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* I’m pretty darned certain that we’re gonna see more and more public pressure to pass a state law which removes pension benefits from the local collective bargaining processes. A major reason why is that Chicago picks up most of its teachers’ pension payments. The CTU is so far refusing to give any ground on that topic, so something is gonna have to eventually give…
Eliminating the district's practice of picking up the bulk of teacher pension contributions is "strike-worthy," Lewis says.
— Juan Perez Jr. (@PerezJr) August 7, 2015
Karen: Seven percent is huge. It's a huge difference. You say 'pick up' like it's a favor. This is coming out of our paychecks.
— Catalyst Chicago Mag (@CatalystChicago) August 7, 2015
* But keep this in mind…
If there is a #CTU strike and that is still a big if, it can't happen til winter, mediation first #RahmChicago pic.twitter.com/6wiNvSIDiw
— Mary Ann Ahern (@MaryAnnAhernNBC) August 7, 2015
The problem becomes if the governor leverages the pension bargaining issue to get even more of his collective bargaining “reform” proposals into law. There’s only so much that the Democrats will accept.
posted by Rich Miller
Friday, Aug 7, 15 @ 12:28 pm
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Great. Just raise salaries by an equivalent percentage. Better deal for Tier II teachers or those not staying long enough for a pension.
Comment by GR Friday, Aug 7, 15 @ 12:33 pm
It’s going to be a bargaining issue whether pension negotiations are allowed or not. CTU is going to ask for raise to compensate the loss of the CPS contribution.
Comment by Norseman Friday, Aug 7, 15 @ 12:37 pm
Reducing pensions is unconstitutional, even if pensions are excluded from CB. So what is really achieved, other than making a big part of the Democratic base angry?
Comment by Eugene Friday, Aug 7, 15 @ 12:37 pm
I understand the principle they’d be fighting for, but I think CTU is playing a risky game if they strike over making their own pension payment. Yes, it’s a pay cut, but I don’t think the public will be terribly sympathetic on this one.
Comment by 47th Ward Friday, Aug 7, 15 @ 12:41 pm
I don’t get why this is a big deal. Years ago the union agreed to forego pay increases and agreed for the city to pick up their pension contribution. Union members pay checks were bigger so it felt like a raise to them. It was negotiated. You don’t want it anymore, fine negotiate.
In actuality, Rahm wants to pay teachers less, but thinks not picking up the contributions is an easier way to achieve his goal. Fine. Say it and don’t muddy up the issue.
(Obviously CPS has a big budget issue, and maybe pay cuts are needed. Then say that and own it.)
Comment by What's missing? Friday, Aug 7, 15 @ 12:44 pm
Can CTU strike over passage of a state law?
Comment by Wordslinger Friday, Aug 7, 15 @ 12:44 pm
I think they’d have more luck phasing in the transfer back to the teachers. 7% is too big all at once. That might be palatable, or at least not strike-worthy.
Comment by PublicServant Friday, Aug 7, 15 @ 12:51 pm
Teachers should be negotiating this rather than saying no way as offset in salary does not have to be as big as the 7% pension pick up is now. For example if the teacher has to contribute the full 9% it is contributed pre-tax (I always liked that when I was with SURS since it really helped to lower my taxable income for the year). That means if the teachers pay more of their own pension cost, they actually have less taxable income and lower federal taxes. To offset the 7% increase, I would anticipate the loss in salary could be offset with a 3-4% pay raise in the first year, then there could be lower raises for the rest of the contract.
Comment by illinifan Friday, Aug 7, 15 @ 12:51 pm
The public will suddenly care if/when they strike and those disillusioned enough with this game playing seek other employment. Enough of this gamesmanship as if teachers (anywhere) are just low level peons, unworthy of a decent paycheck. I’d like to see a massive, statewide serious shortage if teachers have so little value. Let people home school. So many say they can do it. Then do it!
Education is the profession that all other professions come from.
Comment by Anonymous Friday, Aug 7, 15 @ 12:53 pm
Word, I imagine the official reason for the strike would be CPS’ failure to provide a salary increase to cover the loss of the CPS pick-up.
Comment by Norseman Friday, Aug 7, 15 @ 12:59 pm
===Education is the profession that all other professions come from.===
I remember at last year’s U of I commencement, after the College of Engineering Dean got up and said that Engineering was the greatest college in the university, the following dean of the College of Education said, “Might I remind my distinguished colleague that without teachers, there would be no engineers.” She had a point…just sayin.
