Pension Reform
Gary on the Issues

We can no longer afford politicians who recognize the financial problems of the state yet continue to preach that more tax and spend policies will solve the problems.

 

There is NO combination of tax increases that would solve Illinois’ state and local fiscal crises without also including drastic reforms, including changes to our retirement system.

 

At a minimum, we must change the form of retirement benefits earned in the future to Defined Contribution Plans such as 401k/403b, where employees are responsible for significant contributions to their own retirements, and managing their own retirement funds.

 

We must also replace mandatory fixed cost of living increases in pension benefits with increases tied to the Consumer Price index. This, along with one of my other recommendation of tying salary increases to inflation and not a fixed rate, would result in smaller pension contributions, yet still provide a healthy retirement income for our workers.

 

Ideally, the legislature would vote to repeal the Pension Protection Act, and submit that to a vote of our citizens. That would allow all retirement benefit plans, and not just new benefits, to be converted to the Defined Contribution model.

 

 

Full Issue Paper Available

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“I believe that we, regardless of party, can do that which I have helped my clients do for themselves: become financially stable. I invite you to read on to see some of the solutions that I am proposing to make this a reality, and to solve Illinois’s financial crisis for all of us.”

 

 

PAID FOR BY COMMITTEE TO ELECT GARY MANDELL. A COPY OF OUR REPORT FILED WITH THE STATE BOARD OF ELECTIONS IS (OR WILL BE) AVAILABLE ON THE BOARD’S OFFICIAL WEBSITE http://www.elections.il.gov OR FOR PURCHASE FROM THE STATE BOARD OF ELECTIONS, SPRINGFIELD, ILLINOIS.