Aurora Education Association-West
www.AEAW.org


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August 19: Contract Presentation Meeting

We will present the contract to membership on Monday morning in the West Aurora High School Auditorium.  At that time, members will be able to ask questions and seek clarification where needed.  In order to facilitate that presentation, we will e-mail the contract and a summary document to members sometime the weekend of August 17-18.  Please check your e-mail!


August 19: Contract Ratification Vote

Voting will take place between 1 and 6 pm at West Aurora High School in the Student Cafeteria.  School District 129 Superintendent Jim Rydland has given members permission to go to West High to vote during work hours, provided that you do not leave a building meeting to do so.  The tally will take place immediately following the close of voting.  Tallying will take place in the West Aurora High School Cafeteria.  Voting results will be shared with membership and with the Board of Education Monday evening.

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Defined Benefit vs. Defined Contribution Plans 

Defined Benefit

A defined benefit plan is a pension plan that pays out a defined amount based upon a formula. One cannot outlive the benefit. In addition, the benefit does not change or drop when stock markets falter.

In the Teachers Retirement System (TRS), the current formula is defined as 2.2 percent times final average salary times years of creditable service.

Defined Contribution

In a defined contribution plan, like a 401(k), 403 (b), or 457 plan, only contributions are defined. The member’s benefit is not. The pension plan is determined by how well the member invests the account and market conditions at retirement. Unfortunately for some, earnings may fall short, or the member may outlive the defined contribution account.
Why change?
Defined Contribution Will Not Save Money
A few states have adopted defined contribution plans for their new employees. The savings, however, are illusory. Most of the state’s obligation to TRS is for contributions not paid during the past several decades. The deferred cost of underfunding cannot be eliminated by switching to a defined contribution scheme. In fact, it is likely that a defined contribution plan would cost more:
 
  • Changeover costs to a new defined contribution plan would be significant.
  • Ongoing costs for a defined contribution plan would be much higher than a defined benefit plan and would restrict growth of the defined contribution account balance.
  • In fiscal year 2006, the expense ratio of TRS was about 0.30 percent of assets; the average expense ratio of a private sector “target-date” defined contribution retirement fund was 1.29 percent, or 4.3 times higher.
  • Defined contribution plans typically do not include real estate and private markets, assets that each earned over 20 percent last year for a well-diversified TRS investment portfolio.

  Reasons to Keep the TRS Defined Benefit Plan

  • Cost. Current defined benefit plans for state and school district employees are neither excessive nor expensive.
  • Continuity. Defined benefit plans encourage long-term teaching careers.
  • Protection. Illinois teachers do not have a Social Security safety net, so the defined benefit plan is the only guaranteed protection for their retirement security.
  • Performance. TRS investment performance ranks in the top quarter of all public funds for the past 10 years.

Keep Up to Date with the Legislative Process in Springfield

IEA is constantly following the the goings-on in our state capitol.  Here is the latest news at the Capitol Report.

Your IEA Membership Pays!

Save with your IEA Membership Card - The Access Saver is a group discount program ­especially for IEA members. Use your membership card for ­discounts at more than 100,000 locations, saving you up to 50 percent on purchases you make every day. Be sure to check back frequently, as merchants are frequently added to the ­program.  Here is a listing of savings.  Here is the member card website.  If you need help, call 1-877-489-3855.  If you did not receive your card, contact Debbi Ahlden at Jewel Middle School.

Help Your Classroom Win $200

Enter to win one of 12 monthly prizes of $200 each to be used towards supplies, equipment or materials for your classroom.  This program is sponsored by NEA Members Benefits Auto and Home Insurance.  Get your Auto Quote at California Casualty and be sure to press the Yes button when prompted on the "Help Your Classroom Program" question during the quote process.  No purchase necessary to enter or win.  For additional information call 1-800-964-3903, extension 5954.
 


 

Contact Us

Email or call with questions
srobowski@sd129.org
(630) 301-5537