94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2961

 

Introduced 1/20/2006, by Sen. Iris Y. Martinez

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/3   from Ch. 127, par. 523
5 ILCS 375/6.9
5 ILCS 375/6.10

    Amends the State Employees Group Insurance Act of 1971. Removes the prohibition against participation by community college districts subject to Article VII of the Public Community College Act and their retired employees.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The State Employees Group Insurance Act of 1971
5 is amended by changing Sections 3, 6.9, and 6.10 as follows:
 
6     (5 ILCS 375/3)  (from Ch. 127, par. 523)
7     Sec. 3. Definitions. Unless the context otherwise
8 requires, the following words and phrases as used in this Act
9 shall have the following meanings. The Department may define
10 these and other words and phrases separately for the purpose of
11 implementing specific programs providing benefits under this
12 Act.
13     (a) "Administrative service organization" means any
14 person, firm or corporation experienced in the handling of
15 claims which is fully qualified, financially sound and capable
16 of meeting the service requirements of a contract of
17 administration executed with the Department.
18     (b) "Annuitant" means (1) an employee who retires, or has
19 retired, on or after January 1, 1966 on an immediate annuity
20 under the provisions of Articles 2, 14 (including an employee
21 who has elected to receive an alternative retirement
22 cancellation payment under Section 14-108.5 of the Illinois
23 Pension Code in lieu of an annuity), 15 (including an employee
24 who has retired under the optional retirement program
25 established under Section 15-158.2), paragraphs (2), (3), or
26 (5) of Section 16-106, or Article 18 of the Illinois Pension
27 Code; (2) any person who was receiving group insurance coverage
28 under this Act as of March 31, 1978 by reason of his status as
29 an annuitant, even though the annuity in relation to which such
30 coverage was provided is a proportional annuity based on less
31 than the minimum period of service required for a retirement
32 annuity in the system involved; (3) any person not otherwise

 

 

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1 covered by this Act who has retired as a participating member
2 under Article 2 of the Illinois Pension Code but is ineligible
3 for the retirement annuity under Section 2-119 of the Illinois
4 Pension Code; (4) the spouse of any person who is receiving a
5 retirement annuity under Article 18 of the Illinois Pension
6 Code and who is covered under a group health insurance program
7 sponsored by a governmental employer other than the State of
8 Illinois and who has irrevocably elected to waive his or her
9 coverage under this Act and to have his or her spouse
10 considered as the "annuitant" under this Act and not as a
11 "dependent"; or (5) an employee who retires, or has retired,
12 from a qualified position, as determined according to rules
13 promulgated by the Director, under a qualified local government
14 or a qualified rehabilitation facility or a qualified domestic
15 violence shelter or service. (For definition of "retired
16 employee", see (p) post).
17     (b-5) "New SERS annuitant" means a person who, on or after
18 January 1, 1998, becomes an annuitant, as defined in subsection
19 (b), by virtue of beginning to receive a retirement annuity
20 under Article 14 of the Illinois Pension Code (including an
21 employee who has elected to receive an alternative retirement
22 cancellation payment under Section 14-108.5 of that Code in
23 lieu of an annuity), and is eligible to participate in the
24 basic program of group health benefits provided for annuitants
25 under this Act.
26     (b-6) "New SURS annuitant" means a person who (1) on or
27 after January 1, 1998, becomes an annuitant, as defined in
28 subsection (b), by virtue of beginning to receive a retirement
29 annuity under Article 15 of the Illinois Pension Code, (2) has
30 not made the election authorized under Section 15-135.1 of the
31 Illinois Pension Code, and (3) is eligible to participate in
32 the basic program of group health benefits provided for
33 annuitants under this Act.
34     (b-7) "New TRS State annuitant" means a person who, on or
35 after July 1, 1998, becomes an annuitant, as defined in
36 subsection (b), by virtue of beginning to receive a retirement

 

 

