HR0641 96TH GENERAL ASSEMBLY

HR0641 LRB096 14763 MJR 29616 r

HOUSE RESOLUTION

WHEREAS, The Illinois Teachers' Retirement Insurance Program (TRIP) was enacted in 1995 to provide a comprehensive program of health care coverage for retired teachers and their eligible dependents; and

WHEREAS, The number of enrollees in TRIP for FY 2009 was 64,636; overall, membership is expected to increase in FY 2010 to 67,260 or 4.1%; in comparison, the number of enrollees in FY 2000 was 38,446 or 42.8% less than the FY 2009 enrollment; and

WHEREAS, On average, the cost of TRIP is increasing at a faster rate, 9.9%, than the overall funding sources of the program, which are increasing at a rate of 5.4%; and

WHEREAS, In reviewing FY 2008 and FY 2009 revenues and expenditures, it is evident that the funding sources for TRIP are not adequate; and

WHEREAS, Projections by the Department of Healthcare and Family Services show TRIP is projected to have a negative cash balance of $81 million by FY 2011; this amount will grow substantially in future fiscal years without changes in the funding or benefits, or both, of TRIP; and

WHEREAS, Since its inception, TRIP has experienced escalating costs to the program; increased retiree premiums, increased active teacher and State contributions, and school district financial assistance are recent changes to the TRIP program in FY 2003 and FY 2005 to keep the program solvent; and

WHEREAS, The most recent changes made to TRIP were established in Public Act 93-679; the legislation (1) raised the premiums for retired teachers; (2) increased the contributions from active teachers, school districts, and the State; and (3) included a continuing appropriation of $13 million per fiscal year for 3 years to maintain benefit enhancements, which expired at the end of FY 2007; and

WHEREAS, Public Act 93-679 also established a 10-member Teacher Retirement Insurance Program Committee that is appointed by the Governor; the committee is required to meet at least 4 times a year to consider and make recommendations on issues affecting TRIP that shall be based on the consensus of the committee; and

WHEREAS, The Teacher Retirement Insurance Program Committee has not been appointed by the Governor, despite the dire fiscal projections for TRIP in FY 2011; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the Governor to appoint and convene the Teacher Retirement Insurance Program Committee as mandated by Public Act 93-679 to begin stakeholder discussions on maintaining the solvency of TRIP in FY 2011 and beyond; and be it further

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