Showing posts with label pension reform. Show all posts
Showing posts with label pension reform. Show all posts

Friday, February 20, 2015

Who’s to say how pension funding problem will wind up being resolved?

At least we now have a date.


March 11, to be exact. That’s the date the Supreme Court of Illinois will hold hearings to allow attorneys to argue over a lawsuit now pending before them as to how state government can resolve its long-standing problem of underfunded pension programs for state workers and public educators.

THE STATE’S HIGH court scheduled that date on Thursday, and attorneys will gather for all the sides to have a chance to make oral arguments. Then, it is up to the court to make its ruling, sometime during the spring months.

Many people seem convinced the state Supreme Court will issue a ruling that upholds the Springfield-area judge who struck down the piece of legislation that now-former Gov. Pat Quinn signed into law to try to settle this issue.

That solution called for cutting into the level of retirement benefits that state workers could expect to receive, and that resulted in a lawsuit by organized labor interests to try to strike it down.

For they argue the retirees should not have to suffer in any way in terms of losing benefits they had expected to receive. Which is an argument I can kind of comprehend; we get them to retire by promising them something resembling a living wage in their elder years.

TRYING TO TAKE it back after they’re no longer capable of resuming work is kind of cold.

Although a part of me also wonders how much additional harm gets done by revoking the effort that did get legislative and gubernatorial approval to resolve the pension funding problem.

The problem is that the shortfall in payments in past years eventually has to be made up for. The shortfall is getting so large that it threatens to devastate the level of funds available to cover the cost of other services that state government has an obligation to provide.

We went through several years of the Quinn administration with the Legislature continuing to avoid finding a solution. When a solution was found, it was long overdue.

IF IT TURNS out that the “solution” is revoked and that we still have a lingering problem, it means an even worse financial situation than Quinn ever tried to encounter.

Yet current Gov. Bruce Rauner doesn’t seem to care much about that. Of course, he’ll just spew some rhetoric about how it is the Quinn administration’s fault. Even though the former governor made a sincere effort to try to resolve the problem, and often came across as being the only state official who comprehended the severity of the situation.

I don’t have a clue what it is exactly that Rauner has in mind for a solution – although I suspect his plan of attack gets thwarted if the Supreme Court finds a way of legitimizing the Quinn-era efforts to resolve the problem.

Although I noted that during his state budget address this week, he made a point of saying that current retirees will receive what they were counting on in terms of benefits. “You get everything you were promised,” Rauner said to retirees. “That’s fair, and it’s right.”

HE DID REFER to shifting current employees’ retirement benefits to a different plan, except for police officers and firefighters whose benefits are covered by the pension programs funded by state government.

Which makes me wonder how those Public Works crews who are digging us out of all the heavy winter snowfall we got hit with feel, hearing the governor say that cops are doing more important work than they do?

Of course, the Legislature could go about trying to protect some of those workers, since they are not ideologically inclined to want to make Rauner look good – particularly at a time when much of his own rhetoric is intended to make da Dems look bad.

Which ought to make for a feisty hearing come March when the Supreme Court has to figure out just how complicated the path to a solution has to be in order to be legitimate!

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Sunday, December 1, 2013

Earth to Rauner: Oh, Hush!!!

There’s always going to be a malcontent, somewhere, for just about everything.

RAUNER: A Sunday pension statement
In Illinois this week, that malcontent seems to be Bruce Rauner, the wealthy business executive who has dreams of becoming governor – largely because he wants to mess with the labor unions that represent state government employees.

HE WENT SO far as to issue a statement Sunday reiterating his belief that the agreement the General Assembly will consider on Tuesday concerning the way the state funds its pension programs is a flawed one that he does not want to see passed into law.

I’ll be the first to admit that the agreement may be insufficient and may wind up being struck down by the courts as the result of an inevitable lawsuit by the unions.

But let’s be honest. Rauner doesn’t care much about any of this.

His political interests are best served if our Legislature is incapable of achieving any kind of agreement, and the problem is still lingering beyond the January 2015 date on which he dreams of being sworn in as governor.

HE CAN SPEND the next year ranting and raging about the ineptitude of a Democrat-dominated state government that is incapable of resolving a very serious long-term problem. That ignores the fact that this problem dates back decades and that both political parties are equally responsible for its existence.

But heck, the demagogues among us would rather whine about the issues, particularly if it lets them pretend they’re addressing issues rather than taking cheap shots against their political opponents.

Instead, this problem technically is resolved. He won’t really be able to address it as a campaign issue. He can, but he will come across as nothing but a crank!

As for Rauner and his statement, it gave me a headache. He may be running for political office, but the self-serving nature of the rhetoric was just too much to take seriously.

RAUNER EVEN MANAGED to mention the Republican legislative leaders (state Rep. James Durkin of Westchester and state Sen. Christine Radogno of Lemont), by claiming that the agreement up for a vote this week denies them a chance to “negotiate a deal … in good faith.”

That ignores the reality of the fact that there wouldn’t be any vote taken this week if NOT for the fact that the Republican leaders were included in the talks, and that concessions were made to gain their support.

“Good faith” may well be what is taking place, compared to the Rauner way that wants to put his ideological hang-up against organized labor above all else – a way that is sure to do nothing but antagonize those very unions into a fight against the state.

