image
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Stay requested on pension law

Friday, May 2, 2014

* The State University Annuitants Association has filed a motion requesting that the relevant portions of the pension reform law be stayed. WUIS has more

These workers can escape some of the pension reductions if they quit before July. But once someone retires, there’s no going back.

The filing argues that “misinformation and confusion” surrounding the pension law is widespread.

And with State University Retirement System overwhelmed with members seeking counseling, people are having to make these decisions without “the benefit of full information.” It says many workers may be compelled to retire on the mere chance the law would be upheld.

Though the motion is specific to members of the State University Retirement System, a stay would likely be effective for all affected public employees.

I’ve requested a copy of the motion. Check this post for updates in a bit.

…Adding… Click here to read the motion.

…Adding more… With a hat tip to a reader, this was in the DeKalb Daily Chronicle

As many news organizations have reported in the past week or so, the new, controversial pension “reform” law includes a mistake that affects some public university employees and is causing what some are calling “a mass exodus.”

That’s not an exaggeration. Just at NIU, it’s been reported that as many as 800 employees, or 20 percent, are suddenly heading for the exits. Without even concentrating, I personally can think of about 10 people leaving. Sure, some faculty members might come back to teach on an ad hoc basis, but many won’t and very few staff will return.

- Posted by Rich Miller        


25 Comments
  1. - yinn - Friday, May 2, 14 @ 3:00 pm:

    I was just reading that NIU stands to lose up to 20% of its employees.

    http://www.daily-chronicle.com/2014/05/01/akst-whats-really-wrong-at-niu/al4wwcy/


  2. - Stuff happens - Friday, May 2, 14 @ 3:00 pm:

    We’ve already lost a few people who are fleeing before the July deadline. I’m not surprised, and it makes sense to me.


  3. - Formerly Known As... - Friday, May 2, 14 @ 3:03 pm:

    That sounds more like an exodus than a trickle. Sheesh.


  4. - Formerly Known As... - Friday, May 2, 14 @ 3:08 pm:

    == controversial pension “reform” law includes a mistake ==

    That’s a pretty significant “mistake” to be missed by the House, the Senate, the Governor, the Pension funds, the Civic Committee-types and all of their staffers.

    No one thought of this? Or no one cared?


  5. - Walker - Friday, May 2, 14 @ 3:11 pm:

    Is there an unintended “mistake” in the drafting of the law, or isn’t there?

    That would be a reasonable basis for a stay.

    “Misinformation and confusion” surrounding the pension law is as much the fault of union leaders and advocates, as anyone else. Not sure that alone gets you a stay.


  6. - anon - Friday, May 2, 14 @ 3:11 pm:

    The Puerto Rico Supreme Court recently cited a rush of early retirements as a reason for striking down teacher pension cuts as a contract clause violation: “In the 5-3 teacher pension case, the majority … concluded that the legislature and governor had acted unreasonably in enacting the legislation, because (according to the majority) the legislation failed to take into account the high number of accelerated teacher retirements the legislation would provoke, which (according to the majority) would further strain, rather than improving, the teacher pension system’s finances.” And this, too: “The court noted that the legislation had been enacted during a 6-day period and that the legislature had commissioned no studies about the early retirements the legislation might trigger or the impact of such early retirements on the system’s solvency.” http://www.natlawreview.com/article/municipal-bond-market-absorbs-puerto-rico-supreme-court-s-decision-teacher-pension-r


  7. - Becasue I say so... - Friday, May 2, 14 @ 3:15 pm:

    Not only are faculty and staff running for the doors, the state stands to lose millions in grant funding. When these highly sought after faculty members leave, many will take their grant dollars with them.


  8. - kimaye - Friday, May 2, 14 @ 3:15 pm:

    Well, that’s one way to reduce state worker head counts, I guess. Crazy.


  9. - RNUG - Friday, May 2, 14 @ 3:17 pm:

    Just finished reading the motion. I was kind of expecting this because of the huge impact of the Money Purchase Option changes.

