…Attorney General Agrees to Postponement as Well

State Attorney General Lisa Madigan agreed to postpone implementation

of the pension reform law, but still wants to see it enacted.

THE STATE Universities Annuitants Association (SUAA) and other groups representing employee and retiree interests reached a tentative agreement with Illinois Attorney General Lisa Madigan to postpone implementation of the State’s new pension law Senate Bill 1, Public Act 98-599.

THE AGREEMENT is pending as it requires judicial approval before going into effect. The agreement delays implementation of the pension law until July 1, 2015. Specifically, the agreement protects SURS members currently eligible for retirement by allowing them to delay their retirement decision until the constitutionality of the new pension law is determined. It allows them to calculate their money purchase annuity based on the effective rates as of June 30, 2014, and allows them to avoid the skips in the annual increases if the changes to the pension are upheld. The agreement also ensures that any unnecessary pension contributions will be refunded. 

“IT TOOK time and a lot of work but in the end we reached an agreement on a critical issue to our members,” said SUAA Executive Director Linda Brookhart. “The agreement ensures that our members will have all of the facts before they have to make a decision on whether to retire or not. It is my hope the court will do the right thing and allow this agreement to stand.”

HOWEVER, WHILE Madigan’s “filings all but concede that the benefit cuts passed by the General Assembly appear to violate the plain language of Article VIII, Section 5 of the Illinois Constitution that deems all State and local government pensions to be ‘an enforceable contractual relationship, the benefits of which shall not be diminished or impaired,’” according to Eric Zorn in the Chicago Tribune, Madigan still is asking the courts to ultimately uphold the law. See http://articles.chicagotribune.com/2014-05-18/opinion/ct-oped-zorn-0518-20140517_1_pension-crisis-state-pension-pension-changes.

SUAA ALSO has filed a lawsuit challenging Senate Bill 1, PA 98-599. The case is pending in the Sangamon County Circuit Court. SUAA's lawsuit challenges the changes to the pension code on the basis that they violate three different clauses of the Illinoi s Constitution. The suit claims Senate Bill 1 violates the Pension Clause, Article 13 Sec. 5, which forbids diminishment of pensions, the Takings Clause, Article 1 Sec. 15, which forbids taking of private property for public use without just compensation, and the Contracts Clause, Article 1 Sec. 16, which forbids the State to breach contracts that it makes.

SURS MEMBERS have the ability to choose one of three different retirement options but once they choose a retirement option – they are locked into their retirement plan. By changing the rules governing the various SURS retirement plans, SUAA believes the State is in breach of contract.

Money Purchase Glitch Fixed

THE BOARD of the State Universities Retirement System (SURS) on May 8 approved an emergency rule that will preserve benefits employees have already earned under the “money purchase” option.

THE SURS board’s emergency ruling addresses an unintended glitch in the State’s new pension law, and guarantees that the retirement benefits employees have earned as of June 30, 2014, will not be reduced – even if they retire months or years later.

BEFORE THE ruling, those benefit levels under “money purchase” would have been locked in as of June 30, 2013, eliminating a year of contributions and interest, and creating an incentive for employees to retire, whether they wanted to or not.

“I AM grateful to the SURS board for its decision to correct the “money purchase” problem, and its efforts to curb large-scale retirements that would have cut deeply into the quality of our academic and research missions, and our service to students and the State,” President Robert Easter wrote in an email to the University. “I also want to thank House Speaker Michael Madigan, whose letter to SURS helped clarify the legislature’s intent to preserve money purchase benefits that have already been earned. And I want to thank University of Illinois Board of Trustees Chairman Christopher Kennedy and Avijit Ghosh, my senior advisor, for their leadership on this critical issue and their commitment to our employees by personally attending the SURS board meeting and advocating on behalf of employees at the state’s public universities.”

SEE ALSO:

FLAW IN pension law sparks retirements. See Chicago Tribune, April 29: http://articles.chicagotribune.com/2014-04-29/news/ct-university-retirements-met-20140429_1_pension-law-pension-changes-state-universities-retirement-system.

RECORD NUMBER seek retirement. See UIC News, April 29: http://news.uic.edu/retirement-applications-counseling-on-the-rise.

