IEA update on Governor Quinn’s announcement regarding pension reform. A group of four legislators agreed on the following ideas for this reform:
- Benefit reduction
- Increase in payroll contributions
- Limit or reduce COLA
- Shift costs to school districts
The findings of the Governor’s task force include the following:
- Current member contribution increase of 3%
- COLA to be adjusted similar to Tier II, which is connected to CPI. Compounding after 5 years or to age 67
- Shifting costs to school district with a phase-in method
- Choice between health care or COLA
The labor coalition (IEA) is proposing additional funding sources:
- Proposals and bills to close loopholes
- Increase gaming in Illinois
- Graduated income tax
IEA’s position to changes is as follows:
- Changes must be legal and constitutional
- Modifications should be fair to IEA members
- Changes must maintain stability of TRS
House bill HJRCA 49 passed the house by 113-0 for the following constitutional amendment. IEA opposes this bill:
- 3/5 vote for changes
- No changes to Tier II
- Collective bargaining would need a 3/5 vote of membership
IEA made it clear that if an unconstitutional bill is passed and signed by the governor, IEA will take legal action and file a law suit against the state. IEA stressed that the above are only proposals and no bills have been passed or ratified. However, IEA members must be vigilant because changes occur hourly. Therefore, IEA members should check the website daily and be ready for a “call to action” on bills that may threaten the profession.