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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17 WHEREAS, This outdated tax policy discourages savings and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.
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