PENSION UPDATE

2/28/2013

6/14/13 UPDATE

Speaker Madigan has filed an amendment to SB 2404 that would delete everything in the bill and replace it with language identical to SB 1, the pension slashing bill that was rejected in the Senate by a vote of 16-42. The amendment is scheduled to be considered in committee on Tuesday, June 18.  As you know, there will be a special session of the General Assembly on Wednesday, June 19.

Senate President Cullerton’s spokesperson says the speaker should let the current version of SB 2404 be called for a vote in the House…

Furthermore, Phelon said, the president still thinks House members should get to vote on the Senate version as it had "passed overwhelmingly" in the upper chamber in the session.

The We Are One coalition agrees and will continue to push for State Representatives to have the opportunity to represent their constituents by voting on the Senate-approved version of SB 2404.

DEMAND A VOTE on SB 2404!

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6/5/13 UPDATE 

IFT President Dan Montgomery appeared on WTTW's Chicago Tonight program to talk about pensions. 

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5/31/13 END OF SESSION UPDATE (10 PM)

This evening, the Illinois House and Senate left Springfield without a resolution on the crisis involving retirement security for hundreds of thousands of Illinois workers. For all of our members, this lack of action from Illinois lawmakers is a terrible failure. However, what is abundantly clear in Springfield tonight is that IFT members, retirees, and their families were successful in ensuring that the pension-theft proposals gained less and less support over the course of the session.
 
You made an important difference, again. True, it feels like the movie Groundhog Day, where the same event plays out over and over. A quick look at a post on the IFT Web site from one year ago finds the following statement…

There is no doubt that the thousands of e-mails and calls to lawmakers in the last week, along with the intense lobbying by IFT leaders, members and staff, helped bring about this result. Unfortunately, our work here is not done.
 

This statement is just as appropriate today. Pension slashing bills like SB 35 and SB 1 are not on their way to the Governor’s desk as many predicted. You kept fighting, and it paid off. Thank You.
 
But we did more than just block and tackle. This year, we put forth our own proposal and showed our willingness to share the sacrifice. Along with our labor partners in the We Are One Illinois union coalition, we were able to negotiate a reasonable, comprehensive pension bill with Senate leadership. That bill, SB 2404, passed the Senate with a significant bipartisan vote.  
 
We couldn't have come this far without the tireless leadership of IFT President Dan Montgomery, the ongoing support of the IFT Executive Board, the hard work of our staff, and most importantly, the dedication of our members. But as we said one year ago, our work is not done.
 
We ask that you don’t let up in taking the time to consistently thank the Senators who voted for our union coalition’s negotiated bill. In addition, when your State Representatives return home, talk to them about getting a bill just like SB 2404 called for a vote and passed in the Illinois House.   
 
We’ll move on to the next episode of pension Groundhog Day, but we won’t quit fighting until lawmakers fix the problem in the right way.
 
Our efforts also stopped lawmakers from shifting state pension costs onto colleges and universities that are already financially burdened.  
 
In other news, lawmakers passed a budget that includes essentially the same level of funding for K-12 and Higher Education as last year. The compulsory school age is moving from 7 years old to 6, and a moratorium was placed on virtual charter schools. We’ll have a detailed legislative roundup on the Web site next week.
 
Thank you for everything you do - for our communities and our union. When we fight smart and as one, we win.

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5/31/13 UPDATE (11 AM) 

Lawmakers May Still Act on Pension Reform

The House and Senate are both in today for the intense final day of scheduled session. The Madigan mega-bill – Senate Bill 1 – was defeated in the Senate last night with only 16 votes in favor. As you know, this bill would drastically slash pension benefits in an unconstitutional and unfair way. And, it would likely trigger increased Social Security costs for local school districts and force a property tax hike in many communities.

The We Are One Illinois labor coalition issued the following statement after the vote:

"The Senate has now twice rejected the contents of Senate Bill 1, including its rejection of substantially similar Senate Bill 35. Today's ‘no’ vote was especially forceful and bipartisan. We thank state senators who stood firmly against SB 1 – and we particularly acknowledge those who have supported Senate Bill 2404.

"SB 2404 has been the only legal and fair pension solution actively considered by the legislature. Moreover, now it is the only comprehensive solution left. We are thankful for Senate President John Cullerton's leadership and for his efforts to advance this bill with our coalition.

"The time has come for the House to vote on SB 2404 – without change. The bill should be put up for a vote immediately."

You can check out the roll call here.

