We Have a Pension Battle on Our Hands - Rahm Emanuel Tips His Hand

Rahm Emanuel made the following comments about City pensions while he was being interviewed by leaders of the Chicago Federation of Labor, according to a January 11th New York Times article.

Emanuel Says He Favors Reduced Pensions for Current Workers and New Hires

By DAN MIHALOPOULOS

Published: January 8, 2011

In contrast to his main rivals in the mayor’s race, Rahm Emanuel has told labor leaders that he favors reducing pension benefits for the city’s existing work force and not just for new hires.

Although Mr. Emanuel has not yet publicly detailed his plan to confront the city’s perennial budget deficits and the severely underfinanced employee pension funds, he told union officials in a private meeting on Dec. 15 that he thought it could be necessary to cut the pensions of all employees, said people who attended the meeting.

Mr. Emanuel made the comments while he was being interviewed by leaders of the Chicago Federation of Labor. That umbrella group for 300 unions has not yet endorsed any of the candidates who will be running in the Feb. 22 election to succeed Mayor Richard M. Daley, who is retiring.
“The sticking issue for all of us is the pension issue,” said a labor activist who attended the meeting with Mr. Emanuel. “I can’t tell my members we are going to support a guy who is going to cut your pensions.”

The labor leader and others who attended the meeting said they did not want to be identified for fear that Mr. Emanuel would retaliate if he were elected.

Mr. Emanuel plans to disclose his position on city finances in a speech sometime in February, said Ben LaBolt, his spokesman. Told of the union officials’ accounts of the endorsement session, Mr. LaBolt said, “Rahm told the truth about the financial conditions of the pension system and the crisis that it faces.”

In a statement, Mr. LaBolt added that Mr. Emanuel believed “fundamental reform” was necessary to ensure that workers would receive pension benefits when they retire.
“Rahm knows — and Chicagoans understand — that the pension system as currently constructed is not an honest system,” Mr. LaBolt said. “It’s not fair for taxpayers, and it’s not fair for city workers.”
Public employees’ retirement funds have been hit hard not only by the weak economy but also by early-retirement offers, wage increases and the Chicago Public Schools’ partial “pension holiday,” which has allowed the district to reduce its pension contributions.
A new state law will require Chicago and other cities in Illinois to contribute more money toward pensions for police officers and firefighters. Mr. Daley strenuously objected to that change, warning that it would result in the biggest property tax increase in Chicago’s history.
State lawmakers also approved changes last year that limit pension benefits and raise the retirement age for new public employees, but that legislation did not affect workers already on the payroll.
The mayoral candidates Miguel del Valle, Carol Moseley Braun and Gery Chico have said they favor a two-tier pension system with reduced benefits only for new hires.

“I just don’t think it’s right for current employees contracted under certain terms to be told, ‘No, that’s not going to happen,’ ” said Mr. del Valle, the city clerk, adding that he believes doing so would violate the State Constitution.

dmihalopoulos@chicagonewscoop.org

 

The Shields Team for FOP - Our Platform

Pension Funding
Many officers consider the pension to be the most important issue we face today. The FOP has fallen asleep at the wheel on this issue as our funding ratio has plummeted to alarming levels. Sadly, the current FOP has played a role in the underfunding of the pension by forgiving the City for $23 million in pension contributions. Mike Shields is the only candidate that knows exactly what the challenges are to maintain the solvency of our pension fund. As Mayor Daley threatens to take these funds into bankruptcy court, so-called 'civic watchdog' groups propose draconian measures under the guise of reform, Mike stands prepared to defend against these threats. One major effort will be to push for a pension obligation bond to relieve the burden from the property tax levy.
Mike Shields knows exactly what the challenges are to maintain the solvency of our pension fund. He has worked tirelessly as a trustee and will continue at the FOP. Only Mike has spoken out on behalf of all officers-active and retired-regarding the financial well-being of our most valuable retirement asset - the pension fund. Mike helped educate reporters from major Chicago newspapers on the issues facing our fund and changed the tone of the debate from an anti-public employee viewpoint, to a realization that the problems plaguing our pension funds results directly from the City’s mismanagement.
As a trustee on your pension fund, Mike Shields has been an advocate against the City Hall-controlled investments. He has publicly challenged the pay-to-play type investment deals that previously went unchecked. Shields voted to comply with the Inspector General’s subpoena investigating fraud and corruption in the management of the City’s pension funds. He was the only trustee on ANY pension fund in the City of Chicago to do so. Mike has been persistent in his attempts to expose a pay-to-play pattern with Mayor Daley and City Treasurer Neely with such investment managers as Mayor Daley’s nephew. After City Treasurer Stephanie Neely threatened him with a libel lawsuit, Mike Shields did not back down. The entire Shields Team will continue to stand firm to ensure our hard-earned retirement benefits are undiminished, today and in the future.
The Shields Team will be a vigilant watchdog over our pension fund. The pension fund is one issue that affects all FOP members, therefore Mike Shields will maintain his position as Trustee on the fund. The pension is the primary benefit of our job. It is essential that the FOP administration have a deep understanding of the complexity of pension issues. The Shields Team vows against any pension reductions-ever.  There is no compromise on this issue.

