Officials fear pension revision
November 17, 1997
SIUC staffer Ruth Pommier says her faith in government has been restored.
This sentiment was pronounced after the Pension Laws Commission on Wednesday redressed what some workers consider the inequities of the 1997 Pension Bill.
However, SIU President Ted Sanders says the actions taken by the commission might gouge a sizable hole in the University budget.
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An ongoing struggle between the staffers, some Springfield legislators and University administrators concerning the health care item of House Bill 110 has resulted in a victory for University workers who demand the comprehensive health care coverage they were promised be retained.
Pommier, a receptionist at the Southern Hills Apartment Complex opposed to HB 110’s health care line, was in Springfield during the commission hearing.
I’m smiling from ear to ear, she said. This was a major victory because if it had not made it through the Pension Laws Commission, it would be very difficult to do. But, we did prevail by the largest margin of any bill brought before the commission.
This has restored my faith in the power of government. When we see good men and women working to redress a wrong, it makes us see that we’re being heard.
HB 110 initially was designed to boost Illinois pension benefits ranked 48th in the nation, a goal it readily accomplished. However, in August, a small group of SIUC faculty and staff members found fault with the bill, criticizing its line requiring retirees with fewer than 20 years of service to assume 5 percent of their health care premium costs.
The group has grown to include about 700 SIUC workers and other university employees around the state. They maintain that the bill undercuts the segment of workers who recently started working for the state and benefits employees who have been in the system for more than 20 years. They also contend the legislation favors administrators with higher incomes because their pension benefits will offset the costs incurred from paying their health care premiums.
The Pension Laws Commission took these grievances into consideration Wednesday when it voted to approve an amendment sponsored by Sen. Dave Luechtefeld, R-Okawville, which would allow State University Retirement System and State Employees Retirement System workers to opt out of the new pension program and retain their original packages.
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Sanders, after talking to SIU lobbyist Garrett Deakin, says the vote might have serious repercussions on the University community. He contends that the pay-out costs associated with allowing employees to retain their original pension packages ultimately will cost the University $98 million.
Sanders could not provide a time frame for these costs, but did say that according to Bureau of the Budget figures, health care cost expenditures could total about $7.5 million in the first year of the legislation’s enactment.
I have to be very concerned with what our priorities are, Sanders said. I’m very concerned about the cost of these payouts if these figures are accurate.
We’re interested in finding a fair solution to the dilemma that a few people are facing.
The commission also voted to approve language alterations presented by Jim Hacking, director of the State University Retirement System. The changes were proposed in an attempt to solve what Hacking has termed some administrative problems.
Both alterations to HB 110 passed 10-2, with two public commission members dissenting.
Pat Stevens, director of the Pension Laws Commission, says the fate of Luechtefeld’s amendment is uncertain as it now must be attached to a bill already on the General Assembly floor.
There’s no time left, Stevens said. The veto session is almost over. It’s up to the legislative staff to draft it into a bill that’s already in the legislature.
The veto session ends today. However, Gov. Jim Edgar and other Republican leaders are lobbying to extend that date in an attempt to pass an education bill still awaiting approval.
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