If your Senator voted "no," please say thank you. Anything could happen today. Due to a parliamentary option, there could actually be another attempt to pass SB1 today. Or, components of it could be considered as standalone bills.

Please contact your State Senator at 888-412-6570 and encourage him or her to stay strong in opposition. Meanwhile, President Cullerton's union-negotiated bill – Senate Bill 2404 – remains in the House where Speaker Madigan is not yet allowing a vote.

Please stay tuned for further updates throughout the day.

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5/30/13 UPDATE (7:24 PM)

SB 1 FAILS IN THE SENATE!

Speaker Madigan's pension-slashing mega-bill SB 1 was defeated (16-42) when called for a vote this evening.

While this is certainly a success, there is still a threat that pieces of SB 1, as contained in House Bill 1165, may be called before session is scheduled to adjourn tomorrow.

Please keep the pressure on!

Call your State Senator now at 888-412-6570 or click here to be connected directly. Thank your Senator for voting NO on SB 1 and tell them to do the same on any pieces of it! Even if you have called before, call again. 

Thank you for your continued efforts.

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5/30/13 UPDATE (6:45 PM)

It has been a busy day in Springfield and the legislature is expected to work into the evening as lawmakers vote on important issues. The House of Representatives passed Senate Bill 1687, legislation that shifts pension costs onto colleges and universities. The IFT testified in opposition to this bill when it came up in committee. The bill now goes to the Senate for consideration.

The Senate is now beginning debate on Speaker Madigan's pension-slashing Senate Bill 1.
 
Call your State Senator now at 888-412-6570 or click here to be connected directly. Tell your Senator to vote NO on SB 1 or any pieces of it! Even if you have called before, call again.  
 
We’ll be providing more legislative updates here as they become available.

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5/29/13 UPDATE

This Is the Most Critical Time to Act! Call Your Senators NOW!



With only 48 hours left before session is scheduled to adjourn in Springfield, this is the most critical time for you to act to save your pension.

Senate Bill 1 – or pieces of it, as contained in House Bill 1165 – will very likely be voted on in the Senate this Thursday, May 30, or Friday, May 31. Both bills have already passed the House. If either bill clears the Senate, it will go to Governor’s desk, where he will likely sign either measure.

Call your State Senator now at 888-412-6570 or click here to be connected directly. Tell your Senator to vote NO on SB 1 or any pieces of it! Even if you have called before, call again.

As you may recall, SB 1 is Speaker Madigan’s pension-cutting “mega-bill” that harms active and retired workers. It deeply cuts Cost of Living Adjustments (COLAs), reducing the value of a pension by as much as 50%. It also increases retirement ages up to five years and caps pensionable salary.

HB 1165 essentially contains the COLA cut from SB 1. This COLA cut caps the amount of pension that earns a COLA at extremely low levels and delays them for five years.

We know we’ve encouraged you to call before, but you must act now, before it is too late.

Call 888-412-6570 to make your voice heard, then tell five friends to do the same.

Things are moving quickly in Springfield in the final hours of the session, so check IFT Pension Watch often for updates. Be sure to “like” the IFT on Facebook and “follow” us on Twitter for the latest-breaking developments and action alerts.  
 
Thanks for all that you do.

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5/17/13 UPDATE

Union Coalition Increases Pressure With New "Leaders" Video

With only two weeks left until the scheduled adjournment of the General Assembly in Springfield, the We Are One Illinois coalition is putting pressure on lawmakers to do the right thing and support SB 2404, the responsible labor-backed pension bill sponsored by Sen. President John Cullerton. Watch and share the coalition's new YouTube video.

Although this mess was not the fault of public employees, SB 2404 will help us be part of the solution to ensure that sacrifice is shared by ALL, not just US. SB 1, in contrast, would destroy pension benefits and squarely put the burden on the backs of active public employees and current retirees.

Keep the pressure on your lawmakers and tell them to support SB 2404 and oppose SB 1! Click here to conveniently e-mail your State Representative TODAY.    

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5/9/13 UPDATE

SB 2404 Passes Out of the Senate!

Your e-mails and phone calls made a difference once again! President Cullerton's SB 2404 passed out of the Senate by a vote of 40-16-0. The bill now heads to the House for consideration.

The We Are One coalition issued a statement praising Senators who voted for the bill and encouraging House members to do the same.

"Our coalition is encouraged by this powerful show of support for a solution developed with unions representing public employees and retirees.

"Today's strong, bipartisan vote in the Senate sends a clear message to the House: SB 2404 is constitutional, reasonable, and responsible. The House should pass the bill without change or delay."

