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Fall meeting 2011 Notes from Steve Mansfield


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Tuesday’s (18 OCT 2011) SUAA meeting in Normal was my first and I found it a very rewarding experience.  Steve asked if I would share some impressions.  They are just that – personal impressions – just thoughts of a new annuitant, many of which may be out there already.  They are in no particular order.

  • Senate Bill 512 could be resurrected in the upcoming Veto Session.  Those in the know at the meeting are optimistic that in its present form, it’s unlikely to pass; but may be brought back for consideration next year.  It’s important to note that those in the know expressed their optimistic observations very cautiously(As a reminder, one of the most pernicious aspects of Senate Bill 512 would be the doubling of Tier 1 employee’ contributions to the pension fund.  Having to contribute at such a level would surely drive people out of SURS.  Such a situation would not only hurt current employees -- it also puts current annuitants’ pensions at risk with less money coming into the system.)
  • There is speculation that some pension reform may pass in the veto session.  I would guess that such reform might address some of the more egregious abuses of pensions that have appeared lately in the Tribune.
  • The phrase ‘pension reform’ may win the prize for Euphemism of the Year. When annuitants hear that term used, they may want to check to make sure they still have their wallets.
  • Some ‘pension reformers’ have super-heated the atmosphere surrounding pensions.  Such an atmosphere may precipitate actions that would be ‘overkill.’ Public pension problems are complex and require careful deliberation based on the real involvement of all stakeholders, especially annuitants and current employees of SURS institutions.   (This statement is not intended to diminish the problem of inadequate funding by the state or the current economic turndown.  Public pensions present an extraordinarily complex problem that could easily be made worse by hastily-drawn legislation.  It is very important that current pensioners and employees at SURS institutions need to be very careful to oppose quickly drafted, ill-conceived ‘solutions’ to current problems.)
  • In spite of a lot of very smooth and logical talk by some politicians on pension problems, there is an engine driving some politicians who would seek to cut pension benefits, i. e there is a very vindictive mood among some voters toward government employees (police, firemen, teachers and other public servants), a mood that could easily turn into a punitive one.  It’s fair to ask if these negative feelings are reinforced by some politicians for their own ends.  Part of this vindictive message is the myth that state pensioners are lavishly compensated.  (The reality is that the average monthly SURS pension is in the $2800/month range.)
  • It’s very clear that SUAA needs to recruit more members – SUAA’s work last year defending our pensions strained its regular budget.  The only way to increase its budget is with more members and their dues.  More members would also give us more visibility and credibility with the state’s politicians.  Only a relatively small fraction of annuitants belong to SUAA.  Given the Senate Bill 512, current Tier 1 and Tier 2 employees, they would find it smart to join too, even if their retirements are years away.
  • It’s equally clear that the SUAA Action contributions are not really adequate to the task at hand.  (SUAA Action funds are used to educate/support the politicians who will vote on our pensions.) 
  • SUAA members may have to do more to help in the recruitment of new members, dig a little deeper to fund SUAA Action and press friends and colleagues in SURS to do the same.
  • It can’t be said too clearly.  With no exaggeration, public pensions are under attack -- annuitants are the first line of defense.  Annuitants have to realize that the fight is real and it’s their fight.  The outcome is for high stakes and one that requires that annuitants make no false assumptions about the safety of their pension benefits.
  • Ultimately, annuitants, Tier 1 and Tier 2 employees and annuitants from other pensions have to make a common cause – annuitants, current employees at SURS and other pension programs’ institutions will have real power in unity.  Taken together, these groups make a very impressive voting bloc.
  • There were a lot of questions raised about possible changes in medical insurance programs at universities and colleges.  This concern is in the wake of the debacle caused by the state’s action in changing insurance providers earlier this year.  It created very serious problems for covered university annuitants (and employees) by bringing in plans with very small networks of providers.  What will happen in the future is not clear.  It was clear that annuitants and employees need to be aware that other changes could come.  These changes could negatively affect the base of providers or the cost/coverage of the benefits. There was one very positive note and a good lesson to be learned from this year’s attempted change.  Benefit holders reacted quickly and with great intensity -- the state was forced to rescind its decisions.  The lesson is clear – wariness and a willingness to defend ones benefits are critical.
  • One final thing – a creative annuitant created some brightly colored t-shirts silk screened with the message:  “SUAA has your back.”  It’s not a bad marketing tool and isn’t a bad way to describe what SUAA and its local chapters are doing for us.  I wouldn’t be surprised if this slogan catches on and that annuitants might be asked to ‘show their colors.’

These are, as I’ve indicated personal opinions only and I would be happy to hear from colleagues with other ideas, observations and feedback.

Joe Barillari
eng154@wideopenwest.com