“Once again we have a problem. TRS Director,
Richard Ingram, was interviewed by Crain's [October 4, 2012], and he is quoted
as saying that changing the existing COLA may be the only way to save the
pension systems. Last spring the TRS Board was very clear that the role of the
System and of our director was to supply sound information when asked and not
to be an advocate of any solution to the problem, and especially not to do so
when the specific solution was unconstitutional. Reading the article and
especially watching the accompanying video, I came to the conclusion that
Director Ingram sees the Illinois Constitution as an inconvenience to solving
the underfunding problem. Mr. Ingram has gone to where the Board of the System
did not want him to go and for the second time. Our next regularly scheduled
meeting is in Springfield on October 24. As
a single member of the board, I cannot say what we will do, but I certainly
believe that we have a problem and that we will deal with it” – Bob Lyons, TRS
Trustee
According to the Teachers
Retirement System, “the Executive Director serves as the Secretary of the Board
and the System’s chief executive officer and is responsible for the detailed
day-to-day administration of the System. The Executive Director shall perform
all duties prescribed by the Illinois Pension Code or by rule, order, or resolution
of the Board. The Executive Director’s performance review is conducted
annually.”
On April 10, the Chicago Tribune
printed this statement sent by Ingram to Voice of the People: “To be clear:
Neither I nor Teachers’ Retirement System is proposing any changes in member
benefits, especially a reduction in the current annual cost-of-living
adjustment… It is not our role at TRS to
suggest a solution to this problem…”
Ingram then proceeded to say, “New
revenues must be generated, and if they are not, benefits may have to be
reduced… There are only a few options available and none is very pleasant to
discuss – changes in the cost-of-living adjustment; in member contributions; in
retirement age and in the benefit formula; as well as increased revenues
through new taxes.”
For Ingram to suggest
unconstitutional alternatives for solving the state’s budget problems is to focus not on the essential causes of the state’s budget deficits: its structural
revenue and pension “debt” problems. It is not one of the Executive Director
Ingram’s duties to make self-contradictory statements that jeopardize the TRS
members’ benefits and rights guaranteed by the Illinois Constitution. It is not
“prescribed by the Illinois Pension Code” that the executive director’s role is
to also validate a fallacious and illegal argument “where lawmakers [the Civic
Committee, and the Chicago Tribune also perpetuate] a [dishonest and illegitimate] solution.”
In April, I
wrote that Ingram’s testimonies have spread
like a virus and in such a way that their infectious frequency will convince
most everyone by the sheer weight of their contagious reiteration rather than
by the presentation of more meaningful substantiations of evidence and better solutions that are
available for the problem of pension funding. Ingram’s
suggestion that the Cost-of-Living Adjustment is “where the cost is” reinforces
an attempt by policymakers to reduce the rights and benefits for both current
and retired teachers.
Ingram’s
omission of “fair” solutions to address the deficits is suspect. To not discuss
the numerous ways to increase necessary revenue to pay the state’s self-imposed,
perpetuated debts, but to choose to rob teachers’ of their constitutionally-earned
rights and benefits is wrong.
Given that Ingram has changed his “neutral”
position since last fall, why isn’t Ingram talking about extortive tax breaks
and loopholes for corporations and the wealthy instead? How much revenue would
be created single-handedly with their elimination? Why isn’t Ingram talking
about the creation of a graduated-rate structure that will “cut the overall
state income tax burden for 94 percent of all taxpayers” (the Center for Tax
and Budget Accountability), and why isn’t Ingram talking about an elimination
of the tax loopholes for “Tax Increment Financing Districts?”
Let’s stop distorting fundamental
issues and blaming the state’s budget deficits on teachers and other state
workers, propagated through thoughtless comments and skewed broadcasting that flagrantly
omit the obvious facts that pension costs are increasing because of a defective
1995 “ramp-up” payment to the pension systems and the accrued pension debt
caused by irresponsible, incompetent and corrupt politicians; reckless union
leaders, and three illogical court rulings (People ex. Rel. Illinois Federation
of Teachers v. Lindberg, 1975; McNamee v. State, 1996; People ex. Rel. Sklodowski
v. State, 1998).
Let’s put an end to scapegoating
teachers. Teachers and other public employees are not responsible for the
state’s budget deficits. To reiterate, let’s put an end to distracting the
general populace from the real problems that the State of Illinois confronts: its
revenue structure and pension “debt.” Let’s defend the State and U.S. Constitutions; let's defend the ethical and contractual promises made to teachers; let's focus on raising revenue without
compromising the future of the state’s retirees and teachers and other state employees.
I hope when the TRS Board meets on
October 24th, this stupidity is put to rest by a significant decision
and declaration to the members of TRS.
-Glen Brown
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