You may have heard some talk about retiree opposition to SB 2404. But the IFT Retirees Constituency Council, which represents more than 13,000 retired educators statewide, has issued a strong statement of support for SB 2404. The Illinois Alliance for Retired Americans has also come out in support of the bill.

Together, we must continue the fight! Please thank your Senator if he or she voted yes, and tell your State Representative to support SB 2404 by calling 888/412-6570.

Keep checking your inbox and the IFT Web site to learn what you can do next to help ensure SB 2404 passes the House and moves to the Governor’s desk.  

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5/8/13 UPDATE

SB 2404 Passes Out of Committee.

IFT President Dan Montgomery testified in support of President Cullerton's SB 2404 today along with other leaders from the We Are One coalition.

"This proposal is the product of a long standing commitment of shared sacrifice and it shows that we can accomplish good things if we come to the table in good faith. I think there is nowhere else in the nation that states struggling with pension issues have been able to come to concord with those who represent public workers like we have in this bill."

It is very likely that both SB 2404, President Cullerton's fair and responsible legislation, and S B1, Speaker Madigan's pension slashing "mega-bill," will be called for a vote in the Senate TOMORROW!

Continue to check ift-aft.org for late breaking developments.

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5/6/13 UPDATE

As you know, we have been fighting to protect our pensions for several years now. While defending against drastic attacks to our guaranteed benefits, we have also been proactively trying to address the state’s fiscal crisis. 

For the past several weeks, our union coalition has been meeting with Senate President John Cullerton to try to negotiate a pension agreement, demonstrating our willingness to share in the sacrifice and be part of the solution in the fairest way possible.

And finally, we have reached an agreement.

The agreement echoes our principles. It includes an ironclad funding guarantee, revenue by dedicating additional payments to the pension system, contractual protections for access to health care in retirement under several options, and limits the shared sacrifice asked of workers and retirees who did not cause this problem. You will find a full summary of the agreement here.

President Cullerton calls our agreement “credible” and “constitutional.” It represents our willingness to help stabilize our retirement systems, but remains our final, best offer.

We have paid into the systems dutifully from every paycheck while Springfield skipped payments. Because of the failures of the past, our only option is to establish a plan for the future.

With this agreement, we have protected 90-95% of most people's pension benefits. Making these additional sacrifices is not easy, but we also know that the cuts contained in Speaker Madigan’s destructive “mega-bill” - SB1 - would be drastically worse.
 
Madigan’s “mega-bill” looms large, and threatens to slash 20% - in some cases, 45%! - of your retirement savings. 

• Madigan’s bill (SB1 as amended) cuts COLAs deeply through caps at extremely low levels, essentially ending the 3% compounded COLA as we know it for both active employees and most current retirees. Our agreement gives employees and retirees the option of maintaining a 3% compounded COLA.

  
  
• Madigan’s SB1 raises retirement ages without regard to the physically- and mentally-demanding professions held by public workers – nurses, police, teachers, and corrections officers, just to name a few.. Our agreement does not change retirement age.

  
  
• Madigan’s SB1 limits the amount of salary that earns a pension, failing to acknowledge the mandatory long hours and difficult jobs worked by many in public service. Our agreement offers viable ways to avoid that.

  
  
• Madigan’s SB1 offers no choice. It simply imposes steep cuts without adequate consideration. Our agreement gives employees and retirees a range of options.

The Speaker’s bill passed the House with bipartisan votes and the support of editorial boards across the state. It claims to save the state billions, but we believe the court will overturn it and render those savings fictional, though the outcome of litigation is never guaranteed.

SB1 is robbery, plain and simple, and could be called for a Senate vote any moment.

All the while, the systems holding our life savings will barrel toward bankruptcy. We’ll be faced with further cuts to education and critical public services, and the fight will continue on and on.

The Senate is now at a crossroads. They can call our agreed-upon bill, or choose devastation of SB1. Your advocacy is critical. We must fight to support our agreement and vehemently OPPOSE Madigan's SB1.

House approval of SB1 was a setback, but it was not a defeat. The result of our negotiations in the Senate offers the best chance for victory in this fight.

We urge that lawmakers on both sides of the aisle in both chambers embrace our agreement, and we ask that you encourage them to do so.
 
Call your state senators now toll-free at 888-412-6570 or click here. Ask them to reject SB1. Tell them to support SB2404, the fair and responsible plan agreed upon by the union coalition.
 
Thanks for all that you do.


