More on Quinn Pension Plan

As if requiring public employees and teachers to work until 67 isn't tough enough medicine to swallow, there's even troubling news with the Quinn Pension Plan.

Right now teachers are required to pay slightly over 9% of their pay into the TRS system.  Under Quinn's plan that amount will be increased by 3%.  In other words, teachers will be paying slightly under 13% into the fund for as long as they continue to teach.

Lots to think about with this increase.  First of all, many teachers in many school districts pay this out of their check rather than the district picking up the cost.  So, let's say a teacher receives, on average, a pay raise of 2%.  By a teacher picking up the 3% TRS tab, that teacher will actually by losing ground.

Here's another way to look at the increase in the TRS contribution.  If districts do in fact pay the 3% increase then the district, aside from other expenses, will have to find the funding to take care of this contribution to the system.  This will definitely impact the budget concerns of a school district and very well may means cuts or an increase in property taxes.

By the way, this 3% increase in teacher contributions to TRS is not a one-time deal.  This will go on for many, many years.   It will take a number of decades to wipe out the $83 billion shortfall in all of the state's public employee pension programs.

I realize the state has a huge pension liability problem but putting the onus on today's teachers for problems largely created by the state's past failure to live up to past obligations does not sit well. 

Thanks,
Dick