to read the Mini Briefing
Transcription
to read the Mini Briefing
SUAA Mini Briefing December 23, 2014 It's the Holidays! Today work surpasses the celebrations of the holidays at least for another few hours as we scurry to provide news from around the Capitol. Jerry Stermer, Governor Quinn's Budget Director, has been named interim State Comptroller. December's issue of Money Matters takes a look at where the State is financially. Governor Quinn has called the legislators back for a special session day on Thursday, January 8, 2015. He wants the General Assembly to consider legislation that would allow voters to fill the elected position of State Comptroller in the next statewide election which will be November 8, 2016. The Senate is scheduled to be in on Tuesday, January 13, 2015. (Known as a Lame Duck Session.) The Inauguration festivities are set for Monday, January 12, 2015. With the General Assembly being sworn in on Wednesday, January 14. The Governor's State of the State Address will be heard on February 4, 2015. The Governor's Budget Address will be heard on February 18, 2015. The newspapers will continue to provide decisions made by Governor-elect Rauner as we head into the New Year. Once again, if you have a chance to meet Governor-elect Rauner, please do so. There will be numerous new legislative receptions in Springfield, some of which SUAA will be co-sponsoring. Most likely there will be opportunities popping up in your legislative districts which will allow chances for your chapters to participate. Be sure to keep the SUAA State Office informed of these events. _________________________________________________________________ State Sponsored Medicare Advantage Plan for SURS Universities and SERS Retirees (this does not affect the College Insurance Plan - CIP) A few of our university retirees have contacted the State Office to voice their displeasure about the changes to the State retiree health insurance - Medicare Advantage Plan. In a September 18 Mini Briefing there was a statement reflecting that there would be an increase. At that time, SUAA was unsure as to what the actual increase would be because we did not have a 2015 Trail Decision Guide to compare to the 2014 Trail Decision Guide. Those changes are reflected in the 2015 Trail Decision Guide starting on page 16. However, there is not a side-by-side comparison. In the private sector, health insurance companies are required to give notice of any changes coming to your policy five to six months ahead of the new enrollment date. Even Medicare provides notification. Advance notification is something that the State sponsored Medicare Advantage health insurance companies should provide as a courtesy to their clients. SUAA also recognizes that these changes are a diminishment of your health insurance benefits. The Illinois Supreme Court did rule this as unconstitutional in the current Kanerva case. However, in order to try to prevent changes to current and future deductibles and co-pays there would need to be another lawsuit against the State. Speaking of lawsuits - There were six attorneys who litigated the Kanerva case for a contingency fee rather than an hourly fee. The Fee Petition has now been filed by these six attorneys which asks for 15% of the health insurance premiums collected including the interest earned which is to be returned to the State retirees, including SURS university retirees premiums. The current amount being held in the SERS escrow account and the premiums being held for SURS, GARS and JRS totals $60 Million plus interest. The Fee Petition is asking for a total of $9 Million plus. The judge has asked these litigating attorneys for supporting documentation that would warrant such a fee. Going forward there will be a few more hearings regarding the Kanerva case. The State will be sending out notifications about refunds once the calendar has been established and refund amounts have been established. The fees the attorneys are currently asking for will be taken out of the individual refunds. However, we will wait to see how the judge rules on the amount to be earned by the attorneys. SUAA is still working to keep those fees from affecting the SURS university retirees or at least to keep the fee quite low. Refunds should all be made no later than June 15, 2015. -----------------------------------------------------------------------------------------------------------Ending the year with the pension lawsuit sitting in the Supreme Court for a ruling is unsettling to most. However, positive results thus far means that: • Nothing has changed for anyone this past year. Your benefits are the same. • All University and Community College retirees will be receiving the 3% Automatic Annual Increase (AAI) on January 1. • All currently working University and Community College SURS participants have had no changes. Contributions to the pension system remain the same. There have been no age changes, etc. Anything that was proposed could not be enacted. During 2015 there will be a decision from the Illinois Supreme Court. Most likely this decision will come sometime towards the end of legislative session - late April or May 2015. The decision coming from the Circuit Court was important, but not final. The end of 2014 is close. Please consider contributing to the SUAA Legal Fund. While your contribution is not deductible, it certainly is an investment in protecting your future. Watch the SUAA website for updates and interviews with Aaron Maduff on Illinois Channel. There are two ways to contribute: • Send a check made out to the SUAA Legal Fund 217 East Monroe Street, Springfield, IL 62701 • On the SUAA website http://www.suaa.org/ContributeToLegalFund.php Give a contribution on behalf of someone else! Make it a holiday present! Linda L. Brookhart Executive Director State Universities Annuitants Association 217 East Monroe Street, Suite 100 Springfield, Illinois 62701 217.523.4040 Office