February 25, 2013
A Win for APs; University: Merit Board Votes Not to Take Away University Exemption Authority
THE STATE Universities Civil Service Merit
Board, composed of trustees representing Illinois’s nine public universities
voted 8-2 in Urbana on Jan. 30 to withdraw a proposed rules change that would
have moved the exemption authority to the State Universities Civil Service
System.
CHANCELLOR PAULA Allen-Meares expressed gratitude to the Board and her support for its decision.
ALSO AT the Senate meeting, Dr.
Albert J. Schorsch, Associate Dean, College of Urban Planning and Public
Affairs, Co-Chair of the Support Services Committee, addressed the issue,
noting that the Support Services Committee sent a member to testify against
SUCCS’ attempt to take the exemption authority away from the University.
“Bureaucrats assume our patience is unlimited,” he said. “It isn’t.”
THE CHAIR of the Council of Academic
Professionals at the University of Illinois at Urbana-Champaign told Illinois Public Media News that the
University is happy with the Merit Board’s decision. Kostas Yfantis said the exemption authority should stay at the
University level. He said moving it to the Civil Service System would put it in
the hands of officials who are not familiar with University needs and
operations.
“YOU WOULD have an agency outside of the
day-to-day operations, outside of the operational fabric of the University,
determining who is an Academic Professional and who is a Civil Service
employee,” said Yfantis.
SEE ALSO the article “Universities to keep
job classification authority,” Inside
Illinois, Feb. 7 issue, http://news.illinois.edu/ii/13/0207/sucss.html.
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
March 13 in Room 2750 of University Hall. For information, call (312)
996-0306.
APAC Elections Coming
APAC
REPRESENTS close to 4,000 Academic Professionals on campus and advises
University Administration, reviews policy, represents APs on search committees,
voices concerns regarding APs to the Chancellor, and plays an active role in
professional development efforts at UIC. APAC is comprised of 15-to-18 APs,
elected for a three-year term. Approximately one-third of the APAC seats are up
for election this year.
SENATE AP
representatives attend regular University Senate meetings and may also serve as
AP representatives on Senate Committees. One AP Senator will be elected this
year.
NOMINATION MATERIALS for APAC and Senate seats can be obtained by e-mailing Jennifer Rowan at jrowan@uic.edu.
Complete the nomination petition, including a personal statement and the name
and signature of ten endorsers who are APs. Fully completed petitions must be
received by noon on Wednesday, March 13. Send your completed packet for the
Senate to Jennifer Rowan, Office of
the Vice Chancellor for Research, 310 AOB, MC 672. For information, e-mail jrowan@uic.edu. Send your completed packet for
APAC to Ahlam Al-Kodmany, Institute
for Health Research and Policy, MC 275. For information, e-mail ryyan@uic.edu.
ELECTION BALLOTS will be available on the APAC website (www.apac.uic.edu).
SUAA Aims to Help University Employees, As Well As Retirees
THE STATE Universities Annuitants Association (SUAA) was founded in 1971 to advocate for current employees, retirees, their spouses, and their survivors who either are or will be receiving benefits from the State Universities Retirement System (SURS). Advocacy includes earned pension, healthcare benefits, and issues related to higher education, as well as promotion of the general well-being of the 208,000 SURS participants and beneficiaries.
SURS IS a pension system that is regulated by the State Legislature, State statutes, and laws. The pension system cannot advocate on behalf of its members, however it does work to provide clarification and technical support to policymakers, such as members of the General Assembly, the Governor, and others. Therefore, “SUAA works closely with SURS so that we can advocate effectively on behalf of the individuals,” said Linda Brookhart, executive director of the SUAA.
MEMBERS OF SUAA are represented by those who are currently working for, as well as those who are retired from, community colleges and State-supported universities such as UIC. If someone is a member, participant in, or beneficiary of a pension from SURS, then he or she can join the SUAA.
