IL AAUP Resolutions

IL AAUP Resolution on the Need to Protect the Current Pension System for Employees of Public Colleges and Universities

Adopted April 18, 2009*

Whereas, The State of Illinois has significantly underfunded its pension systems by legislative and gubernatorial decisions from FY 1981 to FY 1991 and FY 2006 to FTY 2009 creating an unfunded liability of over $ 54.4B as of June, 2008, the largest dollar amount in the nation;
Whereas, Illinois public college faculty and staff are not covered by social security that requires an employer FICA tax contribution of 7.65 % which means that the state is contributing little more than the amount required for social security and Medicare in contrast to other states that cover all or half the cost of contributions to retirement systems such as TIAA/CREF in addition to the FICA amount;
Whereas, Illinois public college faculty fall behind their IBHE comparison peer groups in benefits;
Whereas, Participants have continually paid their full share to the retirement system and the interest on their contributions served to decrease the state’s liability for pension shortfalls;
Whereas, Failure of the state to make its mandated contributions is the preeminent cause of the shortfall full funding of the state pension systems;
Whereas, There are numerous editorial calls for the more of pension costs to be assumed by future employees and a proposal by the Governor would exacerbate the gap in benefits between Illinois institutions and other colleges and universities competing to attract new or hire away top quality faculty;
Whereas, The budget proposal offered by the governor calls for rewriting existing law on funding of pensions to continue the underfunding of state pension systems; and
Whereas, Private universities and colleges may follow any precedent set by the state in transferring costs of benefits (including health insurance) to their faculty and staff;
Resolved, That the American Association of University Professors of Illinois calls upon the legislature and governor to recognized the necessity of fully funding its pension obligations in amounts established in existing state law;
Resolved, That the legislature and governor recognize the negative impact on retention of faculty and staff by requiring a 2% increase from current employees, thus further widening the gap in salaries and total compensation as compared to peer institutions as documented by AAUP surveys and current IBHE reports available to prospective and current faculty;
Resolved, That the state undertake the necessary steps which must include revenue enhancement to enable the state to remain solvent and meet its obligations to participants in the pension system, and
Resolved, That the AAUP of Illinois urges its members and faculty, staff and students to contact legislators personally to stress the need to deal with this issue of unmet pension obligations.

Illinois AAUP Resolution on the Need to Enhance State Revenue

Adopted April 18, 2009*

Whereas, The State of Illinois has had a consistent structural deficit in revenue for the last several years, one currently estimated to range between 4% and 5% or $2.5 Billion to $4 Billion dollars;
Whereas, Illinois has reduced sharply its support of four-year public colleges causing significant increases in tuition levels and never funded its community colleges at the level envisioned in state law;
Whereas, Higher education, public and private, and the IBHE have established affordability as a primary goal to ensure student access but tuition increases have not been matched by increases in MAAP and other scholarship grant and loan programs; and
Whereas, The state is lagging in paying its bills by as much as six months, threatening the economic well-being of business relying on state reimbursement for goods and services including medical and prescription costs;
Resolved, To ensure adequate support of Illinois higher education, the American Association of University Professors of Illinois calls upon the legislature and governor to adopt legislation to ensure a large, permanent increase in state revenue; and
Resolved, That the AAUP of Illinois urges its members and Illinois citizenry to contact legislators personally to stress the need to achieve a sustainable increase in state revenues.

*The information in this resolution is current as of the date of adoption of the resolution. Many changes relative to proposed legislation will occur before adoption of a state budget. Individuals need to monitor events in Springfield and continue to express their views to the legislature and governor.