Urge Gov. Quinn to veto Chicago pension bill
ACTION ALERT!
Call Gov. Quinn now and tell him to veto SB 1922!
Chicago: (312) 814-2121
Springfield: (217) 782-0244
State legislators took aim at the City of Chicago’s lowest-income employees and retirees, voting to pass legislation that will slash their modest pension benefits by as much as 30 percent. The We Are One Chicago labor coalition is calling on Governor Quinn to veto the bill.
At the behest of Chicago Mayor Rahm Emanuel, state legislators voted on Tuesday to slash the pensions of some 50,000 active and retired city of Chicago employees. AFSCME and our partners in the We Are One Chicago coalition issued the following statement in response:
"Many of the individuals this legislation targets are women, people of color, senior citizens on fixed incomes, and the city's lower-paid wage-earners. These working and retired families anchor Chicago's neighborhoods and contribute to their local economies.
"We urge Governor Pat Quinn to veto this unfair, unconstitutional legislation and instead call for renewed discussions among Mayor Rahm Emanuel, the City, and our unions."
Under the provisions of the new legislation (SB 1922):
- The annual cost-of-living adjustment (COLA) that protects against inflation would be reduced for all current employees and retirees. Currently the COLA is 3 percent compounded annually. Under the new plan, it would be 3 percent or ½ the CPI, whichever is less – and it would not be compounded. Compounding means the interest is calculated on the previous year’s pension benefit. Now the interest calculation will be “simple” meaning it is based on the amount of the first year’s pension benefit.
- A city pension will decrease in value by as much as 30 percent over the course of 20 years, robbing the average retiree of as much as $200,000 in income over that time.
- If a retiree’s pension is $22,000 or less, the COLA could not be reduced below 1 percent simple interest annually.
- The COLA would be frozen (i.e. there would be no increase) for all retirees in the years 2017, 2019 and 2025.
- In addition, all current employees would lose the first COLA they are due after they retire.
- All current employees would be required to pay an additional 2.5 percent of salary toward their pension.
- The city would increase its contributions to the pension fund.
These cuts are especially unfair because many city employees are not eligible for Social Security – their pension is the sole source of their retirement income.
It’s essential that City of Chicago employees and retirees take action today.
First, call Governor Quinn to urge him to veto this unfair and unconstitutional legislation. You can reach the Governor’s Office at (312) 814-2121 or (217) 782-0244.
Be sure to leave this message loud and clear:
I urge Governor Quinn to veto SB 1922. It is jeopardizes retirement security for tens of thousands of active and retired City of Chicago employees. It is unfair and unconstitutional.
Then make sure that your legislators know that you know how they voted. Check out the House and Senate roll call votes posted below. If your legislators voted YES to cut your pension, call them right away to tell them how angry you are. If they stood up for retirement security and voted NO, be sure to call to tell them thank you.
Media reports that some unions are supporting this measure are unfortunately accurate. The Service Employees International Union (SEIU) Local 73 has been leading the charge to pass this unfair and unconstitutional measure and a number of construction trades unions are also lending support.
Here is how your House representative voted:
SB 1922 House Vote by WeAreOneChicago
Here is how your senator voted: