SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x1 - IFT Responds *** The next time you blame the state for skipping pension payments, remember this

Thursday, May 31, 2012

* For a while, yesterday’s pension reform debate in the Senate Executive Committee focused on the state’s past failure to make pension payments. But one Senator objected to the claims by unions that this is all the General Assembly’s fault

Teachers unions have protested cuts to their benefits, saying it was lawmakers’ actions, skipping payments into pension funds, that created the debt.

Senate Republican Leader Christine Radogno shot back during a hearing, presenting old paperwork from 2005 showing that both the Illinois Education Association and Illinois Federation of Teachers supported skipping the payment then.

“There’s plenty of culpability to go around,” the Lemont Republican said.

* I asked the Senate Republicans for the list of proponents and opponents of the bill which allowed the state to skip pension payments. Here it is…

SB 27 Proponnents:

Rich Frankenfeld, IEA “testimony if necessary”
Derek Blaida, CPS
Steve Preckwinkle, IFT “testimony if necessary”
Laura Arterburn, IFT
Michael McGann SEIU
Kurt Anderson SEIU

Opponents:
Randy Witter, Retired State Employees Association
Martin Noven, Treasurer’s office (Topinka)

Topinka was furious about the pension payment holidays back then and, as it turns out, she was right.

*** UPDATE *** From the Illinois Federation of Teachers…

SB 27 originally contained other pension language including changes to the Early Retirement Option and end of career salary increases that reduced the state’s cost for pensions by over $80 billion. In addition to supporting these pension reforms, the unions also supported increased gaming revenues, a higher cigarette tax, or the issuance of Pension Obligation Bonds to cover pension costs. The leadership refused to consider these options and chose to add the pension holiday at the last minute. We never supported that provision of the bill.

- Posted by Rich Miller        


26 Comments
  1. - Anonymous - Thursday, May 31, 12 @ 9:23 am:

    How ironic. Frankenfeld retired from the IEA and is now getting his second dip at, of all places, TRS.


  2. - Michelle Flaherty - Thursday, May 31, 12 @ 9:27 am:

    What were they thinking?!


  3. - RIGHT - Thursday, May 31, 12 @ 9:29 am:

    Topinka was furious about the pension payment holidays back then and, as it turns out, she was right.

    DUHH!


  4. - Yellow Dog Democrat - Thursday, May 31, 12 @ 9:44 am:

    @imteacher -

    I wasn’t in the room, and I wouldn’t characterize it as blackmail, just “horse trading.”

    But yes, teachers unions were probably told that without the skip in pension payments, there would be cuts in education funding; SEIU was likely told the same thing with regard to health care funding.


  5. - titan - Thursday, May 31, 12 @ 9:47 am:

    Was it just the teachers’ unions? Or were other pensioner groups in on it too?


  6. - Michelle Flaherty - Thursday, May 31, 12 @ 9:47 am:

    YDD,
    And the irony is that without substantial pension reform, ed funding and human services will take a huge hit in next year’s budget to accomodate the growing pension payment and another huge hit the year after that and the year after that …


  7. - lincolnlover - Thursday, May 31, 12 @ 9:52 am:

    No AFSCME proponents in 2005?


  8. - Inactive - Thursday, May 31, 12 @ 9:56 am:

    Is that the whole story? I’d bet the “if necessary” vote went along with “provided it is made up in the next year” or whatever. I’m thinking this is a bit of a half truth and misleading in order to inflame.


  9. - KurtInSpringfield - Thursday, May 31, 12 @ 9:59 am:

    As a member of AFSCME, I am relieved they were not proponents of that bill in 2005. As I understand it, AFSCME, at some point in the past, actually filed a lawsuit to force pension funding, but the courts struck it down.


