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.


* It's not as clear as it looks
* Exelon Tells Wall Street Its Illinois Plants Make Money So Why Is It Still Asking Springfield For A Bailout??
* EIU warns that stopgap won't be nearly enough
* Today's lede
* Question of the day
* Fun with numbers
* Nuclear Energy: Keeping the Lights on for Illinois’ Businesses
* Poll: 54 percent disapprove of Rauner in 99th House District
* Keep Fantasy Sports in Illinois
* Why the hostages sued
* Remap reform proposal crashes and burns in subcommittee
* CTU proposes concrete revenue plan
* *** UPDATED x1 - Trump last year: "I hear very good things about him" *** Trump never heard of Rauner?
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE *** Session Coverage
* Good morning!
* 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

  
* Xperia X Performance in UK won’t come from Sony, but likely from retail partners
* Cupertino’s mayor says Apple “not willing to pay a dime” to the city
* Could someone get hired to help make a Razer smartphone?
* Mozo now at Microsoft Store with covers for Lumia 550, 950, 950 XL
* T-Mobile is all about weekly freebies for Un-carrier 11
* Android Pay update could bring loyalty and gift cards to tap and pay
* Sean Parker’s Airtime acquires WebRTC video chat wizards vLine

* Petricka placed on DL; Kahnle recalled
* Eaton appreciative of mother's love, guidance
* Terrerobytes: John Danks bids farewell as DFA day arrives
* Abreu's early homer can't hold off Red Sox
* Rodon tips cap to Ortiz after tough loss
* Abreu's early homer can't hold off Red Sox
* Johnson gets call for rubber match with Red Sox

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


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

Archives
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
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


* Letter: Pass Gov. Rauner's education funding bi.....
* Social service agencies sue Illinois state lead.....
* Vote on school funding reform plan delayed - Th.....
* Gov. Bruce Rauner won't attend GOP convention o.....
* Southern Illinois 911 Coordinator Opposes Fund .....
* Gov. Rauner won't attend Republican convention .....
* Editorial: Pot, meet kettle - Peoria Journal Star..
* Illinois Gov. Bruce Rauner won't attend Republi.....
* Lawmakers: Act now to save Chicago police misco.....


* Du Quoin State Fair officials create vendor payment program
* Illinois Senate approves $454 million more for colleges
* Illinois GOP lawmakers want auditor spending answers
* Springfield university breaks ground on student union
* Cook County medical examiner resigns after remaking office
* 2 Illinois state parks reopen after donor pays electric bill
* EXCHANGE: Welding and manufacturing students build résumés
* Chicago officer in McDonald case wants protection at court
* Illinois eagle hit by gunshot might fly again after surgery
* Man who authorities say was texting in fatal crash sentenced

* Road fund bill the only constitutional amendment to pass both chambers
* Vote on school funding reform plan delayed
* Illinois GOP lawmakers want campaign spending answers from Auditor General Frank Mautino
* Memorial day honors fallen Illinois police officers and their families
* Illinois Senate passes $454 million more for colleges
* Event showcases Illinois students' history research
* Du Quoin State Fair officials create vendor payment program
* 2 Illinois state parks reopen after donor pays electric bill
* After Hastert sentencing, Illinois weighs change to child sex abuse law
* Heroin epidemic demands new approach, Springfield-area officials say

* As nuke closures loom, Exelon floats new rescue plan
* Humana, like rivals, may exit Obamacare exchanges
* Humana, like rivals, may leave Obamacare exchanges
* Claire's replaces its CEO
* Amid losses, Claire's replaces its CEO


* O’Hare plan could reduce night noise to 68,000 residents: study
* Firefighters battle extra-alarm blaze at Harvey store
* Man grazed by bullet in Irving Park
* Man shot in Little Village
* Sneed: Questions for Trump to clear up
* In ‘Infinity,’ Jeremy Irons a genius who ‘dropped out of history’
* Police: Elderly man missing from Ashburn
* Fast starts by Chicago baseball teams catches commissioner’s eye
* Steinberg: Stop pretending and go back to having a ‘coroner’
* Woman shot in West Lawn home invasion


* Trump's Cinco de Mayo post draws ire from some Latinos
* Gov. Bruce Rauner won't attend GOP convention or endorse Trump for president
* Turkey's last shreds of balance are disappearing
* Self-confessed killer, `the punisher,' shakes up Philippine race
* House Speaker Paul Ryan refuses to back Donald Trump
* Investigators find scant evidence Clinton intended to break rules in handling emails
* MLB commissioner Rob Manfred on PED accusations
* Transgender prom queen nominee crowned media darling, critics' target
* Could airborne cable car boost Chicago tourism?
* Suspect evades police after hourlong chase through suburbs, city


* Illinois Senate passes $454 million more for colleges
* Memorial day honors fallen Illinois police officers and their families
* Road fund bill the only constitutional amendment to pass both chambers
* Vote on school funding reform plan delayed
* Illinois GOP lawmakers want campaign spending answers from Auditor General Frank Mautino
* Event showcases Illinois students' history research
* Du Quoin State Fair officials create vendor payment program
* 2 Illinois state parks reopen after donor pays electric bill
* Bernard Schoenburg: Union-commissioned poll shows support for arbitration
* After Hastert sentencing, Illinois weighs change to child sex abuse law


* HS Softball: Unity vs. Monticello
* Done deal: Nontenure-track union members ratify 5-year contract with UI
* Mummies Take Over the Canopy
* Here Come the Mummies Take Over the Canopy
* PODCAST: Sports Talk 05-05-16
* Coroner: UI student Bret Vogt died from traumatic head injury
* LaTulip transferring to Wright State
* PODCAST: Club Krannert with Bridget Lee-Calfas 05-05-16
* House Speaker Paul Ryan refuses to back Donald Trump
* Asmussen: Fitzgerald works his way up


* It's a boy! But still no name for dolphin calf at Shedd
* Hawthorn Woods school, church observe National Day of Prayer
* Kane County might assume more child support costs from state
* Back in town, Baker hopes he had impact on Cubs
* Search continues for suspect in Lombard drug-induced homicide

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Senator Durbin Corrects the Record on Gitm......

* Ratings Change: Kirk Race Downgraded to Le......
* U.S. Sen. Dick Durbin: There are compellin......

* A bigger threat than Friedrichs ever was.
* Graduated Income Tax Amendment Stalls In Illinois House
* Tony at the Red Line Tap.
* lllinois GOP Legislators Question State Auditor's Previous Campaign Spending
* Plan To Dissolve Belleville Township Gets Approved
* Alvarez Recuses Herself From McDonald Case
* Ventra Puts Financial, Administrative Burdens On Chicago-Area Social Service Providers, Report Finds
* Alvarez Recuses Herself From McDonald Case (UPDATED)
* Illinois House OKs Redistricting Amendment
* Cartoon Of The Day


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller