SUAA Board Update Report - July 2023

SUAA Board Update – July 2023 Report Submitted by Steve Cunningham, President July 10, 2023

Since my last report, the Board met three times via Zoom in advance of the June 15, 2023 Annual Meeting in Springfield. Significant actions and matters undertaken include:

• March 28, 2023 - Discussion of membership trends and strategies with Co-chair’s Bob Sobie and Andy Small. Treasurer Larry Kloc provided a Finance Report. Linda Brookhart provided updates regarding the legislative session, Aetna MAPD program, SURSMAC, community college representation on the SURS Board, and member benefits.

• May 17, 2023 - Finance and Membership reports provided by Larry Kloc and Andy Small. Discussion and planning for the June 15 Annual Meeting and consideration of personnel matters and long-term planning for the SUAA organization. Implementation of Regional Directors’ Reports as part of the standard meeting agenda.

• June 6, 2023 - Finance and Membership reports provided by Larry Kloc and Andy Small. Discussion of correspondence prepared for university and community college leadership emphasizing institutional partnerships with the SUAA organization. Regional Directors’ Reports and coordination with Chapters. Continued consideration of personnel matters and long-term planning for the SUAA organization and planning for the June 15 Annual Meeting.

The June 15, 2023 Annual Meeting in Springfield was well attended, including 67 certified Delegates. It was a very eventful Annual Meeting that culminated with the announcement by Linda Brookhart that she planned to retire from her position as of December 31, following 17 years of service in the capacity of Executive Director. Other presentations and business included:

• Our State Capitol - Andrea Aggertt, Director of the Office of the Architect for the State Capitol, provided a PowerPoint presentation regarding the current and future renovations and enhancements to the Illinois Capitol Complex.

• Illinois Community College Trustees Association - Jim Reed, Executive Director of the ICCTA, provided remarks and discussion concerning Illinois’ community college system and thoughts about the future.

• Tier II and Safe Harbor - David Merriman (James J. Stukel Presidential Professor of Public Policy, Management, and Analytics) and Alex Hawley (UIC Graduate Student) provided a PowerPoint presentation explaining the IRS “Safe Harbor” provision and applying this standard to public pension equivalency requirements in relation to Social Security benefits. The presentation was particularly relevant to SURS Tier II participation in coordination with other career cycle Social Security participation. Click Here to watch the video

• House Bill 4098 - Stephanie Kifowit, 84th District Representative and Chairperson of the House Personnel and Pension Committee (sponsor of HB 4098) provided a detailed presentation related to pension system funding stabilization options while emphasizing the importance of benefit stability in a retirement plan that does not offer concurrent participation in Social Security. A key proposal in the Bill would establish dedicated revenue sources to consistently fund the state pension systems. Representative Kifowit stressed that elements of the Bill are “proposed changes” that will require thorough review and discussion during the legislative process. Click Here to watch the video

• Keynote Luncheon Speaker - The Honorable Andy Manar, Illinois Deputy Governor for Budget & Economy provided an overview and discussion of Gubernatorial priorities and emphasized the progress made in the last five years to maintain a balanced budget and increased revenue for the State. Click Here to watch the video

SUAA Reports:

Finance: Treasurer Larry Kloc reviewed the May financials and verified that the financial condition of SUAA demonstrates strength and consistency.

Membership: University Co-chair Andy Small and President Steve Cunningham co-presented this report.

Several strategies for Chapters to re-energize recruitment efforts were discussed and membership trends throughout SUAA’s Regions were summarized. It was acknowledged that SUAA is unfortunately losing numbers through mortality given the demographics of the organization. COVID also had a detrimental effect on participation in all organizations including SUAA. The Membership Committee also noted that most participants have not enrolled qualified spouses or beneficiaries and that this could be a productive area of focus to strengthen membership.