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1 annuity under Article 16 of the Illinois Pension Code based on
2 service as a teacher as defined in paragraph (2), (3), or (5)
3 of Section 16-106 of that Code, and is eligible to participate
4 in the basic program of group health benefits provided for
5 annuitants under this Act.
6     (c) "Carrier" means (1) an insurance company, a corporation
7 organized under the Limited Health Service Organization Act or
8 the Voluntary Health Services Plan Act, a partnership, or other
9 nongovernmental organization, which is authorized to do group
10 life or group health insurance business in Illinois, or (2) the
11 State of Illinois as a self-insurer.
12     (d) "Compensation" means salary or wages payable on a
13 regular payroll by the State Treasurer on a warrant of the
14 State Comptroller out of any State, trust or federal fund, or
15 by the Governor of the State through a disbursing officer of
16 the State out of a trust or out of federal funds, or by any
17 Department out of State, trust, federal or other funds held by
18 the State Treasurer or the Department, to any person for
19 personal services currently performed, and ordinary or
20 accidental disability benefits under Articles 2, 14, 15
21 (including ordinary or accidental disability benefits under
22 the optional retirement program established under Section
23 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
24 Article 18 of the Illinois Pension Code, for disability
25 incurred after January 1, 1966, or benefits payable under the
26 Workers' Compensation or Occupational Diseases Act or benefits
27 payable under a sick pay plan established in accordance with
28 Section 36 of the State Finance Act. "Compensation" also means
29 salary or wages paid to an employee of any qualified local
30 government or qualified rehabilitation facility or a qualified
31 domestic violence shelter or service.
32     (e) "Commission" means the State Employees Group Insurance
33 Advisory Commission authorized by this Act. Commencing July 1,
34 1984, "Commission" as used in this Act means the Commission on
35 Government Forecasting and Accountability as established by
36 the Legislative Commission Reorganization Act of 1984.

 

 

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1     (f) "Contributory", when referred to as contributory
2 coverage, shall mean optional coverages or benefits elected by
3 the member toward the cost of which such member makes
4 contribution, or which are funded in whole or in part through
5 the acceptance of a reduction in earnings or the foregoing of
6 an increase in earnings by an employee, as distinguished from
7 noncontributory coverage or benefits which are paid entirely by
8 the State of Illinois without reduction of the member's salary.
9     (g) "Department" means any department, institution, board,
10 commission, officer, court or any agency of the State
11 government receiving appropriations and having power to
12 certify payrolls to the Comptroller authorizing payments of
13 salary and wages against such appropriations as are made by the
14 General Assembly from any State fund, or against trust funds
15 held by the State Treasurer and includes boards of trustees of
16 the retirement systems created by Articles 2, 14, 15, 16 and 18
17 of the Illinois Pension Code. "Department" also includes the
18 Illinois Comprehensive Health Insurance Board, the Board of
19 Examiners established under the Illinois Public Accounting
20 Act, and the Illinois Finance Authority.
21     (h) "Dependent", when the term is used in the context of
22 the health and life plan, means a member's spouse and any
23 unmarried child (1) from birth to age 19 including an adopted
24 child, a child who lives with the member from the time of the
25 filing of a petition for adoption until entry of an order of
26 adoption, a stepchild or recognized child who lives with the
27 member in a parent-child relationship, or a child who lives
28 with the member if such member is a court appointed guardian of
29 the child, or (2) age 19 to 23 enrolled as a full-time student
30 in any accredited school, financially dependent upon the
31 member, and eligible to be claimed as a dependent for income
32 tax purposes, or (3) age 19 or over who is mentally or
33 physically handicapped. For the purposes of item (2), an
34 unmarried child age 19 to 23 who is a member of the United
35 States Armed Services, including the Illinois National Guard,
36 and is mobilized to active duty shall qualify as a dependent

 

 

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1 beyond the age of 23 and until the age of 25 and while a
2 full-time student for the amount of time spent on active duty
3 between the ages of 19 and 23. The individual attempting to
4 qualify for this additional time must submit written
5 documentation of active duty service to the Director. The
6 changes made by this amendatory Act of the 94th General
7 Assembly apply only to individuals mobilized to active duty in
8 the United States Armed Services, including the Illinois
9 National Guard, on or after January 1, 2002. For the health
10 plan only, the term "dependent" also includes any person
11 enrolled prior to the effective date of this Section who is
12 dependent upon the member to the extent that the member may
13 claim such person as a dependent for income tax deduction
14 purposes; no other such person may be enrolled. For the health
15 plan only, the term "dependent" also includes any person who
16 has received after June 30, 2000 an organ transplant and who is
17 financially dependent upon the member and eligible to be
18 claimed as a dependent for income tax purposes.
19     (i) "Director" means the Director of the Illinois
20 Department of Central Management Services.
21     (j) "Eligibility period" means the period of time a member
22 has to elect enrollment in programs or to select benefits
23 without regard to age, sex or health.
24     (k) "Employee" means and includes each officer or employee
25 in the service of a department who (1) receives his
26 compensation for service rendered to the department on a
27 warrant issued pursuant to a payroll certified by a department
28 or on a warrant or check issued and drawn by a department upon
29 a trust, federal or other fund or on a warrant issued pursuant
30 to a payroll certified by an elected or duly appointed officer
31 of the State or who receives payment of the performance of
32 personal services on a warrant issued pursuant to a payroll
33 certified by a Department and drawn by the Comptroller upon the
34 State Treasurer against appropriations made by the General
35 Assembly from any fund or against trust funds held by the State
36 Treasurer, and (2) is employed full-time or part-time in a

