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Educational Pension Plan Information

What do YOU need to know?

  • TRS, SURS, and IMRF are Defined Benefit Plans – Protect them.
  • Defined Benefit plan – your retirement benefit is defined for LIFE (predictability)
  • Defined Contribution plan – (similar to a 401(k) plan) – your retirement benefit is determined by your ability to invest in tumultuous markets! Imagine retiring on a 401(k) in 2009 without social security benefits, as teachers receive none.

Other information/updates on pensions and pension systems:

Illinois Teachers Retirement System (TRS)
TRS is a public pension plan for Illinois public school teachers and administrators.

State Universities Retirement System of Illinois (SURS)
SURS serves a diverse group of employees with occupations ranging from professors and teachers to clerical, building service workers, groundskeepers and provides retirement, survivor, disability, and death benefits to over 212,000 members throughout the world.

Illinois Municipal Retirement Fund (IMRF)
IMRF has provided employees of local governments and school districts in Illinois (with the exception of the City of Chicago and Cook County) with a sound and efficient system for the payment of retirement, disability, and death benefits.

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Educators and school officials urge lawmakers to pass Gov. Quinn’s budget plan

MAY 14, 2014 BY IEA COMMUNICATIONS

moneyLeaders of the state’s top education employee unions have joined with school administrators to urge members of the Illinois legislature to pass the governor’s recommended budget.

The Illinois Education Association (IEA), the Illinois Federation of Teachers (IFT) and the Illinois Statewide School Management Alliance are backing the governor’s plan, which calls for keeping the state’s individual income tax rate at its current level of 5 percent.

Maintaining the current tax rate would allow the state to reach the highest funding levels for education in Illinois history, including an increase in Monetary Award Program (MAP) grants for college students in need and a $100 million increase in funding for early childhood education.

While this increased funding alone is a good start, extending the income tax rate would allow the General Assembly to fully fund General State Aid for education.

“The governor’s plan protects schools from devastating budget cuts that would result in thousands of teacher layoffs, overcrowded classrooms and program cuts that hurt children everywhere,” said IEA President Cinda Klickna. “To get Illinois back on track, legislators need to support our schools by passing the governor’s plan.”

“We often talk in abstract terms about doing what’s right for our kids, but this week, legislators have a concrete opportunity to do just that when Governor Quinn’s recommended budget proposal comes before them. The Illinois Federation of Teachers strongly supports this plan to increase funding for our students from their first day of school through their last day of college,” said IFT President Dan Montgomery. “No one wants to see more radical cuts to education, but that’s what we face if we don’t address our serious challenges with serious investment in a solution.”

According to school administrators, the recommended budget is necessary to stabilize school districts across the state.

“Many of our schools are heavily dependent on state aid, and they are struggling financially to continue to provide top-notch educational opportunities for children all across the state,” said IASA Executive Director Brent Clark, speaking for the Illinois Statewide School Management Alliance, which includes the Illinois Association of School Administrators (IASA), the Illinois Association of School Boards (IASB), the Illinois Principals Association (IPA) and the Illinois Association of School Business Officials (IASBO).

“All over the state, schools are being forced to cut music, art, extracurricular activities and reduce teachers and staff. There is nowhere left to cut but in the core educational programs. Without this recommended budget, nearly all school districts in this state would suffer even more, and the situation for many school districts in Illinois could be catastrophic. Investing in the education of our children is the best investment Illinois could make for the future of this state,” Clark said.

The Illinois Education Association is made up of more than 130,000 education employees, retired educators and students planning to become teachers. Find out more about IEA atwww.ieanea.org.

The Illinois Federation of Teachers is made up of more than 100,000 teachers and staff in PreK-12 school districts, higher education professionals, public employees and retirees throughout Illinois.

Illinois Association of School Administrators is the premier statewide organization representing school administrators. IASA policies are guided by its vision statement “Maximum Educational Success for All Students.” Find out more about IASA at www.iasaedu.org.

Illinois Association of School Boards is a voluntary organization of local boards of education dedicated to strengthening public schools through local citizen control. The mission of IASB is excellence in local school governance in support of quality public education. Find out more about IASB at www.iasb.com.

The Illinois Principals Association represents more than 4,700 principals, assistance principals and building leaders. The mission of the IPA is to advance learning through effective educational leadership. Find out more about IPA at www.Ilprincipals.org.

Illinois Association of School Business Officials is devoted to the school business management profession. IASBO’s mission is to provide members and stakeholders with a comprehensive range of professional development activities and services through networking and participation. Find out more about IASBO at www.iasbo.org.