See the complete We Are One coalition press statement below:

We Are One Illinois Union Coalition Reaches Pension Agreement with Senate President John Cullerton

The We Are One Illinois coalition of unions announced today that it has reached a negotiated pension agreement with Illinois Senate President John Cullerton, who will sponsor the measure. Details are available at here.

The following statement is attributable to Michael T. Carrigan, president of the Illinois AFL-CIO, on behalf of the We Are One Illinois coalition:
 
"The union coalition has made a great effort to ensure fairness for the public employees and retirees who did not cause this problem, to ensure the stability of the pension systems for future generations, and to offer a credible way forward. This agreement is our coalition's bottom line.
 
"We continue to strongly oppose Speaker Madigan's mega-bill, SB1, which threatens to rob the retirement savings of teachers, police officers, and others in public service, by 20-40 percent. His proposal is not only drastically unfair, but it is blatantly unconstitutional, rendering any advertised savings fictional.
 
"We urge lawmakers from both parties in both chambers to embrace the agreed bill and oppose SB1."

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5/2/13 UPDATE  

This afternoon, the Illinois House passed Senate Bill 1, Speaker Madigan’s pension-slashing “mega-bill” that could dismantle the modest pensions earned by thousands of workers and retirees. The bill passed by a vote of 62-51 and now goes to the Senate for consideration. You can see how your state representative voted here.

Our We Are One union coalition issued a statement immediately following the vote:

"Senate Bill 1 is unfair to the active and retired teachers, nurses, police, and other employees who paid out of every paycheck to fund their pensions, even as the state shorted its share. On top of that, it is blatantly unconstitutional and thus saves nothing. It simply exacerbates Illinois' fiscal problems. In contrast, our coalition had a productive meeting today with President John Cullerton, and we hope to be able to continue the dialogue."

As you know, a bill similar to Speaker Madigan's bill didn’t have support in the Senate. Even if that hurdle were cleared, this unconstitutional legislation would be overturned after a lengthy court battle, rendering any advertised savings fictional.

The drastic level of cuts to the lifetime savings of teachers and public employees in this bill is disgraceful. Those who dedicate their lives to public education, service, and safety service deserve better.

Our union coalition has been willing to share in the sacrifice, and we continue to work on a reasonable and constitutional solution. Our discussions with Senate President John Cullerton are ongoing, and we appreciate his willingness to hear us out.

Unfortunately, Speaker Madigan is not as receptive. Following the House vote, he offered this scathing take on our coalition and members: 

As SB1 heads to the Senate, we have to keep the pressure on. Please tell your Senator to vote NO by clicking here or calling 888-412-6570.

Stay tuned for further developments. This isn't over yet, and we're continuing to fight for you

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 5/1/13 EVENING UPDATE  

Earlier this afternoon, Illinois Senate President John Cullerton released a statement to the press indicating that he’s received a “credible” and “constitutional” pension proposal for consideration from the union coalition. As you know, we have been working closely with President Cullerton in an attempt to negotiate an agreement we can all support.

In response, our We Are One union coalition issued the following statement:

“Our coalition has consistently said that we want to work together with policymakers to address Illinois’ pension funding problem. We appreciate that, over the past several weeks, Senate President John Cullerton opened up dialogue with us, and we have worked diligently with him to find common ground. Today, we presented President Cullerton with a proposal that is both fair and constitutional, and we are heartened that he has responded positively to our efforts.”

Cullerton's statement came a few hours after Speaker Madigan's "mega-bill" zoomed out of a House committee. You can watch IFT President Dan Montgomery's testimony in opposition here.

This pension-slashing bill is likely to be called to the House floor for a vote tomorrow (Thursday).

As discussions with Senate President Cullerton continue this week, it is important that we do everything we can to stop the Madigan bill from advancing. Please click here to call your state representative or call toll-free at 888-412-6570. Benefits didn't cause this problem, and slashing them won't solve it.

Tell your state rep to VOTE NO on House Amendment 1 to Senate Bill 1.

Stay tuned for more developments, and thanks for all that you do. It was great to see so many members making their voices heard at IFT Lobby Day today!

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5/1/13 UPDATE  

URGENT! CALL 888/412-6570 NOW!

House Amendment 1 to Senate Bill 1 passed out of House Committee this morning despite vehement testimony in opposition from IFT President Dan Montgomery and other members of the We Are One labor coalition.

"This Madigan mega-bill is like the Corvair. There were things about it people liked, but it was unsafe at any speed," said IFT President Dan Montgomery during media interviews after his testimony.