Retirees Healthcare Renegotiation - 2013 Korshak Settlement
In 2013, we'll see a fight to maintain the current insurance rates for our retirees. The City is going to push for an increase in retirees' premiums and lessen the amount paid by the pension funds. The FOP leadership must be prepared to push back. Having four attorneys elected to go against the City of Chicago is pivotal to the safety and security of retirement healthcare. Jim McCarthy, Megan Whelehan Curry, Damon Stewart and Terry Collins are well prepared to assist our litigators.

Public Perception of the FOP
The FOP should function as the public voice of the officer on the street. Currently, there is no one speaking on our behalf. Whenever the Mayor or Superintendent speaks out against the police, there is simply no reaction from the FOP. When there is a matter of vital importance to the membership being debated in the media, the response from the FOP is typically silence or a poorly-worded letter to the editor—three days after the fact. In this era of mass-media and a 24-hour news cycle, there needs to be a prompt, professional, and multi-faceted response from the FOP on matters of importance to the Department and the membership. Mike Shields has excellent media-relations skills and a proven track-record of working with the media on stories benefiting the rank-and-file police.  Mike has proven himself to be a professional and articulate voice for our pension, we need him to be a voice for our FOP as well.

The Shields Team has come to a negotiated agreement with Pat Camden to be the spokesman for the FOP for shootings and other matters. As the Police Department’s former spokesman, Mr. Camden brings respect among the media and police alike. He also brings his vast media network and skills. Pat Camden excelled in demonstrating to the public in the wake of police-involved shootings that the officer was in fear of his life, often times staging the media at crime scenes where clear footage of the offender’s weapon was visible.

Mike Shields and Pat Camden will both work diligently to bring public opinion into our favor. Public opinion is crucial for any collective bargaining unit. The current FOP has lost this battle.  Their silence is deafening. Our union cannot strike or take job actions, however, we can change or garner support from the general public and influence the public’s perception of police officers.

Police Involved Shootings- A Need for Experienced Detectives at Your Shooting
There needs to be a clear, defined agreement between IPRA, FOP and the City regarding a 'cooling-off' time-period before any statement is given. Currently, there are inconsistencies. FOP reps are having some officers give statements while others are being sent to the hospital.  While an officer’s physical, psychological and emotional well-being are of paramount importance, the tactic of sending officers to the hospital for the sole purpose of  delaying or avoiding giving a statement can have catastrophic results in future depositions or court proceedings.

The OCIC (exempt in charge) is the main authority on when an officer can give a statement. The FOP reps who respond to the scene of officer-involved shootings should be experienced detectives who will properly direct the OCIC and IPRA and safeguard your rights during the conduct of their investigation. The FOP rep must stop the City and IPRA from changing rules from day to day. The FOP’s task at shootings is more than just ordering the pizza for the officers. It is to protect your future and your livelihood on the scene of a shooting. The Shields Team will send out one of three experienced violent crimes detectives – Danny Gorman A1 V/C, Saul Del Rivero Cold Case or Tim Murphy A2 V/C. The Shields Team will continue the use of legal counsel on scene when appropriate.

Contract
Our membership cannot afford another dismal contract.  The Shields Team will work tirelessly to gain improvements for our members.  A two-tiered pension system has been created requiring members hired after 2011 to average their pension calculation over eight years versus the current four years. The Shields Team will advocate a wage-compression system that applies the final step after 21 years. This will benefit the current member, the future member, and provide more funding to the pension fund for retirement.

