Revelations that former Chicago Mayor Richard Daley used loopholes in Illinois pension rules for legislators to juice
up his own final pension has led to calls for reform of the retirement benefits that state and local lawmakers give to themselves. Perhaps Daley's visibility as a prominent politician will focus more attention on this area not just in Illinois, but elsewhere. Unfortunately, there's plenty of reform necessary from California, Texas and Arizona to New York and New Jersey. But so far few places have done anything significant to rein in lush benefits for legislators, despite an estimate by USA Today last year that 33 states have special retirement laws granting benefits to lawmakers that other government workers don't enjoy.
South Carolina offers the latest lesson in how resistant legislators are to true reform...
up his own final pension has led to calls for reform of the retirement benefits that state and local lawmakers give to themselves. Perhaps Daley's visibility as a prominent politician will focus more attention on this area not just in Illinois, but elsewhere. Unfortunately, there's plenty of reform necessary from California, Texas and Arizona to New York and New Jersey. But so far few places have done anything significant to rein in lush benefits for legislators, despite an estimate by USA Today last year that 33 states have special retirement laws granting benefits to lawmakers that other government workers don't enjoy.South Carolina offers the latest lesson in how resistant legislators are to true reform...
Last year South Carolina's new Governor, Nikki Haley, promised to dial back legislative pensions in her state, where lawmakers can start collecting a pension once they qualify for it, even though they are still in office. As part-time legislators they are paid just $10,400 annually for their service, but their pensions are based on their final salary at retirement plus annual expenses, so that legislators can actually receive a pension that is three-times higher than their salaries. Some legislators who are still in office opt for the pension for obvious reasons--it triples their pay.
Earlier this year, under pressure from critics, the South Carolina legislature voted to require members to contribute more to their pensions. But they left most of the legislative pension system intact. As one critic pointed out recently, even with the changes, taxpayers subsidize legislators' pensions at more than double the rate that they do ordinary government workers in the state. And legislators can still 'retire' while in office and collect a pension.
Very little reform on legislative pensions has moved forward elsewhere, despite press coverage of the perks that lawmakers receive everywhere from Arizona to the Carolinas, Massachusetts, Kansas, Minnesota, Delaware, Rhode Island and New Jersey, to name a few places. It seems virtually impossible to shame lawmakers into treating themselves as they treat others when it comes to pensions. That alone undermines broader reform.
Earlier this year, under pressure from critics, the South Carolina legislature voted to require members to contribute more to their pensions. But they left most of the legislative pension system intact. As one critic pointed out recently, even with the changes, taxpayers subsidize legislators' pensions at more than double the rate that they do ordinary government workers in the state. And legislators can still 'retire' while in office and collect a pension.
Very little reform on legislative pensions has moved forward elsewhere, despite press coverage of the perks that lawmakers receive everywhere from Arizona to the Carolinas, Massachusetts, Kansas, Minnesota, Delaware, Rhode Island and New Jersey, to name a few places. It seems virtually impossible to shame lawmakers into treating themselves as they treat others when it comes to pensions. That alone undermines broader reform.
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