Check the IFT Web site and follow IFT on Facebook and Twitter for updates.

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4/30/13 UPDATE  

PENSION ALERT! TAKE ACTION TODAY!

Today, Speaker Madigan unveiled a pension-slashing “mega-bill” that could dismantle the modest pensions earned by thousands of workers and retirees. The legislation is House Amendment 1 to Senate Bill 1. The amendment will be heard in the House Personnel and Pensions Committee TOMORROW morning -- Wednesday, May 1, at 8:30 a.m.

Call your State Representative NOW by clicking here or calling 888-412-6570 to voice your opposition!

This amendment to SB1:

• Caps Cost of Living Adjustments (COLAs) to $1,000 per year of employment ($800 for those coordinated with Social Security). For example, a 30-year employee (without Social Security) would receive an annual COLA on $30,000 in salary only.
• New COLAs will take effect when the employee turns 67 or five years after they retire, whichever comes first.
• Increases retirement age from one to five years, depending on current age
• Increases employee contributions by 2 percent over two years
• Caps pensionable salary
• Prohibits any local union from negotiating any contract changes related to pensions.
• Eliminates retiree healthcare funding

Read an additional summary of the bill here and the We Are One legislative fact sheet here .

Also, you may have heard our coalition leaders are working closely with Senate leadership in an attempt to negotiate a bill we can all support. Those discussions are ongoing, and we will keep you posted. In the meantime, it's very important that we express our opposition to this dangerous House proposal.

Click here to call your State Representative, or dial 888-412-6570 today.

Download this flyer to share with your co-workers, family, friends and neighbors.

Thanks for all that you do.

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4/29/13 UPDATE  

PENSION MEGA-BILL RUMORED THIS WEEK!
Strong rumors are circulating in the Capitol that  House Speaker Michael Madigan is preparing to develop a pension-slashing “mega-bill” that could dismantle the modest pensions earned by thousands of workers and retirees.

The House already passed three “test bills” that make massive changes to elements of pensions.  These bills cap Cost Of Living Adjustments (COLA) for workers and retirees, raise the retirement age for current workers, and cap the amount of salary that workers can earn for their pensions.

It’s time to call your State Representative to tell him or her to oppose the rumored House mega-bill.  The bill could be considered as soon as this Wednesday, May 1, so please click here to contact your State Rep. or call 888-412-6570 today.

It’s possible that the House may try to advance HB 3411 (Nekritz/Cross) as well.  This bill contains all of the pension cuts mentioned above (included in HB 1165, HB 1166, and HB 1154). In fact, HB 3411 goes even further, forcing new hires in TRS and SURS into a "Tier 3" 401(k)-hybrid retirement account and increasing employee contributions without an ironclad guarantee of state funding. IFT and our We Are One labor coalition partners oppose HB 3411. It has yet to receive a full House vote, but that could happen at any time. Many of HB 3411's components, like the 401(k)-hybrid plan, could surface in the "mega-bill."

Meanwhile, as you may have heard, our coalition leaders are working closely with Senate leadership in an attempt to negotiate a bill we can all support. Those discussions are ongoing, and we will keep you posted. In the meantime, it's very important that we express our opposition to these dangerous House proposals.

Click here to call your House representative, or call 888-412-6570 today.

Thanks for all that you do.

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4/19/13 UPDATE 

Throughout the week, the IFT’s legislative department  asked that members reach out to their State Representatives to demand they oppose any unfair, illegal pension slashing megabill. 
 
Your efforts helped stop the Illinois House from advancing any non-negotiated, draconian proposals this week.  Thank you!
 
In Springfield, top labor leaders and staff have been collaborating with legislators to ensure that retirement security for public employees and retirees is a priority in any pension solution.  We will continue that effort next week, as well.
 
The House is taking off for a one-week break next week. It will be a good time to stop by or call your House lawmaker to remind her or him just how important it is to oppose any legislation not agreed to by the IFT. 
 
The Illinois Senate will be in legislative session next week.
 
Make sure that you mark your calendar for IFT Lobby Day on Wednesday, May 1.  We need more members, retirees and families there to let Illinois politicians know that we’re watching.

IFT Briefings will be held in the morning and then members will be sent to the capitol to talk to their lawmakers. Lunch will be provided and members will be reimbursed for mileage.

Call the IFT legislative office to register and receive more information. 217-544-8562

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4/15/13 UPDATE

PENSION ALERT! TAKE ACTION TODAY!

It’s time to tell your State Representative to vote NO on pension bills opposed by the IFT!
 