“MEMBERSHIP IS quite diverse as SUAA represents everyone from Civil Service employees through administration,” Brookhart explained. “Those who have chosen careers as lawn maintenance personnel, cooks, faculty administrators, presidents— everyone is included in SUAA’s representation.”
SUAA continually keeps its members updated as to legislation that would affect them. SUAA advocates on all employees’ behalf to represent them at the Capitol. SUAA is “not to be confused with a union’s presence,” Brookhart said. “Our message and our lobbying tactics tend to be much different, and our approach is also distinctive.”
SUAA believes that most of the adverse State legislation is aimed at those who are currently working. It began particularly for those employees who were hired after January 1, 2011. “Legislation will need to be passed to correct the wrongs of their current benefits, which do not equal Social Security benefits,” Brookhart said of the more recent hires, whose benefits are lesser than those of University employees hired in 2010 and before.
SENATE BILL 1, which currently is in the Senate Executive Committee, if enacted into law would cause those who are currently working to decide between access to health insurance but a cut of 50% of retiree Cost of Living Allocation (COLA) or a cut based on the Consumer Price Index, whichever is less, at a simple interest; or the current 3% COLA, but with no access to State-funded health insurance. If someone chooses the 3% COLA, then no raises while employed would count toward his or her pension allocation. If a person chooses health insurance and half of the COLA (or Consumer Price Index figure), then raises would be counted toward pension allocation.
“THESE ARE tough choices, especially if such legislation were found to be constitutional,” explained Brookhart. “There is no incentive to continue to work at a community college or State- funded university. People who can make choices as to where to work will find private sector employment more inviting than public sector employment.”
LEGISLATION TO abolish tuition waivers for employee dependents also has been introduced--again. “During the past several years, SUAA has been instrumental in defeating these legislative proposals,” Brookhart said. “SUAA became the voice in the Capitol for those who are currently working.”
EMPLOYEES WHO would like to join the SUAA should visit www.suaa.org for more information. The dues for UIC are $39, $9 of which are allocated to the UIC Chapter and $31 to the State SUAA office. Employees can have payroll deductions, pay by check, or go on-line to the SUAA website to pay by credit card.
APAC PROFILE
Teresa Soto-Plutz is Liaison Between APAC, Chancellor
By Lucia Gonzalez
By Lucia Gonzalez
TERESA SOTO-PLUTZ, Assistant to the Chancellor and Assistant
Director for Government Affairs, is the liaison between Chancellor Paula Allen-Meares and APAC.
SOTO-PLUTZ’S duties in the Office of the Chancellor
include managing and coordinating the Chancellor’s schedule, such as preparing
for her meetings, speaking engagements, and travel. She also serves as the
Chancellor’s liaison to colleges, administrative offices, external constituents,
and government agencies. Many of Soto-Plutz’s duties involve assisting the
Chancellor with issues that require confidentiality, discretion, and
troubleshooting.
HER POSITION also puts Soto-Plutz in the role of serving as
an intermediary between the Board of Trustees and the Chancellor on various
issues and inquires. She also communicates with the Office of Government
Relations on any campus inquiries, complaints, press events that involve
elected officials, and legislative hearing preparation.
“IN MY 24 years at UIC, this has been the most
exciting time for me,” said Soto-Plutz. “Every day is unique, demanding,
stressful, and exciting— all at the same time. The most fulfilling part of my
job is showcasing all that the campus has to offer to external constituencies.”
FOR MORE information, contact Soto-Plutz at (312)
413-3350 or e-mail teresas@uic.edu.
Attendance at Campus-Sponsored Events Allowed
 |
Among the benefits of
working at a UIC is the opportunity to attend seminars and workshops.
|
THOUGH MANY events are scheduled during lunchtime or after traditional work hours, other offerings occur during regular working hours. As a reminder, approval protocols have been outlined to allow members of the UIC community to attend events without interfering with the functioning of each unit. Policy 805-03 applies “to all UIC employees.”
