Illinois, NJ Governors Demonize Teacher Pensions … But Offer No Safety Net

Today’s Springfield Journal Register reports: "Illinois' pension problems go back decades, however, due largely to state lawmakers voting for years to skip or short the annual payment. Illinois now has the worst-funded pensions of any state, with the accounts holding about 42 percent of what's needed."

This means that the state must increase its contributions—or else, in time, the fund will be insolvent and put through bankruptcy, as Gov. Rauner has suggested for Chicago teachers.

Many private sector employees say, “Teachers should have a pension plan like mine—a 401K—and stop taking money from taxpayers.”

Really? 

If you work in the private sector, your employer pays taxes of 6.2% on your earnings. In addition, you pay taxes of 6.2%. The transaction costs you and your employer 12.4% of your earnings. 

Point: Private sector employees rely on taxes for their pension.

What about Illinois teachers? They have no legal method to opt-in to Social Security for their earnings—so once their pension is insolvent, they’re out in the cold.

How many private sector sector workers draw taxpayer provided benefits? 39.5 million people, at accost in 2015 of $53 billion, for an $1,335 average monthly benefit ($16,020). https://www.ssa.gov/news/press/basicfact.html

Compare this to Illinois’ Comprehensive Annual Financial Reports. The 2013 report highlights a typical retired teacher cohort. 
In that year, there were 1,370 teachers who retired between one and four years ago who had accumulated 10-14 years of experience. These ex-teachers received monthly payments of $1,282, or $15,384 per year—less than the figure for Social Security (though the comparisons are only roughly average-to-average figures).

Thanks to Alan for the prompt on this.