Comment by PublicServant Friday, Aug 7, 15 @ 1:00 pm
Gotta agree with my neighbor 47th Ward. Is this a fight the CTU really wants to wage in the court of public opinion (i.e. taxpayers?)
Also is Karen Lewis calling the shots or Jesse Sharkey?
Comment by Ravenswood Right Winger Friday, Aug 7, 15 @ 1:01 pm
Not just a Chicago thing. Many school districts in Illinois “pick up” the employee pension contribution, but it’s negotiated as part of the full compensation package. When the district stops covering it, they usually offer a salary increase to make up the difference. Getting rid of this alone is a 7% pay cut, plain and simple.
Comment by Anonymiss Friday, Aug 7, 15 @ 1:10 pm
=* I’m pretty darned certain that we’re gonna see more and more public pressure to pass a state law which removes pension benefits from the local collective bargaining processes.=
I think that is an accurate statement. I tend to think the cause is based on constant scapegoating of public employees by politicians that are unwilling to accept responsibility and know how to create a new “truth” in the minds of the non-public employee populace.
Comment by JS Mill Friday, Aug 7, 15 @ 1:11 pm
I see a lawsuit brewing. Did Chicago pay its pension pickup when it was given the pension holidays?
If CTF is a qualified fund according to the IRS then any payment is not subject to tax so a pension pickup wouldn’t matter. I can’t imagine any of the pension funds not being a qualified fund. A qualified fund means you pay tax on the payout not the contribution.
I suspect we will find out the district gave the pension pickup and skipped the payment into the fund.
Comment by Liberty Friday, Aug 7, 15 @ 1:11 pm
They should negotiate a graduated increase. Seven percent is small compared to many other public employee pension systems’ employee contributions for non-FICA taxed employees. The rate for SERS, for example, is 8% for non-FICA employees.
Comment by A Jack Friday, Aug 7, 15 @ 1:11 pm
I’m being kind of snarky, but aren’t folks like Rauner usually saying big government should keep its hands out of these kind of things? Let the economic forces work themselves out and prevail. CPU is the one that negotiated picking up a good part of the teacher’s contributions. So next contract, CPU can try to change that by offering something else in lieu of picking up the teachers’ share of pension contributions. In a sense CPC and the rest of the school districts already have local control to negotiate what is best for the school district. Or is Rauner really trying to do away with or weaken teacher unions and all public unions by having the State dictate what can and can’t be negotiated? The Gov. Walker playbook. I guess even conservative folks like Rauner and Walker like to pick and choose when lassez faire government is appropriate.
Comment by Joe M Friday, Aug 7, 15 @ 1:21 pm
Whose pensions are those “contributions” going to anyway?
Strikeworthy Karen?? I think you’re misreading the tea leaves of where an exhausted public would come down on this.
Comment by A guy Friday, Aug 7, 15 @ 1:23 pm
Liberty, no. Just No.
Comment by Arthur Andersen Friday, Aug 7, 15 @ 1:25 pm
==Strikeworthy Karen??==
If I were a negotiator (which I’m not) or in a union (which I’m not) I might consider it strike worthy if somebody was trying to cut my take home pay 7%. I can understand the ludicrousness of asking for a pay increase. But I also don’t think it’s ludicrous to want to keep the status quo. Everyone has a family to take care of.
Comment by Demoralized Friday, Aug 7, 15 @ 1:29 pm
A guy - in some cases those contributions are going to help cover big retirement packages that were given to CPS administrators who got repeated big salary increases during their last years of service directly designed to increase their pensions. This has been going on for years in CPS. So its not all so simple as people might think.
Comment by Rod Friday, Aug 7, 15 @ 1:30 pm
==I’d like to see a massive, statewide serious shortage if teachers have so little value.==
The universities have been churning out many more elementary teachers than the school systems can reasonably absorb. The true shortage at the lower levels across the USA remains in special ed. But since all teachers are locked into the same contract, we can’t offer special ed teachers the money their market value demands to fill the shortage.
Teacher shortage? It sure doesn’t look like it.
Comment by nixit71 Friday, Aug 7, 15 @ 1:37 pm
@ Anonymiss 1:10pm nailed it. Some unions want the district to pay their pension portion so the salaries look lower. There might be a slight tax advantage if the district pays it all too.
Comment by AJ_yooper Friday, Aug 7, 15 @ 1:41 pm
CPS actually proposed picking up the 7% in exchange for a pay freeze in a one year deal. CTU agreed. Then yesterday CPS broke off negotiations and said a big part of the reason was the pension pick up, which was a CPS proposal in the first place. It’ll cost teachers between $4k and $7k a year. My wife pays close to that out of her own pocket for supplies for her room and her students. There’s a lot these teachers do free of charge and that’s where they should start recouping any lost wages, but they won’t.