The Shields Team will advocate for acceptable pay raises without lowering our insurance benefits anymore.  We are also dedicated to remedying the conflict of having to burn an additional half-hour each time an officer uses a baby furlough day or burn extra time to complete your furlough segment.  We invite the membership’s input as to those issues that are of greatest importance to you, and promise to make your priorities our priorities.

Manpower
The dangerously-low manpower levels have caused safety issues in each and every district.  Officers on afternoons and midnights have been more prone to work alone than ever before.  This has become a standard operating procedure for the department that has gone unchecked, all at the expense of officer safety. Last year, nearly 500 officers retired, the same can be expected in 2011. The Shields Team will advocate that a minimum of 400 officers be hired per year over a three-year timeline.  On the street, we are the only ones looking out for each other.  With less officers out there, the dangers we already face are even greater.  Officer safety must no longer be compromised due to our depleted ranks.  From a bargaining standpoint, as our active membership decreases, so do our union dues, so does our influence and so does our ability to affect positive change for our membership.  There truly is strength in numbers.

Communication with the Membership
The current FOP has a serious communication problem. This is the year 2011! There are far too many complaints regarding lack of response from the current FOP officers’ e-mail system. FOP needs to use alternate sources of media rather than relying on the archaic newsletter. The newsletter delivers too little news, too late and too costly. The newsletter should be quarterly with more of FOP’s focus on e-mail alerts that actually inform the membership. Text message alerts can very easily be added to the website—a site that can withstand heavy viewing and is actually updated with announcements immediately. We need to be a union delivering accurate information to the membership instead of the lip-service we currently see.

In addition to the mode of communication, the current FOP’s communication problems extend to the message itself.  The Shields Team will guarantee one promise - THE TRUTH. There is far too much spin from the FOP. We are all coppers and can see right through this. FOP members need to be told accurate information from their union pertaining to legislation, the contract and others pivotal matters.
The Shields Team will provide quicker and more professional responses to officers regarding their inquiries.  We will also encourage more communication and suggestion from our membership. This is your union. The Shields Team wants to restore dignity to the FOP and make you proud to be a member of this great fraternal organization.

Discipline
The department currently has two rulebooks, one for the chosen and one for the other 99% percent of the department.  The inconsistencies in discipline need to be corrected.  The department needs to stop changing the rules in the middle of the game.  Cases that make the news shall have no greater “rush to discipline” than ones that don’t.
The Shields Team will also fight against such employee tracking programs as the Behavioral Intervention System.  Currently, Sid Davis “represents” the officer in front of an assigned Sergeant during a BIS interview. We will send one of our FOP elected lawyers that is qualified to protect the officer’s best interests. The Shields Team will also challenge the qualifications of entry into such programs. Several years ago, nearly 600 officers were wrongly entered into the program. No action was then taken by the FOP.

Membership Education of the Contract and Grievance Process
Our team consists of highly-qualified, knowledgeable professionals.  They understand the particulars of the contract and can navigate through the grievance process.  Several of our team members are attorneys and have created power point presentations to conduct seminars for officers, to keep them well-informed on these issues.  Officers will be given a thorough explanation of both the contract and the grievance process.  We will also invite the number one violators of our contract - the Watch Commanders.  Presentations will be announced and conducted at various areas throughout the City.  The Shields Team wants the membership to know and more importantly, to exercise your rights.

FOP Liaison in the Superintendent’s Office
As management changes in our department, new policies are implemented without any input from FOP. Many times, these new policies violate the current contract causing the City to have to change back to their old policy. The Shields Team would like someone from the department appointed by the Superintendent as a liaison between the department and the union-outside of Management and Labor Affairs. This is a win-win for both the Department and the FOP. This position will foster the mutual cooperation between the Superintendent’s Office and the FOP to better serve the membership and the City.

FOP Needs To Become More Politically Active
The FOP will create a separate political action committee, with funds outside of the membership dues. This separate entity will avoid interfering with our not-for-profit status.  Both the FOP and the membership need to get involved.

In Cook County, very few judges have ever lost a retention vote.  One particular case is thanks to the FOP in 1986 when Judge Passarella was dumped due to the FOP’s action.  The FOP placed this message on television, radio, and the newspaper. The FOP sent the membership all over the County placing pamphlets on parked cars everywhere.  The FOP has lost that fervor. The Shields Team, if elected will spend every reasonable resource to have anti-police judges removed from the bench when theyare up for retention.  While we won’t be able to claim political victory on every issue, we must be able to flex our political muscle and ensure our voice is heard.  Politicians need to know that we are force to be reckoned with.

