Taxpayers United of America releases local pension study

tuaTaxpayers United of America (TUA) today released the results of a new pension study of the employees of the City of DeKalb, DeKalb County, DeKalb County government schools, and Northern Illinois University.

“Illinois lawmakers continue their abuse of taxpayers by ignoring the number one budgetary problem in the state,” said Jim Tobin, president of TUA. “Illinois is in horrible financial shape, and yet taxpayers are still expected to pour their hard earned money into a failed government pension system.”

“While residents across DeKalb County face crushing tax increases, falling home values, high unemployment, and a painfully slow economic recovery, government employees continue to receive stunning pensions largely funded by taxpayers who will never collect more than $22,000 a year from Social Security.”

“Illinois’ government bureaucrats have been feeding off taxpayers in DeKalb and all across the state for the last 30 years, receiving gold-plated pension benefits in return for the votes they give politicians. Across the country, millions of bureaucrats are being paid billions, to do absolutely nothing! With their 3%, compounded cost of living adjustments (COLA), Illinois’ government retirees double their pensions after only 24 years of retirement.”

“The purpose of our study is to put some perspective around individual pensions, to put them in terms to which the average taxpayer can relate. Area taxpayers, whose average household income is $54,000, need to know how much DeKalb’s government retirees are being paid not to work and the astronomical accumulation of those payments over an average lifetime.”

“For example, Joel Milner retired from Northern Illinois University and collects an annual pension of $261,396. He has already collected $1.3 million in pension payments and his estimated lifetime pension payout is an amazing $7 million, 6.1% of which was his contribution.*”

“Robert L. Hammon retired from the Sycamore CUSD 427 and has an annual pension of $145,925, with a staggering estimated lifetime payout of $4,875,355. His contribution of the estimated lifetime payout would be only 3.1%.* ”

“Retired DeKalb County government employee, Kevin C. Hickey, has an incredible lifetime estimated pension payout of $5,015,178*, 2.6% of which he contributed, with an annual pension of $109,864.”

View pension amounts below:

“Illinois’ government pensions are in serious trouble with no end in sight. Government employees should be paid a fair wage for the work they do today so they can save for their own retirement.”

“Without sweeping and immediate reform that includes raising retirement age to 67, increasing employee contributions by 10%, increasing healthcare contributions to 50%, eliminating all COLA’s, and replacing the defined benefit system with a defined contribution system for all new hires, Illinois’ pension system will collapse. It’s mathematically impossible to tax your way out of this problem. Illinois has more than 6,700 retirees collecting more than $100,000; in 2020, that will be over 25,000 six figure pensioners.”

*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).

Leave a Reply