Teacher pensions and the two plans.
The last session of the General Assembly there was just one plan for screwing teachers. That was Senate Bill 512. It was the brainchild of the Civic Committee, which is headed by millionaire corporate lawyer Ty Fahner. The plan was pushed by GOP House Leader Tom Cross and the Chairman of the Illinois Democratic Party who is also Speaker of the House, Michael Madigan. He of the special table at Saputo’s in Springfield.
SB512 would create a three-tier pension plan in which teachers would have to choose between a private plan, a reduced benefit plan or a more expensive plan. It is designed to bankrupt the TRS system, forcing it to be privatized altogether.
There were not enough votes in Madigan’s House to pass it. And the Democrats in the Senate, let by John Cullerton, never thought it would pass constitutional muster.
A recent court decision in Arizona tends to support that view.
Senate President Cullerton has another plan.
He would transfer the debt owed by the state to TRS by having local school districts pay it.
This plan seems to be gaining support in the legislature.
According to the Springfield State Journal Register:
Downstate school districts could pay more toward their teachers’ pensions by negotiating more frugal contracts with teachers, Illinois Senate President John Cullerton told The State Journal-Register editorial board on Monday.
State government’s top three Democrats – Cullerton, House Speaker Michael Madigan and Gov. Pat Quinn – have floated the idea of local school districts paying for teachers’ pension benefits, which the state pays for today.
This plan would mean that teachers would take the hit for making up for the failure of the state to meet their pension obligations. No local districts could afford to pay into the pension system and keep up with their payroll which already amounts to over 80% of most school budgets.