The State and Chicago Local Fire Unions sends out hundreds of their firemen to become active with those politicians that help their cause.  The Chicago FOP sends out no one. The Fire Unions historically have won benefits two years prior to the FOP.  We need to be more generous with our time and our pocketbook in politics.

Residency
Policemen are often treated under the law as second-class citizens. The Illinois State Statute creating a residency restriction for municipalities greater than 500,000 is a law that we should be challenging through the legislative branch.  There is no greater time to push for the residency ban to be lifted than right now. The Shields Team will push to have the City to agree to have the Illinois State Legislature lift this residency restriction. Otherwise, we will send our lobbyists to tackle this issue in Springfield.  If the City or the Legislature will not concede, we must negotiate at the bargaining table to be compensated for living in the City of Chicago.

Transparency
The current FOP leadership claims to have transparency. There are questionable actions for which no one in the FOP office will answer. The current FOP treasurer has been removed from the FOP office by President Donahue, yet he is still handling our money! No one at the FOP will address the issue of why. An attorney was fired by the FOP shortly after requesting a maternity leave. A subsequent lawsuit resulted in an undisclosed settlement, yet even the elected FOP board trustees aren’t privileged with this information. Also, why has the FOP removed allof the arbitration information from their website during this election? Finally, the trustees are not even allowed to have a copy of the FOP office’s budget. Immediately after a vote on the budget, the trustees must hand back the redacted copy of the budget after approval. We elect these board members as trustees, yet the inside FOP officers will not entrust their own trustees with such information.

These shady practices must end. The Shields team will practice true transparency. We vow to always keep the board and the broader membership appraised of our actions and decisions so that we may be held accountable for those actions and decisions.

Pension Law Signed - What You Might Not Know

This is a great start for our funding. The City will be down in Springfield as soon as January to seek relief from this bill. They have five years to comply with the funding, which means five years to try and soften the funding.

The legislature has allowed a trailer bill to this bill. In this trailer bill, expect the City of Chicago to seek relief by changing several aspects of the original bill. They can have the 30 year amortization changed to 40 years to delay funding, they can increase employee contributions, or change the 90% mandate to 80% mandate of funding over 30 years. This is not good news for us and is something we MUST fight! 

Here is the Chicago Tribune article.

Below is the Fox news report.
Quinn Signs Pension Law; Daley Warns of "Massive" Tax Hike

Updated: Thursday, 30 Dec 2010, 9:40 PM CST
Published : Thursday, 30 Dec 2010, 7:48 PM CST

Jim Selle, Fox Chicago News

Chicago - Governor Pat Quinn has signed pension reform for police and firefighters into law, and Mayor Daley isn't happy about it.
The new law makes changes to pension requirements for law enforcement and fire personnel hired after January 1.  Among the changes:
-- A normal retirement age of 55, with early retirement at 50.
-- A maximum pension of 75% of salary.
-- A maximum pensionable salary of just under $107,000
Quinn says the law will protect "quality pension benefits that are also affordable for municipalities throughout the state."
But Mayor Daley claims the new law places a "tremendous burden on Chicago taxpayers."
Daley says the city's funding burden will almost triple, and a lot of that money is going to come from taxpayers.  The mayor accused Quinn of imposing "the largest tax increase in the history of Chicago."
Quinn spokesperson Ashley Cross disputes that.  She says the new law does not change current rules, which call for pensions to be funded by property taxes or any other legally available means.

FOP's "Truth" in Negotiating: How Your Union Didn't Fight for You

Do you think the FOP utilized all of its resources to intelligently negotiate the best deal they could for their officers? If you do, think again. We charted a timeline for this past contract negotiation regarding wages using such sources as the FOP website and newsletters, newspaper articles, as well as two prior arbitration decisions Arbitrator Benn awarded shortly before his FOP/City of Chicago decision.

