2013 State Pensions: 9,954 over $100,000 Up 30% from 2012. Top 100 Average $242,000 – Ninety-nine are Educators.

Note: See Top 100 table in separate post titled: Top 100 State Pensions 2013.

10 Amazing Facts about Illinois State Pensions:

 1. Based upon current rules more than 25,000 public employees will have $100K plus pensions by 2020.

2. Every one of these 9,954 public “Servants” is a taxpayer funded multi-millionaire.
A $100,000 pension at age 55 will pay out $4.7 million in cash over the normal life expectancy of a 55-year old including the 3% Cost-of-Living-Allowance built into the pension law.

3. Illinois taxpayers on the hook for at least $750 billion Dollars in taxes to pay for state pensions and retiree health care thru 2045.
That’s about $136,000 per Illinois household over next 35 years. That’s $136,000 of your money for other people’s retirement, money you will not have available for your own retirement.

4. Top 100 average pension is over $242,000/yr.

5. Every one of the Top 100 pensions is greater than Presidential pensions.

6. Top 100 SURS retirees in 2013 average 29 years worked, $233,000 pension.
Compare that to 44 years to retire with the $27,876 maximum Social Security pension.

7. One SURS employee worked 5 years, received $130,000 pension. See here.

8. Top three pensions of $439,672, $429,150 and $408,852 exceed president Obama’s salary of $400,000.

9. Three “Public Servants” pull down pensions of more than $400,000.

 10. More than 40 retirees have pensions greater than $100,000 after working less than 20 years.

Should part-time public employees and those with abbreviated careers get 6-figure pensions from taxpayers?

 Pension reform must include all 970,000 current members, not just future members.

Just lowering pensions of future employees leaves $100’s of billions of excess pension taxes to be paid on current members by Illinois hard-pressed taxpayers.

 

Taxpayers should not have to make millionaires out of part-time employees.

If we define “full-time employee” as someone who works 12 months a year for at least 40 years, then only 2% of all those who have $100,000 pensions meet that definition. Compare that with 45 full time years to get $30,156 max Social Security at age 66.

The Unsustainable Must Be Made Sustainable: Social Security and 401K For All Public Employees, COLA suspension and taxing pensions must have first steps.

Illinois provides a great example of how public sector workers retire earlier and with greater pensions than private sector workers. Why should public sector employees pay 8% to retire with a superior pension at age 55 when private sector employees pay 11% (Soc. Sec. + 401K) to retire with an inferior pension at age 66?

The excessive tax burden placed on the private sector worker requires him to work longer and accept less in retirement benefits. This is an inherently unfair and unsustainable approach and must be rectified to the benefit of the private sector worker.

Social Security and 401K for all workers, public and private is the only fair answer.

1 Comment

  • Wolf says:

    The Public Sector Pension System is an outright fraud on the taxpayers. It starts with the Public Sector Labor Agreements where in the final years prior to retirement there is a 6% raise beyond the normal raises that generally inflates the final salary by 40%. Since the pension is a defined pension plan based on 85% of the highest salary including bonuses, it is clear the intent here. The pensions are based on a 7.75% or higher return rate with no downside risk for the recipients on these high risk investments except the taxpayers who have to pay multiple times for the normal market shortfall for these exorbitant, high risk plans. But the real kicker is that there should never be a payout above $44K annually based on the contributions levels and a conservative investment strategy for a pension plan. Yet as we see today these pensions are multi-million dollar packages plus rich COLAs in the 4% per year area. Clearly the rape and robbery of the taxpayers here is at epic levels even on top of the already 50% over staffing and compensation levels throughout the entire Public Sector. This is the #1 reason why the nation, states and municipalities are bankrupt even with the oppressive taxation levels. In fact today the Public Sector operations headcount absorbs such a high percentage of the tax revenues that the basic services for the taxpayers cannot be provided. Unless there is major restructuring and reform of the massive fraud here in the Public Sector, the impending bankruptcy and default of the nation, states and municipalities is assured and the destruction of the economy will continue at an accelerated pace.

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