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Facinating story about the state of the IL teachers retirement fund

Discussion in 'The Okie Corral' started by Mr981, Sep 20, 2012.

  1. Mr981

    Mr981

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    Apparently, it's been under funded for quite a while and will likely go bust in the not so distant future.

    http://www.cnbc.com/id/49091211

    The city gets a pass on contributing and no downside? Since this is paid via the revenue of property taxes, there's a real problem in getting more money. The fix is cutting staff which means the class sizes go way up. What a mess..
     
  2. Dennis in MA

    Dennis in MA Get off my lawn

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    Part of my 5.3% income tax goes to paying muni pensions in this state. You can't give someon 80% pension at 60 for 8% employee contribution per year.

    They gave them a raise 2-3 years ago. :upeyes:
     

  3. Glock1963

    Glock1963

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    Did you see the part where they talk about the state pension system that's a bigger mess than the Chicago teachers' pension?

    That's the one I'm in.

    This whole state is a mess.
     
  4. BobbyT

    BobbyT

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    Class sizes going up is a joke, as Chicago is shrinking in population (below its 1920 total) and number of students, while CPS has more employees than ever.

    Student population has dropped below 400k, and teacher number over 40k, for a ratio under 10:1.

    Average salary was 76k with the shortest school day in the country at 5h 45m. New agreement is a 17% raise, so we'll average 89k soon.

    So enrollment is falling, employment is at an all time high, and budget growth hasn't even slowed down as we're flushing away 6 billion this year, or 15k/student.

    99.7% of CPS teachers rate either "meet all expectations" or "exceed expectations". Of the 0.3% who somehow can't make the standards, principals will be forced to give half of any new positions to those so illiterate they manged to lose their unaccountable jobs, rather than hiring new, competent teachers.

    Our graduation rate remains around 50%, depending on how you fudge the numbers (ie not counting kids who are expelled, or sent to alternative schools before dropping out).
     
  5. MarinePride

    MarinePride

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    Pension funds are going to be bailed out, just wait for it.
     
  6. BamaBud

    BamaBud NRA Life Member

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    So, which do you think Obama will first try to confiscate for these bailouts? IRAs or 401Ks?

    "Pay Your Fair Share."
     
  7. kensb2

    kensb2 pistol n00b

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    Wow, what a mess. Thing that struck me as funny, is the one woman that said she would always get paid, no matter what, because it is written in the state's constitution. Regardless of what the document says, when greed and mismanagement force Illinois into bankruptcy, they will cease to get their pension.
     
  8. Mr981

    Mr981

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    Heard a similar comment from a friend that is a retired teacher a few years back when the OH state teachers fund had some investment reversals and was in some trouble. She had since moved and wondered aloud why the state just doesn't raise taxes to cover the short fall. She just felt her investments were "guaranteed" regardless of how the fund was mismanaged by her own union trustees.

    Agreed--there are a lot of teachers that have become accustomed to vast quantities of money being thrown their way--rightly or wrongly--and they really don't care how the public comes up with what they are owed. Shared sacrifice--that's for the other guys.
     
  9. Dennis in MA

    Dennis in MA Get off my lawn

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    Make em all follow little (strangely liberal) Rhode Island. They had a massive pension rollback a year or two ago to keep the state afloat. More is coming.
     
  10. Wake_jumper

    Wake_jumper

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    Pretty sweet deal, expecially when you consider they only work nine months out of the year. And even during the school year they get lots of time off (Winter break, Spring break, in service training, every Federal holiday, etc.).
     
  11. wjv

    wjv

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    If a private company under-funded their pension plan in that manner, people would be in jail. . .
     
  12. hotpig

    hotpig IAFF Local 4766 CLM

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    In Illinois the problem with the State pensions is not greedy pensioners. The problem is not only did the state not put the withholdings and levies into the plan they also used them to rob money from.

    They have been trying to steal the Fire Fighters pension for years. We have money in investments until needed for pensioners and the state sees that as a waste. They could use those funds now for additional social programs for Chicago.

    Eventually they will legislate themselves into the money. There are Billions in the funds and since there is not one penny of state money undoubtedly they will treat it as magical free money. That partially rejuvenates every pay period. Then you will hear about the greedy firemen bankrupting the state because they retire.
     
  13. hotpig

    hotpig IAFF Local 4766 CLM

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    I used to think the same thing. Both of my daughters, one son in law and my wife used to substitute. Now I know better. The work comes home with them in evenings, week end and Holidays.

    Maybe your job is simple enough that in service training is considered time off. Many jobs training is work. If it is mandated training then it is mandated pay.

    It may differ in you area buy here a teacher can opt to take a smaller paycheck and get paid during the breaks. The annual salary is then just divided into twenty four pay periods. As a example my youngest started out fresh out of college with a Masters degree. Her salary was just a hair over 34k (in 2004)and she opted to get it spread throughout the year. She made roughly 1417.00 before tax and deductions every 15th and 30th of the month.
     
  14. jpa

    jpa CLM

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    I was in the IMRF pension fund when I worked for a suburb of Chicago. I got out before I was vested because I was moving out of state. I got a refund of my contributions...boy am I glad. I went from one of the most underfunded pensions to one of the best funded. Lucky me. :)
     
  15. hotpig

    hotpig IAFF Local 4766 CLM

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    A good thing about the IMRF is the payroll deductions and levies are mandated to go into the pension funds. If a city takes the employees payroll deduction and or levies and does not put it into the pension it can be recovered from the cities future tax revenue.

    The other down State Police and Fire Pension funds do not have that protection. If they spend our money we can try court relief and that is it.
     
  16. RonS

    RonS Millennium Member

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    It is the fund managers playing games with the investment projections. Try and find out what ROI they are projecting on their investments, it will probably be optimistic to the point of absurdity. No one wants to contribute to pension funds so they put in as little as they can and then pay fund managers to make it look good with unrealistic projections for growth. Then they stick the pensioners with reduced pensions or the taxpayers with the bill to make it good.

    It may be absurd, it may shock us, but the state made a contract and people invested their working lives in return for that compensation package. IMHO simply saying Sorry Charlie now is no different that if you put your money in the bank on a CD at a fixed rate and when you went to get it out they said "We don't think we can afford to pay you back all of that money, that's unreasonable, other people are only getting 2.5% so that's what we are giving you".

    Where will this country be when neither government nor private individuals must honor contracts? Work for a week and the company says, "Hey, it's a bad week, we aren't paying anybody". Pay taxes, file your return and they say, "Due to the war on terror there will be no refunds this year. Thank you for paying your fair share."

    Prescription for cultural suicide. How do you run a country once everyone figures out that engaging in a simple business transaction might in fact be gambling with your investment?