 

 

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1 position normally requiring actual performance of duty during
2 not less than 1/2 of a normal work period, as established by
3 the Director in cooperation with each department, except that
4 persons elected by popular vote will be considered employees
5 during the entire term for which they are elected regardless of
6 hours devoted to the service of the State, and (3) except that
7 "employee" does not include any person who is not eligible by
8 reason of such person's employment to participate in one of the
9 State retirement systems under Articles 2, 14, 15 (either the
10 regular Article 15 system or the optional retirement program
11 established under Section 15-158.2) or 18, or under paragraph
12 (2), (3), or (5) of Section 16-106, of the Illinois Pension
13 Code, but such term does include persons who are employed
14 during the 6 month qualifying period under Article 14 of the
15 Illinois Pension Code. Such term also includes any person who
16 (1) after January 1, 1966, is receiving ordinary or accidental
17 disability benefits under Articles 2, 14, 15 (including
18 ordinary or accidental disability benefits under the optional
19 retirement program established under Section 15-158.2),
20 paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
21 the Illinois Pension Code, for disability incurred after
22 January 1, 1966, (2) receives total permanent or total
23 temporary disability under the Workers' Compensation Act or
24 Occupational Disease Act as a result of injuries sustained or
25 illness contracted in the course of employment with the State
26 of Illinois, or (3) is not otherwise covered under this Act and
27 has retired as a participating member under Article 2 of the
28 Illinois Pension Code but is ineligible for the retirement
29 annuity under Section 2-119 of the Illinois Pension Code.
30 However, a person who satisfies the criteria of the foregoing
31 definition of "employee" except that such person is made
32 ineligible to participate in the State Universities Retirement
33 System by clause (4) of subsection (a) of Section 15-107 of the
34 Illinois Pension Code is also an "employee" for the purposes of
35 this Act. "Employee" also includes any person receiving or
36 eligible for benefits under a sick pay plan established in

 

 

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1 accordance with Section 36 of the State Finance Act. "Employee"
2 also includes each officer or employee in the service of a
3 qualified local government, including persons appointed as
4 trustees of sanitary districts regardless of hours devoted to
5 the service of the sanitary district, and each employee in the
6 service of a qualified rehabilitation facility and each
7 full-time employee in the service of a qualified domestic
8 violence shelter or service, as determined according to rules
9 promulgated by the Director.
10     (l) "Member" means an employee, annuitant, retired
11 employee or survivor.
12     (m) "Optional coverages or benefits" means those coverages
13 or benefits available to the member on his or her voluntary
14 election, and at his or her own expense.
15     (n) "Program" means the group life insurance, health
16 benefits and other employee benefits designed and contracted
17 for by the Director under this Act.
18     (o) "Health plan" means a health benefits program offered
19 by the State of Illinois for persons eligible for the plan.
20     (p) "Retired employee" means any person who would be an
21 annuitant as that term is defined herein but for the fact that
22 such person retired prior to January 1, 1966. Such term also
23 includes any person formerly employed by the University of
24 Illinois in the Cooperative Extension Service who would be an
25 annuitant but for the fact that such person was made ineligible
26 to participate in the State Universities Retirement System by
27 clause (4) of subsection (a) of Section 15-107 of the Illinois
28 Pension Code.
29     (q) "Survivor" means a person receiving an annuity as a
30 survivor of an employee or of an annuitant. "Survivor" also
31 includes: (1) the surviving dependent of a person who satisfies
32 the definition of "employee" except that such person is made
33 ineligible to participate in the State Universities Retirement
34 System by clause (4) of subsection (a) of Section 15-107 of the
35 Illinois Pension Code; (2) the surviving dependent of any
36 person formerly employed by the University of Illinois in the

 

 