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Pension Update

Circuit Court stays PA 98-0599, including IMRF-related provisions

The Seventh Judicial Circuit Court of Sangamon County on May 14, 2014, ordered a temporary stop to Public Act 98-0599, the pension “reform” legislation signed by the governor in December 2013.

IMRF was not included in the provisions of PA 98-0599 that alter benefits for current members and retirees of the state-funded systems. However, some provisions of the law do affect future IMRF members. The Circuit Court judge’s order halts the implementation of these IMRF-related provisions, possibly until the Illinois Supreme Court rules on the constitutionality of the entirety of PA 98-0599.

The IMRF-related provisions were announced by IMRF inGeneral Memo 645 on December 16, 2013. In summary, the law stops future members from applying lump-sum payments for sick leave or vacation time toward pensionable salary, and from converting unused, unpaid sick leave to service credit. The legislation also stops future employees of certain instrumentalities from participating in IMRF. These IMRF-related provisions were all included in the judge’s stay order.

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Summary or IEA Board Meeting May 16-17, 2014

ACTION ITEMS
– Celebrated victory of pension injunction!!!

– Elected IEA Executive Committee
Annice Brave (6), Deb Klausing (4), Kiim Dwan- Collins (37), Dan Hile (8), Kari Vanderjack (28), Janet Kilgus (Retired), Eric Brown (41, NEA Director seat), Kathy Jesuit (35, ESP seat), Elston Flowers (62, Ethnic- minority seat), Beverly Stewart (67, Higher Ed seat).  Officers: Kathi Griffin, Al Llorens, Cinda Klickna automatic seats.

– Elected IPACE Committee
Elston Flowers (62), Eileen Darin (56), Bryce Cann (50), Holly Smigelski (60), Janet Kilgus (Retired)

– Approved two nominations to submit to ISBE for the Licensure Board: ShiAnne Shively (5) and John Stosky (6)

– Approved support of Natalie Copper for reelection to the IMRF Board

– Approved changes to the Election Handbook and Election calendar (handout distributed)

– Approved Committees and assignments (booklet distributed)

– Approved Bargaining Team
Ken Swanson (chair), Kathi Griffin, Al Llorens, Cindy Ludden (22), Mona Johnson (30), Cathy Stewart (1), Wendy Adams (45), Debra Ward- Mitchell (27).

– Approved amendment change to the PSRP ( handout distributed)

– Approved name change of McHenry Elementary Education Association (Region 23)

– Approved chartering of new local, Altamont ESP (Region 3)
– Approved changes to Board Policy

DUE DATES/FORMS/ DISCUSSIONS/ ANNOUNCEMENTS
–  Voucher rules and forms to be distributed to delegates ( handout)

– Annual Disclosure Form – (distributed) – all Board members MUST complete, sign and return to Jamie Schumacher at IEA. By May 30.

– Application (distributed) for current and past local or region for the new Treasurer Support Committee.  Submit to Al Llorens or Doug Barringer. Due July 15.

– GPA selection – Due July 7.

– Continue gathering input from members regarding candidates for Governor.  IPACE will be interviewing June 6-7.

– SLA Board Retreat July during SLA – please make every effort to attend.

– Announced resignation of Vickie Mahrt as NEA Director as of July 15. Board will appoint replacement at SLA retreat

PRESENTATIONS
– polling data on primary election
–  legislative update
– financial findings from select survey of locals – charges for Internal Ops will be to review and determine appropriate board policies
– new “call center” plans
– NEA RA logistics – including new Colorado marijuana rules.
Continue to watch for RA updates from Tim Crawford.

Recognized retiring Board members for their service
Vickijo Almgreen (43), Joyce Bailey (39, NEA Director), Cindy Mickle (45), Monica Freaner (16), Don Hagemaster (26),  Beverly Love (2), Linda Lucke ( 60), Cindy Ludden (22), Vickie Mahrt (NEA Director), Katie Meyers (Student chair), Nancy Miller (14), Scott Moore (64), Cathy O’Donnell (42), Sara Partridge (48), Sara Lee Pierre (38), Candis Pomykala (54), Dolph Ricks (20), Ilene Siegel (34), Jeri Stodola (39), Nancy Turner (62), Holly Veach (12), Robyn Washington (55).

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Investopedia explains ‘Self-insure’

Just another short explanation on Self-Insuring to help understand what is going to happen,

Self-insuring against certain losses may be more economical than buying insurance from a third party. The more predictable and smaller the loss is, the more likely the risk is to be retained by a self-insured person. The idea is that since the insurance company aims to make a profit by charging premiums in excess of expected losses, a self insured person should be able to save money by simply setting aside the money that would have been paid as insurance premiums.