Is State Retirement Health Plan for Community College Employees in Danger of Going Belly Up?

In concluding his comments about McHenry County College’s audit, outside auditor Fred Lantz of Sikich, LLP made a startling revelation.

Pointing out that medical insurance benefits are financed by a ½ percent charge on employee salaries, a ½ percent matching payment by community colleges and a ½ percent match by state government, he observed,

“There may be enough to fund for current expenses, but in the long run, it is not enough.”

He said the “cost may escalate in the near future.”

MCC Board President Scott Summers pointed out the $6 million in unfounded liability in retirement benefits.

Dr. Ron Ally explained that was “one of the reasons we are accumulating reserves.”

This liability is coming out at this time because of new reporting requirements mandated by my first employer, the U.S. Office of Management and Budget (then call the Bureau of the Budget.)

So, at minimum, here is more pressure on state lawmakers to come up with more money.

And, that could mean more money coming out of employees pockets and from MCC taxpayers.

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The three on the left are the outside auditors from Sikich, LLP. Fred Lantz is second from the left. The picture below is MCC Board President Scott Summers.


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