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1 Cooperative Extension Service who would be an annuitant except
2 for the fact that such person was made ineligible to
3 participate in the State Universities Retirement System by
4 clause (4) of subsection (a) of Section 15-107 of the Illinois
5 Pension Code; and (3) the surviving dependent of a person who
6 was an annuitant under this Act by virtue of receiving an
7 alternative retirement cancellation payment under Section
8 14-108.5 of the Illinois Pension Code.
9     (q-2) "SERS" means the State Employees' Retirement System
10 of Illinois, created under Article 14 of the Illinois Pension
11 Code.
12     (q-3) "SURS" means the State Universities Retirement
13 System, created under Article 15 of the Illinois Pension Code.
14     (q-4) "TRS" means the Teachers' Retirement System of the
15 State of Illinois, created under Article 16 of the Illinois
16 Pension Code.
17     (q-5) "New SERS survivor" means a survivor, as defined in
18 subsection (q), whose annuity is paid under Article 14 of the
19 Illinois Pension Code and is based on the death of (i) an
20 employee whose death occurs on or after January 1, 1998, or
21 (ii) a new SERS annuitant as defined in subsection (b-5). "New
22 SERS survivor" includes the surviving dependent of a person who
23 was an annuitant under this Act by virtue of receiving an
24 alternative retirement cancellation payment under Section
25 14-108.5 of the Illinois Pension Code.
26     (q-6) "New SURS survivor" means a survivor, as defined in
27 subsection (q), whose annuity is paid under Article 15 of the
28 Illinois Pension Code and is based on the death of (i) an
29 employee whose death occurs on or after January 1, 1998, or
30 (ii) a new SURS annuitant as defined in subsection (b-6).
31     (q-7) "New TRS State survivor" means a survivor, as defined
32 in subsection (q), whose annuity is paid under Article 16 of
33 the Illinois Pension Code and is based on the death of (i) an
34 employee who is a teacher as defined in paragraph (2), (3), or
35 (5) of Section 16-106 of that Code and whose death occurs on or
36 after July 1, 1998, or (ii) a new TRS State annuitant as

 

 

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1 defined in subsection (b-7).
2     (r) "Medical services" means the services provided within
3 the scope of their licenses by practitioners in all categories
4 licensed under the Medical Practice Act of 1987.
5     (s) "Unit of local government" means any county,
6 municipality, township, school district (including a
7 combination of school districts under the Intergovernmental
8 Cooperation Act), special district or other unit, designated as
9 a unit of local government by law, which exercises limited
10 governmental powers or powers in respect to limited
11 governmental subjects, any not-for-profit association with a
12 membership that primarily includes townships and township
13 officials, that has duties that include provision of research
14 service, dissemination of information, and other acts for the
15 purpose of improving township government, and that is funded
16 wholly or partly in accordance with Section 85-15 of the
17 Township Code; any not-for-profit corporation or association,
18 with a membership consisting primarily of municipalities, that
19 operates its own utility system, and provides research,
20 training, dissemination of information, or other acts to
21 promote cooperation between and among municipalities that
22 provide utility services and for the advancement of the goals
23 and purposes of its membership; the Southern Illinois
24 Collegiate Common Market, which is a consortium of higher
25 education institutions in Southern Illinois; the Illinois
26 Association of Park Districts; and any hospital provider that
27 is owned by a county that has 100 or fewer hospital beds and
28 has not already joined the program. "Qualified local
29 government" means a unit of local government approved by the
30 Director and participating in a program created under
31 subsection (i) of Section 10 of this Act.
32     (t) "Qualified rehabilitation facility" means any
33 not-for-profit organization that is accredited by the
34 Commission on Accreditation of Rehabilitation Facilities or
35 certified by the Department of Human Services (as successor to
36 the Department of Mental Health and Developmental

 

 

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1 Disabilities) to provide services to persons with disabilities
2 and which receives funds from the State of Illinois for
3 providing those services, approved by the Director and
4 participating in a program created under subsection (j) of
5 Section 10 of this Act.
6     (u) "Qualified domestic violence shelter or service" means
7 any Illinois domestic violence shelter or service and its
8 administrative offices funded by the Department of Human
9 Services (as successor to the Illinois Department of Public
10 Aid), approved by the Director and participating in a program
11 created under subsection (k) of Section 10.
12     (v) "TRS benefit recipient" means a person who:
13         (1) is not a "member" as defined in this Section; and
14         (2) is receiving a monthly benefit or retirement
15     annuity under Article 16 of the Illinois Pension Code; 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.
27     (w) "TRS dependent beneficiary" means a person who:
28         (1) is not a "member" or "dependent" as defined in this
29     Section; and
30         (2) is a TRS benefit recipient's: (A) spouse, (B)
31     dependent parent who is receiving at least half of his or
32     her support from the TRS benefit recipient, or (C)
33     unmarried natural or adopted child who is (i) under age 19,
34     or (ii) enrolled as a full-time student in an accredited
35     school, financially dependent upon the TRS benefit
36     recipient, eligible to be claimed as a dependent for income

