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Old 03-31-2019, 06:57 PM
 
4,140 posts, read 3,868,977 times
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Quote:
Originally Posted by GhostOfAndrewJackson View Post
Great post. You are correct, if they are going the Constitutional amendment route pension surgery needs to be introduced.

They need to eliminate the defined benefit plan going forward and move to SS plus a defined contribution plan. The contribution rate should be the determined each year based on the average private sector employees receive who work in Illinois.

Health care benefits should also be altered so employees pay 75% of the cost.
Would you work at a place where you had to pay 75% of the healthcare cost?
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Old 03-31-2019, 07:26 PM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,417 posts, read 725,883 times
Reputation: 3439
Quote:
Originally Posted by jasperhobbs View Post
Would you work at a place where you had to pay 75% of the healthcare cost?
Of course I would.

The point however is, the IL Government healthcare programs are way too generous and force the taxpayer to fund lifestyle choices such as the vast sweeping majority of the cost for employee's spouse and children. That is the problem, it is an uncontrolled variable cost that can radically change after you hire an employee.

I would have no issue with an adequate healthcare plan where the states picks up 100% of the most for the employee and the employee pays 100% of the cost for a spouse and children for example. But the state needs to have the right to determine year to year, what that health plan looks like.

Last edited by GhostOfAndrewJackson; 03-31-2019 at 07:39 PM..
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Old 04-01-2019, 06:58 AM
 
Location: broke leftist craphole Illizuela
10,326 posts, read 17,339,629 times
Reputation: 20321
Quote:
Originally Posted by jasperhobbs View Post
Would you work at a place where you had to pay 75% of the healthcare cost?
The average in the private sector now is the employee pays 20% of premium for a fairly high deductible health plan and gets a 3% 401k match. The Illinois government should just match what the Feds do which is cover most of the healthcare insurance for an actively working individual employee (I think the fed covers about 80% as well) and offer a 4% 401k match (TSP).

Where I wouldn't work is a place where my retirement was dependent upon Democrats managing my money. I consider Illinois pensions as probably worthless in terms of planning. Anybody who thinks the current system can be sustained is delusional. As bond interest increases and we hit the next recession or we continue to have slow growth in stocks, and more residents flee the state, Illinois will sink deeper and deeper into the muck.
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Old 04-01-2019, 08:31 AM
 
638 posts, read 237,074 times
Reputation: 424
Quote:
Originally Posted by MSchemist80 View Post
Look if they are going to open the Illinois constitution for a progressive income tax they need to open it up for pension reductions as well. My suggestion would be a graduated pension reduction. People with $30k pensions get little or no reduction double dippers with spiked $250k a year pensions get a big reduction. It probably won't happen because the Democratic Party have made it quite clear they don't give a crap about the people other than their cronies.
Keep the pensions the same with a cap of $100K a year, extend the years people must work to get their full pension.. problem solved

Teaching for me is a second career, I am currently 51 and would like to get 20 years in TRS, would mean work until I am 62, if I can do it the rest of the teachers can as well.. retiring at 56-58 like most do is crazy, same with state cops that retire at 50..
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Old 04-01-2019, 10:40 AM
 
997 posts, read 840,076 times
Reputation: 826
Quote:
Originally Posted by MSchemist80 View Post
The average in the private sector now is the employee pays 20% of premium for a fairly high deductible health plan and gets a 3% 401k match. The Illinois government should just match what the Feds do which is cover most of the healthcare insurance for an actively working individual employee (I think the fed covers about 80% as well) and offer a 4% 401k match (TSP).

Where I wouldn't work is a place where my retirement was dependent upon Democrats managing my money. I consider Illinois pensions as probably worthless in terms of planning. Anybody who thinks the current system can be sustained is delusional. As bond interest increases and we hit the next recession or we continue to have slow growth in stocks, and more residents flee the state, Illinois will sink deeper and deeper into the muck.
Well, since the state can’t afford to pay the current 8.3% of the teachers salary into the pension (no social security contribution) how are the going to afford a 3% match on a 401k plus 6.2% into social security?
The state was getting by cheap with an 8.3% total contribution. If only they would’ve made the contribution like the teachers did.
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Old 04-01-2019, 12:43 PM
 
Location: broke leftist craphole Illizuela
10,326 posts, read 17,339,629 times
Reputation: 20321
Quite easily. 10.2% (6.2%SS+4% 401k match) is much better than paying the pension benefits.

Median teacher salary in Illinois $59,113
.102*59113*30=$180,885

average pension $55,796
55796*20years=$1,115,920 + additional payouts and health insurance for life + increases.
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Old 04-01-2019, 02:08 PM
 
3,472 posts, read 2,140,536 times
Reputation: 1939
Quote:
Originally Posted by MSchemist80 View Post
Quite easily. 10.2% (6.2%SS+4% 401k match) is much better than paying the pension benefits.

Median teacher salary in Illinois $59,113
.102*59113*30=$180,885

average pension $55,796
55796*20years=$1,115,920 + additional payouts and health insurance for life + increases.
Yikes. That’s some wonky, oversimplified math you’ve got there.
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Old 04-01-2019, 02:14 PM
 
Location: broke leftist craphole Illizuela
10,326 posts, read 17,339,629 times
Reputation: 20321
I'm not an actuary nor financial modeler where I can model life expectancy, changes in salary throughout careers, expected returns on investment (not that Illinois invested much for the pensions). I assume the state of Illinois has actuaries and financial modelers who must have been screaming at the top of their lungs and were then made to shut up.

However the gist is pensions cost >> social security and 401k match, especially when the state doesn't invest the money, and the 401k is much more secure given that the government doesn't control it and has no choice when and if to fund it.
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Old 04-01-2019, 02:29 PM
 
2,558 posts, read 2,149,782 times
Reputation: 1671
Quote:
Originally Posted by MSchemist80 View Post
especially when the state doesn't invest the money,
What do you mean by the state doesn't invest the money? You can very well argue they're making the wrong investments.

https://www.chicagobusiness.com/fina...ment-portfolio
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Old 04-01-2019, 02:43 PM
 
Location: broke leftist craphole Illizuela
10,326 posts, read 17,339,629 times
Reputation: 20321
Quote:
Originally Posted by fusillirob1983 View Post
What do you mean by the state doesn't invest the money? You can very well argue they're making the wrong investments.

https://www.chicagobusiness.com/fina...ment-portfolio
I'm saying for decades and continuing in the present the state did not put money into the pension funds, therefore they did not get returns on money they didn't invest. It is like not putting money into your 401k between the ages of 30 and 60 and then yelling at your financial adviser why can't I afford to retire at 65? Go back to grade school and learn about compound interest!

The state is $250E09 short of having the funds invested sufficient to grow and sustain the pensions. That is if they magically invested that money right now they would be OK. Since they don't and they don't get returns on money not invested that number is going to get worse and worse you get the idea.

For the most part the money they did invest and was managed by Rauner's firm GTCR did very well so the investments weren't the issue, the lack of money invested was and is the problem.
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