State of Illinois
90th General Assembly
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[ Engrossed ]

90_HB1421

      55 ILCS 5/5-1069.7 new
      65 ILCS 5/10-4-2.7 new
      215 ILCS 5/367f           from Ch. 73, par. 979f
      215 ILCS 5/367g           from Ch. 73, par. 979g
      215 ILCS 5/367h           from Ch. 73, par. 979h
      30 ILCS 805/8.21 new
          Amends the Counties Code, Illinois  Municipal  Code,  and
      Illinois  Insurance  Code.   Provides  that a municipality or
      county must pay the full amount of the cost  of  health  care
      benefits  or  insurance  on  behalf  of surviving spouses and
      dependents of firefighters,  police  officers,  and  deputies
      whose  death  results from the performance of a duty.  Amends
      the State Mandates  Act  to  require  implementation  without
      reimbursement  with  respect to the continuation of insurance
      benefits. Effective immediately.
                                                     LRB9004056JSgc
                                               LRB9004056JSgc
 1        AN  ACT  concerning  insurance   benefits   for   certain
 2    firefighters and police officers.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The  Counties  Code  is  amended  by  adding
 6    Section 5-1069.7 as follows:
 7        (55 ILCS 5/5-1069.7 new)
 8        Sec. 5-1069.7.  Health  benefit  continuation;  death  of
 9    deputy as a result of the performance of a duty.
10        (a)  A  county  that  provides  health  care  benefits or
11    insurance for deputies in accordance with Section 367h of the
12    Illinois Insurance Code must  pay  the  full  amount  of  the
13    charges  for  those  benefits  for  the  surviving spouse and
14    dependent children of deputies whose death is a result  of  a
15    performance of a duty.
16        (b)  The  requirement  that a county pay for the benefits
17    subject to  subsection  (a)  for  a  surviving  spouse  shall
18    terminate upon the earliest to happen of the following:
19             (1)  the  date  on  which the surviving spouse first
20        becomes an insured employee under any other group  health
21        plan;
22             (2)  the   date   on   which  the  surviving  spouse
23        remarries; or
24             (3)  the  date  the  surviving  spouse  reaches  the
25        qualifying age or otherwise establishes eligibility under
26        the Medicare Program  pursuant  to  Title  XVIII  of  the
27        federal Social Security Act.
28        (c)  This Section is a denial and limitation of home rule
29    powers  and  functions  under  subsection (h) of Section 6 of
30    Article VII of the Illinois Constitution.
                            -2-                LRB9004056JSgc
 1        Section 10.  The Illinois Municipal Code  is  amended  by
 2    adding Section 10-4-2.7 as follows:
 3        (65 ILCS 5/10-4-2.7 new)
 4        Sec.  10-4-2.7.   Health  benefit  continuation; death of
 5    police officer, firefighter, or deputy as  a  result  of  the
 6    performance of a duty.
 7        (a)  A municipality that provides health care benefits or
 8    insurance  for  police officers, firefighters, or deputies in
 9    accordance with Section 367f, 367g, or 367h of  the  Illinois
10    Insurance  Code  must  pay the full amount of the charges for
11    those  benefits  for  the  surviving  spouse  and   dependent
12    children of police officers, firefighters, and deputies whose
13    death is a result of a performance of a duty.
14        (b)  The  requirement  that  a  municipality  pay for the
15    benefits subject to subsection (a)  for  a  surviving  spouse
16    shall terminate upon the earliest to happen of the following:
17             (1)  the  date  on  which the surviving spouse first
18        becomes an insured employee under any other group  health
19        plan;
20             (2)  the   date   on   which  the  surviving  spouse
21        remarries; or
22             (3)  the  date  the  surviving  spouse  reaches  the
23        qualifying age or otherwise establishes eligibility under
24        the Medicare Program  pursuant  to  Title  XVIII  of  the
25        federal Social Security Act.
26        (c)  This Section is a denial and limitation of home rule
27    powers  and  functions  under  subsection (h) of Section 6 of
28    Article VII of the Illinois Constitution.
29        Section 15.  The Illinois Insurance Code  is  amended  by
30    changing Sections 367f, 367g, and 367h as follows:
31        (215 ILCS 5/367f) (from Ch. 73, par. 979f)
                            -3-                LRB9004056JSgc
 1        Sec.  367f.   Firemen's continuance privilege. As used in
 2    this Section:
 3        1.  The terms "municipality",  "deferred  pensioner"  and
 4    "creditable  service" shall have the meaning ascribed to such
 5    terms by Sections 4-103, 4-105a and 4-108,  respectively,  of
 6    the Illinois Pension Code, as now or hereafter amended.
