99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0783
 
Introduced 2/4/2015, by Sen. Michael E. Hastings
 
SYNOPSIS AS INTRODUCED:
 

 
40 ILCS 5/17-142.1  from Ch. 108 1/2, par. 17-142.1

     Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that the Board of the Fund shall have the option of administering the health insurance program, in whole or in part, if deemed to be the most efficient method of providing retiree health insurance. Effective immediately.
  


LRB099 07477 EFG 27599 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB0783LRB099 07477 EFG 27599 b


  
1    AN ACT concerning public employee benefits.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Pension Code is amended  by changing 
5Section 17-142.1 as follows:
 
6    (40 ILCS 5/17-142.1)  (from Ch. 108 1/2, par. 17-142.1)

7    Sec. 17-142.1. Health insurance. 
8    (a) To defray health insurance costs.  To provide for the

9partial reimbursement of health insurance costs.


10        (1) On the first day of September of each year, 
11    beginning in 1988,
the Board may, by separate warrant, pay 
12    to each recipient of a service
retirement, disability 
13    retirement or survivor's pension an amount to be
determined 
14    by the Board, which shall represent partial reimbursement 
15    for
the cost of the recipient's health insurance coverage.


16        (2) In lieu of the annual payment authorized in 
17    subdivision (1), for
pensioners enrolled in the Fund's 
18    regular health care deduction plans, the
Fund may pay the 
19    health insurance premium reimbursement on a monthly rather

20    than annual basis, at the percentage rate established from 
21    time to time by
the Board.  If the Board so directs, these 
22    monthly payments may be made in
the form of a direct 
23    payment of premium and a reduction in the amount
deducted 
 
 
SB0783- 2 -LRB099 07477 EFG 27599 b

1    from the annuity, rather than in the form of reimbursement 
2    by
separate warrant.


3        (3) Total payments under this Section in any year may 
4    not exceed
 $65,000,000 plus any amount that was authorized 
5    to be paid
under this Section in the preceding year but was 
6    not actually paid by the
Board, including any interest 
7    earned thereon.


8        (4) The total amount of payments under this Section in 
9    any year may not exceed 75% of the total cost of health 
10    insurance coverage in that year for all the recipients who 
11    receive payments authorized by this Section in that year.

12    (b) To  administer the retiree health insurance program.  The 
13Board of the Fund shall have the option of administering the 
14health insurance program, in whole or in part, if deemed to be 
15the most efficient method of providing retiree health 
16insurance. 
17(Source: P.A. 93-677, eff. 6-28-04.)

 
 
18    Section 99. Effective date. This Act takes effect upon 
19becoming law.