Leatherneck Nation

Leatherneck10 wrote:I haven't seen a movement from the retirees to give back a percentage of their pensions. Or even a movement from within the retiree community to change state law allowing their pensions to be taxable Illinois income.

Illinois is among the states that exempt all types of retirement income from state income taxes. For instance, the state does not tax distributions from defined-benefit pension plans, 401(k) accounts, IRAs, self-employed retirement savings, government employee pensions, military pensions, railroad retirement benefits, lump-sum distributions of retirement benefits, deferred compensation paid at retirement by a government employer, or the federally taxable portion of Social Security benefits.

Illinois also exempts from state tax early distributions you take from an IRA or 401(k) plan.

wiu712 wrote:

Leatherneck10 wrote:I haven't seen a movement from the retirees to give back a percentage of their pensions. Or even a movement from within the retiree community to change state law allowing their pensions to be taxable Illinois income.

Illinois is among the states that exempt all types of retirement income from state income taxes. For instance, the state does not tax distributions from defined-benefit pension plans, 401(k) accounts, IRAs, self-employed retirement savings, government employee pensions, military pensions, railroad retirement benefits, lump-sum distributions of retirement benefits, deferred compensation paid at retirement by a government employer, or the federally taxable portion of Social Security benefits.

Illinois also exempts from state tax early distributions you take from an IRA or 401(k) plan.

712, this has only been the case since the Orwellian year of 1984. George was right. This was not a good idea. Common sense say they will have to backtrack on it to dig out of this budget mess.

Leatherneck10 made the following comment:

Saying that SIU-Med's doctors (many of whom never, ever enter a classroom- they are practicing physicians) represent the SIU faculty is, well, beyond a major stretch

You obviously don't know anything about med school. I tell you what, ask to appear in front of the SIU Medical faculty and tell them they aren't real teachers because they don't stand up in front of a classroom and lecture. Have you never heard of resident programs, actual classroom studies etc? See what happens if you would confront them about not being a teaching faculty member. Ever hear of teaching hospitals? Gesh, unbelievable naive comment.

Leatherneck10 wrote:While we're naming which groups have stepped up, I haven't seen a movement from the retirees to give back a percentage of their pensions. Or even a movement from within the retiree community to change state law allowing their pensions to be taxable Illinois income.

One of my suggestions to Norine Hammond was precisely this, tax our pension income since it was taken out of our paychecks before taxes. Social Security income is taxes above specified levels so I suggested the same approach. However, Hammond was against the idea as the current policy is believed to keep retirees instate.

In terms of a collective action to bring this point forward, who would it be. We aren't members of a Union, etc.

leatherface wrote:Leatherneck10 made the following comment:

Saying that SIU-Med's doctors (many of whom never, ever enter a classroom- they are practicing physicians) represent the SIU faculty is, well, beyond a major stretch

You obviously don't know anything about med school. I tell you what, ask to appear in front of the SIU Medical faculty and tell them they aren't real teachers because they don't stand up in front of a classroom and lecture. Have you never heard of resident programs, actual classroom studies etc? See what happens if you would confront them about not being a teaching faculty member. Ever hear of teaching hospitals? Gesh, unbelievable naive comment.

Thank you for your comments Leatherneck 10. These are teaching faculty working at teaching hospitals. I don't think I'd want a non-doctor teaching a doctor how to be a doctor.

Tere North wrote:

Leatherneck10 wrote:While we're naming which groups have stepped up, I haven't seen a movement from the retirees to give back a percentage of their pensions. Or even a movement from within the retiree community to change state law allowing their pensions to be taxable Illinois income.

One of my suggestions to Norine Hammond was precisely this, tax our pension income since it was taken out of our paychecks before taxes. Social Security income is taxes above specified levels so I suggested the same approach. However, Hammond was against the idea as the current policy is believed to keep retirees instate.

In terms of a collective action to bring this point forward, who would it be. We aren't members of a Union, etc.

That is interesting. Truth is, vast majority of people simply do not relocate after retirement. I have seen data that says it is in the 6% range and most of them move only a very short distance (same county). So, Hammond is failing to do the obviously right thing for the majority because it MIGHT be wrong for a small minority. Typical party (I wont say which one) stance on many issues. I have a facebook friend who grew up next door to me in Alexis. She and her husband did relocate from Illinois to North Carolina (pensions are taxed) about three years ago because they could not afford to live their desired life-style in Illinois. I had every intention to relocate back to Illinois after my retirement but I am now shying away for that very same reason. I don't mind paying state taxes on my pension dollars here in Virginia. I use the roads, parks, and running track around the middle school football field a mile away. Time for the Illinois politicians to wake up!

Tere North wrote:

Leatherneck10 wrote:While we're naming which groups have stepped up, I haven't seen a movement from the retirees to give back a percentage of their pensions. Or even a movement from within the retiree community to change state law allowing their pensions to be taxable Illinois income.

One of my suggestions to Norine Hammond was precisely this, tax our pension income since it was taken out of our paychecks before taxes. Social Security income is taxes above specified levels so I suggested the same approach. However, Hammond was against the idea as the current policy is believed to keep retirees instate.

In terms of a collective action to bring this point forward, who would it be. We aren't members of a Union, etc.

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I would start with SUAA, The State Universities Annuitants Association.

suaa.org

Applying the state income tax to grandma's Social Security check would be political suicide.

wiu712 wrote:Applying the state income tax to grandma's Social Security check would be political suicide.

I am sure they can find a suitable solution to make grandma happy there. But they also need do do something about grandma's death tax. That is the tax that really causes wealthy people to pack up and take their stuff elsewhere. Illinois is one of only 15 state to still have one.

Governor Rauner has to see/get something. This sounds really crappy but, I think if Chicago State goes under things will start to happen. There needs to be a "sacrificial lamb" of sorts and CSU is just not up to standards on most everything and is the State institution that isn't close to broke, it has exhausted all of its emergency funds and is broke.

I just want something to happen. it is disconcerting and an embarrassment that so many promising young students choose to further their education out of State. The shenanigans going on with regard to a lack of budget makes me wonder if the Governor and the state Senators know how damaging this is. Even If things get resolved fiscally it could take a generation to fully recover from the perception that Illinois is a 2nd rate place to get a higher education.