Skokie Appraises Police, Firefighter Pension Changes

The legislation may not have received the same attention as the income tax hike or the pending repeal of the death penalty, but a bill did pass during the recently completed veto session of the General Assembly that potentially could alter the public safety of Skokie residents.

Lawmakers returned to Springfield in December and passed an overhaul of the pension plans for newly hired police officers and firefighters.  The bill, which Gov. Pat Quinn signed Dec. 30, raises the retirement age from 50 to 55. It also puts in place a new formula for municipalities to fund the pensions and requires that cities and towns have 90 percent of their pension obligations covered by 2041.

Skokie is among the state's municipalities that will eventually feel the pinch of the new regulations, which affect those hired on or after Jan. 1.

“Firefighters and police officers put their lives on the line each and every day to keep us safe,” Quinn said in a statement. “These men and women who serve so selflessly must continue to have access to quality pension benefits that are also affordable for municipalities throughout the state.”

Changing mindset 

State Sen. Jeff Schoenberg (D-9th District) was among the main proponents of the pension system overhaul.

“Like school districts before them, municipalities were always generous in negotiating end-of-career salary increases because they figured it was someone else’s money and the states always got stuck with the tab--but no longer,” said Schoenberg, whose district includes parts of Skokie and other North Shore communities.

More changes may be on the way next month, when the Commission of Government Forecasting and Accountability analyzes whether it would be feasible to consolidate the 645 local police and fire boards across the state. Schoenberg is a co-chairman of the commission.

Also on the horizon: A survivor's pension will be decrease from 100 percent to about 67 percent.

“This is going to impact the system going forward for new hires by virtue of the fact that retirements will come five years later,” said Skokie Finance Director Robert Nowak. “The cost-of-living and inflation adjustment will be based on [the] consumer price index and now it will be half of the CPI.”

Skokie's view on law 

What the overall effect of the new provisions on the Skokie police and fire departments remains to be seen.

Deputy Police Chief Anthony Scarpelli said the 108 officers on the force would continue to see nearly 10 percent of their paycheck withheld for the pension fund, with the village contributing a percentage. The village's portion changes based on an actuarially determined amount on year-to-year basis.

Scarpelli anticipates most officers will retire at age 55, which has been the case before the new law's enactment.

“Generally people stay about 30 years, and the hiring range is between 21 and 35," he added, noting that "it will only really affect people who retire before 55.”

But Scarpelli is not concerned that the revised pension package will discourage recruits from seeking to join the force. “I still think we will attract a significant number of highly qualified applicants,” he said.

Wider implications 

Fire chief Ralph Czerwinski, who has 116 people under his command, echoed that sentiment.

“People will know what the benefit package is coming into the profession and they will make a cognizant decision regarding their employment,” he said.

“This is not just an Illinois pension reform issue," Czerwinski added. "As I look across the public safety sector all over the country, states are looking at pension reform to make sure that funds are available.”

The fire chief thinks extending the retirement age to 55 will not imperil the public safety, but he does toss in a health-related caveat. “Individuals and their employers will need to be diligent with wellness and physical fitness to ensure that employees are in appropriate physical health as they work longer at this strenuous career,” he said.