  10. - Pension Junkie - Thursday, May 31, 12 @ 10:00 am:

    Debunking the urban legend of “pension holidays”, and in response to Senator Rodagno, Dragnet’s Joe Friday said it best, “Just the facts ma’am”:

    According to Comptroller Topinka’s FY2010 Comprehensive Annual Financial Report (CAFR), the FY2006-2007 pension holiday’s were repaid in the form of additional contributions from FY2008-2010 ( http://www.comptroller.state.il.us/index.cfm/linkservid/083E57BA-1CC1-DE6E-2F48783E3F984EF7/showMeta/0/ p.122)

    “Funding Policy and Annual Pension Cost. Member contributions are based on fixed percentages set by statute ranging from 4.0% to 12.5%. The state’s funding requirements have been established by statute (Public Act 88-593) effective July 1, 1995 and provide for a systematic 50-year funding plan with an ultimate goal to achieve “90% funding” of the systems’ liabilities. In addition, the funding plan provides for a 15-year phase-in period to allow the State to adapt to the increased financial commitment. Once the 15-year phase-in period is complete, the State’s contribution will then remain at a level percentage of payroll for the next 35 years until the 90% funded level is achieved. However, Public Act 94-0004 decreased the required funding levels for fiscal years 2006 and 2007 to $938.400 million and $1.375 billion,
    respectively, and requires the State’s contribution to increase in equal annual increments from fiscal years 2008 to 2010 to ensure that the fiscal year 2006 and 2007 decreases have no longterm effect on contributions.”


  11. - mark walker - Thursday, May 31, 12 @ 10:09 am:

    This says a lot more about Radogno’s current willingness to move forward with reform, than it does about the unions back then.


  12. - western illinois - Thursday, May 31, 12 @ 10:11 am:

    Yes members never got a holiday(unlike Soc Security currently)
    I think it was AFSCME taht did sue maybe more than once, The courst said they Constitution requires payment out not payment in.
    Legally correct. Financially foolish but courts rule on law,mostly


  13. - Freeman - Thursday, May 31, 12 @ 10:23 am:

    My regard for Topinka only increases. Continue finding that true more and more with the passage of time.


  14. - Rich Miller - Thursday, May 31, 12 @ 10:23 am:

    ===members never got a holiday===

    Actually, you did. Edgar negotiated a deal that included the state picking up the employees’ share of the pension payment.


  15. - sal-says - Thursday, May 31, 12 @ 10:24 am:

    Apparently, according the the legislature, “it’s always somebody else’s fault”?

    Now, it’s the WITNESSES fault !!!

    How about that for spin? Sorry. The WITNESSES didn’t pass the bill; the LEGISLATURE did.


  16. - Anyone Remember - Thursday, May 31, 12 @ 10:37 am:

    Rich -

    The pension pickup was in lieu of a raise. Yes, employees got an increase in take home pay, but don’t really consider that a “holiday” … just a raise.


  17. - Ahoy! - Thursday, May 31, 12 @ 10:51 am:

    Can’t we just agree that the unions and the GA were both not thinking about long term consequences of their actions because in the end, their all dependent on elections?


  18. - Yellow Dog Democrat - Thursday, May 31, 12 @ 10:53 am:

    @Ahoy! -

    Can’t we agree the voters weren’t thinking of long-term consequences either?


  19. - One of the 35 - Thursday, May 31, 12 @ 11:16 am:

    I asked the question in another thread yesterday. When is Madigan going to be held accountable for the decision to skip two years of pension contributions making an already bad situation much worse?


  20. - Panopticon - Thursday, May 31, 12 @ 11:58 am:

    AFSCME does not allow the members to vote on anything other than the contract. Unless you are a Local Union President or one of AFSCME ’s Council, it doesn’t matter what the members think. If this were the IEA then it should just pertain to TRS, but in Illinois anything is possible. The pension systems have been raided by the GA for over fifty years, Ragdono wants to place blame on something that happened in 2005? Governor Edgar understood the problem, inherited a deficit, and in less than 5 years turned it around, leaving Ryan and the GA a surplus of money. Ryan is in prison, Blagojevich is is in Prison, the real question is why the GA is not serving time with them.


