CAT Tracks for May 27, 2005

Cairo Association of Teachers - Newsletter

CAT Tracks for May 27, 2005

COMPROMISE ON ERO

Just got this URGENT BULLETIN from the IEA! Haven't taken the time to read the details. However...IF you can retire in 2006 or 2007, your immediate action is necessary...if it is not already too late!!!

Spread the word!!!

May 27, 2005

IF ANY OF YOUR TEACHERS WOULD LIKE THE BENEFITS OF THE CURRENT ERO (7/20 CONTRIBUTIONS AND FREE 35TH YEAR) AND

1. HAVE NOTIFIED THEIR DISTRICTS VERBALLY, AS OPPOSED TO IN WRITING, OF THEIR INTENT TO RETIRE IN 2006 OR 2007 AND THERE IS CURRENTLY NO WRITTEN RECORD OF THAT NOTICE, OR

2. HAVE HELD OFF NOTIFYING THEIR DISTRICTS OF THEIR INTENT TO RETIRE IN 2006 OR 2007,

THEY NEED TO IMMEDIATELY EMAIL THEIR DISTRICTS OF THEIR INTENT. THIS SHOULD BE DONE TODAY IF AT ALL POSSIBLE! PLEASE GET THIS MESSAGE OUT!

* As part of the ERO bill, teachers who have notified their districts on or before the effective date of the law (which will be when the Governor signs it; possibly as early today or tomorrow) of their intent to retire using ERO and who then retire on or before July 1, 2007, will be allowed to take advantage of the current ERO (7/20) as opposed to the new ERO (11.5/23.5).

* The law requires that there must be a written record that teachers notified their districts prior to the effective date of the law.

* Written record could include such things as a dated form, letter, note, fax or email submitted by the teacher to the district, a dated form, letter, note, fax or email from the district to the teacher acknowledging the teacher’s written or verbal notice, school board minutes, or other written documentation that reflects the notification.

* The written record must show that the teacher intends to retire in 2006 or 2007.

* This means that if for some reason teachers have only verbally notified their districts of their intent to retire in 2006 or 2007 and there is nothing in writing that shows the notification has been given or teachers have not indicated that they intend to retire under ERO, those teachers will not be able to take advantage of the current ERO.

* Therefore, it is important to immediately get the message out to any of our members who have notified or held off notifying their districts of their intent to retire in 2006 or 2007 of the need to have some written record dated prior to the effective date of the law which shows they intend to retire in 2006 or 2007.

* Please do what you can to get this message out.

More details...

Legislative News
Tentative Agreement Reached on ERO and Pensions
5/27/2005
IEA representatives signed off on a tentative agreement to extend ERO for at least five more years under new conditions, to extend the current ERO to those members that are working but currently in the retirement process, and to compromised changes to the Governor's pension reforms.
Here are some highlights on the ERO and pension issues:
Cost of ERO - Funded at no cost to the State by increasing ERO contributions:
Member ERO Contribution - Increases from 7% to 11.5%.
School District ERO Contribution - Increases from 20% to 23.5%
ERO Cap - Decreased the current 30% of those eligible to 10%.
ERO Pipeline - Teachers who have already filed irrevocable election to retire in 2006 and 2007 can retire under current ERO provisions.
ERO Review - The Government Commission on Forecasting and Accountability will examine the ERO program every five-years to determine if sufficient member and employer contributions are still available to fund the program and will make recommendations for contributions adjustments to the General Assembly. If the General Assembly fails to adjust the member and employer contributions in response to the Commission, then ERO will be discontinued.
End of Career - Capped at a 6 percent threshold for cost shifting end-of-career bonuses to school districts, beginning with contracts signed after the effective date of the act.
Gifts of Sick days - Requires that the school district pay for any increase in the pension cost of gift sick days beyond what is normally earned for contracts signed after the effective date of the act. Earned sick days can still accumulate for two years of service credit.
SURS Money Purchase Plan Interest Rate Preserved - Instead of changing the Money Purchase Plan interest rate in SURS to lower benefits, the agreement gives the Comptroller's office (independent of the Governor's office) the responsibility to set the rate based on the current statutory language.
No two-tiered pension system - Instead a bipartisan task force is established consisting of one member of each caucus and the governor’s office, plus one member each from IEA, TRS, IFT, AFSCME, and SEIU to make recommendations regarding changes in the COLA provisions, normal retirement age for each system, and alternative formula issues.
Future Pension Benefits - Must contain a funding source.
Chicago Teachers’ ERO Program - Extended another five years at the option of the Chicago Board of Education.
ERO Lobbying Efforts Successful
For more than two years, IEA lobbyists and activists have sought a vote on ERO and related issues, but the Speaker has refused to move the bill until now. As the end of the legislative session and the deadline to extend ERO near, our grassroots efforts have prevailed. After countless letters, phone calls and emails, and four hugely successful lobby days, legislative leaders and rank and file legislators heard our plea.
This past week, IEA lobbyists have been working with legislative leaders on several proposals to extend ERO and stop the drastic pension reform proposals. House Republican Leader Tom Cross (R - Oswego) has been particularly helpful in keeping these issues on the table in leadership meetings as well as advocating our positions.
Thursday afternoon IEA Chief Lobbyist Rich Frankenfeld met with the Governor, Senate President Emil Jones (D - Chicago), and House Speaker Michael Madigan (D - Chicago) to reach a tentative agreement on ERO and pensions.
Compromise on Pension Reforms
The Speaker and the Governor spent the last six months calling for legislation that would reduce the ability of veteran teachers to negotiate fair salary increases. This issue was bolstered by newspaper articles highlighting large bonuses given to superintendents which significantly increased their very large pensions.
The Speaker’s and Governor’s proposal would have made school districts, universities and community colleges liable for any pension cost increases due to annual salary hikes exceeding a 3 percent limit for pay increases used in computing a member’s pension.
We strongly opposed this proposal because it would have had the effect of eliminating all end of career increases exceeding three percent.
Pension Holiday Proposed to Solve Budget
Democratic leaders have proposed a two-year "pension holiday" to divert pension payments to close the budget gap. We believe there will be one bill including the "pension holiday" with our ERO - pension proposal. This is a common legislative practice in which members are asked to vote on several issues simultaneously, allowing them to point to an issue they support even if that bill contains proposals the lawmaker does not support. While we oppose the "pension holiday" proposal, we still support the overall agreement extending ERO and protecting our negotiated salary raises.
IEA Plans Bargaining Strategy

If this ERO - pension agreement is approved by the legislature, the Governor plans to sign it into law. IEA is planning a series of statewide meetings for staff and governance to discuss the new pension provisions and its implications for local bargaining. Watch for more information on these meetings which will be held in various locations in mid-June.