REPORT HIGHLIGHTS

INFORMATION SUBMITTED BY THE CHICAGO
TRANSIT AUTHORITY’S RETIREE HEALTH
CARE TRUST

ANNUAL REVIEW

Release Date:  December 14, 2022

State of Illinois, Office of the
Auditor General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report
contact:
Office of the Auditor General, Iles
Park Plaza, 740 E. Ash Street,
Springfield, IL 62703
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are
also available on the worldwide web at
www.auditor.illinois.gov

REPORT HIGHLIGHTS

Background:

The Illinois State Auditing Act (30
ILCS 5/3-2.3(f)) requires the Auditor
General to annually examine the
information on the funding level of
the Retiree Health Care Trust (RHCT or
Trust) submitted pursuant to Section
22-101B(b)(3)(iii) of the Illinois
Pension Code.
If the Retiree Health Care Trust
projects a funding shortfall, it shall
provide a plan which may (1) increase
contributions by employees, retirees,
dependents, or survivors; (2) decrease
benefits; (3) make other plan changes;
or (4) any combination thereof to cure
the shortfall within 10 years.  If the
Retiree Health Care Trust projects a
surplus, it may decrease
contributions, increase benefits, or
make other plan changes, to the extent
of the surplus.

Key Findings:

• The Retiree Health Care Trust
submitted its Actuarial Valuation
Report as of January 1, 2022 to the
Office of the Auditor General on
September 29, 2022.
• The Report concluded that the
actuarial present value of projected
contributions, trust income, and
assets, in excess of the statutory
reserve, exceeded the actuarial
present value of the projected
benefits.  Consequently, no change in
benefits or contributions was
required.
• With the assistance of our
consulting actuary, Aon, we examined
the assumptions in the Retiree Health
Care Trust’s Actuarial Valuation
Report and found that they were not
unreasonable in the aggregate.

Key Recommendations:

• The investment return and inflation
assumptions should continue to be
monitored and justified on an annual
basis.
This Annual Review was conducted by
OAG staff with the assistance of our
consultant, Aon.
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