The Illinois House unanimously approved March 28 legislation that
would close the pension loophole used recently by retired Cook County
Board Interim President Bobbie Steele to double her pension.
Steele resigned the county commissioner seat to which she won
re-election on Nov. 7 so that she could fill the temporarily vacant
seat of board president. This allowed Steele to collect a retirement
benefit based on her four-month salary as president ($170,000) instead
of her salary as county commissioner ($85,000), an office she held for
more than 20 years.
The move boosted her annual pension to $136,000 a year, with annual
cost of living increases as well. It has been estimated that Steele’s
exercise of the pension law loophole would likely cost taxpayers in
excess of $1 million in additional pension payments.
Six years ago, the Illinois General Assembly amended a nearly
identical passage in state pension law that applies to elected
officials in every county in Illinois except Cook County. The amendment
based pension payout on the average highest salary over a four-year
period rather than the final salary at the date of employment
termination.
House Bill 3578 – sponsored by Fritchey – would close the loophole
by requiring Cook County to follow the same rules as the rest of the
state. It would not, however, be applied retroactively.
“When you have a system that is ripe for abuse, it should come as no
surprise when it gets abused,” said Rep. Fritchey. “While Ms. Steele
was acting within her rights according to the law at the time,
taxpayers in Cook County deserve the same accountability from their
elected officials as do the taxpayers in every other county in
Illinois. Closing this loophole is one step in that direction.”
Cook County Commissioner Forrest Claypool has joined Fritchey in his
support on this issue. Commissioner Claypool noted that pensions for
elected officials are by far the most generous-and that the addition of
“sweeteners” or loopholes in the laws has often added even more
generous returns to enterprising politicians.
“Politicians have consistently rigged the pension laws for their benefit, leaving taxpayers holding the bag,” said Claypool.
In 2005, Cook County had $2.2 billion in unfunded pension
liabilities, up from $85 million in 1996. The state is no better off.
Years of scrimping on contributions, coupled with benefit increases,
has left Illinois with an estimated $45.8 billion pension shortfall,
which is among the worst funding records in the county, according to
the Chicago Tribune.
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Local Politics Money Matters Public Statewide
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bobbie steele john fritchey pension