Thursday, February 10, 2011

IL Committee Looks at Whether State Should Require State Retirees to Pay a Portion of Healthcare Costs

The Illinois Channel will televise some of the Government Forecasting and Accountability committee hearing, which heard testimony Wednesday on whether the state should require retired state employees to pay for a portion of their healthcare costs.

While changing the pensions on retirees may be unconstitutional, healthcare costs are NOT constitutionally protected.

At this time the state spends about $457 million on RETIREE costs, covering approximately 84,100 individuals. Some of those are family members of former state workers.

Before Gov Edgar's administration, workers had to only put in only 8 years of service to the state to get a LIFETIME of free healthcare benefits. Under Gov Edgar, this was changed to 20 years of service.

Watch this issue, as a majoy tussle this spring. Should the state begin charging retirees to pay a portion of their healthcare benefits -- it could add up to a major new source of income to the state. Some of the changes however may have to wait for a new contract with state workers, which may mean any changes in benefit costs could not take effect until July 2012.

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