    Overall, they make a good case for a temporary stay. And they also offer 4 different choices for the stay, if the courts want to order something short of a complete TRO.

    The confusion is not just at SURS institutions. In the past couple of weeks I have heard from a number of SERS employees who were being advised by various sources to retire before May 1 in order to avoid the pension changes … apparently on the theory that anyone who retired before the effective date would be grandfathered into any protection affirmed by the courts. I don’t know how many SERS employees bailed April 30; only one of the people I talked with got back to me and siad they had decided to stay for now.

    And it is in the best interest of the taxpayers to have a smooth and orderly transition. The last time there was a mass retirement in 2002, it had some not so obvious but severe consequences on state operations.

    Given the valid questions about “pension reform” constitutionality, IMO it would be smart if the State also requested / concurred with this TRO.


  10. - anon - Friday, May 2, 14 @ 3:22 pm:

    SURS is the only system claiming there’s an error that forces these people to leave early.


  11. - Anonymous - Friday, May 2, 14 @ 3:28 pm:

    Actually the error referenced by anon will have little impact on the exodus. Money purchase changes will result in an exodus regardless of whether or not the error is corrected.


  12. - in the know - Friday, May 2, 14 @ 3:34 pm:

    for SERS employees, the deadline, per the pension system is JUNE 1, which means that the decision point for many is to be gone no later than May 15.
    Very confusing.


  13. - Langhorne - Friday, May 2, 14 @ 3:37 pm:

    Its a horrible mistake. Unintended. Fix it


  14. - RNUG - Friday, May 2, 14 @ 3:42 pm:

    FWIW - I’ve heard from SURS people about this mistake since shortly after it was passed. It was pretty much common knowledge in the university systems. The GA has had time to fix it if they wanted to.


  15. - mythoughtis - Friday, May 2, 14 @ 3:45 pm:

    According to various AP newspaper articles, there were 1100 SERS (NOT SURS) people intending to retire April 30th. The normal number is 200. TNEeaCCI


  16. - Norseman - Friday, May 2, 14 @ 3:45 pm:

    Perhaps some legal eagle can answer this. I’m curious as to what will happen to these university folks under the following scenario:

    - A stay is issued and they don’t retire because of it.

    - The SC lifts the stay after it rules after July 1st that the law is constitutional.

    Are the university folks then penalized for not having retired prior to July 1st?

    I guess, there could be a request to the SC to establish a new effective date to occur X number of days from the constitutionality ruling to allow the University folks to retire without the penalty.

    My point is that if I were a university person in this position, I would still retire even if a stay were issued unless I could be 100% assured that I could do so at the end of the ruling without penalty.


  17. - Tsavo - Friday, May 2, 14 @ 3:47 pm:

    http://www.wifr.com/news/headlines/Illinois-State-Workers-Retire-At-Higher-Rate-in-April-257691651.html

    Link to article concerning number of employees retiring in April.


  18. - OneMan - Friday, May 2, 14 @ 3:50 pm:

    So what exactly is the mistake…

    I have a very small amount (a few hundred) with this system from teaching at the local CC a couple of times.


  19. - Norseman - Friday, May 2, 14 @ 4:01 pm:

    To all those folks who are rightly pointing out the likely adverse impact on the operations of the universities, don’t waste your breath.

    These issues were raised during the deliberations and GA didn’t care about them when they passed the bill. They solved the immediate problem. It’s their practice to only solve one crisis at a time.

    When the university decline becomes evident to the public in a few years, they’ll come up with some patchwork proposal to “solve” this new crisis. Strategic thinking is not practiced by the Solons.


  20. - Old and in the Way - Friday, May 2, 14 @ 4:18 pm:

    Gee where were those legislative pension experts like Nekritz and Biss when this all happened? My gosh Nekritz is supposedly a lawyer and Biss is a self proclaimed math expert! No one in the legal community that deals in this type of law that I have talked to is surprised by this. In fact several pointed it out before the legislation even passed. Both SERS and SURS referenced this issue and others early on only to be ignored by those intent on theft no matter the complications or consequences. If the state has any sense, which I doubt, they will concur with the stay.