There’s one other part of Rauner’s rant that manages to annoy me so much – his claim that this plan is destined to result in higher taxes paid by Illinois residents.

THAT IS CORRECT in that it presumes that during the next three decades (the time period during which the pension funding reform plan will be implemented), it would be possible for the cost of nothing to increase.

That’s NOT reality. Costs are going to go up. There is going to be a need for more revenue for state government by the year 2043. And yes, I accept it as fact that the so-called “67 percent tax hike” of a few years ago will become permanent and we’re stuck with it!

Rauner tries to make it sound like he can somehow cap the cost of government, and that the issue of inflation and rising costs is some sort of plot conspired to by Democrats.

That’s nonsense. The people who want to think we can automatically vote “no” on anything that resembles a revenue increase in any way are being ridiculous.

THEY MAY BE the ones who decide to vote for Rauner. Although it should be noted that the polls showing him in the lead only have him taking a quarter of the vote.
QUINN: In common w/ Bruce

Which means some three-quarters of Republicans, along with all the Democrats, desperately want someone else to be the next governor.

Perhaps it is that reality that makes Rauner use the day upon which we’re supposed to rest to engage us in silly-talk about pensions. Just like Pat Quinn used to do when he was desperate for news media attention and had his Sunday afternoon press conferences on whatever pet issue he thought would get him the TV camera eye.

See? The two men have that much in common!

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Thursday, November 28, 2013

Problem solved? Or is pension funding mess just stepping up to new level

It seems that Illinois state government will actually manage to resolve the long-standing pension funding shortfall it has faced for years. The Legislature is scheduled to meet Tuesday, and officials say they expect a vote on that day.

MADIGAN: Reached a pension funding deal
Then again, it could also be that the Legislature (and later, Gov. Pat Quinn) will merely declare “Victory!” and move on from considering this issue – leaving it to the courts to ultimately decide whether whatever solution gets approved is actually valid.

YES, IT’S VERY true. The courts could find whatever gets approved next week to be unconstitutional – which means we could be back in trouble come the future.

Possibly sometime after Monsieurs Madigan, Cullerton and Quinn are around the political scene.

Now I’m not saying I know for sure that the compromise that the General Assembly’s leaders said they reached Wednesday is doomed to failure. In part, because I don’t know exactly what the agreement entails.

Other than the Capitol Fax newsletter reporting that Illinois House Minority Leader James Durkin, R-Westchester, said it would include a change to the cost of living adjustment, a defined contribution plan and altering the retirement age.

WHICH IS ABOUT as vague a description as one can give. Although Crain's Chicago Business reported late Wednesday that the COLA would drop and state employees would have to work up to five years more before qualifying for retirement in order to cut $160 billion in costs during the next 30 years.

DURKIN: Offering up "details"
From the reports that emanated from the Bilandic Building (the one-time State of Illinois Building now named for the former state Supreme Court justice and Chicago mayor), the leaders say they reached an agreement Wednesday on something they can all support.

They plan to let the rank-and-file of the Legislature know the specifics on Friday, with the legislators actually meeting at the Statehouse for the one-day special session that was previously scheduled.

CULLERTON: Working to get votes
Which means that a bill could then go to Pat Quinn – the guy who originally tried cutting off the Legislature’s paychecks until they got their act together and sent him something he could sign into law.
 
IT WAS NICE to see that Quinn on Wednesday was willing to put aside their past snubs of him and say he wants to work with the legislators to get something approved – even though it would seem he doesn’t know exactly what they’ve concocted in the name of “reform.”

RADOGNO: Also in on deal
“I look forward to working with the leaders and members of the General Assembly over the coming days to get this job done for the people of Illinois,” Quinn said, in a prepared statement.

Such a statement was the best Quinn could do to be included in the process, since it appears that at the time the legislative leaders were meeting in Chicago to hash out details, Quinn himself was in Washington, Ill.

Along with the Chicago Blackhawks – who ventured to the central Illinois community that was devastated by tornado earlier this month. Quinn, the Blackhawks and Rep. Aaron Schock, R-Ill., to host a Thanksgiving holiday luncheon.

I SUSPECT THIS will be the last time that Schock (who has hinted about his own gubernatorial aspirations someday) will want to be seen in public with Quinn.

In fact, I suspect that the legislative leaders handled this the way they did because they weren’t about to share any more of the credit with the governor than they had to.

There’s also the fact that Bruce Rauner, the millionaire Republican gubernatorial challenger was quick to jump all over the plan, saying he opposes it even though he doesn’t really know what it consists of either. He’s just being contrarian, since his campaign seems meant to appeal to people who are ideologically inclined to despise organized labor.

It seems he wants to believe it doesn’t go far enough, even though the unions that actually represent state government workers are now complaining that they weren’t included in the talks. They believe it will be too harsh!

QUINN: Excluded from the "fun?"
VERY FEW OF us have a clue what to expect come Tuesday, and whether it will someday be found acceptable by whichever court winds up getting the inevitable lawsuit challenging “reform.” This is an issue that isn't going to go away, no matter how much our political people want to pretend that it's now resolved.

The very thought of all this makes me sleepy – even more so than the tryptophan I will consume Thursday in my holiday meal.

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