Illinois Rep. Jay Hoffman Addresses SIUE SUAA on Pension Reform Efforts

Illinois Rep. Jay Hoffman Addresses SIUE SUAA on Pension Reform Efforts

State Representative Jay Hoffman Discusses Pension Inequities and Reform Efforts

State Rep. Jay Hoffman (D-Swansea, 113th District) spoke to the Southern Illinois University Edwardsville Chapter of the State Universities Annuitants Association (SUAA) regarding the longstanding inequities in the pension system for public sector employees hired after 2011. He emphasized the urgent need for corrective action and highlighted ongoing efforts to address these issues.

Hoffman, who serves as Assistant Majority Leader and has a long history of advocating for fair and equitable pensions, addressed the SUAA on Tuesday, Sept. 23, at SIUE's Morris University Center. Hoffman made it clear that he did not support the implementation of the Tier 2 pension program, citing concerns over fairness and compliance with federal regulations.

"When they voted on Tier 2, I did not support it," said Hoffman. "It isn't fair and is running closely to being in violation of the 'Safe Harbor' federal law, which would provide for penalties to our system if we don't fix it."

He stressed the importance of addressing the inadequacies and inequalities between Tier 2 and Tier 1, acknowledging that returning to Tier 1 is not financially feasible. However, Hoffman affirmed that there is a movement to reform Tier 2 and ensure fairness within the system.

As head of the Pension Working Group, Hoffman has been collaborating with the governor's office to develop sustainable solutions. The immediate priority is to resolve the Safe Harbor issue to prevent federal penalties. Additionally, there is a commitment to ensuring the pension system is fully funded, with a goal of reaching 90 percent funding by 2045 and achieving full 100 percent funding by 2048, in alignment with Gov. J.B. Pritzker's priorities.

Hoffman has also worked with labor groups and other stakeholders to sponsor Senate Bill 1937, which aims to create a fairer pension system. The bill was filed at the close of the legislative session and is currently under review by the governor's office to assess its affordability.

Hoffman described the disparity between the pre-Tier 2 pension system and the current system as draconian, noting that these differences hinder the state's ability to attract and retain teachers. In contrast to Illinois, other states offer more advantageous pension terms, including earlier retirement ages and higher long-term benefits.

Hoffman highlighted that some Tier 2 pension recipients are losing purchasing power because their cost-of-living adjustments do not keep pace with inflation. Additionally, the state is losing qualified teaching candidates to other states where the requirements for retirement are less onerous, such as not having to teach until age 68.

Efforts to address these pension inequities will continue during the upcoming Veto Session, scheduled to begin on October 14, and into the following spring. Hoffman expressed optimism that this timeline would allow for meaningful progress.

"We will be looking at where we can bring some parity and fairness into the system," noted Hoffman, "and still make sure that it's done actuarial financially sound fashion."

"On behalf of the SIUE Chapter of SUAA, thank you to Rep. Hoffman for visiting with our members," said Keith Becherer, SIUE Chapter President. "We are fortunate to have Rep. Hoffman be such a strong advocate for Higher Education and all employees in the public sector."

The main objective of the SIUE Chapter of the State University Annuitants Association (SUAA) is to preserve and advocate for University employee benefits, fair retirement plans and health insurance, and overall funding to higher education. Our active and dynamic chapter has nearly 500 dues-paying members amongst the 12,000 statewide members of SUAA. For more information on SUAA, visit suaa.org.

Photos:
IL State Rep. Jay Hoffman (D-Swansea, 113th District), Assistant Majority Leader, talks to members of the SIUE Chapter of the State Universities Annuitants Association.