Proposed bill to suspend pension payments while drawing a salary

Excerpts from the NorthwestHerald.com:

A new proposal has made its way through the Illinois House, aiming to prevent retired public safety workers from taking full-time government jobs while still collecting their pensions. The bill, House Bill 1334, was introduced by Rep. Jack Franks, a Democrat from Marengo, and passed with a strong 105-2 vote on Thursday.

The law would stop police officers and firefighters from receiving their pensions if they take on full-time positions in state or local government that also offer a pension. Franks argues that it's unfair for taxpayers to pay for two salaries when someone is already receiving retirement benefits. Under the proposed law, the individual’s pension would resume once they leave the post-retirement job.

"This is an insidious situation and an outrage. Retirement should mean retirement, and that’s exactly what my bill ensures," Franks stated.

If signed into law, the bill will go into effect next year. It was introduced in response to several high-profile cases where retired officials were able to collect both a salary and a pension, adding to the growing burden of pension liabilities across the state.

One such case involved Jim Wales, the former Police Chief of Lake in the Hills. After retiring in 2004, he was given a civilian position as director of public safety, allowing him to receive both a salary and his pension. He eventually left the role in 2014.

Another example is Jeff Lawler, the former Barrington Police Chief. He retired in 2009 and received a 6% raise as an incentive. Shortly after, he was hired as village manager, earning a substantial salary while still collecting his pension. In 2013, he received $109,108 in pension payments, while his salary as village administrator was $147,212.

Similar situations have been reported in cities like Danville, Chicago Heights, Hinsdale, and Franklin Park. Although the bill specifically targets public safety workers, the practice is not limited to them and occurs across various levels of Illinois government.

In 2022, the Rockford Park District nearly allowed Executive Director Tim Dimke to retire, only to later hire him as a consultant. However, the Illinois Municipal Retirement Fund denied his pension request, determining he wasn’t truly retiring. Dimke ultimately decided to stay in his role as director.

This bill reflects growing concerns about pension abuse and the need for greater accountability in how public funds are managed.

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