The timeline is as follows:

• June 28, 2008  Comparison of FOP and City of Chicago economic proposals as of June 28, 2008. This was taken from the FOP website and has since been removed. (Image of document at bottom)
• January 27, 2009  Cover page of Arbitrator Benn's decision rendered against Illinois State Police Masters Sergeants. (Image of document at bottom)
• January 27, 2009  Select paragraphs from the Illinois State Police Master Sergeants award, in which Arbitrator Benn states, "(T)here has never been a worse time for a union to find itself in the interest arbitration process." Arbitrator Benn ruled in favor of the state over the police union. (Image of document at bottom)
• March 21, 2009  Chicago Sun-Times article, in which Mayor Daley pulls a 16.1% raise offer. The FOP was still seeking a 24% increase.
• March 23, 2009  Cover page of Arbitrator Benn's decision for the Boone County's Sheriffs, rendered on March 23, 2009, two days after Mayor Daley pulled the 16.1% increase offer. (Image of document at bottom)
• March 23, 2009  Select paragraphs of the Boone County Sheriffs' award, in which Arbitrator Benn states again, "there has never been a worse time for a union to find itself in the interest arbitration process." Again, Arbitrator Benn ruled in favor of the municipality over the police union regarding wages. (Image of document at bottom)
• July 29, 2009  Chicago Tribune news article describing the the City of Chicago decision to initiate arbitration proceedings. After this date, the City and the FOP were offered three arbitrators. Despite his published decisions, the FOP agreed on Arbitrator Benn.
• April 16, 2010  The union claims the 16.1% was contigient upon three unpaid furlough days. Such a claim is totally contradictory to the award issued by the arbitrator. Arbitrator's decision - go to page 47
• April 16, 2010 
  • Arbitrator awards 10%. A Tribune article states the raise was on the table for more than a one year period. Team Shields was especially disgusted with this quote, "Daley offered a 16 percent raise over five years, but pulled that off the table in March 2009 after it sat there for more than a year as police union leaders dug in. On Friday, independent arbitrator Edwin Benn ruled officers would get a 10 percent raise over five years. That's far shy of both what Daley offered and the 19 percent the union had asked for at the start of arbitration. Fraternal Order of Police President Mark Donahue fired back at the mayor, saying Daley yanked the 16 percent offer before it was fully discussed amid debate on other contract issues." We take issue with Donahue's statement that the 16% was yanked quickly - the union had more than a year to review this.
• July 2010  In this month's FOP newsletter, 3rd Vice President Bella's report states, "The City did offer us a 16.1% pay increase for a five year period with a the caveat that we take three unpaid furlough days to  help the Mayor during these trying economic times." This statement is contrary to the arbitrator's decision and is nowhere to be found in the FOP's own handout.
• November 11, 2010  Crain's Chicago Business article, a critical jab at the floundering efforts of the FOP team coordinating the negotiations.

Comparison of FOP and City of Chicago economic proposals as of June 28, 2008. This was taken from the FOP website and has since been removed.




Cover page of Arbitrator Benn's decision rendered against Illinois State Police Masters Sergeants

 

Previous decision by Arbitrator Benn-Select paragraphs from the Illinois State Police Master Sergeants award

Chicago Sun-Times article, in which Mayor Daley pulls a 16.1% raise offer. The FOP was still seeking a 24% increase




Cover page of Arbitrator Benn's decision for the Boone County's Sheriffs, rendered on March 23, 2009, two days after Mayor Daley pulled the 16.1% increase offer



Select paragraphs of the Boone County Sheriffs' award, in which Arbitrator Benn states again, "there has never been a worse time for a union to find itself in the interest arbitration process." Again, Arbitrator Benn ruled in favor of the municipality over the police union regarding wages.

describing the the City of Chicago decision to initiate arbitration proceedings. After this date, the City and the FOP were offered three arbitrators. Despite his published decisions, the FOP agreed on Arbitrator Benn.

The union claims the 16.1% was contigient upon three unpaid furlough days. Such a claim is totally contradictory to the award issued by the arbitrator.

Arbitrator awards 10%. A Tribune article states the raise was on the table for more than a one year period. Team Shields was especially disgusted with this quote, "Daley offered a 16 percent raise over five years, but pulled that off the table in March 2009 after it sat there for more than a year as police union leaders dug in. On Friday, independent arbitrator Edwin Benn ruled officers would get a 10 percent raise over five years. That's far shy of both what Daley offered and the 19 percent the union had asked for at the start of arbitration. Fraternal Order of Police President Mark Donahue fired back at the mayor, saying Daley yanked the 16 percent offer before it was fully discussed amid debate on other contract issues." We take issue with Donahue's statement that the 16% was yanked quickly - the union had more than a year to review this.

