Latest News
NIU, Higher Ed leaders to discuss Madigan pension plan Friday afternoon
May 25, 2012
A pension reform plan outlined by House Speaker Michael Madigan Thursday would shift costs to universities, reduce employee cost-of-living-adjustments during retirement, and offer employees a choice between accepting a significantly reduced COLA while providing continued access to the state retiree health care plan and maintaining the current COLA structure while eliminating both state retiree healthcare access and the application of future salary increments towards pension benefits.
Higher education leaders—including those at Northern Illinois University—will meet today with Speaker Madigan and other legislative leaders to explain the effect these potential changes will have on the quality of higher education in the state of Illinois and on retention and attraction of qualified educators and administrators to state universities. Full story >
Pension Message from President Peters
April 23, 2012
Dear Colleagues,
Friday afternoon Governor Quinn outlined the framework of his plan to resolve the state’s pension funding crisis. Briefly, the Governor’s proposal provides for 100% funding for pension systems by 2042 by making the following changes to the current plan:
- 3% increase in employee contributions
- Reduce COLA (cost of living adjustment) to lesser of 3% or ½ of CPI, simple interest
- Delay COLA to earlier of age 67 or 5 years after retirement
- Increase retirement age to 67 (to be phased in over several years)
- Establish 30-year closed ARC (actuarially required contribution) funding schedule
- Public sector pensions limited to public sector employment
In return for the changes above, employee pay increases would continue to be counted in the calculation of their pension, and employees would receive a subsidy for their health care in retirement.
The Governor’s plan also calls for phasing-in the responsibility for paying normal costs of pensions to each employer, including school districts, community colleges and public universities.
So what does the Governor’s plan mean for our faculty and staff at NIU who have never missed a contribution to their pension plan?
While there is no doubt the state’s pension plans are in terrible financial shape, the root cause of this problem is NOT the fault of the state employees. Nor is it the fault of the taxpayers of the state of Illinois. The root cause lies in decades of state underfunding of required pension obligations while redirecting resources to other priorities. To resolve this funding crisis, shared sacrifice is necessary.
Information on Gov. Quinn's Proposed Plan
to Stabilize the Pension System
April 20, 2012
- News Release & Video
- Fact Sheet (PDF)
- Public Pension Stabilization Plan (PDF)
- What the Rating Agencies Say About Illinois (PDF)
SURS Town Hall Recap
March 7, 2012
Northern Illinois University President John G. Peters sent a video message to NIU faculty and staff Wednesday, March 7, regarding the pension reform town hall meeting held earlier in the day.
Colleagues,
As part of our ongoing efforts to provide you with timely information regarding proposed changes to our pension plans, NIU hosted a town hall-style meeting this afternoon. Hundreds of current employees and annuitants attended.
At that meeting, Steve Cunningham, Vice President for Administration and Human Resources, and I presented an overview of the current situation including a brief history, implications for SURS and proposed legislation. We also discussed insights presented in the recent University of Illinois Institute of Government and Public Affairs report on this topic and had the opportunity to hear and answer questions posed by the audience.
Pension reform is a priority in state government this spring, so I encourage you to take the time to view the Town Hall meeting online, review the associated documents and stay engaged by following the issue on our state budget and pension website and offering your thoughtful comments and suggestions so we may best represent your interests.
Sincerely,
John G. Peters
President
View the video message >
View video and PowerPoint slides from today's meeting on pension issues >
President Peters, Steve Cunningham to host March 7 ‘town hall’ meeting on pension issues
February 29, 2012
NIU President John G. Peters emailed this message to the campus Wednesday, Feb. 29.
Colleagues,
As part of our ongoing efforts to provide you with timely information regarding proposed changes to our pension plans, the university will host a town hall-style meeting at 1:30 p.m. Wednesday, March 7, in the Carl Sandburg Auditorium of the Holmes Student Center.
At that meeting, Steve Cunningham, Vice President for Administration and Human Resources, and I will present an overview of the current situation including a brief history, implications for SURS and proposed legislation. We will also discuss insights presented in the recent University of Illinois Institute of Government and Public Affairs report on this topic, and will include a question-and-answer session. Specific questions may be emailed in advance to pensionquestions@niu.edu.
The entire program is expected to last approximately 90 minutes.
For those unable to attend the event, NIU Media Services will live-stream the event at NIU Today (www.niutoday.info). That stream will be archived on the State Pension & Budget Update website (www.niu.edu/statebudget/) and available for viewing at your convenience.
Pension reform is a priority in state government this spring, so please take advantage of this opportunity to hear the latest news on this important topic.
For more information about this event, and about pension issues in general, visit the NIU State Pension & Budget Update website.
Sincerely,
John G. Peters
President
State Pension Update
February 10, 2012
Northern Illinois University President John G. Peters sent a video message to NIU faculty and staff Friday, February 10, regarding a recent analysis of Illinois’ public pension problem.
Colleagues,
The prestigious Illinois Institute of Government & Public Affairs has released an insightful analysis of Illinois’ public pension problem and proposes a set of reforms for the SURS that meet the standards of the Illinois constitution and provides fiscal sustainability for the system going forward. It is built on the concept of shared responsibility among the state, its universities and employees.
Please take the time to view the video and to click the link below for more information about this insightful report and the proposal contained within. Thank you for your time and thoughtful consideration.
Sincerely,
John G. Peters
President
