State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ House Amendment 001 ]


92_HJ0037eng

 
HJ0037 Engrossed                              LRB9208804NTsbA

 1                      HOUSE JOINT RESOLUTION 37

 2        WHEREAS, In 1980, the  General  Assembly  authorized  the
 3    Teachers' Retirement System of the State of Illinois (TRS) to
 4    establish  a  health insurance program for benefit recipients
 5    and their dependents, with annuitants paying 50% of the cost;
 6    and

 7        WHEREAS, In 1991, the General Assembly authorized TRS  to
 8    increase the subsidy from 50% to 75% to achieve closer parity
 9    with State retirees' health insurance premiums; and

10        WHEREAS,  In  1995,  the General Assembly transferred the
11    health insurance program from TRS to the State  of  Illinois,
12    to  be  administered  by the Department of Central Management
13    Services (CMS),  and  established  the  Teachers'  Retirement
14    Insurance Program (TRIP); and

15        WHEREAS, The General Assembly reduced the premium subsidy
16    for the traditional indemnity plan from 75% to 50%; and

17        WHEREAS,   The  General  Assembly  mandated  that  active
18    teachers pay 0.50% of their salary to help  finance  the  CMS
19    program; and

20        WHEREAS,  The  General  Assembly  mandated  the  State of
21    Illinois to match the contributions of the active teachers to
22    help finance the CMS program; and

23        WHEREAS, The  Illinois  Economic  and  Fiscal  Commission
24    reported  in November of 2000 that current revenues would not
25    be able to fund the current TRIP, with a  shortfall  of  $9.3
26    million by the end of fiscal year 2002; and

27        WHEREAS,  The  Illinois  Economic  and  Fiscal Commission
28    updated its report in April of 2001, increasing the shortfall
29    to $37.6 million by the end of fiscal year 2002; and

30        WHEREAS, TRS has hired  a  health  insurance  actuary  to
 
HJ0037 Engrossed           -2-                LRB9208804NTsbA
 1    provide  an  independent  review  of the current TRIP funding
 2    status and an analysis of TRIP's projected  financial  needs,
 3    along with possible alternative scenarios; and

 4        WHEREAS,  The  Illinois  Economic  and  Fiscal Commission
 5    identified 4 possible funding  sources  for  increasing  TRIP
 6    funding:  retiree  premiums,  active  teacher  contributions,
 7    State  contributions,  and a new contribution requirement for
 8    school districts; and

 9        WHEREAS,  CMS  has  proposed  an  increase  to  70%   for
10    annuitant and dependent premiums; and

11        WHEREAS,  The State's public education system encompasses
12    downstate and suburban as well as Chicago public schools; and

13        WHEREAS, The General Assembly has declared that it is its
14    goal  and  intention  to  contribute  to  the  Public  School
15    Teachers' Pension and Retirement Fund of  Chicago  an  amount
16    that is between 20% and 30% of the State's annual funding for
17    the downstate and suburban Teachers' Retirement System (found
18    in the Illinois Compiled Statutes at 40 ILCS 5/17-127); and

19        WHEREAS, This statutory funding directive is founded upon
20    both historical practice and equitable principles; and

21        WHEREAS,  During  the  current  fiscal year, the State is
22    contributing to  the  Public  School  Teachers'  Pension  and
23    Retirement  Fund of Chicago an amount only equal to 9% of the
24    funding provided to the Teachers' Retirement System, and  far
25    below the minimum statutory goal; and

26        WHEREAS,  For  equitable  reasons,  as well as reasons of
27    financial need, the State's underfunding of the Public School
28    Teachers' Pension and Retirement Fund of Chicago is an  issue
29    that should be addressed and corrected; and

30        WHEREAS,  It  is  therefore  appropriate  to consider the
 
HJ0037 Engrossed           -3-                LRB9208804NTsbA
 1    funding concerns of TRIP in the context of the funding  needs
 2    of the Public School Teachers' Pension and Retirement Fund of
 3    Chicago; therefore, be it

 4        RESOLVED,   BY   THE  HOUSE  OF  REPRESENTATIVES  OF  THE
 5    NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS,  THE
 6    SENATE  CONCURRING  HEREIN,  that the Governor reduce the 70%
 7    proposal by the Department of Central Management Services  to
 8    a  level  similar  to  previous  years'  increases; and be it
 9    further

10        RESOLVED, That  a  TRIP  Funding  and  Chicago  Teachers'
11    Retirement  System  Task  Force be established, composed of 3
12    members appointed by the President of the Senate,  3  members
13    appointed  by  the  Minority  Leader of the Senate, 3 members
14    appointed by the Speaker of the House, 3 members appointed by
15    the Minority Leader of the House, one member appointed by the
16    Illinois Retired Teachers Association, one  member  appointed
17    by  the  Illinois Education Association, one member appointed
18    by the Illinois Federation of Teachers, one member  appointed
19    by  the  Chicago  Teachers  Union, 2 members appointed by the
20    Chicago Board  of  Education,  2  members  appointed  by  the
21    Illinois   Statewide  School  Management  Alliance,  and  the
22    Director  of  Central  Management  Services  or  his  or  her
23    designee, to study the current funding shortfall of  TRIP  as
24    well  as  the  financial  and  equitable  needs of the Public
25    School Teachers' Pension and Retirement Fund of  Chicago  for
26    additional  State  funding, and to report its recommendations
27    on a solution to the General Assembly on or  before  November
28    1, 2001; and be it further

29        RESOLVED,  That  suitable  copies  of  this resolution be
30    delivered to the  Governor,  the  Illinois  Retired  Teachers
31    Association, the Illinois Education Association, the Illinois
32    Federation  of  Teachers,  the  Chicago  Teachers' Union, the
33    Chicago Board of Education,  the  Illinois  Statewide  School
 
HJ0037 Engrossed           -4-                LRB9208804NTsbA
 1    Management  Alliance,  and the Director of Central Management
 2    Services.

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