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John Tillman of the Illinois Policy Institute discusses how pension-reform efforts are impacting public-sector worker retirements.
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Pension reform and Illinois having a major impact on the State's public -- yes -- -- According to the Chicago Tribune 4750.
State employees -- head in the last dip.
Nearly as many as -- as advertised in the past two years combined.
John Tillman -- the -- policy institute joins us from Chicago John I know why they're doing this.
They are retiring now so that they can lock in a pension.
Which they will keep -- which they will receive.
On the grounds that if they wait they might -- get that pension at all because Illinois is flat broke my rights.
You're absolutely right Stewart there is leaving the sinking ship and they don't see anybody repair the holes -- -- they're worried about the dithering and delay and denial legislators in Springfield.
And I think what it also says is this is a validation what we've been saying for a long time is -- this is a rich deal.
You're turning out public employee workers and to -- retirees on the backs of the taxpayers working class import tax payers in Illinois.
And they want to lock in that deal now before it gets changed defeatist that use the expression million act retirees.
Now because as you well -- -- let me explain that when you as you all gonna have a 60000 dollar or 90000 dollar and 20000 dollar pension annuity as a retirement you've got to have somewhere between two and three or four million dollars in the bank.
So effective cash of -- -- that's being paid -- defined benefit.
Let's say 60000 dollars you've got about a have you gotta have two million dollars in the private sector.
And that's what I mean by millionaire retirees through living very very -- these are great deals and that's -- -- -- allotment a bit everybody around this table is this has -- three people on the set here in new you'll Joan -- with saying well.
I would do the same thing.
If they are my cars not just went -- -- you can't blame a moment at its legal.
It's rational it's the right thing to do in your own self interest -- around blaming the -- folks at all.
Absolutely not I don't blame the public -- workers -- all they got the DO they security deal and they should absolutely maximize that we shouldn't vilified them anymore that we do the 1% were successful private sector the problem is the politicians in Springfield revenue regular bomb floating over Springfield and they're -- out -- instead of fixing the problem -- -- -- the responsibility lies right now here's the question.
These people of retired and -- locking in their full pensions.
Over the lifetime about pension do you really think they'll get it they will get it all do you think or is the situation Illinois so bad that at some point existing retirees we'll have that pensions costs.
There's still time will be fix the problem very soon we have a special session coming up this Friday and I don't think the economy material progress this Friday.
But I do think the fact that all these people are leaving is is making it -- -- I do think we're gonna reformer within the next year I think that we do that with material substantial reform that transforms them.
But the program for new employees and the work going forward for current employees were for a one K program some of the things that need to be done in these retirees will be protected and that's the key thing we've made an agreement -- down we need to reform now to protect their retirement.
I I'm gonna we -- got time to discuss this but I disagree John.
I don't think it's good enough to just reform the system for new high us I think you've gone -- -- I think about those who worry authority taking out some pretty lavish pensions last would -- and I -- -- I agreement that we have to reform benefits for current employees from a date specific going forward.
As well as new employees that's what we've been advocating is the only way the numbers add up you have to reform for current employees going forward.
And that's why so many are leaving -- the Tribune reported John Tillman thank you very much indeed we got we'll see again soon thanks from -- -- thanks so much there weren't they're gonna threaten their health insurance exactly what that's it because constitutionally you can do that.
Pensions are different story but health benefits and retirement you can get those look -- you right I think show.
Welcome back to show that was -- --