RULE CHANGE will protect pensions, prevent University brain drain. See Chicago Sun-Times, May 8: http://www.suntimes.com/news/27319181-418/rule-change-will-protect-pensions-prevent-university-brain-drain.html#.U3oxeBBdWTN

EMPLOYEES CAN “unretire.” See UIC News, May 20: http://news.uic.edu/judges-ruling-halts-pension-law

Kate Pravera Joins APAC

Kate Pravera is APAC’s newest member after her recent election.

By Susan S. Stevens

KATE PRAVERA, PhD, has crossed off one major item from her to-do list: become a member of APAC.

PRAVERA, WHO is Academic Director at the School of Continuing Studies, is APAC’s newest member after her recent election.

SHE WANTED to become involved in APAC because, she said, “I am very passionate about professional development and promoting the role of academic professionals at UIC.” Pravera added, “I am very interested in creating new programs. That’s my passion and expertise.”

“I WANTED to do this for some time and I just didn’t have the time,” she said. That changed this year, as her job duties evolved and she is no longer responsible for marketing and administrative duties for the Certificate in Nonprofit Management (CNM) program.

“MY ROLE,” she said, “now focuses on being the academic director of the Certificate in Nonprofit Management program in the School of Continuing Studies,” a program she founded in 2001 in the Great Cities Institute at the College of Urban Planning and Public Affairs.

IN 2001, she established the Certificate in Nonprofit Management program, the first online, instructor-led professional development credential for nonprofit practitioners based at a U.S. university. In 2013, the CNM program moved to Continuing Studies.

“I WAS RESPONSIBLE for all facets of program management before bringing the program to Continuing Studies,” Pravera said. “I had no time to consider APAC. Now in the School of Continuing Studies, I can focus on curriculum development and building partnerships for our nonprofit management initiatives.”

THE CNM PROGRAM has tremendous stability, Pravera said, now that it has the necessary administrative support. “This program is not well-known on campus,” she explained. “It complements degree studies, and tends to serve people who already have a graduate degree and may be working in nonprofits but need professional development.”

WITH APAC, Pravera also wants to raise awareness about professional development programs that are available. “It’s maybe a simple matter of linking people with programs,” she said. Since the programs are entirely online, there are no geographic boundaries, and may reach even to other campuses. “I’m a social entrepreneur so you never know where things will go,” she said.

SOME CNM CLASSES are especially well suited for Academic Professionals, Pravera noted. Among the course offerings she recommends for Academic Professionals are Grantwriting, Strategic Management, Social Media, and Partnerships in Collaboration Across the Sectors.

“I DO THINK it’s important that Academic Professionals have a voice at the University,” Pravera said.

CONCERNING CHALLENGES facing Academic Professionals, Pravera said she thinks the big ones are recognition and opportunities for advancement. In terms of salary, “I think we should have appropriate increases commensurate with the market,” she added.

IN HER twelfth year at UIC, Pravera noted, “We have tremendous benefits here.” As far as a rule change to the University employees’ pension law that will stop a potential “brain drain” by the end of June because of an error in calculating benefits, “that’s the least they could do,” Pravera commented. A recent injunction stopped the pension law from going into effect.

PRAVERA TEACHES as well as oversees. “I have personally designed all the courses we offer in collaboration with other instructors,” she noted. A new class that she teaches is Nonprofits Today. She also teaches periodically as an adjunct in the Department of Public Administration in the College of Urban Planning and Public Affairs.

MORE THAN 30 years of experience building partnerships across the public, private, and nonprofit sectors and working across disciplines helped her develop her methods. With a highly participatory and results-oriented approach, she has shaped the successful design and facilitation of numerous professional development workshops, conferences, graduate-level courses, and online classes.

PRAVERA WAS founding Executive Director of the Chicago Community Loan Fund and also served as the Executive Director of the Child and Adolescent Bipolar Foundation. As a Senior Consultant at Millennia Consulting LLC, she established a practice centering on planning, design, and evaluation services, including business planning, curriculum design for adult learning, program design, and organizational development. Her PhD is in social ethics from Northwestern University.

SHE AND her husband live in Berwyn, a 17-minute Metra ride from her office.

TO CONTACT Pravera, email kpravera@uic.edu. 

New Listserv Targets UIC Employees Nearing Retirement, Current Retirees

A LISTSERV on campus was recently created by the UIC State Universities Annuitants Association (SUAA) called “ACADEMY2”. The list is for conversation-style posts related to retirement questions, comments, announcements, and concerns. The list is unique in that you may subscribe using any email address you chose (for example, gmail or yahoo mail). That way the list remains open to those who are retired and after their “@uic.edu” email address expires.

