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Full Text of SB2071  98th General Assembly

SB2071sam001 98TH GENERAL ASSEMBLY

Sen. Dave Syverson

Filed: 4/8/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2071

2    AMENDMENT NO. ______. Amend Senate Bill 2071 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Insurance Code is amended by
5changing Sections 367h and 367j as follows:
 
6    (215 ILCS 5/367h)  (from Ch. 73, par. 979h)
7    Sec. 367h. Deputy's continuance privilege. As used in this
8Section:
9    1. The terms "municipality" and "creditable service" shall
10have the meaning ascribed to such terms by Sections 7-105 and
117-113, respectively, of the Illinois Pension Code, as now or
12hereafter amended.
13    The term "deferred pensioner" means a deputy who has
14retired, having accumulated enough creditable service to
15qualify for a pension, but who has not attained the required
16age.

 

 

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1    2. The term "deputy" shall mean a "sheriff's law
2enforcement employee" as defined in Section 7-109.3 of the
3Illinois Pension Code, and include only persons under the
4coverage of Article 7 of that Code, as heretofore or hereafter
5amended.
6    3. The "retirement or disability period" of a deputy means
7the period:
8        a. which begins on the day the deputy is removed from a
9    sheriff's police department payroll because of the
10    occurrence of any of the following events, to wit: (i) the
11    deputy retires as a deferred pensioner, (ii) the deputy
12    retires from active service as a deputy with an attained
13    age and accumulated creditable service which together
14    qualify the deputy for immediate receipt of retirement
15    pension benefits under Section 7-142.1 of the Illinois
16    Pension Code, or (iii) the deputy's disability is
17    established under Article 7 of the Illinois Pension Code;
18    and
19        b. which ends on the first to occur of any of the
20    following events, to wit: (i) the deputy's reinstatement or
21    reentry into active service in the sheriff's police
22    department as provided for under Article 7 of the Illinois
23    Pension Code, (ii) the deputy's exercise of any refund
24    option or acceptance of any separation benefit available
25    under Article 7 of the Illinois Pension Code, (iii) the
26    deputy's loss pursuant to Section 7-219 of the Illinois

 

 

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1    Pension Code of any benefits provided for in Article 7 of
2    that Code, or (iv) the deputy's death or -- if at the time
3    of the deputy's death the deputy is survived by a spouse
4    who, in that capacity, is entitled to receive a surviving
5    spouse's monthly pension pursuant to Article 7 of the
6    Illinois Pension Code -- the death or remarriage of that
7    spouse.
8    No policy of group accident and health insurance under
9which deputies employed by a municipality are insured for their
10individual benefit shall be issued or delivered in this State
11to any municipality unless such group policy provides for the
12election of continued group insurance coverage for the
13retirement or disability period of each deputy who is insured
14under the provisions of the group policy on the day immediately
15preceding the day on which the retirement or disability period
16of such deputy begins. So long as any required premiums for
17continued group insurance coverage are paid in accordance with
18the provisions of the group policy, an election made pursuant
19to this Section shall provide continued group insurance
20coverage for a deputy throughout the retirement or disability
21period of the deputy and, unless the deputy otherwise elects
22and subject to any other provisions of the group policy which
23relate either to the provision or to the termination of
24dependents' coverage and which are not inconsistent with this
25Section, for any dependents of the deputy who are insured under
26the group policy on the day immediately preceding the day on

 

 

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1which the retirement or disability period of the deputy begins;
2provided, however, that when such continued group insurance
3coverage is in effect with respect to a deputy on the date of
4the deputy's death but the retirement or disability period of
5the deputy does not end with such deputy's death, then the
6deceased deputy's surviving spouse upon whose death or
7remarriage such retirement or disability period will end shall
8be entitled, without further election and upon payment of any
9required premiums in accordance with the provisions of the
10group policy, to maintain such continued group insurance
11coverage in effect until the end of such retirement or
12disability period. Continued group insurance coverage shall be
13provided in accordance with this Section at the same premium
14rate from time to time charged for equivalent coverage provided
15under the group policy with respect to covered deputies whose
16retirement or disability period has not begun, and no
17distinction or discrimination in the amount or rate of premiums
18or in any waiver of premium or other benefit provision shall be
19made between continued group insurance coverage elected
20pursuant to this Section and equivalent coverage provided to
21deputies under the group policy other than pursuant to the
22provisions of this Section; provided that no municipality shall
23be required by reason of any provision of this Section to pay
24any group insurance premium other than one that may be
25negotiated in a collective bargaining agreement. Continuation
26is not required for an insured who becomes eligible for

 

 

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1medicare. If the group policy provides for a reduction in
2benefits and premium for insureds who become eligible for
3medicare, such provision shall apply to persons electing
4continued coverage under this Section.
5    Within 15 days of the beginning of the retirement or
6disability period of any deputy entitled to elect continued
7group insurance coverage under any group policy affected by
8this Section, the municipality last employing such deputy shall
9give written notice of such beginning by certified mail, return
10receipt requested, to the insurance company issuing such
11policy. The notice shall include the deputy's name and last
12known place of residence and the beginning date of the deputy's
13retirement or disability period.
14    Within 15 days of the date of receipt of such notice from
15the municipality, the insurance company by certified mail,
16return receipt requested, shall give written notice to the
17deputy at the deputy's last known place of residence that
18coverage under the group policy may be continued for the
19retirement or disability period of the deputy as provided in
20this Section. Such notice shall set forth: (i) a statement of
21election to be filed by the deputy if the deputy wishes to
22continue such group insurance coverage, (ii) the amount of
23monthly premium, including a statement of the portion of such
24monthly premium attributable to any dependents' coverage which
25the deputy may elect, and (iii) instructions as to the return
26of the election form to the insurance company issuing such

 

 

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1policy. Election shall be made, if at all, by returning the
2statement of election to the insurance company by certified
3mail, return receipt requested, within 15 days after having
4received it.
5    If the deputy elects to continue coverage, it shall be the
6obligation of the deputy to pay the monthly premium directly to
7the municipality which shall forward it to the insurance
8company issuing the group insurance policy, or as otherwise
9directed by the insurance company; provided, however, that the
10deputy shall be entitled to designate on the statement of
11election required to be filed with the insurance company that
12the total monthly premium, or such portion thereof as is not
13contributed by a municipality, be deducted by the Illinois
14Municipal Retirement Fund from the monthly pension payment
15otherwise payable to or on behalf of the deputy pursuant to
16Article 7 of the Illinois Pension Code, and be remitted by such
17Fund to the insurance company. The portion, if any, of the
18monthly premium contributed by a municipality for such
19continued group insurance coverage shall be paid by the
20directly to the insurance company issuing the group insurance
21policy, or as directed by the insurance company. Such continued
22group insurance coverage shall relate back to the beginning of
23the deputy's retirement or disability period.
24    The amendment, renewal or extension of any group insurance
25policy affected by this Section shall be deemed to be the
26issuance of a new policy of insurance for purposes of this

 

 

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1Section.
2    In the event that a municipality makes a program of
3accident, health, hospital or medical benefits available to its
4deputies through self-insurance, or by participation in a pool
5or reciprocal insurer, or by contract in a form other than a
6policy of group insurance with one or more medical service
7plans, health care service corporations, health maintenance
8organizations, or any other professional corporations or plans
9under which health care or reimbursement for the costs thereof
10is provided, whether the cost of such benefits is borne by the
11municipality or the deputies or both, such deputies and their
12surviving spouses shall have the same right to elect continued
13coverage under such program of benefits as they would have if
14such benefits were provided by a policy of group accident and
15health insurance. In such cases, the notice of right to elect
16continued coverage shall be sent by the municipality; the
17statement of election shall be sent to the municipality; and
18references to the required premium shall refer to that portion
19of the cost of such benefits which is not borne by the
20municipality, either voluntarily or pursuant to the provisions
21of a collective bargaining agreement. In the case of a
22municipality providing such benefits through self-insurance or
23participation in a pool or reciprocal insurer, the right to
24elect continued coverage which is provided by this paragraph
25shall be implemented and made available to the deputies of the
26municipality and qualifying surviving spouses not later than

 

 

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1July 1, 1986.
2    The amendment, renewal or extension of any such contract in
3a form other than a policy of group insurance policy shall be
4deemed the formation of a new contract for the purposes of this
5Section.
6    This Section shall not limit the exercise of any conversion
7privileges available under Section 367e.
8(Source: P.A. 90-655, eff. 7-30-98.)
 
9    (215 ILCS 5/367j)  (from Ch. 73, par. 979j)
10    Sec. 367j. Municipal employee's continuance privilege.
11    (a) As used in this Section:
12        (1) The term "creditable service" shall have the
13    meaning ascribed to it by Section 7-113 of the Illinois
14    Pension Code.
15        (2) The term "municipality" means any municipality,
16    instrumentality, or participating instrumentality (as
17    those terms are defined in Sections 7-105, 7-107 and 7-108,
18    respectively, of the Illinois Pension Code) that
19    participates in the Illinois Municipal Retirement Fund
20    pursuant to Section 7-132 of the Illinois Pension Code.
21        (3) The term "employee" shall mean an employee as
22    defined in Section 7-109 of the Illinois Pension Code, but
23    does not include any person who is a deputy as defined in
24    Section 367h of this Code.
25        (4) The "retirement or disability period" of an

 

 

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1    employee means the period:
2            (A) which begins on the day the employee is removed
3        from the municipality payroll because of the
4        occurrence of either of the following events: (i) the
5        employee retires from active service as an employee
6        with an attained age and accumulated creditable
7        service which together qualify the employee for
8        immediate receipt of retirement pension benefits under
9        Article 7 of the Illinois Pension Code, or (ii) the
10        employee's disability is established under Article 7
11        of the Illinois Pension Code; and
12            (B) which ends on the first to occur of any of the
13        following events: (i) the employee's reinstatement or
14        reentry into active service as provided for under
15        Article 7 of the Illinois Pension Code, (ii) the
16        employee's exercise of any refund option or acceptance
17        of any separation benefit available under Article 7 of
18        the Illinois Pension Code, (iii) the employee's loss
19        pursuant to Section 7-219 of the Illinois Pension Code
20        of any benefits provided for in Article 7 of that Code,
21        or (iv) the employee's death or, if at the time of the
22        employee's death the employee is survived by a spouse
23        who, in that capacity, is entitled to receive a
24        surviving spouse's monthly pension pursuant to Article
25        7 of the Illinois Pension Code, the death or remarriage
26        of that spouse.

 

 

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1    (b) No policy of group accident and health insurance under
2which employees of a municipality are insured for their
3individual benefit shall be issued or delivered in this State
4to a municipality unless such group policy provides for the
5election of continued group insurance coverage for the
6retirement or disability period of each employee who is insured
7under the provisions of the group policy on the day immediately
8preceding the day on which the retirement or disability period
9of such employee begins. So long as any required premiums for
10continued group insurance coverage are paid in accordance with
11the provisions of the group policy, an election made pursuant
12to this Section shall provide continued group insurance
13coverage for an employee throughout the retirement or
14disability period of the employee and, unless the employee
15otherwise elects and subject to any other provisions of the
16group policy which relate either to the provision or to the
17termination of dependents' coverage and which are not
18inconsistent with this Section, for any dependents of the
19employee who are insured under the group policy on the day
20immediately preceding the day on which the retirement or
21disability period of the employee begins; provided, however,
22that when such continued group insurance coverage is in effect
23with respect to an employee on the date of the employee's death
24but the retirement or disability period of the employee does
25not end with the employee's death, then the deceased employee's
26surviving spouse upon whose death or remarriage such retirement

 

 

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1or disability period will end shall be entitled, without
2further election and upon payment of any required premiums in
3accordance with the provisions of the group policy, to maintain
4such continued group insurance coverage in effect until the end
5of the retirement or disability period. Continued group
6insurance coverage shall be provided in accordance with this
7Section at the same premium rate from time to time charged for
8equivalent coverage provided under the group policy with
9respect to covered employees whose retirement or disability
10period has not begun, and no distinction or discrimination in
11the amount or rate of premiums or in any waiver of premium or
12other benefit provision shall be made between continued group
13insurance coverage elected pursuant to this Section and
14equivalent coverage provided to employees under the group
15policy other than pursuant to the provisions of this Section;
16provided that no municipality shall be required by reason of
17any provision of this Section to pay any group insurance
18premium other than one that may be negotiated in a collective
19bargaining agreement. Continuation is not required for an
20insured who becomes eligible for medicare. If the group policy
21provides for a reduction in benefits and premium for insureds
22who become eligible for medicare, such provision shall apply to
23persons electing continued coverage under this Section.
24    Within 15 days of the beginning of the retirement or
25disability period of any employee entitled to elect continued
26group insurance coverage under any group policy affected by

 

 

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1this Section, the municipality last employing such employee
2shall give written notice of such beginning by certified mail,
3return receipt requested, to the insurance company issuing such
4policy. The notice shall include the employee's name and last
5known place of residence and the beginning date of the
6employee's retirement or disability period.
7    Within 15 days of the date of receipt of such notice from
8the municipality, the insurance company by certified mail,
9return receipt requested, shall give written notice to the
10employee at the employee's last known place of residence that
11coverage under the group policy may be continued for the
12retirement or disability period of the employee as provided in
13this Section. Such notice shall set forth: (i) a statement of
14election to be filed by the employee if the employee wishes to
15continue such group insurance coverage, (ii) the amount of
16monthly premium, including a statement of the portion of such
17monthly premium attributable to any dependents' coverage which
18the employee may elect, and (iii) instructions as to the return
19of the election form to the insurance company issuing such
20policy. Election shall be made, if at all, by returning the
21statement of election to the insurance company by certified
22mail, return receipt requested, within 15 days after having
23received it.
24    If the employee elects to continue coverage, it shall be
25the obligation of the employee to pay the monthly premium
26directly to the municipality which shall forward it to the

 

 

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1insurance company issuing the group insurance policy, or as
2otherwise directed by the insurance company; provided,
3however, that the employee shall be entitled to designate on
4the statement of election required to be filed with the
5insurance company that the total monthly premium, or such
6portion thereof as is not contributed by a municipality, be
7deducted by the Illinois Municipal Retirement Fund from the
8monthly pension payment otherwise payable to or on behalf of
9the employee pursuant to Article 7 of the Illinois Pension
10Code, and be remitted by such Fund to the insurance company.
11The portion, if any, of the monthly premium contributed by a
12municipality for such continued group insurance coverage shall
13be paid by the municipality directly to the insurance company
14issuing the group insurance policy, or as directed by the
15insurance company. Such continued group insurance coverage
16shall relate back to the beginning of the employee's retirement
17or disability period.
18    The amendment, renewal or extension of any group insurance
19policy affected by this Section shall be deemed to be the
20issuance of a new policy of insurance for purposes of this
21Section.
22    (c) In the event that a municipality makes a program of
23accident, health, hospital or medical benefits available to its
24employees through self-insurance, or by participation in a pool
25or reciprocal insurer, or by contract in a form other than a
26policy of group insurance with one or more medical service

 

 

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1plans, health care service corporations, health maintenance
2organizations, or any other professional corporations or plans
3under which health care or reimbursement for the costs thereof
4is provided, whether the cost of such benefits is borne by the
5municipality or the employees or both, such employees and their
6surviving spouses shall have the same right to elect continued
7coverage under such program of benefits as they would have if
8such benefits were provided by a policy of group accident and
9health insurance. In such cases, the notice of right to elect
10continued coverage shall be sent by the municipality; the
11statement of election shall be sent to the municipality; and
12references to the required premium shall refer to that portion
13of the cost of such benefits which is not borne by the
14municipality, either voluntarily or pursuant to the provisions
15of a collective bargaining agreement. In the case of a
16municipality providing such benefits through self-insurance or
17participation in a pool or reciprocal insurer, the right to
18elect continued coverage which is provided by this paragraph
19shall be implemented and made available to the employees of the
20municipality and qualifying surviving spouses not later than
21July 1, 1991.
22    The amendment, renewal or extension of any such contract in
23a form other than a policy of group insurance policy shall be
24deemed the formation of a new contract for the purposes of this
25Section.
26    (d) This Section shall not limit the exercise of any

 

 

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1conversion privileges available under Section 367e.
2(Source: P.A. 86-1444; 87-435.)".