April 25, 2012
Governor Proposes Drastic Pension Changes
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Governor Patrick Quinn Friday, April 20, unveiled his plan to alter
State
Universities Retirement System (SURS) and other pensions.
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IT CALLS for:
- Raising the retirement age from 55 to 67.
- Increasing employee contributions by three percentage points.
- Reducing cost-of-living adjustments to three percent or one-half of the Consumer Price Index, whichever is less.
- Upon retirement, a member's COLA will not begin until five years after retirement, or age 67, whichever comes first.
- A strong guarantee written into State law that requires the State to pay its full annual contribution to SURS and the other pension systems. No detailed language of this guarantee has been provided as yet, however.
- The basic 2.2 benefit formula that is based on service credit and final average salary.
- The alternative "money purchase" formula for members with service prior to 2005, a formula that is based on total contributions.
- Post-retirement work rules.
- Creditable earnings – there is no cap on earnings applied to a pension.
- Survivor benefits.
"CONSIDERING THAT the subject at hand is the ability of hundreds of thousands of Illinoisans to support themselves in retirement, we believe the proposals are insensitive and irresponsible," Carrigan said, adding that labor was not invited to Quinn's pension working group.
THE STATE constitution prohibits cutting pension benefits for government workers and opponents of the Governor's plan are prepared to go to court to fight any cuts. Quinn aims to get around the constitutional prohibition by making the cuts "voluntary."
IF STATE employees do not want to opt into this new plan, the Governor instead would let them stick with the current plan, but then they would forfeit their retirement health-care coverage. The Illinois constitution does not guarantee healthcare in retirement. Those who opt to stick with the current plan also would see no benefit from any pay raises they get between the enactment of the new law and retirement.
IF UNIVERSITY personnel opt for the new plan, with its higher employee contributions and later retirement age, they would get health benefits in retirement and any pay raises they get would also increase their pensions.
THE NEW health plan would not be as generous as the current one, Quinn said. State employees who have worked 20 years currently pay no health insurance premium in retirement. This may be changed so that retirees would pay a premium.
PEOPLE WHO already have retired would not be affected.
QUINN SAID he assumed the law would eventually wind up in court.
THERE IS no timetable or deadline for action on this plan, or a date when the changes would take effect if enacted. The legislation will be the subject of debate in the Illinois General Assembly, and changes in the final legislation can be expected as compared to the Governor's current plan.
"LET ME stress that this is only a proposal, and no legislation has been introduced," said Dr. Robert A. Easter, President-Designate of the University of Illinois. "We will closely monitor its progress through the legislative session.
"WE ALSO will be actively engaged in proposing adjustments and amendments to the proposal to minimize the financial impact on our dedicated employees and protect retirement benefits earned. Approval of the proposal by the legislature in its present form is uncertain.
"I FULLY appreciate the concern you may have about your retirement system and the impact these proposed changes may have on you and our great University," Dr. Easter concluded. "We will keep you informed as this proposal moves forward for legislative consideration and do everything possible to protect the retirement benefits you have earned."
ALMOST ALL sides, including credit rating agencies like Moody's that have downgraded the State's bond rating, acknowledge that pension liability stems from Illinois using its pension fund like a bank account – using money earmarked for pension obligations to instead pay down other debts or fund State programs, and, in doing so, shortchanging public employees.
RALPH MARTIRE, Executive Director for the Center for Tax and Budget Accountability, a Chicago think tank, wants the State to treat pension debt like it would bank debt or any other outstanding obligation.
"WE NEED to treat it for what it is – real debt – and pay it back through real debt payments," Martire said, like front-loading interest payments and back-loading principal payments. But, Martire said, "this is not being discussed."
FOR MORE information, contact SURS at (217) 378-8800 or the UIC Office of Human Resources at (312) 355-5230.
Contributing to this article were Abdon M. Pallasch and Dave McKinney of the Southtown Star, Matthew Blake of Progress Illinois, and Merrill Gassman of SURS.