THE LIST is active with many well informed contributors participating.  Additionally, UIC SUAA President, Dr. Brenda Russell, regularly responds to people’s questions. It’s a great forum for all employees (faculty, Civil Service staff, and APs) who are considering retirement.  To join the list:

1. Send an email to listserv@uic.edu
2. no need for subject
3. In the text body of the email, type:  subscribe academy2

IF YOU later change your mind, you can subscribe or unsubscribe at any time.

APAC Meetings Scheduled

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 the College of Medicine Research Building (CMRB), 909 S. Wolcott, or Room 2750 of University Hall on the East Campus. Next meeting is June 11 in Room 4175 of CMRB. For information, call (312) 996-0306.

AP RESOURCE SPOTLIGHT

Important Phone Numbers

THE FOLLOWING is a list of important campus phone numbers. All are area code 312.

Access and Equity, 996-8670

Admissions and Records, 996-4350

African-American Cultural Center, 996-9549

Counseling Center, 996-3490

Credit Union, 996-7436

Financial Aid, 996-3126

Gay, Lesbian, Bisexual Concerns Office, 413-8619

Health Service, East, 996-3388

Health Service, West, 996-2901

Housing, East, 355-6500

Housing, West, 355-6400

Latino Cultural Center, 996-3095

Lost and found, 413-5100

Network for Crime Victims, 413-8206

Office for International Students, 996-3121

Parking, East, 355-0721

Parking, West, 413-5850

Police/Fire Emergency, 355-5555

Police Nonemergency, 996-2830

Police TDD, 413-9323

Student Information Network, 996-5000

Students With Disabilities, 413-2183

Wellness Center, 413-2120

Women’s Affairs, 413-1025

FOR MORE MAY 2014 APAC NEWS STORIES, CLICK HERE

THE CONTINUING CRISIS

Editor’s Note: “The Continuing Crisis” is a section of APAC News which links to news pertinent to the State budget crisis and other financial matters as they affect the University and Academic Professionals. These news outlets are not affiliated with or endorsed by APAC.

CONSTITUTIONAL SCHOLAR Prof. Ann Lousin’s talk on pensions from the UIC SUAA meeting of April 24. Prof. Lousin is on the faculty of the John Marshall Law School. She believes best protected by the State Constitution are those already retired. Next are those vested and still working, etc. “Reliance” is a key factor. What did you rely on when you made your career choices? See You Tube at: https://www.youtube.com/channel/UCDyQeh0rgkNynRvaWQtyLdQ.

FEDS CREATE new office to keep eye on state and local pensions. See The Bond Buyer, April 29: http://www.bondbuyer.com/issues/123_75/treasury-creating-office-of-state-and-local-finance-1061719-1.html.

Vol. 7, No. 5, May 2014

ISSN 1946-1860

Editor: William S. Bike

Staff: Neal Lorenzi, Gail Mansfield, Susan S. Stevens, Monica M. Walk

Chair: Michael Moss

Vice Chair: Ahlam Al-Kodmany

Secretary: Mary Berta

Treasurer: Agnes Kawalec
Web Chair: Jeff Alcantar

http://www.apac.uic.edu

April 2014 APAC News Vol. 7, No. 4

Petition: Supplemental Retirement Benefits

We will update this page regularly with updates on the petition.
Check back often for news!

April 21, 2014 at 10 a.m.: Petition is launched
April 30 at 9 a.m.: Over 1,100 Signatures!

The Petition is Available Here: https://uofi.uic.edu/fb/sec/3250911

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

WE ASK you to consider signing our petition in support of University-subsidized supplemental retirement benefits. 

RECENT PENSION legislation, Public Act 98-599, has significantly diminished the retirement benefits for University of Illinois employees. At the January 2014 Board of Trustees meeting, University leaders decided to explore supplemental retirement benefit programs that could help minimize the impact for faculty and staff. The plan being considered will not fully offset the benefits we have lost, but they represent the University’s first and best efforts at repairing the damage.

IF LEGISLATORS do not support our current efforts, we may not be able to secure the supplemental retirement benefits under consideration. It would also set a precedent, making any subsequent effort by the University to secure supplemental retirement benefits that much more difficult.

WE WANT Illinois State legislators to support University efforts to secure supplemental retirement benefits, and we are providing you an opportunity to voice your support for the supplemental retirement benefits by signing our petition. 