Statehouse sources are reporting that, this week, a destructive pension-slashing megabill could be called for a vote. House Bill 3411 (known as the Nekritz/Biss/Cross bill), is an unacceptable, non-negotiated theft of workers’ retirements. 

Don't wait! Click to call or dial (888) 412-6570. Press "1" when prompted to be connected to your State Representative.


Then tell your Representative to:  

• Oppose HB3411 – the Nekritz/Biss/Cross pension theft proposal.
• Oppose all other non-negotiated pension proposals opposed by the IFT.

Dial (888) 412-6570 now! Tell your representative that you’re an IFT member. Tell him or her your profession (teacher, PSRP, higher education faculty or staff, or state employee). And state that you’re opposed to non-negotiated pension bills, like HB 3411. 


Thank you for your continued efforts to protect your hard-earned pension. We'll continue to work hard for you.

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4/5/13 UPDATE

Pension Megabill on the Horizon….Be Ready to Act!
The IFT and our union coalition partners strongly oppose three bills that were recently approved in the Illinois House. As soon as Monday, April 8, they may combine these illegal, destructive proposals into one new “megabill” and call it for a vote.

We must be ready to stop them! Watch your inbox and the IFT Web site beginning April 8 for an update on legislation and what you can do to help.

The House has already passed these unconstitutional bills:

• HB 1165 would dramatically cut the current Cost of Living Adjustment (COLA) for current and future retirees. See how your representative voted here.
• HB 1166 would increase the retirement age for many thousands of employees hired after January 1, 2011. See how your representative voted here.
• HB 1154 would cap pensionable salary for future retirees – possibly costing employees hundreds of thousands of dollars in earned retirement benefits. See how your representative voted here.

We cannot allow lawmakers to combine these three proposals into one illegal, pension-cutting “megabill”. Be ready to act beginning next week to tell representatives to vote “NO” on any bill opposed by the IFT.

Thank you for your continued efforts to protect your hard-earned pension.

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3/21/13 UPDATE (2:40 PM)

The House of Representatives focused on significantly different pension legislation today and passed HB 1165 by a vote of 66-50. Amendment 6 cuts the Cost of Living Adjustment (COLA) for current and future retirees in all of the public pension systems except for judges. The COLA for retirees would be reduced to just $750 a year or 3 percent of the total pension, whichever is less. The COLA would begin when an employee turns 67 or five years after they retire, whichever happens first.
 
You can see how your representative voted here.

The bill now moves to the Senate for consideration.
 
The Illinois Senate begins a two-week break starting today. The House is scheduled to be in tomorrow before going on break. The IFT-supported bill – SB 2404 – may be considered in committee when legislators return. It is also possible that SB 1, sponsored by Senate President Cullerton, will be called in the House, after an amended version passed the Senate yesterday (see below).

Please keep an eye on this post for more developments, and join us on Facebook and Twitter for more frequent updates.

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3/20/13 UPDATE (5:10 PM)

This is the last week of votes before lawmakers go on break, so as expected, we saw a lot of action in Springfield today.

The Illinois Senate passed a pension cutting bill for active members of the Teachers Retirement System (TRS) only. An amendment to SB 1, sponsored by Senate President Cullerton, changed the legislation to apply to just TRS actives and not retirees. This legislation passed by just one vote, 30-22-2. The bill forces current employees to choose between a diminished Cost of Living Adjustment (COLA) or elimination of access to health insurance plus a pension freeze at their current salary level. SB 1 doesn’t contain other pension cutting measures.
 
IFT President Dan Montgomery has long objected to this unconstitutional language, saying, “there is no free choice here but a coercive dilemma where a public servant must choose between harm on the one hand or even more harm on the other.”
 
SB 1 now moves to the House of Representatives for consideration. You can see how your senator voted here.
 
The Senate could vote at any time on a similar bill for state and university employees. Senate Bill 1544, amendment 3, would force members of SERS and SURS to make the same pension decision. Call your senator now and tell him/her to vote NO on SB 1544!

Prior to passing SB 1, the Senate voted down SB 35, sponsored by Senator Daniel Biss, 23-30-3.
 
 
Please keep an eye on this post for more developments.

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3/15/13 UPDATE

Retirement Age Increase (HB1166) – PASSED

IFT Position: OPPOSED

By a vote of 76-41, lawmakers passed legislation to increase retirement ages for employees hired before Jan. 1, 2011. The retirement age would increase by one year for those age 40-45, three years for those age 35-39, and five years for employees under age 35.
 
