Fire all the teachers.

 

Which one is John Tillman, CEO of the Illinois Policy Institute?

– By Todd Mertz

Yes–fire all Illonois teachers and public employees.  I am not kidding.  More on that in a minute.

The Illinois Policy Institute (IPI) calls themselves a “leading independent research organization.”

Far from the truth.

They are a right-wing, conservative group with very serious agendas to influence Illinois law and policy.  One of their largest priorities is to dismantle the state pension system for teachers and state workers…completely.

The worst thing is–legislators listen to them, quote them, and use their data.

All the time.

For example, Rep Jeanne Ives, Rep Dwight Kay, and Senator Sue Rezin have cited their quotes and data in recent letters and emails to me.  And according to the Daily Herald, “Senator Jim Oberweis argues the only way to tackle the state’s immense pension debt is to all but get rid of the system going forward.”  It then states, “Oberweis’ plan is backed by the conservative Illinois Policy Institute.”

By the way, all four of these legislators voted for Madigan’s amended SB1, which includes catastrophic benefits cuts for pensioners.

IPI Vice President Kristina Rasmussen was interviewed by Eric Zorn in Wednesday’s Tribune (the Tribune, of course, has the same agenda).  Her suggestion:  “Starting tomorrow, government workers control their own destiny in a self-managed plan.”

That means a 401(k) plan, where there is absolutely NO guarantee of ANY pension.  Remember, we, unlike private sector employees, get no Social Security.

Let’s take a look at history to see how devastating such a plan could be:

In the early 1990’s , West Virginia had a large unfunded pension liability like Illinois has now.  So, in July of 1991, all new hires were forced into a defined contribution plan (401-k) and all active teachers were able to choose if they wanted to keep their defined benefit plan (like we have now) or move to a define contribution plan (401-k).

So what was the result of those who stayed in the state pension system compared to those who jumped ship?

According to the NEA, “Those over age 60 had an average of just $23,193 in their retirement accounts–a trifling amount to spread out over the rest of their lives in retirement.  On the other hand, teacher participants in the pension plan, earning the average salary after 30 years of service, would receive an annual pension of $27,000.”

The defined contribution plan (401-k) “failed in every way, shape, and form.”

West Virginia eventually went back to the traditional pension plan.

Could you imagine being over age 60, retired, and have just $23,193 to live on the rest of your life?

We’ll, Kristina Rasmussen, the VP of the Illinois Policy Institute, doesn’t care.

But worst of all, her superior, CEO of IPI, John Tillman would like to see all IL teachers and state workers fired.

Really, I am not kidding.

In Chicago Now (owned by the Trib, also printed in the regular Trib), Tillman states, “Fire all the state employees. Replace them with contract employees. Then we don’t have to worry about shelling out for extravagant and backbreaking public pensions.”

Can you believe the CEO of a large and powerful “independent” research group said that?

Tillman wants to replace trained, educated, and certified IL teachers with low-paid, temp employees with no benefits.

And yet the Institute claims they want to improve education?  In fact, they have an entire link dedicated to education on their web page.

Ironic, isn’t it?

However, nearly all of the Education link is dedicated to decreasing teachers’ pay, busting unions, and promoting charter schools.  In fact, there really is nothing there at all to actually improve education.  Scroll down for yourself.

The most unfortunate fact is that our legislators are using IPI “facts” and “data” to make their voting decision.  This decision will clearly impact the rest of our lives.

Just scroll down their “Pension Reform” link on their website.  You will see they are up to no good.

Ralph Martire, Executive Director of the Center for Tax and Budget Accountability, has an opposite viewpoint.  As I have written about in the past, his data suggests that pension “reform” will not solve the unfunded liability problem.  He states in the State Journal Register, “It is the unattainable, unaffordable repayment schedule that is straining the state’s fiscal system — not pension benefits and not losses from this Great Recession.”

The million dollar question:  How do we get our legislators to wake up and discredit IPI and pay close attention to the Center for Tax and Budget Accountability?

Ralph Martire will be testifying at the second pension Conference Committee this Wednesday, July 3rd at 9:00 a.m. in Chicago.

I am glad he is.  Let’s hope they listen closely.