THE POLICY specifically provides: “Employees may
be released from work without loss of pay to attend such events and meetings
whenever operations permit. As long as supervisors receive adequate notice of
such approved events and meetings and coverage can be arranged, every effort
should be made by departments to release employees to attend.”
EACH UNIT’S needs are unique, as are the interests of every staff member. Regardless of the event, department supervisors are responsible for determining if release time should be granted for any particular event. Employees should take care to obtain prior authorization to attend campus sponsored events. It is the supervisors, discretion to determine if attendance at a campus sponsored event is appropriate based on the operational needs of the unit.
YOU CAN read the entire policy on the UIC Human Resources website at http://www.uic.edu/depts/hr/relations/policies_procedures.shtml
EACH UNIT’S needs are unique, as are the interests of every staff member. Regardless of the event, department supervisors are responsible for determining if release time should be granted for any particular event. Employees should take care to obtain prior authorization to attend campus sponsored events. It is the supervisors, discretion to determine if attendance at a campus sponsored event is appropriate based on the operational needs of the unit.
YOU CAN read the entire policy on the UIC Human Resources website at http://www.uic.edu/depts/hr/relations/policies_procedures.shtml
AP RESOURCE SPOTLIGHT
State Employment Webinar for Persons with Disabilities Set
THIS WEBINAR will provide information for persons with disabilities seeking employment with the State of Illinois. Presentations will be made by the Illinois Department of Employment Security regarding the Illinois Job Link program, Central Management Services regarding the Successful Disability Opportunities (SD) Program, and the Department of Human Services Division of Rehabilitation Services regarding client services. The DHIC is partnering with public libraries, centers for independent living, State universities, and veterans organizations to provide persons with disabilities a venue for participating in the webinar.
ACCESSING THE webinar will require an Internet connection via a computer, laptop, etc. If you or someone you know is interested in participating, send an e-mail to Susan.Allen@illinois.gov and you will be contacted with a list of requirements for participating in the webinar, login instructions, and promotional materials.
BENEFIT BEAT
APAC WILL sponsor an interactive workshop on resume writing. Learn about resume formats and styles, and find out what to include in your resume and how to make it stand out in the crowd.
PRESENTER IS Laurie A. Schellenberger, Human Capital Development Coordinator, UIC. Date is Thursday, March 7, from noon to 1.30 p.m. Location is 1040 W. Harrison, EPASW (Engineering, Performing Arts & Social Work) Building (#623) Room 4013 (4th. floor). Register at https://illinois.edu/fb/sec/5471335
BRING YOUR resume and plan on making notes and comments on how to improve it. Seating is limited. Please register and send in any questions you might have by Wednesday March 6, so we can bring some answers for you.
THE CONTINUING CRISIS
 |
State Senator Daniel
Biss and State Representative Elaine Nekritz.
|
NEKRITZ-BISS-Civic Committee pension bill unconstitutional? See UIC Retirement Matters, Feb. 8: http://uicretirement.blogspot.com/.
THE UNIVERSITY Institute of Government and Public Affairs compares Illinois’s and California’s budget situations: http://igpa.uillinois.edu/fiscalfutures/CAvsIL.
REPRESENTATIVE LOU LANG calls for permanent tax increase to fund pensions. See State Journal-Register of Feb. 20: http://www.sj-r.com/carousel/x930802728/Lang-Make-income-tax-increase-permanent-dedicated-to-pension-payments/.
Vol. 6, No. 2 February 2013
ISSN 1946-1860
Editor: William S. Bike
Staff: Lucia Gonzalez, Gail Mansfield, Monica M. Walk
Vice Chair: Ahlam Al-Kodmany
Chair: Michael Moss
Secretary: Mary Berta
Treasurer: Virginia Buglio
Web Chair: Jeff Alcantar
Web Chair: Jeff Alcantar
January 27, 2013
Insurance Payment Delays Causing Hardships for UIC Employees
MARIA MORALES’ daughter, who has GoldenHar Syndrome,
needed an ocular prosthesis at a cost of $2,200. Morales, Associate Director in
the Office of Student Financial Aid, promptly paid the portion she owed after
insurance, $840—but the doctor refused to give her daughter the eye until full
payment was received from the insurer.
