Tallying up the perks in Illinois teacher contracts

“The numbers are staggering,” WJOL’s Scott Slocum said recently when seeing the size of pensions being doled out in Illinois. The morning show host had Wirepoints on the air to talk about Joliet-area school districts after he saw our recent piece on the expensive teachers contract being negotiated in nearby Naperville

The chaos that’s happening in the state right now, we argued on the show, is distracting Illinoisans from keeping an eye on new public sector contracts.

It doesn’t matter whether residents live in Wilmette or Belleville, Rockford or Danville, the next round of contracts, whether they’re for teachers, public safety workers or city employees, will hit Illinoisans with even higher property taxes and larger pension burdens.

The soon-to-be expired teacher contracts in Joliet provide a good example of the benefits that drive up taxes and pension costs. Joliet PSD 86’s contract ends next year and Joliet Township HSD’s 204’s contract ends in 2024. 
Here are some of the Joliet teacher benefits that Illinoisans should keep their eye on in their own districts:Long-term contracts

One of the big benefits of government worker contracts is their length. Multi-year contracts mean guaranteed raises and a host of other benefits that are locked in over the life of the contract. That means residents have to pay up no matter what happens to taxpayer incomes, the economy or government finances in the meantime.

Agreements typically span three to five years, but sometimes hit ten years, as evidenced by Palatine’s 2016 teachers contract.

In contrast, most Illinois private sector employees are what’s called “at-will” employees. That means an employer can terminate a work contract for virtually any reason other than race, gender, etc.

Educator salaries 

The average educator in District 204 makes nearly $80,000, while those in District 86 make nearly $60,000. Career employees – those with 25 to 30 years experience – make $120,000 and $88,000, respectively.

It’s not just teacher salaries that matter. Joliet’s two superintendents each earn more than $200,000 a year, while the average administrator salary across both districts exceeds $100,000 annually.
Salary “spiking”

Both Joliet 86 and 204 have salary spiking provisions in their current contracts. Salary spikes are guaranteed raises given to teachers the last few years before they retire. Those raises increase the final average salary used to determine a starting pension, which in turn increases lifetime pension benefits.

Joliet HSD 204’s contract grants teachers 6 percent raises over their final four years, while Joliet PSD 86’s contract grants 4 percent raises. 

Sick leave

Both Joliet school districts allow their teachers to accumulate hundreds of days worth of unused sick leave during their careers. Teachers can turn in their unused sick leave and get credit for working up to an additional two years. That boosts their pension benefits by increasing their number of years worked.

District 204 allows teachers to accumulate up to 225 days of unused sick leave, while District 86 allows teachers to accumulate 340 days, according to the Illinois State Board of Education’s 2021 Teacher Salary Study.

That’s a deal nobody in the private sector gets. Companies typically offer sick days on a use it or lose it basis.

Health insurance benefits

Both Joliet districts also heavily subsidize health insurance for their teachers and their families.

Joliet HSD 204 subsidizes 80 percent of their teacher health insurance plan. That means the district pays for over $8,000 of a teacher’s annual $10,000 in health insurance premiums. The district also pays for all or most of teacher and family dental, vision, life, prescription and disability insurance as well, according to the 2021 Teacher Salary Study

Joliet PSD 86, meanwhile, covers 95 percent of a teacher’s $8,300 a year health insurance premium, as well as her dental, life, prescription and vision insurance. 
Pension costsEarly retirement ages, the salary spiking and sick leave perks mentioned above, and automatic 3 percent cost-of-living adjustments all contribute to Joliet teachers’ generous retirement benefits.

The average recently-retired career educator, including teachers and administrators, from Joliet Twp HSD 204 began collecting benefits at the age of 59 with a starting pension of nearly $98,000 a year, according to TRS member data received via a 2021 FOIA request. Each of those career retirees can expect to collect, on average, about $3.1 million in benefits during retirement.

Joliet PSD 86 career retirees receive a smaller starting pension of $72,000, but can still expect to receive nearly $2.4 million in benefits.
The biggest pensioners at the two districts can expect to collect far more than that. The top 10 retirees – many of whom retired before age 60 – are on track to get more than $4.6 million in benefits. And District 204’s top pensioner, former superintendent Cheryl McCarthy, will receive $8.4 million.
More powerThe legislature wants to further entrench union power through a constitutional amendment in 2022 that would enshrine collective bargaining powers as a right for government workers. The resolution would prohibit the state and local governments from passing any law that “interferes with, negates, or diminishes the right of employees to organize and bargain collectively.” “When does this madness end?” Slocum asked us on his show. Never, if Illinois lawmakers get their way.