Retiree health insurance proposal heads to Quinn's desk - Bloomington Pantagraph
SPRINGFIELD — A proposal to eliminate a coveted but expensive benefit for Illinois retirees is headed to Gov. Pat Quinn's desk.
In action Thursday, the Illinois Senate narrowly approved legislation backed by Quinn that would require retirees to begin paying a portion of their health insurance premiums.
The measure, approved on a 31-20 vote, is the first of what is expected to be a series of votes this spring designed to chip away at the retirement benefits given to former state employees, including lawmakers, judges and university workers.
Among those voting "yes" was state Sen. Shane Cultra, R-Onarga, who said he believes health insurance costs must be reined in.
"It's going to cost me money but I figure it's the right thing to do in the long run," said Cultra, who is leaving the General Assembly in January after 10 years in the House and Senate.
State Sen. John Jones, R-Mount Vernon, who also is set to leave the Senate in January, was among those voting "no." He said the health insurance benefit given to retirees is part of a contractual agreement that shouldn't be tinkered with.
"I'm a firm believer that we have a contract with our state employees," Jones said. "I think the constitution is very clear on this: You can't diminish benefits."
State Sen. Gary Forby, D-Benton, agreed.
"When you have a union contract, I don't know how you can go against it," Forby said.
The proposal, which affects as many as 114,000 former state workers, their dependents and survivors, gives the Quinn administration the power to set how much retirees would pay toward their premiums. It allows for the new rates to reflect the earnings of each retiree, meaning wealthier pensioners could pay higher rates.
The cost of premiums will be subject to negotiations with the American Federation of State, County and Municipal Employees Council 31. A legislative panel will be able to overrule any decision and send both sides back to the bargaining table.
Without the switch, Quinn's office argues that the state could face even steeper price increases, resulting in the state not being able to afford health insurance at all.
AFSCME legislative director John Cameron said retirees should be ready for sticker shock.
"You're going to be adding thousands of dollars more to their payments," Cameron told a Senate panel Thursday.
Senators voting in favor of the change, which would go into effect July 1, included Republican state Sens. Bill Brady of Bloomington and Cultra.
The legislation is House Bill 1313.
11 May, 2012
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