UIC HR Prepares for Retirees’ Institutional Impact
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“Eligible employees are giving serious consideration to retiring prior
to the July 1, 2012, deadline,”
said Robert Crouch, Assistant Vice President of
Human Resources.
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- Employees should inform their
department supervisor of the intent to retire.
- Employees should then contact Central HR.
- Contact SURS. They will provide
clarification on entitlements and retirement income.
Campus Voices Opposition: 600 Pages of Comments Delivered Opposing Changes to Civil Service Administrative Code
- Chicago: 289
- Urbana-Champaign: 273
- Springfield: 22
- Total Respondents: 584
- There is a tremendous potential for negative impact
on the UI research enterprise. Once funded, work on sponsored
programs is expected to begin immediately. If this amendment is
implemented, it could cause hiring delays that would jeopardize sponsored
project funding.
- Various factors (including the hiring freeze, State
budget, and increased retirements) have resulted in vacant positions going
unfilled and the workload has been shifted to the remaining staff.
If the proposed amendment is implemented, it will exacerbate this problem
– many staff are already working at capacity and cannot continue to absorb
additional responsibilities.
- Additional concerns were voiced at Chicago’s Medical
Center, where hiring delays could negatively impact patient care services.
Chancellor’s Academic Professional Excellence Award Nominations Due in June
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Chancellor Paula
Allen-Meares presents the CAPE Awards each year.
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Court Rejects Faculty Union
ALMOST A year ago, faculty members at UIC filed papers to unionize. The drive at the University was seen as a major victory for academic labor, which has struggled in recent years to organize at research universities. And at a time when the treatment of those off the tenure track is an increasingly important issue to faculty leaders, the new union was to have combined tenure-track and adjunct faculty members.
SINCE THEN, the union has been engaged in a legal fight with the University, which argued that Illinois law does not allow joint units for tenure-track and non-tenure track faculty members. Along the way, the union won most of the skirmishes, but that ended on March 23.
AN ILLINOIS appeals court ruled that the Illinois Educational Labor Relations Board (IELRB) exceeded its authority when it certified the new faculty union -- and so effectively stripped the union of its authority. The IELRB ruling was based on interpretations of a narrow provision of State law. The ruling found that the law's direct language was ambiguous but that there was evidence of what legislators intended with the law, and that this evidence backed the University's interpretation that a joint bargaining unit was illegal.
THE UNIVERSITY has said in the past that it would not object to separate unions for tenure-track and non-tenure-track faculty members. And a University spokesman confirmed that position after the appeals court ruling came down.
ONE OF the organizers of the union criticized the decision, but said that the union was determined -- one way or another -- to move ahead to bargaining with the administration. "The administration decided to take this issue to a conservative appellate court in Springfield, when of course the proper place to appeal would have been Chicago, where the union activity has taken place," said Lennard J. Davis, an English professor at UIC, via e-mail. “They got the decision they wanted, which was a minor victory in which the conservative court ruled, as conservative courts and venues have ruled throughout the U.S. in these times -- making a decision on technicalities. Because this is a technical decision, we think the University has a Pyrrhic victory. The decision can and may be appealed by us to the Supreme Court of Illinois."
BUT, HE added: "At the same time our central and focused interest is to begin collective bargaining as soon as possible and within the framework of Illinois law. To that end, we are willing to take whatever steps required to bring such negotiations about. We believe that we have the ability to do that sooner rather than later, and whether we are two bargaining units of tenured and non-tenured faculty in the same union or one unit within the same union, we hope to be sitting down with the administration to begin collective bargaining within a month or two."
ON APRIL 20, in response to the recent Illinois Appellate Court decision, faculty filed a new set of membership cards at the Illinois Educational Labor Relations Board, with a greater number of signed cards compared to last year.
