YOUR CENTER FOR ILLINOIS PENSION NEWSCourt Finds State Pension Reform Unconstitutional
Nov. 21, 2014 The Seventh Judicial Circuit Court for Sangamon County announced that the state’s pension reform law, which passed as Senate Bill 1 in December 2013, is in fact unconstitutional. The State Court ruled against the entire law, noting that the 39 separate changes to the pension code were so corrupt constitutionally, the entire law is considered void. The ruling states “…It is clear that if something qualifies as a benefit of the enforceable contractual relationship resulting from the membership in one of the State’s pension or retirement systems, it cannot be diminished or impaired. The Illinois legislature could not have been more clear that any attempt to diminish or impair pension rights is unconstitutional.” The concerns voiced by Teamsters Local 700 when SB 1 surfaced last year are echoed in the court’s ruling. The court finds that SB 1, referenced as Public Act 98-0559, impairs the benefits for state employees in multiple ways including: 1) Decreasing the cost of living adjustment, 2) limiting the automatic annual increases, 3) increasing the pensionable salary cap, 4) raising the retirement age, 5) changing the formula used in order to reduce the pension annuity payment. Read more at www.TeamstersLocal700.com. |
We Are One Illinois Coalition
Teamsters Local 700 has joined forces with unions across the state in the We Are One Illinois Coalition. The coalition brought forward a lawsuit citing the unconstitutionality of pension reform as outlined in Senate Bill 1... READ MORE HERE S.E.R.S.
In July 2014, Illinois State Police Master Sergeant Rob Fierstein was elected to serve as employee Trustee on the State Employees Retirement System Board - the first Teamster to hold this position. Read Rob's SERS Report: SEPT 2014 |
Pension Reform: Call for Questions from Local 700
Teamsters Local 700 members in the State Retirement System are encouraged to submit their questions regarding Senate Bill 1 and its implications on retirement benefits.
All questions received will be forwarded to the State Retirement System.
Send your questions to [email protected] or call (847) 939-9700 to speak with your Chief Stewards.
All questions received will be forwarded to the State Retirement System.
Send your questions to [email protected] or call (847) 939-9700 to speak with your Chief Stewards.
SB1 Passes: Teamsters Oppose Dangerous Bill, Condemn Illegal Cuts to Worker Benefits
After decades of failing to set aside enough money to fund the public sector pension system, Illinois lawmakers passed unconstitutional legislation on Dec. 3 to reduce their debt on the backs of public employees.
With an unfunded pension liability of $100 billion, the Illinois House and Senate passed Senate Bill 1 (SB1) by narrow margins to dramatically overhaul public employee pensions. Teamsters Joint Council 25 and its affiliated local unions across Illinois lobbied elected officials in the weeks and months ahead of the vote to oppose SB1.
Joint Council 25 President John T. Coli and Teamsters Local 700 President Becky Strzechowski — who serve as International Vice Presidents to the Teamsters Central Region — actively urged state senators, representatives and the legislative leaders to reject the bill’s shortsighted and irresponsible provisions.
“Senate Bill 1 is not a solution that public employees can afford — it’s wrong for the future stability of the pension system, it’s wrong for the state and it’s wrong for the Teamsters,” Coli said. “We are very disappointed with the lack of fiscal responsibility our elected officials have shown, and the Teamsters will continue to fight to preserve the benefits our members have rightfully earned.”
With passage by the General Assembly, SB1 was signed into law by Gov. Pat Quinn. The new legislation is intended to eliminate the pension debt and fully fund Illinois’ pension system over the next 30 years through the following measures:
Currently, SB1 is scheduled to curtail annual 3 percent COLAs for public sector retirees who have relied on the increases to keep up with the rising costs of retirement and inflation. The COLA reductions will create adjustment holidays for up to five years for some workers or entirely eliminate the increases in many cases.
The dramatic cuts to retiree COLAs and other measures were devised to give the state as much as $160 billion in combined savings on its future pension liability.
LISTEN TO the full testimonies given by Local 700 President Becky Strzechowski and other opponents of SB1.
READ MORE at www.TeamstersLocal700.com.
After decades of failing to set aside enough money to fund the public sector pension system, Illinois lawmakers passed unconstitutional legislation on Dec. 3 to reduce their debt on the backs of public employees.
With an unfunded pension liability of $100 billion, the Illinois House and Senate passed Senate Bill 1 (SB1) by narrow margins to dramatically overhaul public employee pensions. Teamsters Joint Council 25 and its affiliated local unions across Illinois lobbied elected officials in the weeks and months ahead of the vote to oppose SB1.
Joint Council 25 President John T. Coli and Teamsters Local 700 President Becky Strzechowski — who serve as International Vice Presidents to the Teamsters Central Region — actively urged state senators, representatives and the legislative leaders to reject the bill’s shortsighted and irresponsible provisions.
“Senate Bill 1 is not a solution that public employees can afford — it’s wrong for the future stability of the pension system, it’s wrong for the state and it’s wrong for the Teamsters,” Coli said. “We are very disappointed with the lack of fiscal responsibility our elected officials have shown, and the Teamsters will continue to fight to preserve the benefits our members have rightfully earned.”
With passage by the General Assembly, SB1 was signed into law by Gov. Pat Quinn. The new legislation is intended to eliminate the pension debt and fully fund Illinois’ pension system over the next 30 years through the following measures:
- An increase in the retirement age by up to five years for public employees under the age of 46
- Significant reductions to annual cost-of-living adjustments (COLA) and adjustment holidays, forcing younger workers to skip as many as five cost-of-living increases
- The removal of pensions as negotiable provisions from future collective bargaining
- The creation of a 401(k)-style plan for workers to opt into instead of continuing with the state pension plan
- A reduction of 1 percent in public employee pension contributions
Currently, SB1 is scheduled to curtail annual 3 percent COLAs for public sector retirees who have relied on the increases to keep up with the rising costs of retirement and inflation. The COLA reductions will create adjustment holidays for up to five years for some workers or entirely eliminate the increases in many cases.
The dramatic cuts to retiree COLAs and other measures were devised to give the state as much as $160 billion in combined savings on its future pension liability.
LISTEN TO the full testimonies given by Local 700 President Becky Strzechowski and other opponents of SB1.
READ MORE at www.TeamstersLocal700.com.