(Chicago) Teachers union chief: We're not afraid to walk

[Omaha Steve]

Source: Chicago Sun-Times

Teachers union chief: We're not afraid to walk
SCHOOLS | Re-elected Stewart calls for 'serious' talks as Duncan appeals to state

May 22, 2007
BY KATE N. GROSSMAN Education Reporter [e-mail]
Raising the specter of a teacher strike, newly re-elected Chicago Teachers Union President Marilyn Stewart called on Chicago school officials Monday to finally begin "serious and intensive" contract talks.

The contract expires June 30.

"Striking is not something we like to do, but we're not afraid to do it," Stewart said.

She easily won a second term Friday, beating former president Deborah Lynch.

Read more: http://www.suntimes.com/news/metro/395329,CST-NWS-ctu22.article

[Solo_in_MD]

1. This could get interesting...

Now if the union would consider a move to defined contribution pensions, it might be worth it

[donco6]

2. As opposed to defined benefit? Why?

Just curious.

[Solo_in_MD]

3. Defined benefit is a mortgage on the future and in some scenarios

be the seminal cause of class and generational conflict

[AnneD]

4. It is the difference between

what you have in your had vs. getting what is behind door number 1,2 or 3. A defined benefit is a traditional pension. A deferred compensation is you paying for most of your retirement and trusting that Wall Street treats you well and you fund manager doesn't knick you to death with fees. Frankly, I'll take the sure thing. Companies don't like them because they have to set the money aside. The deferred compensation is a scam as far as I am concerned.

[donco6]

5. I prefer the defined benefit, too.

Not sure why anyone would want something else.

[AnneD]

6. Unless you are in the top 1/4 wage earners...

in the US, you retire with less than you need if you have a deferred compensation. They are so cheap to set up, that is why they are being cramed down our throats. It is also easier for Wall Street to get their hands on it and both take fees and invest in say...Enron.

[donco6]

7. I had an argument with one of my students about this . . .

I teach a college course to teachers getting their principal license. He was saying defined benefit is the same as defined contribution, except that other people get to handle your investments. I argued that - when looking at just the assets - that's true, but there's also the guarantee of benefit. He said the guarantee was only as good as the market for the investments anyway. I disagreed, saying that - at least here in Colorado - they do actuarial studies to make sure the funded liability is in line with reality, unlike your own investments which are based on hopes and wishes and good luck in picking your own stocks. When the market tanks on a defined contribution - it's just too bad for you. When it tanks on a defined benefit (as it did recently here in Colorado), the benefactors still get their payments. Those following after just have to increase their contributions to the pool.

I don't think I convinced him.

[AnneD]

9. Don....

I am sure you didn't convince him. When he does finally learn, it will be too late. I have saved and invested since I was 26. I have made many mistakes with my money-but I learned also. I am 53 now and I think I know a bit money than most.

I was paying attention during the crash in the 80's and got out before the nasties hit. However, I lost my job and it took most of what I saved to retool myself and survive until I got another job. I was back to getting on my feet when I was set back by a divorce. I get back on my feet, am saving 15-20% (on top of my pension-no small feat since I work for the public schools)and bam, I loose 1/4 in the dot com bust. I consider my self lucky I didn't lose more. Oh and a bunch of folks that managed my 403B were convicted and sent to prison. Well, I move to a better paying school district and start rebuilding and wham. I end up in a custody battle which I lose and I am out lawyers fees, over half of my salary in child support and associated added fees (music lessons, health insurance). I had to scale back to a modest pittance in my 403B because I need every bit to pay my bill. Fortunately I have 11 months til I am support free and can get back to my savings, My grand total of savings at this point is $45K. If it weren't for the fact I have a guaranteed teachers pension, I would feel screwed. I wonder how your young punk would have planned for that. It's called life and it happens to you. At this point in life-I don't mind risk-but I sure as hell am not going to trust any Tom, Dick, or Harry with MY money, esp when there is what I consider a conflict of interest.

Our states pension is fairly safe because we have so many eyes watching it and it is sufficiently funded. It is in conservative investments and they don't siphon your money off in the form of fees.

I hope your friend doesn't live to regret his choice.

[AngryAmish]

8. Striking for the right to be even more incompetent?

The Chicago Public Schools are a cesspool.