 7        2.   The  terms  "fireman"  and  "firemen" shall have the
 8    meaning ascribed to the term "firefighter" by  Section  4-106
 9    of the Illinois Pension Code, and include those persons under
10    the  coverage  of  Article  4  of that Code, as heretofore or
11    hereafter amended.
12        3.  The "retirement or disability period"  of  a  fireman
13    means the period:
14             a.   which  begins on the day the fireman is removed
15        from a municipality's fire department payroll because  of
16        the  occurrence  of  any of the following events, to wit:
17        (i) the fireman retires as  a  deferred  pensioner  under
18        Section  4-105a  of  the  Illinois Pension Code, (ii) the
19        fireman retires from active service as a fireman with  an
20        attained  age  and  accumulated  creditable service which
21        together qualify the fireman  for  immediate  receipt  of
22        retirement  pension  benefits  under Section 4-109 of the
23        Illinois Pension Code, or (iii) the fireman's  disability
24        is  established  under  Section  4-112  of  the  Illinois
25        Pension  Code,  or  (iv)  the  death  of the fireman as a
26        result of performance of duty; and
27             b.  which ends on the first to occur of any  of  the
28        following    events,   to   wit:    (i)   the   fireman's
29        reinstatement or  reentry  into  active  service  on  the
30        municipality's  fire  department  as  provided  for under
31        Article  4  of  the  Illinois  Pension  Code,  (ii)   the
32        fireman's  exercise  of any refund option available under
33        Section 4-116 of the Illinois  Pension  Code,  (iii)  the
34        fireman's  loss pursuant to Section 4-138 of the Illinois
                            -4-                LRB9004056JSgc
 1        Pension Code of any benefits provided for in Article 4 of
 2        that Code, or (iv) the fireman's death or --  if  at  the
 3        time  of the fireman's death the fireman is survived by a
 4        spouse who, in that capacity, is entitled  to  receive  a
 5        surviving  spouse's monthly pension pursuant to Article 4
 6        of the  Illinois  Pension  Code  --  then  the  death  or
 7        remarriage  of  that  spouse,  or (v) if the death of the
 8        fireman resulted from the performance of a duty  and  the
 9        fireman  is  survived  by  a  spouse  or  dependent child
10        eligible to receive benefits under Section 4-110  of  the
11        Illinois  Pension Code (whether or not those benefits are
12        subject to reduction), the cessation of  eligibility  for
13        those benefits.
14        No  policy  of  group accident and health insurance under
15    which firemen employed by  a  municipality  are  insured  for
16    their individual benefit shall be issued or delivered in this
17    State  to  any municipality unless such group policy provides
18    for the election of continued group  insurance  coverage  for
19    the  retirement  or  disability period of each fireman who is
20    insured under the provisions of the group policy on  the  day
21    immediately  preceding  the  day  on  which the retirement or
22    disability period of such fireman begins.   So  long  as  any
23    required  premiums for continued group insurance coverage are
24    paid in accordance with the provisions of the  group  policy,
25    an  election  made  pursuant  to  this  Section shall provide
26    continued group insurance coverage for a  fireman  throughout
27    the  retirement  or  disability  period  of  the fireman and,
28    unless the fireman otherwise elects and subject to any  other
29    provisions  of  the  group  policy which relate either to the
30    provision or to the termination of dependents'  coverage  and
31    which  are  not  inconsistent  with  this  Section,  for  any
32    dependents  of  the  fireman  who are insured under the group
33    policy on the day immediately preceding the day on which  the
34    retirement  or  disability  period  of  the  fireman  begins;
                            -5-                LRB9004056JSgc
 1    provided,  however,  that when such continued group insurance
 2    coverage is in effect with respect to a fireman on  the  date
 3    of  the  fireman's  death  but  the  retirement or disability
 4    period of the fireman does not end with such fireman's death,
 5    then the deceased fireman's surviving spouse upon whose death
 6    or remarriage such retirement or disability period  will  end
 7    shall  be entitled, without further election and upon payment
 8    of any required premiums in accordance with the provisions of
 9    the group policy, to maintain such continued group  insurance
10    coverage  in  effect  until  the  end  of  such retirement or
11    disability period.  Continued group insurance coverage  shall
12    be  provided  in  accordance  with  this  Section at the same
13    premium  rate  from  time  to  time  charged  for  equivalent
14    coverage provided under the  group  policy  with  respect  to
15    covered firemen whose retirement or disability period has not
16    begun,  and no distinction or discrimination in the amount or
17    rate of premiums or in any waiver of premium or other benefit
18    provision shall be made  between  continued  group  insurance
19    coverage  elected  pursuant  to  this  Section and equivalent
20    coverage provided to firemen under  the  group  policy  other
21    than  pursuant  to  the  provisions of this Section; provided
22    that no municipality shall  be  required  by  reason  of  any
23    provision  of this Section to pay any group insurance premium
24    other than  one  that  may  be  negotiated  in  a  collective
25    bargaining agreement. If a person electing continued coverage
26    under  this  Section  becomes eligible for medicare coverage,
27    benefits under the group policy may continue as a  supplement
28    to  the  medicare  coverage  upon  payment  of  any  required
29    premiums  to  maintain  the  benefits  of the group policy as
30    supplemental coverage.
