Teacher Pensions Put Strain On State: End-of-career salary spikes inflate costs for Illinois retirement fund by Diane Rado and Darnell Little, Chicago Tribune, Sunday, June 29, 2003, page 1. "More than 70 percent of full-time teachers and school staff who retired in the suburbs and Downstate Illinois in the last decade pocketed double-digit pay increases and other perks shortly before leaving--costing state taxpayers millions in higher pension payments , a Tribune investigation has found. Using such salary spikes to boost pensions is legal in Illinois but highly unusual and sometimes outlawed elsewhere ... The perks have been doled out even as the economy soured, local districts battled deficits, and the Teachers' Retirement System ... struggled with shortfalls. " But though local districts pay for the perks initially, the cost of the inflated pensions that result is spread to taxpayers statewide, who largely fund the TRS system. "[B]ig pay increases pad pensions because the highest salary years are used to calculate retirement pay for years to come. ... "The salary of Schaumburg High School business education teacher Martin Barski rose from $91,151 to $142,536 in his final years with District 211, district records show. At 55, Barski retired last year with a pension of about $72,000 ... "' This is insanity ,' said William Huley, president of Arlington Heights-based Northwest Tax Watch. 'It's all about padding [pensions] at taxpayer expense. The salary and benefits are out of control. '"

Henry Bangser, New Trier High School's superintendent, is looking forward to retirement in 2006. And why wouldn't he? A flurry of 20 percent pay raises will hike his annual pension as high as $232,500. That's more than governors get. And even if you don't live in Bangser's rich North Shore district, you'll pay for it.

Some highlights:

When John Conyers retired in June 2003 as superintendent of the Palatine district, his salary topped $300,000

district, his salary topped $300,000 The superintendent of New Trier will retire in 2006 on a pension of $232,500 per year: "Forget the gold watch. Henry Bangser already got his retirement gift--a series of 20 percent raises that will nearly double his salary during his last five years as superintendent at New Trier High School. And those hefty pay raises will keep on giving after Bangser retires, at 57, from the affluent North Shore district on June 30, 2006. They'll boost his pension to as much as $232,500 a year . That's more than he ever made in a year at New Trier until this past school year. It will be one of the richest pensions of any Illinois public servant."

will retire in 2006 on a pension of $232,500 per year: "Forget the gold watch. Henry Bangser already got his retirement gift--a series of 20 percent raises that will nearly double his salary during his last five years as superintendent at New Trier High School. And those hefty pay raises will keep on giving after Bangser retires, at 57, from the affluent North Shore district on June 30, 2006. They'll . That's more than he ever made in a year at New Trier until this past school year. It will be one of the richest pensions of any Illinois public servant." The superintendent in Deerfield/Highland Park has a salary and benefits package worth $261,382 for this year

has a salary and benefits package worth $261,382 for this year When Paul Vallas resigned as chief executive officer of the Chicago Public Schools, he walked away with a check for $325,279

Public Schools, he walked away with a check for $325,279 JoAnn Desmond retired in 2002 as superintendent of a district that includes schools in Highland Park and Highwood . In "retirement" in 2003, she started work part-time (she says "eight or nine days a month") as superintendent of the tiny Bannockburn district. Her combined annual take is $217,000 -- $70,000 from her part-time job plus a $147,285 pension from her old job.

. In "retirement" in 2003, she started work part-time (she says "eight or nine days a month") as superintendent of the tiny district. Her combined annual take is $217,000 -- $70,000 from her part-time job plus a $147,285 pension from her old job. The lowest-paid superintendent in Cook County oversees a single school in Thornton, and he gets a total compensation near $100,000. He muddles through somehow with his paltry six-figure salary: "If I was doing this strictly for money, I would probably be in another profession."

Apparently, a common ploy used to fund these massive giveaways to fat cats is for a district to grant astonishing pay raises in the last few years before retirement. This pegs the salary at a very high level, in order to trigger commensurate pensions at a very high level. Why would a district do this? Easy: the district pays the salary for a few years, but it's the state that is stuck with paying the pension!

The same article also goes into details in explaining some additional strategies used in the giveaways at public expense, including,