Secretary of State

SEIU Local 73: Quinn should 'step up to the plate and meet with Labor' on pension bill

March 26, 2010
from www.ilafl-cio.org

     In what could have been the worst week in recent legislative history for public employees, Governor Quinn, Speaker Madigan and President Cullerton collectively threw state and municipal workers under the bus in a hasty political move that cut pensions, upped the retirement age, reduced COLAs and capped retirement earnings.
     “Labor has been denied a seat at the table on this critical issue of pensions and the future livelihoods of public employees,” said Christine Boardman, president of SEIU Local 73. “The Governor should step up to the plate and meet with Labor on an amendatory veto process for this legislation.”
    "This legislation was introduced and passed out of committee before anyone had a chance to review it, " said Michael T. Carrigan, president of the Illinois AFL-CIO. "That’s not the way you treat your employees. And that’s not the way you treat your friends who worked so hard to get you elected.”

Click below to read the complete article:
 0326legislativeupdate     

    

Illinois' 'all-out-offensive' on union pensions

By Adam Doster
progressillinois.com
March 25, 2010

     In the blink of an eye yesterday, the General Assembly passed  (by a wide margin) a historic overhaul of Illinois' public employee pension system.
     It's important to remember that these cuts do not effect current employees.
     Still, organized labor is furious over the legislation -- and with good reason.
     Illinois' current level of benefits is modest and in line with other states in the region.
     The primary reason the state’s pension system is so out of whack is that state lawmakers -- instead of reforming the tax system to raise revenue sustainable and fairly -- have skimped on payments for decades, using money designated for the pension system to cover core services.
     In short, lawmakers misrepresented the problem instead of owning up to their own failures. And in devising a political solution, they threw their key allies under the bus.

Read the full article at progressillinois.com

 

Two-tiered pension system passed by state lawmakers; Quinn to sign measure into law

Springfield
March 25, 2010

     A pension reform bill to create a two-tiered benefits system for Illinois state retirement systems moved swiftly through both legislative chambers Wednesday with bipartisan support, propelled partly by a potential threat to Illinois' bond rating.
     The changes to the pension systems would only apply to newly hired employees and would not affect the benefits of anyone currently working for state and local government entities.
     Employees hired after the bill takes effect would have to wait until age 67 to get full benefits. They could start receiving benefits at age 62 with a 6 percent reduction for each year they draw their pension before 67.
     The amount benefits can be based on would be capped at $106,800, the threshold for Social Security benefits.
     An alternative formula, which lets employees retire at 60 after working for 20 years, would be limited only to Department of Corrections security workers, Illinois state police officers and state firefighters.
     The changes would affect the State Employees Retirement System, the Teachers Retirement System and the State Universities Retirement System
     The bill also exempts Chicago Public Schools from “ramp-up” of payments for the next three years, saving CPS an estimated $400 million over that period.
     Supporters contend the pension changes could save the state billions over the coming decades.
     Governor Pat Quinn is expected to sign the measure into law almost immediately.

Read more about the bill's provision at the Illinois Issues blog
Analysis: llinois' 'all-out-offfensive' on union pensions (progressillinois.com)
More coverage: chicagotribune.com, sj-r.com
Pensions story gallery (progressillinois.com)

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Some of the pension changes in Senate Bill 1946:
 
--- Apply only to people hired after the bill goes into effect in January.
--- Require an employee to be 67 years old with 10 years of service in order to qualify for unreduced benefits. A person could retire at age 62 with 10 years of service, but with a reduction in benefits of 6 percent per year.
--- Cap the salary used to determine benefits at $106,800.
--- Limit participation in the “alternative formula,” which provides enhanced benefits for high-risk state jobs, to correctional officers, state police and state firefighters.
--- Do not allow a person to draw a pension from one system while working a full-time job covered by another pension system. Pension payments would be suspended during such a period. 

Important Information Regarding Furlough Days

SEIU Local 73 and the Secretary of State have reached an agreement in reference to the number of furlough days to be applied as well as how they may be used.

Although the collective bargaining agreement allows for seven furlough days, we successfully negotiated a reduction from seven days down to four days. The way to utilize furlough days presented the biggest problem. All employees work a 37.5 hour work week but not all work the same number of hours per day. Through many discussions it was agreed to separate out facility employees due to the different hours they work per day.

For employees working 7.5 hour work days, they will be able to use furlough days in 7.5 hour full day increments or 3.75 hour half day increments.

For facility employees it has been agreed that with the exception of the 9 hour work day, furlough days will be treated as day for day. In other words, if you take a furlough day on Wednesday, Thrusday, or Friday, which are 8 houor days, you will be credited for one furlough day. You will not be required to return to work for the remaining half hour or be required to use benefit time to cover for that time. If you take a half day on Wednesday, Thursday, or Friday, then you must return to work for the remaining 4 hours or use benefit time to cover for the 4 hours.

I you take a furlough day on a Saturday, it must be take as a 4.5 hour day and it will be considered as a half day furlough day.

On the 9 hour work day, furloughs can only be taken in increments of 7.5 hours or 3.75 hours. Employees must return to work or use benefit time to cover the difference.

The maximum time docked from all employees will be 30 hours for the 4 furlough days. Two days must be taken prior to January 1, 2009, and the remaining day(s) to be taken prior to July 1, 2009.

This agreement insures that no one in the SEIU Local 73 bargaining unit will be laid off for the fiscal year as long as there are no further cuts to the SOS budget.

For the full letter from the Secretary of State, click here.  Furlough Days

If you have any questions please contact your union representative at the following numbers:
Joe Richert in the Chicago Office -312.787.5868
Karen Kleinhans in the Springfield Office- 217.522.1182
Justus Fortado in the Urbana Office- 217328.7509
Dale Hillier in the Springfield Office- 217.522.1182

Elimination of the Four Day Work Week

    Recently, the Secretary of State took it upon themselves to ignore the Collective Bargaining Agreement and eliminate the four day work week. Upon hearing this, the union took action and advised the Secretary of State that they could not eliminate the schedule and are required to negotiate over any such action. Still, they proceeded and the union filed an Unfair Labor Practice charge against them. During the most recent contract negotiations the Secretary of State never proposed changing the four day work week, nor did they open the topic for discussion. This means that the schedule is still in the contract and must be honored.
    Our position is that the four day work week is established by the contract and any employees removed from that schedule are to be returned to it immediately.The Labor Board reviewed our Unfair Labor Practice charge and deferred it to arbitration. The union is currently in the process of scheduling the hearing.