Sen. Omar Aquino

Filed: 4/25/2019

 

 


 

 


 
10100HB2029sam001LRB101 05013 RPS 59768 a

1
AMENDMENT TO HOUSE BILL 2029

2    AMENDMENT NO. ______. Amend House Bill 2029 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Section 3 as follows:
 
6    (5 ILCS 375/3)  (from Ch. 127, par. 523)
7    Sec. 3. Definitions. Unless the context otherwise
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13    (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of

 

 

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1administration executed with the Department.
2    (b) "Annuitant" means (1) an employee who retires, or has
3retired, on or after January 1, 1966 on an immediate annuity
4under the provisions of Articles 2, 14 (including an employee
5who has elected to receive an alternative retirement
6cancellation payment under Section 14-108.5 of the Illinois
7Pension Code in lieu of an annuity or who meets the criteria
8for retirement, but in lieu of receiving an annuity under that
9Article has elected to receive an accelerated pension benefit
10payment under Section 14-147.5 of that Article), 15 (including
11an employee who has retired under the optional retirement
12program established under Section 15-158.2 or who meets the
13criteria for retirement but in lieu of receiving an annuity
14under that Article has elected to receive an accelerated
15pension benefit payment under Section 15-185.5 of the Article),
16paragraphs (2), (3), or (5) of Section 16-106 (including an
17employee who meets the criteria for retirement, but in lieu of
18receiving an annuity under that Article has elected to receive
19an accelerated pension benefit payment under Section 16-190.5
20of the Illinois Pension Code), or Article 18 of the Illinois
21Pension Code; (2) any person who was receiving group insurance
22coverage under this Act as of March 31, 1978 by reason of his
23status as an annuitant, even though the annuity in relation to
24which such coverage was provided is a proportional annuity
25based on less than the minimum period of service required for a
26retirement annuity in the system involved; (3) any person not

 

 

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1otherwise covered by this Act who has retired as a
2participating member under Article 2 of the Illinois Pension
3Code but is ineligible for the retirement annuity under Section
42-119 of the Illinois Pension Code; (4) the spouse of any
5person who is receiving a retirement annuity under Article 18
6of the Illinois Pension Code and who is covered under a group
7health insurance program sponsored by a governmental employer
8other than the State of Illinois and who has irrevocably
9elected to waive his or her coverage under this Act and to have
10his or her spouse considered as the "annuitant" under this Act
11and not as a "dependent"; or (5) an employee who retires, or
12has retired, from a qualified position, as determined according
13to rules promulgated by the Director, under a qualified local
14government, a qualified rehabilitation facility, a qualified
15domestic violence shelter or service, or a qualified child
16advocacy center. (For definition of "retired employee", see (p)
17post).
18    (b-5) (Blank).
19    (b-6) (Blank).
20    (b-7) (Blank).
21    (c) "Carrier" means (1) an insurance company, a corporation
22organized under the Limited Health Service Organization Act or
23the Voluntary Health Services Plan Act, a partnership, or other
24nongovernmental organization, which is authorized to do group
25life or group health insurance business in Illinois, or (2) the
26State of Illinois as a self-insurer.

 

 

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1    (d) "Compensation" means salary or wages payable on a
2regular payroll by the State Treasurer on a warrant of the
3State Comptroller out of any State, trust or federal fund, or
4by the Governor of the State through a disbursing officer of
5the State out of a trust or out of federal funds, or by any
6Department out of State, trust, federal or other funds held by
7the State Treasurer or the Department, to any person for
8personal services currently performed, and ordinary or
9accidental disability benefits under Articles 2, 14, 15
10(including ordinary or accidental disability benefits under
11the optional retirement program established under Section
1215-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
13Article 18 of the Illinois Pension Code, for disability
14incurred after January 1, 1966, or benefits payable under the
15Workers' Compensation or Occupational Diseases Act or benefits
16payable under a sick pay plan established in accordance with
17Section 36 of the State Finance Act. "Compensation" also means
18salary or wages paid to an employee of any qualified local
19government, qualified rehabilitation facility, qualified
20domestic violence shelter or service, or qualified child
21advocacy center.
22    (e) "Commission" means the State Employees Group Insurance
23Advisory Commission authorized by this Act. Commencing July 1,
241984, "Commission" as used in this Act means the Commission on
25Government Forecasting and Accountability as established by
26the Legislative Commission Reorganization Act of 1984.