FACED WITH the choice of letting her daughter go
without her prosthetic eye for the better part of a year, Morales paid the
entire $2,200 out of pocket…then waited nine months for the Quality Care Health
Plan (QCHP) to reimburse her.
MORALES IS just one of the thousands of UIC
employees whose physical, financial, and emotional well-being is being
compromised by the State of Illinois’ budget disaster. Without sufficient
revenue flow to pay its bills, the State is floating QCHP and Quality Care
Dental Plan (QCDP) payments to healthcare providers and patients for month
after month after month. The result: compromised credit scores, provider
demands for payment in advance of services, unnecessary interest charges to
both providers and patients, and useless Flexible Savings Plan (FSA) dollars.
301 days behind
“THE DELAY in payment of QCHP and QCDP claims by
the State is a concerning and ongoing issue,” said Katie Ross, Director
of Human Resources Administration from University Human Resources. “Due to its
economic situation, the State does not have sufficient funds to maintain a
timely and regular payment schedule.”
TO HELP keep State employees informed, the
State’s Department of Central Management Services (CMS) created a
website—updated frequently—to provide the date of claims currently being paid
for the Quality Care health and dental plans, Ross noted. Visit http://www2.illinois.gov/cms/Employees/benefits/Insurance/Pages/QCHPQCDPClaimPaymentDelay.aspx,
or access the site from NESSIE.
ACCORDING TO a statement on the site, “The State of Illinois is facing a difficult
and unprecedented funding situation which has significantly impacted the State
Employees' Group Insurance Program through the delay of claim payments under
the Quality Care Health Plan and the Quality Care Dental Plan…Funding
availability is based on State revenue, which fluctuates from month to month.
“AT THIS time funds remain insufficient to pay
claims on a normal schedule, and we cannot estimate when a regular payment
schedule will resume. Claim payments will be released according to the claim
process date and available funding. CIGNA, the claims administrator, continues
to process claims in a timely manner, but release of claims must be held until
revenue is available. Late payment interest is paid to healthcare providers on
health claims that take longer than 30 days from the receipt of a complete
claim submission to pay.
“IF YOU decide to make arrangements with your
out-of-network provider to pay the outstanding balance or establish a payment
plan, your provider should reimburse you after they receive payment from CIGNA.
It is your responsibility to make reimbursement arrangements with your
provider.”
AS OF January 24, claims processed through
March 29, 2012, have been released to QCHP-contracted providers: a whopping 301
days’ delay. Claims processed through February 2, 2012, have been released to
non-QCHP-contracted providers.
A CIGNA representative reported on Jan. 3 that
there was “a 43-week hold on checks” from CIGNA to State of Illinois employees.
THE SITE also provides a client services
feedback form that invites users to send messages describing how the delay in
claims payment is affecting them, as well as contact information for questions.
“We encourage employees to use these mechanisms to provide feedback and seek
assistance with concerns about delayed payment,” said Ross.
Credit ratings in
distress
MULTIPLE STAFFERS report having their credit endangered
or actually damaged due to the State’s late payments. One employee who asked to
remain anonymous received a call from the provider asking her to pay her $8,500
hospital bill. She contacted an insurance representative and was told they
probably would not pay the bill until seven to eight months after her hospital
stay. The insurance rep “told me the provider would place my bill with a
collection agency, which will eventually affect my credit rating,” the employee
relates. “Well, it did. What am I supposed to do?”
“IT’S CRAZY that I have to call doctors and
explain that although my insurance will pay in full, I need to make payments of
$100 a month to stop my bills going to collections,” said Eric, an employee who asked that his last name not be used.