A Well Thought-out Pension Article

Sun-Times Article

Rich Miller wrote a comprehensive and compelling article on pensions this past week.

As we’re all painfully aware, two Chicago firefighters were killed on the job Wednesday after neighbors thought there might be homeless people inside a burning building. Seventeen other firefighters were injured as they scoured the structure for survivors.

Like just about everyone else, I was deeply moved by the firefighters’ heroism. But then I got angry as my thoughts turned to all the unfair and downright misleading public employee bashing we’ve seen this year.

Firefighters, police officers and everyone else who draws a public paycheck have seemed at times to be a modern-day version of the Ronald Reagan era’s “Cadillac-driving welfare queens.”

Their salaries and benefits are far too lavish, we’ve been told time and time again. The Civic Committee of the Commercial Club of Chicago is on a mission to drastically reduce public pensions, including for firefighters, so that their overall compensation is more in line with the “private sector.” This city’s “other newspaper” has all but turned its editorial page over to the committee.

The Civic Committee is chaired by a corporate CEO who made more than $15 million last year, according to Forbes.

I seriously doubt that this particular aspect of the “private sector” is what the committee is referring to, however.

Look, I don’t disagree that there are serious problems with the public pension systems.

But how many workers in the “private sector” are paid to run into burning buildings to see if there might possibly be homeless people inside?

Too often, these workers have been dismissed this year as little more than parasites. The truth is, many do the jobs that you or I would not or could not do, for any wage.

Would the four financially well-off leaders of the Illinois General Assembly who are now pushing Medicaid reforms clean up the blood spilled on a hospital emergency room floor at 3 a.m?

The leaders are also attempting to muscle through workers’ compensation reforms, but would any of them volunteer to spend a month working on a busy expressway?

They’re attempting to limit the rights of Chicago teachers to collectively bargain. Would they spend their days attempting to lift inner city youths to greater heights?

Would the editorial board members of that “other newspaper” patrol Chicago’s meanest streets?

Again, let me be clear: Reforms are most certainly needed for every topic mentioned above.

What gets me so riled up is the one-sided tone of this debate. Workers who have given their lives to public service are too often demeaned as overcompensated and unimportant. And those who speak up for the workers are immediately tagged as “shilling for the unions.”

I suppose this climate should’ve been predictable. Times are tough. Millions are out of work and millions more are worried they could be tossed out of their jobs as well. They can’t sell their homes, and even if they could, they’d end up owing money because property values have plummeted.

They’re in no mood to pay for pensions and other benefits that they don’t also receive. They’re angry as hell and this is an easy target, partly because the unions have served themselves up, partly because the people who are in a position to most influence the public debate are taking full advantage of the situation.

What we need here are compromises which recognize both the inability of society to fund everything that has been promised and the responsibility of that same society to pay for the services it too often takes for granted.

Maybe this week’s tragic events can snap us all back to reality. We shouldn’t turn each other into enemies.

Daley to Quinn: Veto Pension Bill (Sun-Times Article)

There is nothing in this legislation barring the use of outside revenue to fund pensions. A pension obligation bond, airport revenue, a casino or another source of cashflow could be the alternate source of revenue. Mayor Daley is trying to scare the property tax payer. He doesn't speak of addressing the problem that wouldn't have been here if he had taken action 22 years ago.

Rest assure though, he will still get his, of course. Here is the article from the Sun-Times:

Daley to Quinn: Veto state pension bill

By Fran Spielman City Hall Reporter Dec 8, 2010 10:26PM

Mayor Daley pleaded with Gov. Quinn on Wednesday to veto a bill that, the mayor warned, would choke Chicago homeowners and businesses with a $550 million property tax increase in 2015 to solve the city’s pension crisis.

“They say the taxpayers of Chicago will pay for 100 percent of all pensions and, if you don’t pay for it, we’re gonna take it out of your state income tax [share]. …. What are you gonna do for the Board of Education? We can’t go tax crazy,” Daley said.

“This is the highest real estate tax increase in the history of Chicago and that’s only for fire and police. If you put the other unions in there, it’s about $1.2 billion in one year….This will really hit the people. How are you gonna sell your home even if you’re retired? Who would want to buy your home? Buyer beware.”

The governor’s press secretary Annie Thompson was noncommittal when asked whether Quinn intends to veto the bill. She would only say that he would “review this legislation when he receives it.”