31        Within 15 days of the  beginning  of  the  retirement  or
32    disability  period of any fireman entitled to elect continued
33    group insurance coverage under any  group policy affected  by
34    this   Section  or,  with  respect  to  an  individual  whose
                            -6-                LRB9004056JSgc
 1    eligibility is dependent upon this amendatory  Act  of  1997,
 2    within  30  days  after the effective date of this amendatory
 3    Act of  1997,  whichever  is  later,  the  municipality  last
 4    employing  such  fireman  shall  give  written notice of such
 5    beginning by certified mail, return receipt requested to  the
 6    insurance  company  issuing  such  policy.   The notice shall
 7    include the fireman's name and last known place of  residence
 8    and  the  beginning  date  of  the  fireman's  retirement  or
 9    disability period.
10        Within 15 days of the date of receipt of such notice from
11    the  municipality,  the  insurance company by certified mail,
12    return receipt requested, shall give written  notice  to  the
13    fireman  at  the fireman's last known place of residence that
14    coverage under the group policy  may  be  continued  for  the
15    retirement or disability period of the fireman as provided in
16    this  Section.  Such notice shall set forth:  (i) a statement
17    of election to be filed by the fireman if the fireman  wishes
18    to continue such group insurance coverage, (ii) the amount of
19    monthly premium, including a statement of the portion of such
20    monthly  premium  attributable  to  any  dependents' coverage
21    which the fireman may elect, and (iii) instructions as to the
22    return of the election form to the insurance company  issuing
23    such policy.  Election shall be made, if at all, by returning
24    the  statement  of  election  to  the  insurance  company  by
25    certified mail, return receipt requested within 15 days after
26    having received it.
27        If  the  fireman elects to continue coverage, it shall be
28    the obligation of the fireman  to  pay  the  monthly  premium
29    directly  to  the  municipality which shall forward it to the
30    insurance company issuing the group insurance policy,  or  as
31    otherwise   directed  by  the  insurance  company;  provided,
32    however, that the fireman shall be entitled to  designate  on
33    the  statement  of  election  required  to  be filed with the
34    insurance company that the total  monthly  premium,  or  such
                            -7-                LRB9004056JSgc
 1    portion  thereof  as is not contributed by a municipality, be
 2    deducted by a Firefighter's Pension  Fund  from  any  monthly
 3    pension  payment  otherwise  payable  to  or on behalf of the
 4    fireman pursuant to Article 4 of the Illinois  Pension  Code,
 5    and  be  remitted  by  such  Pension  Fund  to  the insurance
 6    company.   The  portion,  if  any,  of  the  monthly  premium
 7    contributed  by  a  municipality  for  such  continued  group
 8    insurance coverage shall be paid by the municipality directly
 9    to the insurance company issuing the group insurance  policy,
10    or  as  otherwise  directed  by  the insurance company.  Such
11    continued group insurance coverage shall relate back  to  the
12    beginning of the fireman's retirement or disability period.
13        The   amendment,   renewal  or  extension  of  any  group
14    insurance policy affected by this Section shall be deemed  to
15    be  the issuance of a new policy of insurance for purposes of
16    this Section.
17        In the event that  a  municipality  makes  a  program  of
18    accident,  health,  hospital or medical benefits available to
19    its firemen through self-insurance, or by participation in  a
20    pool  or  reciprocal  insurer, or by contract in a form other
21    than a policy of group insurance with  one  or  more  medical
22    service  plans,  health  care  service  corporations,  health
23    maintenance   organizations,   or   any   other  professional
24    corporations  or   plans   under   which   health   care   or
25    reimbursement  for the costs thereof is provided, whether the
26    cost of such benefits is borne by  the  municipality  or  the
27    firemen  or  both,  such  firemen and their surviving spouses
28    shall have the same right to elect continued  coverage  under
29    such  program of benefits as they would have if such benefits
30    were provided by  a  policy  of  group  accident  and  health
31    insurance.   In  such  cases,  the  notice  of right to elect
32    continued coverage shall be sent  by  the  municipality;  the
33    statement  of election shall be sent to the municipality; and
34    references to  the  required  premium  shall  refer  to  that
                            -8-                LRB9004056JSgc
 1    portion  of  the  cost of such benefits which is not borne by
 2    the municipality,  either  voluntarily  or  pursuant  to  the
 3    provisions of a collective bargaining agreement.  In the case
 4    of   a   municipality   providing   such   benefits   through
 5    self-insurance  or  participation  in  a  pool  or reciprocal
 6    insurer, the right  to  elect  continued  coverage  which  is
 7    provided  by  this  paragraph  shall  be implemented and made
 8    available to the firemen of the municipality  and  qualifying
 9    surviving spouses not later than July 1, 1985.
