Retiree News

UPC pushes disinformation on pension laws

By Al Korach

By the time my readers see this page we shall have returned from our third winter as Chicago school retirees in Florida. My wife and I have enjoyed this experience and look forward to returning again this November. We just do not miss shoveling snow and the below-zero weather. When I return I can look forward to the May House of Delegates meeting (May 7), the PACT Second City Celebration (May 4), CTU Fashion Show (May 24), Pension Insurance meeting, Retiree Functional Group meeting, CTU retiree & RTAC luncheons and the Rules and Election Committee.

I guess I’ll soon be back in the proverbial groove.

My congratulations to CTU President Deborah Lynch who made it crystal clear the CTU’s non-support of the possible pension raid called the “Pro-Plan.”

As of April 2, 2003, this was the first statement I’ve seen in writing regarding the non-support of this plan from any major teachers’ organizations. I received many calls from CTU, UPC and RTAC members regarding this possible raid on our fund. I guess that many teachers remember my very vocal opposition to the first pension raid of the early 1990s. I’ll still hold my breath because you never know what politicians will do when their backs are up against the financial wall. Those who remember the last big raid will also remember that the former union leadership was behind the raid, although they tried to mask their support with a lot of verbiage.

The members and trustees of the Public School Teachers’ Pension and Retirement Fund are also to be complimented. In their March 2003 pink newsletter they have also indicated that, “The trustees oppose any changing in funding that would weaken the current financial condition of CTPF.”

I find it strange to hear that many opposition “United Progressive Caucus” members are making the so-called “Pro-Plan” one of their political agendas. What is stranger is their criticism of the CTU’s leadership when it was many of them that sat idly bye while the last raid diverted millions from the Chicago Teachers’ Pension Fund. What is it that they say about people in glass houses? Some of the people who are now opposing the Pro Plan were in the forefront of supporting the raid of the early 1990s — and of ostracizing me for opposing them. Not only glass houses — short memories.

Democratic governor Rod Blagojevich is engaged in some creative financial juggling with “pension obligation bonds” to help cover more than $2 billion in state pension fund obligations through mid 2004. It seems that he was able to get enough Republican legislators aboard to help get this bill passed. Borrowing is not an exact science, and along with benefits there could be some future financial pitfalls. What is dangerous about this plan is that if the pension funds helped by this legislation find that their rates of investment returns do not exceed the rate of interest on these bonds we could be back to square one. Another thing to remember is that any bond plan gives its biggest “yield” up front to the investment bankers who broker the deals. Anybody want to check out how many millions of dollars will go to pay the brokers on these deals? Remember: that amount will dwarf the dollars going to any group of a dozen or two dozen teacher pensioners.

While Governor Blagojevich is trying to stem the cash problem with Illinois public pensions other governmental politicians have struck pension pay dirt. In articles by Tim Novak in the Chicago Sun Times, April 6, 2003, titled “State Lawmakers’ Pension Jackpot” featured retired State Senator Arthur Berman. Novak reports that Art Berman is now king of the Illinois pensioners. Berman’s pension of $164,612 a year is almost three times larger than his final salary was as a legislator. According to Novak, after quitting his school board job to collect this high pension, Berman went back to work again with the same school system as an outside consultant adding another $80,000 a year to his $160,613 pension.

Is was Paul Vallas who first hired the recently retired Art Berman (along with dozens of other officials with clout, at salaries far above those paid to Chicago teachers). Is Berman still working out of the office he had until a few months ago at 125 S. Clark St., working for the Chicago Board of Education at a pay that is more than double that of the average teacher (and triple that of the most recent teacher retirees)?

Through a loophole passed by past legislators he and others were able to jack up their pensions based upon the salary that Vallas gave them in a higher paying position with the Chicago Board of Education. We are soon going to hear the board of education cry poverty as the CTU enters into contract talks and pension improvement with the board. It still is whom you know. It seems that Illinois legislators that set all governmental pension laws in the state have given themselves the best benefits.

It is interesting to note that prior to his articles on February 20th and March 20th, Sun Times reporter Mr. Novak made FOI requests to the Chicago School Teachers’ Pension and Retirement Fund of Chicago regarding the pensions of Thomas Reece, Daniel Walsh, Cozette Buckney, Robert Saddler, Richard Kimsey, Thomas J. Corcoran, James P. Maloney, Charles R. Vietzen, Joseph P. Hannon and Ruth Love.

Mr. Novak reported that he also requested for the above individuals the final salary rate used to determine their pension, the initial pension, any reciprocity from other pensions and their amounts, and cost of living raises. Mr. Novak requested similar information on the board’s retired members. A separate request under the FOI Act requested the annual pensions for Blanche Manning, Nancy Drew Sheehan and Jesse White.

The FOI requests by Mr. Novak had been fulfilled and resulted in April 6, 7, 8, and 9th articles regarding pensions of public and union employees in the public sectors.

