Cairo Association of Teachers - Newsletter



CAT Tracks for December 18, 2008
IEA ACTION ALERT

From the Illinois Education Association...

Pension funds at risk of being consolidated!

Two weeks ago, Illinois State Treasurer Alexi Giannoulias introduced the blueprint of a proposal that would diminish the ability of Teachers' Retirement System (TRS) members to effectively manage their pension system along with their pension contributions. The proposal could hurt other state-funded systems, which includes the State Universities Retirement System (SURS). This idea is being rejected by the IEA. After reviewing a draft of the language, we are calling on every IEA member to TAKE ACTION!

The proposal combines the investment authority of the 5 state-funded pension plans (TRS, SURS, General Assembly Retirement System (GARS), Judges Retirement System (JRS) and State Employees' Retirement System (SERS). Based upon the research we have done (IEA Pension Fund Consolidation Fact Sheet), we find this to be unacceptable.

We are asking you to call your State Senator and State Representative and express your opposition to the consolidation provisions in the Treasurer's proposal by explaining the following facts. Also ask your legislators to tell legislative leaders they are opposed to the proposal. Here's why:

  1. The purported savings will not materialize because TRS has stated that this proposal will cost the state pension funds (which includes SURS) between $250 million and $400 million. Those are dollars out of your pension funds.

  2. TRS is ranked nationally in the top 25% in investment performance over the past 10 years. Investment performance is not the problem.

  3. Your voice in electing trustees to oversee your pension fund assets will be diminished. The proposed board composition would result in almost no input from TRS and SURS participants.

In addition to the consolidation, there is a component of the proposal directed at tightening ethics requirements for those who work for and with the pension systems. We believe that transparency in state government is essential and believe those provisions are worth supporting.

We are committed to doing whatever is necessary to protect the pensions of IEA members and to ensure the system can continue to invest effectively and operate in an environment of high ethical standards and openness. TRS has already expressed their opposition to the consolidation portion of the proposal (here and here).

The only way to defeat this proposal is for YOU to call and express your opposition.

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