Digital Access

Digital Access
Access daily-chronicle.com from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more!

Text Alerts

Text Alerts
Choose your news! Select the text alerts you want to receive: breaking news, prep sports scores, school closings, weather, and more.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Sign up for free e-newsletters today.
The Holiday Gift Auction is Live! Click here and bid now on great local gifts!
Letters to the Editor

Letter: Suggestions for solving pension problems

To the Editor:

I retired from teaching after 37 years in the profession and am a member of the Teacher’s Retirement System and the State Universities Retirement System. Pension reform is a coming reality. I would like to propose a compromise solution. This solution would require all parties involved to make some sacrifices. The parties should include employees, retirees, employers, taxpayers and state government.

I would suggest the following:

• Cap all pensions at $110,000. Allow growth in the cap per raises in the cost of living.

• Change the three percent Cost Of Living Adjustment to be the same as the COLA for Social Security recipients.

• Allow the COLA to compound until a minimum pension amount is reached and then end the compounding.

• Have retirees pay Illinois state income tax on their pensions.

• Ask current and new employees to contribute an additional two percent of their salaries to the pension fund.

• Have school districts and state universities pay two percent of their employees’ salaries into the pension fund.

• Equalize the five pension systems to require:

1. The same number of service years to receive full benefits.

2. The same health care subsidies for all systems.

3. The same retirement age for all systems.

• Base all pensions on the average of the last six years of highest six years of earnings prior to retirement.

• Make age 60 (sixty) the minimum age to retire with full benefits.

• Continue the pension program as a defined benefits program. Institution of a 401(k) program would ultimately end the defined benefits program. Since most state employees do not have Social Security (the ultimate defined-benefits program), dropping the defined benefits program would put these employees at a disadvantage versus private sector employees.

Vincent F. McMahon

DeKalb

Loading more