No more pension cuts!

Illinois Governor Pat Quinn delivered his first budget address to the General Assembly on March 18. He called for a much-needed income tax increase, but asked public employees to bear the brunt of cuts to address the state's burgeoning $11.6 billion deficit.

The governor's plan proposes several changes to the state's funded pension programs- the downstate Teachers Retirement System (TRS), State Universities’ Retirement System (SURS) and State Employees’ Retirement System (SERS). The governor is asking for a two percent increase in active employee contributions with no changes in benefits and the establishment of a new lower tier of benefits for new hires. The governor's plan would require state employees to take four furlough days, and would increase health care contributions from state employees and retirees.

Write your legislators today to urge them to oppose changes to public pension systems.

Sample Letter for Campaign

Subject: No more pension cuts!

Dear [ Decision Maker ] ,

Governor Quinn's first budget address to the General Assembly called for a much-needed income tax increase, but the governor also asked public employees to bear the brunt of cuts to address the state's burgeoning deficit by proposing a number of changes to the state's funded pension programs.

Teachers and public employees are willing to sacrifice and pay their share of a tax increase, but the proposed changes to the state's pension systems impose an unfair burden on a targeted group of working families while doing nothing to solve the state's pension debt.

People on both sides of the pension issue agree that the huge deficit was caused by the legislature's failure to make the state's required pension payments over decades. Additional "pension holidays" will only compound the problem.

As participants in the state-funded pension systems, we have consistently met our obligations to pay our share. It's time for the State of Illinois to do the same.

I urge you to oppose the pension system changes.

Sincerely,

Campaign Launched:
March 30, 2009


Background Information

The following letter to the editor from IFT President Ed Geppert was sent to daily newspapers across the state on March 26:

Teacher and public employee pensions are under attack by those who believe, incorrectly, that public pension plans cost more than what private employers pay for Social Security and 401K style plans.

The facts tell a different story.

Private employers pay 6.2 percent of an employee’s salary for Social Security. The 401K Council of America’s study says many employers add an average 3 percent 401K match. That adds up to a 9.2 percent total. The state currently pays 7.98 percent of salary for the pensions systems. Actuarial studies show that percentage for all of the pension systems is dropping; by 2013 the state will be paying 7.27 percent. In 2028, the costs will have dropped further to 6.04 percent, or less than what other employers pay for Social Security alone.

State pensions systems are a better deal for taxpayers than Social Security. The financial data are clear.

So, how did we acquire $46 billion pension debt? People on both sides of the pension issue agree that the huge deficit was caused by legislators’ failure to make the state’s required pension payments over decades.

Pension benefit levels of teachers and public employees, who have faithfully paid their pension contributions, did not cause this problem. Teachers pay 9.4 percent of their salary for pensions, the second highest rate in the country. Teachers do not receive Social Security.

SO, instead of grappling with the issue of paying the debt they created, the state is now looking at a proposal to skip more pension payments now and slash benefits for future teachers and other public servants.

Teachers and public employees are willing to sacrifice and pay their share of a tax increase. All they ask is for lawmakers to make good on the pension debt owed by the state of Illinois, and not balance the budget on the backs of these working families.