Municipal Pension Abuse Loophole To Close Under Senate Bill

DEERFIELD, IL — A pension-boosting loophole employing vehicle perks would be closed under a new Senate bill passed this week. While many local officials use vehicles bought or leased at taxpayers expense, in some suburban municipalities vehicle allowances can be used to boost the pension payments of retiring politicians, as present state law lets some allowances received by public officials to be counted as pensionable earnings.

This week, the Senate passed SB701 by a 56-0 vote. The bill excludes vehicle allowances from the definition of earnings and prohibits the perk from increasing future pensions.

“Why should taxpayers be expected to pay for an increased pension for a mayor or other local official because they received a vehicle allowance?” said the bill's sponsor, Sen. Julie Morrison (D-Deerfield). “It doesn’t make sense and it needs to end.”

The loophole is possible in Carpentersville, Elgin, Geneva, Gilbert, Hanover Park, Hoffman Estates, Kildeer, Lake Zurich, Lincolnshire, St. Charles, Sugar Grove, West Dundee and other municipalities, according to researchers from Sen. Morrison's office.