 

 

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1     tax purposes, and either is under age 24 or was, on January
2     1, 1996, participating as a dependent beneficiary in the
3     health insurance program offered under Article 16 of the
4     Illinois Pension Code, or (iii) age 19 or over who is
5     mentally or physically handicapped.
6     (x) "Military leave with pay and benefits" refers to
7 individuals in basic training for reserves, special/advanced
8 training, annual training, emergency call up, or activation by
9 the President of the United States with approved pay and
10 benefits.
11     (y) "Military leave without pay and benefits" refers to
12 individuals who enlist for active duty in a regular component
13 of the U.S. Armed Forces or other duty not specified or
14 authorized under military leave with pay and benefits.
15     (z) "Community college benefit recipient" means a person
16 who:
17         (1) is not a "member" as defined in this Section; and
18         (2) is receiving a monthly survivor's annuity or
19     retirement annuity under Article 15 of the Illinois Pension
20     Code; and
21         (3) either (i) was a full-time employee of a community
22     college district or an association of community college
23     boards created under the Public Community College Act
24     (other than an employee whose last employer under Article
25     15 of the Illinois Pension Code was a community college
26     district subject to Article VII of the Public Community
27     College Act) and was eligible to participate in a group
28     health benefit plan as an employee during the time of
29     employment with a community college district (other than a
30     community college district subject to Article VII of the
31     Public Community College Act) or an association of
32     community college boards, or (ii) is the survivor of a
33     person described in item (i).
34     (aa) "Community college dependent beneficiary" means a
35 person who:
36         (1) is not a "member" or "dependent" as defined in this

 

 

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1     Section; and
2         (2) is a community college benefit recipient's: (A)
3     spouse, (B) dependent parent who is receiving at least half
4     of his or her support from the community college benefit
5     recipient, or (C) unmarried natural or adopted child who is
6     (i) under age 19, or (ii) enrolled as a full-time student
7     in an accredited school, financially dependent upon the
8     community college benefit recipient, eligible to be
9     claimed as a dependent for income tax purposes and under
10     age 23, or (iii) age 19 or over and mentally or physically
11     handicapped.
12 (Source: P.A. 93-205, eff. 1-1-04; 93-839, eff. 7-30-04;
13 93-1067, eff. 1-15-05; 94-32, eff. 6-15-05; 94-82, eff. 1-1-06;
14 revised 8-9-05.)
 
15     (5 ILCS 375/6.9)
16     Sec. 6.9. Health benefits for community college benefit
17 recipients and community college dependent beneficiaries.
18     (a) Purpose. It is the purpose of this amendatory Act of
19 1997 to establish a uniform program of health benefits for
20 community college benefit recipients and their dependent
21 beneficiaries under the administration of the Department of
22 Central Management Services.
23     (b) Creation of program. Beginning July 1, 1999, the
24 Department of Central Management Services shall be responsible
25 for administering a program of health benefits for community
26 college benefit recipients and community college dependent
27 beneficiaries under this Section. The State Universities
28 Retirement System and the boards of trustees of the various
29 community college districts shall cooperate with the
30 Department in this endeavor.
31     (c) Eligibility. All community college benefit recipients
32 and community college dependent beneficiaries shall be
33 eligible to participate in the program established under this
34 Section, without any interruption or delay in coverage or
35 limitation as to pre-existing medical conditions. Eligibility

 

 