10        The  amendment, renewal or extension of any such contract
11    in a form other than a policy of group insurance policy shall
12    be deemed the formation of a new contract for the purposes of
13    this Section.
14        This  Section  shall  not  limit  the  exercise  of   any
15    conversion privileges available under Section 367e.
16        Pursuant  to  paragraphs  (h)  and  (i)  of  Section 6 of
17    Article  VII  of  the  Illinois  Constitution,  this  Section
18    specifically denies and limits the exercise by  a  home  rule
19    unit of any power which is inconsistent with this Section and
20    all  existing laws and ordinances which are inconsistent with
21    this Section are hereby superseded.  This  Section  does  not
22    preempt  the concurrent exercise by home rule units of powers
23    consistent herewith.
24    (Source: P.A. 86-1444.)
25        (215 ILCS 5/367g) (from Ch. 73, par. 979g)
26        Sec. 367g.  Police officer's continuance  privilege.   As
27    used in this Section:
28        1.   The  terms  "municipality"  and "creditable service"
29    shall have the meaning ascribed to  such  terms  by  Sections
30    3-103  and 3-110, respectively, of the Illinois Pension Code,
31    as now or hereafter amended.
32        The term "deferred pensioner" means a police officer  who
33    has  retired, having accumulated enough creditable service to
                            -9-                LRB9004056JSgc
 1    qualify for a pension, but who has not attained the  required
 2    age.
 3        2.   The  term  "police  officer"  shall have the meaning
 4    ascribed to it by Section 3-106 of the Illinois Pension Code,
 5    and include those persons under the coverage of Article 3  of
 6    that Code, as heretofore or hereafter amended.
 7        3.   The  "retirement  or  disability period" of a police
 8    officer means the period:
 9        a.  which begins on the day the police officer is removed
10    from a municipality's police department  payroll  because  of
11    the  occurrence  of any of the following events, to wit:  (i)
12    the police officer retires as a deferred pensioner, (ii)  the
13    police  officer  retires  from  active  service  as  a police
14    officer with  an  attained  age  and  accumulated  creditable
15    service   which  together  qualify  the  police  officer  for
16    immediate  receipt  of  retirement  pension  benefits   under
17    Section  3-111  of  the  Illinois  Pension Code, or (iii) the
18    police officer's  disability  is  established  under  Section
19    3-115  of the Illinois Pension Code, or (iv) the death of the
20    police officer as a result of the performance of duty; and
21        b.  which ends on the  first  to  occur  of  any  of  the
22    following   events,   to   wit:   (i)  the  police  officer's
23    reinstatement  or  reentry  into  active   service   on   the
24    municipality's   police  department  as  provided  for  under
25    Article 3 of the  Illinois  Pension  Code,  (ii)  the  police
26    officer's  exercise  of  any  refund  option  available under
27    Section 3-124 of the Illinois Pension Code, (iii) the  police
28    officer's  loss  pursuant  to  Section  3-147 of the Illinois
29    Pension Code of any benefits provided for  in  Article  3  of
30    that Code, or (iv) the police officer's death or -- if at the
31    time  of  the  police  officer's  death the police officer is
32    survived by a spouse who, in that capacity,  is  entitled  to
33    receive  a  surviving  spouse's  monthly  pension pursuant to
34    Article 3 of the  Illinois  Pension  Code  --  the  death  or
                            -10-               LRB9004056JSgc
 1    remarriage  of that spouse, or (v) if the death of the police
 2    officer resulted from the  performance  of  a  duty  and  the
 3    police  officer  is  survived  by a spouse or dependent child
 4    eligible to receive benefits under  Section  3-114.1  of  the
 5    Illinois  Pension  Code  (whether  or  not those benefits are
 6    subject to reduction), the cessation of eligibility for those
 7    benefits.
