Kankakee Times

State Rep. Lindsay Parkhurst (R-Kankakee) has followed through on her campaign promise to refuse the public pension provided to legislators.

"One of my first decisions as your state representative was to refuse the lavish, generous pension that lawmakers receive for their part-time 'work' on behalf of the people," Parkhurst posted on Facebook. "Public service was never meant to be a career where politicians can nickel and dime taxpayers. I enthusiastically support any and all legislation to completely eliminate pensions for politicians."

The decision to opt out of the General Assembly Retirement System (GARS) is irrevocable. Legislators who choose to participate contribute 11.5 percent of their yearly salary to the system.

GARS is vastly underfunded and at its current rate will be out of money in approximately three years, according to the Illinois Policy Institute’s review of figures produced by the Commission on Government Forecasting and Accountability.

Parkhurst is one of the 52 members of the 177 General Assembly members who have refused to participate in GARS. It was one of several campaign promises she made.

The pension crisis in Illinois is growing, with the state owing approximately $130 billion in unfunded debt for the five state pension funds. The Illinois Policy Institute pointed out that the average Illinois household owed $7,600 in pension debt in 2002; that debt has grown to $27,000.

While underfunding is a factor, the dramatic growth in benefits granted to state employees has also driven the rapid rise in pension fund debt. Since 1987, benefits owed to workers and retirees have grown by nearly 1,000 percent, while state income has grown by 227 percent and inflation by 109 percent.

Twenty-five percent of the state's general fund budget is dedicated to pension costs – and the costs keep growing. The massive increase in pension funding has forced cuts in social services, education and other essential services.

The exodus of workers from Illinois is part of the collateral damage caused by the pension costs, which have led to higher taxes and a lack of a state budget. As workers leave, they take their income and tax revenue with them. The tax base decreases, and lawmakers raise taxes to try to make up for the lost revenues, leading to a downward spiral.

Parkhurst ran on a platform that included a balanced budget and pension reform. While discussion regarding the legislators' pensions and overall pension reforms continue, no laws have been passed. That situation might change with the 100th General Assembly.

In addition to legislators voluntarily opting out of the retirement system, proposals are being floated in each chamber. State Rep. Tim Butler (R-Springfield) co-sponsored a House bill that would end new enrollments in the retirement system. Butler also opted out of GARS when he was appointed in 2015.

The Senate compromise budget also proposed a pension plan that would enact similar restrictions on new participants in GARS. The budget plan, hammered out by Senate President John Cullerton (D-Chicago) and Republican Leader Christine Radogno (R-Lemont), is still a work in progress, with more needed on permanent property tax freezes, workers' compensation reform and education funding.

The proposed legislation would affect only new participants, due to wording in the Illinois constitution that restricts any diminishment or impairment of existing pension benefits. The Illinois Supreme Court upheld that wording and ruled that lawmakers could not reduce pension benefits, including health benefits, in 2015.

After the January swearing-in ceremony, Parkhurst pledged her continued support for reforms and a balanced state budget.

"Illinois is in dire financial shape, and Illinoisans continue to lose confidence in the state's ability to navigate through this crisis," Parkhurst said. "I welcome the opportunity to work with this new wave of reform-minded legislators to address the needs of our state and focus on the issues and not political expediency.”