“I HAVE doctors chasing me around because the
State is taking so long to pay the bills,” said Alexander Schilling, Director of the Research Service Facility-Mass
Spectrometry, Metabolomics, and Proteomics, in the Research Resources Center.
“Clearly, if doctors are pursuing collection, my credit rating may be damaged
due to the State’s irresponsibility.”
ALTHOUGH UIC employees are holding up their end of
the benefits bargain, the Illinois General Assembly is reneging on its
commitments, Schilling said. “I paid my premium; they should pay the bills once
they agree to cover them,” he continued. “Doctors who provide good, timely
medical treatment do not deserve to have cowardly politicians try and balance
the State’s books on their backs.”
ONE HOSPITAL employee who wanted to remain
anonymous said she has paid some of her children’s dental bills up front “just
to keep in good standing with my dentist, who has been very patient in
waiting,” she said. “The turnaround time for payment has been as much as 200
days.”
ROBERT E. LARSON, Assistant Director for Architectural Services
in the Office for Capital Programs, said he paid a bill for an ER visit to
avoid having it sent to collections. “My dentist now wants cash up front from
patients with our State dental insurance,” he added, describing another
situation State employees are facing: healthcare providers’ demands for payment
at the time of services.
Patients, produce the
cash
NICK ARDINGER’S dentist was paid for his last checkup
and cleaning just before Ardinger arrived for his next visit…six months later.
“As a result, my dentist now requires us to pay the whole amount and get
reimbursed ourselves,” said Ardinger, Assistant Director for Marketing, Campus Housing.
OVER THE decade in which Darlene Peters’ family has been visiting its dentist, “he has been
very willing to provide services and wait for reimbursement from our insurance
company,” said the former employee in Interventional Radiology. “That all came
to an end last summer when I became my family’s primary insurer.
“WHEN A family of five goes to the dentist
and gets the routine cleaning, X-rays, fluoride, etc., it can be very
expensive,” Peters continued. “I was shocked to learn the bill was close to
$3,000 after a few fillings were added. When the dental office contacted our
insurer and found out the payment would take almost nine months, they asked me
to pay up front. This was obviously a shock to me.”
FRUSTRATED BY endless delays in payment, some
providers have even closed the door to State-provided insurance. “My
primary-care physician stopped accepting my insurance because he could not
afford to wait,” said an employee who wished to remain anonymous. “This reduces
the likelihood of my using his services, since I essentially would have to
become a claims specialist to file the claims myself.”
SLOW PAYMENTS also translate into interest charges
for some patients, a circumstance that Joan
Johnson, Financial Aid Counselor in the Office of Student Financial Assistance,
finds unfair. “I was surprised to find that my family is charged interest on
our dental statements, because there are always outstanding charges hung up in
the bill payment rotation with Delta Dental,” she said.
“BECAUSE OF this backlog in charges, we pay a
combination of uncovered fees and interest on the charges delayed by late
insurance payments. That causes us to pay more for dental services, and that’s
not right.”
Rendering FSA tax savings
useless
JENNIFER ROWAN, Assistant to the Director in the Office
of Research Services, noted that extreme delays in payment also make it
impossible for employees to take advantage of the pretax savings in their FSAs.
“Because it takes CIGNA so long to pay, the flexible spending year has usually
ended,” she explained.
“EXAMPLE: I go to the doctor in April, and they
pay my doctor the following February. Since the service took place the previous
April, it falls into that year’s flexible spending period, but I can’t submit
my portion of the charges to the FSA since I received the final amount I owe
outside of the service year.”
CINDY LEDONNE, Assistant Director of the Clinical Performance
Center in the Department of Medical Education, had several substantial bills
processed so late that she couldn’t retrieve money from her FSA for it. “I had
to cover it with post-tax dollars, and that can add up pretty quickly,” LeDonne
said. “After five years of employment, this situation
has added up to several hundred dollars I've had to pay in taxes--money that
should have been spent on living expenses and not taxes. It's very frustrating
and there are no signs of improvement.”