“Gov. Quinn is proud of the state’s recent pension reforms and looks forward to working with the General Assembly on additional measures to stabilize pension systems throughout Illinois,” she said in an e-mail response to the Chicago Sun-Times.

Last week, the state House and Senate approved a bill that amounts to a trade-off between police and fire unions determined to restore their pension funds to fiscal health and local governments desperate to reduce their pension costs.

Chicago and other municipalities won a two-tier pension system that would force newly-hired police officers and firefighters to wait until age 55, instead of 50 to retire with full benefits. They would also get reduced cost of living increases and face caps in the final salary upon which pensions are based.

In exchange for those givebacks, the unions got a pledge that their pensions funds would be 90 percent funded by 2041. Chicago’s Laborers, Municipal Employees, Police and Firefighters pension funds now have assets to cover just 42 percent of their future liabilities.

The problem, according to Daley, is the steep ramp-up in city-mandated contributions to those funds, beginning in 2015. The bill further mandates that those contributions be paid for by property taxes.

Senate President John Cullerton (D-Chicago) has vowed to re-tool the timetable in follow-up legislation next month. But, that’s apparently not good enough for Daley, who’s taking his case directly to Quinn.

In a letter to the governor signed by most of the 50 aldermen, the city warned that a 2006 bill that reformed CTA pensions gave the mass transit agency 50 years to reach a 90 percent funding level.

“That’s what we’re asking — just to slow down and get some facts. … Just because you want to tax people, fine. But, you have to get facts on this. You have to bring people in who know something about pensions,” Daley said.

The lame-duck mayor said once again that it will take a long-overdue increase in employee contributions to solve the problem created by four under-funded city employee pension funds that will run out of money by 2030.

“Participation of employees is only nine percent. It’s been like that for 30 years. You have to negotiate that. They took it away,” Daley said.

“In the private sector, people give more contributions. [Quinn is] saying the taxpayers should pay for everything. I differ with that. I think there’s a solution here. But it isn’t all for taxpayers to pay for everything. I disagree with that.”

What Comes Around, Goes Around (Karma Catches Up With Stephanie Neely)

The same City Treasurer who threatened to sue me for libel for writing about her campaign contributions from those who invest our pension money, now has her own woes:
http://www.suntimes.com/news/2715294-418/neely-petitions-signatures-caplan-rodriguez.html

Petition woes for city treasurer

By TIM NOVAK and CHRIS FUSCO Staff Reporters / tnovak@suntimes.com Dec 7, 2010 12:06PM

City Treasurer Stephanie Neely submitted hundreds of election petitions bearing the names of two notaries who say they didn’t sign them — the same notaries who say their signatures were forged on petitions submitted by four candidates running for mayor.

The two notaries — Alex Caplan and Maricela Rodriguez — say their signatures were forged on 725 of the 2,331 petition pages that Neely submitted to city election officials last month so she could run for re-election in February. One of Neely’s petition sheets contains both Caplan’s forged signature and Rodriguez’s notary stamp.

Neely’s petitions were circulated by ward organizations and volunteers, according to her spokesman Paul Stewart, who says she didn’t pay anyone to collect signatures. Stewart said he doesn’t know who gathered the petitions that bear the names of Caplan and Rodriguez.

“It’s horrible that people who say they were out helping us did something fraudulent,” he said. “Whoever turned in those sheets, it had to be the same source’’ who circulated petitions for the four mayoral candidates — former U.S. Sen. Carol Moseley Braun, businessman Rob Halpin, state Sen. James Meeks and community activist Patricia Van Pelt-Watkins.

The Chicago Sun-Times has reported that Caplan and Rodriguez say their signatures were forged on nearly 2,800 petitions submitted by those four mayoral candiates, as well as on 488 petitions Ald. Sandi Jackson (7th) submitted to run for city clerk before dropping out of that race to run for re-election to the City Council.

Those forged notary signatures now are under investigation by Illinois Secretary of State Jesse White, whose office regulates notaries.

Two women have filed separate challenges contending that Neely shouldn’t be allowed on the ballot because her petitions don’t contain 12,500 valid signatures.

Neely collected more than 30,000 signatures — including more than 10, 500 on the petition sheets bearing the names of Caplan and Rodriguez. That’s still far more than the 12,500 she needed to get on the ballot, Stewart noted.

Mayor Daley appointed Neely treasurer in 2006 to replace Judith Rice. Neely was elected treasurer a year later.