Amy Korte, Executive Vice President | https://www.illinoispolicy.org/our-story/?team-filter=staff#team
Amy Korte, Executive Vice President | https://www.illinoispolicy.org/our-story/?team-filter=staff#team
In Illinois, the state's top pensioners are experiencing significant returns on their retirement contributions. Fifty individuals stand to receive an average lifetime payout of $8.47 million, with a stark contrast to the average private sector worker who saves about $609,000 for retirement.
Patrick Andriesen, a writer for the Illinois Policy Institute, remarked on the situation: “It’s clear why Illinois’ pension debt – and the tax burden – are rising so quickly. When the highest-paid public workers are contributing so little to their retirements, it’s on taxpayers to make up the difference and those taxpayers will live on a lot less when they retire."
Key figures among these top pensioners include a former University of Illinois-Chicago orthopedic surgeon, who has received over $8.33 million since retiring in 2007, having contributed $535,165 during his career. A former superintendent of Elgin Area School District U46 contributed $63,527 to his retirement and has collected $5.14 million since 2002.
The group comprises 33 members of the State Universities Retirement System and 17 annuitants of the Teachers Retirement System. All but one fall within Illinois' top 5% of income earners, collecting $250,000 or more annually in 2024. They retired at an average age of 62.
“These high benefits illustrate the need to be careful not to repeat the same issues that got Illinois into a scenario of massive pension debt, growing unfunded liabilities and increasing costs to taxpayers. As state leaders weigh potential adjustments to Tier 2, they should avoid any tweaks that would essentially turn it into Tier 1 benefits,” stated Mark Batinick, a former state representative and pension policy adviser for the Illinois Policy Institute.
Proposals in Springfield aim to adjust Tier 2 benefits for state workers hired since 2010, aligning them more closely with Tier 1 benefits—a move linked to the state’s $144 billion pension debt. Recent polling and municipal referendums indicate that a majority of Illinois voters support pension reform.
More details regarding Illinois' pension burden are available at illin.is/top50pensioners.
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