YOUR PARTICIPATION in this petition is voluntary. This petition is open to all employees and annuitants who have paid into the State Universities Retirement System (SURS) including Academic Professionals, Faculty, and Civil Servants; as well as their colleagues, family, friends and supporters. If you wish to review and / or sign the petition, please click the link below:

https://uofi.uic.edu/fb/sec/3250911

IF YOU WISH TO REVIEW AND / OR SIGN THE PETITION, PLEASE DO SO NOW. THE PETITION WILL CLOSE ON FRIDAY, MAY 2, AT 5 p.m. 

IT SHOULD take about ten minutes or less to review and / or sign the petition. While at work, you may review and / or sign the petition before work, after work, or during any normally scheduled break (such as lunch) using your work computer.

PLEASE NOTE: University and Campus Human Resources, the Office of the Chancellor, and the Ethics Office have all been made aware of the petition. Advocating for support of the University of Illinois and employees is not prohibited by university or campus policies or the State Officials and Employees Ethics Act. Employees should exercise care to ensure these activities do not negatively impact fulfillment of employment responsibilities.

This petition is being coordinated by UIC’s Academic Professional Advisory Committee (APAC).

Stephanie Whitaker to Represent APs in Chancellor’s Search

Stephanie Whitaker will represent APs in the search for a new Chancellor.

STEPHANIE WHITAKER, MPA, Research Program Coordinator in the Department of Political Science, has been named the Academic Professional representative on the Chancellor’s Search Advisory Committee. The committee will choose a successor to Chancellor Paula Allen-Meares, who will step down next year.

“I AM really honored to be selected to serve in this capacity to represent the Academic Professional community on the Chancellor’s Search Committee,” Whitaker said. “Being a 20-plus year AP employee, I believe I share many of the concerns and issues that affect this constituency.  

“DURING MY years of service with the Chancellor’s Committee on the Status of Blacks (CCSB), our AP sub-committee has had strong ties and membership with the Academic Professional Advisory Committee (APAC),” Whitaker continued. “As this search committee works through the process to identify new campus leadership, I hope to be able to impress upon the candidates the voice of Academic Professionals and the important service we provide for the UIC Campus.”

WHITAKER HAS worked for the Department of Political Science the past 12 of her nearly 21 years on campus. Her responsibilities within the department have included overseeing the ongoing procedures, priorities, and organizational structure for faculty research, grants, and programs; managing the day-to-day undergraduate student programs and processes; creating and implementing department development initiatives; and procurement and financial transaction management.

SHE RECEIVED her undergraduate degree in Political Science and her Master in Public Administration from UIC.

WHITAKER FORMERLY was Special Assistant to the Associate Chancellor for Development at UIC, and in addition to her current role, has served the campus community on the CCSB, which she previously Co-chaired; the Provost’s Diversity Advisory Council (DAC); the Liberal Arts and Sciences (LAS) Diversity Committee; the UIC Black Alumni Advisory Council (BAAC); and the Illinois Committee on Black Concerns in Higher Education (ICBCHE). She has received the UIC Award of Merit, the Chancellor’s Academic Professional Excellence Award, and the LGBTQ Ally Award.

APAC Meetings Scheduled

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. Next meeting is May 14 in Room 2750 of UH. For information, call (312) 996-0306.

THE CONTINUING CRISIS

Editor’s Note: “The Continuing Crisis” is a section of APAC News which links to news pertinent to the State budget crisis and other financial matters as they affect the University and Academic Professionals. These news outlets are not affiliated with or endorsed by APAC.

ECONOMICS EXPERT says most cities and states can restore public pensions to healthy funding levels without big tax hikes or cutting benefits. See Fox Business, April 9, 2014: http://video.foxbusiness.com/v/3446132612001/baker-absolutely-no-pension-crisis/#sp=show-clips.

UNIVERSITY CONSDERING pension supplement. See News-Gazette, April 11, 2014: http://www.news-gazette.com/news/local/2014-04-11/ui-group-looking-pension-supplement.html.

