In response to a series of news reports in the Chicago Tribune on WGN-TV this week, uncovering huge pension hikes under the guise of public service, House Republican Leader Tom Cross will file a bill today that will end this practice in the future. bureaucrats
“This is a huge slap in the face to taxpayers that government in cooperation with its employees comes up with a scheme, that is currently allowable under state law, to boost pensions sky-high,” said Cross. “This practice needs to stop—immediately---and we will file a bill today, so that this provision in state law cannot be abused.”
In 1991, as part of an omnibus pension bill, Chicago city workers were given the ability to leave their city job, go work for their labor union at a much higher salary and continue paying into their city pension at the same rate as they did when they were at the city. However, when they retire, they are collecting their pension at a much higher rate.
For example, a Chicago city worker making $40,000 could leave his or her city job and go work for a labor union at a $100,000. Under current state law, the former city worker could continue paying into the city pension according to his or her salary when he or she left—but upon retirement; the pension benefit will be figured according to the non-government $100,000 salary.
Leader Cross is filing legislation today that will move for a full repeal of these types of pension benefits.
The Chicago Tribune and WGN-TV estimates that due to this perk 23 retired high level union officials stand to make a combined total of about $56 million from their public pension. Taxpayers will be forced to pay the majority of this bill as it was never adequately paid for.
According to the Civic Committee, the City of Chicago Municipal and Laborer’s Pension Funds will be depleted of their assets within 20 years.
“We are also further researching the possibility of legislation that fraudulent activity dealing with pension eligibility is properly enforced. This practice is already illegal under Illinois statute and my office is looking to ensure that any violators of this provision are properly punished for their actions,” said Cross.
