A BRIEF HISTORY OF SUAA
excerpted from the September 2002 SUAA newsletter

SUAA began as the Annuitants Association of the State Universities Retirement System (AASURI) in 1969 on  the University of Illinois campus. Leaders became concerned about the lack of adequate funding of SURS^* and lack of annuity increases to keep pace with inflation. Other concerns were survivor's benefits, amount and calculation of retirees' annuities, and the State income tax on SURS pensions. In 1969, the very first success was an automatic annual annuity increase of 1.5%. SUAA was organized two years later in 1971 and other State universities organized. Following is a brief review of SUAA successes.

·  Supported and achieved annual increases for annuitants − first, 1.5%; and then 2%; and in 1980, 3% compounded annually for both annuitants and surviving spouses.

·  For those retiring at age 60 or below, the maximum annuity was increased from 70 to 75 percent (1977).
For survivors, persistent effort by SUAA has brought small increases including payment of benefits at age 50 instead of 55, with the rate of payment set at 50 percent of the retirement annuity on which the survivor benefit is based; and continued payment of benefits if a survivor remarries after age 55.

·  Successful efforts in 1981, 1982, 1983, and 1987 provided increased annuity payments to annuitants and their survivors who retired in early years with lower salaries than those who retired later. These increases included dollar amounts per year or month of service, dollar amounts per year of time elapsed since year of retirement, and a 3% annual increment.

·  In 1988, supported statewide tax increase for higher education, advocated adequate funding of SURS and SB 1070.

·  Again in 1989, SUAA supported the goals of compounding of the 3% annual increase for annuitants, and the 3% increase and compounding of it for survivors as well as the actuary sound state funding of all pension systems. On June 30, 1989, Senate Bill 95 passed the legislature including all of the improved benefits. House Bill 2369, giving Community College retirees equal benefits under the State Insurance Act, was passed by both houses but, subsequently, was amendatorially vetoed by the Governor.

·  In 1994, successfully lobbied for SB 533 which was signed into law on August 22, 1994. SB 533 provides a long-term plan for funding SURS and an automatic continuing appropriation to meet this plan. While it took 24 years to gain this objective, there is a funding plan in place to guarantee full benefits to all participants.

·  Promotion of improved health insurance coverage for community college retirees. SUAA repeatedly urged the Illinois Community College Board and the I.C.C. Trustees Association to take action and promised the support of SUAA. In 1995-96 HB 3620 was introduced to provide a health plan similar to the Teachers Retirement System plan.

·  Reduction of the SURS Board of Trustees from sixteen members to nine. Following dissolution of the Board of Regents and the Board of Governors, it was proposed that the SURS Board be increased from eleven to sixteen. SUAA opposed the increase for reasons of economy and efficiency. The re-organization bill was amended and the Board number was reduced.

·  Advanced election by annuitants of the annuitant representatives that sign on the SURS Board of Trustees. An amendment to require election of annuitant representatives failed.

·  Requirement of full-disclosure counseling for retirement system participants concerning all advantages and disadvantages of selecting an optional retirement plan over the existing SURS plan. Communication to the Governor resulted in the inclusion of SUAA's suggestions in the Governor's amendatory veto and, subsequently, in the bill which became law.

·  Increase of the minimum annuity from $15 per year of service to $25 of service per year resulting in a monthly increase for low-income annuitants. HB 2616 was signed by Governor Edgar and became effective January 1, 1997.

·  The Illinois General Assembly passed and Governor Ryan signed on August 2, 1002 legislation that increased the minimum annuity for survivors. The survivor minimum increased to 70% of $750, or to $525, for a 40% increase in this benefit.

^*The State Universities Retirement System was created by state law in 1941. SURS distributes annuities to retirees, their survivors and those on disability, and facilitates provisions of the State group health plan for Central Management Services. Also, there is great reassurance with the fact that SURS pensions are constitutionally protected.