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Madigan: End Ryan's pension

Thompson argues ex-gov should still get some money

September 13, 2006

Former Gov. George Ryan should lose his $197,028-a-year pension and state health care benefits because of his felony corruption convictions, Illinois Attorney General Lisa Madigan ruled Tuesday.

"Former Gov. Ryan's extensive and reprehensible criminal conduct was directly and inherently related to his official duties as a state officer," Madigan, a Democrat, said in a prepared statement. "In my opinion, the criminal conduct in which he engaged ... is precisely the type of misconduct and breach of public trust that the felony forfeiture provision of the Pension Code is designed to discourage."

Ryan, however, would be entitled to a "timely refund" of $235,500 withdrawn from his state and Kankakee County paychecks over 36 years in public service, Madigan concluded. Still, that's far less than the $16,420 a month the 72-year-old Republican is getting now.

Ryan plans to dispute Madigan's ruling if the General Assembly Retirement System agrees with it, said former Gov. Jim Thompson, a Ryan lawyer.

Ryan's convictions, Thompson said, are linked only to Ryan's service as secretary of state and governor, and therefore Ryan should be allowed to keep pension money he earned as a state legislator and lieutenant governor.

'I guess we'll have to litigate'
Madigan "is correct that any pension benefits that are from service that is directly related to the indictment are forfeited," Thompson said. "She is incorrect that pension benefits related to his service as a member of the General Assembly should be forfeited, so I guess we'll have to litigate this."

Ryan, who has vowed to appeal his federal convictions, did not return a telephone message. The former governor appears to have been counting on his pension to support him and his wife, Lura Lynn, during retirement.

"I don't think he's got a lot" saved up, Thompson said.

Timothy Blair, acting executive secretary of the pension system that covers Ryan, said the ex-governor would not be stripped of his pension before a vote of the system's board. The board next meets Nov. 15, but that could be moved to an earlier date, Blair said.

Blair characterized Madigan's opinion as "solid" and said he'd likely recommend that the board adhere to her ruling.

Little or no Social Security
Should that happen, Ryan would lose his state-subsidized health care and prescription coverage, which ranks among the most generous on the market. Ryan also would lose a $5,000 life-insurance benefit.

Ryan likely would get little, if any, Social Security because enrollees in the state pension system do not pay into the federal program. Therefore, Ryan's only chance at Social Security is if he made payments while operating a Kankakee pharmacy, Blair said. Ryan, like all other retirees, would be eligible for Medicare benefits if he loses his state health care, Blair said.

At no time in at least three decades has the system stripped a retiree of pension benefits because of a felony conviction arising from state service, Blair said.

cfusco@suntimes.com

dmckinney@suntimes.com