MCRTA/IRTA REPORTS - Macoupin County Retired Teachers Association

2/2/25

Updates on the Social Security Fairness Act

What is the Social Security Fairness Act and who does it help?
The Act was signed into law on January 5, 2025. The Act ends the Windfall Elimination Provision (WEP), and Government Pension Offset (GPO). These provisions reduced or eliminated the Social Security benefits of over 3.2 million people who receive a pension based on work that was not covered by Social Security (a "non-covered pension") because they did not pay Social Security taxes. This law increases Social Security benefits for certain types of workers, including some: teachers, firefighters, and police officers in many states, federal employees covered by the Civil Service Retirement System, and people whose work had been covered by a foreign social security system.
Will every teacher, firefighter, police officer, or public worker receive a benefit increase because of the new law?
Not necessarily. We know that some press articles have mentioned teachers, firefighters, police officers, and other public employees when discussing the Social Security Fairness Act. However, only people who receive a pension based on work not covered by Social Security may see benefit increases under this new law. Most state and local public employees - about 72% - work in Social Security-covered employment where they pay Social Security taxes and are not affected by WEP or GPO. Those individuals will not receive a benefit increase due to the Act.
When will a person see their Social Security benefit increase because of the Social Security Fairness Act?
SSA is finalizing its plan to implement the Act while limiting negative effects on our regular workloads and services to the public. We cannot yet provide an estimated timeframe for when we will adjust a person's past or future benefits, but we will continue to provide updates on this webpage. We thank the public for its patience.
By how much may a person's monthly benefit increase?
The amount monthly benefits may change can vary greatly. Depending on factors such as the type of Social Security benefit received and the amount of the person's pension, some people's benefits will increase very little while others may be eligible for over $1,000 more each month.
For someone already receiving benefits affected by WEP or GPO, how far back might they receive increased benefits under the Social Security Fairness Act?
December 2023 is the last month that WEP and GPO will apply. This means that those rules no longer apply to benefits payable for January 2024 and later. Important Reminder: Social Security benefits payable for January 2024 would generally have been received in February 2024.
How can someone avoid scams about the repeal of WEP and GPO?
Unfortunately, bad actors might attempt to take advantage of situations when money is involved. SSA will never ask or require a person to pay either for assistance or to have their benefits started, increased, or paid retroactively. Hang up and do not click or respond to anyone offering to increase or expedite benefits. Learn more about Social Security-related scams, and how to report them to SSA's Office of the Inspector General, at www.ssa.gov/scams.

What should people do now that the Social Security Fairness Act is law?
If you never applied for spouses' or surviving spouses' benefits or if you are unsure if you have ever applied for spouses' or surviving spouses' benefits:You may need to file an application. The date of your application might affect when your benefits begin. Filing sooner might help you get a higher benefit amount.
The most convenient way to apply for retirement or spouses' benefits is online at www.ssa.gov/apply. The online application will still collect pension information until the application is changed; however, SSA will not offset the benefit.The survivor benefit application is not available online.
People who cannot apply online for benefits should call 1-800-772-1213 Monday through Friday 8:00 a.m. to 7:00 p.m. to learn other ways to apply.

If you are entitled to spouses' or surviving spouses' benefits, and your benefits are currently being reduced or eliminated by GPO; OR if you are entitled to retired or disabled workers' benefits, and your benefits are currently being reduced by WEP:Consider reviewing the mailing address and/or direct deposit information that SSA has on file for you. This will allow SSA to adjust your benefits as quickly as possible. Generally, no other actions are needed at this time.
The easiest way for most beneficiaries to update their address or direct deposit information with SSA, if needed, is online with a personal my Social Security account. There is no need to call or visit SSA in person. Visit www.ssa.gov/myaccount to sign in or create an account.
The Illinois Retired Teachers Association will continue to share updates from the Social Security Administration (SSA) as they become available. However, for those seeking further information, you can visit the SSA website directly at www.SSA.gov.

