Archived IRTA Bulletins
Important News Update from IRTA
TRIP Update - May 15, 2018
Dear IRTA Members,
At a recent meeting of the TRIP Advisory Committee we were notified by the Department of Central Management Services (CMS), that the Comptroller had not made the State's payment to the Teachers Health Insurance Security fund since January 2017. The State's payment is approximately $10 million a month. Therefore, the State currently owes the fund approximately $170 million.
The fund is where all TRIP money is deposited. The fund has the following contributors: TRIP participants' premiums, Active teachers (percentage of payroll), School districts (percentage of payroll), State of Illinois (matches the active teachers' portion) and the federal government. Due to the lack of the State's payment insurance companies are not being paid on a timely basis as in the past. Therefore, if the insurance companies are not getting paid in a timely manner the doctors and hospitals are not receiving their payments in a timely manner either. CMS has told us some payments have been delayed as much as 200 days.
The IRTA's contract lobbyist and I met with the Comptroller's office recently to discuss the lack of payments to the fund. As we assumed, the Comptroller does not have enough revenue to make all required payments on a monthly basis. Therefore, she has decided to make the most necessary payments first and if money is available she will make payments to other needs.
In addition, I asked our law firm of Tabet, DiVito, and Rothstien to provide us an opinion on whether IRTA had standing to sue the Comptroller to compel her to make payments to the Teachers Health Insurance Security fund. In short, our law firm replied that the IRTA can bring a mandamus action to compel the Comptroller to pay TRIP payments.
A lawsuit would be a last resort. What we are asking you as TRIP participants is if you begin to experience your doctors or hospitals asking for payment up front for any procedure in lieu of them waiting for payment from the insurance company to notify the IRTA. At that time the IRTA Board of Directors will determine our course of action.
Sincerely,
James Bachman
IRTA Executive Director
TRIP Update - May 15, 2018
Dear IRTA Members,
At a recent meeting of the TRIP Advisory Committee we were notified by the Department of Central Management Services (CMS), that the Comptroller had not made the State's payment to the Teachers Health Insurance Security fund since January 2017. The State's payment is approximately $10 million a month. Therefore, the State currently owes the fund approximately $170 million.
The fund is where all TRIP money is deposited. The fund has the following contributors: TRIP participants' premiums, Active teachers (percentage of payroll), School districts (percentage of payroll), State of Illinois (matches the active teachers' portion) and the federal government. Due to the lack of the State's payment insurance companies are not being paid on a timely basis as in the past. Therefore, if the insurance companies are not getting paid in a timely manner the doctors and hospitals are not receiving their payments in a timely manner either. CMS has told us some payments have been delayed as much as 200 days.
The IRTA's contract lobbyist and I met with the Comptroller's office recently to discuss the lack of payments to the fund. As we assumed, the Comptroller does not have enough revenue to make all required payments on a monthly basis. Therefore, she has decided to make the most necessary payments first and if money is available she will make payments to other needs.
In addition, I asked our law firm of Tabet, DiVito, and Rothstien to provide us an opinion on whether IRTA had standing to sue the Comptroller to compel her to make payments to the Teachers Health Insurance Security fund. In short, our law firm replied that the IRTA can bring a mandamus action to compel the Comptroller to pay TRIP payments.
A lawsuit would be a last resort. What we are asking you as TRIP participants is if you begin to experience your doctors or hospitals asking for payment up front for any procedure in lieu of them waiting for payment from the insurance company to notify the IRTA. At that time the IRTA Board of Directors will determine our course of action.
Sincerely,
James Bachman
IRTA Executive Director
Good News for Retired Teachers in Illinois
On June 29, 2018 the Governor signed into law HB5627. HB5627 was an IRTA initiative that increases the amount of employment as a teacher that a retired teacher may perform without impairing the retirement status; allows 120 paid days or 600 paid hours in a school year, but not more than 100 paid days in the same classroom. The law became effective July 1, 2018.
On August 21, 2018 Governor Rauner signed into law SB3046 (Public Act 100-1017). SB3046 was an initiative of IRTA's. The bill provides that on and after the effective date of this amendatory Act, eligible TRS benefit recipients and TRS dependent beneficiaries may elect to participate in TRIP (this includes participants in TRAIL) if they previously opted out of the program. The bill provides that the election must be made during the benefit recipient's annual open enrollment period, subject to specified conditions.SB3046 becomes effective immediately.
