Tier 1 union members should support this plan – not just for the good of the union, but because it is in your own rational self-interest to do so. Tier 2 divides the union and therefore opens up Tier 1 pensions to attack. Anti-union organizations in Illinois will attempt to reduce Tier 1 benefits as early as November 2028. Find out how.
Tier 1 is Constitutionally Protected…For Now.
Article XIII, Section 5
“Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.”
In re Pension Reform Litigation (2015)
This protection has been interpreted by the Illinois Supreme Court to apply as soon as an individual starts working in a position covered by a public retirement system. This case resulted from legislation that the Democratic IL House and Senate tried to pass legislation reducing Tier 1 benefits. This means that pension benefits cannot be
diminished.
Who is Protected?
Currently, only Tier 1 employees are protected by this clause. Federal law prohibits state pension
systems to be worse than Social Security, and Tier 2 is currently in violation of those laws. Tier 1 public employees represent about 7% of the Illinois workforce.
Illinois Policy Institute’s Plan to Destroy Tier 1 Pensions
(and why it will work).
Illinois Policy Institute is a nonpartisan, libertarian-oriented think tank that successfully helped argue a case to the U.S. Supreme Court to get rid of fair share union dues. After that, they successfully convinced Illinoisans to reject the Fair Tax, which would have led to modest tax reduction for 97% of Illinoisans. I.P.I. has identified Tier 1 pensions as posing a financial crisis for Illinois.
A constitutional amendment is required to reduce Tier 1 benefits. Illinois Policy Institute has been working on the push for such an amendment since 2022. Their goal: remove these protections from the constitution during the next possible constitutional convention in Illinois: Nov. 2028.
STEP ONE: Educate the Public
After successfully leading the marketing push that led to Illinois voters rejecting the Fair Tax, Illinois Policy Institute shifted their focus to marketing against Tier 1 pensions. The groundwork for this marketing campaign has already been laid and can be accessed online right now. Their marketing will focus around three core ideas:
- Tier 1 pension benefits are unsustainable and jeopardize the solvency of Tier 2 pensions
- Offering pension choice will improve pensions for most public employees (all Tier 2 employees)
- Passing a constitutional amendment will prevent financial crisis in Illinois
STEP TWO: Unite a Coalition
Illinois Policy Institute is a nonpartisan organization with libertarian policy beliefs. They have had success influencing both Republican and Democratic law makers and voters. Their most notable goal for a new coalition partner: Tier 2 public employees. By acknowledging the current divide in public unions, Illinois Policy Institute hopes to cut off the ability of unions to use their best tool for fighting against pension reduction: work stoppages, which require 75% of local membership to approve.
STEP THREE: Open the Constitutional Convention
The Illinois Constitution can be amended in two ways: through a 3/5ths vote in both chambers of the General Assembly followed by a popular vote, or through approving a constitutional convention every 20 years initiated by the people. The next time Illinoisans will vote on whether to open up the constitution is November 2028. Illinois Policy Institute is counting on 93% of the Illinois workforce to rally against Tier 1 public employees to open up the convention and amend Article XIII, Section 5 of the Illinois Constitution.
STEP FOUR: Destroy Tier 1 Pensions with New Law
Illinois Policy Institute will help lobby for the passage of new pension reform – similar to the push that led to the creation of Tier 2 – that would strip still-working Tier 1 employees of their benefits. Governor Pritzker’s focus on keeping a balanced budget means he is unlikely to oppose a bill at this stage.
Opening the constitutional convention will be the big hurdle to this plan. It will require a very public marketing campaign. If the constitution is open and the pension protection removed, the rest of the plan is relatively easy. Tier 2 reform was introduced and passed through the General Assembly in one day. Tier 1 reform could meet the same fate, and the union will not have the time or numbers to fight it.
There may not be enough voters within Illinois public unions to stop the convention. The union may not possess enough political capital to prevent a new pension reform law from passing. But if we can show strength through solidarity, politicians will have to consider whether a new law is worth state education shutting down. If we build sufficient numbers prepared for collective action now, we can cut off the plan to destroy Tier 1 pensions before it even begins.
Four states – Michigan, Arizona, Pennsylvania and Utah – have already diminished the high pensions of their “Tier 1” equivalents in similar moves. Illinois Policy Institute has made it their top priority to make sure Illinois is next.
How We Stop This Plan – Together
Tier 2 members currently do not have a reason to fight against Tier 1 pension reduction. Tier 1 pensions do not help with current labor shortages and do not impact the future of education. Therefore, Tier 2 members have little reason – neither personal nor altruistic – to protect Tier 1 pensions. The only way to ensure that Tier 2 members will stand with Tier 1’s against the removal of Article XIII Section 5 is to ensure that Tier 2 is also protected by Constitution. Only then will the union be united against a common enemy.