GOVERNOR OPEN to delaying pension reform during court challenge. See Progress Report, April 14, 2014: http://progressillinois.com/news/content/2014/04/14/quinn-open-delaying-pension-reform-overhaul-during-court-challenge?utm_source=PI+Extra+4.14.14&utm_campaign=PI+email+4.14.14&utm_medium=email

HOW PENSION reform affects you. See The Advocate, April 2014: http://www.surs.org/pdfs/advocate/Tier1AdvocateApril2014.pdf

PENSION ‘REFORM’ typo could cause mass exodus. See Daily Illini, April 21, 2014: http://www.dailyillini.com/news/article_21f858ba-c901-11e3-bb14-0017a43b2370.html.

Vol. 7, No. 4, April 2014

ISSN 1946-1860

Editor: William S. Bike

Staff: Neal Lorenzi, Gail Mansfield, Susan S. Stevens, Monica M. Walk

Chair: Michael Moss

Vice Chair: Ahlam Al-Kodmany

Secretary: Mary Berta

Treasurer: Agnes Kawalec
Web Chair: Jeff Alcantar

http://www.apac.uic.edu

March 2014 APAC News Vol. 7, No. 3

Ralph Martire of Center for Tax and Budget Accountability Proposes Pension Financing Solution

Ralph Martire of the Center for Tax and Budget Accountability has proposed
a workable solution to the State’s pension financing problem.

By Neal Lorenzi

RALPH MARTIRE, Executive Director of the Center for Tax and Budget Accountability (CTBA), has proposed a multi-year solution to the State’s pension financing problem that would replace the current 30-year full-funding plan with a 44-year payment plan. Essentially, he wants to refinance the pension “mortgage” to lower the annual payment. The Center is a bipartisan fiscal policy think tank based in Chicago.

MARTIRE’S PROPOSAL would “restructure” 90 percent of the $93 billion unfunded liability, or roughly $85 billion. All but ten percent of the unfunded liability would be paid off by 2057, through equal annual contributions from State government. Martire estimates the payment would be approximately $6.9 billion every year for 44 years.

CURRENTLY, STATE law requires the State government to pay off the pension systems’ unfunded liability by 2044 in annual contributions. These contributions, however, increase in size annually between 2013 and 2044. For the Teachers’ Retirement System, for example, the annual State contribution in 2014 is scheduled to be $3.4 billion, and will increase over the next 31 years to $9.31 billion.

LEGISLATORS OF both parties say that this continually rising “ramp” payment is too expensive and will be unaffordable in the future because it will re-direct money from other State budget priorities. The pension systems are left with just 40 percent of the funding they should currently have, which is well below the 80 percent generally deemed healthy for public systems.

“SIMPLY RE-AMORTIZING $85 billion of the unfunded liability into flat, annual debt payments of around $6.9 billion each through 2057 would solve the problem,” explained Martire. “After inflation, this new, flat, annual payment structure creates a financial obligation for the State that decreases in real terms over time, in place of the dramatically increasing structure under current law. Moreover, because some principal would be front-loaded, this re-amortization would cost taxpayers $35 billion less than current law. It solves the problem by dealing with the cause.”

THE CURRENT crisis, he added, is the direct result of a 1995 law intended to bring the retirement systems to 90 percent funding by 2045. That legislation so back-loaded the payment schedule that the unfunded liability will continue to grow until FY 2030, topping out at $133.4 billion, while the required annual State contribution will continue rising to reach $17.6 billion in 2045.

THE STATE’S fiscal system has a structural imbalance and therein lays the problem, according to Martire. Even in a normal economy, the system cannot keep pace with the cost of delivering the same level of services every year, much less meet a back-loaded repayment schedule for unfunded liability in a pension system. The fiscal structures needed to fund the current plan do not exist.

“THE CURRENT repayment structure is not a creature of actuarial assumptions or actuarial requirements but is purely a legal fiction the State imposed upon itself to kick the funding can down the road,” Martire said. “So, to solve the real problem that is creating pressure on the State’s fiscal system, the State has to re-amortize the debt repayment schedule or the fiscal pressure will not be alleviated.

“WE’VE GOT to live within an existing fiscal system and find a practical approach to solving this problem,” he added. “We still have to maintain the fiscal capacity to pay for State services as well as our other debt. Also, the State has to share its income tax revenue with local government.”

THE DEMANDS being made on the State fiscal system go well beyond paying for pensions, he added. The majority of the State’s money is used to pay for education, healthcare, and public safety.

MARTIRE URGES UIC employees to prevail upon their State representatives and State senators to do the right thing, which in this case is take a realistic approach to funding the pension system.

FOR MORE information about the CTBA, see www.ctbaonline.org.