Comment by Cathartt Representative Friday, Aug 7, 15 @ 1:59 pm
According to the State Board of Education, per pupil operational spending in CPS is $13,433 (Sept 2014). Give any kid will to leave the CPS a 6k voucher. The CPS would save over 7k per student. The CPS could then get kid of the lowest preforming teachers. Smaller, leaner, and more efficient Board of Ed.
Comment by Rollo Tamasi Friday, Aug 7, 15 @ 2:16 pm
I know a dollar is a dollar but I think employees should contribute to their pension. They should have some skin in the game.
Pay something, phase it in, do something.
Politically, the current situation makes it look like Chicago teachers are getting a free ride. Note I said “looks like.” Perception counts.
Comment by Sir Reel Friday, Aug 7, 15 @ 2:31 pm
Does anyone know if the pension pickup is counted as part of the employee’s salary? I thought it wasn’t and resulted in lower pension payout as a result.
Comment by RD55 Friday, Aug 7, 15 @ 2:49 pm
=The true shortage at the lower levels across the USA remains in special ed=
Try upper level math and science.
BTW- you may want to survey Illinois universities and ask them about enrollment in education programs.
While there may have been a huge surplus in the past, as the years go on without a job, those graduates had to loo elsewhere for employment and have been lost. From the hiring standpoint, it is hard to hire someone without experience that graduated several years ago vs a nwere graduate.
Comment by JS Mill Friday, Aug 7, 15 @ 2:51 pm
Nice to hear Lewis is hale and hearty, and back to her understated rhetoric.
Comment by walker Friday, Aug 7, 15 @ 2:53 pm
CTU should keep quiet and negotiate the issue. I think these pickups in lieu of a raise is a bad ideal. It is too easy-to-use against union at a future date as is being done here.
Comment by RD55 Friday, Aug 7, 15 @ 2:54 pm
@JS Mill - Good point. If a glut of ed majors can’t find jobs right away, they pursue other options and may not go back to the teaching profession. And if the words spreads there is an oversupply and demand is low, that might lead to a shortage in Education majors in the short-term future.
I don’t doubt there is aren’t as many STEM candidates. Don’t you think a separate, higher salary schedule is in order to attract more to the field? I have no issue scaling the teacher salary structure based on skill set and supply/demand. Pay hike for the science/algebra/special ed teachers and a little bit less for everyone else would make sense. My guess is the union would think otherwise.
Comment by nixit71 Friday, Aug 7, 15 @ 3:16 pm
Liberty @1:11 pm makes a good point.
== Did Chicago pay its pension pickup when it was given the pension holidays? ==
After years and years of pension holidays CPS is finally required to make yearly pension payments.
So now CPS wants out of their agreement to pick up the teachers’ pension payment. Nice try!
Comment by Enviro Friday, Aug 7, 15 @ 3:38 pm
I fully understand teachers not wanting a pay cut, however IMO all teachers statewide should pay for there own pension. Why? 1. Retirement income isn’t taxed here in Il for now. Teachers paid little or nothing into the pension fund and don’t have to pay income tax on it in retirement. Doesn’t look good to non-unionized/pension receiving citizens. which goes to my second point. 2. PERCEPTION! 47th ward was right thinking the Chicago public isn’t going to back the CTU on this one because they are the ones paying property tax increases (long overdue) that are needed to pay for this benefit. Suburban taxpayers are catching onto this too now. The bottom line here is as follows…pay for your own retirement benefits and negotiate for raises to offset the perceived pay decrease through upcoming contract negotiations.
Comment by qualified someone nobody sent Friday, Aug 7, 15 @ 3:48 pm
==- PublicServant - Friday, Aug 7, 15 @ 12:51 pm:==
If Mayor Sweater was willing to negotiate honestly and fairly overly non-economic issues such as work rules, class sizes, start times, more counselors, etc., one could very well see the CTU agree to picking up more of the pension tab. However, Mayor Sweater doesn’t seem to understand how to give a little to get a little. He should take the advice he gave to Governor Rauner, but he has the same type of blinding hatred the governor has for unions, but applied specifically to CTU.
As for those constantly bashing CTU, the numbers showed in 2012 that the parents of CPS children are firmly on their side. Why? They deal with the same obfuscation, lies, and BS from CPS that the teachers do.
Comment by Precinct Captain Friday, Aug 7, 15 @ 4:48 pm