Naperville may seek voter input on pension reform

Naperville is considering an advisory referendum proposal to ask voters if state lawmakers should reform the police and fire pension system.

The question could appear on the November ballot along with a separate proposal to adopt term limits for the city's elected officials.

"We have expressed in the past that the current pension issue is unsustainable and we want to make sure the public agrees the state needs to ... make the changes necessary to ensure the city can fund ... the pensions," Councilman Kenn Miller said Thursday.

However, the head of the city's police pension fund argues the benefits are not to blame and the city needs to fulfill its obligation.

Pension reform is the city's only legislative priority this year. While state lawmakers in the spring made changes to the system for many public employees who are newly hired, they left out police officers and firefighters.

Naperville officials say their required contribution for firefighter pensions increased by about $1.4 million or 42.1 percent over the past two years while their required contribution for police during that time increased about $1.5 million or 46.8 percent.

The city attributes the increases to investment losses, wage increases and benefit increases mandated by law.

Police officers and firefighters are on a pension system that provides guaranteed benefits. In Naperville, they contribute slightly less than 10 percent of their salary to their pension and are eligible for a maximum of 75 percent of their salary if they reach 30 years of service.

In March, the city joined the Pension Fairness for Illinois Communities Coalition to push for change. Now, it is considering putting the issue on the Nov. 2 ballot.

The question would be an advisory referendum, meaning it does not change any laws. Officials say they hope a positive response would persuade state lawmakers to take up the matter when they return in November.

Donald Bisch, president of the Naperville Police Pension Fund, criticized the city Thursday, saying it is not being honest about how it got into pension trouble to begin with.

Bisch said municipalities pushed for a 1993 state law that allowed them to make smaller contributions to the pension system and larger contributions down the road.

"Now they want to change the law back again and demonize police and firemen as if benefits are causing the problem," he said.

Miller said that doesn't change the need to fix the problem.

"You can't just put your head in the sand and say well we're going to have to tax the taxpayer significantly going forward just because someone made a mistake in the past ... you have to do whatever you can to correct it," he said.

City staff members would like to see reforms similar to those for other public employees - caps on final average salary calculations, reduced cost of living adjustments and increased retirement age.

Bisch argued reforms likely would be made for new hires and therefore would not significantly change the amount the city owes. He also said raising the retirement age would make it more likely aging officers would be injured on the job.

The city council will discuss the possibility of a referendum when it meets at 7 p.m. Tuesday at the municipal center, 400 S. Eagle St. It also will be deciding whether to place a referendum on the ballot asking residents if they favor term limits for the city's elected officials.