 

 

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1    (f) "Contributory", when referred to as contributory
2coverage, shall mean optional coverages or benefits elected by
3the member toward the cost of which such member makes
4contribution, or which are funded in whole or in part through
5the acceptance of a reduction in earnings or the foregoing of
6an increase in earnings by an employee, as distinguished from
7noncontributory coverage or benefits which are paid entirely by
8the State of Illinois without reduction of the member's salary.
9    (g) "Department" means any department, institution, board,
10commission, officer, court or any agency of the State
11government receiving appropriations and having power to
12certify payrolls to the Comptroller authorizing payments of
13salary and wages against such appropriations as are made by the
14General Assembly from any State fund, or against trust funds
15held by the State Treasurer and includes boards of trustees of
16the retirement systems created by Articles 2, 14, 15, 16 and 18
17of the Illinois Pension Code. "Department" also includes the
18Illinois Comprehensive Health Insurance Board, the Board of
19Examiners established under the Illinois Public Accounting
20Act, and the Illinois Finance Authority.
21    (h) "Dependent", when the term is used in the context of
22the health and life plan, means a member's spouse and any child
23(1) from birth to age 26 including an adopted child, a child
24who lives with the member from the time of the placement for
25adoption until entry of an order of adoption, a stepchild or
26adjudicated child, or a child who lives with the member if such

 

 

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1member is a court appointed guardian of the child or (2) age 19
2or over who has a mental or physical disability from a cause
3originating prior to the age of 19 (age 26 if enrolled as an
4adult child dependent). For the health plan only, the term
5"dependent" also includes (1) any person enrolled prior to the
6effective date of this Section who is dependent upon the member
7to the extent that the member may claim such person as a
8dependent for income tax deduction purposes and (2) any person
9who has received after June 30, 2000 an organ transplant and
10who is financially dependent upon the member and eligible to be
11claimed as a dependent for income tax purposes. A member
12requesting to cover any dependent must provide documentation as
13requested by the Department of Central Management Services and
14file with the Department any and all forms required by the
15Department.
16    (i) "Director" means the Director of the Illinois
17Department of Central Management Services.
18    (j) "Eligibility period" means the period of time a member
19has to elect enrollment in programs or to select benefits
20without regard to age, sex or health.
21    (k) "Employee" means and includes each officer or employee
22in the service of a department who (1) receives his
23compensation for service rendered to the department on a
24warrant issued pursuant to a payroll certified by a department
25or on a warrant or check issued and drawn by a department upon
26a trust, federal or other fund or on a warrant issued pursuant

 

 

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1to a payroll certified by an elected or duly appointed officer
2of the State or who receives payment of the performance of
3personal services on a warrant issued pursuant to a payroll
4certified by a Department and drawn by the Comptroller upon the
5State Treasurer against appropriations made by the General
6Assembly from any fund or against trust funds held by the State
7Treasurer, and (2) is employed full-time or part-time in a
8position normally requiring actual performance of duty during
9not less than 1/2 of a normal work period, as established by
10the Director in cooperation with each department, except that
11persons elected by popular vote will be considered employees
12during the entire term for which they are elected regardless of
13hours devoted to the service of the State, and (3) except that
14"employee" does not include any person who is not eligible by
15reason of such person's employment to participate in one of the
16State retirement systems under Articles 2, 14, 15 (either the
17regular Article 15 system or the optional retirement program
18established under Section 15-158.2) or 18, or under paragraph
19(2), (3), or (5) of Section 16-106, of the Illinois Pension
20Code, but such term does include persons who are employed
21during the 6 month qualifying period under Article 14 of the
22Illinois Pension Code. Such term also includes any person who
23(1) after January 1, 1966, is receiving ordinary or accidental
24disability benefits under Articles 2, 14, 15 (including
25ordinary or accidental disability benefits under the optional
26retirement program established under Section 15-158.2),

