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Old 12-05-2013, 06:44 PM   #81
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This discussion almost makes me happy I'm not entitled to a pension.

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Old 12-05-2013, 07:54 PM   #82
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Originally Posted by youbet View Post
Nope. But I give you credit, you get closer and closer with every iteration!
Am I a contestant on a game show? I'll take Door # 3, Monty!

So I guess you are referring to the next clause "In addition, all COLA would be eliminated for one to five years for current state workers (not retirees), depending on their age"

I wasn't focusing this on those not retired yet, that's why I skipped it.

But not for existing retirees. right? I didn't see that in the article MB linked, but maybe another source has that?
According to a TRS report issued this morning, a retiree receiving the average pension lost 18.6% of the value of the pension they will receive over the next 20 years. So, a significant haircut for the typical Illinois retiree.
A little cryptic. Is this 18.6% reduction a calculation on the average effect of the COLA cap? Then we've already talked about it.


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Old 12-06-2013, 05:35 AM   #83
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Originally Posted by youbet View Post
Well, the pension contribution is mandatory and is turned over to Illinois politicians. (Oh boy..........) They tell you that you are paying for some retirement benefit, "X," to be paid as an annuity in the future and under certain conditions regarding age, years employed, etc. You must make the pension contribution as a condition of employment. They are free to change the benefit "X" or the conditions under which it is collected as they wish in the future. The public supports this since the pension promise is substituted for a portion of wages in a compensation package. But, unlike wages, the pension doesn't necessarily have to be paid or can be paid at a steep discount.

That seems too cynical. The benefit is worth far, far more than what the employees paid in, is it not? Even if this cut survives legal challenges won't that still be the case?

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