A case study in flaws of Illinois taxes, pensions

The article in the May 22 Daily Herald is a good example of why our real estate taxes are so high and why the state of Illinois is so much in debt on pensions.

A 49-year-old high school principal in Lake County announced his retirement and currently receives an annual salary of $202,632. He will retire at the end of the 2024-2025 school year. Therefore, he will be 55 years old when he retires.

Per the district retirement policies, his salary will be gradually bumped up by 3% per year to $249,052. After he retires at age 55, his pension benefit will be 85%% of his salary which equals 85% x $249, 052 = $211,694. After that, his retirement benefit will increase by 3% per year. After he retires and gets his pension, he can go into teaching. Therefore, he would be a double dipper and receive a pension and salary and probably a second pension.

First of all, he can retire at age 55 and get a full pension. Today's common Joe gets no retirement. He gets his 401(k) and Social Security, which he pays into both. Also, he needs to work until age 67 to get his full Social Security which is nowhere near 85%.

Second, the common Joe does not get this 3% salary bump for 6 years before retirement and his retirement benefit does not increase 3% per year.

What is the governor's answer to this inequity to the common Joe? His answer is to raise taxes.

Note: This letter is not saying anything bad about the retiring principal; he is just following the outrageous policies and retirement clause in the Illinois Constitution.

Chet Lis

Vernon Hills