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92_SJ0032 LRB9208803NTsbA 1 SENATE JOINT RESOLUTION 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 -2- LRB9208803NTsbA 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; therefore be it 11 RESOLVED, BY THE SENATE OF THE NINETY-SECOND GENERAL 12 ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF 13 REPRESENTATIVES CONCURRING HEREIN, that the Governor reduce 14 the 70% proposal by the Department of Central Management 15 Services to a level similar to previous years' increases; and 16 be it further 17 RESOLVED, That a TRIP Funding Task Force be established, 18 composed of 3 members appointed by the President of the 19 Senate, 3 members appointed by the Minority Leader of the 20 Senate, 3 members appointed by the Speaker of the House, 3 21 members appointed by the Minority Leader of the House, one 22 member appointed by the Illinois Retired Teachers 23 Association, one member appointed by the Illinois Education 24 Association, one member appointed by the Illinois Federation 25 of Teachers, 2 members appointed by the Illinois Statewide 26 School Management Alliance, and the Director of Central 27 Management Services or his or her designee, to study the 28 current funding shortfall and to report its recommendations 29 on a solution to the General Assembly on or before November 30 1, 2001; and be it further 31 RESOLVED, That suitable copies of this resolution be 32 delivered to the Governor, the Illinois Retired Teachers -3- LRB9208803NTsbA 1 Association, the Illinois Education Association, the Illinois 2 Federation of Teachers, the Illinois Statewide School 3 Management Alliance, and the Director of Central Management 4 Services.