Keeping up the fight to fix Tier 2
AFSCME and our allies in the We Are One Illinois coalition are vowing to carry the fight for pension fairness forward into the spring legislative session, but it’s going to take the involvement of every AFSCME member to get it over the finish line.
Over the past year, union members built a powerful movement dedicated to ending the unfair pension system in which public employees hired after Jan. 1, 2011 must work longer for a lesser “Tier 2” benefit than “Tier 1” employees hired before that date. Members have educated lawmakers, lobbied, mobilized, strategized, and stood together for dignity and security in retirement.
They packed eight town hall meetings from one end of the state to the other. On Nov. 13, they came to the State Capitol, some 3,000 strong, and held one of the largest rallies the Capitol rotunda had ever seen.
Coalition members sent tens of thousands of emails to legislators over the course of a few weeks. On Jan. 6, public employees shut down some legislators’ phone lines as the coalition generated some 6,000 calls in a day.
But more work remains to be done to truly address the Tier 2 crisis this spring.
Lawmakers must see urgency of problem
Every day that lawmakers refuse to address the Tier 2 pension problem, it gets worse.
“Tier 1 employees are already retiring,” said Chris Bessant, a mental health technician at Shapiro Developmental Center and a member of AFSCME Local 29. “With such a massive gap in benefits between Tier 1 and Tier 2, we’re already seeing retention of new employees suffer.”
Tier 2 requires employees to contribute the same amount from every paycheck toward their pension but to work longer than their Tier 1 coworkers before they can collect their benefits. When they do retire, the benefit they receive isn’t enough to ensure security and dignity.
The disparity is worsening the already brutal staffing crisis in vital public service jobs. Tier 2’s inadequacy has made it harder to attract good candidates to careers in public service.
“Fixing Tier 2 is not just a matter of fairness; it’s a necessity for ensuring the future of public service,” said Rachel Overstreet, a social caseworker in Cook County and a member of AFSCME Local 3696. “The current system leaves hard-working individuals paying into a retirement plan that provides fewer benefits and less security.”
That’s why Sen. Robert Martwick introduced the Fair Retirement and Recruitment Act, a union-backed bill that would make numerous improvements to Tier 2, including bringing the final average salary calculation back in line with Tier 1, implementing a 3% across-the-board cost-of-living increase, aligning the Tier 2 retirement age with Tier 1, and more.
When the coalition pushed for a vote on the legislation in January, some legislators agreed that the Tier 2 system desperately needed fixing. But far too many others insisted the bill was too costly and wouldn’t commit to support it.
On Jan. 22, the Commission on Government Forecasting and Accountability (COGFA) released a new report claiming the Fair Retirement and Recruitment Act would add billions of dollars to the state’s already hefty pension debt.
Grassroots involvement is key
The headwinds against pension improvements are strong, but they can be overcome if every public employee steps up to demand change.
The grassroots efforts of AFSCME members will be key in this fight moving forward. The AFSCME legislative team will be hard at work all session building support for the bill, but they can’t do it alone. They need AFSCME members everywhere to rise up and demand their lawmakers pass the bill.
“Lawmakers need to feel pressure from their constituents. They need to see that Tier 2 is a real problem in the communities they represent, and they need to know their constituents are demanding change,” said Joanna Webb-Gauvin, Council 31’s legislative director.
Sen. Martwick has already committed to reintroduce the Fair Retirement and Recruitment Act in the upcoming spring legislative session, but it’s become clear that in order for lawmakers to pass a bill to fix Tier 2, it will need to be accompanied by additional revenue for the state—something AFSCME and our allies stand ready to advocate for.
“This fight is about more than retirement; it’s about the quality of life we can expect after years of service and the legacy we leave for future generations,” Overstreet said.