State Universities Annuitants Association

MINI BRIEFING
March 5, 2009

__________________________________________________

The crunch is beginning. Substantive Legislative bills need to be passed out of their respective committees by the end of next week. The House date is Thursday, March 12th and Senate date is Friday 13^th. There are many issues that will come to the forefront; some will be swept under until the next session; while others will linger. This is probably one of the most substantial sessions SUAA has seen for quite sometime; aside from funding the pensions.

From taxing pensions to how to fund pensions to changing pensions are now all in the headlines.
_____________________________________________________________________________________

The Committee on Deficit Reduction met on Wednesday for approximately 3 hours. Those providing insight, better known as testimony, were people from the education arena. The information provided centered on what can be done to fill the budget gap. Most feel that the state needs to bear more of the brunt – the cost of education. Illinois rates low in that area for funding: the course to take – tax increase? It was said and has been said that Illinois has a revenue problem. Should the state sales tax include services? Do Charter schools save the taxpayers money? The Committee is to deliver its final report by the end of March. Next meeting is scheduled for March 10. Topic: Health Care.
____________________________________________________________________________________

The Commission on Government Forecasting and Accountability has chosen Aon Consulting to study the cost savings of Treasurer Giannoulias’ plan to merge the 5 state pension investments into one system. It is an $88,000 project. Watch SB1734 to see if it passes out of the Senate Executive Committee next week. Treasurer Giannoulias’ focus this week has been his possible run for the Senate seat currently held by Senator Rolland Burris.
_____________________________________________________________________________________

Representative Gary Hannig (D98 - Litchfield) is Illinois’ new Secretary of Transportation. He will be handling infrastructure projects funded by the federal stimulus bill. Mrs. Hannig (Betsy) will probably be taking his seat, with the idea that she will not seek re-election.
____________________________________________________________________________________
Picked up at the State House Press Room today – Press Release by the National Taxpayers United of Illinois. STOP GOV. QUINN’s HUGE INCOME TAX HIKE! Why because according to Jim Tobin, President of NTUI, “there are 3,195 retired state and local government employees in Illinois who receive over $100,000 a year in pension benefits.” Taxing pensions is the way to enhance revenue. Go to www.ntui.org for more information. There is a spreadsheet naming names of many of those who are receiving those pensions, plus other information of interest. Jim Tobin believes that all state and local government employees should be required to invest in a 401(k) program. Mr. Tobin is possibly an extremist, but NTUI has existed for many years.

____________________________________________________________________________________
Now down to the nitty-gritty. The Senate Pensions and Investments Committee met today. Resolutions of interest to SUAA were: SR54 and SR75; SB303 was not called although scheduled. SB303 is Sen. Brady’s Pension – Defined Contribution Plan.

Synopsis As Introduced for SR75:
Encourages and supports action by the Congress of the United States to enact legislation to repeal the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act, or reduce the effects thereof.
This Resolution was sponsored by Senators Bond, Frerichs and Collins. Do pass; no opposition. As a side note Sen. Brady said this issue has been around many years and he is hopeful that it will be resolved this year. Everyone can concur to that.

Synopsis As Introduced for SR54:
Instructs the Commission on Government Forecasting and Accountability to study the economic impact on central Illinois of the number of jobs that would be eliminated due to the consolidation of investment authority in the State Universities Retirement System and the Teachers' Retirement System of State of Illinois.
This Resolution was sponsored by Senators Frerichs, Bomke and McCarter. Do pass; no opposition.

The sub-Committees will meet next week – March 11 – Pension Enhancements and Pension Reform.

Senator Trotter is now a member of the Pension and Investments Committee. He is the sponsor of the College Insurance Program legislation that is now pending agreement from the members of the coalition.

SB1638 had been assigned to the Revenue Committee. It was reassigned on March 4th to this committee which was where it emerged from in the last legislative session.
_____________________________________________________________________________________

As most SUAA members are aware, SUAA needs to grow its membership. Please think about recruiting a member. It is hopeful that these Mini Briefings will encourage each of you to become aware and knowledgeable about happenings at the Capitol. These bits of information are hopefully assisting in building a knowledge base in order for many of you to better understand how each of these proceedings can/could affect your pension, benefits and well-being.

Do you need a specific question answered? Write, email or call. Information to do so is on the website.