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Proposal To Shift Teacher Pension Contributions

By Fanna Haile-Selassie

WSIL TV -- Governor Pat Quinn is joining top democratic lawmakers in support of a plan to ease the state's pension obligations. Local school districts would be asked to help pay more for teacher retirement benefits.

This proposal comes from the dire need to address the state's ongoing budget problems, but it's not getting a lot of support at the local level. With school budgets already strained, administrators say local taxpayers would likely take the hit.

There's no question many school budgets are extremely tight in Illinois. Administrators have seen their transportation funds cut, their school payments delayed, and now there's talk of shifting teacher pension payments.

"It's probably not if it's going to happen, it's when," explains Zeigler-Royalton Schools Superintendent George Wilkerson.

Governor Quinn, the House Speaker and the Senate President all support legislation that would require local school districts to pay more into the Teacher Retirement System.

"It would lead to worsened labor relations, and it would lead to potential job losses in the local communities," says Jim Clark, an Illinois Education Association representative.

Local school districts and teacher's unions are not taking the pension proposal lightly. Clark says the state is reneging on its obligations.

"All public employees have paid their share into the pension fund as obligated," he says. "It's the state's failure to do that that's created the crisis."

"I don't think it's fair that it's probably in the end going to be local taxpayers that are going to have to feel the burden of it," explains Wilkerson.

More than half of all school districts in the state already pay a portion, if not all of their teacher's contributions into the retirement system. And the practice is much more prominent in southern Illinois school districts.

"It could be a negotiable item," says Wilkerson. "Some school districts have contracts where they only pay an "X" amount of the retirement system."

"It really creates a more negative climate for bargaining. We just came through a tough time at SIU. This is going to pass it down to K-12 and have more labor unrest there," explains Clark.

Even though it's just a proposal, school districts are preparing for a new round of budget fights this legislative session.

The new 2012 legislative session began Tuesday. And Wednesday, Governor Quinn will give his State of the State Address, where it's possible we may hear more about the plan.

Currently, the Teacher's Retirement System reports the pension fund has less than half the money it will need to cover its obligations. The teacher pension system has been under-funded since 1953.

From the Southern Illinoisan...

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Pension shift just a ‘concept’ for now

BY KURT ERICKSON
THE SOUTHERN SPRINGFIELD BUREAU
thesouthern.com

SPRINGFIELD - It appears unlikely Gov. Pat Quinn will push hard this spring to shift some of the state's skyrocketing pension costs off on local school districts and universities.

A top official in the governor's budget office downplayed Quinn's recent comments on such a move, which school districts say could either trigger massive cuts in local school programs or force downstate and suburban districts to seek property tax increases.

Kelly Kraft, deputy director of the Governor's Office of Management and Budget said the idea is "a concept" at the moment.

"This is just something we're taking a look at," Kraft said.

Concern about rising pension costs were highlighted in a report issued Monday by the Chicago-based Civic Federation showing Illinois' unpaid bills may more than triple to $34.8 billion by 2017 unless Quinn and the General Assembly address pension and Medicaid costs.

Quinn, House Speaker Michael Madigan and Senate President John Cullerton each have suggested that local school districts and universities contribute a larger share of employee retirement costs to help bring down the state's pension costs.

"Everyone who has employees in the pension system should contribute something to the pensions," Quinn said.

Lawmakers on both sides of the aisle agreed Tuesday that Quinn would be hard-pressed to get such a controversial measure through the General Assembly during an election year, especially when it could result in drastic property tax hikes for homeowners.