The legislature finds that:
In 2019, the legislature enacted the long-term services and supports trust program, which authorized a fifty-eight hundredths of one percent premium on employee wages beginning in January 2022 to pay for long-term care benefits for qualified individuals beginning in 2025.
The state's constitution only permits treasury investments which typically yield returns between two and three percent. However, the solvency of the program was based on an actuarial model that assumed over five percent investment returns.
In 2020, the legislature passed a constitutional amendment that would have allowed investment of the program's funds in vehicles besides treasuries, including stocks and bonds. The amendment was rejected by voters.
The investment returns that the program is based on are unattainable under current law and now the program has an unfunded liability projected at $15,000,000,000 in net present value. Benefit cuts or further premium increases will be necessary to address the program's solvency.
In a 2019 advisory vote, voters rejected the program's premium by over 67 percent. And in 2020, they rejected a funding mechanism for the program.
Section 2(8) of this act applies retroactively to January 1, 2022, as well as prospectively.