Monday, October 24, 2011

IEA Response to the Chicago Tribune

The Chicago Tribune today is reporting that two non-teacher Illinois Federation of Teachers staff members qualified for TRS pensions by taking advantage of a law that allowed union staff to receive a TRS pension for their years of union service (based on their union salaries) if the union pays the employee and employer contributions for those years and if the individuals taught for at least one day.

Both IFT staff members spent the required day in a classroom, however it's not known whether both will actually receive TRS pensions as the required contribution runs into the hundreds of thousands of dollars. Regardless, this is being pointed to as an example of "abuse" in the pension systems.

A few points:

  • This involves just two individuals from one union (no IEA staff took advantage of this opportunity which, at the time, was indisputably legal).
  • According to information from IFT, the pensions, if they are collected, will be fully paid for by the individuals and will not negatively impact TRS.
  • IEA and IFT agree that this sort of opportunity should never be available again and we would oppose any attempt to reopen this now-closed door.
  • IEA and IFT believe that one day in the classroom is inadequate for anyone to be considered a teacher. An individual should demonstrate a commitment to the profession to be considered a teacher and, therefore, qualified for a TRS pension.


2. The Tribune is reporting that the pension for former IEA and NEA President Reg Weaver was calculated based on the salary he drew as NEA president, making him the second-largest TRS pension recipient.

Key points:

  • Under current law, it is completely legal to have the TRS pensions for elected, full time union leaders to be calculated based on their union employment, whether it is serving as an IEA officer or as an officer of NEA, as former President Weaver's is.
  • While the elected officers are working full time for the union, the union (IEA or NEA) makes all the required employer contributions to TRS on behalf of the officers. The district and state contribute nothing toward TRS during this period.
  • The elected officers come into their union positions directly from the classroom and remain employees (on leave) of their school districts throughout their union service.
  • IEA bylaws require offices be held by "active" members.
  • Officers have, in some cases, opted to return to the classroom after they leave IEA employment.

Obviously, the impact in dollars of the items listed above is infinitesimal when considered in the context of TRS, a multi billion dollar institution with more than 360,000 participants. Nevertheless, some of our opponents will point to these stories as proof that "something needs to be done" about pensions.

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