Madigan: School Districts Should Start Contributing To Teacher Pensions

ELMHURST, Ill. (CBS) — Illinois House Speaker Michael Madigan says local school districts haven’t been paying into their teachers’ retirement systems, and he thinks it may be high time that they did.

WBBM Newsradio Political Editor Craig Dellimore reports that Madigan told an audience at Elmhurst College on Tuesday that part of Illinois’ pension crisis is difficult to understand.

LISTEN: WBBM Newsradio Political Editor Craig Dellimore reports

“In the current budget, our payment is about $4 billion – $4 billion to those five (pension) systems. One half of the $3 billion is the TRS, the Teachers Retirement System,” Madigan said.

TRS is the pension fund for teachers outside Chicago and Madigan said their employers, local school districts, do not contribute to teacher pensions. Aside from what teachers themselves pay into the system, the state picks up the tab, even though teachers are not state employees.

“I don’t think it’s out of line to ask the local districts ‘Why don’t you contribute to this cause? These are your employees,’” Madigan said.

No district outside of Chicago has volunteered to pay into the TRS system. In Chicago, the Chicago Public Schools do contribute to pensions for the city’s public school teachers.

  • Martin

    OMG…something that I actually agree with Madigan about. Why are the actual employers contributing to the employee’s retirement fund? That’s what Private Sector employer’s do.

  • Martin

    OMG…something that I actually agree with Madigan about. Why are the actual employers contributing to the employee’s retirement fund? That’s what Private Sector employer’s do.

  • Just the Average Joe

    That certainly sounds like part of the problem, and the fact that the state picks up the pension cost has encouraged local school districts to spike pay for people near retirement. However, this does not mitigate the need to overhaul the pension system and eliminate the guaranteed 3% COLA. I am a local and state taxpayer. This pension system is too generous, and poorly managed by any standard and many of us near retirement age are already planning our exit strategy.

  • Chivi

    Madigan is right!! Pay should come from their own employers. This is way overdue!!

  • THEE Yard Ape

    Wow, this @ ss hole Madigan seems to have FINALLY wised up. Too little, too late, the damage has been done over many years.

  • Dennis

    No this isn’t a fix, This is just covering up the issue. Has anyone thought about real estate taxes that are already too high & the housing market is already in the dumps.
    Springfield caused this problem by letting the issue go on for way too long & they are just moving it .
    Let Springfield go back to the drawing boards concerning this one.

  • Roberta Waker

    Excuse me, but if they want the local school districts to pay into the teacher’s retirement fund and we taxpayers support the schools with our property taxes, wouldn’t that mean our school property taxes would go up to pay for this? We’re already paying for pensions with our property taxes and I don’t even get a pension, just Social Security so this really isn’t fair. Teachers should pay into Social Security just like most people and that would be their pension. Stop picking our pockets and cut spending.

    • THEE Yard Ape

      @ Roberta – Yes, that would seem to be the case. BUT, in typical democrat fashion, this @ ss hole Madigan puts a spin on it to make it sound like he actually has a plan that is “good” for the people !!!! AND in typical democrat fashion, the tax-payers will be bent over and fuked hard & dry with this plan !!!!

      Please excuse my language ma’am ;-)

    • RetiredinAz1

      I believe most teachers would jump at the chance to contribute to social security…we do not have that option. This also means that teachers need to work at an outside job to acquire the 40 quarters needed to qualify for medicare or else pay out of pocket for that coverage. I would love to receive social security….I am entitled for it since my outside job will give me more than 40 quarters, but my monthly s.s. check will be around $65.00!

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