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State Retirees Called Out For "Lavish" Pensions

By: Jeff Stensland

MARION -- Everyone from retired I-DOT employees to teachers gets a state pension. A Chicago man calls the payouts lavish, and wants to abolish the system.

The retired educators Jim Tobin says are taking advantage of taxpayers are retired superintendents and principals, who managed hundreds of employees. Those school leaders say they are living on less than their counterparts who retired from the private sector.

"There are other ways to reform the system, but something has to be done," Tobin said at a news conference Tuesday.

Tobin is calling out Springfield Democrats for what he calls a four-year surcharge on Illinois taxpayers. It is the hike in the state income tax. Tobin says that money is going to the state's underfunded pension system. A system that is broke, he says, because of retirees taking in close to or more than $100,000 a year.

"Many retired government employees of Williamson and Jackson County receive lavish gold-plated pensions that far exceed average annual wages of workers in the private sector here in this part of the state," Tobin said.

At the top of his list in Williamson County for total pension payout: Albert Storme. He retired from Marion School District in 1985 after 17 years as superintendent.

"Storme is already a pension millionaire," Tobin said.

So far, Storme has received almost $1.7 million by Tobin's estimates in pension benefits over 25 years. That averages out to about $68,000 a year. Storme tells News 3 off camera that is fair, considering he started teaching in 1941, making only $800 a year, and managed hundreds of teachers and support staff.

"The people who earn higher salaries in education are the ones who are, basically, administering multi-million dollar enterprises and have thousands of people under their direction," said Dave Urbanek, Public Information Officer for the Teachers Retirement System.

Urbanek says Tobin's arguments are inaccurate. Urbanek says pension recipients in Williamson County receive about $33,000 a year on average. That is on par with the area's median income.

Tobin wants Illinois to have new hires enrolled in 401(k) programs and pay into social security instead of pensions. Officials say that would burden taxpayers even more.

"As far as putting people into 401(k)s, we have studied that. It actually raises the cost to the state," Urbanek said.