SB2933 Summary

• Establishes a separate Retiree Health Care Trust for Chicago Transit Authority (CTA) employees, effective 90 days after the act, to be fully operational no later than July 1, 2009.

• Creates a 7-member Board of Trustees consisting of 3 members appointed by the CTA Board, 2 members appointed by the largest employee organizations, 1 member representing smaller employee groups, and 1 professional fiduciary selected by the Regional Transportation Authority Board.

• Sets retiree health care eligibility requirements: retirees must be age 55 with 10+ years of service (or hired before September 5, 2001 with 25+ years of service), with coverage limited to 90% for in-network and 70% for out-of-network services after deductibles (100% for HMO plans).

• Requires all CTA employees to contribute at least 3% of compensation to the Retiree Health Care Trust effective January 18, 2008, with retiree/dependent/survivor contributions capped at 45% of total benefit costs effective January 1, 2009.

• Transfers CTA's obligation to provide retiree health care to the Trust by July 1, 2009, requiring annual actuarial assessments and funding plans reviewed by the Illinois Auditor General to ensure long-term solvency.