State Representative Martwick and the move to privatize teacher pensions.

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State Representative Robert Martwick.

A few months back I got into a discussion with State Representative Robert Martwick about Tier III teacher pensions.

Martwick, a Democrat, heads the legislative pension committee in Springfield and parades as a friend of teachers.

He argues for a plan to privatize teacher pensions and move them from a defined benefit plan to a defined contribution plan.

Yesterday we received the following from the Teacher Retirement System.

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I have seen this coming since the Illinois legislature passed a Tier III to try and fix what they screwed up with Tier II.

There is a looming crisis with Tier II teachers, as the first are now expected to retire as soon as 2021. The pension they receive will likely not meet Social Security requirements of “Safe Harbor” and they will file suit to be made whole.

As former Chicago Mayor Rahm Emanuel used to say, “Let no good crisis go to waste.”

In this case, the looming crisis with Tier II allows for privatizing the system and moving the costs from the state to the local district.

Which is a disaster for local already underfunded school districts.

We have been waiting for a while to see how the Tier III will work out because, as usual, the legislature passes shit without worrying too much about details and consequences.

Like when they passed Tier II which created the mess that required Tier III.

 

 

 

14 thoughts on “State Representative Martwick and the move to privatize teacher pensions.

  1. Fred – great site. I don’t always agree, but I do like the info. Can Tier 2 participants really retire as soon as 2021? Isn’t that only 10 years after Tier 2 began? That seems like a short period of time to begin drawing a pension. Can you explain?

  2. I wonder if Richard Ingram will “take advantage” of the chance to move to Tier III. Bob Lyons

    Sent from my iPhone

    >

  3. SURS has always had a DC option usually taken by Professors and administrators who don’t expect to be in Illinois long. Some schools off a 403 b but with no match we just used our IRA.
    That said is this just adding this like SURS and calling it tier 3?

    1. It creates, for the first time, a private option, moves pension payment obligation to the local district and takes money from TRS.

  4. Fred,
    Wont be long before teachers have a “regular” pension just like regular folks.
    How long do you think you can guarantee a flow of money with money from taxpayers that is not guaranteed?
    You must have taken economics at Boston College w AOC.

    1. You mean a “regular pension” like Social Security. I paid into that for 20 years before teaching and entering TRS and receive back 30% of the benefit. The “flow of money from taxpayers” is called compensation for working in the public schools. 11% less than what someone with comparable education and training receives in the private sector And it is less than employers are required to pay into Social Security. I wish I took economics with AOC. Smart woman.

    2. Dear Dip Stick, Teachers pensions are very slightly above the average for all pensions, but are at the very bottom of the average for college graduates. While about 22% of people in Illinois are college graduates, 100% of teachers are college graduates. The teachers have to spend about 5 years and a lot of money to go to college before they ever get a paycheck, and they pay into the retirement system from the first and every paycheck until they retire. Teachers are underpaid and their pensions are not what is causing a shortfall. The pension system shortfall is caused by the state not paying the employer match for decades, NO OTHER REASON.

      Anon

  5. What a picture! Speaks “1,000 words” as to what an arrogant bum he is!
    My husband & I discussed the fact that he’d carefully crafted the elected Chicago School Board bill so that it WOULD NOT be passed–“TWENTY ONE” members? Going into effect in “FOUR” years?
    But he tricked himself–whatever his feelings toward MAYOR Lightfoot are (& I have my own feeling that they’re not favorable), he helped to ensure her election by his making a fool of himself in that widely circulated kerfuffle picture in which he towered over her (very IQ45-like in the HRC final debate), but she stood her ground & took him down in a “nevertheless, she persisted” stance.
    He’s a DINO!!!

    1. Sorry to hear of your unspecific negative feelings about the Mayor. I think in the few weeks that she has been in office she has done pretty well. But then I speak from a voter who voted for her, so perhaps that’s my bias.

      1. Oh, no, I don’t have “unspecific negative feelings about the Mayor.” My negative comments were directed toward Martwick, who was attempting to bully her…& failed. I capitalized the word MAYOR because I think people like Martwick need to recognize the office & be collegial, rather than priggish.
        Again, he’s a DINO! She’s the real deal.

        If I lived in the city, I definitely would have voted for her. So far, so good!

  6. AOC went to Boston University not Boston College.On social Security my wife can’t even get my survivors benefit because of the windfall law.

  7. Wonder which of our state legislators have a ‘connection’ with Cammack Retirement Group of NY? Could it be that Madigangster, Martwick, Governor Jelly Bean, or some others of our finest have their grubby little hands involved? Just wondering what was the vetting procedure for determining what ‘retirement group’ was chosen and how many were rejected. Were there public hearings or notices? Were people like Doug Strand or his predecessor from the TRS board involved? There seems to be more questions than answers. No surprise there!

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