What counts as 'earned' for pensions divides 41st House hopefuls
The Illinois Constitution protects participants in state pension systems from having benefits cut once they are earned.
But do future annual 3 percent cost of living adjustments that compound each year count as already earned?
Candidates for state House in the 41st District disagree, and the distinction shapes their opposite views on pension reform.
Republican Grant Wehrli says future automatic increases do not count as already having been earned because pension participants can know what their pay is today, but it's illogical to assume what it will be years from now.
"We have to honor pensions to a certain extent, and what I mean by a certain extent is the Illinois constitution has the 'shall not be diminished, once earned shall not be diminished' clause in it. And I'm sorry, but a 3 percent COLA (cost of living adjustment), in the year 2027, is not yet earned," said Wehrli, a 45-year-old sales and business consultant who sits on the Naperville City Council. "We can change that."
But Democrat Ed Agustin says annual cost of living adjustments are part of the "promise" the state made to employees in pension systems, so they do count as earned and cannot be diminished.
"I was raised, you don't break your promises. The people in Tier 1 are due the money that they've been promised," said Agustin, a 70-year-old retired architect from Naperville. "The money needs to be found to pay for these pensions."
Wehrli said he thinks compromise can be found to provide a comfortable retirement for teachers, police officers and firefighters while creating a pension system the state actually can pay for. Removing the automatic yearly increases for people receiving pensions would be a good place to start, he said.
"I'm not here to cast more blame. I want to fix the problem ... so what do we do to fix it? We get rid of the 3 percent COLA," he said. "The 3 percent compounding COLA is one of the major driving factors of the unsustainable side of the pension equation."
Agustin said changes need to be made to the benefits of employees who join the state pension systems later instead of those already enrolled.
"The obligation needs to be met. But yes, change needs to be made for future participants in the programs so that this lavish growth every year isn't part of the program automatically," Agustin said. "Let the people going in know that they're not going to be getting these automatic raises and COLAs like the earlier members had because the state can't afford it."
Agustin and Wehrli are running in the Nov. 4 election for the open 41st District seat to be vacated by Darlene Senger, who is running for U.S. Congress in the 11th District.