THE ILLINOIZE: Guest post: Illinois AFL-CIO...Closing statements begin in Madigan trial...Planned Parenthood closing Illinois clinics

January 23, 2025

Good morning, Illinois.

This is our last newsletter with guest posters. Thanks to Bernie Schoenburg, Scott Reeder, Rodney Davis, Cheri Bustos, Amy Korte from IPI and Pat Devaney of AFL-CIO (below) for helping us out so I could get some more time with the baby the last few weeks.

I’ll be back at it full time starting next week, so hold on to your hats. I’ve got piles of stuff I’ve been waiting on digging into.

May be a good time to renew your subscription if it has lapsed over the last few weeks-

Let’s get to it.

FIX TIER 2 TO SECURE FAIRNESS AND A FUTURE FOR ILLINOIS WORKERS

By Pat Devaney, Illinois AFL-CIO

For over a decade, workers in Illinois have been bearing the brunt of an unjust retirement system. The creation of the Tier 2 pension system in 2011 may have been intended as a cost-saving measure during a time of fiscal crisis, but it has created a system that is not only unfair to workers but also unsustainable for the state’s long-term interests. Today, we face an urgent need to address the inequities and failures of Tier 2 before it does lasting damage to both our workforce and our state.

The Tier 2 pension system, which applies to public employees hired after January 1, 2011, forces workers to pay a substantial percentage of their income into a retirement system that offers drastically reduced benefits compared to Tier 1. These employees are expected to contribute a significant amount from their salaries, yet the value of their pension is smaller than what they contribute, often falling short of what is needed to maintain a basic standard of living in retirement. This disparity is not just unfair—it’s unsustainable.

For many Tier 2 workers, the situation is even more dire because they do not qualify for Social Security. While Tier 1 pensions were designed to function as a standalone retirement system, Tier 2 pensions provide benefits so scant that they risk falling below the federal minimum required by Social Security guidelines. If this happens, Illinois could face severe penalties and be forced to increase contributions—a scenario that would compound the fiscal pressures Tier 2 was supposed to alleviate.

This broken system has created a workforce crisis. Illinois relies on public employees to teach our children, protect our communities, and provide essential services that keep our state running. Yet the inequities of Tier 2 have made it increasingly difficult to recruit and retain skilled workers. Why would a young teacher, police officer, or firefighter choose to work in Illinois when they know their retirement security will be far less than what their counterparts in neighboring states receive? The Tier 2 system not only undermines the financial futures of individual workers but also threatens the quality and stability of public services across the state.

The consequences of this system are already evident. Schools are struggling to fill teaching positions, municipalities face shortages of first responders, and state agencies are unable to attract the talent they need. Morale among many public employees is at an all-time low, as Tier 2 workers feel undervalued and exploited. This is a crisis not just for our workforce but for every Illinoisan who depends on public services.

Fixing Tier 2 is not just a moral imperative; it’s an economic necessity. When workers feel secure in their futures, they are more likely to stay in their jobs, build careers, and contribute to their communities. Conversely, high turnover and staffing shortages cost taxpayers money and reduce the quality of public services. Addressing the inequities of Tier 2 will strengthen our workforce and enhance public services, benefitting residents in every corner of our state.

So, what can be done? First and foremost, the state must increase Tier 2 benefits to align more closely with those of Tier 1. This could include raising the pensionable salary cap, adjusting the retirement age, and ensuring that benefits keep pace with inflation. Additionally, Illinois has no choice but to address the Social Security “safe harbor” issue, even though it only applies to a small sliver of retirees. While these changes will require investments, the long-term benefits for Illinoisans far outweigh the costs.

It’s also essential to engage with unions and workers in crafting these reforms. Public employees know better than anyone the challenges they face, and their input is invaluable in creating a system that is both fair and functional. By working together, we can develop solutions that address the needs of workers while maintaining fiscal responsibility.

The good news is that momentum for change is growing. Labor leaders, policymakers, and community advocates are increasingly recognizing the need to fix Tier 2. The We Are One Illinois coalition worked with lawmakers to introduce the Fair Retirement and Retention Act, a proposal that will address the main shortcomings of Tier 2, and thousands of our members have engaged their lawmakers to educate them on this important issue.

