State of Illinois
92nd General Assembly
Legislation

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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.

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