    The only thing more inevitable than this will be Baron Von Carhart’s flip flop on the issue. Remember he is “focused like a laser on education” in Illinois! Seems to me the loss of thousands of university faculty could hurt education! With pension reform in limbo good luck recruiting new faculty!


  21. - Formerly Known As... - Friday, May 2, 14 @ 4:28 pm:

    == These issues were raised during the deliberations and GA didn’t care ==

    == Both SERS and SURS referenced this issue and others early on only to be ignored ==

    Very important context. This problem was foreseen, the alarm was raised, and our esteemed legislators from both parties basically said “We don’t care right now”. Fantastic. So much for caring about the quality of our kids education or public services.


  22. - Norseman - Friday, May 2, 14 @ 4:29 pm:

    Old,

    What would you advise the University types to do? Trust that court will push back the effective date at the end of the process or go ahead and retire now?


  23. - Arthur Andersen - Friday, May 2, 14 @ 4:30 pm:

    Oneman, it’s complicated like most pension stuff. In a sentence, SB1 had a “typo” in the SURS provisions relating to a change in benefit calculations-for career employees, the effect on the monthly pension can be in the $100s per month. Likely minimal impact on your stash over there.


  24. - taking the gamble - Wednesday, May 7, 14 @ 9:08 pm:

    After a co worker told me that if you wanted to possibly receive the retirement with SERS that may allow you to get the 3%COLA I made a visit to SERS. Of course there is no guarantee but there was no announcement that this might be a way to be grandfathered in. After all of my years of work the lack of communication is abhorent. No where did it say you have to go by April 30 2014 but you do in order to possibly avoid the new law of sb1 on 6/1. It has made for a very unplanned ending to my career. SHAME on you SERS!!!


  25. - Norseman - Wednesday, May 7, 14 @ 10:46 pm:

    === After a co worker told me that if you wanted to possibly receive the retirement with SERS that may allow you to get the 3%COLA I made a visit to SERS. Of course there is no guarantee but there was no announcement that this might be a way to be grandfathered in. After all of my years of work the lack of communication is abhorent. No where did it say you have to go by April 30 2014 but you do in order to possibly avoid the new law of sb1 on 6/1. It has made for a very unplanned ending to my career. SHAME on you SERS!!! ===

    Your coworker misinformed you, not SERS. Retiring prior to the effective date will not affect you any differently under SB 1. I retired a few years ago and I will be affected by the diminishment of my AAI under the law.

    The best hope is for the success of the lawsuits filed by the Retired State Employee Association and others to overturn the law.

    Some TV lawyers speculate that the court may rule that you can’t touch folks already out the door, but current employees would be covered. Nobody knows how the court will rule, thus SERS would have been irresponsible if they counseled you on such an amateur legal opinion saying retire now. They have to advise based on the law as it is now and as it will be when SB 1 becomes effective.


Sorry, comments for this post are now closed.


* Economists Agree: Preserving Nuclear Plants is Good for Consumers, Good for Economy
* Jacob’s Story: Delayed Treatment Changes the Future and a Family
* *** UPDATED x1 *** Today's must-watch video
* The Credit Union Difference
* Question of the day
* *** UPDATED x1 - Dan Brady takes himself out *** Uh-oh
* *** UPDATED x1 *** Rauner goes after some Missouri jobs, but no word yet on Indy
* *** UPDATED x2 *** Oswego will discuss Rauner "right to work" proposal tonight
* Krishnamoorthi, Noland make moves toward Duckworth seat
* 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

          
        * Huawei P8 surfaces in TENAA filing revealing specs
        * AT&T launches its GigaPower Internet service in Cupertino
        * Samsung Galaxy BLADE edge is the newest cutting-edge device
        * Updates to Viber and more Windows Phone apps and games
        * ASUS Chromebook Flip: budget netbook in tablet/laptop hybrid style
        * Chromebook gets cheaper, thanks to Haier and Hisense
        * Acer And Haier Launch $149 Chromebooks