The importance of membership to the strategic effectiveness of the Association and the critical role that local Chapters play in this regard was especially emphasized. SUAA provides a very solid State-level representation of member interests including proactive working relationships throughout the Springfield legislative and governmental sectors in addition to very effective coalitions with SURS, CMS, labor, and employee organizations. This is the true value-added of the SUAA organization, protecting and advancing fundamental benefits earned during our diverse careers in higher education. In this regard, SUAA effectively represents all SURS participants. However, the strength and influence of SUAA is directly related to membership participation, where recruitment and retention are mostly reliant on the decentralized Chapters among the university and community college organizations across the State.

At the Chapter-level SUAA membership provides an important career life cycle continuity and connection with members’ home institutions, an aspect that is also valued by the leadership of those organizations. Earned retirement benefits also constitute a significant part of the compensation package for higher education personnel. In recognition of these relationships and emphasizing the role that SUAA fulfills in defending and advocating for SURS participant benefits, correspondence has been forwarded to the university Presidents and Chancellors (and is in the process of being distributed to the community college Presidents) that encourages renewed partnership with their local Chapters and the SUAA organization. Copies of this correspondence were provided in the Delegates information packages. Delegates and Regional Directors are and will be encouraged to follow up with their Chapters and college/university administrations. A dedicated Zoom meeting will be scheduled later this summer specifically related to SUAA membership initiatives.

Foundation: Foundation Board Chair Elliot Dudnik reviewed the purpose of the SUAA Foundation and respectfully asked that members consider a tax-deductible donation to the Foundation to support related programs and scholarships. Co-chair Alice Medenwald reviewed recent scholarship and grant activity.

Executive Director: Executive Director Linda Brookhart commented that it felt like we were “almost back to normal” with this Annual Meeting following the COVID years. She confirmed that SUAA will maintain a long-term focus on Tier II issues and related Safe Harbor requirements. She further commented that the new State budget was favorable with CIP being supported with much-needed funding. Also, the change from United Health Care to Aetna has required constant attention and support for member services. Finally, Linda announced that she would be retiring on December 31, 2023 after more than seventeen years of service to SUAA and expressed appreciation to the members of her staff.

President: President Steve Cunningham expressed his appreciation for Linda’s service and many important contributions to SUAA. He commented that she has excelled in both leading the central office and in lobbying /relationship-building efforts. He indicated that the search for a new Executive Director would be undertaken by the Board and would commence immediately. Meanwhile, Linda will continue her excellent service as Executive Director for the remainder of the year, will assist with the transition, and continue working with the many initiatives that are currently underway. Steve reemphasized the importance of the SUAA membership initiative and emphasized that a dedicated Zoom meeting would be scheduled in the near future to directly focus and collaborate on this priority.

• Vote for Slated Board of Directors Open Seats - Early in the meeting Nominees were presented for open seats on the Board of Directors by Nominating Committee Co-chairs Cris Milliken (University) and Pat Asher (Community College), who acknowledged members of the Nominating Committee and presented the nominees and the position for which they were nominated. No additional nominations were received and the meeting concluded with a unanimous vote for the Board of Directors open seats as follows:

Cris Milliken: Vice President - SIU School of Medicine

Betty Zeedyk: Secretary - Parkland College

Bernard Rowen: University Region 1 - Chicago State University

Barb Dallinger: University Region 2 - Illinois State University

Linda Guinn: Community College Region 3 - Kankakee Community College

In closing my report, I would like to encourage every member (individually and/or in coordination with their local Chapters) to network and reach out to friends and colleagues (retired, actively employed, including spouses and beneficiaries) who share an interest in defending and advocating for our retirement benefits in higher education. If our members could recruit one or more new or renewed SUAA participants, the strength and effectiveness of SUAA would be greatly enhanced for the future.

Meanwhile, the Board will soon take the necessary steps to initiate the search for our next Executive Director. Especially as an organization that celebrates retirement, please join the Board and me in thanking Linda Brookhart for her exceptional 17 years of service with SUAA and appreciation for her unwavering dedication to our mission and membership. More updates will be provided along the way and during the Fall Meeting at ISU later this year.

I trust you had a good Independence Day and the Board looks forward to working with our Chapters and organizations during this important time.

Respectively Submitted,

Steve Cunningham

SUAA President