#3 Back Pay/Pension Adjustment On July 1, 2011, Gov. Pat Quinn took the unprecedented step of withholding a negotiated pay increase from more than 30,000 state workers, claiming that the General Assembly had not appropriated sufficient funds to cover the cost of the increase. Ever since that day AFSCME has been battling relentlessly to ensure that all of those employees receive all the money they are owed pursuant to the terms of their union contract. After AFSCME’s budget analysis demonstrated unspent funds in certain agency budgets, the union was able to pressure the administration to pay employees in those agencies. However, after all those funds were disbursed, there were still six agencies in which employees had not received the wages owed—the departments of Human Services, Corrections, Juvenile Justice, Natural Resources, Public Health and the Human Rights Commission. The union took the issue to arbitration and won an order that the wages must be paid. But then the Quinn administration went into court to appeal the arbitrator’s ruling. AFSCME won again when a Circuit Court judge ruled that employees must be paid the money they are owed. But again, the state filed an appeal of that ruling. AFSCME also put the issue front and center in state contract negotiations—making clear that there would be no new contract unless the Quinn administration agreed to honor the previous contract and pay the wages owed. After fifteen long months of battling at the bargaining table and at worksites all across the state, AFSCME won a resounding victory when the administration agreed to bring all employees to their appropriate salary level, to work speedily to disburse any available (lapsed) funds to employees for back pay, and to work with the union to secure an appropriation to cover all back pay owed. That process is now moving forward. Effective July 1 all state employees were brought to their appropriate level—with employees in the six affected agencies receiving a 5.25% salary adjustment (per the previous contract), as well as the 2% salary increase due under the new contract. In addition, the state has been moving quickly to disburse all available lapsed funds for FY 12 and FY 13 toward back pay that is owed. Many individuals who retired from those agencies since July 1, 2011 have asked why their pensions can’t simply be adjusted immediately to reflect the 5.25% increase. AFSCME pushed very hard to try to make this happen. But SERS is very clear that the law does not allow the pension system to proceed in this manner. A pension benefit can only be adjusted based on actual income received and related payments into the pension fund. So the affected retirees must first be paid the back wages owed—and then SERS can adjust its pension benefit. As each agency has disbursed the lapsed funds available toward back pay, retirees have received payment in the same proportion as active employees. Some have received full payment for FY 13; only a few have received full payment for FY 12. The agencies have notified SERS of these payments and SERS is planning to adjust pension benefits accordingly. When further payments are received, pension benefits will again be adjusted to reflect that additional income. SERS says that it is not able to anticipate how long it will take to ensure these changes are reflected in the checks that annuitants receive. They will notify the union when the process is completed and AFSCME will send out that information to Chapter 31 members. They will also be posting information on this matter on the SERS website in the coming days. To ensure that justice is done for every employee—including those now retired—who did not receive their negotiated pay increase, additional funds must be appropriated by the General Assembly. In the last legislative session AFSCME and the Quinn administration cooperated to try to pass the supplemental appropriation needed to provide those funds—some $140 million—but House Speaker Michael Madigan would not allow the measure to be called for a vote. AFSCME is now launching a grassroots lobbying effort to persuade legislators to stand up and speak out in support of passage of the supplemental. If you are among those still owed back wages as a result of that withheld pay increase, call your state senator and state representative today and urge them to strongly support the effort to pass a back pay supplemental appropriation in the upcoming Fall Veto Session. A Personal Note Finally, a personal note. I am the recently-hired AFSCME Retirees Chapter 31 Coordinator of Retiree Programs, replacing Maria Britton who has moved to Washington where she is working for that state’s AFSCME retiree chapter. I am a Springfield native, a U.S. Marine Corps veteran, and a University of Illinois law school graduate, with many AFSCME members—and retirees!—among my friends and family. I am looking forward to continuing to build on the great work that Maria and our subchapter leaders and activists have done. I hope to get a chance to meet you in person during my travels around the state in the coming months. I also wanted to let you know that Chapter 31 Retirees President Virginia Yates is facing some very challenging health problems. Virginia was hospitalized for several weeks and is now in a rehabilitation facility to rebuild her strength. If you have met Virginia at any time in her long career as a local union president, subchapter president, or Chapter 31 president, you know she is a determined fighter. She’s bringing that same fighting spirit to her current health challenges and we are hopeful that she will continue on the path to recovery. Sincerely, David Amerson
Posted on: Fri, 30 Aug 2013 13:46:03 +0000
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