 

 

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1paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
2the Illinois Pension Code, for disability incurred after
3January 1, 1966, (2) receives total permanent or total
4temporary disability under the Workers' Compensation Act or
5Occupational Disease Act as a result of injuries sustained or
6illness contracted in the course of employment with the State
7of Illinois, or (3) is not otherwise covered under this Act and
8has retired as a participating member under Article 2 of the
9Illinois Pension Code but is ineligible for the retirement
10annuity under Section 2-119 of the Illinois Pension Code.
11However, a person who satisfies the criteria of the foregoing
12definition of "employee" except that such person is made
13ineligible to participate in the State Universities Retirement
14System by clause (4) of subsection (a) of Section 15-107 of the
15Illinois Pension Code is also an "employee" for the purposes of
16this Act. "Employee" also includes any person receiving or
17eligible for benefits under a sick pay plan established in
18accordance with Section 36 of the State Finance Act. "Employee"
19also includes (i) each officer or employee in the service of a
20qualified local government, including persons appointed as
21trustees of sanitary districts regardless of hours devoted to
22the service of the sanitary district, (ii) each employee in the
23service of a qualified rehabilitation facility, (iii) each
24full-time employee in the service of a qualified domestic
25violence shelter or service, and (iv) each full-time employee
26in the service of a qualified child advocacy center, as

 

 

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1determined according to rules promulgated by the Director.
2    (l) "Member" means an employee, annuitant, retired
3employee or survivor. In the case of an annuitant or retired
4employee who first becomes an annuitant or retired employee on
5or after the effective date of this amendatory Act of the 97th
6General Assembly, the individual must meet the minimum vesting
7requirements of the applicable retirement system in order to be
8eligible for group insurance benefits under that system. In the
9case of a survivor who first becomes a survivor on or after the
10effective date of this amendatory Act of the 97th General
11Assembly, the deceased employee, annuitant, or retired
12employee upon whom the annuity is based must have been eligible
13to participate in the group insurance system under the
14applicable retirement system in order for the survivor to be
15eligible for group insurance benefits under that system.
16    (m) "Optional coverages or benefits" means those coverages
17or benefits available to the member on his or her voluntary
18election, and at his or her own expense.
19    (n) "Program" means the group life insurance, health
20benefits and other employee benefits designed and contracted
21for by the Director under this Act.
22    (o) "Health plan" means a health benefits program offered
23by the State of Illinois for persons eligible for the plan.
24    (p) "Retired employee" means any person who would be an
25annuitant as that term is defined herein but for the fact that
26such person retired prior to January 1, 1966. Such term also

 

 

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1includes any person formerly employed by the University of
2Illinois in the Cooperative Extension Service who would be an
3annuitant but for the fact that such person was made ineligible
4to participate in the State Universities Retirement System by
5clause (4) of subsection (a) of Section 15-107 of the Illinois
6Pension Code.
7    (q) "Survivor" means a person receiving an annuity as a
8survivor of an employee or of an annuitant. "Survivor" also
9includes: (1) the surviving dependent of a person who satisfies
10the definition of "employee" except that such person is made
11ineligible to participate in the State Universities Retirement
12System by clause (4) of subsection (a) of Section 15-107 of the
13Illinois Pension Code; (2) the surviving dependent of any
14person formerly employed by the University of Illinois in the
15Cooperative Extension Service who would be an annuitant except
16for the fact that such person was made ineligible to
17participate in the State Universities Retirement System by
18clause (4) of subsection (a) of Section 15-107 of the Illinois
19Pension Code; and (3) the surviving dependent of a person who
20was an annuitant under this Act by virtue of receiving an
21alternative retirement cancellation payment under Section
2214-108.5 of the Illinois Pension Code; and (4) a person who
23would be receiving an annuity as a survivor of an annuitant
24except that the annuitant elected on or after June 4, 2018 to
25receive an accelerated pension benefit payment under Section
2614-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code in

