The contention of the teachers union and educators is that they pay for their own pensions. This statement is wrong and not even close to the truth.
Here's how the math doesn't add up. Assumption is a teacher who started in 1980 at age 25, taught for 30 years and retired at age 55 with a final salary of $100,000. Will say their average salary was $70,000 over the 30 years. They pay 10 percent of their pension costs, which would be $7,000 X 30 = $ 210,000. The teacher/administrator retires at 55 and lives till 85 - collecting a $75,000 pension for 30 years. The total paid out to pensioner is $2,225,000. Summary: Pay in $210,000; payout is $2,225,000.
These figures are very conservative from the standpoint of the teacher. In reality, the contributions are really less and the payout higher. The $2 million difference is made up paid by taxpayers - nobody gets investment returns close to this except Wall Street types who have manipulated the system to their own benefit.
The conclusion is that educators take way more money out of system than they put into pension system. I never want to hear the statement from any school official that "we pay for our pension". This is simply not true.
Hopefully, our educators can understand the simple math involved or we all are in real trouble. I hope this hits home with taxpayers who are not educators, government workers - you in the private sector are really paying for these generous pensions and you have the ultimate power to stop it.
Don't count on Governor Quinn or any government official to stop this nonsense. It is up to the majority - the private sector - who will put an end to this fleecing of your money for the benefit of the few.