95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB3612


 
Introduced 2/28/2007, by Rep. JoAnn D. Osmond
 
SYNOPSIS AS INTRODUCED:
 		













30 ILCS 105/14a.5










    Amends the State Finance Act. Provides that in addition to the lump sum payment incentive program provided to State employees who terminate employment with the State,  the program may also provide for payment to participants or their health benefit coverage providers of an  amount representing the net cost to the participating employee  of his or her health benefit coverage under the State Employees Group Insurance Act of 1971 or applicable COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) insurance continuation provisions for the life of the participant (now, only up to 6 months immediately following termination of  State service). Deletes a provision concerning the maximum pay out to State employees under this program.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB3612

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    AN ACT concerning insurance.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The State Finance Act is amended  by changing 
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Section 14a.5 as follows:
 
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    (30 ILCS 105/14a.5)
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    Sec. 14a.5. Maximum incentive payments for early 
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termination of  State service.
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    (a) The Department of Central Management Services shall 
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create, adopt by emergency rulemaking under the Illinois 
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Administrative Procedure Act through the Joint Committee on 
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Administrative Rules by October 1, 2004, and administer a 
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program of incentive payments for early termination of State 
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service.   The program shall provide for the payment of a lump 
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sum incentive to certain persons who terminate State employment 
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on or after November 1, 2004 but on or before December 31, 
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2004.  The lump sum payment to any individual under the program 
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shall not exceed 25% of final monthly rate of pay for each 
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completed year of State employment, nor shall it exceed the 
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compensation earned by the individual during the 6 months 
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immediately preceding his or her termination from State 
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service, and is payable out of the personal services 
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appropriation  from which the employee's salary is paid.   The 
 


 






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rules of the program may limit the number of individuals listed 
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under Section 14-108.5(b)(1) of the Illinois Pension Code who 
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may participate in the program and shall specify how the lump 
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sum amount will be determined and vouchered; provided, however, 
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that all employees within the same title shall be provided lump 
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sum amounts on the same terms, varying only due to their time 
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of State service. The director or other head of a department 
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shall limit the number of individuals listed under Section 
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14-108.5(b)(2) of the Illinois Pension Code who may participate 
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in the program and shall specify the amount of the lump sum and 
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how the lump sum amount will be determined and vouchered.
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    (b) In addition to the lump sum payment provided under 
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subsection (a), the program may also provide for payment to 
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participants or their health benefit coverage providers of an  
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amount representing the net cost to the participating employee  
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of his or her health benefit coverage under the State Employees 
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Group Insurance Act of 1971 or applicable COBRA (Consolidated 
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Omnibus Budget Reconciliation Act of 1985) insurance 
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continuation provisions for the life of the participant
up to  6 
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months immediately following termination of  State service.  The 
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amount payable to any participant under this subsection shall 
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not exceed $3,600 and is payable out of the personal services 
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appropriation  from which the employee's salary is paid. The 
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program rules shall specify how the amount payable under this 
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subsection will be determined and vouchered.

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    (c) The program authorized under this Section applies only 
 


 






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to a person who (1) was an active employee of the State of 
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Illinois on any day during June 2004 in a position listed in 
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subsection (b) of Section 14-108.5 of the Illinois Pension Code 
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and was continuously employed in a position listed in 
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subsection (b) of Section 14-108.5 of the Illinois Pension Code 
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on and after January 1, 2004, (2) applies in writing to the 
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Department of Central Management Services, in the case of a 
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person listed under Section 14-108.5(b)(1) of the Illinois 
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Pension Code, or to the director or other head of the 
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department at which he or she is employed, in the case of a 
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person listed under Section 14-108.5(b)(2) of the Illinois 
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Pension Code, on or before October 31, 2004, (3) does not 
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accept an alternative retirement cancellation payment under 
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Section 14-108.5 of the Illinois Pension Code, and (4) 
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terminates his or her State employment on or before December 
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31, 2004.
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    (d) A participant in the program who returns to State 
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employment (other than as an elected official or as a  temporary 
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employee for not more than 75 days per calendar year) thereby 
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forfeits the incentive payments received under the program and 
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must repay those amounts to the Department of Central 
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Management Services, in the case of a person listed under 
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Section 14-108.5(b)(1) of the Illinois Pension Code, or to the 
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department at which he or she is employed, in the case of a 
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person listed under Section 14-108.5(b)(2) of the Illinois 
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Pension Code, within 60 days after his or her return to State 
 


 






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employment.

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(Source: P.A. 93-839, eff. 7-30-04.)