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.


* $3 million in one pop from Rauner
* Reader comments closed for the weekend
* SUBSCRIBERS ONLY - State House fundraising report
* *** UPDATED x1 *** Has the haymaker punch arrived?
* SUBSCRIBERS ONLY - State Senate fundraising report
* Third straight poll shows Rauner leading Quinn
* Last call for tickets!
* Vast Majority of Illinois Voters Support Renewable Energy, Energy Efficiency
* Sun-Times reporters want you to sign their petition
* Same song, different century
* Question of the day
* Quinn finally wins a newspaper endorsement!
* SUBSCRIBERS ONLY - Today's cable TV buy report
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs, TV ads
* Report: Another tie between Rauner and CS-T chairman
* Bost's "anger," Cook's ratings, Foster's ad
* $580 MILLION EXELON RATE HIKE?? That’s the price tag for their nuke bailout…EVERY YEAR!
* *** UPDATED x1 *** Rauner pumping dollars
* Rauner pushing IDOT back into the news stream
* Gov. Quinn runs new TV ad featuring FLOTUS
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* No, your eyes didn't deceive you
* 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

          
        * Galaxy Lollipop plans, Apple sapphire future, Amazon flops & more – Pocketnow Daily
        * Sidecar Tests A New “Commute” Service, With Discounts When You Pay For A Week Of Morning Rides
        * Sony 12-inch tablet may be in the works for early 2015 launch
        * Moto X (2014) Review
        * How to use Continuity in iOS 8 and Yosemite (Video)
        * Monster Strike arrives for North American Android users
        * Etsy releases Credit Card Reader for budding entrepreneurs

        * AT&T Offers Kindle Fire HDX Tablet For $49.99 With Fire Phone Purchase
        * NFC Chip Found In New iPads Could Be Used As Secure Element
        * Samsung NX1 Will Be Used To Film A Joseph Gordon-Levitt Short Film
        * 12-inch Sony Xperia Tablet Rumored For Q1 2015
        * Nest Adds Third-Party Home Automation Product Support
        * League Of Legends Pulls Close To $1 Billion In Revenue For 2014
        * Elon Musk Expresses Concern Over Artificial Intelligence

        * Konerko caps stellar career with Clemente Award
        * Konerko caps stellar career with Clemente Award
        * World Series Game 3: Notes and discussion
        * Rollins, Konerko named co-winners of Clemente Award
        * Alexei Ramirez and Adam Eaton Gold Glove finalists, but maybe not f...
        * Longtime scout Provas passes away after battle with cancer
        * Eaton, Ramirez named AL Gold Glove finalists


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

        Archives
        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


        * IL Gov. Quinn Announces WIU-QC Expansion - KWQC 6..
        * CREATE partners celebrate Englewood Flyover's o.....
        * EPA grants land locally..
        * From the Capitol: Vote to shake up Springfield..
        * Candidates for governor focus on women voters w.....


        * US judge names monitor of IDOT hiring
        * Radio host convicted of alleged $10 million fraud
        * Illinois gov's race focuses on women voters
        * Judge rules against Ameren in power line dispute
        * Feminist Steinem endorses Illinois governor
        * Madigan, Rauner spend big on Illinois House races
        * Cockroach visits Chicago's City Council chambers
        * Chicago police to check bags on transit system
        * Toddler taken from family found in Illinois
        * Man, 2-year-old boy killed by truck in Bloomington

        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Officials rethink early vote-counting after Madigan ruling
        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes

        * Regulators close National Republic Bank of Chicago
        * Rauner, the reporter, the Sun-Times and 'appearance of impropriety'
        * Chicago police to check bags at CTA stations
        * Shire CEO Ornskov 'dumbfounded' by collapse of AbbVie deal
        * Tests show child in Chicago does not have Ebola