VIVIANA KABABBE-THOMPSON, Academic Advisor in the Department of
Kinesiology and Nutrition, has seen a six-month plus delay in payment of her
dental bills, and watched as her annual physical took 11 months to be paid.
Still, she counts herself among the lucky ones. Kababbe-Thompson is in good
health—“I don’t expect any large costs, but feel bad for others who might have
more health issues and as a result have larger issues with bills and planning
for bills,” she said—and she has the option of switching to her husband’s
insurance.
THOUGH IT will cost the couple more in
insurance costs, “I hope to change insurance plans to my husband’s, which is
reliable and hopefully less complicated,” she said.
MEANWHILE, UIC employees without the option of using
their spouses’ or partners’ insurance struggle on, wondering when—and if—their
healthcare bills will be resolved.
“I WONDER if it’s even worth it for us to have
insurance?” said Carol Fendt, Co-Director
and Senior Researcher, PRAIRIE Group, who has more than once waited in excess
of six months for reimbursement. “Why am I paying monthly for a service I’m not
receiving, and, with the state of our State, for which I’m likely not going to
receive reimbursement?
“I’M BEGINNING to think I’ll see healthcare reform
before I see the State pay its bills.”
With significant
interest
THE STATE does pay its bills—but so late that
it has to pay interest, too.
“THE FACT that the State is in fact paying 9%
interest on the delayed payments concerns me also as a taxpayer,” Schilling
said. “It would clearly be cheaper for the State to at least float a bond
(easily at less than 3% yield in today's bond market) to clear the backlog
rather than pay such an exorbitant interest rate. It isn't just employees who
suffer—it’s the taxpayers also.
“CLEARING THE backlog does not solve the budget
shortfall going forward, but at least it clarifies the problem to one of
ongoing expenses and revenue and saves the taxpayers some money right now,”
Schilling concluded.
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 Feb. 13 in Room 5175 of the College of Medicine Research Building.
For information, call (312) 996-0306.
BENEFIT BEAT
ARE YOU an AP who also is a UIC student, or do
you have a dependent who is a UIC student? Then contact the Office of Special
Scholarship Programs (OSSP). See http://www.uic.edu/depts/oaa/ssp/.
OSSP
ASSISTS current UIC undergraduate and professional
school students in searching and applying for nationally competitive
scholarships, fellowships, and external scholarship awards. The office provides
information about available awards, advice on application preparation, and
assistance throughout the scholarship application process. The office’s services are available to current UIC
undergraduates and graduate/professional students only.
THE
OFFICE does not
simply provide a list of awards. OSSP helps people present themselves clearly
and effectively for awards that best suit their needs. The office can offer
guidance on communication about academic achievement, co-curricular
involvement, life experiences, and financial need. Individuals are welcome at
any point in their degree program, and are encouraged to plan ahead to prepare
the strongest possible scholarship applications.
FOR
MORE information,
contact OSSP at 2506 University Hall, 601 S. Morgan St. (MC 115), Chicago, IL
60607, (312) 355-2477, fax (312) 355-1233. Director Beth Powers can be contacted at bpowers@uic.edu.
AP RESOURCE SPOTLIGHT
REGISTRATION
IS available for instructor-led learning opportunities from UIC Human
Resources Organizational Effectiveness in February:
BUSINESS
WRITING Fundamentals is a three-hour course for employees interested in a
refresher on basic writing rules. This course is full of activities designed to
provide guidelines for planning, organizing, drafting, and editing documents.
Target audience: All UIC employees. Friday, Feb. 8, 9:30 a.m. to 12:30 p.m.
STRUCTURED
BEHAVIORAL Interviewing is packed with information for those who hire to apply
immediately in their effort to select best-fit job candidates. Target audience:
Employees responsible for conducting job interviews. Monday Feb. 11, 1:30 to
4:30 p.m.
