Tag: public employee pension

No surrender

No surrender

I haven’t written much about Illinois state politics in recent months, largely because there’s not much going on due to the ongoing state government shutdown.

However, the website of The New York Times has published this report on how a handful of wealthy individuals, some of which aren’t Illinois residents, are holding the state of Illinois hostage by way of big-money politics:

In the months since, Mr. (Kenneth C.) Griffin and a small group of rich supporters — not just from Chicago, but also from New York City and Los Angeles, southern Florida and Texas — have poured tens of millions of dollars into the state, a concentration of political money without precedent in Illinois history.

Their wealth has forcefully shifted the state’s balance of power. Last year, the families helped elect as governor Bruce Rauner, a Griffin friend and former private equity executive from the Chicago suburbs, who estimates his own fortune at more than $500 million. Now they are rallying behind Mr. Rauner’s agenda: to cut spending and overhaul the state’s pension system, impose term limits and weaken public employee unions.

[…]

Many of those giving, like Mr. Griffin, come from the world of finance, an industry that has yielded more of the new political wealth than any other. The Florida-based leveraged-buyout pioneer John Childs, the private equity investor Sam Zell and Paul Singer, a prominent New York hedge fund manager, all helped elect Mr. Rauner, as did Richard Uihlein, a conservative businessman from the Chicago suburbs.

In short, Republican Governor Bruce Rauner, who spent tens of millions of dollars of his own money on his gubernatorial campaign last year, also spent millions upon millions of dollars of money from a handful of wealthy individuals, and now Rauner is holding Illinois hostage by demanding a Scott Walker-style far-right economic agenda that would hurt Illinois’s economy in return for a functional state government.

To the Democrats in the Illinois General Assembly and the people of Illinois, I have two words for ya’ll: No surrender! Illinois cannot afford busting unions, driving down wages, making it harder for working Illinoisans who are injured on the job to get workers’ compensation benefits, cuts to pension benefits, and every other item of right-wing economic policy that would hurt Illinois’s economy by taking away disposable income from Illinois consumers. Illinois cannot afford surrendering to Bruce Rauner and his big-money cronies from the finance industry.

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Bruce Rauner pushing more unconstitutional pension theft bills in Illinois

Republican Governor Bruce Rauner is publicly pushing for more pension theft legislation here in Illinois, despite the fact that the legislation appears to blatantly violate the Illinois Constitution:

Gov. Bruce Rauner on Wednesday announced a massive pension overhaul bill that he said would save billions of dollars while incorporating reform ideas from various leaders.

The lengthy bill — all 500 pages of it — would cut retirement benefits for police officers, firefighters and public teachers. It would also give local governments a way to file for bankruptcy “as a last resort” after a review or the declaration of a fiscal emergency.

Cutting pension benefits that have already been guaranteed to our state’s public employees is explicitly unconstitutional, according to Article XIII, Section 5 of the our state’s constitutional, which states the following:

Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.

The Illinois Supreme Court unanimously ruled earlier this year that a pension theft bill signed into law by then-Democratic Governor Pat Quinn in 2013 violates the Illinois Constitution because it cut pension benefits that are supposed to be guaranteed to those who are currently publicly employees once they retire. Bruce Rauner, State Senate President John Cullerton, and Cook County Board President Toni Preckwinkle are supporting more pension theft legislation that is likely to get struck down by the courts for cutting constitutionally-guaranteed pension benefits to our state’s public employees. While our state has a major pension debt problem, it should be dealt with without cutting benefits to current public employees and retirees.

Illinois Supreme Court UNANIMOUSLY throws out pension theft scheme

This is a couple of days old, but I have great news to share:

The Illinois Supreme Court on Friday unanimously ruled unconstitutional a landmark state pension law that aimed to scale back government worker benefits to erase a massive $105 billion retirement system debt, sending lawmakers and the new governor back to the negotiating table to try to solve the pressing financial issue.

The ruling also reverberated at (Chicago) City Hall, imperiling a similar law (Chicago) Mayor Rahm Emanuel pushed through to shore up two of the four city worker retirement funds and making it more difficult for him to find fixes for police, fire and teacher pension funds that are short billions of dollars.

At issue was a December 2013 state law signed by then-Democratic Gov. Pat Quinn that stopped automatic, compounded yearly cost-of-living increases for retirees, extended retirement ages for current state workers and limited the amount of salary used to calculate pension benefits.

The Illinois Supreme Court unanimously struck down the pension theft scheme despite Democratic Illinois Attorney General Lisa Madigan basically arguing that politicians don’t have to abide by the Illinois Constitution, which contains provisions protecting the pension benefits that our state’s public employees pay into one of several public employee pension systems, if there’s a significant pension shortfall. The Illinois Supreme Court, which has four Democrats and three Republicans, ruled unanimously that the provisions of Illinois Constitution pertaining to public employee pensions do, in fact, apply to politicians who try to screw over retirees.

Make no mistake about it, the fight against the Quinn-Rahm-Ranuer pension theft scheme is far from over.

Bruce Rauner wants to amend the Illinois Constitution in order to steal pension benefits

With the possibility that the Illinois Supreme Court may strike down at least part of former Democratic Governor Pat Quinn’s pension theft legislation looming, incumbent Republican Governor Bruce Rauner is already pushing for an amendment to the Illinois Constitution that, if ratified, would steal pension benefits from our state’s public employees. While a formal amendment has not been proposed yet, the amendment would, if ratified, force at least current public employees to choose between reduced pension benefits or a 401k-type plan.

Make no mistake about it, the Rauner pension theft amendment would be disastrous for Illinoisans.

First off, the amendment would effectively force our state’s public employees to make a lesser-of-two-evils decision: either take lower pension payments once they retire, or take payments from 401k-type plan once they retire. Lower pension payments would mean less money for retirees to spend on goods and services, resulting in many of them becoming impoverished and dependent on social safety net programs in order to survive. On the other hand, 401k-type plans provide no lifetime guarantee of payments, meaning that it’s possible for a beneficiary of a 401k-type plan to outlive their benefits.

If the Rauner pension theft amendment were to be ratified by voters, it would likely result in the loss of thousands of Illinois private-sector jobs. That’s because many Illinois businesses, even businesses located hundreds of miles from Springfield and/or Chicago, are dependent on retired public employees spending money on goods and services in order to survive. While our state’s pension system is badly underfunded, pension theft would leave our state even worse off than it currently is.

60% of all members of both houses of the Illinois General Assembly, which is controlled by supermajorities of Democrats, would need to approve of the Rauner pension theft amendment in order for it to appear on the Illinois ballot. If that happens, Illinois voters will be able to vote yes or no on the Rauner pension theft amendment in a ratification referendum. Either 60% of those voting on the referendum or 50%+1 of all votes in the election in which the referendum is held for the “yes” option would ratify the amendment. If the Rauner pension theft amendment appears on an Illinois ballot at any time in the future, I strongly encourage a “no” vote on the amendment.