Senator Manar and Representative Gordan-Booth were the main sponsors of this legislation. In addition there were several other representatives and senators that co- sponsored the legislation.
On June 29, 2018 the Governor signed into law HB5627. HB5627 was an IRTA initiative that increases the amount of employment as a teacher that a retired teacher may perform without impairing the retirement status; allows 120 paid days or 600 paid hours in a school year, but not more than 100 paid days in the same classroom. The law became effective July 1, 2018.
On August 21, 2018 Governor Rauner signed into law SB3046 (Public Act 100-1017). SB3046 was an initiative of IRTA's. The bill provides that on and after the effective date of this amendatory Act, eligible TRS benefit recipients and TRS dependent beneficiaries may elect to participate in TRIP (this includes participants in TRAIL) if they previously opted out of the program. The bill provides that the election must be made during the benefit recipient's annual open enrollment period, subject to specified conditions.SB3046 becomes effective immediately.
Senator Manar and Representative Gordan-Booth were the main sponsors of this legislation. In addition there were several other representatives and senators that co- sponsored the legislation.
Posted by IRTA July 11th, 2017
For the first time in over two years, the state of Illinois has a full year budget. Up until this point, the state had gotten by on court ordered payment and continuing appropriations and stop gap budgets.
Senate Bill 6, which included the partial year for 2017 and full year budget for 2018, passed the General Assembly last week. Although promptly vetoed by Governor Rauner, it was over ridden by both the House and the Senate so it takes effect immediately. This includes full funding for the Teacher Retirement Insurance Program. Unfortunately, the General Assembly changed the funding formula for retirement systems, which allows for smoothing. Because of this smoothing, TRS will receive approximately $500 million less than the actuarial amount certified by the board earlier this year
Senate Bill 9 is also now law because both chambers overrode the governor's veto. This is the revenue portion of the budget package. This implements a 4.95 percent personal income tax, up from 3.75 percent, and increases the corporate rate to 7 percent.
Senate Bill 42, the third component of the package, is the implementation arm of the budget. This piece of legislation provides the spending authority to the comptroller to spend the funds allocated in the budget. You might remember earlier in the year this bill contained language that would have removed the continuing appropriation for TRIP. This version of the legislation does not contain that language.
Where does the state stand now:
Education funding is the final sticking point with the budget.
Senate Bill 1, the education funding reform legislation passed both the House and the Senate, and is currently waiting to be signed into law. The problem is the governor has said he would veto it, but he has not thus far.
This legislation is tied to the budget because as the budget is written, funding to local school districts can only be distributed based on the new funding formula in the bill, so unless the governor signs Senate Bill 1 schools may not open on time.
Both chambers of the General assembly are prepared to return to Springfield before the end of July to override the governor's veto if and when he decides to do that. If he decides to sign it into law then schools will receive their funding as laid out in the budget bill.
As we continue through the summer, the General Assembly working groups are also continuing to work on other issues the governor has insisted he wants passed such as a property tax freeze, workers compensation reform and local government consolidation just to name a few.
For the first time in over two years, the state of Illinois has a full year budget. Up until this point, the state had gotten by on court ordered payment and continuing appropriations and stop gap budgets.
Senate Bill 6, which included the partial year for 2017 and full year budget for 2018, passed the General Assembly last week. Although promptly vetoed by Governor Rauner, it was over ridden by both the House and the Senate so it takes effect immediately. This includes full funding for the Teacher Retirement Insurance Program. Unfortunately, the General Assembly changed the funding formula for retirement systems, which allows for smoothing. Because of this smoothing, TRS will receive approximately $500 million less than the actuarial amount certified by the board earlier this year
Senate Bill 9 is also now law because both chambers overrode the governor's veto. This is the revenue portion of the budget package. This implements a 4.95 percent personal income tax, up from 3.75 percent, and increases the corporate rate to 7 percent.
Senate Bill 42, the third component of the package, is the implementation arm of the budget. This piece of legislation provides the spending authority to the comptroller to spend the funds allocated in the budget. You might remember earlier in the year this bill contained language that would have removed the continuing appropriation for TRIP. This version of the legislation does not contain that language.
