Cops, firefighters should have different pensions
I just recently learned that Illinois taxpayers fund five different retirement programs for state employees: State Employees Retirement System; Judges Retirement System; General Assembly Retirement System; Teachers Retirement System; and State Universities Retirement System.
We all know the sorry financial mess Illinois is in, our pension system being a huge part of the problem. Just as many other states have been forced to reform their pension systems, Illinois must also reform our current state employee retirement plans.
Our 2011 state budget has a single year deficit of $12 billion. Of that total, $7 billion is directly related to state employee retiree benefits. Eventually, we must pay that bill.
While some in Illinois say we should raise taxes on the state’s already overtaxed citizens, pension reform would go a long way to solve the problem.
Unfortunately, Springfield has already waited too long for reform to be easy, and our legislators need to have the courage to face up to the difficult task of pension reform now.
There a several good ideas being considered which the legislature is aware of: Giving current employees the choice of a defined contribution plan, the reformed defined benefit plan that was enacted in the spring of 2010, or the current defined contribution plan; giving new employees the same choice; setting future state contributions at half of “normal cost,” with employees paying any additional costs; changing the minimum retirement age from 55 to 65 years of age.
This approach seems like it will work, though I think that, like federal Social Security, reduced benefits should be available at age 62.
Also, pensions for firefighters and police officers should be treated differently, as those in this profession put their lives on the line every day. Their pension system should be separate from any others and be fully funded, with no contribution from the firefighter or police officer.
Enacting these reforms will save several billion dollars per year. We need real budget reforms now, and as a voter I will be watching how my state senator and state representative vote on this critical issue.
Mark Cramer
Hoffman Estates