093_SJ0006

 
                                     LRB093 07202 DRJ 07357 r

 1                       SENATE JOINT RESOLUTION

 2        WHEREAS, It is the goal of the Illinois General  Assembly
 3    to  encourage  individuals to save for unexpected health care
 4    expenses through appropriate tax incentives; and

 5        WHEREAS,  Ensuring  the  efficient  use  of  health  care
 6    resources and encouraging access to affordable health care is
 7    of primary concern to the citizens of Illinois; and

 8        WHEREAS, A little-known federal tax law is  forcing  some
 9    of  this  State's  citizens to annually forfeit part of their
10    salary to their employer; and

11        WHEREAS, This forfeiture is required at the end  of  each
12    year  for  the total amount of a worker's unused money in the
13    worker's flexible savings accounts (FSAs); and

14        WHEREAS This egregious penalty is  contained  in  Section
15    125  of  the current Internal Revenue Service tax code's "use
16    it or lose it" rule; and

17        WHEREAS, This outdated tax policy discourages savings and
18    encourages Americans to  spend  money,  even  on  unnecessary
19    services, rather than lose the money entirely; and

20        WHEREAS,  The  "use  it  or lose it" rule is inconsistent
21    with the priorities of the citizens of Illinois; and

22        WHEREAS, Only an estimated one-fifth of workers  eligible
23    to contribute to an FSA do so today; and

24        WHEREAS,  The  "use it or lose it" rule is a major reason
25    workers choose not to participate in FSAs; and

26        WHEREAS, Allowing workers to carry over  any  unused  FSA
27    funds would empower them with greater choice and control over
28    how they spend their health care dollars; and

29        WHEREAS,  Allowing contributions to be carried over in an
 
                            -2-      LRB093 07202 DRJ 07357 r
 1    FSA would  encourage  efficiency  and  personal  savings  for
 2    future  health care spending and benefit a significant number
 3    of American workers; therefore, be it

 4        RESOLVED, BY  THE  SENATE  OF  THE  NINETY-THIRD  GENERAL
 5    ASSEMBLY   OF   THE   STATE   OF   ILLINOIS,   THE  HOUSE  OF
 6    REPRESENTATIVES CONCURRING HEREIN, that we respectfully  urge
 7    the  Congress  of  the  United States to adopt legislation to
 8    allow amounts elected by American workers  for  reimbursement
 9    of  medical  care  expenses  under a health flexible spending
10    arrangement, as defined in the Internal Revenue Service  Code
11    Section  106(c)(2)  and  the  regulations  promulgated  under
12    Section  125,  to  be  carried  over to subsequent plan years
13    without penalty of any kind; and be it further

14        RESOLVED, That FSA funds may be used for the  payment  of
15    COBRA or State continuation coverage after the individual has
16    become separated from employment; and be it further

17        RESOLVED,  That  a  suitable  copy  of this resolution be
18    delivered  to  each  member  of  the  Illinois  Congressional
19    delegation,  the  Speaker  of  the  United  States  House  of
20    Representatives, the Majority Leader  of  the  United  States
21    Senate, the President of the United States, and the Secretary
22    of the Department of the Treasury.