Pensions

I realize it’s hard to think about anything beyond the immediate situation here at SIUC, but things are happening legislatively with pensions. I just received this information from the IEA:

ISSUE – This afternoon, a legislative committee is expected to hear the new amendment to the pension cutting bill (SB 512) 

The amendment to Senate Bill 512 was filed yesterday. It deals with the specifics of the pension bill and addresses the problems in the original proposal that would have made the bill a disaster for the pension systems and Illinois taxpayers had it passed in its original form last spring.

 Among the key provisions of the revised bill:

§  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.

PLEASE SHARE THIS INFORMATION WITH YOUR COLLEAGUES AND ALL MEMBERS WITH WHOM YOU HAVE CONTACT

IEA members are encouraged to contact legislators about SB 512:

Message – IEA opposes SB 512 because:

It is an unconstitutional diminishment of pension benefits
As teachers cannot receive full social security benefits, even when they qualify through other employment,  their pensions are their life savings
Our members have always paid their retirement costs; it is the state that has not kept its part of the bargain
Reasonable retirement benefits allow public education to attract the teachers and staff our students deserve
 
Actions

IEA members are urged to contact state legislators immediately.
Call 888/412-6570 and follow the prompts to be connected to your legislator . Use the above talking points, or
Go to the IEA website, click on the pension tab at the top of the page and you will see a link that will let you easily send an e-mail to your legislators.
Tell lawmakers to oppose SB 512 for for the reasons cited above
More information is available on the IEA website
 

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