Where does the state stand now:
Education funding is the final sticking point with the budget.
Senate Bill 1, the education funding reform legislation passed both the House and the Senate, and is currently waiting to be signed into law. The problem is the governor has said he would veto it, but he has not thus far.
This legislation is tied to the budget because as the budget is written, funding to local school districts can only be distributed based on the new funding formula in the bill, so unless the governor signs Senate Bill 1 schools may not open on time.
Both chambers of the General assembly are prepared to return to Springfield before the end of July to override the governor's veto if and when he decides to do that. If he decides to sign it into law then schools will receive their funding as laid out in the budget bill.
As we continue through the summer, the General Assembly working groups are also continuing to work on other issues the governor has insisted he wants passed such as a property tax freeze, workers compensation reform and local government consolidation just to name a few.
Spring 2017
Urgent Call-to-Action Alert Posted
for IRTA Members
IRTA: PENDING SENATE PROPOSALS BOTH
‘UNFAIR’ AND ‘UNCONSTITUTIONAL’
(May 18, 2017 - SPRINGFIELD, Ill.) - Members of the Illinois Senate voted Wednesday on two separate bills that directly affect all annuitants of the Teachers Retirement System.
Senate Bill 42, sponsored by Senator Andy Manar, would have ended the continuing appropriation for the Teachers’ Retirement Insurance Program (TRIP) in state statute. This means the state subsidy provided to CMS that covers roughly ¼ the cost of the entire program would have been subject to yearly appropriations.
This concerns members of the IRTA because both budget proposals by Governor Rauner and at least one by past Governor Pat Quinn zeroed out the funding that TRIP receives from the state. If this were to become law, and there was no appropriation for TRIP, TRS Annuitants who are members of TRIP would see their premiums increase by 23%.
The IRTA has been advised by Tabet DiVito & Rothstein LLC that, “Retired Illinois educators’ health insurance benefits are protected by the Pension Protection Clause for the reasons set forth in Kanerva v. Weems.” Because of this, the IRTA believes that not funding TRIP would be considered unconstitutional.
The other piece of legislation, SB 16, is the pension reform proposal sponsored by President Cullerton and touted by Governor Rauner. This legislation does several things, but most importantly, it will lower the amount the state pays into the pensions systems, once again.
This essentially creates another pension ramp and pushing off the pension payment is the same mentality that got the state into this mess in the first place.
In addition, it will require active teachers and other current state employees to make a choice. They can choose to keep their compounded COLA in retirement, but can no longer have pay raises count toward their future pensionable salary. Or they can give up the compounded COLA, but continue having raises count toward their retirement benefits and be placed into the Tier II pension plan.
Not only are these measures unfair, the IRTA would suggest the changes proposed are unconstitutional. The lawyers who represented the IRTA Members against Senate Bill 1, Gino DiVito and John Fitzgerald, recently wrote an opinion concerning proposed “consideration” language presented in this bill.
Senate Bill 42 failed, but only by three votes and there has been a motion to reconsider the vote. Senate Bill 16 passed the chamber and now goes to the House of Representatives for their consideration.
The Illinois Retired Teachers Association represents retired teachers, administrators and their families. IRTA is the sole watchdog for retired teachers in the Illinois legislature. Its goal is to maintain and improve benefits for annuitants of the Teachers’ Retirement System (TRS); promote education and the professional, social and economic status of all members; and work in cooperation with other organizations to obtain these goals.
IRTA | Springfield, Ill. | 217-523-8488| www.irtaonline.org
Illinois Retired Teachers Association | 828 S Second St FL 4, Springfield, IL 62704
Below you will find an article you may want to include in your upcoming IRTA Unit Newsletter.
The 100th General Assembly was brought to order in Springfield on January 11, 2017, with the inauguration of new legislators. There are a combined 32 members this year who experienced their first inauguration.
During the remainder of January and February, the legislature was busy introducing legislation. There are currently over 2000 bills in the Senate and nearly 4000 bills that have been introduced in the House of Representatives.
The Senate has been busy putting together the "Grand Bargain," a legislative package that will hopefully bring a real budget to the state. As of February, Illinois is facing 20 months without a budget.
