By Joe Ragusa
BLOOMINGTON – The City of Bloomington will consider a proposal to change its policy that allows employees to spike their pensions.
Public employees can use accrued sick time, vacation time and retirement bonuses to raise their average salary in order to get larger pensions. Mayor Tari Renner blames the problem on the state.
“To a large degree, if Springfield would get its act together, it could allow the local governments to have greater control over their pensions,” Renner said. “Right now, we’re at the mercy of state law and state courts.”
Renner said the city might take a loss in court over the issue if they pass anything but it’s worth a shot to keep pension costs down. The exact proposal is still being crafted but Renner said it will be up for consideration Monday.
The city paid $1.2 million after the Illinois Municipal Retirement Fund found 16 employees with inflated pensions in Bloomington since 2012, according to figures published by the Chicago Tribune. The IMRF flags pensions it suspects are spiked, using metrics from a 2012 state law, and demands immediate payment for costs associated with the padded payouts.
Joe Ragusa can be reached at [email protected].
Listen to the entire interview here.
