Isbe Contributes To Pension Spiking For Retirees

In only four years, the Illinois State Board of Education itself cost taxpayers an additional $592,619.69 in penalties because of end-of-career pension spiking for retiring staff. Pension spiking is a practice of increasing government employees’ salaries in the final few years of their careers to boost how much they will receive in retirement. This can be enhanced further by adding unused vacation and sick day payouts.  Before the new budget took effect for the state, Illinois law required pension funds to charge any local employer, such as a school district, the cost of increasing public employees’ salaries more than 6 percent at the end of their careers. Beginning July 1, pension funds require the local employer to cover the cost of increasing employees’ salaries at the end of their career more than 3 percent. An investigation by Illinois News Network found school districts across the state – or their taxpayers – paying millions of dollars extra to the Teachers’ Retirement System because of spiking salaries over 6 percent in the four years before July 1. TRS records show that 13 years after lawmakers passed a law designed to limit big pay hikes before retirement, many school districts continue the practice and stick local taxpayers with the penalty payments for doing so.

Sections:  u.s.   
Topics:  Illinois   McHenry County   Crystal Lake   
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