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UIC Chapter of SUAAMinutes of the Spring MeetingThursday, May 20, 2004 |
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Kathleen Crittenden called the meeting to order at 10:00am for Frank Tachau, who could not attend.
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UIC Chapter of SUAAMinutes of the Spring MeetingThursday, May 20, 2004 |
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Kathleen Crittenden called the meeting to order at 10:00am for Frank Tachau, who could not attend.
Treasurer’s Report
Wally Wadycki reported that, as of May 1, 2004, we have, as compared to
past years dues' growth:
5/1/02= $22,341 5/1/03 = $22,531 5/2/04 = $30,556 and, as of 5/19/04, = $31,341
There has been very good growth due to recruitment efforts. The centralization of dues payment in Springfield has been working well, and electronic transfer of funds to the chapter also has begun. This system will now be used by all SUAA chapters in the state.
Legislative Report
Dick Johnson gave a short version of his political action report since much
of the information will be covered by our guest speaker. Major points: many
state newspapers were discussing the funding of the state pension systems
and the future State obligations, and he is continually monitoring the Washington
discussions about eliminating the Social Security penalty reductions for those
who have a State-earned pension. The NEA is a big sponsor of this legislation.
Webmaster Report
Merrill Gassman described the information and links which are now available
on our website, http://www.uic.edu/orgs/suaa,
and urged everyone to use the Chapter listserve. If you want to be included
in the listserve, please contact Merrill (mgassman@uic.edu).
Irv Miller announced a new SUAA monthly discussion group activity to begin in the fall, with more information to come.
Next year’s meeting dates: Oct. 14, 2004, Apr. 21, 2005, and a Holiday party to be held during the first part of Dec., 2004.
Judy Curry reported on the State SUAA Board meeting and reminded everyone that SUAA was responsible for the automatic 3% annual benefit increase for post-1982 retirees (funded by the extra 0.5% paycheck deduction). Such issues are key for our current members and to recruit new members.
Speaker: Mr. James Hacking, Executive Director of the State University Retirement System
The first part of Mr. Hacking’s talk was a brief report on the condition of SURS and projections as to how funding levels would affect SURS financial status, looking at SURS from 1980-2045. Currently, we have exceeded our target rate of return of 8.5%, and our funding ratio was up to 65.3% as of April 30. However, it had been at 88% in the year 2000. These levels are very sensitive to both State contributions, and current financial markets. If we had been State funded as the law provided, the funding ratio would be approximately at 140% despite the financial downturn of 2001-2002.He addressed the key question on everyone’s mind about the Governor’s ability to balance the deficit by further eroding our benefits or funds. Constitutionally, the statute states that pensioners and contributors to State systems cannot have their benefits impaired or reduced prospectively. Therefore, only new hires might be at potential risk. Health insurance is negotiated by the major State union (AFSME) contract and we are a part of that. It would not be good politics to come to loggerheads with that union, which reduces our risk.
The governor named a Blue Ribbon panel to look at the long term plan for the under funding of pensions in Illinois. He then changed their mandate to only look at 2005. There is great disappointment among some panel members. Hacking stated it is obvious that in order to prevent over 23 billion in greater debt down the road, some form of tax increase must be considered to redress chronic under funding. Remember, it is not benefits that are the problem, but State chronic underfunding.
Mr. Hacking then entertained several questions, and we adjourned for lunch.
Respectfully submitted,
Susan R. Levy, Secretary
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