2012 Legislative Platform

The chief legislative priority for 2012 is to defeat legislation adverse to SUAA interests. In general, these interests involve the promotion of the well-being of all past, present, and future employees of Illinois public universities and community colleges and their survivors. Thereby, SUAA is expressing an overriding concern with the health and vitality of Illinois higher education, perhaps the most dynamic engine for long-term economic development in the State as it provides for an educated work force among its citizenry and brings to the State additional human and material resources that enhance this development. The point must be emphasized that higher education is a great investment. Rather than a drain on State resources, higher education adds value to the State and has a multiplier effect on extant State resources.

The chief threat to SUAA’s interests is the continuing attack to “impair” and “diminish” the benefits of current employees in the pension system being publicly promoted by the Civic Committee of the Commercial Club of Chicago, the Illinois Policy Institute, and other like-minded organizations along with many of the State’s leading newspapers.  SUAA must fight to preserve the integrity of the “plain meaning” of the language found in Article XIII, Section 5 of the Illinois Constitution:

PENSION AND RETIREMENT RIGHTS

Membership in any pension or retirement system of the State, any unit of local government or school district,or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.

· Any and all proposed legislation to undercut this protection must be vigorously and publicly fought through our advocacy efforts.

· Legislative proponents of our interests must receive electoral support through the political action committee - SUAAction.

· If adverse legislation of dubious constitutionality is passed, SUAA must be prepared to challenge that legislation in the courts, in concert with coalition partners or independently, if necessary.

Opposing the possible impairment of member benefits constitutes the defining issue for the maintenance of the vitality and credibility of this organization.

2012 Legislative Action Plan

1. Participate in discussions relating to proposed pension “reforms” for current state employees. SUAA will continue to oppose proposed current language as well as any revisions which are not in conformity with the provisions of Article XIII, Section 5 of the Illinois Constitution.



2. Participate in proposed discussions of SB 175 (bill to establish a schedule of health insurance premiums for State and university retirees). SUAA will continue to oppose the current language of the bill and that of any revisions which do not ensure the equitable and fair treatment of pre-1980 retirees and SURS retirees who are not eligible for Medicare coverage.



3. Monitor and review future legislative and administrative initiatives which will affect the health insurance coverage of those State and university employees who have been granted a 90-day extension of the coverage offered by their current health insurance providers. Develop appropriate responses, as necessary, to future developments regarding this issue.



4. Oppose any harmful legislative proposals to modify PA96-1496 (SB 2505). This legislation embodies the provisions of the increases in the State personal and corporate income tax rates approved by the Governor in January 2011.



5. Support reintroduction of legislation to ensure that all Illinois public community college employees will be included in and treated equally under the College Insurance Program (CIP). This legislation should include, among others, provisions to:
   
   
1. equally increased contribution rates for all Illinois public community college employees; employers; as well as the State of Illinois;  



2. include the Chicago City Colleges in CIP;



3. maintain State contribution equal to other shareholders of CIP;



4. create an 11-member advisory board to monitor the financial health of CIP;



5. prohibit the State from “sweeping” or levying administrative charges on the Community College Health Insurance Security Fund.

6. Advocate in behalf of and support legislation to fully fund the Illinois public employee pension systems for FY2013.



7. Oppose HJRCA005. The passage of this resolution would authorize a constitutional referendum that, if successful, would amend the Illinois Constitution to require a 3/5 majority in each of the houses of the General Assembly to approve legislation that would increase future pension benefits of employees of State and local governments as well as those of school districts. An override of a gubernatorial veto of legislation of this nature under this proposed constitutional amendment would require a 2/3 majority vote of each of the two houses of the General Assembly.



8. Support legislation to revise some of the most onerous features of PA96-6889 (SB1946) passed by the General Assembly in 2010. Specifically SUAA supports:
   
   
1.  raising the maximum annuity to $150,000;



2. basing a retiree’s pension on the average salary of the employee’s highest four-year period of continuous service;



3. restoring the COLA to the current (3% compounded) level;



4. reducing the retirement age without penalty to 62;



5. developing an equitable formula for early retirement pension compensation.

9. Oppose any legislation designed to eliminate the defined benefit option in State retirement plans.



10. Support legislation to enable pre-1980 retirees to receive the 3% COLA for which they are not currently eligible. Many of these individuals are living at or near the poverty level and would thus be eligible to have their pensions readjusted to reflect the 3% annual increase.



11. Consider constructive initiatives to address the State’s continuing fiscal crisis. Examples of these would include, but not be limited to, such measures as:
    

       a.   the  adoption of  a progressive state income tax;

       b.  broadening of the sales tax base;

       c.  one- or two-year moratorium on new general revenue State spending programs with the proviso that new program initiatives after that time must identify the sources of revenue to fund these services;

       d.  renegotiation of portions of the State’s bond indebtedness;

       e.  development of policies and procedures to exercise stricter oversight over State expenditures and to effect greater efficiencies in State administration;

       f.  adoption of a fair and equitable formula for current State employee and retiree contributions for health insurance benefits;

       g.  short-term state borrowing to eliminate the current backlog of “unpaid State bills”

       h.  temporary measures such as wage freezes, furlough days, hiring freezes, etc. to help stabilize State finances. Any concessions of this nature must be negotiated, of a specific duration, and must not in any manner jeopardize the pension and retirement rights enunciated in Article XIII, Section 5 of the Illinois Constitution.

Note:  The above list is merely suggestive and is intended to stimulate discussion and generate other positive and negative recommendations. The important point to keep in mind is that the General Assembly is seeking public input as it continues its consideration for pension and health care reform.

Implementation

To implement more effectively the legislative program outlined above, SUAA will:

1. Review and revise, as appropriate, current SUAA procedures for the issuance of legislative alerts and eliciting chapter and member responses.
   
   
2. Reconstitute the SUAA Legislative Steering Committee and formally designate this body as the State SUAA legislative committee.
   
   
3. Review current chapter legislative action structures. Make appropriate recommendations to strengthen the interaction and coordination of legislative activities of the State Office and its chapters. Develop appropriate procedures and processes to enhance SUAA effectiveness in legislative action.
   
   
   
4. Continue to work with coalitions which SUAA is associated such as HELC (Higher Education Legislative Coalition), IRSI (Illinois Retirement Security Initiative), ISEA-Retirees ( Illinois State Employees Association - Retirees), RSEA (Retired State Employees Association), RTAC (Retired Teachers Association of Chicago), among others, on legislative issues that impact the interests of current employees and retirees in all State pension systems. SUAA will, in addition, maintain its collaborative and consultative relationship with the State Universities Retirement System (SURS) on pension, benefit, and other related matters.