Pension Vocabulary: One Point of View Concerning Governor’s Election
I received my vague, but promising phone call from IEA
President Cinda Klickna while I was out of the home the other day. Cinda promised that I would shortly receive
the endorsements by the IEA in the next few days for this upcoming and very important gubernatorial
campaign. She
didn’t want to tell me who that might be by phone. Sure enough, two days later my mailbox
contained a glossy, heavy stock double-sided flyer asking me to vote for Pat Quinn, the only candidate who believes in
collective bargaining.
Somewhere along the line, the IEA has forgiven or forgotten
that Quinn is also the man who signed SB1 into law (PA-98-0599), or that Quinn
promises to return to a pension reform bill if the Illinois Supreme Court
declares PA-98-0599 unconstitutional.
Decisions, decisions.
My friend Glen Brown describes the choice between Rauner and
Quinn as a choice between hanging and the sword. Or maybe vice versa.
As a retiree, I also have the assurance of my other
organization: the Illinois Retired Teachers Association. They don’t make concessions, nor do they
worry about whether a necktie or a sharp blade is best. They endorse 32 individuals – NONE of them gubernatorial
candidates. No support for Rauner or
Quinn.
If I were an active teacher in the classroom right now, I’d
feel pretty damn scared about where we are right now as educators. I’d be
clinging like a Titanic survivor coming alongside a lifeboat for some means to
survive and and/or any shred of hope for a pension in the next ten or thirty
years of my work. I’d be desperate.
Cinda didn’t necessarily push my buttons when she left her
message. I believe that the IRTA will
fight for me no matter what happens. I
also believe now that the recent Kanerva
decision undermines much if not all the recent PA-98-0599.
Ironically, that same legal likelihood makes it possible for
Cinda’s message to carry so much impact for the current teachers in the
classroom, those who have become so cornered by the lack of union influence on
candidates in this race and the panic-driven emphasis on looking for a lesser
evil.
Despite Quinn’s promises to return for another round of
pension reform bills, Cinda would have me (and them) believe that he is still
better than Rauner. Despite Quinn’s
discussion of perhaps approaching again with another bill that provides
consideration (like SB 2404), Cinda proposes that “Quinn is the clear choice
for public education and working families.”
Suddenly, Quinn looks more impotent, given the Kanerva decision – NOT a lesser
evil. And is this what we’re asked to
vote for?
On the other hand, to be honest, Rauner is honestly a danger
to unions, workers, and the middle class.
His record, his statements, and his total lack of any real delineation
of agenda all display his deliberately discrete approach to winning the
election: by crafty advertisements, not any substantive information.
Some of us pensioners will vote for Quinn in November,
heeding Cinda’s request or making a late decision as we approach the
booth. I think many of us will not vote
for either.
One active teacher and political activist, Todd Mertz, has
decided he will vote for Quinn. That is
his decision, and it is based upon his own careful exegesis over this summer of
factors to keep in mind. Whatever your
vote may be at this time, it is worth your while to review what a young active
has to provide regarding his view of the upcoming election for governor in
Illinois.
Illinois
Teachers: Just what is at Stake in the
Upcoming Gubernatorial Election?
There is more at stake for Illinois teachers for this fast-approaching
gubernatorial election (November 4th) than perhaps any other
election in Illinois history. Every
Illinois teacher should familiarize himself/herself on where both candidates
stand on issues that will directly impact themselves—both in and out of the
classroom.
Both Rauner and Quinn agreed to be interviewed by IEA President Cinda
Klickna on April 11, 2014 at the IEA Representative Assembly in Chicago.
Every teacher, administrator, and public employee in Illinois should watch this to
understand just what is at stake in this election.
Some hot education topics that may drastically change (or be eliminated),
depending on who is elected as the next Illinois Governor, include tenure,
pensions, charter schools, collective bargaining, salary vs. merit pay, and
union membership.
Below, each of these hot topics is outlined twice—first as how it presently
exists in Illinois’ schools and below that--how it may change as a result of
the gubernatorial election on November 4th.
Current Status:
Tenure:
· Illinois teachers earn tenure on
their first day of their 5th year of teaching.
· There is a common myth that teachers
can’t be fired once they earn tenure.
This is not true whatsoever. Bad
teachers can be fired for performance.
However, tenure simply means that a teacher earned the right of due
process before he or she can be fired.
Due process simply allows a teacher to a full review before being
terminated.
· Tenure is an important safeguard to
protect educators in a profession where free thought and innovation must be
encouraged.