9/15/24

Vacancy on the TRS Board of Trustees

On August 1, 2024, the Illinois Retired Teachers Association (IRTA) announced a forthcoming vacancy on the Teachers Retirement System (TRS) Board of Trustees. Larry Pfeiffer, the current TRS Annuitant Trustee, has decided not to seek re-election. This decision opens up an elected annuitant trustee position in 2025. IRTA is now actively looking for a qualified member to step into this important role.

9/12/24

Fall IRTAPAC endorsed Candidates

2/6/2024

2024 Scholarship News

The 2024 application and current guidelines for the IRTA Foundation Scholarships are available. Applications and current guidelines are posted on this page.

IRTAF Scholarship Information Moler-Austin Scholarship Information Helen Kennedy Scholarship Information Rose Sandstrom Scholarship Information

One $2,000 scholarship is available in each of the six IRTA Areas of the state. These scholarships are only available to incoming juniors or seniors in college enrolled in a certified teacher training program. The deadline to postmark or email applications is March 7, 2024.

Thanks to a generous private donation by an IRTA member, there is an additional $3,000 scholarship in Area 4 & Area 6.

Other scholarships available in 2024, are the Moler-Austin Scholarship which offers two $4,500 scholarships to KENDALL COUNTY high school graduates that will be entering their Sophomore, Junior, or Senior year of college with a declared major in Education. The Helen Kennedy Scholarship which is a $2,000 scholarship and is available to graduates of any Illinois High School that will be entering their sophomore, junior, or senior year of college with a declared major in Education. Finally, the Rose Sandstrom Scholarship is for $2,000 and is available to one incoming senior in college attending either Western Illinois University or Monmouth College with a declared major in Physical Education.

Applications for any of the above scholarships must be postmarked or emailed and sent to the IRTA office on or before March 7, 2024, and the recipients will be announced by April 21, 2024. The awards will be given as follows: one half in June for the fall semester with the balance to be awarded in January upon registrar verification of a 3.0 or above GPA on a 4.0 scale.If you have any questions or need assistance in obtaining an application or to send an application, please contact Susan Goetz at susan@irtaonline.org or call 1.800.728.4782.

2023 IRTA Foundation Area Scholarship RecipientsThe IRTA Foundation awards six $2,000 scholarships to incoming juniors or seniors in college that are pursuing a degree in education. Thanks to a very generous private donation from one of our members, Areas 4 and 6 each will award a second scholarship of $3,000. The eight winners were chosen through competition with other applicants from their own area of the state.The IRTA Foundation congratulates all of the recipients and wishes them the best of luck!

11/7/23

Phylis Cox report on IRTA Convention:

Another successful IRTA Convention took place on October 16th and 17th . Attending IRTA conventions is always rewarding because of the number of people there involved and interested in the success of the IRTA organization.

A primary focus of this convention was on the election of officers and area representatives.

The new officers are listed below and will begin their terms on January 1, 2024.

President-Mike Schmidt

VP-Rainy Kaplan

Treasurer-Donnie Ostrom

Secretary-LaVonne Chaney

Area 2 Rep-Wendy Wiegers

Area 4 Rep-Deloris Turner

Area 6 Rep-Mary May

Another important focus, however, is the voting results for any operational changes to our constitution. The following is a summary of the constitutional changes approved by the Delegate Assembly.

The Delegate Assembly approved a resolution concerning an increase in membership dues. The increases for each dues category are as follows and will be effective on January 1, 2024.

Current Dues Effective January 1, 2023

Annual-$40 $50

Monthly-$2.50 $3.50

Life-$400 $600

Annual Recurring-$38 $46

Annual Associate Recurring-$25 $35

Associate Life-$125 $200

5 Year Dues Option-No longer available

Future proposals concerning dues increases will be under the Standing Rules beginning in 2024.

The delegates also passed a resolution concerning how future voting will take place .Prior to each Biennial Convention now, active IRTA members will vote to elect officers and area representatives in their respective areas and on proposed changes to the constitution. They will do this electronically or by paper ballot.

