Big Raises Mean Big Pension Penalties At Suburban Schools
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SCHAUMBURG, Ill. (CBS) — Suburban school districts are pushing back hard against a 2005 state law that was meant to rein in Illinois’ skyrocketing pension costs.
As WBBM Newsradio’s David Roe reports, the law says when school districts give big raises to administrators and teachers, thus driving up pension costs, they must cover the future pension costs triggered by raises of more than 6 percent a year.
The Daily Herald reports some districts far exceeded 6 percent raises. Schaumburg Township Elementary District 54, for example, gave 22 percent raises in each of three years to one administrator.
But when the state came collecting the district’s new share of the pension burden created by the big raises – which totals $645,320 – the district disputed the charges, the Daily Herald reported.
Two Democratic lawmakers are seeking to shift the state’s share of future pension obligations to local school districts, and they cite high suburban salaries as among the reasons, the Daily Herald reported.
LISTEN: WBBM Newsradio’s David Roe reports