It’s just a bill
Wednesday, Nov 13, 2024 - Posted by Isabel Miller
* Click here for some background if you need it. Rep. Carol Ammons introduced HB5907 yesterday…
Creates the Adequate and Equitable Public University Funding Act. Provides that all general operating expenses for public universities shall be distributed by the Board of Higher Education through a funding formula for eligible public institutions and shall be administered by the Board. Defines “eligible public institution”. Sets forth provisions concerning the adequacy targets and resource profiles of eligible public institutions. Provides for the distribution of State appropriations and the calculation of the base funding minimum for each eligible public institution. Provides that the Board shall oversee an accountability and transparency framework for assessing the distribution and use of all funds appropriated by the funding formula and evaluating the funds’ effects on institutional outcomes pertaining to student affordability, enrollment, persistence, and outcome metrics. Provides for reporting and the establishment of an Accountability and Transparency Committee. Provides that the Board shall establish a Funding Formula Review Panel tasked with studying and reviewing topics pertaining to the implementation and impact of the funding formula. Contains provisions concerning the Board’s annual budget request and the collection of data. Amends the Board of Higher Education Act. Removes certain provisions concerning budget proposals. Effective immediately.
* Statehouse reporter Brenden Moore…
* We Are One Illinois…
Today, state legislators and public service workers unveiled the Fair Retirement and Recruitment Act (HB5909/SB3988), legislation sponsored by State Rep. Stephanie Kifowit (D-Oswego) and State Sen. Robert Martwick (D-Chicago) that will make significant progress in fixing the broken Tier 2 pension system. Thousands of public service workers are expected to rally in Springfield at noon today in support of the legislation as they demand lawmakers take action.
The current broken system undercuts retirement security for public employees and makes it harder for schools, universities, cities, counties, and the state of Illinois to attract and retain needed workers.
The four key provisions of the Fair Retirement and Recruitment Act are designed to solve the current system’s major problems:
Problem: Compared to Tier 1 participants, Tier 2 participants pay the same amount toward their pension from every check, yet must work longer and retire later.
Solution: The Fair Retirement and Recruitment Act aligns the Tier 2 retirement age with Tier 1.
Problem: Tier 2 participants now receive a diminished cost-of-living adjustment (COLA) that fails to keep pace with inflation.
Solution: The Fair Retirement and Recruitment Act implements an across-the-board 3% simple-interest COLA for all Tier 2 participants.
Problem: Tier 2 participants’ pension benefit amount is reduced by a lesser final-average-salary calculation.
Solution: The Fair Retirement and Recruitment Act brings the final average salary calculation back in line with Tier 1.
Problem: Tier 2 participants are subject to a pensionable salary cap that runs afoul of federal law (the so-called “Safe Harbor” problem).
Solution: The Fair Retirement and Recruitment Act adjusts the pension salary cap to match the Social Security wage base.
In addition to the key elements above, the bill makes a number of minor but meaningful changes to the pension code to address issues specific to particular job titles or pension concerns.
* NBC Chicago…
A suburban mom is hoping that lawmakers will pass a bill during their veto session in Springfield to allow for aid-in-dying medication for terminally ill patients.
Suzy Flack’s son died after a battle with cancer two years ago, an experience that taught her about the importance of allowing physicians to render medical aid for those who are dying with a terminal illness. […]
She’s become a fierce advocate for end-of-life options, and is hoping the Illinois General Assembly passes the End-of-Life Options for Terminally Ill Patients Act. […]
“It is not a decision that anyone takes lightly,” House Majority Leader Robyn Gabel said. “Many people feel at peace just to get the medicine.”
Under provisions of the law, medication can only be obtained by individuals 18 years of age and older, who are diagnosed as terminally ill with less than six months to live. The patient must be mentally capable of making decisions, and two physicians must sign off on the process.
Patients are allowed to change their minds, and must be informed about all end-of-life care options. Finally, doctors are not required to participate in the administration of the medication.
* Rep. Curtis Tarver introduced HB5906 yesterday…
Amends the School Finance Authority Act of the School Code. Reinstates the School Finance Authority and reverts any powers, duties, rights, or property granted to the Chicago Board of Education upon the abolition of the original Authority established by the Article back to the Authority. Provides that any powers, duties, rights, or property granted to the Board before the abolition of the original Authority and after the reinstatement of the Authority under the amendatory Act shall remain vested in the Board. Updates the expiration dates of terms of the Chairman, the 2 Directors of the Authority appointed by the Governor, and the 2 Directors of the Authority appointed by the Mayor. Requires the Board to adopt and submit for approval a financial plan on or before March 1, 2026 and adopt and submit for approval a budget on or before February 1, 2026 with respect to the remaining portion of the fiscal year ending in 2026. Requires the Board, beginning in fiscal year 2028 and every second year thereafter, to adopt a financial plan covering a period of 2 fiscal years. Requires the Board to submit a staffing plan for the fiscal year ending in 2026 to the Authority within 90 days after the effective date of the amendatory Act. Makes other changes.
