President's Message cont'd

The "final rate of earnings" will be limited to $106,800, automatically increased by the lesser of 3% or one-half of the annual increase in the consumer price index-u during the preceding calendar year. The "consumer price index-u" is defined as the index published by the U. S. Bureau of Labor Statistics that measures the average change in prices of goods and services purchased by all urban consumers, U.S. city average. The new amount will be determined by the Public Pension Division of the Department of Insurance. 

Employees will continue to contribute 8% of their gross pay to the retirement system and will continue to generate 2.2% calculation for each year of service credit that is earned.

An employee with 10 years of creditable service can claim their retirement annuity at age 67.

An employee who is at least 62 years old and has 10 years of creditable service can claim a reduced retirement annuity. The annuity will be reduced by one-half of 1% for each month the employee is under age 67. Retirement benefits cannot be received earlier than age 62 for any reason. 

The act also changes the survivor‘s annuity to 66 2/3% (currently 50%) of the employee‘s earned retirement annuity at the time of death. The original annuity will increase automatically each January after granting of the annuity.

An employee who retires under one of the Illinois Public Pension Systems and is re-hired as a full-time employee under any of the covered systems will have their annuity suspended until termination. The system can recalculate the retirement annuity.  "Double dipping" is eliminated.

There you have it! What now? A series of regional meetings has begun with the goal of making SUAA and member chapters more informed and more politically effective. Some of the comments made at the Moraine Valley meeting regarding Pension Reform Public Act 96-0889 included:

* Disastrous – will be difficult to recruit and keep high quality faculty and graduate students

* R. Eden Martin and Lawrence Msall, Civic Committee of Commercial Club of Chicago spent millions on pension reform. SURS and pension systems are targets. The Commercial Club of Chicago still wants a Constitutional Convention and/or to seek changes for current employees in the courts.

* Public Act 96-0889 undercut the Illinois economy. Illinois is going backward.

* New hires will have less to spend, especially with changes in COLA.

* Know who your friends are when you vote.

* Depending on election outcomes, possible over-rides in fall legislative session.

* Illinois has missed $80 billion in payments to the pension system since 1981.

* Illinois Center for Tax and Budget Accountability reports: $80 billion in unfunded liability $5 billion in unpaid bills $13 billion deficit next year

* SUAA will create a Pension Fact Sheet.

* Tax increase is absolutely essential.

* Keep visiting legislators – "Why did you vote for reform?"

* Retirees are viewed as vulnerable, uninvolved, let someone else do it – therefore, we are under attack.

* Dick Lockhart, SUAA Lobbyist – ―We have two votes: 1 senator, 1 representative.

Your JJCAA is very active and involved. We are attending the regional meetings, will attend the SUAA Annual Meeting in Springfield on June 22-23, will continue to visit with our legislators, and will make every attempt to keep JJCAA retirees and current employees informed. What can you do – share and tell our side of the pension debacle. If you are not a member of JJCAA/SUAA, join immediately. Encourage non-members to join. Numbers count with legislators. Plan to attend the JJCAA Annual Meeting on Friday, June 25, at 9:30 a.m. in T-Building – an excellent opportunity to become better informed. Don‘t forget the JJCAA Fall Picnic on September 8th at 4:30 p.m. at Inwood Park. Have a fun, safe, and healthy summer.