There is still much that is not explained about the provisions of SB2404.
Choice A for retirees calls for a two-year (non-consecutive years) COLA freeze.
I suppose that if you knew when that was, the best two years to pick would be your last two years.
Otherwise, the best would be the earliest two. But many teachers who retire before they are 61 already must wait until their COLA kicks in.
In any case, we (and by “we” I mean my Skokie IEA Retired colleague, Gerry Berkowitz) did a calculation of the cost to the TRS retiree who opts for Choice A.
Here is my calculation of the additional cost to the state above what they already owe:
0
And without a change in the way revenue is raised, there is no way the state can pay what they already owe.
Fred Klonsky 
Gerry! All I can say is WOW! This is perfect evidence as to why legislators want to go after our COLA! I do not have this collaborated (but it comes to me from a reliable source!) however it was told to me that each year of a COLA freeze “saved” the state 10 Billion dollars. The two Freeze years account for 20 billion of Cullerton’s 50 Billion in pension savings.
For any retiree – new , middle years -senior — the COLA freeze is a hit! I think on the surface it would engender the Question for “the SB2404 Negotiators” — what were you thinking?? I just would caution us to realize that SB2404 was not arrived at in a vacuum! It was hammered out in response to Madigan’s fright train of SB 1. The IEA and the colaition was responding to the likely hood of SB 1 “blowing through the House and Senate” and landing on the Gov’s desk!
Wish I was better at math — I wonder what Madigan;s $900 a year non- accumulating COLA would cost a 30 year retiree!?? Gerry could you figure that cost to a retiree!!?? Bob Haisman
Bob you keep reaching for that lipstick.
Bob, SB2404 is a pig. You keep drying to dress it up with lipstick.
Madigan’s $900 a year COLA costs that $40,000 retiree $311,516 over 30 years.
Dear Anonymous …. The problem with these pension proposals is that you are never quite sure if you have the most accurate numbers and how terms are being defined. Even after a bill might get passed it must be run through JCAR (Joint Committee on Administrative Rules) where definitions and interpretations abound over what the law really did/will say! That is another whole arena for lobbying – crucial lobbying — JCAR!
I might have taken my eye from the ball Anonymous — maybe I have a basic misunderstanding of Madigan’s SB 1 as far as our COLA goes. There is a formula that rewards you a cola payment based on years of experience. The most generous stipend is $900. However my understanding was that Madigan’s SB1 was NON- accumulative. so when I did the math — the SB 1 Cola would gig the $40,000 mythical retiree $836,016 not $311,000. Also I can not find out for sure — right now if there is one more Madigan kicker that is in or out of his Cola formula. At one point Madigan’s Cola proposal also included the language that said — if you earned ANY Social Security check it dropped your COLA to $700 per year – also Non-accumulative.
Not that 100,000 was made enough. Not that 300,000 under SB1 was worst but I think the figure for the mythical retiree under SB 1 is $680,000 and perhaps even lower if it turns out the stipend is $700 for a teacher with any Social Security .
Bob Haisman
Retirees who paid into a pension and worked a second job to get social security are intelligent to do so. Why on earth do they think it is fair for those benefits to become either/or?? NO, if I receive Social Security it is because I worked for it and earned it.
Fred, regarding the “staggered COLA freeze, you wrote: “I suppose that if you knew when that was, the best two years to pick would be your last two years.”
You may have hit upon the solution! Assuming we annuitants are allowed to elect which years to select as freeze years, perhaps we could just defer that decision indefinitely… until the end comes. Then the state could take their portion.. of nothing.
if these numbers are true, why am i being urged to call my representative to vote FOR the Cullerton bill??????
KEN….HMMMMM because the Cullerton Bill is light years better that Madigans SBI.
Because the Civic Federation supports SB1 and HATES the Cullerton/IEA SB2404.
Because the unions had the courage to reach out and talk, compromise, negotiate a better bill. a Constitutional bill.
and yes because of the Numbers — Yes SB2404 would cost a mythical retiree a bunch over his/her career but not as much as Gerry’s chart suggests probably “only” $57,037.56 for typical male and “only” $74,387.60 for typical female. Plus Gerry’s chart as great as it is supposes SB2404 in a vacuum….SB2404 was negotiated as an alternative to true Pension Killer SB1. My mathematical resource people are having a bit of a debate of the true cost of a mythical typical retiree under Madigan’s plan but the figure I think is accurate (thou I’m willing to be corrected) is $540,000!!!
Bob Haisman
this all seems to be asked if you want to be beaten by a big stick or a slightly smaller one, and it seems many are telling us to pick the smaller one and be happy about it. can’t we say we are going to simply choose not to be beaten!!
I love it, Ken!! Nail on the head!!
Why should it cost us anything? We paid our part in return for promised benefits! Re: Social Security. If you qualify for SS, you already only get half of it, if you get a public pension. I don’t care how you paint it, it’s still a PIG!
When I originally commented I appear to have clicked on the -Notify me when new comments are
added- checkbox and now whenever a comment is added I recieve 4 emails with the same comment.
There has to be an easy method you are able to remove me from that service?
Many thanks!