UPDATE: 12:55 pm, Thursday, Nov. 10, 2011 —  The Illinois House is adjourned until Nov. 29. No action was taken on pension-cutting SB 512.

UPDATE 6:40 pm, Wed, Nov. 9, 2011 – The General Assembly has adjourned until Thursday morning without holding a floor vote on pension-cutting SB 512.

While Thursday is scheduled to be the final day of work in 2011 for lawmakers, House members were informed today that they should be prepared to return to Springfield for an additional session day on November 29.

SB 512 is awaiting a vote by the full House after passing a committee vote on Tuesday.

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Wednesday morning update: IEA members are urged to contact their legislators immediately to urge them to oppose the pension-cutting legislation, Senate Bill 512.

Senate Bill 512 (SB 512) would dramatically increase the contributions of active employees who started their jobs prior to Jan 1 of this yea and damage the state pension systems.  (SB 512 details below)

The bill passed out of the House Pensions and Investments Committee Tuesday on a 5-4 vote. The bill was voted out of committee during the spring legislative session but was never called for a House vote.

IEA members are urged to contact their legislators immediately to urge them to oppose the pension-cutting legislation, Senate Bill 512.

• It is unconstitutional to reduce benefits for active employees.
• For most education employees, their pension is their only form of retirement security. Teachers can’t collect full social security, even if they have earned it through other employment.
• The employees have always paid their share. The pension problem is a result of politicians using the pension systems as a credit card to pay for other state services.
• Reasonable retirement benefits allow our schools to attract and retain the quality teachers and staff our students deserve.

1. Call 888/412-6570, follow the prompts to be connected to your legislator and use the above talking points, or
2. Go to the IEA website, click on the pension tab at the top of the page and you will see a link to e-mail your legislators.

Background

Last spring, the Chicago-based Civic Committee tried to ram SB512 through the legislature last spring, claiming it would cut state pension costs. The bill was never voted on because organized labor in general, and IEA members and staff in particular, lobbied vociferously against the proposal.

A report the Teachers Retirement System (TRS) released in the summer showed that the plan, if it had passed, would have increased pension costs to taxpayers by $34 billion over the first 15 years and by $62 billion by 2045. This was largely due to the Money Purchase Option, which calls for the state to increase its contribution to the retirement system on behalf of a participant when the contribution required of the participant is increased, as it would be under SB 512. (For example, under SB512, the 9.4% contribution rate for TRS participants would rise to 15.77 percent by July 1, 2016).

The new amendment introduced Monday would eliminate the state’s obligation to increase its contribution, but a report in Monday’s Springfield State Journal-Register points out:

…tinkering with the money purchase option might raise a constitutional issue. Drafters of the bill have tried to satisfy the state constitution’s prohibition of diminishing pension benefits by simply increasing employee contribution rates. They say increasing what teachers and state employees pay for pensions does not diminish the benefits themselves.

But if current teachers start paying more but get less from the money purchase option, does that mean the legislature has diminished the benefits?

The new pension plan from the Civic Committee, which may be introduced during this week’s legislative session, is unacceptable because:

• It is unconstitutional to reduce benefits for active employees.
• For most education employees, their pension is their only form of retirement security. Teachers can’t collect full social security, even if they have earned it through other employment.
• The employees have always paid their share. The pension problem is a result of politicians using the pension systems as a credit card to pay for other state services.
• Reasonable retirement benefits allow our schools to attract and retain the quality teachers and staff our students deserve.

(Read more about the revised SB 512 below) 

All IEA members are urged to contact their legislators immediately:

1. Call 888/412-6570, follow the prompts to be connected to your legislator and use the above talking points, or
2. Go to the IEA website, click on the pension tab at the top of the page and you will see a link to e-mail your legislators.

To make sure you have the most updated news, please go to the “My Profile” section of the IEA website and update your contact information with a non-school e-mail address that you check as well as an updated phone number .

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“Highlights” of the revised SB 512:

• The employee contribution for TRS members who elect to stay in Tier 1 would increase to 13.77% of salary (from 9.4% of salary currently) beginning July 1, 2013 until June 30, 2016.  Beginning on July 1, 2016 the contribution could only increase an additional 2% to a maximum of 15.77% of salary.  The amendment also increases the contribution rates for those in SURS to 15.31% of salary during the same period (currently, 8% of salary).  The final increase in contributions for SURS would put the member’s contribution at 17.31% of salary beginning in July 1, 2016.  It is understood that after the first three years of the contribution increase, that the recalculation, as required by the amendment, will force member’s contributions up to the maximum increase of 2% whether they are in TRS or SURS

• The amendment changes the timeline for election and when it would apply to current member benefits.  All benefits earned after July 1, 2013 would be impacted by either the new Tier 1 contribution level, participation in Tier 2 or participation in the DC plan.

• The increase in employee contribution cannot be used for the purpose of calculating the money purchase plan under the act.  This is a clear decrease in an existing benefit.

• In school districts where the employee contribution is currently being paid by the employer the additional contribution required under the legislation would have to be renegotiated.  This changes the terms of existing contracts.  This is a new provision of the legislation.

 

The walkout began last Thursday after negotiations failed to result in a contract for tenure track faculty.