· Tenure protects veteran teachers, who
generally earn a higher salary, from being terminated due to fiscal
constraints.
· Tenure has recently been overturned
for California teachers in a Supreme Court case, in what may be a national
landmark case. It is now in court in New
York. While Illinois teachers are on a
four year probationary period before earning tenure, California teachers were
only on a two year probationary period.
However, the issue may be a hot topic once again in Illinois.
· In Illinois, SB7 passed in 2011 and
already weakens the job security teachers had prior. However, tenure and
seniority still DO exist.
Pensions:
· Teachers in Illinois currently
contribute to a defined benefit
pension plan. This means that when a
teacher retires, he/she will receive pension checks for the rest of his or
her life, no matter how long he/she lives.
· This is a nice benefit, but many in
the public don’t understand that teachers in Illinois have paid a whopping 9.4%
from each paycheck over the entire course of their career for this
benefit. In fact, 9.4% is one of the
highest contribution rates in the entire country, behind only Kentucky,
Missouri, and Ohio. See breakdown of all
states here (page 61).
· Costs: While the media often states how “expensive”
teachers’ defined benefit pensions
are, the fact is, Illinois teachers pensions are average AND cost less compared
to neighboring states. See chart below:
Source: IEA
· In December of 2013, SB1 was signed
into law. This bill reduces the defined
benefit plan for active and retired teachers.
The IEA, SURS, and other state unions are challenging this law in
court.
· However, even with the “impairment
and diminishment” of pension benefits in SB1, the defined benefit plan still exists.
· Governor Quinn supports keeping the
defined benefit plan in place for active and retired teachers.
· For more information on the
importance of a defined benefit pension, see the IEA Fact Sheet: Defined
Contribution vs. Defined Benefit Retirement Plans.
Charter Schools:
· Charter schools are publicly funded,
but privately run.
· Charter school teachers are generally paid less,
receive less benefits, and don’t have the job protections that public school
teachers have.
· A Vanderbilt study found charter schools had a teacher
turnover rate of 25% compared to just 14% in traditional public schools.
· “More than half of the Illinois State
Charter Commission’s budget has come from private contributions. That includes $200,000 from the Walton Family
Foundation, linked to the family of the founders of Wal-Mart, and $115,000 from
the Joyce Foundation in Chicago. The groups are major financial backers of
charter schools.” (Sun Times)
· Charter
school students often test below public school students (Catalyst Chicago)
· “Charter
schools serve a disproportionately lower number of special needs and homeless children than do
neighborhood schools and they do not have the services in place to
serve these populations with what they need.” (Chicago Now)
· “The Illinois State Charter School Commission was created in 2011 by
Speaker of the House Michael Madigan seemingly for the sole purpose of
advancing Concept Schools in the state.” (Chicago
Now) The Illinois State Charter
Commission can overrule a local school board and approve a charter school in
the community.
Collective Bargaining:
· Currently, Illinois public school teachers and support
staff have the right to bargain a fair contract.
· “Collective
bargaining gives educators a voice in their workplace. It not only helps assure
fair wages and benefits, but also can improve teaching and learning conditions.
That means everyone connected to the school—students, teachers, education
support professionals, administrators, and taxpayers—benefits.” (NEA)
· “Teachers’ working conditions are students’ learning conditions,
so by addressing school and classroom issues, everyone gains.” (NEA)
· “Bargaining topics often include setting limits on class size,
specifying time for teachers to share effective classroom practices, addressing
school building health and safety issues, ensuring teacher input into their own
professional learning, and more. (NEA)
· Salaries. “Effective
bargaining can bring about compensation levels that match or exceed those of
competing education employers or professions. Professional salaries are a
significant incentive for recruiting educators to work in a particular
district—or to choose education as a career. Research shows that an 11 percent
increase in the weekly salary of teachers would increase the proportion of
college graduates who are willing to work as teachers by 26 percent.” (NEA)
· “A bargained contract ensures that employees are treated fairly
because both parties have discussed and agreed upon rules and procedures for
the workplace.” (NEA)
· As of now, teachers have a right to
strike if they do not agree with the school board’s offers.
· Check
out other reasons why collective bargaining is so important to every
Illinois teacher.
Salary vs. Merit-Pay:
· Most Illinois teachers are currently
paid based on experience and education levels.
· Merit pay
means that teachers are paid based on their “performance” rather than their
years of experience and education levels.