 

 

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1lieu of receiving an annuity.
2    (q-2) "SERS" means the State Employees' Retirement System
3of Illinois, created under Article 14 of the Illinois Pension
4Code.
5    (q-3) "SURS" means the State Universities Retirement
6System, created under Article 15 of the Illinois Pension Code.
7    (q-4) "TRS" means the Teachers' Retirement System of the
8State of Illinois, created under Article 16 of the Illinois
9Pension Code.
10    (q-5) (Blank).
11    (q-6) (Blank).
12    (q-7) (Blank).
13    (r) "Medical services" means the services provided within
14the scope of their licenses by practitioners in all categories
15licensed under the Medical Practice Act of 1987.
16    (s) "Unit of local government" means any county,
17municipality, township, school district (including a
18combination of school districts under the Intergovernmental
19Cooperation Act), special district or other unit, designated as
20a unit of local government by law, which exercises limited
21governmental powers or powers in respect to limited
22governmental subjects, any not-for-profit association with a
23membership that primarily includes townships and township
24officials, that has duties that include provision of research
25service, dissemination of information, and other acts for the
26purpose of improving township government, and that is funded

 

 

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1wholly or partly in accordance with Section 85-15 of the
2Township Code; any not-for-profit corporation or association,
3with a membership consisting primarily of municipalities, that
4operates its own utility system, and provides research,
5training, dissemination of information, or other acts to
6promote cooperation between and among municipalities that
7provide utility services and for the advancement of the goals
8and purposes of its membership; the Southern Illinois
9Collegiate Common Market, which is a consortium of higher
10education institutions in Southern Illinois; the Illinois
11Association of Park Districts; and any hospital provider that
12is owned by a county that has 100 or fewer hospital beds and
13has not already joined the program. "Qualified local
14government" means a unit of local government approved by the
15Director and participating in a program created under
16subsection (i) of Section 10 of this Act.
17    (t) "Qualified rehabilitation facility" means any
18not-for-profit organization that is accredited by the
19Commission on Accreditation of Rehabilitation Facilities or
20certified by the Department of Human Services (as successor to
21the Department of Mental Health and Developmental
22Disabilities) to provide services to persons with disabilities
23and which receives funds from the State of Illinois for
24providing those services, approved by the Director and
25participating in a program created under subsection (j) of
26Section 10 of this Act.

 

 

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1    (u) "Qualified domestic violence shelter or service" means
2any Illinois domestic violence shelter or service and its
3administrative offices funded by the Department of Human
4Services (as successor to the Illinois Department of Public
5Aid), approved by the Director and participating in a program
6created under subsection (k) of Section 10.
7    (v) "TRS benefit recipient" means a person who:
8        (1) is not a "member" as defined in this Section; and
9        (2) is receiving a monthly benefit or retirement
10    annuity under Article 16 of the Illinois Pension Code or
11    would be receiving such monthly benefit or retirement
12    annuity except that the benefit recipient elected on or
13    after June 4, 2018 to receive an accelerated pension
14    benefit payment under Section 16-190.5 of the Illinois
15    Pension Code in lieu of receiving an annuity; and
16        (3) either (i) has at least 8 years of creditable
17    service under Article 16 of the Illinois Pension Code, or
18    (ii) was enrolled in the health insurance program offered
19    under that Article on January 1, 1996, or (iii) is the
20    survivor of a benefit recipient who had at least 8 years of
21    creditable service under Article 16 of the Illinois Pension
22    Code or was enrolled in the health insurance program
23    offered under that Article on the effective date of this
24    amendatory Act of 1995, or (iv) is a recipient or survivor
25    of a recipient of a disability benefit under Article 16 of
26    the Illinois Pension Code.

