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| Wants a teachers pension too. |
A union lobbyist who qualified for a teacher pension windfall by subbing at a school for one day is now suing a state retirement board because his benefits were scaled back once his sweet deal was exposed.
Retired Illinois Federation of Teachers lobbyist David Piccioli, 65, is arguing that lawmakers violated the state constitutional provision that says a pension cannot be “diminished or impaired” once it is set.
Piccioli is already collecting $31,485 from the Teachers Retirement System. If he wins his case, his teacher pension could increase by more than $36,000, the Tribune estimated — more than doubling what he gets now.
Piccioli also gets a second state pension worth just over
$30,000 that covers time he served as a legislative aide. Both pensions are based on an average of his six-figure salaries as a union lobbyist. […]
If Piccioli’s lawsuit succeeds, the outcome may suggest to lawmakers that they cannot reduce pension benefits under any circumstances.
The lawsuit is here.
* From Piccioli’s press release…
Since the 1980s, the IFT has been one of 800 authorized employers for TRS, enabling its staff to earn teacher pension credits for their work on behalf of public education. Employees are required to pay all TRS contributions, both individual employee and employer shares so there is no taxpayer cost to the system.
In 2007, Mr. Piccioli obeyed all laws to enroll in TRS on his first day as a classroom instructor. His enrollment was identical to 300,000 other members who joined the teacher retirement system after their first day of teaching. He earned TRS service credits going forward for IFT employment from 2007 until retirement Dec. 31, 2012. He paid all contributions with personal funds from an IFT retirement annuity.
Separate from his lawful enrollment in TRS, the General Assembly adopted PA 94-1111 in 2007. The law offered an opportunity for scores of people to upgrade their service credit in public pension systems. Piccioli joined them in upgrading his service with nine years of credits for IFT employment from December, 1997 through May, 2007. He paid all TRS contributions with personal funds out of pocket.
In total, Piccioli contributed $365,000 out-of-pocket to TRS to cover the full “normal costs” of his pension. As required by law, he paid all contributions for both the individual employee and employer. Those contributions, including interest compounded at 8.5%, equaled 20% of his salary.
Because he paid both sides of pension contributions–both employee and employer shares—plus compounded interest, a legislative fiscal analysis for PA 94-1111 said taxpayer costs for his pension are “expected to be minor.”
Pension language in PA 94-1111 (SB 36) was not controversial at the time. It passed the Illinois House 109-6-0 and the state Senate 55-0-1.
Pension upgrades with past service credit are a common practice in the Illinois pension code. Statutes have enabled thousands of individuals to purchase pension credit in all public systems for work in military service, private school teaching, education-related associations and other employment.
* Here’s my problem, though. The IFT endorsed Rod Blagojevich in 2006 after obtaining from him a solemn oath that he would not rule out an income tax hike. He flip-flopped on them within a day or so. Instead of dumping him for lying, the union continued backing Blagojevich, giving him hundreds of thousands of dollars. RRB signed that above pension bill into law in February, 2007.
That timeline has never been adjudicated, however, so proving any sort of quid pro quo will be very difficult if not impossible. Therefore, Pitch probably has a decent case.
This is not a test case. The guy really wants the money. Teachers pensions should be for teachers only.
ReplyDeleteSomething stinks.
ReplyDeleteTwo years into his reign as Chicago's longest-serving mayor, Richard M. Daley took advantage of the state's convoluted pension system to significantly increase his potential payout while saving $400,000 in contributions, a Tribune/WGN-TV investigation has found.
ReplyDeleteDaley, a former state senator, made it happen by briefly rejoining the legislative pension plan in 1991. He stayed there just one month before returning to Chicago's municipal pension fund, but the switches made him eligible for benefits worth 85 percent of his mayoral salary — a better rate than all other city employees receive.
He was just 49 years old at the time. Even if Daley had never won another election, he could have started collecting a public pension at age 55 of $97,750 a year. Without the steps he took, his public pension benefits at that age would have been worth just $20,686.
Of course, Daley went on to win five more elections, remaining ensconced on the fifth floor of City Hall for the next two decades. When he retired last May, his pension benefits had grown to $183,778 a year — about $50,000 more than he would have otherwise received.
Daley declined to be interviewed for this story. His spokeswoman, Jacquelyn Heard, wrote in an email: "I can only assume that his pension was handled in the same manner that anyone's would be, given the length of service — nearly 40 years — in government."
The Tribune and WGN-TV already have detailed how Daley used the city's pension funds for political purposes. In 1991, the same year he secured his much larger pension, Daley's administration helped aldermen land a dramatic pension increase, providing them with benefits far exceeding those of the average city worker.
The same legislation, rushed through the General Assembly on the last day of the session, also gave private labor leaders public pensions based on their much higher union salaries. Under Daley's watch, former Chicago Federation of Labor President Dennis Gannon was given a one-day city job that allowed him to collect a public pension based on his $200,000 private union salary.
In 1995, when Daley wanted to fund his school reform package, his administration pushed legislation that allowed it to divert $1.5 billion from the Chicago Teachers' Pension Fund over a 15-year period.
All the while, Daley blessed benefit increases for city workers without ensuring that payments into the funds would cover the costs, a problem worsened by the economic downturn. Today, the combined unfunded liabilities of Chicago's four pension funds have grown to nearly $20 billion, which doesn't include the $6.8 billion shortfall at the teachers fund.
The city's pension debt is not only damaging Chicago's financial stability, but also breeding cynicism about government's ability to provide modest pensions to the people who teach the city's children, collect the garbage, run into burning buildings and keep the peace.
"When these plans are misused, there is a price that will be paid by taxpayers and other pension plan participants," wrote Keith Brainard, research director at the National Association of State Retirement Administrators, in an email after hearing of Daley's deal. "But there's another cost, possibly far greater than the financial cost. That cost is the erosion of public support for decent retirement benefits for employees of the state and local government."
reminds me of that politician out here that quit after he got caught with multiple pensions
DeleteScumbag
ReplyDeleterecall yrs ago a young waitress told me and another copper that the reason she was waiting tables at a restaurant on pulaski was because she got caught embezzling funds from the chicago teachers union pension fund office up the street and they didn't want it published but fiered her and she had to pay restitution.not tp brirght tp tell that around but we told a cousin a teacher and she went and closed out her funding account and she told others,never heard any more.
ReplyDeleteAnother example of "Union Priviledge". Unions and union workers can be among the best organizations and the best individuals. However, their entitlement mentality is what is bankrupting the city and state. Teachers got a sixteen percent RAISE during the worst recession in 50 years !!! And they still complain!! I know of NOONE who got a dime more and many who got pink slips or wage cuts during this time. All union heads I have ever met are extremely liberal. It really is like talking to a communist. The one percenters...greed....blah blah.. When I ask simple, straight forward questions of these individuals....like "where are we going to get the money to pay for this? Or didn't you just get a raise? From my perspective, is it not greed to always always always...want....and demand....more and more ? Greed is not only an emotion of the super rich....there are many big home additions, new cars (usually foreign) and plenty of toys in the hands of union people right here in our ward. They make more than many people in Chicago.
ReplyDeleteI took a mortgage application for an Elect Workers union big wig.....he made over 200k per year! That may not put him in the top 1% but sure put him in the top 10 percent....the 90 percent of the rest of us and his union people are mere serfs.....Also I read that approx. 40 percent of all union workers are Republicans ! But unions confiscate their money and use it to promote Democrats about 90 percent of the time. something is not right. Stop worshipping the unions....
ReplyDeleteWhere were these union officials when the contributions were not ring made. Silent and bought off.
ReplyDelete