NO

2%
 

      NO
 Pension
  Holiday
 

NO to
Increased Health
  Costs
 

 
State Universities Annuitants Association
Mini Briefing
May 9, 2009
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Who received the most press this past week?  Was it IEA’s Rally with Governor Quinn’s announcement that he is pulling his 2% proposal?  Was it House Speaker Michael Madigan introducing HB4450 which creates the Officials and Employees Termination Act of 2009 or was it the 5th Biennial Capitol Capers – a Musical Review Produced by the Conference of Women Legislators?   The most fun was the latter.

The Fair Solutions for a Fair Budget meetings sponsored by AFSCME and IFT have been attended well except for the invited legislators who have not been showing up – maybe at least one is present at each regional forum.   Kudos to Senator Michael Frerichs who did attend the East Central Regional Forum at Parkland College held on May 4th.  He passed out a copy of a letter that he had written to Governor Quinn regarding the proposed “pension system alterations “and the proposed pension holiday.  The full content of the letter can be read on the SUAA website by Monday morning.

There was also buzz about the Pension Benefit Cuts draft legislation that landed on SB1292.   By reading SB1292 it would seem like an easy bill to pass.  The original synopsis reads - Amends the Illinois Pension Code. Requires each retirement system to establish a policy with the goal of increasing the racial, ethnic, and gender diversity of its fiduciaries, update the goals annually, and submit a report to the Governor and General Assembly by September 1 of each year.  Now with the addition of “Cuts” amendment, the pressure is on to get the bill stopped.   IFT has been generous to provide a Legislative Fact Sheet that details the Pension Benefit Cuts and why this bill should be opposed as amended.  SB1292 will be heard in the House Personnel and Pensions Committee on Tuesday, May 12.  This Fact Sheet will also be provided on the SUAA website by Monday morning or by following this link: 

 http://www.ift-aft.org/forms/index3.aspx?CID=1709&TID=top195&PID=44

The amendment is not available on the General Assembly’s website at this writing. 
For additional reference go to:  

http://www.ilga.gov/commission/cgfa2006/Upload/409%20PENSION%20BRIEFING.pdf

The above link goes directly to COGFA’s Fiscal Analysis of the Governor’s Pension Reform Proposals.
HB4450 was filed by House Speaker Michael Madigan.  This bill creates the Officials and Employees Termination Act of 2009.   To listen to the actual press conference follow this link:
 http://wuis.streamguys.net/playlist.asp?player=asx&file=/news/SpkFumePresser.mp3

The legislation provides that any designated officials and employees who were appointed by former Governors’ George Ryan and Rod Blagojevich will be terminated, by operation of law, effective on the effective date of the Act.  A probable 90 boards and 3,000 people will be impacted by this legislation.   Those persons covered by the bill will be eligible for reinstatement by Governor Quinn to their current positions.  They will also be allowed to serve up to 60 days after the effective date while Governor Quinn is conducting a review of personnel and positions.

The word fumigate was used quite a bit by Speaker Madigan when referencing HB4450.  Out with the old and in with the new or at least those who are not tainted by those who had appointed them.

House Speaker Madigan did say he was in support of an income tax increase if the money would be used to pay the bills and not grow state government.