Delegates also voted to change the name of the Nominations Committee to Leadership Development. In addition, they accepted the resolution that Finance and Leadership Development Committees will consist of a chairperson and a voting member from each area. The Legislative, Member Benefits, and Membership Committees will consist of a chairperson, the corresponding local unit chairperson, and any other IRTA members wishing to join.

Although the Delegate Assembly was an important focus for this conference, attendees also enjoyed various highlights throughout the two days. Since the theme of this year’s convention was “Reimagining the Illinois Retired Teachers Association,” there was a great deal of talk about accepting and adjusting to necessary changes in our organization. The keynote speaker, Tom Morris, who has been called “the world’s happiest philosopher,” echoed that sentiment in his presentation about how change is inevitable and our survival depends on our ability to successfully adapt to it. Tom Morris was extremely entertaining and enlightening.

Another highlight was at the banquet when they acknowledged honorees for their hard work and dedication. Several unit representatives were brought forward and recognized. In addition, special recognition was given to Doris Heaton and Jim Bachman for their years of service to the IRTA . Joining together to appreciate those who have done so much for us and our organization is truly rewarding. The IRTA Convention seems to provide an opportunity for all of us to realize and appreciate the dedication, hard work, and efforts of so many working to benefit all IRTA members.

Submitted by Phylis Cox

11/7/23

TRS Report - Doug Strand

On October 26, 2023, there was a meeting of the TRS Board of Trustees in Springfield, IL. The meeting started at9:00 a.m. and began with a review of a discussion of our Real Estate part being underweight in our portfolio of investments. A quick review of our cash flow showed the “state” putting in close to $6 billion, the “employees and schools” putting in close to $1.1 billion and TRS sending out close to $8 billion to retirees, like you and me. The “difference” had to be made up from the investments made by the TRS Staff. Good job TRS, thank you.

The Board passed the state’s contribution of $113 million to the Teachers Health Insurance Fund after a good discussion on the topic. Our IRTA and TRS political person, Andrew Bodewes, gave an update on Springfield (General Assembly). Safe Harbor for Tier 2 educators was discussed and how it might affect employees, schools, and TRS. A short presentation on “Responsible Contractors Policies” was given by our outside lawyer from Reinhart.

6/6/23

IRTA PRESIDENT, BILL FUNKHOUSER

As we move forward, there are many virtual experiences available to our members. Our "Area" Conferences are being held throughout the year, each one hosted by one of the Area Representatives. Area 1 was held in February, Area 2 in April, Area 3 will be held on June 7th, Area 4 on July 12th, Area 5 on August 9th, and Area 6 on September 6th. All are open to all IRTA members. You will receive an email about a month before each conference. You must register to participate. There is "Coffee with Jim" usually each month. Again, you will receive an email with a link to participate. During this time, our Executive Director, Jim Bachman, will provide current information and answer questions. Watch your email for announcements about special programs presented by AMBA. These are on various subjects of interest to our members. If you missed the previous presentations, they are available on our website. Our Convention will be an in person event at the Crowne Plaza in Springfield on October 16th and 17th. For those of you who prefer in-person meetings, this is your opportunity. I hope to see many of you there. Watch for information in the Convention issue of the IRTA Action later this summer. Recently, you should have received a letter from me about the Foundation fundraiser. This is the major source of revenue for the Foundation, enabling us to carry out the programs of the Foundation. I hope you will all be very generous in donating. The IRTA membership currently stands at just over 40,000 members. As we near the end of another school year, be sure to tell every retiring educator what the IRTA does and will continue to do to protect their pensions and benefits. Invite any new retiree you know to a local meeting and to join IRTA. Sometimes all it takes is a personal invitation. As you may know, our Executive Director, Jim Bachman, will be retiring at the end of the year. The Executive Director search committee, along with our consultant, Brewer Pratt Solutions, has developed a detailed job description and is preparing to distribute it in search of potential candidates. We hope to introduce the successor for the position at the Convention in October. Thanks to all of you for being members of the only organization whose sole purpose is to protect the benefits of retired educators. Points to Ponder: "The most difficult thing is the decision to act, the rest is merely tenacity." - Amelia Earhart, aviator "The secret of change is to focus all of your energy, not on fighting the old, but on building the new." - Socrates

6/5/23

The IRTA Foundation awarded six $2,000 scholarships to incoming juniors or seniors in college that are pursuing a degree in education. Thanks to a very generous private donation from one of our members, Areas 4 and 6 each will award a second scholarship of $3,000. The eight winners were chosen through competition with other applicants from their own area of the state.