We cannot afford to wait any longer. Every year that passes without action deepens the inequities and weakens our state’s ability to attract and retain the workforce it needs.

I have seen firsthand the dedication and sacrifices of Illinois’ public employees. These are the people who teach our children, protect our streets, and care for our most vulnerable residents.

They deserve better than a retirement system that shortchanges them and devalues their contributions.

Fixing Tier 2 is about more than pensions; it’s about fairness, dignity, and the future of our state.

Illinois’ public employees give their all to serve our communities. It’s time for us to stand up and ensure they have the retirement security they deserve. Let’s fix Tier 2—for our workers, for our state, and for the generations to come.

Pat Devaney is the Secretary-Treasurer of the Illinois AFL-CIO and a leader of the We Are One Illinois coalition.

OTHER NEWS

Closing arguments begin in historic racketeering trial: 'Madigan abused the tremendous power he wielded' (Chicago Sun-Times)

When former Illinois House Speaker Michael J. Madigan got on the witness stand earlier this month to tell his side of the story, he said things to jurors that were “just not plausible,” a federal prosecutor argued Wednesday.

Key parts of Madigan’s testimony amounted to a “facade,” she said. The laughter heard from Madigan on a notorious recorded call — in which he joked about certain ComEd contractors making out “like bandits” — is “entirely inconsistent” with what he told the jury, she argued.

And as closing arguments got underway in Madigan’s historic racketeering conspiracy trial, Assistant U.S. Attorney Julia Schwartz told the jury that “legislation should not be bought.”

“Power and profit,” she said. “Michael Madigan and Michael McClain conspired to enhance and preserve Madigan’s power and line Madigan’s pockets.”

Schwartz spent more than two hours arguing to the jury Wednesday as Madigan’s lengthy trial began to draw to a close. She said McClain was Madigan’s “right-hand man” who helped Madigan’s other “cronies” pocket $1.3 million from ComEd through “sham” contracts.

“Time and again, Madigan abused the tremendous power he wielded,” Schwartz said.

The closing arguments mean jurors might finally see a light at the end of a very long tunnel. Madigan’s trial has lasted nearly four months. It featured more than 60 witnesses. And now, attorneys have predicted closing arguments could last days.

After jurors left the courtroom to head home Wednesday, Assistant U.S. Attorney Amarjeet Bhachu told U.S. District Judge John Blakey that the feds’ initial closing argument would likely continue through the end of the day Thursday.

Related: Ex-House Speaker Michael Madigan ‘abused the tremendous power he wielded,’ prosecutors say as closing arguments begin (Chicago Tribune)

Planned Parenthood of Illinois announces clinic closures amid statewide surge in abortion patients after the fall of Roe. (Chicago Tribune)

Citing a “financial shortfall,” Planned Parenthood of Illinois announced Wednesday — on the 52nd anniversary of Roe v. Wade — that it will be closing four clinics across the state, including one on Chicago’s South Side.

The health center shutdowns come as Illinois is already grappling with a surge in patients traveling here from other states for abortion care after the U.S. Supreme Court overturned the landmark decision Roe v. Wade in June 2022, ending federal abortion rights.

The number of abortion seekers coming to Illinois — long known as a haven for reproductive health access nationwide — has skyrocketed over the past few years. Illinois clinicians provided more abortions for out-of-state patients than any other state in the nation in 2023, the first full year without Roe, according to data from the Guttmacher Institute, a research group that supports abortion rights.

Roughly 37,350 out-of-state patients traveled here for abortion care in 2023, more than triple the nearly 11,150 counted in 2020, according to estimates from the Guttmacher Institute. This was more out-of-state patients than any other state that year, including those with larger populations such as California and New York, the data showed.

As for the changes coming in Illinois, one of the Planned Parenthood clinics slated for shutdown is in Englewood on the South Side, a higher-poverty neighborhood in need of health facilities and other resources.

The other three clinics are in Ottawa, Bloomington and Decatur, according to a Planned Parenthood of Illinois statement.

Related: Bloomington's Planned Parenthood among 4 in Illinois to close (Bloomington Pantagraph)

Planned Parenthood of Illinois to close Englewood clinic, 3 others (Chicago Sun-Times)