9 ways to fix pension crisis

The multitude of state, municipal, police, fire, teacher, etc. underfunded pension plans is adversely affecting the state's financial situation. The pension funds are underfunded by billions of dollars.

What is the solution? Increasing taxes? I believe it would be nonsensical to ask the taxpayers of Illinois to bail out a poorly managed and abused system. I would like to offer some suggestions.

• The state should review the calculations of individual pension payments to determine accuracy. Those that have gamed the system to develop inflated pensions should be required to pay back the excess amounts and new pension payments calculated at the new and proper reduced rate.

• Reduce or eliminate the automatic annual cost of living increases.

• Require each employee to increase their percent of contributions by 5 to 10 percent.

• Increase the retirement age to 65, possibly age 60 for police and firefighters.

• Eliminate double dipping. If a retiree returns to work for a governmental unit then their pension should be reduced by the amount of their earnings.

• Base pension payment calculations on an individual's final 10-year average earnings.

• Set up a standard operating procedure for pension programs that all government units in the state are required to follow.

• Eliminate the thousands of pension boards throughout the state and replace them with a state board composed of at least 10 financially qualified individuals. When board members quit or their terms expire, they should be restricted for a set period of time from working or lobbying for any companies involved with investing pension fund monies.

• Eliminate pension plans for all new hires and replace with 401(k) programs and Social Security.

Ron Fuchs

St. Charles