HR1346 95TH GENERAL ASSEMBLY

HR1346 LRB095 21549 AMC 51375 r

HOUSE RESOLUTION

WHEREAS, The Teachers' Retirement Insurance Program (TRIP) was enacted in 1995 to provide medical coverage for teachers during their retirement years following a financial crisis brought on by changes in federal tax law that prevented the use of Teacher Retirement System (TRS) Retirement Trust Fund moneys for health insurance purposes; and

WHEREAS, Skyrocketing health insurance costs quickly eroded available funds for the program, prompting General Assembly legislative action in the 92nd General Assembly to create a temporary solution that included (1) a July 1, 2004 sunset date, (2) increase in State support, (3) increase in retiree premiums, (4) active teacher contributions, and (5) school district contributions; and

WHEREAS, In 2004 the associations representing the education community, as well as retired teachers and the Governor's Office, negotiated a 3-year health insurance benefits package for retired teachers; and

WHEREAS, The 2004 negotiated health care benefits package included a 3-year schedule of increases to (1) retiree premiums and (2) contributions from active teachers, school districts, and the State to sustain the program; and

WHEREAS, A component of the 2004 agreement was a State continuing appropriation of $13 million in Fiscal Years 2005, 2006, and 2007 to sustain benefit enhancements included in the TRIP program in 1999 for retired teachers; and

WHEREAS, The $13 million continuing appropriation helped stabilize retiree premium increases and out-of-pocket expenses and maintained basic health benefits; and

WHEREAS, The General Assembly authorized this three-year negotiated agreement in Public Act 93-679; and

WHEREAS, The 2004 negotiated agreement ended at the end Fiscal Year 2007, and the $13 million was not included in the Fiscal Year 2008 budget and is not proposed by the Governor for the Fiscal Year 2009 budget; and

WHEREAS, The Governor's Office and the Department of Healthcare and Family Services recently released a new benefits package for retired teachers participating in the TRIP program; and

WHEREAS, Unlike the 2004 negotiated agreement, the new benefit package for retired teachers was not negotiated with the associations representing the education community and retired teachers and was announced to all parties by the Governor's Office after the benefits package was finalized; and

WHEREAS, The new Fiscal Year 2009 TRIP benefit package, which is effective on July 1, 2008 through June 30, 2009 and administered by the Department of Central Management Services, increases fees, deductibles, and co-payments for medical services to make up for the loss of the $13 million State contribution; and

WHEREAS, The increased fees, deductibles, and co-payments for basic medical services are a hardship on retired teachers who are on fixed incomes and rely on and deserve basic health insurance benefits; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that teachers deserve affordable health care benefits upon retirement; and be it further

RESOLVED, That the State of Illinois should negotiate benefit packages in good faith with all stakeholders contributing to TRIP; and be it further

RESOLVED, That we urge the Governor to reconsider the catastrophic increases to the fees, deductibles, and co-payments for basic medical services provided in the Fiscal Year 2009 TRIP benefit package; and be it further

RESOLVED, That we urge that $13 million be included in the Fiscal Year 2009 budget to sustain basic, affordable health benefits for teachers upon retirement and to prevent escalating out-of-pocket costs for retirees; and be it further

RESOLVED, That a suitable copy of this resolution be delivered to the Governor.