4/29/23:

IRTA President Bill Funkhouser interview with Mary Byers, CAE:

Mary has written in a book that the greatest value of an association such as IRTA is to be organized in such a way to protect the needs of the group (such as pension and health benefits). They look to organize in such a way as to be more efficient and to modern ways of doing things.

Illinois After-School Programs at Risk because of State Error

About 27,000 elementary and high school students could lose access to after-school and summer programs in the upcoming fiscal year due to an internal error causing an estimated $15 million funding gap. The programs, known as 21st Century Community Learning Centers, are federally funded through a program administered by ISBE targeting students in low-performing and high-poverty schools. An ISBE spokesperson said the funding gap is the result of a miscalculation the agency made when it tried to estimate how much federal money would be available next year. ISBE is asking the federal government for permission to use pandemic relief funds to cover the amount that was over-allocated for next year.

School-Based Health Services Expansion

The Biden Administration has approved a Pritzker Administration proposal to expand the Illinois SchoolBased Health Services program, which will bring in additional federal matching funds to provide covered services for Medicaid-enrolled students across the state, including critical youth mental health services. The approval means that the state will receive federal dollars for students who receive things like behavioral health services, preventive care, physical and occupational therapy, and other services covered by Medicaid. Previously, this reimbursement was limited to students who had an Individualized Education Program. The expansion is expected to bring tens of millions of additional federal Medicaid dollars to schools.

Legislative Update from IRTA Legislative Zoom meeting of 1/18/23:

Jim Bachman updated the Committee on the lawsuit regarding TRIP/TRAIL funding. IRTA is currently in discussions with the Attorney General’s Office to negotiate a settlement. Jim believes we should hear something in the next 30 days. Due to the change in the TRAIL premiums and with the Federal Government funding of Medicare, the funding requirements have changed compared to 2 years ago. IRTA is still concerned with the $160 million that the Comptroller still owes to the fund.

Andrew Bodewes informed the Committee that we are young in the legislative year. Approximately 2,000 shell bills have been filed and around five hundred meaningful bills have been filed, but none pertain to IRTA concerns. The Governor is still stating he supports pension funding. TRIP/TRAIL stakeholders are discussing introducing legislation that would make disclosure of changes to the plans more transparent and that those affected would be informed before changes are made. IRTA would be involved with this legislation.

CURRENT 2023 MCRTA DUES PAID MEMBERS

BH-SW: Jan Cloud, Luella Rust, Polly Eldred

CARLINVILLE: Rose Mary Stock, Denise Boente, Deb Seekamp, Kathy Knetzer, Mary Spurgeon, Dave Jokisch, Cindy Tipps, Leetha Brown, Dixie Stewart-Gage, Judy Minster, Helen Kinser, Linda Stuckey ,Janet Steiner, Loretta Tawfall, Ann Rolando, Carol Meyer, Chris Powell, Nancy Duckels, Craig Witham

GILLESPIE: Ed Saracco, Cindy Saracco, Harry Cavanaugh, Theresa Duncan, Suzanne Stewart, Margaret Reeves, Jackie Klaus

NORTH MAC: Sue Bickel, Carolyn Broadhead, Doug Broadhead, Jeanette Earley, Carol Furman, Steve Furman, Meridy Gillespie, Deborah Ghrist, Darlene Hochmuth, Kenneth Hochmuth, Peggy Klaus, Sue Kime, Kathy Malone, Mary Ann Pollitt, (Hacker)