  21. - Robert - Thursday, May 31, 12 @ 12:03 pm:

    ==When is Madigan going to be held accountable for the decision to skip two years of pension contributions making an already bad situation much worse?==
    Certainly never for that. He does quite well in elections in his district, and he controls any districting. Only chance to hold him accountable for anything would probably be a politically motivated republican prosecutor going after him for accepting campaign contributions via his property tax apppeal firm, but Madigan is no dummy, so that won’t be easy.


  22. - Cal Skinner - Thursday, May 31, 12 @ 1:16 pm:

    The teachers’ unions consistently pushed for more State Aid to Education using the money that Governors’ budgets set aside for pension payment.

    Current employees (and dues payers) vs. retired teachers.

    No contest for the unions in that decision.


  23. - Anyone Remember? - Thursday, May 31, 12 @ 4:51 pm:

    Robert -

    See Pension Junkie’s post at 10:00 am.


  24. - public policy person and lawyer - Thursday, May 31, 12 @ 6:07 pm:

    @western illinois. I am so glad that I found you on this blog. You seemed so sad the other night. Did a little research. Not hardcore, but this should make you feel a little better.

    Like Cook County employees, TRS employees make contributions to pension colas and get them by statute. 40 ILCS 5/16-133.1, 40 ILCS 5/16-152. Judges makes contributions to pension colas and get them by statute. 40 ILCS 40 ILCS 5/18-133, 40 ILCS 5/18-125.1

    While SURS and SERS by statute are due pension colas, I could not find a statute saying that you actively pay for them now. 40 ILCS 5/14-114, 40 ILCS 5/15-136. Maybe it is written into your contracts.

    In a article, I saw one legislator say that your retirement health care benefits were granted in 1997, but I did not find that in the pension code. Sorry.


  25. - jake - Thursday, May 31, 12 @ 6:12 pm:

    Just for the record, the Pension Bonds were issued, but under a separate bill. They have turned out to be a good deal for the state, since the funds that they enabled putting into the pension systems’ investment portfolio have outpaced the interest on the bonds. It would be a good time now to issue pension bonds, with interest rates so low. But while it would be good policy, it would be bad politics. People would scream the “B” word, and obscure the fact that this would be borrowing to invest, rather than borrowing to spend.


  26. - ZC - Thursday, May 31, 12 @ 6:44 pm:

    In fairness and re YDD’s point, nobody - absolutely nobody, including we the people - seems very good at anticipating and preventing these slow-moving train wrecks.

    See: the current challenges facing Medicare, global warming, etc.

    There is an interesting question here however and it’s why Illinois among the 50 states seems unusually bad at it.


Sorry, comments for this post are now closed.


* Not yet
* Question of the Day
* REAL Peoria mayor defends Twitter raid
* Noland lone "No" vote on Madigan for DPI chair
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Omate TrueSmart partners with Minuum keyboard
        * Samsung’s Own Apps Don’t Get Used Much, But That’s No Surprise
        * Podcast: Green Day
        * Samsung Galaxy Tab 4 US release date set for May 1
        * OnePlus One announced as the ’2014 flagship killer’
        * OnePlus asking users to “smash the past”
        * Apple Profiles Apps Used To Create Its ‘Powerful’ New Ad

        * The Pivotal Technique Cuts the Crap Out of Learning How to Change
        * The internet is going private. It’s also grown to 138 Tbps of capacity
        * In Q1, Facebook still reigns supreme in social referrals
        * The OnePlus One smartphone runs CyanogenMod, will cost $299
        * Who will crack the code on tech for seniors?
        * Bloom Necklace for Misfit Shine Activity Tracker
        * Blood Alcohol Finder Estimates Your BAC Over Time Based on Your Drinks

        * White Sox injury updates: Chris Sale, Conor Gillaspie, Adam Eaton a...
        * Rienzo tasked with slowing Detroit's powerful lineup
        * Leesman endures short outing in first start
        * Tigers 8, White Sox 6: Turning a mismatch into a game
        * Leesman endures short outing in first start
        * Ventura not basing decisions solely on pitch count
        * Gillaspie sits out with sore left hand


