While we’re on the subject of Illinois’s public employee pension debacle, this might be an opportune time to remind our state legislators that any solution other than letting school districts bear the full freight of teacher retirement continues an injustice. Chicago residents pay the pensions of retired Chicago Public School teachers through Chicago’s CTPF, separate from the TRS that funds the pensions of other Illinois teachers’ pensions. Chicago residents also fund the state’s contribution to the TRS through their state income taxes. We take a double hit.
I’ll repeat my modest proposal to resolve the issue. Failing pushing the full freight of teachers’ retirements to their home district or absorbing the CTPF into the TRS, rebate to Chicago residents that portion of their Illinois personal income taxes that go to pay the TRS. It’s basic justice.
I also predict that if the full freight of teachers’ retirement are placed on their home districts we will see a wave of bankruptcies, unlike anything ever seen in any state. Local governments just don’t have the power to raise the revenue needed.