By: Diane Benjamin
The daily rag has a new story about pension spiking at the City of Bloomington. In an effort to deflect from the City’s unethical practice of allowing employees to spike their pensions with unused sick days, they even call the practice legal.
It is legal because Bloomington’s Mayor, City Manager, and Council have no guts and wasting money is common practice! After all, it isn’t their money and they know where to get more if necessary – YOU!
This is more proof government exists for government employees and friends. The story claims a 1995 policy allowed these payments to be spread over 3 months so pensions could be spiked. Guess who was Mayor in 1995? 
It makes perfect sense Jesse Smart would be behind allowing employees to scam the system for higher pensions – I hear he is working to get Tari Renner reelected. The circle of scam is complete!
According to the story – –
1995 was when the “POLICY” was created.
Did the Pantagraph bother to ask why the “policy” hasn’t been changed? It has only cost taxpayers close to $2 MILLION dollars!
The IMRF website has complete instructions for how to avoid pension spiking and therefore save taxpayers money. Obviously the City, the Pantagraph, and this Council have no interest in changing the “policy”.
The first question every current Council member should be asked is WHY hasn’t the policy been changed? If they say it can’t be changed, they are lying. They are afraid of their employees!
Q – Employees are paid unused sick and vacation accruals upon retirement, which often results in an Accelerated Payment due to IMRF. Is it possible to avoid reporting this lump sum upon retirement? Why do we have to report that payment to IMRF? Why are unused sick and vacation accruals not an exemption for Accelerated Payments?
A – Compensation for your employees should be considered as a whole, not on a piece-by-piece basis. Any compensation, including lump sum payments for accrued vacation and sick time, is IMRF earnings and must be reported to IMRF if paid during the employment period or in the month following the month of termination. If paid after the month following the month of termination, it is not reportable to IMRF. This is part of the IMRF definition of earnings and cannot be changed by an employer. While vacation time must be paid out immediately under 820 ILCS 115-5 – which is the Illinois Wage Payment and Collection Act, not the Pension Code – unused sick time can be delayed until the second month after termination (payments in the second month after termination are not reportable as IMRF earnings.)
Fleecing citizens is a way of life in Bloomington!
- Unused Fire Station #5
- Unused water tower in Normal
- Bleeding red Coliseum
- Pension spiking
- Gold-plated salaries and benefits
- Subsidized downtown hotel is next
Think the WRONG people keep getting elected?
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Knew you would jump on this. Here is another Q/A that could be applied in Bloomington.
Q – Our Collective Bargaining Agreement with our teachers allows us to pay out sick time after the teacher has been retired for more than one month. Would something similar be permissible under IMRF? Can you delay paying accrued sick time two months after retirement?
A – Unused sick time can be paid the second month after termination. The wages reported in this manner are not reportable to IMRF, and therefore will not increase the member’s pension and the cost to the employer.
Isn’t Bloomington “Home Rule?” Can’t it change policy anytime?
They are chickens. Of course they can, provide Kleenex to the staff. Of course, the huge damage is already done.
Uh oh at 7:16 pm someone posted a link to the truth, this website and the story was pulled from the front page of the gossip newspaper.
Honestly any private sector employer would have ended that policy and you as an employee wouldn’t have a fat chance of ever getting it even if you sued.
The Pantagraph pulls legitimate comments all the time. They only report what the City tells them to.
Wonder why the HR director didn’t attend this workshop!! A memo from IMRF was sent to the City in 2011 outlining their new policy including reporting the increased expense to Council as a result of pension spiking. Fast forward to 2016 and the Council is making a big deal about another State “mandate.”
FOIA the existing employee hand book, heard there’s something about must be there 20 years? How long has she been there?
I did FOIA it a year or so ago. I’d have to look it up, but I recall it was a long time.