        * Editorial: Bruce Rauner for governor
        * Back to the past with mayor’s move
        * Illinois needs better way to deal with terminally ill inmates
        * At panel on school closings, board acknowledges more planning needed
        * Marina City residents reminded to watch their step during Wallenda’s walk
        * Republican senators question Quinn’s IDOT scandal response
        * Child who became ill on plane tests negative for Ebola
        * Tollway might permanently lower cost to open I-Pass account
        * Killer gets 27 years for throwing woman out 3rd-floor window
        * CPS wants to delay new standardized test, even though state already has said 'no'


        * FBI searches Chinatown restaurants, at least 3 owned by famed chef Tony Hu
        * Former radio host convicted of mortgage fraud
        * Des Plaines man who tried to hire killers to burn wife, friends alive gets 17 years
        * $5 million bond in vandalism of Lombard synagogue
        * Man charged with DUI in 2013 crash that killed woman, 78, in Aurora
        * Craft brewery on tap for Oak Park?
        * Police to screen CTA train passengers for explosives


        * Listen to State Week - October 24, 2014
        * 2014 Election Coverage: Citizens, here's your homework!
        * 2 dead, including gunman, in high school shooting
        * Prosecutors want more of indicted police commander’s 'bad acts' in court
        * Prosecutors want more of indicted police commander's 'bad acts' in court
        * Bedrock 66: Charlie Parr Plays Springfield Friday
        * Oberweis Would Back Federal Same Sex Marriage Law
        * Wild Bison Return To IL
        * Scary Story: The Diviner by Susan Vondrak
        * Artist Profile: Local Troubadour Tom Irwin


        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Our Opinion: Bell, Manar, Davidsmeyer endorsed in state legislative races
        * Craig Burns: Honesty, integrity in great supply at CWLP
        * E.J. Dionne: Ebola, pandering and courage
        * Esther Cepeda: Benefits of closing the word gap
        * Officials rethink early vote-counting after Madigan ruling
        * Our Opinion: Frerichs has the expertise to be Illinois treasurer
        * Robert Kaestner: Good education policy is good health policy
        * Eugene Robinson: Warren makes the case for a presidential run


        * High school football scoreboard, Oct. 24, 2014
        * LIVE! Pink Night
        * Interfaith Council to host dinner
        * Webb sentenced to 14 years in fatal DUI
        * SportsTalk 10-24-14
        * SIC to host Heritage Festival
        * Fundraiser benefits Clothes for Kids initiative
        * Oakdale cemetery will have Underground Railroad tour Sunday
        * O'Toole to start Saturday
        * Film features past, present and future of Southern Illinois food system


        * Crystal Lake South wins boys soccer regional title
        * Konerko wins Clemente Award for work with foster kids
        * Facebook post gets heat from Elgin police
        * Girls tennis: Kawai, Linden continue in backdraw
        * DuPage forest preserve candidates differ over taxes

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Republican Senate candidate Oberweis favor......
        * Republican Senate candidate Oberweis favor......
        * Republican Senate candidate Oberweis favor......
        * Republican Senate candidate Oberweis favor......
        * Republican Senate candidate Oberweis favor......

        * U.S. Senator Mark Kirk to talk with Triton......

        * Bag Man In Redflex Bribery Scandal Will Plead Guilty
        * SportsMonday: Brandon Marshall Is Unacceptable
        * The Week In Chicago Rock
        * Durbin, Oberweis To Debate Tonight
        * First-Time Candidate Seeks GOP Incumbent's Defeat In 20th State House District
        * Mo Khan, Democratic Candidate For 20th District State Representative
        * The College Football Report: Area Police Top Poll
        * The Beachwood Radio Sports Hour #23: It's All Cutler's Fault
        * Durbin, Oberweis debate Tea Party, immigration, veterans, and gay marriage
        * Illinois judicial candidate encounters signature snafu when attempting to vote


        * Rauner rips Quinn on IDOT patronage oversight
        * Governor Quinn Announces Winners of 2014 Illinois Export Awards - State’s Trade Programs Help Companies Increase Global Sales
        * New Ad: Labor leader backs Rauner
        * Jewish Newspapers Endorse Rauner for Governor
        * Statement from the Illinois Department of Public Health and Chicago Ebola Resource Network




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