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Shocker! Local School Districts Are Not Funding Teacher’s Pensions

Rich Miller 30 January 2012 No Comment

As is his custom, Madigan didn’t officially endorse the plan to ease the state’s ongoing budget strain by passing pension obligations down the governmental food chain to school districts and public colleges and universities, but he did indicate that he was strongly leaning in that direction.

The “normal arrangement,” for pensions, Madigan said, was that the employee and the employer both pay into the pension system. But school districts pay just 0.054 percent of payroll into the Teachers’ Retirement System, Madigan noted (and when he has it down to the decimal like that, you know he’s focused on the issue). He also said the universities pay “zero” toward employee pension costs.

“And let’s understand,” Madigan said about public school employees, “these are people who never got a payroll check from the state of Illinois.”

The speaker went on to note that the state paid $4 billion this year into its five pension funds, half of which went to the Teachers’ Retirement System (TRS).

“So over one half of our obligation to pensions, which is the subject of great public debate today, is for people (teachers) who never worked for the state of Illinois,” Madigan said.

Read more at the Southtown Star

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