Three other campus unions reached agreement with the University last week.

For the latest information on what’s happening at SIUC: http://siucunions.wordpress.com/

Electronic messages of support can be sent here!

(Scroll down after the SIUC FA Statement and relay your words of encouragement)

Donations and other written messages should be sent to:
Randy Hughes, President
SIUC FA Illinois Education Association-NEA
500 Plaza Drive, Suite 5
Carterville, IL 62918

IEA member Brandi Martin, a teacher from Aurora, has created a brief  video that makes a compelling case for teacher pensions as a benefit for taxpayers and does so in a highly entertaining way. Watch it and feel free to share it with your friends and colleagues.

A “Call to action” for IEA members has been declared for the period from now until the legislature returns to Springfield on November 8.

IEA members are encouraged to contact legislators about SB 512:

Message - IEA opposes SB 512 because:

• It is unconstitutional
• IEA members don’t receive Social Security, their pensions are their life savings
• IEA members have always paid their retirement costs; it is the state that has not kept its part of the bargain
• SB 512 would cost taxpayers an additional $34 billion over 15 years

Actions

• IEA members are urged to contact state legislators at their home district offices between now and November 8th, when lawmakers return to Springfield for the last session days of 2011. Make an appointment for an in-person meeting or send an email
• Contact information
• Members are urged to tell lawmakers to oppose SB 512 for for the reasons cited above
• More information is available on the IEA website
• Legislative update video with Jim Reed
• Capitol Report (available Friday, Oct. 28)

An overflow crowd of teachers, firefighters, police officers, mental health works, state employees and other public workers, all of them union members, packed the Illinois Statehouse rotunda Wednesday for a rally in  support of retirement security and collective bargaining rights.

Represented were IEA, the Illinois Federation of Teachers, AFSCME, SEIU, the Fraternal Order of Police and other unions representing public employees. The rally was intended to send a message to policymakers that they should reject proposals to cut pension benefits for active employees. Many on hand also called for lawmakers to restore the jobs of laid off workers and shelve plans to close state health facilities that are being closed due to the tight state budget.

Watch the above video of IEA President Cinda Klickna’s remarks.

Lawmakers are scheduled to be in session through Thursday, then will return to the Capitol November 8-10 to finish the fall session.

Jim Reed, IEA Director of Government Relations, provides an update on the legislative session scheduled to run October 25-27 and November 8-10. Reed reports that, while there are no pension-cutting proposals currently poised to move to a vote in the House or Senate, IEA members should remain attentive and be prepared to act quickly if called upon.

Members are urged to check the IEA website regularly:

1. Go to My IEA Profile and make sure IEA has the email address on file that will allow you to receive an urgent message in the shortest possible time.
2. On the website, go to the Pensions page and send a letter to your legislators.
3. Call your legislator directly by using the We Are One Illinois hotline: 1-888-412-6570 (talking points on the Pensions page)

An analysis of Senate Bill 512, the pension bill developed last spring by the Chicago-based Civic Committee, shows it would have cost taxpayers an additional $34 billion dollars for state pensions. IEA lobbyist Will Lovett explains what the analysts found and why the legislature should reject any attempts to ram through pension reform bills, especially those supported by the Civic Committee and the Chicago Tribune editorial board.

Pensions are likely to come under attack during the fall legislative session which begins Oct. 25. A “call to action” could be declared by IEA with no warning, so be sure you’re ready and reachable. First, watch this short video of IEA President Cinda Klickna and Jim Reed, director of Government Relations, for more information. Then visit “My Profile” – log in and verify/update your personal information — including an email address that you check frequently. Use a non-school email address as many school districts block IEA email messages.

For more information visit our Pension page

The "Union Table" at the legislative reform hearing in Aurora in December,2010. From left, CTU President Karen Lewis, IFT President Dan Montgomery, IEA President Ken Swanson, Alton High School teacher Annice Brave, IEA Executive Director Audrey Soglin

This past spring, IEA helped secure the passage of an important school reform bill that improves our schools, keeps the best teachers in classrooms, and ensures the teachers’ voice remains strong at the bargaining table.  It was the result of months of negotiations and represented a remarkable victory for IEA and our members across the state.

The reform legislation, Senate Bill 7 (SB7), was supported by IEA, the Illinois Federation of Teachers (IFT) and the Chicago Teachers Union (CTU).  At the table, the unions advocated for proposals that teachers knew could improve teaching and learning.  At the same time, teachers beat back attempts to eliminate tenure and seniority rights while preserving the right of education employees to strike.

Watch this video

Learn more about Senate Bill 7, how it could impact you and your school, and the process of how it came to be a law.

Quinn holding reform bills

“The lesson of the school reform bill is that teachers know what is best for students and for schools,” said IEA President Cinda Klickna.”

“We have a long history of leadership on education improvement and we refused to be silent when Stand For Children, an out of state group with an anti-union bent, tried to take away our ability to advocate for students and education. We fought for our students and fought for our members and ended up with a bill that we believe will make a difference for schoolchildren statewide.”

Read more about the education reform bill (SB7).

Listen to the recent IEA electronic town hall meeting on the reform law