CUSTOMER
SERVICE Fundamentals discusses the elements of good customer service that can
make a difference in the workplace. The interactive, instructor-led course
explores the impact of customer service at UIC and provides information on
actions that can be taken to exceed customer expectations. Target audience: All UIC employees. Friday, Feb. 22, 9:30 a.m.
to 12:30 p.m.
RESULTS
ORIENTED Communication is a half-day course designed to provide tools and
techniques to encourage communication that will position managers to achieve
results in the workplace. During this session, building credibility, delivering
clear and concise guidance to teams, and focusing on the end goal before
crafting messages will be explored. Target Audience: Supervisors, managers, and
those wishing to enhance their communication skills to achieve targeted results
in the workplace. Tuesday, Feb. 26, 9:30 a.m. to 12:30 p.m.
LEADERSHIP
ESSENTIALS is a two-day workshop designed to provide new managers and
supervisors with information required to function in their role more
effectively. Cost: $200. Target audience: Supervisors and managers. Wednesday,
Feb. 13, & Wednesday, Feb. 20, 9 a.m. to 5 p.m.
REGISTER
FOR the above sessions by visiting the MyCareer website:
www.uic.edu/depts/hr/mycareer/. Select UIC Training Providers on the left
navigation menu and select view listings under UIC-HR for all courses
provided by Human Resources and Organizational Effectiveness, and then click
the register/view link under the course name to register.
THE CONTINUING CRISIS
 |
| Ralph Martire, executive director of the Center for Tax and Budget Accountability, offered a pension fix idea. |
HERE’S AN actual, honest-to-goodness pension
fix. See Crain’s Chicago Business, Jan.
16: http://www.chicagobusiness.com/article/20130116/OPINION/130119858/heres-an-actual-honest-to-goodness-pension-fix.
Vol. 6, No. 1 January 2013
ISSN 1946-1860
Editor: William S. Bike
Staff: Lucia Gonzalez, Gail Mansfield, Monica M. Walk
Vice Chair: Ahlam Al-Kodmany
Chair: Michael Moss
Secretary: Mary Berta
Treasurer: Virginia Buglio
Web Chair: Jeff Alcantar
Web Chair: Jeff Alcantar
December 16, 2012
New Pension Plan Being Considered by General Assembly
 |
State Representatives
Elaine Nekritz and Daniel Biss.
|
THE BILL introduced by State
Rep. Daniel Biss (D-Evanston) and
State Rep. Elaine Nekritz
(D-Northbrook), would:
• Create a new 30-year
pension payment plan, making the State pay its employer share with a new funding
right that can be enforced through court action.
• Allow cost-of-living
pension increases only for the first $25,000 of an employee's pension.
• Increase employees'
retirement age from one to five years, depending on their current age.
• Increase employees'
pension contributions.
• Place new hires in a
cash balance plan that combines features of defined contribution (or 401(k))
plans and defined benefit plans.
• Further limit
legislators' pension increases.
• Gradually shift
teacher pension costs from the State to the school districts that determine
salaries.
• Further pay down
pension debt with revenues freed ups when existing pension obligation notes are
paid off.
BISS AND Nekritz are calling
for action before the current Legislature's term ends on Wednesday, Jan. 9.
•
A plan that includes State-sponsored retiree health care and lower annual cost
of living increases than those now offered. The COLA would start at age 67 or
five years after retirement, whichever occurs first; it would be the lesser of
three percent or half the consumer price index, calculated on the original annuity.
•
A plan that offers the same annual cost of living increases now available, 3
percent annual COLA on a compound interest basis, without participation in the
state-sponsored retiree health care program.
THE PROPOSED legislation would not increase the pension contribution by
employees or change the effective retirement age. However, it would essentially
force employees to choose between health care benefits or the current COLA.
SEE ALSO State
Journal-Register, Dec.
4: http://www.sj-r.com/thedome/x1156351407/Details-emerge-on-new-pension-plan?zc_p=0.
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