· “The
single salary schedule is the fairest, best understood, and most widely used
approach to teacher compensation -- in large part because it rewards the things
that make a difference in teacher quality: knowledge and experience.” (NEA)
· Many
“education reformers” claim teachers are overpaid and would like to move
teachers to a merit-pay system. However,
“close to 50 percent new teachers leave the profession during the first five
years of teaching, and 37 percent of teachers who do not plan to continue
teaching until retirement blame low pay for their decision to leave the
profession.” (NEA)
· “The
fundamental problem is low teacher pay, period. Merit pay schemes are
a weak answer to the national teacher compensation crisis.” (NEA)
· As stated
above, merit pay is usually determined based on students’ standardized test
results. However, is it fair when a
teacher is dealt a class list of students who have little or no family support? Or students whose parents struggle
financially? Or students who are
hungry? Or school districts whose
classrooms are cold or too hot? Imagine
your salary being based on your students’ test performance in any of these
unfortunately common cases?
· The worst
part of merit-pay in many cases: Teacher collaboration goes
down the drain. “Merit pay systems force teachers to compete, rather than cooperate. They
create a disincentive for teachers to share information and teaching
techniques. This is especially true because there is always a limited pool of
money for merit pay. Thus, the number-one way teachers learn their craft
--learning from their colleagues -- is effectively shut down. If you think we
have turnover problems in teaching now, wait until new teachers have no one to
turn to.” (NEA)
· “A
salary schedule is a reliable predictor of future pay increases. Pay for
performance plans are costly to taxpayers and difficult to administer. In
contrast, single salary schedules have known costs and are easy to administer.
School boards can more easily budget costs and need less time and money to
evaluate employees and respond to grievances and arbitrations resulting from
the evaluation system. Worse yet, there is often a lack of dedicated, ongoing
funding for merit pay systems.” (NEA)
· “Merit
pay begs the question of fairness and objectivity in teacher assessments and
the kind of teacher performance that gets "captured" -- is it a full
picture, or just a snapshot in time? Is teacher performance based on multiple
measures of student achievement or simply standardized test scores? Are there
teachers who are ineligible to participate in a merit plan because their field
of expertise (art, music, etc.) is not subject to standardized tests?”
(NEA)
Union Membership:
·
Teacher unions continue to
play important roles in protecting the rights of teachers, especially in the
current climate of school reform. (Diane Ravitch)
·
Teacher unions assure that
teachers' rights are protected, sound the alarm against unwise policies, and to
advocate on behalf of sound education policies. (Diane Ravitch)
· Teacher unions fight to protect teachers’ first
amendment rights, allowing them to advocate for children and schools without
facing retaliation. (alternet.org)
· Teacher unions provide due process, legal protection,
and advice.
·
Strength in numbers.
Teacher unions build power to the bargaining position of the union for contract
and labor negotiations.
Potential Status (Depending On Election):
Tenure:
He states
“Why do teachers get a job for life? One-third of the teachers in the system
shouldn't be, and we can't do anything about it. We have to attract great
teachers by rewarding them well" through merit pay.
Pensions:
·
During the IEA RA Gubernatorial debate, Rauner talks about his plans
(17:15) to dump teachers into a 401(k) plan, which do not
guarantee even a single penny in retirement.
·
Furthermore, according to Kurt Erickson in CapitolFax, "Rauner wants to freeze state worker
pensions at their current levels and switch everyone to a 401(k)-style
retirement savings program."
"This is ironic because Rauner became rich, in part, by investing and
managing public pension funds, including the Illinois Teachers Retirement
System."
"While school teachers, prison guards, university employees and child
welfare workers are staring at a revamped pension plan that will bite into
their future earning power, Rauner is enjoying the fruits of his
investments."
"He reported earning over $100 million in the past three years alone.
Reports indicate he has eight homes, including ranches out West, penthouses in
New York and Chicago, and a beach house in Florida."
"Rauner’s handlers didn’t make him available to discuss the disconnect
between Rauner’s riches and his position on ending pension plans for public
servants. And yet he didn't support SB1 because it didn't "go far
enough.'"
Charter Schools:
·
Here is an interesting Sun Times article about Rauner and his education views
and ties to charters. It also discusses his shady
maneuvering to get his own daughter into an elite public school, not a
charter.
·
Lots of profits to be made with
Charters. No wonder certain people are
behind them. Rupert Murdoch, media
proprietor and billionaire, recently described the education 'emerging market' by
saying, "when it comes to K through 12 education, we see a $500 billion
sector in the U.S. alone."
