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Record #: R2013-7   
Type: Resolution Status: Failed to Pass
Intro date: 1/17/2013 Current Controlling Legislative Body: Committee on Workforce Development and Audit
Final action: 5/20/2015
Title: Call for hearing(s) on findings and recommendations regarding retiree health care costs
Sponsors: O'Connor, Patrick, Burke, Edward M., Smith, Michele, Moreno, Proco Joe, Fioretti, Bob, Burns, William D., Maldonado, Roberto, Ervin, Jason C., Reboyras, Ariel, Austin, Carrie M., Colón, Rey, Sposato, Nicholas, Reilly, Brendan, Tunney, Thomas, Arena, John, Cappleman, James, Pawar, Ameya, Osterman, Harry, Silverstein, Debra L.
Topic: COMMITTEE/PUBLIC HEARINGS - Committee on Workforce Development and Audit
Attachments: 1. R2013-7.pdf
Related files: R2015-407
RESOLUTION


WHEREAS, Until the mid-1980s, the City of Chicago (the "City") paid the entire cost of retiree healthcare insurance plans before the state law was amended to require the City's pension funds to also pay a portion ofthe cost; and

WHEREAS, In 1987, the City and its pension funds were sued when they attempted to stop making the payments for these healthcare plans. Since 1993, the City and its pension funds have been a party to a settlement agreement under which the City is required to continue funding a portion ofthe retiree healthcare costs until June 30, 2013; and

WHEREAS, The settlement agreement also required the creation ofthe Retiree Healthcare Benefits Commission (the "Commission") which was tasked with making findings and recommendations regarding the state of retiree healthcare benefits, their related cost trends and issues affecting the offering of any healthcare benefits after June 30, 2013; and

WHEREAS, In its report, submitted earlier this month to Mayor Emanuel, the Commission concluded that the City's taxpayers can no longer afford to subsidize retiree healthcare at existing levels and recommended changes to cope with the imminent financial crisis; and

WHEREAS, The report outlined a series of factors that contribute to the escalating retiree healthcare burden, including an increasing number of retirees, longer life spans, a shrinking City payroll and a financial squeeze on the City's corporate fund; and

WHEREAS, The report does not recommend any specific plan, but does detail five options which would result in significant savings to the taxpayers; and

WHEREAS, The City Council of the City of Chicago is desirous of learning more about the effects ofthe escalating retiree healthcare costs on the City's financial health and the Commission's recommendations to stem those costs; now, therefore,

BE IT RESOLVED, That we, the Mayor and Members of the City Council of the City of Chicago, assembled this seventeenth day of January, 2013, do here...

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