STAUNTON: Connie Bequette, , Michele Bertolino, Richard Bertolino, Hulda Black, Debra Buffington, Sheryn Buhrmester, Kay Lynn Caldieraro, Elizabeth Diel, Joe Dugan, Connie Eilmann, Evonne Fritz, Carolyn Genczo, Nancy Goldasich, Eleanor Gregory, Sandal Herbeck, Kyle Hlafka, Theresa Jarden, Linda Leckrone, Rita Leigh, Janice Libbra, Patricia Long, Lynn Manning, Russell Masinelli, Marian Mayfield, Kathleen Miersch, Joy Mishanec, Kathy Louish, Brenda Pollett, Marthee Rizzi, Emmlee Robinson, Donna Ruehrup, Ron Rull, Joyce Sanvi, Gail Scheller, Jan Skertich, Mark Skertich, Nancy Stotler, Mary Thomason, Beverly Williams

Minutes of MCRTA Fall Meeting at Federated Church in Carlinville on 10/19/22 at Noon:

The North Mac unit led the Pledge of Allegiance followed by a prayer led by MCRTA member, Darrel Molen. 31 members were in attendance to enjoy the catered meal served by Judy Carriker and her crew. Ed Saracco, from the Gillespie Unit, led of the business meeting by giving out a listing of current IRTA members and non-members for each County unit. He encouraged the members to make contact with non-members and try to convince them of the importance of belonging to the IRTA. President, Dave Jokisch, following up the presentation by pointing out that members could use the new website: mcrtainfo.com as a means of starting that process. President Jokisch also reminded attending members to contribute to the IRTA Foundation as well as leave books for children at the back of the room. After discussions regarding the transfer of Health Insurance from United to AETNA with points given from info provided by the IRTA, again President Jokisch indicated any updates could be followed by going to the mcrtainfo.com website. A series of Board-approved changes was noted for the 2023 year:

The Spring and Fall regular meetings will be moved from the 4^th week of May and October to the 3^rd week of those months. After much discussion, it seems that Tuesday will be the best day of those weeks to have the meetings. This will be on a trial basis for 2023.
There will be no more newsletters mailed out to members previous to the Spring & Fall meetings because of the increasing expense of that process. Members will need to go the website: mcrtainfo.com to receive the newsletter previous to those meetings (members who do not have internet access can pay $6 to a local member that will cover the cost of printing and mailing that letter to that person without access to internet)
Annual MCRTA dues has been reduced to $7 for the 2023 year with local units encouraged to have no dues. Each unit still has the right to collect and use local unit dues if they wish.
The Board meetings for the 2023 year will occur via Zoom technology.

Larry Pfeiffer, Carlinville member and member of the Teachers Retirement System, gave a report on the financial health of the TRS. That organization has been near the top in the United States financially for organizations of that type. Mary Ann Pollitt of the North Mac unit than gave a very enjoyable presentation on her retirement hobby of dog training and showed videos of dog trials demonstrating what they do. This was followed by honoring those retired Macoupin County teachers who have past since 2019. They included: Ethel Behrens, Millie Burgess, Luella Dickhaut, Don Dobrino Grace Huyear, Ann Reichmann, Barbara Madden Sawyer, Ben Strode, Larry Kuba, and Shirley Jean Heidbrink

Reporting, Dave Jokisch, MCRTA President

AETNA SHOW GOOD SIGN

An Aetna official says he’s encouraged about the state of contract negotiations between his company and Carle Health on Aetna’s 2023 Medicare Advantage plan for state retirees.“We clearly get and understand the concern the retirees have,” Rick Frommeyer, senior vice president of Aetna Group Retiree Solutions, told The News-Gazette on Tuesday.Aetna and Carle are in the midst of negotiations on a contract that, if finalized, will give retired state workers access to Carle providers under a state-sponsored Aetna Medicare Advantage PPO plan for next year.

UPDATE (11/1/22)

Now that Carle Health and Aetna have reached a tentative deal, worries may end for thousands of state retirees fearful they would lose access to their Carle doctors. On the same day that two East Central Illinois state legislators filed bills in an effort to bring retirees some choice in their 2023 health insurance, Carle and Aetna ann ounced Monday that they’d reached a tentative agreement on a contract that will make Carle an in-network provider for the new state-sponsored Aetna Medicare Advantage PPO.