·
According to an interview with Diane
Ravitch, former U.S. Assistant Secretary of Education, there are plans
to completely privatize education within 20 years, and completely
privatize many cities within 10 years.
·
In this must-see interview called Public Schools For Sale?, Diane
explains everything and everyone behind the attacks on teachers and public
education, including pensions and job security.
Diane Ravitch says,
"Charter schools are not public
schools. They're corporations."
"The charter schools are not
outperforming the public schools."
"I see billionaires picking on
teachers. I see billionaires who have never gone to public schools
proclaiming how schools should be run and how teachers should teach."
"I have kind of a visceral negative
reaction to the idea that someone who is a billionaire doesn't want to see a
public employee retire with a decent living pension that they've put into all
their life."
· Ravitch
discusses ALEC and the foundation of the privatization movement. Very
sobering. It is a 26 minute interview that anyone who cares about public
education should watch. Or
here is a full transcript.
Collective Bargaining:
·
Rauner mentions his role models and mentors during the IEA-RA debate
(32:45)--Governors in other states--Gov. Scott Walker, Gov. Mitch Daniels, Gov.
Rick Snyder, Gov. Chris Christie, and Gov. Jeb Bush. And most
of them have attacked teachers' rights, benefits, salaries, and pensions,
and perhaps most importantly—collective bargaining rights. Furthermore, since the debate, Wisconsin
Governor Scott Walker is under federal
investigation for a nationwide “criminal scheme” to violate election laws.
· Sites like TeachersUnionExposed.com are meant to weaken our voice and our
rights. There are a couple commercials on this site if you scroll
down to "TV Ads" on the home page.
· See next page.
Salary and Merit-Pay:
As quoted by the Wheaton Patch, Rauner said, “We have to
attract great teachers by rewarding them well." This, of course, would be
done through merit-pay.
·
Early in the IEA RA Quinn vs.
Rauner debate (7:45), Rauner says that teachers make up the single
most important profession in our society--more than doctors, more than
lawyers.
Yet, Rauner wrote an Op Ed.
piece in the Chicago Tribune titled "Government Unions and the
Downfall of Illinois" saying that Illinois teachers are
23% overpaid compared to their counterparts in neighboring states. He
rants about the unions and how public sector employees and unions are
responsible for Illinois' financial mess.
· According to a Sun Times article, (http://www.suntimes.com/news/metro/24679675-418/bruce-rauner-ad-promotes-charters-but-cps-clout-call-dogs-him.html#.U6jg0WBOU5t)
“Bruce Rauner’s [commercial] takes a direct shot at ‘union bosses’ and works to
appeal to families, saying he backs merit pay and reform that wrests
control from unions.”
·
Although
most school districts in Illinois pay teachers based on experience and
education levels, more than 500 school districts
nation-wide have implemented merit-pay systems
already (Maine, Florida, Montana, Texas, etc.). They sell the fact that
teachers can earn more. And a few teachers will
earn more than they normally would on the traditional salary
schedule.
But just like those road-side signs near busy intersections that say,
"Earn 90k per week at home," it is a hoax. Often, overall
average teacher salaries are decreased--substantially in some states and
districts. It is a deceitful way to pay teachers less overall.
Union Membership:
·
Rauner has
repeatedly promised in his campaign to go after the union bosses, including IEA
President Cinda Klickna. What he really
means is that he will go after teachers and other public union employees.
·
Rauner chose
Wheaton City Councilwoman Evelyn Sanguinetti as his running mate for
Lieutenant Governor. Check out this 3 min. promotional video for the Rauner campaign. At 2:15, she
pretty much says that teachers in unions are failures.
·
See two
important charts on following page:
·
As union
membership shrinks, a higher share of income going to the wealthiest 10% (see
chart below).
· As union membership shrinks, so does
the middle-class (see chart below).
There is problem with elections such as these where no good choices exist. Todd addresses the hot button issues without a word of criticism of the current governor. It is required by the creators of the panic-machine because any criticism of Quinn is seen as helping Rauner. All critical faculties (pun intended) go out the door. Tenure? Quinn supported SB7. Pensions? Quinn was born to end them. Charters? Quinn supports them and worked with Madigan to grease the way for UNO's $100 million state grant. Collective bargaining rights? Quinn is the first governor in Illinois history to unilaterally abrogate a state employee contract, which he did with AFSCME. Rauner deserves the criticism. But the full truth is required. Not a white wash of the current governor's record.
ReplyDelete- Fred Klonsky