        * This Map Shows How to Take an Epic Road Trip Across Europe
        * Amazon’s Dash Button Lets You Re-order Everyday Stuff At The Press Of A Button
        * Amazon Dash Buttons Make It Even Easier To Order Products
        * NASA Set To Livestream Mars Lander Test
        * Charter Communications to Buy Bright House in $10.4 Billion Deal
        * Yahoo App On Android Receives U.S. Refresh
        * Google Maps Pays Homage To Pac-Man

        * 'Athletic' Sale makes progress during simulated game
        * 'Athletic' Sale makes progress during simulated game
        * FanGraphs bearish on White Sox position players
        * Final roster alignment a question of flexibility
        * Noesi recovers from quick stumble; Sox fall
        * Petricka headed to disabled list
        * Rodon's immediate future to be in Minors

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


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

        Archives
        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


        * The Illinois Supreme Court’s Dissent Rate (Part I)..
        * Today’s must-watch video..
        * Illinois joins national childhood fitness program..
        * Brady business interests could derail congressi.....
        * Nick Goodway: Avril Palmer-Baunack progresses b.....
        * Rauner goes after some Missouri jobs, but no wo.....
        * Dan Brady takes himself out of running for Scho.....
        * UK brokers cautious ahead of general election..


        * Madigan announces Illinois anti-sexual assault effort
        * Duckworth: Clinton must testify before Benghazi committee
        * Violence wanes in Chicago, but fear looms over mayor's race
        * Newspaper poll: Mayor Emanuel opens big lead over Garcia
        * Ameren to clean century-old contamination at Belleville site
        * Indonesian prosecutors seek up to 18-year term for US couple
        * Krishnamoorthi says he'll run for Duckworth's US House seat
        * Hermann sues power commissions over coal plant costs
        * Chicago man gets 40 years for trying to hire hit man
        * Ex-Carbondale pastor gets 6 years in prison on theft charges

        * Duckworth: Clinton must testify before Benghazi committee
        * Ex-deputy treasurer to fun for Duckworth's seat
        * Ex-deputy treasurer to run for Duckworth's seat
        * LIHEAP utility assistance fund for Sangamon County is empty
        * LaHood talks transportation issues as he kicks off congressional campaign
        * Duckworth to challenge Kirk for U.S. Senate seat
        * Rauner to push for federal spy agency relocation
        * Cook County, Chicago officials oppose 'right to work' zones
        * Bill pushes for possible municipal bankruptcies in Illinois
        * Stripped of funding, auto theft task forces shutting down

        * Mesirow CEO re-ups for five more years
        * AG Madigan: Put brakes on Peoples Gas' pipe program
        * Pay pops for CME's CEO and chairman
        * BNSF railroad adds new safety rules for crude oil trains
        * Cook County, Chicago officials oppose 'right to work' zones


          * Mayoral candidates square off for final debate
          * Police: 16-year-old dead after Englewood shooting
          * Body pulled from Lake Michigan near Uptown
          * Joliet teens in custody after sex video shows up on Twitter, police say
          * Elite Traveler names Alinea world's best restaurant
          * Police: Robbers blocking road to rob motorists
          * 3 children from Illinois among 6 killed in fiery South Carolina crash
          * Chicago home prices slip for fifth-straight month
          * Past and present Schock staff to face prosecutor in spending probe
          * Bali prosecutors seek 15-year prison term for Heather Mack


          * Indiana Gov. Pence signs religious objections bill
          * How organizations brace for Illinois budget cuts
          * Unions and Garcia push for $15-an-hour minimum wage
          * The Chicago rabbit: The unofficial face of wildlife is right under your nose
          * Obamacare tax rules trip some immigrants
          * Former Rep. Aaron Schock's staff to face tough prosecutor
          * Behind CPS graduation rates, a system of musical chairs
          * Health care tax rules trip up some immigrants
          * More than 21K early votes cast in Chicago runoff election
          * Duckworth makes video announcement for 2016 Senate bid