Some of the proposals included in the "grand bargain" are property tax relief, an income tax increase, workers compensation reform, procurement reform, pension reform, local government consolidation, gaming expansion, and education funding reform.
On the heels of the proposal of the "grand bargain," Governor Rauner introduced his budget to the General Assembly on February 15, 2017. One of the most important aspects of this proposal is the zeroing out of funding for the Teachers Retirement Insurance Program (TRIP). The IRTA is working with legislators and will continue to work with them on your behalf to ensure the Governor's proposal to defund TRIP does not come to fruition.
In addition to not funding insurance, Governor Rauner is renewing his call for changes to pensions this year by proposing an optional Tier 3 benefit plan for newly hired employees. Moreover, the Governor is again urging enactment of the funding changes he initially proposed a year ago. These changes would underfund the pension systems once again, "kicking the can down the road" for others to deal with in the future.
He also is proposing changing the benefits that future annuitants receive through the pension consideration model. It would require active Tier 1 employees who are part of TRS, SURS, GARS and Chicago Teachers Pension Fund (this excludes state employees and judges) to elect to make an irrevocable election to either:
(i) keep all increases to pensionable salary until retirement but have automatic annual increases in retirement annuity delayed and reduced (no more compounded COLA if you add raises to your salary up until you retire)
(ii) maintain the current benefit package with additional limitations on pensionable salary (keep compounded cola on your pension, but no additional raises you receive after the effective date of this bill will be applied to the pensionable amount you receive)
As you can see, the IRTA is in for a busy year at the Capitol. Votes can happen quickly and sometimes without warning. If and when bills are to be voted on, the IRTA will update you through the Voter Voice system. If you are not currently signed up to receive these email alerts, please visit the IRTA website at irtaonline.org or call the IRTA Office at 1.800.728.4782 to sign up.
Urgent Call-to-Action Alert Posted
for IRTA Members
IRTA: PENDING SENATE PROPOSALS BOTH
‘UNFAIR’ AND ‘UNCONSTITUTIONAL’
(May 18, 2017 - SPRINGFIELD, Ill.) - Members of the Illinois Senate voted Wednesday on two separate bills that directly affect all annuitants of the Teachers Retirement System.
Senate Bill 42, sponsored by Senator Andy Manar, would have ended the continuing appropriation for the Teachers’ Retirement Insurance Program (TRIP) in state statute. This means the state subsidy provided to CMS that covers roughly ¼ the cost of the entire program would have been subject to yearly appropriations.
This concerns members of the IRTA because both budget proposals by Governor Rauner and at least one by past Governor Pat Quinn zeroed out the funding that TRIP receives from the state. If this were to become law, and there was no appropriation for TRIP, TRS Annuitants who are members of TRIP would see their premiums increase by 23%.
The IRTA has been advised by Tabet DiVito & Rothstein LLC that, “Retired Illinois educators’ health insurance benefits are protected by the Pension Protection Clause for the reasons set forth in Kanerva v. Weems.” Because of this, the IRTA believes that not funding TRIP would be considered unconstitutional.
The other piece of legislation, SB 16, is the pension reform proposal sponsored by President Cullerton and touted by Governor Rauner. This legislation does several things, but most importantly, it will lower the amount the state pays into the pensions systems, once again.
This essentially creates another pension ramp and pushing off the pension payment is the same mentality that got the state into this mess in the first place.
In addition, it will require active teachers and other current state employees to make a choice. They can choose to keep their compounded COLA in retirement, but can no longer have pay raises count toward their future pensionable salary. Or they can give up the compounded COLA, but continue having raises count toward their retirement benefits and be placed into the Tier II pension plan.
Not only are these measures unfair, the IRTA would suggest the changes proposed are unconstitutional. The lawyers who represented the IRTA Members against Senate Bill 1, Gino DiVito and John Fitzgerald, recently wrote an opinion concerning proposed “consideration” language presented in this bill.
Senate Bill 42 failed, but only by three votes and there has been a motion to reconsider the vote. Senate Bill 16 passed the chamber and now goes to the House of Representatives for their consideration.
The Illinois Retired Teachers Association represents retired teachers, administrators and their families. IRTA is the sole watchdog for retired teachers in the Illinois legislature. Its goal is to maintain and improve benefits for annuitants of the Teachers’ Retirement System (TRS); promote education and the professional, social and economic status of all members; and work in cooperation with other organizations to obtain these goals.