The bill moves to the Illinois Senate. You can view the legislation here and see how your State Representative voted here.
 
Pensionable Earnings Cap (HB1154) – PASSED 

IFT Position: OPPOSED
By a vote of 101-15, lawmakers passed legislation to set a cap on pensionable salary at the Social Security maximum, currently set at $113,700. This salary cap legislation is a significant change in Illinois pensions and, like virtually every proposal offered, is constitutionally questionable. 

Under the proposal, active workers will only receive pension annuities based on the maximum Social Security salary level, adjusted annually by the federal government. Additionally, workers would not be required to make employee contributions on any portion of salary above the federal rates. 

For workers who earn more than $113,700, their pensionable salary is capped at their current rate. This means that someone earning $120,000 will neither pay into or receive a pension above the current salary – even if their salary increases in the future.

The legislation does not apply to retirees and does allow top pensionable salary to be calculated under existing collective bargaining agreements or contracts.

The bill moves to the Illinois Senate.

You can view the legislation here and see how your State Representative voted here.
 
4 Percent Employee Contribution Increase (HB1166 Amendment 7) – FAILED

IFT Position: OPPOSED

The Illinois House also rejected a measure that would require current workers to pay an additional four percentage points of their salary to help fund their pension. While the IFT and the We Are One Illinois coalition has proposed a 2% contribution increase, our support for such an increase is predicated on a guarantee that Springfield politicians make the required pension payments and adopt a solid plan to pay the pension debt. This proposal did neither.



You can view the legislation here and see how your State Representative voted here. 

House Committee PASSES Cross/Nekritz Bill
The House Pensions and Personnel Committee passed HB 3411, sponsored by Representatives Tom Cross (R) and Elaine Nekritz (D) by a vote of 9-1. You can view the legislation here. The Chicago Sun-Times recently published a column by IFT president Dan Montgomery which discussed our opposition to this unconstitutional bill, which:

• Limits cost of living adjustments (COLA) to the first $25,000 of the employees’ pension

These new COLAs will take effect when the employee turns 67 or five years after they retire, whichever comes first.
• Increases retirement age from one to five years, depending on current age
• Increases employee contributions by 2 percent over two years
• Caps pensionable salary
• Creates Tier 3 defined benefit/defined contribution plan for SURS and TRS members who start work after January 1, 2014. Local employers and employees would be responsible for funding these plans.

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3/14/13 UPDATE
The Senate Executive Committee approved two bills opposed by the coalition -- SB 35 and SB 1. These bills could be called for a full Senate vote at any time.

Call 888/412-6570 and urge legislators to:

• SUPPORT SB 2404 and HB 3162
• OPPOSE all other pension legislation

Please keep an eye on this Web site and your inbox for developments and action alerts. 

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3/13/13 UPDATE
The Illinois legislature will be considering a variety of pension-related measures in committees and maybe even on the floor this week. Some bills have the We Are One labor coalition’s support -- such as SB 2404 and HB 3162.
 
The Senate Executive Committee meets at 3 p.m. on Wednesday, March 13. It may vote on three measures: SB 35, SB 1, and SB 2404. SB 35 and SB 1 are unfair to public servants who faithfully paid into the pension systems, even as the state skimped on or skipped payments. IFT believes that SB 35 and SB 1 are unconstitutional and will be overturned by the courts -- kicking the can down the road and worsening Illinois’ fiscal problems. Alternatively, SB 2404 is a fair, constitutional way to address the state’s chronic pension underfunding.
 
In the House, it is unclear what bills will be considered and what pension “test votes” will be taken this Thursday. It is possible that at least two major bills could see action, HB 3411 and SB 35. The coalition opposes both these unconstitutional bills. A coalition supported bill could also be called, HB 3162, which is identical to SB 2404 (described above).
 
Please keep an eye on this Web site and your inbox for developments and action alerts.

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3/07/13 UPDATE
As planned, mid-day on Thursday, the Illinois House of Representatives debated and voted on three pension-related measures. For the most part, House Republicans refused to vote at all for the three amendments, citing frustration for the political piecemeal approach established by Speaker Mike Madigan.

Pensionable Earnings Cap (HB1154 Amendment 7) – ADOPTED
IFT Position: OPPOSED
With nearly a Democrat-only vote of 65-7, lawmakers adopted a provision to set a cap on pensionable salary at the Social Security maximum, currently set at $113,700. This salary cap legislation is a significant change in Illinois pensions and, like virtually every proposal offered, is constitutionally questionable.

