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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.
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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