Substance has had many articles calling attention to the large differences in pensions between the late leadership of the Chicago Teachers Union and the average working teacher. I feel that Mr. Novak’s articles had brought to light many interesting facts. I’m sure that individuals in high positions have always taken care of themselves. They always respond when questioned, “Well, it’s legal.”

Substance hears that former CTU president Tom Reece’s pension has now reached $158,000 per year, but that Reece is still agitating to keep his old “United Progressive Caucus” on track for a return to power in 2004. Because of Reece, many Chicago teachers who retired in the early 1990s have to return to work to make ends meet. Those who retired since the Vallas era began in 1995 (when Reece gave Vallas the first of two low-ball sweetheart union contracts) have seen their pensions reduced to about half- to three-quarters of what they would be making had they gone to work for suburban school districts instead of sticking it out in Chicago until the millennium.

Yet Reece wants to return to political power. Don’t some people have any shame?

To correct any gross inequities in pension, administration would take legislative action. I’m sure that the legislature would not do anything that could upset their personal retirement plans. So! For the time being those with clout will be jockeyed around from one high paying public job to another higher paying public job to spend a few months jacking up their pensions. In the meantime the governor will try to levy new taxes and get a bond issue to help pay for this.

I’m going to deviate a bit from legislative issues and spend a little time on elder health issues. We all remember in our teens and twenties most of us hardly saw a doctor. My wife and I are now in our 70’s and although we are both in relatively good health for our ages, a trip to the doctor’s office is now a standard event. Things happen to our bodies as a part of aging.

A large part of senior medical difficulties can be attributed to our eating habits. Our entire social life seems to revolve around food and, “Let’s go out for a bite.” I had a situation relative to bad eating habits that put me in the emergency room for a few hours. I suddenly found that my weight had gotten away from me and my diet that consisted of large amounts of red meat was causing me much distress as well as an increase in blood pressure. Along with this problem a blood test indicated a possibility of cancer. Luckily, biopsy reports by two pathologists all came up negative. These incidents caused me to pause and take a good hard look at my retired lifestyle.

Just as stopping smoking, reducing you caloric intake is not easy. After six weeks on my diet plan I suddenly find that I now no longer have the desire to put it away. When we do go out, I usually end up taking over half my food home in the white box. My wife and I also will split a large dinner. I still swim every morning, but the major emphasis is still to mentally and emotionally control your eating habits. It’s not easy. I used to think very obese individuals could control their weight with just some self-discipline. Some of us will need more help

Now! It’s one thing for a doctor to give you sound medical advice and another for you to follow that advice. Pain is a great motivator. I’ve taken off about 31 lbs. And have taken my blood pressure down to 125/76 as of the last reading. I still do not feel like I did when I was 20, but I hope to be around for more years. I suddenly enjoy the feel of needing suspenders holding up my pants.

I’m going to skip my high school reunion this year. The last one I went to was quite depressing. You remember the story about the bottle of wine that the last surviving member of the group gets to drink. I had that feeling at the last reunion. I guess I’d rather remember my high school class as it used to be and continue on with my life. This is just one man’s opinion. For me, counting who is not there from the class of ’52 is depressing.

On the lighter side — my wife and I took the motorcycle and went down to South Beach. The first thing I discovered (after the topless beach) was that I arrived there 40 years to late. All those old hotels where the older people like my mom and dad used to rent a room with a hot plate and spend the winter sitting on the front porch are gone. Upscale restaurants and discos catering to a very youthful crowd have replaced the old hotels. It was still a very interesting place to see. This was especially true at the time of spring break.

I read where King Daley, in the still of the night, took over Meigs Field. I mention this to let my retiree readers know that with a computer you are never far from home. I can start out the day down here with the Chicago Tribune, Sun Times, New York Times, CTU, Chicago Teachers Pension Fund, RTAC and hundreds of other web sites on line. All one has to do is check with the library and other institutions and you can also become computer literate usually free of charge. You can also ask your grandchildren’s help as I did to get started.

Does every retired teacher still follows news from his old specialty? On an interesting sports note, that is not too unfamiliar to educators, we have to look at both sides of the relationship between schooling and sports. These things have to be kept in balance. The graduation rates of college Division I basketball players was always an item of embarrassment to physical education teachers and sports enthusiasts when they were published. The latest is as bad as it gets, but as a retired physical education teacher, this was just old news to me. To hear that the four top-seeded teams — Oklahoma, Texas, Arizona and Kentucky — had a zero graduation rate (or to put it correctly did not have a graduation rate at all) is shocking. Not one graduate. I think it’s time to just call the situation what it really is. For many it’s not getting an education but just warming up for the hope of playing in the pro leagues.

I’ll see you all soon. I remain on-line at crane47 @ AOL.com.