IRTA | Springfield, Ill. | 217-523-8488| www.irtaonline.org
Illinois Retired Teachers Association | 828 S Second St FL 4, Springfield, IL 62704
Below you will find an article you may want to include in your upcoming IRTA Unit Newsletter.
The 100th General Assembly was brought to order in Springfield on January 11, 2017, with the inauguration of new legislators. There are a combined 32 members this year who experienced their first inauguration.
During the remainder of January and February, the legislature was busy introducing legislation. There are currently over 2000 bills in the Senate and nearly 4000 bills that have been introduced in the House of Representatives.
The Senate has been busy putting together the "Grand Bargain," a legislative package that will hopefully bring a real budget to the state. As of February, Illinois is facing 20 months without a budget.
Some of the proposals included in the "grand bargain" are property tax relief, an income tax increase, workers compensation reform, procurement reform, pension reform, local government consolidation, gaming expansion, and education funding reform.
On the heels of the proposal of the "grand bargain," Governor Rauner introduced his budget to the General Assembly on February 15, 2017. One of the most important aspects of this proposal is the zeroing out of funding for the Teachers Retirement Insurance Program (TRIP). The IRTA is working with legislators and will continue to work with them on your behalf to ensure the Governor's proposal to defund TRIP does not come to fruition.
In addition to not funding insurance, Governor Rauner is renewing his call for changes to pensions this year by proposing an optional Tier 3 benefit plan for newly hired employees. Moreover, the Governor is again urging enactment of the funding changes he initially proposed a year ago. These changes would underfund the pension systems once again, "kicking the can down the road" for others to deal with in the future.
He also is proposing changing the benefits that future annuitants receive through the pension consideration model. It would require active Tier 1 employees who are part of TRS, SURS, GARS and Chicago Teachers Pension Fund (this excludes state employees and judges) to elect to make an irrevocable election to either:
(i) keep all increases to pensionable salary until retirement but have automatic annual increases in retirement annuity delayed and reduced (no more compounded COLA if you add raises to your salary up until you retire)
(ii) maintain the current benefit package with additional limitations on pensionable salary (keep compounded cola on your pension, but no additional raises you receive after the effective date of this bill will be applied to the pensionable amount you receive)
As you can see, the IRTA is in for a busy year at the Capitol. Votes can happen quickly and sometimes without warning. If and when bills are to be voted on, the IRTA will update you through the Voter Voice system. If you are not currently signed up to receive these email alerts, please visit the IRTA website at irtaonline.org or call the IRTA Office at 1.800.728.4782 to sign up.
Eating Well as You Age
Nutrition and Diet Tips for Healthy Eating as You Age
For older adults, the benefits of adopting a healthy diet include increased mental acuteness, resistance to illness and disease, higher energy levels, faster recuperation times, and better management of chronic health problems. As we age, eating well can also be the key to a positive outlook and staying emotionally balanced. But healthy eating doesn't have to be about dieting and sacrifice. Whatever your age, eating well should be all about fresh, tasty food, creativity in the kitchen, and eating with friends and family.
Click below for the entire article from Helpguide.org
Nutrition and Diet Tips for Healthy Eating as You Age
For older adults, the benefits of adopting a healthy diet include increased mental acuteness, resistance to illness and disease, higher energy levels, faster recuperation times, and better management of chronic health problems. As we age, eating well can also be the key to a positive outlook and staying emotionally balanced. But healthy eating doesn't have to be about dieting and sacrifice. Whatever your age, eating well should be all about fresh, tasty food, creativity in the kitchen, and eating with friends and family.
Click below for the entire article from Helpguide.org
Illinois Retired Teachers Association Foundation Fact Sheet
Where do donations to the IRTA Foundation come from and where do the funds go? Click below to read about the Foundation and how your donations help retired teachers in need, future teachers, and current teachers in their classrooms.
IRTA Foundation Fact Sheet
Where do donations to the IRTA Foundation come from and where do the funds go? Click below to read about the Foundation and how your donations help retired teachers in need, future teachers, and current teachers in their classrooms.
IRTA Foundation Fact Sheet