THIS IS THE LAST NEWSLETTER THAT WILL BE MAILED. You can access MCRTA info by going to the website: www.mcrtainfo.com Information will constantly be updated throughout the year with information about the 5 local Units (BH-SW,CRTA,NORTH MAC, SRTA, and Gillespie) as well as IRTA information that they have published. If you are not capable of using the internet, you can send $6 to a local member within your Association group and they will mail you a printout of the newsletter from the website. You can avoid that fee by going to your local Library or ask a caretaker or relative/friend who can print from the website. Thanks to MCRTA Board approval, the annual dues has been reduced to $7 for MCRTA and their will be no local dues owed(the dues has been reduced due to less cost maintaining compared to mailing a newsletter. Dues are due this Fall for the coming year, 2023.

Payment for 2023 dUES - $7 (TO BE PAID SOMETIME THIS FALL FOR 2023 - LOCAL DUES ARE AT $0 UNLESS NOTIFIED BY YOUR LOCAL UNIT. LOCAL UNITS ARE WELCOME TO CHARGE LOCAL DUES TO HELP COVER THEIR PROGRAM EXPENSES AND THAT WILL BE COVERED STRICTLY IN HOUSE

BH-SW members send check(payable to BH-SW account) to: Linda Atwood, 154 E Myrtle St, Palmyra, IL 62674

Carlinville members send check (payable to CRTA) to Dave Jokisch, 19357 Sycamore LN, Carlinville, IL 62626

Gillespie members send check (payable to MCRTA) to Dave Jokisch, 19357 Sycamore LN, Carlinville, IL 62626

North Mac members send check (payable to NM account) to Jeanette Early, 16100 Aspen LN, Girard, IL 62640

Staunton members send check (payable to MCRTA) to Dave Jokisch, 19357 Sycamore LN, Carlinville, IL 62626

Central Management Services Highlights: TRAIL Vendor Change RFP process for TRAIL MAPD plans has finalized. Beginning January 1, 2023, the new sole medical and prescription drug plan will be the Aetna Medicare Advantage Prescription Drug (MAPD) PPO Plan. TRAIL MAPD Open Enrollment Period will run November 1 – November 30, 2022 An email (shown below which links to the letter which will be mailed) was sent out to all members September 20 explaining the change No action is required unless the member needs to add/remove a dependent or wishes to opt out of the Aetna MAPD PPO Plan. Member elections go into effect January 1, 2023. Members will receive a welcome kit in the mail from Aetna with more information about the plan and will also receive new member ID cards, which can be used for medical and prescription drug services. TRAIL seminars will be in-person this year beginning November 1-18, 2022, except for the Nov. 8 and 11 state holidays. Dates and locations are still being finalized. This information should be available in early October and will be sent out to all members on a “save the date” mailer. CMS will provide Advisory Board members the listing of events once it is available. There will be three virtual high-level webinars beginning October 25-27. Members can attend these first and decide if they want or need to attend the live seminars in person.

Beginning January 1, 2023, your new medical and prescription drug plan will be the Aetna Medicare Advantage Prescription Drug (MAPD) PPO Plan. This new plan will replace your current plan, whether you’re currently enrolled in the UnitedHealthcare MAPD Plan or one of the MAPD HMO Plans (Aetna, Health Alliance, or Humana). No action is required unless you want to opt out of the Aetna MAPD PPO Plan, add or remove dependents, or change dental/life coverage, if applicable. If you and your Medicare-eligible dependent(s) are currently covered under the UnitedHealthcare MAPD Plan or a MAPD HMO Plan, you and your Medicare-eligible dependent(s) will be automatically enrolled in the Aetna MAPD PPO Plan with coverage beginning January 1, 2023. To learn more about this change, click here. TRAIL MAPD OPEN ENROLLMENT is November 1-30, 2022