Under the proposal, active workers will only receive pension annuities based on the maximum Social Security salary level, adjusted annually by the federal government. Additionally, workers would not be required to make employee contributions on any portion of salary above the federal rates.

For workers who earn more than $113,700, their pensionable salary is capped at their current rate. This means that someone earning $120,000 will neither pay into or receive a pension above the current salary – even if their salary increases in the future.

The legislation does not apply to retirees and does allow top pensionable salary to be calculated under existing collective bargaining agreements or contracts.

Today’s vote did not pass legislation out of the House of Representatives; it only adopted an amendment and will require another House vote to send to the Illinois Senate. You can view the legislation here and see how your State Representative voted here.  

10-Year COLA Freeze (HB1154 Amendment 6) - FAILED
IFT Position: OPPOSED
With a vote of 2-67, House lawmakers rejected an amendment to set a 10-year freeze of Cost of Living Adjustments (COLAs) for retirees. Additionally, the legislation would establish that, upon retirement, a retiree would not collect a COLA for 10 years.

Currently, retired public workers receive a 3% compounded COLA. Often unsaid is the fact that workers also pay nearly one-half of a percent of each paycheck to pay for this benefit.

You can view the legislation here and see how your State Representative voted here.

4 Percent Employee Contribution Increase (HB1154 Amendment 8) – FAILED
IFT Position: OPPOSED
The Illinois House also rejected a measure that would require current workers to pay an additional four percentage points of their salary to help fund their pension. While the IFT and the We Are One Illinois coalition has proposed a 2% contribution increase, our support for such an increase is predicated on a guarantee that Springfield politicians make the required pension payments and adopt a solid plan to pay the pension debt. This proposal did neither.

You can view the legislation here and see how your State Representative voted here.

The House did reject two other initiatives that would freeze COLAs for 10 years and increase workers' contributions by four percentage points.

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3/06/13 UPDATE
House Speaker Michael Madigan has again listed the pension issue as part of the House’s “Weekly Order of Business” items. The process allows three bills - HB 1154, HB 1165 and HB 1166 – to be used for pension related amendments and proposals. Some, if not all, of the amendments will be debated and voted on by the full House, skipping the standard committee process.
 
The IFT and the We Are One Illinois labor coalition oppose all of the amendments that have been offered, EXCEPT those offered by Representative Jay Hoffman, who is sponsoring initiatives developed by labor. Hoffman’s amendments are:
 
                HB 1154, Amendment #4 – IFT SUPPORTS
                HB 1154, Amendment #5 – IFT SUPPORTS
 
The pension bills and amendments are slated for full House debate on Thursday, March 7. The statehouse rumor mill suggests that at least three amendments will be considered. While unconfirmed, it is possible that these amendments will be attached to HB 1154. The legislation would apply to the Teachers Retirement System, General Assembly Retirement System, State Universities Retirement System and the State Employee Retirement System.

Suspension of Annual Cost of Living Adjustments
An immediate 10-year COLA freeze for existing retirees. Upon retirement, all new retirees would not receive a COLA until 10 years after retirement. IFT is OPPOSED.
 
Limits on Pensionable Salary
A limit on each employee’s pensionable salary to the amount of the Social Security Wage Base, annually determined by the U.S. Government. The 2013 wage base is $113,700. IFT is OPPOSED.
 
Increase in Employee Contributions
Tier I participants will be required to pay an additional 4% of salary into their respective retirement system. The increase would be phased in over a two year period at 2% per year. For TRS participants, the contribution would go from 9.4% to 13.4%. IFT is OPPOSED.

Last week, the House of Representatives began the “Weekly Order of Business” process with four amendments to change pension benefits. Each proposal was overwhelmingly defeated. 

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2/28/13 UPDATE
The Illinois House overwhelmingly rejected a series of unfair, unconstitutional, and unproductive pension amendments that were placed on the floor today without the opportunity for public debate.

• HB 1154, Amendment 1 (eliminates COLAs) -- failed  2-66
• HB 1154, Amendment 2 (eliminates COLAs unless system is 80% funded) -- failed 5-62
• HB 1165, Amendment 1 (increases retirement ages to 67) -- failed 1-66
• HB 1166, Amendment 1 (to increase employee contributions by 5%) -- failed 3-61

Pensions could still be a major topic at the Capitol in the coming weeks. Visit ift-aft.org and check your inbox often to stay up-to-date on the latest pension legislation and what you can do to protect your retirement security. Thank you for your continued advocacy.

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