By: Diane Benjamin
The Town of Normal has to pay into three pension funds: IMRF, Police, and Fire.
The funding for IMRF isn’t horrible, Police and Fire are. What does that say about who the Town management and Council respect and who they don’t?
I’m sure you remember property taxes being raised year after year after year to pay Police and Fire pensions. From this chart in the 5 year budget, that practice is NOT going to change. Why budget expenses when taxes can just be increased? If rising property values or new homes and businesses don’t provide enough money, your taxes will be raised to cover the difference: http://www.normal.org/DocumentCenter/View/13257/2018-2023
The problem is: It won’t be enough!
The Illinois Department of Insurance numbers were charted for all cities in Illinois to show required contributions and the amount actually contributed in 2016. This comes on the heels of the State seizing tax money from Harvey Il to fund pensions.
Normal failed to pay enough for both Police and Fire: http://www.wirepoints.com/wp-content/uploads/2018/04/Police-and-fire-contributions-by-city-2016-Wirepoints-4.25.18.pdf
Bloomington Police and Fire pensions were funded at 53% and 50%, and more than the required amount was contributed. Funding levels in the 50% range aren’t sustainable. The additional MILLIONS Bloomington has paid in isn’t making much of a difference.
See this story from 2013 on Bloomington pension Funding: https://blnnews.com/2013/01/24/bloomington-employees-pensions/
Before the amounts were massively increased to Police and Fire pensions, Police was 58% funded, Fire was 51% funded.
Funding is still going in the wrong direction.
See the actual numbers for Bloomington as of 4/30/17 here: http://warehouse.illinoiscomptroller.com/ProcessSearchResults.cfm?DisplayMode=GETAFR&AFRDesiredData=Pension%20Funds%20/%20Retirement%20Benefits&Code=064/025/30&CFY=2017&Menu=Yes&PrintIt=No
IMRF pension debt was $ 22,884,390 (86.9% funded -2016)
Police pension debt was $ 66,314,753 (52.2% funded)
Fire pension debt was $ 59,397,278 (48.7% funded)
Bloomington also has a Post Employment Benefits liability of $8,974,427.
See Normal’s numbers here: http://warehouse.illinoiscomptroller.com/ProcessSearchResults.cfm?DisplayMode=GETAFR&AFRDesiredData=Pension%20Funds%20/%20Retirement%20Benefits&Code=064/095/31&CFY=2017&Menu=Yes&PrintIt=No
IMRF pension debt was $ 18,232,581 (80.6% funded -2016)
Police pension debt was $ 32,142,000 (51.8% funded)
Fire pension debt was $ 23,981,000 (55.5% funded)
Normal has a Post Employment Benefits liability of $ 20,288,947.
If your eyes glazed over from all the numbers,
all you need to know if moving out of Illinois is your best option. Government exists for government employees, not you.
If people who should receive pensions actually believe they will, they need to wake up. The dominoes are starting to fall.