SUAA Governmental Relations Report 1/3/25

In this edition:

- President Biden expected to sign the Social Security Fairness Act into Law

- Hospitals and Aetna come to an agreement at the end of 2024

- Tier 2 Fix Up Next Week?

- Court rules against plaintiffs, that had the support of SUAA, over the issue of reciprocity in the pension system

President Biden Expected to Sign Social Security Fairness Act

Congratulations!

      Next Monday, January 6, President Biden is expected to sign the Social Security Fairness Act after it overwhelmingly passed through the U.S. Congress. Full text of the bill, H.R. 82, is available by CLICKING HERE. If you would like to contact the White House by phone or email to encourage President Biden to sign the bill into law, you may do so by CLICKING HERE.

      SUAA looks forward to providing more comprehensive information to members on the bill's effects once the process is finally completed. We want to thank our members and staff for their many years of hard work in putting this issue at the forefront of Illinois' federal representatives. Repealing the WEP and GPO, which the Social Security Fairness Act does, has been a long-term goal of SUAA and its members. It's been a long journey and the end is finally in sight!

***

Hospitals Come to an Agreement with Aetna

Effective December 31, 2024, multiple hospitals, including Loyola Medicine, and Aetna reached a new, multi-year agreement that will allow SUAA members on the TRAIL program to continue using their Aetna Medicare Advantage plan at Loyola Medicine hospitals, including Loyola University Hospital. SUAA had identified 13 hospitals in Illinois that were on the brink of failing to reach an agreement with Aetna to continue services come January 1, 2025. Of those 13, it appears only Illini Community Hospital in Pittsfield, IL and Blessing Hospital in Quincy, IL failed to reach an agreement with Aetna to continue services into 2025. Please let us know if your hospital or medical provider, whether in Illinois or outside of Illinois, is no longer taking the Aetna Medicare Advantage PPO (TRAIL plan) in 2025. The Loyola Medicine announcement of the agreement, along with FAQs, is available by CLICKING HERE.

***

Tier 2 Fix Coming Next Week?

Next week during the Legislature's "lame duck" session, which begins tomorrow and runs through January 7, it is anticipated that lawmakers will discuss the Fair Retirement and Recruitment Act (HB5909/SB3988), bills intended to "fix" the broken Tier 2 pension system. SUAA will let its members know if any committee discussions of the bill(s) will take place. As of this time, no vote has been scheduled.

***

Court Rules Against Plaintiffs That Had the Support of SUAA

Recently, a Court ruled against two plaintiffs, themselves judges, who had the support of SUAA in an amicus brief. The judges' lawsuit was over the issue of "reciprocity" within the pension system. As they were Tier 1 public employees prior to becoming justices, they believe they should continue to receive Tier 1 benefits as justices, even though they became justices, and part of the Judges Retirement System, after Tier 2 went into effect in 2011, and thus were then on the Tier 2 pension system while serving on the bench. The Court ruled that they were not entitled to Tier 1 benefits while in the JRS system since they joined after Tier 2 passed. Eric Madiar, an attorney who filed SUAA's amicus brief in support of the plaintiffs, tells SUAA he, "strongly disagrees with the Court's decision and analysis." Madiar anticipates the plaintiffs will appeal the decision, in which case it would then go to the Illinois Appellate Court in the First District in Cook County. Madiar will continue to update SUAA on the progress of the appeal, if one is made, and we will share those developments with our members once available.

Thank you for reading and have a wonderful weekend!