* Tribune…
Other unresolved issues include gun safety measures that Democrats haven’t been able to bring over the finish line.
Legislation that’s become known in Springfield as “Karina’s Bill” would require law enforcement to remove firearms from people who have orders of protection against them, clarifying when and how authorities can confiscate such weapons. As it stands, guns aren’t always taken from people in those situations even if the owner’s firearm identification card is revoked. […]
Another holdover proposal would require gun owners with valid FOID cards to report their guns lost or stolen within 48 hours, instead of 72 hours, upon discovering their guns are missing. Another measure would prohibit storing or leaving a firearm outside an owner’s immediate possession or control unless it’s unloaded and secured in a lock box, making it inaccessible to a minor or anyone else who is barred from using guns.
“We know that the bills that we pass in Springfield have real life and death consequences. It is clear that we must address child access to firearms and safe storage,” Rep. Maura Hirschauer, a Democrat from Batavia, said at a news conference on Chicago’s West Side in October. “We know that gun owners can help make their homes and communities safe by storing their guns securely. A comprehensive statewide safe storage policy will have an impact on this.”
- ModerateGOP - Wednesday, Nov 13, 24 @ 9:05 am:
What is the price tag on Rep. Kifowitt’s pension bill? Seems like this will have a huge financial impact on local units of government. As if property taxes aren’t high enough already.
- Teve DeMotte - Wednesday, Nov 13, 24 @ 9:22 am:
What are the costs associated with the Tier 2 reforms? The reason, I thought, for the Tier 2 pension originally was pension cost containment? Again, the State of Illinois has a $3.2B deficit, that is expected to grow to over $5B in 2028. CPS and City of Chicago also have or will have deficits over $1B. Where is the money coming from to address public employee union concerns on Tier 2?
- Perrid - Wednesday, Nov 13, 24 @ 9:27 am:
I think just changing the COLA to the lesser of CPI or 3% (rather than the lesser of HALF CPI or 3%) makes more sense/is more fair than just a straight 3% every year. And the safe harbor/pensionable salary stuff seems like it might just be needed to be compliant. The other two problems seem more … unlikely/not a good idea.
But this will come with a bill, and a few weeks ago the governor said that the state was looking at a $3 billion shortfall in 2026 already. Not an easy lift.
- Beep booop - Wednesday, Nov 13, 24 @ 9:28 am:
Genuinely asking here because pension stuff is difficult (I tried Google btw): How is it that we don’t for certain if Tier 2 passes the Safe Harbor test? Why doesn’t social security administration or some other federal agency give us a yes or no?
- Donnie Elgin - Wednesday, Nov 13, 24 @ 9:34 am:
“We know that gun owners can help make their homes and communities safe by storing their guns securely. A comprehensive statewide safe storage policy will have an impact on this.”
This is a virtue-signaling bill if there ever was one. Regulation and enforcement of this would be impossible, so it has zero utility. If you thought the SA gun registration was lightly adhered to, if passed this one would be completely ignored by legal gun owners. Millions of Illinois residents have and will continue to safely keep and store weapons in their homes with or without this legislation.
- RNUG - Wednesday, Nov 13, 24 @ 9:49 am:
Average inflation from 1924 to 2024 has been 3.3% compounded per government figures.
3% non-compounded will still see retirees losing purchasing power over the long run.
- Demoralized - Wednesday, Nov 13, 24 @ 9:57 am:
==I thought, for the Tier 2 pension originally was pension cost containment==
It was. But they way they went about it violated federal law. So now they’re trying to fix that. Yes, it will be expensive.
- Rich Miller - Wednesday, Nov 13, 24 @ 10:05 am:
===violated federal law===
It’s not yet clear that it did for everyone.
- Rich Miller - Wednesday, Nov 13, 24 @ 10:07 am:
===Why doesn’t social security administration or some other federal agency give us a yes or no?===
I think the pension systems are looking at it.
- Demoralized - Wednesday, Nov 13, 24 @ 10:19 am:
==by legal gun owners==
That always irritates me when I see this every time a law is discussed. If you aren’t following the law then you aren’t “legal.”
- Tim - Wednesday, Nov 13, 24 @ 10:20 am:
Multi billion dollar deficits as far as the eye can see and yet bills being introduced in veto session all call for more spending. And people wonder why this state, though getting slightly more financially stable, is pretty close to flat broke. With Mr Martwick on the pension bill I bet this will be a big number.
