Even though some of John VanVleet’s peers were skeptical about the state’s pension buyout program for public employees, he decided to take advantage of it. “A lot of people had this conversation where they weren’t sure if they wanted to take it,” said VanVleet, 53, who was the training coordinator at Hill Correctional Center in…
Even though some of John VanVleet’s peers were skeptical about the state’s pension buyout program for public employees, he decided to take advantage of it.
“A lot of people had this conversation where they weren’t sure if they wanted to take it,” said VanVleet, 53, who was the training coordinator at Hill Correctional Center in Galesburg when he retired in January 2025.
But he was watching Illinois’ fiscal direction, which wasn’t giving him the peace of mind a pension should.
The state has “pushed so many people out,” said VanVleet, who was a state employee for 23 years. “People are fleeing Illinois because of the cost of everything.”
“I took my buyout just to get something out now,” he said. “I was afraid of a collapse, the way this government spends.”
He decided on a partial buyout, which gave him a cash-out payment at retirement. That gives him the original pension he earned. In exchange, he forgoes most of the raises and cost-of-living adjustments he would have gotten.
“That way, if something happens down the line, I already have some of the money,” he said.
He invested the lump sum in private retirement accounts, where he controls the money.
“My son has investments where he’s making 10% returns, so I’m in the process of moving my money to the same place,” VanVleet said.
The buyout program has spared Illinois about $2.9 billion in pension liability over eight years. With Gov. J.B. Pritzker signaling his intent to extend it a third time, a bill in Springfield would provide a similar option for two of the worst-funded pension systems in the country: Chicago police and fire.
Both systems are less than 30% funded, which is past the “point of no return.” In other words, worker contributions will not be enough to fund the deficit, meaning the money will have to come from somewhere else.
Chicago has handled this by paying into the systems directly. The side effect is that 75% of property taxes raised for public safety are going to pensions instead of services.
State Sen. Robert Martwick introduced House Bill 3404 in hopes of securing a buyout option for Chicago police and fire pensioners. The bill passed out of committee last month.
VanVleet says more and more lately, he’s seeing others take a buyout.
It’s unclear what would happen if public pensions did collapse. When General Motors filed for bankruptcy protection in the private sector, its pensioned employees lost everything.
For now, Illinois law prohibits municipal bankruptcy, but VanVleet is happy to have matters in his own hands.
“People always say, ‘Oh, the government can and can’t do this!’ he said. “I’d rather have a contingency; we see the government do all kinds of stuff they shouldn’t do.”
That’s why, as VanVleet sees it, having more options is always better for workers.
“With Chicago police and fire, if they have the same thing up there where they’ve bilked their pension system dry, if they want to go, let them go. Let them buy out.”