          * Duckworth: Clinton must testify before Benghazi committee
          * Ex-deputy treasurer to fun for Duckworth's seat
          * Our Opinion: Redpath, Senor, McFarland for Springfield's wards 1, 2 and 4
          * Kathleen Parker: A leap of faith — into thin air
          * LIHEAP utility assistance fund for Sangamon County is empty
          * LaHood talks transportation issues as he kicks off congressional campaign
          * Duckworth to challenge Kirk for U.S. Senate seat
          * Rauner to push for federal spy agency relocation
          * Cook County, Chicago officials oppose 'right to work' zones
          * Our Opinion: Rianne Hawkins for Springfield city clerk; Misty Buscher for city treasurer


          * Mascoutah city councilman: candidate: Dean Smith
          * Tuesday March 31 government meetings
          * Williamson County Sheriff's Office to conduct roadside checks
          * 03-31-15 Penny for Your Thoughts
          * Sunny, with an afternoon high near 67 degrees
          * Rural Smithton woman flown to hospital after being struck by vehicle
          * Woman sentenced to probation in burglary
          * Indianapolis Star calls for law protecting gays
          * Should mayor have recused himself from Election Board hearing?
          * “Better Choices Better Health” workshop offered at Luther Knoll


          * Like a good parent, God loves us unconditionally
          * Krishnamoorthi, Noland considering bids for Congress
          * Dining events: Celebrate Passover at Saranello's
          * Three groups merge to create mega local hospice organization
          * Schaumburg's Asian Kitchen a unique fast-casual option

          * Congressman Skeptical of Iran Plan
          * Local Republicans gather to fundraise and ...
          * Rauner discusses budget in Metro East
          * Two Bowling Green teens arrested on drug c...
          * Davis on Iran talks
          * House to review spending rules in wake of ...
          * Lawmakers Reintroduce Bill to Revise FEMA ...
          * Illinois Senators Propose Changes in Disas...
          * Local Republicans Rally At Annual Lincoln ...
          * Lawmakers reintroduce bill to revise FEMA ...

          * Harry Reid wouldn't 'let the bastards beat......
          * Harry Reid is not looking back...
          * Why Harry Reid’s likely successor Chuck Sc......
          * Leaders to Washington Trip a Success...
          * Harry Reid on Jeb Bush: ‘I hope he loses’...

          * Duckworth: Clinton must testify before Ben......
          * Duckworth to challenge Kirk for Senate seat...
          * With or Without Iran Deal, Obama Faces Fig......
          * Krishnamoorthi Launches Campaign to Replac......

          * Believe It Or Not, N.Y. & L.A. Tougher On Scofflaws Than Chicago
          * “The Driver’s Side” – News From The Motorist’s Perspective
          * Drivers File New Red Light, Speed Camera Class Action Lawsuit
          * The [Tuesday] Papers
          * Reminder: Street Sweeping app can help you avoid tickets!
          * Chicago, Illinois native serves aboard USS Ronald Reagan
          * Weyermuller: Lunch with the Cubs Owner Tom Ricketts
          * Krishnamoorthi To Run For Duckworth's House Seat
          * CTU Unveils New Contract Demands, Rallies With Allies For 'Education Justice' (VIDEO)
          * O'Brien: Barack Obama - America's Andreas Lubitz


          * Illinois Mayors to Celebrate National Service - April 7, 2015 Designated as “Mayors Day of Recognition”
          * Governor Rauner Takes Bill Action
          * Governor Announces Appointments B.R. Lane to lead Illinois Lottery; John Holden to continue leading Dept. of Aging
          * USDA Awards Grant to Illinois' JTED-SNAP Employment & Training Grant - Program helps participants find jobs and promotes business growth
          * Nominating Petitions Available For Illinois Commodity Board Seats




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