By: Diane Benjamin
Bloomington has done nothing to stop employees from “spiking” their pensions. Besides collecting a higher pension for life at taxpayer expense, taxpayers are forced to pay penalties to cover the increased cost.
The “spiking” comes from accumulating unused sick days. Bloomington has changed the policy for new hires, but they refuse to change it for existing employees. Avoiding these penalties is very easy – the employee gets paid when they leave. Right now the employee can say when they want paid – months before retirement. This makes it looks like their ending salary was much higher and thus entitling them to a higher pension.
Below is the first list of accelerated payments taxpayers forked over to IMRF (the retirement administrators) as of July 2016: https://blnnews.com/2016/08/20/proof-the-council-is-immaterial/
This information was obtained by FOIA from IMRF.
Below is an updated list showing the total taxpayers have been fleeced since that story:
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$2,032,110.23
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Remember that $2 Million+ when the Council raises your taxes yet again.
Government in Bloomington exists for government employees – not you.
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Even if they capped this at $25,000 or $50,000 in spiking, it would save millions of dollars for state taxpayers for the life of these employees and any pension beneficiaries. I personally do not agree with this policy, as this is not compensation earned by the employee in the year they are taking the benefit.
I wonder if any of them EVER feel even a LITTLE bad about stuff like this? I doubt it. SOME animals ARE more equal than others in their eyes. I know someone has to work for the City, it’s just a pity that the city is such a corrupt and unlikable place. It’s so entrenched now, I don’t know how or if it could ever change. There would need to be a complete overhaul from top to bottom.
The change can happen but Renner has GOT to go. Look at all the damage he has done with his culture change. Yes it can be reversed and perhaps a good start would to be support Marc Tiritilli if he runs for mayor in Normal again. Although it’s cross town, that is the best glimpse of light that I can see.
I agree – since a fish rots from the head down, a new “head” could quite likely start reversing the process. The current “heads” are rotted to the point of putrid.
IMRF administrators call the practice immoral. They have offered municipalities procedures on how to make changes. The Council recently approved a Union contract that has pension spiking written into it. The employees have a sense of entitlement claiming they have budgeted the increase to their retirement. The Council can begin to make changes to the non-union employees but claim “that wouldn’t be fair.”
Springfield attempted to make the change with IMRF accounts and the unions went to court. The Court sided with the City of Springfield. Apparently the unions have appealed to the Labor Relations Board claiming “unfair labor practices.” Supposedly, the ruling has not been made. Bloomington is afraid of a legal battle but would rather waste $2M.
The reason the city mgr, mayor and employees have zero interest in doing away with pension spiking is because they do not care that they are taking more of our money from us. It diminishes our quality of life, which is just fine with them. BTW, these salaries are obscene. They do not earn these exhorbitant salaries.
IMRF is a different “pension” than what the Police & Fire are enrolled in. The Police and Fire DO NOT spike their pensions. IMRF is a retirement account similar to an IRA or an Annuity and is NOT tied to the Illinois Constitution. The employees choose to enter an agreement with IMRF.
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I’m pretty sure they are tied to the constitution. Same rules apply to diminishing and they get 3% a year
The ruling in favor of the City of Springfield says otherwise regarding IMRF. Illinois Supreme Court refused to hear an appeal. Police & Fire probably are tied to the Constitution.🐥
Police and fire are separate and underfunded
Too many unions…too many “pension” plans.
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The article’s ending comment pretty much sums it all up:
“Government in Bloomington exists for government employees – not you.”
This practice started decades ago when municipal employees’ wages were low. However, that is no longer the case, and spiking needs to end. I’ve worked for city, county, and state governments in four other states, and have never seen anything like this.
You are correct Yamaha. It was the same for State employees, until the unions got involved and we see the results. Holy crap! Are we getting fleeced or what?
I hate seeing everyone attack the employees on here. It’s management and councils fault. If someone was going to give you a extra 500 a month after u retired wouldn’t u take it. The employees sit and watch the city waste and waste and waste.
They had meetings with management and threw a fit about any changes. The council is too chicken to say “tough”. Where are 5 with the guts to put it on the agenda? MIA.
The Solid Waste Union has pension spiking written into their contract. It’s not the employees’ fault? The Council shares equal blame. The Council has been prodded to make the change but they refuse.
Local government workers vote in good numbers at local elections. Regardless, I’m not convinced any member of the Council is in any way disturbed or even mildly concerned about this practice. How many of these future pensioners will flee BN and Illinois after they retire because of high taxes? Oh, the irony!
Union employees vote on the contracts. They can act responsibly if they so desire.
This information is abject confirmation of the morally corrupt Renner Administration and City Council. Last year I asked my Alderman when the City Council would halt pension spiking; he said there was nothing he could do.
He lied.
You know that; I know that; Mr. Mathy knows that. Nothing changes!!