Fire service pensions

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Excerpts from the DailyHerald.com:

Mitch Crocetti, chief of the Pingree Grove & Countryside Fire Protection District, earns $117,500 a year in his current role, but he also receives an annual pension of $124,037 from his previous 30-year career with the Wood Dale Fire Department.

Crocetti is one of at least 15 suburban fire chiefs who are drawing six-figure salaries while receiving pensions and building toward second public pensions, according to a Daily Herald analysis of fire pension records.

He explained that smaller fire departments benefit from being able to pay lower salaries to retirees on pensions. “That’s how a lot of these smaller departments can afford to have experienced, educated chiefs,” he said. “Without these kinds of benefits, I don’t know how a smaller community could attract someone.”

However, state Rep. Grant Wehrli, a Republican from Naperville, wants to put an end to this practice. He plans to introduce a bill next session that mirrors the legislation he successfully passed last year for police officers. That law will take effect in January, preventing police retirees from taking new police jobs and collecting a second pension.

“It’s an abuse of the pension system that allows someone to collect a retirement benefit while still working in the same field,” Wehrli said.

The 15 fire chiefs analyzed by the Daily Herald earn an average of $137,597 annually, while their pensions average $104,762 per year.

Robert Hoff, chief of the Carol Stream Fire Protection District, receives more from his Chicago Fire Department pension — $122,472 — than from his current salary of $113,645. In contrast, most others receive more from their active job than from their pensions.

Alan Wax, fire chief of Des Plaines, earns $161,709 and receives a pension of $125,624 from the Highland Park Fire Department, giving him a total of $287,333 annually — the highest combined payout among the 15 chiefs. Next year, after 10 years in Des Plaines, he will become vested in his new pension program.

Madeleine Doubek, vice president of policy at the Better Government Association in Chicago, called the situation “triple dipping.” “A pension is supposed to be something you get when you’re no longer working full-time,” she said. “That’s clearly not what’s happening here.”

In Warrenville, Dennis Rogers Jr. serves as fire chief while also receiving a pension from the Illinois Municipal Retirement Fund as a former sheriff’s deputy. He also participates in the local fire district’s pension plan and is eligible for a second pension in the future.

Some fire chiefs are collecting pensions from their previous departments but opting for different retirement benefits at their new positions. Some even receive up to 15% of their salary contributed to 401(k)-like public employee retirement plans.

Firefighters typically contribute about 9.5% of their pay toward their pensions. Most fire pension funds expect a 7% return on investment each year. If that target isn’t met, taxpayers end up covering the shortfall. Many towns haven’t fully funded their pensions for years, leading to increased costs for residents.

Crocetti argued that past funding shortfalls are the main reason public pensions are under scrutiny. “I don’t get to say I’ll contribute less and catch up later,” he said. “That’s what started the problem, and we’ve lost out on investment income we’ll never get back.”

Firefighters typically receive 75% of their final salary as a pension after 30 years of service, and they can start collecting it at age 50. Their pensions grow by 3% annually.

Most other public employees, like teachers, librarians, judges, or city workers, are part of statewide retirement systems, which prevent them from collecting multiple pensions. These workers usually need over 40 years of service to maximize their benefits.

Meanwhile, there are over 600 separate and autonomous police and fire pension boards in Illinois. This fragmentation is why firefighters and police officers can collect pensions from multiple departments.

“There are many groups that recognize the inefficiency of 600 different pension funds,” Doubek said. “There are better ways to handle this, and the police reform legislation should serve as a model for all public employees.”

Wehrli’s bill will close this pension loophole for police in a few weeks. While police won’t be able to start a new pension from another department in most cases, they could theoretically work for a state agency, school, or legislature and begin a new pension process.

Thanks, Martin

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