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Car dealer says`Buy American' proposal off mark..
        * Quinn issues 'Wrigley Field Day' proclamation..
        * Robo-calls on pension reform bill raise Rauner-.....
        * Correction: Illinois Medicaid-Overpayments Story..
        * IRS gave bonuses to naughty employees — IRS mak.....
        * Mayor Rahm Emanuel Man at Rauner Campaign..
        * Governor issues 'Wrigley Field Day' proclamation..
        * Today is Wrigley Field Day in Illinois..
        * Emanuel's office rips Rauner robocalls on pensi.....
        * Governor proclaims Wednesday as 'Wrigley Field .....


        * Peoria mayor defends response to Twitter account
        * Hearing for Air Force staffer in pipe bomb case
        * Police: 1 person dies after van slams into CTA bus
        * Scorekeeper at Wrigley practices dying art
        * APNewsBreak: Gacy case helps solve unrelated death
        * Teen sentenced to probation for Prophetstown fire
        * Happy 100th, Wrigley Field! A few memories
        * Lawsuit seeks investigation of hiring under Quinn
        * Lawsuit against Mississippi gun dealer settled
        * Hastert among GOP supporters of immigration reform

        * Clock ticking for states to adopt health exchanges
        * Madigan re-elected to lead state Democratic party
        * Hastert, other state Republicans supporting immigration reform
        * Lawsuit seeks investigation of hiring under Quinn
        * GOP lawmaker objects to 9-0 vote for Obama library
        * DNR mining-oversight official fired
        * Democrats: Illinois schools could face major cuts
        * State prisons to use costly drug for hepatitis C
        * Illinois Medicaid paying for dead clients
        * Quinn grants 43 clemency requests

        * Boeing makes planes faster, beats estimates
        * Ebony taps Jet editor to take top slot
        * First Midwest to buy Banco Popular's Chicago business
        * FCB, Starcom nab Choose Chicago ad business
        * Why a racetrack honcho put his office in the basement


        * Ex-head of suburban religious organization denies sex harassment
        * FBI informant on tape hugging man before shooting him: prosecutors
        * Robo-calls on pension reform bill raise Rauner-Rahm rift
        * DNA solves murder of Northwest Side man missing since 1978
        * Robo-calls raise Rauner-Rahm rift
        * Ari Emanuel’s stake in ride-share firm raises uber questions
        * Ari Emanuel’s stake in ride-share firm raises uber questions: Mihalopoulos
        * Vehicle hits Roseland bus stop after police chase, injures 5
        * Vehicle hits Roseland bus stop, 5 injured
        * No public money for Obama library


        * Watchdog questions free parking for city workers
        * Watchdog questions free parking for city workers
        * Man shot to death in Grand Crossing neighborhood
        * Northwestern football players to vote on union Friday
        * Pawnshop that sold gun in cop killing agrees to report more on sales
        * IHSA lifts suspension of girls basketball coach
        * Emanuel's office rips Rauner robocalls on pension bill
        * Emanuel's office rips Rauner robocalls on pension bill
        * CPS mulls privatizing 3 more schools
        * Two officers hit by fleeing car in East Garfield Park


        * Initial Obama Library Vote A "Misunderstanding"
        * Legislator Protests Madigan As Party Chair, Won't Say Why
        * Tax Returns Revealing ... But Not Revealing Enough
        * Quinn Releases Tax Returns; Rauner's Waiting
        * Illinois Senate Joins Push For U.S. Constitutional Convention
        * Quinn Signs Law Intended To Lower Cost Of Auto Leasing
        * Mayors' group pushes for Illinois pension reform
        * Two don't-miss events this Wednesday
        * Illinois Medicaid Paying For The Dead
        * Wait Continues For Schools' Fate Under Proposed New Formula