APAC Adds New Members
APAC Meetings Scheduled; All Invited
SCHEDULED MEETINGS are May 9 in Room 2750 UH, June 13 in Room 5175 CMRB, July 11 in Room 2750 UH, Aug. 8 in Room 5175 CMRB, Sept 12 in Room 2750 UH, Oct. 10 in Room 5175 CMRB, Nov. 14 in Room 2750 UH, Dec. 12 in Room 5175 CMRB. For information, call (312) 996-0306
APAC PROFILE: Jeff Alcantar: APAC’s Webmaster
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Jeff Alcantar APAC's Web Chair (click photo to enlarge) |
DURING ALCANTAR’S last year with the police department, he was offered a position in the Chief of Patrol’s office, Computer Application Development Section, where he provided support for 25 city-wide districts’ software applications and Local Area Networks (LAN). Alcantar had many accomplishments working with his team, including installing more than 250 computers on the police department’s LANs, introducing the Intranet concept to the districts, automating the CPD’s more than 3,000 Department General and Special Orders and Department Notices and providing video training on demand to police officers during roll call utilizing the Intranet.
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Officer Alcantar, 007 district Englewood (click photo to enlarge) |
Alcantar receives the Superintendent's Award of Merit, presented by Superintendent Terry Hilliard and Mayor Richard M. Daley |
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Jeff Alcantar representing OBFS (click photo to enlarge) |
BENEFIT BEAT
MEET THE CHANCELLOR’S COMMITTEES
Left to right: Jacquelyn
Jancius, Sara Rusch, and Connie Ping
at the CCSW’s 2011 Woman of the Year
reception.
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Changing Lives One Volunteer at a Time
No Brag, Just Fact
- The University produces more than $13 billion in
direct and indirect economic impact on the State of Illinois, including
the creation of more than 150,000 jobs.
- For every dollar the State of Illinois spends on the
University, the three campuses generated more than $17 into the State
economy.
- The UIC Medical Center is the State’s largest public
healthcare facility.
- UIC is the principal educator of Illinois’
physicians, nurses, dentists, pharmacists, and other healthcare
professionals.
- UIC is among the 96 universities in the nation that
are classified by the Carnegie Foundation as having very high research
activity.
WEBSITES TO KNOW
UIC RETIREMENT Matters is a new blog focused on UIC-specific retirement concerns: http://uicretirement.blogspot.com/.
STATE UNIVERSITIES Retirement System (SURS) money purchase facts can be found at http://www.surs.com/pdfs/forms/MoneyPurchaseFacts.pdf.
THE CONTINUING CRISIS
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Wisconsin Governor Scott Walker. |
Vol. 5, No. 4, April 2012
Webmaster: Jeff Alcantar
March 19, 2012
State Universities Civil Service System Attempts to Take Power to Exempt Workers from Civil Service Status Away from University

THE AUTHORITY to approve exemptions in order to establish Academic Professional positions would therefore no longer reside with the University, but solely with SUCSS and its Executive Director.
THE PROPOSED amendment, which would hinder the University’s ability to create Academic Professional positions, is on page 3840 and can be found at http://www.cyberdriveillinois.com/departments/index/register/register_volume36_issue10.pdf.
ANY ILLINOIS citizen has 45 days from March 9 (approximately April 25) to provide comments. Comments should be addressed to:
Abby K. Daniels
Manager, Legal Services and Legal Counsel
State Universities Civil Service System
1717 Philo Road, Suite 24
Phone: 217/278-3150 ext 226
E-mail: abbyd@sucss.state.il.us
THERE ARE several serious negative implications should this amendment go into effect:
- If the University loses its exemption authority, it would cause significant delays in hiring processes. Any new AP position would have to be approved by SUCSS.
- UIC has hundreds of Human Resources (HR) professionals who are able to efficiently and accurately process these transactions. If the change is implemented, the process would be managed by an external agency that is disconnected from the University’s day-to-day HR operations and UIC’s campus-specific HR needs.
