Founded in 1976, TUA is one of the largest taxpayer organizations in America.
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Taxpayers United of America |
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ANEMIC GOP PENSION-REFORM PROPOSALS JUST WINDOW DRESSING, SOLVE NOTHING CHICAGO—The pension-reform plans proposed by Illinois GOP leaders are pure window dressing and are so anemic they would have virtually no impact on Illinois’ unfunded pension liability, estimated to be anywhere from $85 billion to $200 billion, according to Jim Tobin, President of Taxpayers United of Illinois (TUA). “The proposals by state Republican leaders to place current government employees into plans that are slightly more affordable by the state wouldn’t even make a dent in the huge pension deficit,” said Tobin. “The anticipated savings from these proposals would only slow the rate of increase of the unfunded amount. It would keep growing.” “Under the GOP proposals, current government employees would have three options. They could stay in their current plan and contribute more, such as an additional 5% of their salary.” “Or they could transfer to a new plan in which they would have to work to age 67 to receive full retirement benefits.” “Alternatively, they could transfer to a plan in which they and taxpayers each would contribute 6% to a 401(k) or 401(a) plan.” “Government employees most likely would have to be forced into these new plans. For example, state university employees currently retire at an average age of 59. In 2009, retirees receiving pensions of $100,000 averaged only 29 years work. Why would they voluntarily work to age 67?” “Springfield should require government employees to contribute an additional 10% toward their pensions. Taxpayers would save $150 billion over the next 35 years.” “Also, requiring government employees and retirees to pay for one-half of their health care premiums would save $230 billion over current projections.” |
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