Keeping facts straight on teacher pensions

Greg Stimpson's May 30 comments on Christine Eggert's May 22 letter regarding teacher pensions requires a few corrections.

First, he implied that teachers' personal pension contributions were their only contributions for funding their pension. Who pays for their pension? Teacher contributions, including those of still-working teachers, account for 13 percent of their pension.

School districts account for 2.5 percent. The state is legally obligated to contribute 30.5 percent. The remaining 54 percent is to be provided by investment earnings over the years - assuming that all parties keep up with their share.

He also mentions the 1 percent Social Security COLA, comparing it to their 3 percent teacher's pension COLA. Social Security began including COLAs in 1975, determining their size each year to the rise in the cost-of-living, of course. In the 40 years that followed, these COLAs have averaged 3.93 percent, not 1 percent.

Next, he mentions the free medical insurance that retired teachers enjoy. A few local districts gave limited medical insurance financial support to retirees for a period of time. There is no such statewide program for retired teachers, who in fact pay monthly premiums that compare to market rates.

Finally, he is totally confused on the income tax requirements for retired teachers. No residents of Illinois pay state income tax on retirement income (Social Security benefits, teacher pensions, private pensions, IRA distributions, etc). Like most of us, retired teachers do, however, pay federal income tax on their pension income, at the same IRS rates applicable to workers' incomes.

The original writer's real point is that as a teacher, she entered into an agreement with our state and the state tried to reduce her pension benefits that are guaranteed by the state constitution. Regardless of who pays what amount, a deal is a deal.

Bruce Illingworth

Prospect Hts