11/14/22 Meeting of IRTA Foundation Board

The minutes of the meeting of April 19, 2022 were approved as presented. Chair Report: Bill Funkhouser explained that he is continuing the practice of calling the large donators to the Foundation and thanking them for their gift. The people are very pleased and appreciative of the effort. Retiree Assistance – Erica Pinkley reported that we are now assisting 10 retirees for a total of $4325 per month or $51,900 per year. Several people were assisted on a one-time basis. Members were urged to tell the units that this is available for any TRS retiree. Excellence in Education Grants – Tricia Klim announced that 183 Excellence in Education Grants had been received and 67 were funded. The total expenditure for this benefit was $32,538.29. The 2022 Foundation Scholarships were awarded to the recipients. These scholarships were for $1500 per academic year with the second $750 being forwarded to the student in January upon receipt of their transcript for the fall semester and a copy of their spring semester class schedule. The Moler-Austin Scholarship Scholarships were awarded to two graduates of Kendall County. These $4,500 scholarships are due to the generosity of an IRTA member who donated the proceeds of her land for this purpose. Susan Goetz handles both of the scholarship programs. Other Business: John Harland spoke of the public relations benefits obtained by the Excellence in Education Grants. He made the motion, seconded by Jim Barr, to increase the grant awards from $36,500 to $42,000 in 2023. Motion passed unanimously on roll call vote.

Legislative Update 7/26/2022 Lawmakers are now focused on in-district work and the 2022 general election before convening again for the Fall Veto Session. The General Assembly returns for Veto Session November 15-17 and November 29 – December 1. No date has been set for a possible Special Session on legislation related to reproductive health and/or guns – and it is still up in the air as to whether they will return at all before the scheduled veto session. The Caucus Experiencing the Most Change At least 11 House Republicans in the current caucus won’t return next year. Some didn’t seek re-election while others sought higher office or lost their primary races for re-election. That doesn’t count any potential November losses, guaranteeing House Republicans will have a dramatically changed caucus next year. Further, 5 of the 11 are current members of House Minority Leader Jim Durkin’s leadership team. Illinois Continues Building Up “Rainy Day” Fund Comptroller Susana Mendoza announced the deposit of $100 million into the “Rainy Day” Fund, as part of a commitment to investing $1 Billion in the account this fiscal year. The improved Budget Stabilization Fund, now at $854 million, is one of the many steps that has resulted in six recent credit upgrades for the state. At one point, the fund held less than $60,000. Beginning in FY24, state law requires that minimum payments of $45 million dollars a year will be required in each state budget to continue stabilizing the fund.

TRS Report

Recently, there was an article in the SJR paper detailing how the Pension Debt is getting worse because of a time of lower interest rates and I was reminded of the Summer report from the TRS in their newsletter:

TRS Investment Strategy Protects 2021 Gains Despite Market Volatility

The diversified, risk-adverse investment strategy employed by TRS in response to an unpredictable economy and roller-coaster markets protected System assets during the first 9 months of fiscal year 2022. As a result, the value of the TRS investment portfolio remains at record levels, with a total value of $66.1 billion reported at the end of March 2022. The fiscal year ended June 30.

Despite negative news stories about the economy and investment markets, TRS will continue to pay all pensions in full and on time. Currently, the System pays out $7.3 billion in benefits every year, expenditures that are more than covered by annual revenues and the assets in the TRS portfolio. Because TRS carries one of the lowest funded ratios for a major public pension system in the United States - 42.5% - the TRS Board of Trustees has recognized for years that it would be unwise to implement an aggressive investment strategy that could lead to further declines in the ration if markets underperform. Instead, the trustees and investment staff have constructed diversified portfolio that is designed to make money in "good" economic times but safeguard assets when markets are more "volatile."

The System's strong investment returns over the last 2 years and an "above-and-beyond" funding commitment from Gov. JB Pritzker over the last few years led to a slight decrease in the TRS unfunded liability from $80.7 billion to $79.9 billion. Late in March, a bill adding $300 million to the fiscal year 2022 state pension allocation of $9.4 billion was signed into law by Gov. Pritzker. The remaining $200 million in the governor's pension funding plan will be added to the upcoming fiscal year 2023 state budget, which includes $9.6 billion for state pensions. The added funds will reduce the future long-term liability of the state's pension systems by and estimated $1.8 billion.