- Perrid - Wednesday, Nov 13, 24 @ 10:36 am:
Beep Boop, a post here months or maybe a year ago had some actuaries look at it, and the best they could say that was that it probably violated the law because apparently the feds calculate it person by person? That was my impression/memory, anyway.
- Bigtwich - Wednesday, Nov 13, 24 @ 10:37 am:
Tier 2 may not have violated federal law for everyone but for employers pensions can help help attract and retain talent. From personal observation I believe Tier 2 has failed to achieve that objective across the board.
- Pothole - Wednesday, Nov 13, 24 @ 10:49 am:
COGFA has two reports on the their website about Safe Harbor for state systems and local police and fire. The state systems have an easy fix (pensionable salary cap tied to SS wage base). Local police and fire don’t have a current problem. If you wanted to be extra careful you could also tie the pensionable salary cap to the SS wage base for police and fire for any potential long-term problems there.
These proposed changes go well beyond a Safe Harbor fix.
- RNUG - Wednesday, Nov 13, 24 @ 11:03 am:
== It’s not yet clear that it did for everyone. ==
Need to divide the ’state’ employees into 2 or 3 groups to be able to intelligently address this.
Most actual State employees, ie members of SERS, pay into both the State retirement system *and* Social Security. For the most part, those people on Tier 2 will be unlikely to run afoul of the Safe Harbor rules.
Some State employees, primarily Law Enforcement but also agency directors, legislators, etc. have different systems and do not contribute to SS but also have different conditions compared to SERS. It’s possible Tuer 2 for them will run into some issues, most likely the salary cap one.
The group most likely to be affected are the educators, members of TRS and SURS. For the most part they do not participate in SS and are the groups most likely to full under Safe Harbor issues. As the GA found when they drafted Tier 2, there is not a one size fits all solution. Tying the salary cap to the Federal cap will. address part of it. Playing with the AAI will be needed, but that is the more expensive part. I get the desire to peg a fixed amount because that is much easier to budget to. But pegging the AAI to the annual SS increase, while potentially more expensive, might avoid the need for future tweaks. All we can do is guess at that.
I’m going to add a disclaimer that I haven’t read the 600? page bill this morning, so some of what I just covered may be in there.
- Pothole - Wednesday, Nov 13, 24 @ 11:27 am:
To RNUG’s point, the Safe Harbor calculation is a proxy for SS equivalency. It’s a simplified calculation.
You can check out a much more complicated examination - https://www.ssa.gov/policy/docs/ssb/v82n3/v82n3p1.html.
Safe Harbor is not the argument made by the unions in hearings. They talk about morality, recruitment, and retention.
- Dupage - Wednesday, Nov 13, 24 @ 11:42 am:
===read the 600? page bill===
Make it simple, just change back to Tier 1. The Tier2 employees have been paying in the same amount as the Tier 1 employees, so it is only fair they get the same amount when they retire. Also it would help hire and retain good teachers and other public employees.
- Donnie Elgin - Wednesday, Nov 13, 24 @ 11:49 am:
“Make it simple, just change back to Tier 1″
then there is this …
Under Illinois pension law, each pension system is required to reach 90 percent funding by 2045. For this to happen, taxpayers will have to pay greater and greater contribution costs going forward to pay for both the systems’ normal cost and its current unfunded liabilities.
- Blazzzer - Wednesday, Nov 13, 24 @ 12:01 pm:
Intriguing move on behalf of the unions to hold a rally demanding Tier 1 benefits when the Democratic Party just lost a national election due in part to people being worried about being able to put food on the table
- ModerateGOP - Wednesday, Nov 13, 24 @ 12:13 pm:
When was the last time pension contributions paid by employees was raised? Is that on the table?
- RNUG - Wednesday, Nov 13, 24 @ 12:29 pm:
== Intriguing move on behalf of the unions ==
Illinois is one of the relatively few States where the Democrats still have pretty much unlimited power (if they can hold their bloc together). And while that is unlikely to change any time soon, it’s better to strike while there is still emotional backlash against the GOP victory. Plus the State is already facing the need to likely raise taxes, so might as well try to get on the gravy train before it leaves the station. Looking ahead the next 2 years, now is the best time to try … plus it gives the voters 2 years to forget about it.
- RNUG - Wednesday, Nov 13, 24 @ 12:36 pm:
== pension contributions paid by employees was raised? Is that on the table? ==
Since it’s been ruled the pension benefits can not be reduced (and implied it is a contract), any increase in contributions would have to be accompanied with an increase in benefits. So yes, you could give an opt in option to Tier 2 to pay more in return for Tier 1 benefits; that should be legal. But it’s not necessarily fair since the original Tier 1 people would still be paying less. And I could see it possibly violating the US Constitutions Equal Treatment claus (14th) which explicitly applies to States.
