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

ANNUAL REVIEW

Release Date:  December 19, 2024

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, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(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

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, 2024 to the Office of the Auditor General
on September 27, 2024.

• 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.

• The Retirement Plan should conduct a
mortality experience study, potentially
outside the standard five-year experience
study cycle, once sufficient mortality
experience has been observed.

• The trend rate assumption should be
reviewed on a by component basis each year
and incorporated in the valuation report.

This Annual Review was conducted by OAG
staff with the assistance of our consultant,
Aon.