Illinois House Considers Unconstitutional Pension Bill

Contentious Legislation Would Increase State Worker Contributions

SPRINGFIELD, Ill., May 26, 2011 /PRNewswire-USNewswire/ -- An amendment filed to Senate Bill 512 in the Illinois House of Representatives on May 25 aims to reform the current pension system. Affecting most pensions, including those of city and county workers, proposed plan gives participants the option of raising their contribution or having their benefits slashed.

"Such legislation is unconstitutional, plain and simple," said William P. Logan, Local 700 Assistant Trustee. "By increasing workers' individual pension contributions without a comparable increase of benefits effectively hinders their constitutionally protected rights and benefits."

Under the proposal, state employees have the option of maintaining their current benefits by increasing their contribution or maintaining their contribution levels by seeing a decrease in benefits.

In order to maintain their current benefit level, employees can choose Tier One and see their contributions increase to as much as 13 percent with three-year adjustments. The second option, Tier Two, allows employees to hold their contributions at 7 percent but decreases their benefit level. A third option allows employees to opt into a defined contribution plan.

"No matter how you look at this, the state of Illinois is essentially stealing from our members' pension funds," said Becky Strzechowski, Local 700 Assistant Trustee. "What else can you call it when someone forces you to pay more money for less services?"

A similar package was approved by the General Assembly last year for all employees hired after January 1, 2011. Along with unions across the state, the Teamsters are closely monitoring the legality of these reforms.

"The Illinois Constitution is very clear in its protections of workers' pensions and the contractual obligations the state must meet to fulfill those benefits," said Logan. "Employees see their pension contributions taken from their paychecks each month. Our members will not bear unjust burdens for the state's financial shortcomings.

"The Teamsters will actively oppose these illegal and unconstitutional proposals."

If lawmakers successfully pass such pension legislation, changes would not go in effect until Jan. 1, 2013. Senate President John Cullerton (D-Chicago) has already stated his belief that pension increases would be unconstitutional, but that he would allow a vote in his chamber anyway.

"Teamsters will continue to lobby and have a presence in Springfield to protect our members rights and benefits at all costs," said Strzechowski.

SOURCE Teamsters Local 700