IMPORTANT NOTICE – PLEASE READ CAREFULLY
The City of Chicago has sent the following letter to annuitants regarding their retiree health care plan. Please read this letter if you participate in this plan. Please also note that the information in this letter does NOT pertain to dental or vision benefits. The staff of the Fund has no further information at this time, but updates to the website will be provided as further information is made known to the Fund's staff. [City's Annuitant Health Care Letter]
Message From the City Comptroller
May 15, 2013
Dear City of Chicago Annuitant:
I am writing to update you of developments regarding retiree healthcare benefits. Under the Korshak Settlement Agreement, the City of Chicago agreed to provide support for healthcare coverage to annuitants through June 30, 2013. The Settlement Agreement also required that the City establish a Retiree Healthcare Benefits Commission (“RHBC”) that, among other duties, was to make recommendations on the state of retiree healthcare benefits, their related cost trends, and issues affecting the offering of retiree benefits after July 1, 2013. Earlier this year, the RHBC fulfilled its duties and provided Mayor Emanuel with its report. Those recommendations can be found online at http://www.cityofchicago.org/city/en/depts/fin/provdrs/ben.html.
After reviewing the findings of the report, and after hearing many of the concerns expressed by retirees, employee representatives and industry experts, the City has decided the following:
1. The City will extend current coverage and benefit levels through December 31, 2013. This additional time will allow retirees to maintain coverage for a full plan year, recognizing what we heard from many retirees who have planned deductible and out of pocket expenditures based on an expectation of full year coverage. The City will, however, adjust the benefit levels provided under the current plan starting January 1, 2014.
2. After January 1, 2014, the City will provide a healthcare plan with a continued contribution from the City of up to 55% of the cost for that plan for their lifetimes to the City retirees who are members of the Korshak and “Window” Sub-Classes, meaning those City annuitants who retired prior to August 23, 1989. In short, the City will continue to substantially subsidize these retirees' healthcare plan as it does today.
3. For all annuitants who retired on or after August 23, 1989, in light of the evolving landscape of national healthcare and challenges faced by Chicago taxpayers, the City will need to make changes to the current retiree healthcare plan. These changes will likely include some adjustments in premiums and/or deductibles, some benefit modifications and, ultimately, the phase out of the plan by the beginning of 2017. The City expects to announce the details of this revised structure this summer, so that all retirees, current and future, will have all the information they need to appropriately prepare for this important component of retirement planning. With the changes taking place in the national healthcare market, we will ensure retirees have the information needed to navigate the options available for their healthcare needs going forward, both for Medicare and non-Medicare eligible retirees. As you know, retirees who are eligible for Medicare will continue to receive Medicare coverage, and supplemental Medicare plans are available from many insurance companies – as there are today – for retirees who wish to purchase additional coverage. And retirees who are not eligible for Medicare will have a broad range of healthcare plan options available to them as the Illinois health insurance exchange goes into effect in 2014.
One additional note – as you may know, the current retiree healthcare subsidy provided by the four Chicago pension systems is set to expire on June 30, 2013. If this subsidy is not reauthorized, retirees will likely be responsible for bearing any additional cost for their healthcare plan that is currently borne by their respective pension funds.
We look forward to working with you in the coming months to ensure you have all the information you and your family will need to make sound decisions regarding your retiree healthcare.
Amer Ahmad, City Comptroller
DENTAL & VISION
How to Update Contact Information
Retired members who have premiums deducted from their pension checks for dental and vision coverage must directly contact Delta Dental in the event of any changes in your status.
Any retiree or widow desiring to enroll for dental or vision coverage should also contact Delta Dental Benefits directly.
Changes and enrollments are not completed nor forwarded through the Fund office. Any changes to your address and/or coverage must be completed by contacting Delta Dental
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2012 Insurance Rates
MONTHLY RATES FOR ANNUITANT HEALTHCARE PLANS
EFFECTIVE DATE JULY 1, 2012
Changes to Insurance rates for annuitants for the year 2012 begin on July 1st.
The new insurance rates will be deducted starting with the June 30th check.
2012 Insurance Rates [LINK]
City of Chicago Benefits Management Division [LINK]