        * Our Opinion: Top Teen making Springfield a better place
        * Our Opinion: Computer lab a boost for the homeless
        * Lawsuit seeks investigation of hiring under Quinn
        * Madigan re-elected to lead state Democratic party
        * Madigan: 'Misunderstanding' on Obama library vote
        * Hastert, other state Republicans supporting immigration reform
        * Audit: Treasurer's office has 30 guns not given to police
        * State audit: Police training money misspent
        * Amazon takes hit in states with online tax, study says
        * Bankruptcy court trial sought over $3.8 million paid to Parsons


        * Drive-by shoots man through Washington Park gas station window
        * Big Ten recruits, games to watch
        * Car dealer says`Buy American' proposal off mark
        * Daily business briefing: Toyota outsells GM
        * Clinton council looks to slow hiring of hospital's management firm
        * Loren Tate 4/23/2014
        * SARAA Alert: Police searching for missing Belleville boy
        * Nice weather Wednesday -- but it won't last
        * Council delays action on changing neighborhood business district
        * Meg Makes: Take these recipes and run with them


        * The 10th District money race
        * Aurora Democrat calls out IHSA
        * Lawyers: Ill. hazing law vague, unconstitutional
        * Ill. House OKs lower-cost hunting bill for seniors
        * Quinn’s running mate takes new consulting job

        * Rahm, Danny Davis Cheer Expansion of Ex-Of...
        * Rep. Robin Kelly marking first year in off...
        * When Punishment Is Torture: An Open Letter...
        * Jesse Jackson Jr. placed in solitary confi...
        * Jesse Jackson Jr. Changes Prisons, Could B...
        * Inmates Sent To Solitary Confinement For H...
        * Friend — Not Feds — Transports Jesse Jacks...
        * Jesse Jackson Jr. Transferred To Alabama P...
        * Jesse Jackson Jr. sent to solitary then tr...
        * Jesse Jackson Jr. Maneuvers Himself Into M...

        * Loading Koch Industries Website Too Many T......
        * Maryland and DC among worst for food aller......
        * Cleveland State University to reestablish ......
        * Convicted political boss Al Sanchez runnin......
        * Candidates make last filings for local, st......

        * Illinois Lt. Gov. Simon opposes pension le......
        * Dillard Odd Man Out on Pension Deal Reaction...
        * Sen. Mark Kirk sides with Rauner on pensio......
        * Governor's race infighting threatens pensi......
        * SCHOONERS - Home of Everyone's Favorite Be......

        * 8th CD GOP candidate Larry Kaifesh rallies Tea Partiers
        * Weyermuller: Senator Rand Paul urges school choice in Chicago
        * The Chicago Dictionary: Volume Three
        * State Rep. Sullivan says Democrats intend to use Obama Library as wedge issue
        * The [Friday] Papers
        * CapitolFax: GOP Leaders are “Nay” to Obama library
        * Meet Orlando Rivera And His Chicago Cuatro Orchestra
        * Thorner: Anti-Amnesty rally planned in Chicago to oppose GOP leadership
        * Kinzinger and Schock encourage immigration reform [video]
        * Sunday book review section. This is Not a Test.


        * Governor Quinn Promotes Welcome Home Illinois Program at Annual Affordable Housing Conference - Addresses Industry Leaders on State’s Improving Housing Market and New Program for First-Time Homebuyers
        * IEMA Encourages Participation in ‘America’s PrepareAthon!’ on April 30 - First National Day of Action Expected to Draw Millions of Participants
        * Redeploy Illinois Program Diverts Thousands of Youth From Prison System, Saves State $60 Million - New analysis of prison diversion initiative shows 54 percent reduction in juvenile incarceration
        * Illinois EPA Recognized for 40 Year of Graduate Public Service Internship Partnership with University of Illinois at Springfield - Agency Internship Programs Help Students Gain Real-World Knowledge of Environmental Protection and Regulations
        * Governor Quinn Proclaims Tuesday, April 22, Earth Day in Illinois - Urges People Across the State to Go Green and Continue Environmental Consciousness




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller