Illinois General Assembly - Illinois Compiled Statutes

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5 ILCS 375/6.6

(5 ILCS 375/6.6)

Sec. 6.6. Contributions to the Teacher Health Insurance Security Fund.

(a) Beginning July 1, 1995, all active contributors of the Teachers'
Retirement System (established under Article 16 of the Illinois Pension Code)
who are not employees of a department as defined in Section 3 of this Act
shall make contributions toward the cost of annuitant and survivor health
benefits.  These contributions shall be at the following rates:
until January 1, 2002, 0.5% of salary;
beginning January 1, 2002, 0.65% of salary;
beginning July 1, 2003, 0.75% of salary; beginning July 1, 2005, 0.80% of salary;
beginning July 1, 2007, a percentage of salary to be determined by the Department of Central Management Services by rule, which in each fiscal year shall not exceed 105% of the percentage of salary actually required to be  paid  in the previous fiscal year.

These contributions shall be deducted by the employer and paid to the System
as service agent for the Department of Central Management Services.  The System
may use the same processes for collecting the contributions required by this
subsection that it uses to collect contributions received from school districts
and other covered employers under Sections 16-154 and 16-155 of the Illinois
Pension Code.

An employer may agree to pick up or pay the contributions required under
this subsection on behalf of the teacher; such contributions shall be deemed
to have to have been paid by the teacher.  Beginning January 1, 2002, if
the employer does not directly pay the required member contribution, then the
employer shall reduce the member's salary by an amount equal to the required
contribution and shall then pay the contribution on behalf of the member.
This reduction shall not change the amounts reported as creditable earnings
to the Teachers' Retirement System.

A person who purchases optional service credit under Article 16 of the
Illinois Pension Code for a period after June 30, 1995 must also make a
contribution under this subsection for that optional credit, at the rate
provided in subsection (a), based on the salary used in
computing the optional service credit, plus interest on this employee
contribution.  This contribution shall be collected by the System as service
agent for the Department of Central Management Services.  The contribution
required under this subsection for the optional service credit must be paid
in full before any annuity based on that credit begins.

(a-5) Beginning January 1, 2002, every employer of a teacher (other than
an employer that is a department as defined in Section 3 of this Act) shall
pay an employer contribution toward the cost of annuitant and survivor health
benefits.  These contributions shall be computed as follows:

(1) Beginning January 1, 2002 through June 30, 2003,

the employer contribution shall be equal to 0.4% of each teacher's salary.

(2) Beginning July 1, 2003, the employer contribution

shall be equal to 0.5% of each teacher's salary.

(3) Beginning July 1, 2005, the employer contribution

shall be equal to 0.6% of each teacher's salary.

(4) Beginning July 1, 2007, the employer contribution

shall be a percentage of each teacher's salary to be determined by the Department of Central Management Services by rule, which in each fiscal year shall not exceed 105% of the percentage of each teacher's salary actually required to be  paid  in the previous fiscal year.

These contributions shall be paid by the employer to the System as service
agent for the Department of Central Management Services.  The System may use
the same processes for collecting the contributions required by this subsection
that it uses to collect contributions received from school districts and other
covered employers under the Illinois Pension Code.

The school district or other employing unit may pay these employer
contributions out of any source of funding available for that purpose and
shall forward the contributions to the System on the schedule established
for the payment of member contributions.

(b) The Teachers' Retirement System shall promptly deposit all moneys
collected under subsections (a) and (a-5) of this
Section into the Teacher Health Insurance Security Fund created in Section 6.5
of this Act.  The moneys collected under this Section shall be used only for
the purposes authorized in Section 6.5 of this Act and shall not be considered
to be assets of the Teachers' Retirement System.  Contributions made under this
Section are not transferable to other pension funds or retirement systems and
are not refundable upon termination of service.

(c) On or before November 15 of each year, the Board of Trustees of the
Teachers' Retirement System shall certify to the Governor, the Director of
Central Management Services, and the State Comptroller its estimate of the
total amount of contributions to be paid under subsection (a) of this Section
6.6 for the next fiscal year.  The amount certified shall be decreased or
increased each year by the amount that the actual active teacher contributions
either fell short of or exceeded the estimate used by the Board in making the
certification for the previous fiscal year.  The certification shall include
a detailed explanation of the methods and information that the Board relied
upon in preparing its estimate.  As soon as possible after the effective date
of this amendatory Act of the 92nd General Assembly, the Board
shall recalculate and recertify its certifications for fiscal years 2002 and
2003.

(d) Beginning in fiscal year 1996, on the first day of each month, or
as soon thereafter as may be practical, the State Treasurer and the State
Comptroller shall transfer from the General Revenue Fund to the Teacher Health
Insurance Security Fund 1/12 of the annual amount appropriated for that fiscal
year to the State Comptroller for deposit into the Teacher Health Insurance
Security Fund under Section 1.3 of the State Pension Funds Continuing
Appropriation Act.

(e) Except where otherwise specified in this Section, the definitions
that apply to Article 16 of the Illinois Pension Code apply to this Section.

(f) (Blank).

(Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)