dollars are spent on pensions, leaving more classroom costs for school districts to fund through property taxes.

Author(s): Amy Korte

Publication Date: 5 September 2021

Publication Site: Riverbender

Gov. Pritzker Signs Firefighter’s Pensions Reform Legislation Codifying Benefits

Mary Pat Campbell

Link: https://www.riverbender.com/articles/details/gov-pritzker-signs-firefighters-pensions-reform-legislation-codifying-benefits-49231.cfm

Excerpt:

HB 2451 addresses disparate pension benefits among Chicago firefighters. Currently, employees eligible for a pension in the Firemen’s Annuity and Benefit Fund of Chicago (FABF) who were born after January 1, 1966 are granted a 1.5 percent COLA. However, firefighters who may have started on the force the same day, may unfairly receive different benefits based on their dates of birth. The legislation addresses this discrepancy by adjusting the COLA for these firefighters from 1.5 percent to 3 percent.

The legislation eliminates the 30 percent cap on cumulative COLA adjustments. For employees eligible for a 1.5 percent COLA, they would have hit the cap at 20 years. The reforms made in this legislation provides firefighters the ability to plan for themselves and their families.

HB 2451 is effective immediately.

Publication Date: 5 April 2021

Publication Site: Riverbender

State Rep. Elik Keeps Promise By Rejecting The Lawmaker Pension

Mary Pat Campbell

Link: https://www.riverbender.com/articles/details/state-rep-elik-keeps-promise-by-rejecting-the-lawmaker-pension-47705.cfm

Excerpt:

State Representative Amy Elik (R-Fosterburg) kept her promise to Metro East taxpayers by rejecting the lawmaker pension. The pension benefit is available to all lawmakers serving in the part-time legislature.

“I refused the taxpayer-funded pension because the state can’t afford to offer this lavish benefit to lawmakers anymore,” said Rep. Elik. “The pension offered to lawmakers is swimming in debt with over $314 million in unfunded liabilities. By rejecting the pension, I am reducing the debt forced onto Illinois taxpayers.”

Publication Date: 8 February 2021

Publication Site: Riverbender