Elmhurst Taxpayers Paying Far More For Pensions

ELMHURST, IL — Elmhurst taxpayers are like nearly all around the state: They are paying more for local police and fire pensions. A lot more.

For the seven fiscal years from 2013 to 2019, the Elmhurst property taxpayer's contribution for police and fire pensions skyrocketed 81 percent to $7.1 million, from $3.9 million. This information comes from accounting firm Lauterbach & Amen LLP, which gave a presentation this week to the City Council's finance committee.

The total taxpayer cost of $7.1 million is equivalent to $152 for every man, woman and child in Elmhurst. That's up from $84 in 2013. The accountants are proposing the city contribute $7.4 million this year, a 4 percent increase.

As the Illinois Municipal League points out, towns must follow state law on pensions. They cannot alter benefits in any way, a state constitutional mandate.

In Illinois, all public pension recipients receive compounded 3 percent increases every year, no matter the economic conditions. If a pension recipient was making $100,000 in 2013, that person would receive about $123,000 seven years later. If the $100,000 pension increased along with the consumer price index, it would rise to $112,000 in seven years. In other words, public pensions have increased considerably more than the cost of living.

In 2018, the average Elmhurst police pensioner's age was 68 and receiving $67,644, according to state Department of Insurance reports. That year, 64 active officers were paying into a fund that supported 82 retirees.

The average Elmhurst firefighter pensioner's age was 70 and receiving $67,052 in 2018, the report say. That year, a total of 43 firefighters were paying into a fund that supported 47 retirees.

Active members' contributions and investments aren't enough to cover pensions, so the city must make up the difference. Like Elmhurst, most cities are seeing their contributions going up every year.