Spring 2012 Legislative Update
The following information provides an overview of actions taken during the spring 2012 Legislative Session in Springfield.
Legislative Actions
Constitutional Amendment question will appear on
November 6 Ballot
Voters in the November 6 election will decide if a 3/5 vote of the Illinois legislature or local governments should be necessary to adopt any benefit increase for any state pension or retirement system. The Amendment would be adopted if 3/5 of voters cast yes votes on the question or if a majority of voters approve the measure.
Law grants TRS $2.7 Billion for 2013 Fiscal Year
Public Act 097-0685 grants TRS $2.7 billion and awards CTPF $10.9 million. Chicago's teachers receive less than a penny for every dollar the State spends on downstate and suburban teachers' pensions.
Click here to read more about fair funding.
Spring Legislative Success
SB 3597 CTPF Return to Work legislation currently waits for the Governor's signature. This bill outlines the return to work rules for members who seek CPS re-employment.
The legislation was sponsored by Senators Iris Y. Martinez (D) and William Delgado (D), and Donne Trotter (D), and Representatives Kelly Burke (D), Kimberly du Buclet (D), Esther Golar (D), Linda Chapa LaVia (D), and Monique D. Davis (D).
Summary: The legislation provides that a retired teacher may return to CPS employment on a temporary and non-annual basis or on an hourly basis without loss of pension, so long as the person (1) does not work as a teacher for compensation on more than 100 days in a school year and (2) does not accept gross compensation in a school year in excess of an amount that would be paid for 100 days of employment at the rate for a day-to-day substitute teacher.
Members who retire with at least 5 years of service as a principal may work up to 100 days at the daily rate normally paid to retired principals.
CTPF is currently revising the return to work process and will provide more information to members once the bill is signed into law.
Spring Advocacy and Education Efforts
Pension Law and Rules Committee Roundtable Meetings
CTPF has sponsored monthly round table meetings where stakeholders from the Chicago Teachers' Union (CTU), Retired Teachers Association of Chicago (RTAC), Chicago Principals and Administrators Association (CPAA), and the Chicago Board of Education (BOE) have come together to find common ground and strategize on efforts to educate the members, legislators, and the public about CTPF pensions and legislative priorities.
The committee will continue to meet over the summer with public meetings scheduled in the CTPF office on Thursday, July 12 and Thursday, August 9.
Member Education and Advocacy Web Page
This past January, CTPF launched its Education and Advocacy Web Page. This page serves as a clearinghouse for information about legislation and actions that may impact CTPF members.
Documents for Member Education
These documents are designed to educate CTPF members about the fund's current financial situation and legislative priorities.
- CTPF Member Education - This document offers basic facts and information about CTPF along with an overview of the fund's legislative priorities.
- Pension Reform Comparison - This document makes a side-by-side comparison of reform plans proposed by Governor Quinn and Mayor Emanuel.
- HB 4246 Fact Sheet - This is a summary of an important bill which requires the state of Illinois to pay the certified normal cost for CTPF, appropriate $191 million for CTPF in 2013, and holds CPS accountable for an annual contribution that will bring CTPF's unfunded liability, currently $6.8 billion, down to $0 by 2059.
Documents for Advocacy Efforts
These documents are designed to be shared with legislators and policy makers.
- CTPF Leave Behind document for legislators and policy makers. This document offers a summary of facts about CTPF along with legislative priorities. It's designed to be used in a meeting with legislators or policy makers.
- Fair Funding Flyer - This publication illustrates the inequity in State funding and the need for fair funding for CTPF pensions.
Spring Event
May Lobby Day - May 16 CTPF participated in a joint lobby day effort with the Chicago Teachers Union, the Retired Teachers Association of Chicago, and the Chicago Principals and Administrators Association. The union offered transportation and support to members who traveled to Springfield to call attention to the issue of fair funding for CTPF pensions. Two buses of retirees and active members participated in the event and many members met with their individual legislators during the day.
Testimony
Executive director Kevin B. Huber offered testimony in subject matter hearings before the Illinois Senate Pension and Investments Committee on April 18, 2012, and before the Illinois House of Representatives Personnel and Pensions Committee on May 8, 2012.
Click here to read the House Testimony
Click here to read the Senate Testimony
This testimony explained in detail why our funding ratio has eroded over the past 10 years, offered information about legislation CTPF supports to correct the decline, and made the case for fair funding for CTPF.
Review of 2012 Legislative Priorities
CTPF lobbied for and supported the following legislative priorities in the spring 2012 General Assembly. Click here for additional information on these bills or visit our education and advocacy web page.
CTPF will continue to advocate for and support these types of legislative measures throughout the fall veto session and in future legislative session.
Increase State appropriations to CTPF to $191 million in 2013.
HB 4246, Amendment 1, Sponsored by Representatives Barbara Flynn Currie (D), Monique D. Davis (D), and Mary E. Flowers (D)
Eliminate the employer's practice of offsetting State of Illinois contributions.
HB 5334 sponsored by Representative Thaddeus Jones (D)
SB 3632 sponsored by Senator Kwame Raoul (D)
Increase State of Illinois contributions to CTPF.
HB 5232 sponsored by Representatives Monique D. Davis (D) and Thaddeus Jones (D)
SB 3628 sponsored by Senators Kwame Raoul (D) and
Iris Y. Martinez (D)
Increase FY 2013 CPS contributions to CTPF.
HB 5333 sponsored by Representative Thaddeus Jones (D)
SB 3742 sponsored by Senators Kwame Raoul (D) and Iris Y. Martinez
Provide an annual adjustment to the retiree healthcare
spending cap.
HB 5520 sponsored by Representative Daniel J. Burke (D)
SB 3598 sponsored by Senator Iris Y. Martinez (D)
There are many acronyms used to name pension funds and related topics. Here's a quick review of some of the most common:
