Retiree Healthcare Reform Bill Passes

May 11, 2012

University and other state employees could be on the verge of losing the free health insurance received in retirement, as legislation to end the benefit was approved by the Senate and goes to Governor Pat Quinn. Under the new plan contained within Senate Bill 1313, retired state employees, legislators, judges and university employees would pay a premium based on their years working for the state and ability to pay. Full story >

Cunningham discusses pensions on WNIJ

April 30, 2012

Illinois Governor Pat Quinn wants state institutions, such as Northern Illinois University, to contribute to their workers' pensions. Currently, the state pays the employer share of contributions. Quinn's plan would slowly shift the responsibility for paying the "normal cost of pensions" to universities, community colleges and school districts.

WNIJ's Dan Klefstad spoke with Steven Cunningham, NIU's vice president for administration and human resources, regarding the impact the governor's proposal would have on NIU. Read more >

Cunningham on the proposed fix by the Institute on Government & Public Policy - Listen >

Full interview - Listen >

Illinois Policy Survey analyzes attitudes towards pension reform

April 26, 2012

Each year, the just-released Illinois Policy Survey asks respondents what they consider to be the most important problem facing the state. In 2011, 34 percent of respondents indicated some aspect of state budget and government debt, making it the most widely-cited problem for the fourth straight year.

Produced by Northern Illinois University’s Center for Governmental Studies for the last 28 years, the Illinois Policy Survey provides citizens and state leaders with systematic and representative information on public attitudes, values and expectations with respect to the performance of elected officials and policy issues facing Illinois.

One major issue relating to Illinois’ financial crisis concerns the state pension systems, as funding for these programs are making increasingly heavy demands on the state’s revenues. This attachedexcerpt from the Illinois Policy Survey breaks down attitudes towards pension reform in the state of Illinois.

Pension Message from President Peters

April 23, 2012

Dear Colleagues,

Friday afternoon Governor Quinn outlined the framework of his plan to resolve the state’s pension funding crisis. Briefly, the Governor’s proposal provides for 100% funding for pension systems by 2042 by making the following changes to the current plan:

• 3% increase in employee contributions
• Reduce COLA (cost of living adjustment) to lesser of 3% or ½ of CPI, simple interest
• Delay COLA to earlier of age 67 or 5 years after retirement
• Increase retirement age to 67 (to be phased in over several years)
• Establish 30-year closed ARC (actuarially required contribution) funding schedule
• Public sector pensions limited to public sector employment

In return for the changes above, employee pay increases would continue to be counted in the calculation of their pension, and employees would receive a subsidy for their health care in retirement.

The Governor’s plan also calls for phasing-in the responsibility for paying normal costs of pensions to each employer, including school districts, community colleges and public universities.

So what does the Governor’s plan mean for our faculty and staff at NIU who have never missed a contribution to their pension plan?

While there is no doubt the state’s pension plans are in terrible financial shape, the root cause of this problem is NOT the fault of the state employees. Nor is it the fault of the taxpayers of the state of Illinois. The root cause lies in decades of state underfunding of required pension obligations while redirecting resources to other priorities. To resolve this funding crisis, shared sacrifice is necessary.

Read Message >

Information on Gov. Quinn's Proposed Plan to Stabilize the Pension System

April 20, 2012

• News Release & Video
• Fact Sheet (PDF)
• Public Pension Stabilization Plan (PDF) 
• What the Rating Agencies Say About Illinois (PDF)

SURS Town Hall Recap

March 7, 2012

Northern Illinois University President John G. Peters sent a video message to NIU faculty and staff Wednesday, March 7, regarding the pension reform town hall meeting held earlier in the day.

Colleagues,

As part of our ongoing efforts to provide you with timely information regarding proposed changes to our pension plans, NIU hosted a town hall-style meeting this afternoon. Hundreds of current employees and annuitants attended.

At that meeting, Steve Cunningham, Vice President for Administration and Human Resources, and I presented an overview of the current situation including a brief history, implications for SURS and proposed legislation. We also discussed insights presented in the recent University of Illinois Institute of Government and Public Affairs report on this topic and had the opportunity to hear and answer questions posed by the audience. 

Pension reform is a priority in state government this spring, so I encourage you to take the time to view the Town Hall meeting online, review the associated documents and stay engaged by following the issue on our state budget and pension website and offering your thoughtful comments and suggestions so we may best represent your interests. 

Sincerely,

John G. Peters
President

View the video message >

View video and PowerPoint slides from today's meeting on pension issues >

President Peters, Steve Cunningham to host March 7 ‘town hall’ meeting on pension issues

February 29, 2012

NIU President John G. Peters emailed this message to the campus Wednesday, Feb. 29.

Colleagues,

 As part of our ongoing efforts to provide you with timely information regarding proposed changes to our pension plans, the university will host a town hall-style meeting at 1:30 p.m. Wednesday, March 7, in the Carl Sandburg Auditorium of the Holmes Student Center.

At that meeting, Steve Cunningham, Vice President for Administration and Human Resources, and I will present an overview of the current situation including a brief history, implications for SURS and proposed legislation. We will also discuss insights presented in the recent University of Illinois Institute of Government and Public Affairs report on this topic, and will include a question-and-answer session. Specific questions may be emailed in advance to pensionquestions@niu.edu.

The entire program is expected to last approximately 90 minutes.

For those unable to attend the event, NIU Media Services will live-stream the event at NIU Today (www.niutoday.info). That stream will be archived on the State Pension & Budget Update website (www.niu.edu/statebudget/) and available for viewing at your convenience.

Pension reform is a priority in state government this spring, so please take advantage of this opportunity to hear the latest news on this important topic.

For more information about this event, and about pension issues in general, visit the NIU State Pension & Budget Update website.

Sincerely,

John G. Peters
President

State Pension Update

February 10, 2012

Northern Illinois University President John G. Peters sent a video message to NIU faculty and staff Friday, February 10, regarding a recent analysis of Illinois’ public pension problem.

Colleagues,

The prestigious Illinois Institute of Government & Public Affairs has released an insightful analysis of Illinois’ public pension problem and proposes a set of reforms for the SURS that meet the standards of the Illinois constitution and provides fiscal sustainability for the system going forward. It is built on the concept of shared responsibility among the state, its universities and employees.

Please take the time to view the video and to click the link below for more information about this insightful report and the proposal contained within. Thank you for your time and thoughtful consideration.

Sincerely,

John G. Peters
President

Watch the Video Message > 

Read the IGPA reform proposal for the SURS >

Archived 2011 Pension Reform Updates >