Loophole lets union officials claim big teacher pensions
Last fall, Ed Geppert, then president of the Illinois Federation of Teachers, co-wrote a scathing public essay that alleged some politicians and pundits in Illinois were "waging a relentless war against public employees over state pensions."
The "claim that the state pension shortfall was caused by overly generous pension benefits paid to state employees and teachers is provably false," stated the essay.
What Geppert didn't mention during that debate is that he personally was already getting an annual pension of roughly $185,000 — far more than most working teachers make in salary — through that same struggling system.
Geppert taught in the Metro East for seven low-paid years in the 1970s before leaving teaching and rising through the union ranks for three decades. Thanks to a little-noticed loophole in the system, he was allowed to apply the regular state teachers' pension formula to his much higher union salary.
The formula is based on an average of the retiree's highest four recent years of salary. For many teachers, that average may be around $50,000. For Geppert, it was more than $200,000 because of his union salary, which was six figures through most of his IFT tenure. That average was helped along by a salary spike of about 15 percent, to $260,000, just before he formally retired in 2004.
There was nothing in the law to prevent him from continuing to collect that pension after he returned to the union as its president three years later.
When asked last week about the arrangement, Geppert's combative tone from the essay had become more pragmatic. "I followed the law," he said. Using the system as it was available to him "was only the prudent thing to do."
Prudent, eh? Geppert stopped working as a public employee in the pension system in 1977, back when his average pay was only $12,100. Now he is drawing $186,000 a year from that same pension fund. That is patently absurd. If Geppert continues to draw his pension for another ten years we will have taken out over $3 million dollars out of the fund.
And Geppert is not alone:
Among former Metro East teachers who went on to boost their public pensions through union positions, the Post-Dispatch review of records found, was Terry Turley, a former East St. Louis schoolteacher. Records show Turley left teaching in 1995 to work for the IFT, making a union salary of between $90,000 and $157,000, then getting a final-year spike to $184,000 in 2005. Turley's resulting pension annuity through the Teachers' Retirement System is about $129,900.
That list also includes ex-teachers such as Andrea Baird, who taught in Carrollton for 13 years in the 1970s and 1980s, topping out at a salary of $17,300. After joining the staff of the IFT, her salary roughly doubled, then continued to climb, to $165,000 by 2003. She retired a year later, with a $32,000 final-year raise to $197,000 — setting up a $140,700-a-year pension annuity through the teachers' pension system.
Neither Turley nor Baird could be reached for comment despite messages left last week and on Tuesday.
While some pension recipients spent most of their careers as union officials, others actually did teach for most their careers, then were able to substantially boost their pensions with just a few high-paid years with a union.
That was the way it worked for Martha Bowman, who spent 33 years teaching in Marion, climbing to a salary of about $62,000, according to records. She then spent her last six years before retirement with the Illinois Education Association, the state's second major teachers union. There, her salary rose to $143,500 in five years — $24,000 of that coming in a final-year boost — setting up a retirement annuity of about $100,000 annually, more than twice what it would have been for her teaching service alone.
It's crazy. It also, it must be noted, is not a loophole. "Loophole" suggest an unintentional ambiguity in a law or regulation. This was very clearly intentional, and a legalized fleecing of Illinois taxpayers and the rank and file teachers the unions are supposed to be supporting. It amazes me liberals can bitch and moan about CEO pay for Fortune 500 companies while at the same time signing off on the pillaging of millions, if not over a billion dollars nationwide, from the pension funds of rank and file teachers.
And make no mistake, these unions officials want this "system" to carry on forever, because, they say, they work hard not like those lazy-layabout-all-summer teachers:
Bowman said she doesn't agree with the move in Springfield now to prevent union salaries from being applied to the teacher pension system. "Most teachers work nine months out of the year. When you're a union leader, you're on call 24/7. You don't have time off. There are a lot of weekends and evenings."
Geppert, the former IFT president, also is opposed to the legislation.
"I think it's a sad thing to occur," he said. He predicted it will be difficult to lure high-quality people into union service without allowing them access to teacher pensions.
That's right. What could possibly induce a teacher making $35,000 a year from taking a job making over $100,000 a year? Hmmm.... I wonder.
I'm sorry, but there is no rational reason why highly paid union officials should be in the teachers pension funds. By all means, set up your own pension fund for union officials, and even apply for a teacher's pension if you are properly vested in it. However, that pension must be based solely upon your work and salary as a teacher.
That's how it would work in the real world.
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