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1
HOUSE RESOLUTION

 
2     WHEREAS, The Illinois Teachers' Retirement Insurance
3 Program (TRIP) was enacted in 1995 to provide a comprehensive
4 program of health care coverage for retired teachers and their
5 eligible dependents; and
 
6     WHEREAS, The number of enrollees in TRIP for FY 2009 was
7 64,636; overall, membership is expected to increase in FY 2010
8 to 67,260 or 4.1%; in comparison, the number of enrollees in FY
9 2000 was 38,446 or 42.8% less than the FY 2009 enrollment; and
 
10     WHEREAS, On average, the cost of TRIP is increasing at a
11 faster rate, 9.9%, than the overall funding sources of the
12 program, which are increasing at a rate of 5.4%; and
 
13     WHEREAS, In reviewing FY 2008 and FY 2009 revenues and
14 expenditures, it is evident that the funding sources for TRIP
15 are not adequate; and
 
16     WHEREAS, Projections by the Department of Healthcare and
17 Family Services show TRIP is projected to have a negative cash
18 balance of $81 million by FY 2011; this amount will grow
19 substantially in future fiscal years without changes in the
20 funding or benefits, or both, of TRIP; and
 

 

 

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1     WHEREAS, Since its inception, TRIP has experienced
2 escalating costs to the program; increased retiree premiums,
3 increased active teacher and State contributions, and school
4 district financial assistance are recent changes to the TRIP
5 program in FY 2003 and FY 2005 to keep the program solvent; and
 
6     WHEREAS, The most recent changes made to TRIP were
7 established in Public Act 93-679; the legislation (1) raised
8 the premiums for retired teachers; (2) increased the
9 contributions from active teachers, school districts, and the
10 State; and (3) included a continuing appropriation of $13
11 million per fiscal year for 3 years to maintain benefit
12 enhancements, which expired at the end of FY 2007; and
 
13     WHEREAS, Public Act 93-679 also established a 10-member
14 Teacher Retirement Insurance Program Committee that is
15 appointed by the Governor; the committee is required to meet at
16 least 4 times a year to consider and make recommendations on
17 issues affecting TRIP that shall be based on the consensus of
18 the committee; and
 
19     WHEREAS, The Teacher Retirement Insurance Program
20 Committee has not been appointed by the Governor, despite the
21 dire fiscal projections for TRIP in FY 2011; therefore, be it
 
22     RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE

 

 

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1 NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
2 urge the Governor to appoint and convene the Teacher Retirement
3 Insurance Program Committee as mandated by Public Act 93-679 to
4 begin stakeholder discussions on maintaining the solvency of
5 TRIP in FY 2011 and beyond; and be it further
 
6     RESOLVED, That that a copy of this resolution be delivered
7 to the Governor.