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.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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

 

 

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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.