News & Information
Tomorrow – April 15 – is Typically Tax Day
MAP was developed to meet the growing needs of police related employees in the area of collective bargaining, to provide due process for our law enforcement members, and to promote the advancement of police labor issues that were not being met by other police labor groups. Joseph Andalina, a 26-year police veteran with more than 35 years experience in the police labor field, originally conceived and established MAP in the early 1980’s. Over the years, it has now, with its staff, board and attorneys, risen to a premier labor union in Illinois.
This year, however, Tax Day is April 18 because of Emancipation Day—a holiday celebrated only in Washington, DC. Regardless, many people will spend this weekend scrambling to finish their tax returns. We thought this would be an appropriate time to answer the question: how many tax dollars go to public pensions?
As we’ve written before, public pensions receive funds from three sources: employer contributions, employee contributions, and investment returns. Teachers, firefighters, and other public employees contribute a portion of every paycheck toward their pension during their working years. Taxpayer dollars come in as employer contributions. Since teachers, firefighters, and other public employees work for either state or local government, their salaries and benefits are paid for with the tax dollars collected by those governments.
The amount that state and local governments contribute toward public pension funds varies across the country. However, on average, state and local governments contribute 4.1 percent of direct government spending toward pensions. This is a small amount, but it has a big impact: each dollar invested in a public pension generates $8.06 in economic output. Nationwide this amounts to $943 billion a year in economic activity.
Historically, state and local government employers have contributed 19.4 percent of pension plan revenues. The overwhelming amount of pension funding- 70.4 percent- has come from investment returns. This is why pensions are pre-funded: by investing the employer and employee contributions while the employee is working, the pension fund is able to earn investment returns to pay out benefits to that employee during retirement. Pre-funding pensions is a good deal for taxpayers: it means that the majority of pension benefits are paid for with investment earnings and it generates additional economic activity as mentioned above.
Tax Day is a good time to look at how politicians spend our tax dollars and what they prioritize with that spending. Each year states give away billions of dollars in handouts to powerful interest groups through the tax code. One report from last year found that states could generate $128 billionin additional revenue each year if they taxed the wealthy and corporations at the same rate as they do working families. Meanwhile, anti-pension ideologues continue their attacks on public pensions, despite evidence that pensions are a good investment of taxpayer dollars. Politicians must be responsible stewards of taxpayer dollars and providing retirement security for public employees is a proven investment in local communities.
MAP is an organization composed
of sworn police officers and other
police-related employees who maintain full or part time employment with any state, county, or municipal agency. We have joined together to form a more professional voice in law enforcement.
What is MAP?
Only full time sworn police officers or police-related employees who are active or retired may hold office. Membership is open to individuals as well as associations who may affiliate with us for collective bargaining or legal defense. Associations or units wishing to utilize our collective bargaining programs should sign collective bargaining interest cards. There are two ways to establish a chapter for bargaining, depending on whether your group is new or has a current labor organization representing you.
Call us for details.
New President's Opinion Posted
A BENEFIT FOR PATTIE FITZGERALD PAWLOWSKI is planned for Friday,
April 22nd at 115 Bourbon Street from 7 pm to 11 pm, as she is unable to work at her
911 emergency dispatcher job for the Village of Bedford Park. For details please see: pullingforpattiedonationletter.pdf