 8        No policy of group accident and  health  insurance  under
 9    which  policemen  employed  by a municipality are insured for
10    their individual benefit shall be issued or delivered in this
11    State to any municipality unless such group  policy  provides
12    for  the  election  of continued group insurance coverage for
13    the retirement or disability period of  each  police  officer
14    who  is  insured  under the provisions of the group policy on
15    the day immediately preceding the day on which the retirement
16    or disability period of such police officer begins.  So  long
17    as  any  required  premiums  for  continued  group  insurance
18    coverage  are  paid  in accordance with the provisions of the
19    group policy, an election made pursuant to this Section shall
20    provide continued  group  insurance  coverage  for  a  police
21    officer throughout the retirement or disability period of the
22    police  officer  and,  unless  the  police  officer otherwise
23    elects and subject to  any  other  provisions  of  the  group
24    policy  which  relate  either  to  the  provision  or  to the
25    termination  of  dependents'  coverage  and  which  are   not
26    inconsistent  with  this  Section,  for any dependents of the
27    police officer who are insured under the group policy on  the
28    day  immediately preceding the day on which the retirement or
29    disability period of the  police  officer  begins;  provided,
30    however, that when such continued group insurance coverage is
31    in effect with respect to a police officer on the date of the
32    police  officer's  death  but  the  retirement  or disability
33    period of the police officer does not end  with  such  police
34    officer's death, then the deceased police officer's surviving
                            -11-               LRB9004056JSgc
 1    spouse  upon  whose  death  or  remarriage such retirement or
 2    disability period will end shall be entitled, without further
 3    election  and  upon  payment  of  any  required  premiums  in
 4    accordance with  the  provisions  of  the  group  policy,  to
 5    maintain  such  continued  group insurance coverage in effect
 6    until the  end  of  such  retirement  or  disability  period.
 7    Continued  group  insurance  coverage  shall  be  provided in
 8    accordance with this Section at the same  premium  rate  from
 9    time  to  time charged for equivalent coverage provided under
10    the group policy with  respect  to  covered  policemen  whose
11    retirement  or  disability  period  has  not  begun,  and  no
12    distinction  or  discrimination  in  the  amount  or  rate of
13    premiums or  in  any  waiver  of  premium  or  other  benefit
14    provision  shall  be  made  between continued group insurance
15    coverage elected pursuant  to  this  Section  and  equivalent
16    coverage  provided  to policemen under the group policy other
17    than pursuant to the provisions  of  this  Section;  provided
18    that  no  municipality  shall  be  required  by reason of any
19    provision of this Section to pay any group insurance  premium
20    other  than  one  that  may  be  negotiated  in  a collective
21    bargaining agreement. If the  group  policy  provides  for  a
22    reduction  in  benefits  and  premium for insureds who become
23    eligible for medicare, such provision shall apply to  persons
24    electing continued coverage under this Section.
25        Within  15  days  of  the  beginning of the retirement or
26    disability period of any police  officer  entitled  to  elect
27    continued  group  insurance  coverage under any  group policy
28    affected by this Section or, with respect  to  an  individual
29    whose  eligibility  is  dependent upon this amendatory Act of
30    1997, within  30  days  after  the  effective  date  of  this
31    amendatory  Act of 1997, whichever is later, the municipality
32    last employing such police officer shall give written  notice
33    of such beginning by certified mail, return receipt requested
34    to  the  insurance  company  issuing such policy.  The notice
                            -12-               LRB9004056JSgc
 1    shall include the police officer's name and last known  place
 2    of  residence  and the beginning date of the police officer's
 3    retirement or disability period.
 4        Within 15 days of the date of receipt of such notice from
 5    the municipality, the insurance company  by  certified  mail,
 6    return  receipt  requested,  shall give written notice to the
 7    police officer at the police officer's last  known  place  of
 8    residence  that  coverage  under  the  group  policy  may  be
 9    continued  for  the  retirement  or  disability period of the
10    police officer as provided in  this  Section.    Such  notice
11    shall  set forth:  (i) a statement of election to be filed by
12    the police officer if the police officer wishes  to  continue
13    such  group  insurance  coverage,  (ii) the amount of monthly
14    premium, including a statement of the portion of such monthly
15    premium attributable to any dependents'  coverage  which  the
16    police  officer  may  elect, and (iii) instructions as to the
17    return of the election form to the insurance company  issuing
18    such policy.  Election shall be made, if at all, by returning
19    the  statement  of  election  to  the  insurance  company  by
20    certified mail, return receipt requested within 15 days after
21    having received it.