- Child advocate - Wednesday, Nov 13, 24 @ 12:46 pm:
=== This is a virtue-signaling bill if there ever was one. Regulation and enforcement of this would be impossible, so it has zero utility. If you thought the SA gun registration was lightly adhered to, if passed this one would be completely ignored by legal gun owners. Millions of Illinois residents have and will continue to safely keep and store weapons in their homes with or without this legislation.==
Safe storage laws are one of the few legislative interventions for firearms that have data supporting their effectiveness in lowering firearm injuries
- ChiTeacher - Tier 2 - Wednesday, Nov 13, 24 @ 12:55 pm:
Seems like a pretty fair compromise imo and I’m a tier 2 member. Assuming it maths out you get the best of all worlds.
Tier 2 still pays a little more into their pension (in terms of value back) to keep it sustainable, but receive a benefit that actually reflects the value of their work.
Pension fix isn’t a magic bullet it’ll take time. As tier 1 retirees slowly pass and tier 2 becomes the majority funding should rise.
- Blazzzer - Wednesday, Nov 13, 24 @ 1:09 pm:
@RNUG $3 billion shortfall plus $2 billion between Chicago and transit agencies. Then $2 billion for safe harbor fix alone. Thats $7 billion in requests. Not factoring in all of the other changes to Tier 2 and all of the other urgent budget requests. I’m guessing voters would remember a tax hike that significant in 2 years.
- Rich Miller - Wednesday, Nov 13, 24 @ 1:13 pm:
===Thats $7 billion in requests===
But not all up front. C’mon.
- Donnie Elgin - Wednesday, Nov 13, 24 @ 1:14 pm:
=Safe storage laws are one of the few legislative interventions+
Safe storage advocacy is key and suicide prevention is an important issue. Every gun range has staff/instructors that emphasize safe handling and storage. There are many local police depts and a few national groups that offer free trigger locks. Voluntary acceptance is the only way to go - unless you advocate for the ISP to start doing spot inspections in the homes of FOID card holders.
- Liz - Wednesday, Nov 13, 24 @ 1:15 pm:
Ugh. No pension bill should be under discussion without a projection of costs. After all, the current contribution schedule is based on the projection of Tier 2 benefits based on current law, so any change will boost costs, and this version will have very dramatic effect, especially compared to the proposals that say, simply, “make a lump sum payment of however much is required to meet Safe Harbor for any affected retiree.”
- Rich Miller - Wednesday, Nov 13, 24 @ 1:19 pm:
=== No pension bill should be under discussion without a projection of costs===
Exactly right
- Dupage - Wednesday, Nov 13, 24 @ 2:45 pm:
We should not forget the shortfall of the state pension funds was caused by the previous state legislators and governors “borrowing” from the 5 state pension systems. They did this by not paying in their matching funds when they were due. Instead, they just gave the pension systems an IOU. The state “borrowed” that money, the state should pay it back, not the Tier 2 employees.
- JS Mill - Wednesday, Nov 13, 24 @ 5:51 pm:
First, Tier 2 isn’t broken. That doesn’t mean it is great or even good, but it is not broken. It is working exactly as designed. It is rapidly reducing the anual cost of the state pensions. Safe harbor was a known issue as early as 2012, one year after it was enacted I listened to Daniel Biss talk about it. He knew then adjustments would be needed.
The adjustments that get the system back I. The hood graces of safe harbor are, as our most knowledgeable pension poster RNUG pointed out, different for different groups. Anyone that does not get full SSI will need more. Adjust the pensionable income cap to meet SSI and reduce full retirement age to 62 and you get most of the way there as I understand it. Other tweaks will be needed but they are relatively minor.
While unfortunate, moving everyone to Tier 1 is not a fiscally viable option.
I don’t think the pension has as much to do with recruiting teachers as other issues. That may be very different than other fields though. Most young people look more at salary and working conditions and O heard that at ISU today at their job fair.
- anon2 - Wednesday, Nov 13, 24 @ 7:35 pm:
How could tier 2 not deter at least some young adults from going into education, given that they have to work 12 years long than their tier 1 colleagues?
- Tim - Thursday, Nov 14, 24 @ 5:57 am:
Don’t those of us that have social security have to work to 67 to get a max payout? Why should teachers be any different? It’s not a physical job that requires younger people to do it.
- JS Mill - Thursday, Nov 14, 24 @ 10:04 am:
=It’s not a physical job that requires younger people to do it.=
Have you ever actually been in a school? Serious question. Also, you need to be mentally sharp to be an educator. Kinda important.