- SUCSS has only 11 staff. If this change is implemented, the work currently supported by hundreds of dedicated UIC HR staff will have to be absorbed by these 11 SUCSS staff members who already have full-time job responsibilities. SUCSS does not have the capacity to absorb the HR transactions from the entire UIC campus, much less all 11 State Universities that they support.
- The change could be implemented as early as May; a critical window for hiring new employees to replace retirees (the University anticipates significant retirements prior to July 1, 2012, as a result of the changes to the SURS Money Purchase formula).
WHILE AT work, you may review and submit a comment before work, after work, or during any normally scheduled break (such as lunch) using your work computer. Do not participate in this activity while at work if it will significantly interfere with your ability to perform your job effectively. You may also review/submit a comment outside of work.
HUMAN RESOURCES and the Office of Governmental Relations have been made aware of this process. APAC has assurances that it does not represent a prohibited political activity, and it is not forbidden by the State Officials Employee Ethics Act.
University Opposes Legislation to Eliminate Employee Tuition Discount

THE UNIVERSITY has formally registered its opposition to proposed State legislation that, if adopted, would eliminate discount tuition waivers for employees.
EMPLOYEES AT Illinois public universities such as UIC, who have held positions for at least seven years, are eligible to receive half-price tuition for their children. Each year, more than 2,000 students statewide take advantage of the tuition.
“MOST UNIVERSITIES around the country provide tuition waivers, so eliminating them would impair our ability to recruit and retain top faculty and staff,” said University President Michael J. Hogan. “The waivers are a reasonable benefit for our hard-working faculty and staff, who contribute greatly to the State’s well-being through their teaching and research. The waivers are part of what universities consider the normal compensation package when we recruit faculty in a very competitive market. Without them we are at an extreme disadvantage.”
AT A Feb. 29 hearing on the legislation, House Bill 5531, sponsored by Rep. Luis Arroyo (D-Chicago), the University filed a formal notice of opposition, according to DeShana Forney, Associate Director of University Governmental Relations. Illinois public universities and organized labor lined up to testify in opposition to the legislation, which advanced out of the House Executive Committee and will be considered next by the full House of Representatives. If passed by the House, it would require approval in the Senate before final consideration by the Governor.
“WE WILL continue to talk to legislators on both sides of the aisle and let them know how this legislation would put public universities in Illinois at a competitive disadvantage,” Forney said. “We will do everything we can to explain our position.”
COMMON AT colleges and universities nationally, including UIC peer institutions, the waivers are an incentive to retain high-quality faculty and staff at the University.
REP ARROYO maintains that the State cannot afford the waivers. If passed, the new legislation would be effective immediately.
TWO OTHER bills, HB 2959 and HB 3873, also have been introduced that would repeal the tuition waivers. They have been assigned to the House Higher Education Committee; the University will oppose both bills.
YOU CAN look up contact information for your local district officials by clicking the URL at the end of this paragraph, should you wish to contact them and let them know how you feel about the proposed legislation: http://www.elections.il.gov/districtlocator/DistrictOfficialSearchByZip.aspx.
SEE ALSO related UIC News article at http://www.uic.edu/htbin/cgiwrap/bin/uicnews/articledetail.cgi?id=16181.
APAC Elections Currently Underway

APAC Meetings Scheduled; All Invited
ALL APs are invited to the monthly APAC meeting at 12:30 p.m. on the second Wednesday of the month. Meetings are held either in Room 5175 of the College of Medicine Research Building, 909 S. Wolcott, or Room 2750 of University Hall on the East Campus.
THE REGULARLY scheduled meeting originally set for April 11, has been cancelled due to conflicts with the Bringing Administrators Together conference.
SCHEDULED MEETINGS are May 9 in Room 2750 UH, June 13 in Room 5175 CMRB, July 11 in Room 2750 UH, Aug. 8 in Room 5175 CMRB, Sept 12 in Room 2750 UH, Oct. 10 in Room 5175 CMRB, Nov. 14 in Room 2750 UH, Dec. 12 in Room 5175 CMRB. For information, call (312) 996-0306.