22        If  the  police  officer  elects to continue coverage, it
23    shall be the obligation of the  police  officer  to  pay  the
24    monthly  premium  directly  to  the  municipality which shall
25    forward  it  to  the  insurance  company  issuing  the  group
26    insurance policy, or as otherwise directed by  the  insurance
27    company;  provided, however, that the police officer shall be
28    entitled to designate on the statement of  election  required
29    to be filed with the insurance company that the total monthly
30    premium,  or  such portion thereof as is not contributed by a
31    municipality, be deducted by a Police Pension Fund  from  any
32    monthly  pension payment otherwise payable to or on behalf of
33    the police officer pursuant to  Article  3  of  the  Illinois
34    Pension  Code,  and  be  remitted by such Pension Fund to the
                            -13-               LRB9004056JSgc
 1    insurance company.  The  portion,  if  any,  of  the  monthly
 2    premium  contributed  by  a  municipality  for such continued
 3    group insurance coverage shall be paid  by  the  municipality
 4    directly to the insurance company issuing the group insurance
 5    policy,  or  as  otherwise directed by the insurance company.
 6    Such continued group insurance coverage shall relate back  to
 7    the   beginning   of   the  police  officer's  retirement  or
 8    disability period.
 9        The  amendment,  renewal  or  extension  of   any   group
10    insurance  policy affected by this Section shall be deemed to
11    be the issuance of a new policy of insurance for purposes  of
12    this Section.
13        In  the  event  that  a  municipality  makes a program of
14    accident, health, hospital or medical benefits  available  to
15    its   police   officers   through   self-insurance,   or   by
16    participation in a pool or reciprocal insurer, or by contract
17    in  a form other than a policy of group insurance with one or
18    more medical service plans, health care service corporations,
19    health maintenance organizations, or any  other  professional
20    corporations   or   plans   under   which   health   care  or
21    reimbursement for the costs thereof is provided, whether  the
22    cost  of  such  benefits  is borne by the municipality or the
23    police officers or  both,  such  police  officers  and  their
24    surviving   spouses  shall  have  the  same  right  to  elect
25    continued coverage under such program  of  benefits  as  they
26    would  have  if  such  benefits  were provided by a policy of
27    group accident and health  insurance.   In  such  cases,  the
28    notice  of right to elect continued coverage shall be sent by
29    the municipality; the statement of election shall be sent  to
30    the  municipality;  and  references  to  the required premium
31    shall refer to that portion of  the  cost  of  such  benefits
32    which is not borne by the municipality, either voluntarily or
33    pursuant   to  the  provisions  of  a  collective  bargaining
34    agreement.  In the case  of  a  municipality  providing  such
                            -14-               LRB9004056JSgc
 1    benefits through self-insurance or participation in a pool or
 2    reciprocal  insurer,  the  right  to elect continued coverage
 3    which is provided by this paragraph shall be implemented  and
 4    made available to the police officers of the municipality and
 5    qualifying surviving spouses not later than July 1, 1986.
 6        The  amendment, renewal or extension of any such contract
 7    in a form other than a policy of group insurance policy shall
 8    be deemed the formation of a new contract for the purposes of
 9    this Section.
10        This  Section  shall  not  limit  the  exercise  of   any
11    conversion privileges available under Section 367e.
12    (Source: P.A. 84-1010.)
13        (215 ILCS 5/367h) (from Ch. 73, par. 979h)
14        Sec.  367h.   Deputy's continuance privilege.  As used in
15    this Section:
16        1.  The terms  "municipality"  and  "creditable  service"
17    shall  have  the  meaning  ascribed to such terms by Sections
18    7-105 and 7-113, respectively, of the Illinois Pension  Code,
19    as now or hereafter amended.
20        The  term  "deferred  pensioner"  means  a deputy who has
21    retired, having  accumulated  enough  creditable  service  to
22    qualify  for a pension, but who has not attained the required
23    age.
24        2.   The  term  "deputy"  shall  mean  a  "sheriff's  law
25    enforcement employee" as defined in Section  7-109.3  of  the
26    Illinois  Pension  Code,  and  include only persons under the
27    coverage  of  Article  7  of  that  Code,  as  heretofore  or
28    hereafter amended.
