Pension crisis persists

Our governor is now threatening major cuts to Illinois residents and schools since his so-called Fair Tax failed. What he and our legislators fail to address is the Illinois pension plan that is simply not financially sustainable. While there are a number of issues that need to be addressed, the primary one is the annual 3% increase, compounded year after year.

I retired 23 years ago from a local utility. Utilities historically have been known for their generous benefit plans when compared to other industries. Our plan included a modest cost of living provision (triggered by the inflation index) which is not common in private industry. After being retired for 23 years, my pension has increased by 4.8% and still provides me with a modest, but adequate living style.

If I had retired under the state formula, my pension would now be double the original amount and I would have exceeded my final rate of pay at retirement seven years ago. That is probably typical of what is happening with folks who retire under the state formula. Another example is our former governor who sponsored and signed this legislation. He currently receives a reported annual taxpayer-funded income of over $300,000.

Many, if not most, corporations no longer offer the traditional defined benefit plan as the government bodies do. They don't have the backs of taxpayers to finance the costs.

Illinois will never resolve its financial deficit issues until it addresses this pension crisis. The only other solutions are higher taxes or bankruptcy.

Robert Van Ham

Aurora