Those
of you that felt that the only course of action that should be taken by the TRS
Board was to ask for the resignation of Executive Director Dick Ingram or,
indeed, to fire him will be disappointed. Those of you that wanted an end to
the problem of a director even talking about cutting existing benefits in order
to save the system will hopefully be satisfied that the TRS Board took steps to
accomplish that goal. The steps taken were done in closed session and with the
unanimous consent of the Board. In public session, we voted to reaffirm our
position that the remedy for underfunding the system was for the State to
provide the funding necessary to pay the existing benefits.
TRS
Report
Last
spring, TRS Executive Director Dick Ingram was quoted in the press as saying
that cutting current pension benefits would save the system money. His defense
of the remark was that he was not advocating that action, but answering a
question. At a special meeting, members of the board conveyed the message to
him that he should only be talking about solutions to our system’s underfunding
that are constitutional. Since that time, I have heard Dick Ingram speak a
number of times and I have been satisfied with his message.
The
article that recently appeared in Crain’s Chicago Business titled “Head of
teacher pension fund says state will need to cut COLAs” came as a most unhappy
surprise to me. Our TRS director had once again made the mistake of talking to
a media outlet that had its own agenda. He was quoted as saying that other
states had reformed their pensions by cutting the COLA. Ingram said that he was
just talking about the subject and not advocating a course of action.
I
heard from many of you through phone calls and emails. One email just said,
“Fool me once ….” Many members said the director should resign or be fired.
While I could certainly understand such sentiment, I was very conscious of the
fact that it had taken TRS more than a year and a half and two national
searches to find Dick Ingram. I also had no interest in seeing the Chicago
Tribune and Mike Madigan make Ingram into a martyr who had been fired because,
as they would put it, “He dared to tell the truth.”
Mike
Blickhan, President of Adams County RTA, asked a most significant question when
he wrote to me, “Has the board lost confidence/trust in Director Ingram? I know
as a TRS ANNUITANT I have.” That was one of several questions I had when we
started our regular October TRS meeting on the 24th. Each board member
found at his/her place a letter from the Executive Board of the IRTA which
called on the TRS board to control what our director said to the media and to
repudiate his remarks. In the public comments section of our meeting, Janet
Kilgus, President of IEA-Retired, spoke about the concerns of her members, and
Ed Wollet, President of the DeWitt-Logan Counties RTA and Legislative
Representative of his region, expressed the dissatisfaction and anger of those
annuitants whom he represented.
The
TRS board then went into executive session which lasted more than three hours
on Wednesday, October 24th and more than an hour again on Friday,
October 26th. What we did as board in executive session will by law
stay in executive session. Publicly we reaffirmed our position of last spring:
“The Board of Trustees of the Teachers’ Retirement System
reiterates and reaffirms its resolution of March 30, 2012 (as amended on April
30, 2012) declaring that present legislative action is paramount to ensure the
continued solvency and viability of the plan, by providing for fairness and
equity in benefits, adequate funding and adherence to generally accepted
actuarial principles and standards. Additionally, the Board of Trustees
underscores its unalterable position that any changes to the Pension Code must
adhere to the Pension Protection Clause, Article 13, Section 5, of the Illinois
Constitution of 1970.”
To
answer Mike Blickhan’s question, the board's confidence in Director Ingram was
certainly shaken, but not broken. Someone else sent me an email saying that
Ingram has done a terrible job in every respect, but that is simply not true.
He has misspoken twice when talking to the press, but in terms of running the
system and growing the morale of our staff, he has done an excellent job. Since
what was done was done in executive session, I can say no more than the board
has now taken steps that give me confidence that going forward, Dick Ingram
will convey the message that the state will need to look to increased funding
rather than cutting benefits to move our pension fund toward solvency. Jim
Bachman, IRTA Executive Director, asked if I was certain last spring that the
problem had been solved, and I answered yes. The difference this time is that I
am convinced that Dick Ingram truly understands the anger, the concern, and
even the fear that many of our annuitants and active teachers felt about his
remarks, which could be used in an attempt to take the benefits from them that
they have earned.
When
the director of a governmental agency speaks, he is speaking for the board.
When Director Ingram speaks, he will be speaking for the TRS Board, which is
committed to growing and protecting our pensions for the benefit of all of our
members, active and retired.
Bob
Lyons
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