29        3.  The "retirement or disability  period"  of  a  deputy
30    means the period:
31        a.  which  begins on the day the deputy is removed from a
32    sheriff's police department payroll because of the occurrence
33    of any of the following  events,  to  wit:   (i)  the  deputy
                            -15-               LRB9004056JSgc
 1    retires as a deferred pensioner, (ii) the deputy retires from
 2    active   service  as  a  deputy  with  an  attained  age  and
 3    accumulated creditable service  which  together  qualify  the
 4    deputy  for  immediate receipt of retirement pension benefits
 5    under Section 7-142.1 of the Illinois Pension Code, or  (iii)
 6    the deputy's disability is established under Article 7 of the
 7    Illinois Pension Code, or (iv) the death of the deputy as the
 8    result of the performance of a duty; and
 9        b.  which  ends  on  the  first  to  occur  of any of the
10    following events, to wit:  (i) the deputy's reinstatement  or
11    reentry   into   active   service  in  the  sheriff's  police
12    department as provided for under Article 7  of  the  Illinois
13    Pension Code, (ii) the deputy's exercise of any refund option
14    or  acceptance  of  any  separation  benefit  available under
15    Article 7 of the Illinois Pension Code,  (iii)  the  deputy's
16    loss  pursuant  to Section 7-219 of the Illinois Pension Code
17    of any benefits provided for in Article 7 of  that  Code,  or
18    (iv)  the deputy's death or -- if at the time of the deputy's
19    death the deputy  is  survived  by  a  spouse  who,  in  that
20    capacity, is entitled to receive a surviving spouse's monthly
21    pension pursuant to Article 7 of the Illinois Pension Code --
22    the  death  or remarriage of that spouse, or (v) if the death
23    of the deputy resulted from the performance of a duty and the
24    deputy is survived by a spouse or dependent child eligible to
25    receive benefits under Article 7 of the Illinois Pension Code
26    (whether or not those benefits are subject to reduction), the
27    cessation of eligibility for those benefits.
28        No policy of group accident and  health  insurance  under
29    which  deputies  employed  by  a municipality are insured for
30    their individual benefit shall be issued or delivered in this
31    State to any municipality unless such group  policy  provides
32    for  the  election  of continued group insurance coverage for
33    the retirement or disability period of  each  deputy  who  is
34    insured  under  the provisions of the group policy on the day
                            -16-               LRB9004056JSgc
 1    immediately preceding the day  on  which  the  retirement  or
 2    disability  period  of  such  deputy  begins.  So long as any
 3    required premiums for continued group insurance coverage  are
 4    paid  in  accordance with the provisions of the group policy,
 5    an election made  pursuant  to  this  Section  shall  provide
 6    continued  group  insurance  coverage for a deputy throughout
 7    the retirement or disability period of the deputy and, unless
 8    the  deputy  otherwise  elects  and  subject  to  any   other
 9    provisions  of  the  group  policy which relate either to the
10    provision or to the termination of dependents'  coverage  and
11    which  are  not  inconsistent  with  this  Section,  for  any
12    dependents  of  the  deputy  who  are insured under the group
13    policy on the  day immediately preceding the day on which the
14    retirement  or  disability  period  of  the  deputy   begins;
15    provided,  however,  that when such continued group insurance
16    coverage is in effect with respect to a deputy on the date of
17    the deputy's death but the retirement or disability period of
18    the deputy does not end with such deputy's  death,  then  the
19    deceased  deputy's  surviving  spouse  upon  whose  death  or
20    remarriage  such  retirement  or  disability  period will end
21    shall be entitled, without further election and upon  payment
22    of any required premiums in accordance with the provisions of
23    the  group policy, to maintain such continued group insurance
24    coverage in effect  until  the  end  of  such  retirement  or
25    disability  period.  Continued group insurance coverage shall
26    be provided in accordance  with  this  Section  at  the  same
27    premium  rate  from  time  to  time  charged  for  equivalent
28    coverage  provided  under  the  group  policy with respect to
29    covered deputies whose retirement or  disability  period  has
30    not begun, and no distinction or discrimination in the amount
31    or  rate  of  premiums  or  in any waiver of premium or other
32    benefit provision  shall  be  made  between  continued  group
33    insurance  coverage  elected  pursuant  to  this  Section and
34    equivalent coverage provided  to  deputies  under  the  group
                            -17-               LRB9004056JSgc
 1    policy other than pursuant to the provisions of this Section;
 2    provided  that no municipality shall be required by reason of
 3    any provision of this Section  to  pay  any  group  insurance
 4    premium other than one that may be negotiated in a collective
 5    bargaining  agreement.  If  the  group  policy provides for a
 6    reduction in benefits and premium  for  insureds  who  become
 7    eligible  for medicare, such provision shall apply to persons
 8    electing continued coverage under this Section.
 9        Within 15 days of the  beginning  of  the  retirement  or
10    disability  period  of any deputy entitled to elect continued
11    group insurance coverage under any  group policy affected  by
12    this   Section  or,  with  respect  to  an  individual  whose
13    eligibility is dependent upon this amendatory  Act  of  1997,
14    within  30  days  after the effective date of this amendatory
15    Act of  1997,  whichever  is  later,  the  municipality  last
16    employing  such  deputy  shall  give  written  notice of such
17    beginning by certified mail, return receipt requested, to the
18    insurance company issuing  such  policy.   The  notice  shall
19    include  the  deputy's name and last known place of residence
20    and  the  beginning  date  of  the  deputy's  retirement   or
21    disability period.