 

 

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1    (w) "TRS dependent beneficiary" means a person who:
2        (1) is not a "member" or "dependent" as defined in this
3    Section; and
4        (2) is a TRS benefit recipient's: (A) spouse, (B)
5    dependent parent who is receiving at least half of his or
6    her support from the TRS benefit recipient, or (C) natural,
7    step, adjudicated, or adopted child who is (i) under age
8    26, (ii) was, on January 1, 1996, participating as a
9    dependent beneficiary in the health insurance program
10    offered under Article 16 of the Illinois Pension Code, or
11    (iii) age 19 or over who has a mental or physical
12    disability from a cause originating prior to the age of 19
13    (age 26 if enrolled as an adult child).
14    "TRS dependent beneficiary" does not include, as indicated
15under paragraph (2) of this subsection (w), a dependent of the
16survivor of a TRS benefit recipient who first becomes a
17dependent of a survivor of a TRS benefit recipient on or after
18the effective date of this amendatory Act of the 97th General
19Assembly unless that dependent would have been eligible for
20coverage as a dependent of the deceased TRS benefit recipient
21upon whom the survivor benefit is based.
22    (x) "Military leave" refers to individuals in basic
23training for reserves, special/advanced training, annual
24training, emergency call up, activation by the President of the
25United States, or any other training or duty in service to the
26United States Armed Forces.

 

 

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1    (y) (Blank).
2    (z) "Community college benefit recipient" means a person
3who:
4        (1) is not a "member" as defined in this Section; and
5        (2) is receiving a monthly survivor's annuity or
6    retirement annuity under Article 15 of the Illinois Pension
7    Code or would be receiving such monthly survivor's annuity
8    or retirement annuity except that the benefit recipient
9    elected on or after June 4, 2018 to receive an accelerated
10    pension benefit payment under Section 15-185.5 of the
11    Illinois Pension Code in lieu of receiving an annuity; and
12        (3) either (i) was a full-time employee of a community
13    college district or an association of community college
14    boards created under the Public Community College Act
15    (other than an employee whose last employer under Article
16    15 of the Illinois Pension Code was a community college
17    district subject to Article VII of the Public Community
18    College Act) and was eligible to participate in a group
19    health benefit plan as an employee during the time of
20    employment with a community college district (other than a
21    community college district subject to Article VII of the
22    Public Community College Act) or an association of
23    community college boards, or (ii) is the survivor of a
24    person described in item (i).
25    (aa) "Community college dependent beneficiary" means a
26person who:

 

 

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1        (1) is not a "member" or "dependent" as defined in this
2    Section; and
3        (2) is a community college benefit recipient's: (A)
4    spouse, (B) dependent parent who is receiving at least half
5    of his or her support from the community college benefit
6    recipient, or (C) natural, step, adjudicated, or adopted
7    child who is (i) under age 26, or (ii) age 19 or over and
8    has a mental or physical disability from a cause
9    originating prior to the age of 19 (age 26 if enrolled as
10    an adult child).
11    "Community college dependent beneficiary" does not
12include, as indicated under paragraph (2) of this subsection
13(aa), a dependent of the survivor of a community college
14benefit recipient who first becomes a dependent of a survivor
15of a community college benefit recipient on or after the
16effective date of this amendatory Act of the 97th General
17Assembly unless that dependent would have been eligible for
18coverage as a dependent of the deceased community college
19benefit recipient upon whom the survivor annuity is based.
20    (bb) "Qualified child advocacy center" means any Illinois
21child advocacy center and its administrative offices funded by
22the Department of Children and Family Services, as defined by
23the Children's Advocacy Center Act (55 ILCS 80/), approved by
24the Director and participating in a program created under
25subsection (n) of Section 10.
26    (cc) "Placement for adoption" means the assumption and

 

 

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1retention by a member of a legal obligation for total or
2partial support of a child in anticipation of adoption of the
3child. The child's placement with the member terminates upon
4the termination of such legal obligation.
5(Source: P.A. 99-143, eff. 7-27-15; 100-355, eff. 1-1-18;
6100-587, eff. 6-4-18.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".