22        Within 15 days of the date of receipt of such notice from
23    the  municipality,  the  insurance company by certified mail,
24    return receipt requested, shall give written  notice  to  the
25    deputy  at  the  deputy's  last known place of residence that
26    coverage under the group policy  may  be  continued  for  the
27    retirement  or disability period of the deputy as provided in
28    this Section.  Such notice shall set forth:  (i) a  statement
29    of election to be filed by the deputy if the deputy wishes to
30    continue  such  group  insurance coverage, (ii) the amount of
31    monthly premium, including a statement of the portion of such
32    monthly premium  attributable  to  any  dependents'  coverage
33    which  the deputy may elect, and (iii) instructions as to the
34    return of the election form to the insurance company  issuing
                            -18-               LRB9004056JSgc
 1    such policy.  Election shall be made, if at all, by returning
 2    the  statement  of  election  to  the  insurance  company  by
 3    certified  mail,  return  receipt  requested,  within 15 days
 4    after having received it.
 5        If the deputy elects to continue coverage,  it  shall  be
 6    the  obligation  of  the  deputy  to  pay the monthly premium
 7    directly to the municipality which shall forward  it  to  the
 8    insurance  company  issuing the group insurance policy, or as
 9    otherwise  directed  by  the  insurance  company;   provided,
10    however,  that  the  deputy shall be entitled to designate on
11    the statement of election  required  to  be  filed  with  the
12    insurance  company  that  the  total monthly premium, or such
13    portion thereof as is not contributed by a  municipality,  be
14    deducted  by  the Illinois Municipal Retirement Fund from the
15    monthly pension payment otherwise payable to or on behalf  of
16    the  deputy pursuant to Article 7 of the the Illinois Pension
17    Code, and be remitted by such Fund to the insurance  company.
18    The  portion, if any, of the monthly premium contributed by a
19    municipality for  such  continued  group  insurance  coverage
20    shall  be  paid  by  the  directly  to  the insurance company
21    issuing the group insurance policy, or  as  directed  by  the
22    insurance  company.   Such continued group insurance coverage
23    shall relate back to the beginning of the deputy's retirement
24    or disability period.
25        The  amendment,  renewal  or  extension  of   any   group
26    insurance  policy affected by this Section shall be deemed to
27    be the issuance of a new policy of insurance for purposes  of
28    this Section.
29        In  the  event  that  a  municipality  makes a program of
30    accident, health, hospital or medical benefits  available  to
31    its deputies through self-insurance, or by participation in a
32    pool  or  reciprocal  insurer, or by contract in a form other
33    than a policy of group insurance with  one  or  more  medical
34    service  plans,  health  care  service  corporations,  health
                            -19-               LRB9004056JSgc
 1    maintenance   organizations,   or   any   other  professional
 2    corporations  or   plans   under   which   health   care   or
 3    reimbursement  for the costs thereof is provided, whether the
 4    cost of such benefits is borne by  the  municipality  or  the
 5    deputies  or  both, such deputies and their surviving spouses
 6    shall have the same right to elect continued  coverage  under
 7    such  program of benefits as they would have if such benefits
 8    were provided by  a  policy  of  group  accident  and  health
 9    insurance.   In  such  cases,  the  notice  of right to elect
10    continued coverage shall be sent  by  the  municipality;  the
11    statement  of election shall be sent to the municipality; and
12    references to  the  required  premium  shall  refer  to  that
13    portion  of  the  cost of such benefits which is not borne by
14    the municipality,  either  voluntarily  or  pursuant  to  the
15    provisions of a collective bargaining agreement.  In the case
16    of   a   municipality   providing   such   benefits   through
17    self-insurance  or  participation  in  a  pool  or reciprocal
18    insurer, the right  to  elect  continued  coverage  which  is
19    provided  by  this  paragraph  shall  be implemented and made
20    available to the deputies of the municipality and  qualifying
21    surviving spouses not later than July 1, 1986.
22        The  amendment, renewal or extension of any such contract
23    in a form other than a policy of group insurance policy shall
24    be deemed the formation of a new contract for the purposes of
25    this Section.
26        This  Section  shall  not  limit  the  exercise  of   any
27    conversion privileges available under Section 367e.
28    (Source: P.A. 84-1010.)
29        Section  20.  The State Mandates Act is amended by adding
30    Section 8.21 as follows:
31        (30 ILCS 805/8.21 new)
32        Sec. 8.21.  Exempt mandate.  Notwithstanding  Sections  6
                            -20-               LRB9004056JSgc
 1    and  8 of this Act, no reimbursement by the State is required
 2    for  the  implementation  of  any  mandate  created  by  this
 3    amendatory Act of 1997.
 4        Section 99. Effective date.  This Act takes  effect  upon
 5    becoming law.

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