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1 to participate shall be determined by the State Universities
2 Retirement System. Eligibility information shall be
3 communicated to the Department of Central Management Services
4 in a format acceptable to the Department.
5     (d) Coverage. The health benefit coverage provided under
6 this Section shall be a program of health, dental, and vision
7 benefits.
8     The program of health benefits under this Section may
9 include any or all of the benefit limitations, including but
10 not limited to a reduction in benefits based on eligibility for
11 federal medicare benefits, that are provided under subsection
12 (a) of Section 6 of this Act for other health benefit programs
13 under this Act.
14     (e) Insurance rates and premiums. The Director shall
15 determine the insurance rates and premiums for community
16 college benefit recipients and community college dependent
17 beneficiaries. Rates and premiums may be based in part on age
18 and eligibility for federal Medicare coverage. The Director
19 shall also determine premiums that will allow for the
20 establishment of an actuarially sound reserve for this program.
21     The cost of health benefits under the program shall be paid
22 as follows:
23         (1) For a community college benefit recipient, up to
24     75% of the total insurance rate shall be paid from the
25     Community College Health Insurance Security Fund.
26         (2) The balance of the rate of insurance, including the
27     entire premium for any coverage for community college
28     dependent beneficiaries that has been elected, shall be
29     paid by deductions authorized by the community college
30     benefit recipient to be withheld from his or her monthly
31     annuity or benefit payment from the State Universities
32     Retirement System; except that (i) if the balance of the
33     cost of coverage exceeds the amount of the monthly annuity
34     or benefit payment, the difference shall be paid directly
35     to the State Universities Retirement System by the
36     community college benefit recipient, and (ii) all or part

 

 

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1     of the balance of the cost of coverage may, at the option
2     of the board of trustees of the community college district,
3     be paid to the State Universities Retirement System by the
4     board of the community college district from which the
5     community college benefit recipient retired. The State
6     Universities Retirement System shall promptly deposit all
7     moneys withheld by or paid to it under this subdivision
8     (e)(2) into the Community College Health Insurance
9     Security Fund. These moneys shall not be considered assets
10     of the State Universities Retirement System.
11     (f) Financing. All revenues arising from the
12 administration of the health benefit program established under
13 this Section shall be deposited into the Community College
14 Health Insurance Security Fund, which is hereby created as a
15 nonappropriated trust fund to be held outside the State
16 Treasury, with the State Treasurer as custodian. Any interest
17 earned on moneys in the Community College Health Insurance
18 Security Fund shall be deposited into the Fund.
19     Moneys in the Community College Health Insurance Security
20 Fund shall be used only to pay the costs of the health benefit
21 program established under this Section, including associated
22 administrative costs and the establishment of a program
23 reserve. Beginning January 1, 1999, the Department of Central
24 Management Services may make expenditures from the Community
25 College Health Insurance Security Fund for those costs.
26     (g) Contract for benefits. The Director shall by contract,
27 self-insurance, or otherwise make available the program of
28 health benefits for community college benefit recipients and
29 their community college dependent beneficiaries that is
30 provided for in this Section. The contract or other arrangement
31 for the provision of these health benefits shall be on terms
32 deemed by the Director to be in the best interest of the State
33 of Illinois and the community college benefit recipients based
34 on, but not limited to, such criteria as administrative cost,
35 service capabilities of the carrier or other contractor, and
36 the costs of the benefits.

 

 

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1     (h) Continuation of program. It is the intention of the
2 General Assembly that the program of health benefits provided
3 under this Section be maintained on an ongoing, affordable
4 basis. The program of health benefits provided under this
5 Section may be amended by the State and is not intended to be a
6 pension or retirement benefit subject to protection under
7 Article XIII, Section 5 of the Illinois Constitution.
8     (i) Other health benefit plans. A health benefit plan
9 provided by a community college district (other than a
10 community college district subject to Article VII of the Public
11 Community College Act) under the terms of a collective
12 bargaining agreement in effect on or prior to the effective
13 date of this amendatory Act of 1997 (or January 1, 2007 with
14 respect to a community college district subject to Article VII
15 of the Public Community College Act) shall continue in force
16 according to the terms of that agreement, unless otherwise
17 mutually agreed by the parties to that agreement and the
18 affected retiree. A community college benefit recipient or
19 community college dependent beneficiary whose coverage under
20 such a plan expires shall be eligible to begin participating in
21 the program established under this Section without any
22 interruption or delay in coverage or limitation as to
23 pre-existing medical conditions.
24     This Act does not prohibit any community college district
25 from offering additional health benefits for its retirees or
26 their dependents or survivors.
27 (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
 
28     (5 ILCS 375/6.10)
29     Sec. 6.10. Contributions to the Community College Health
30 Insurance Security Fund.
31     (a) Beginning January 1, 1999, (or January 1, 2007 with
32 respect to a community college district subject to Article VII
33 of the Public Community College Act), every active contributor
34 of the State Universities Retirement System (established under
35 Article 15 of the Illinois Pension Code) who (1) is a full-time

 

 

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1 employee of a community college district (other than a
2 community college district subject to Article VII of the Public
3 Community College Act) or an association of community college
4 boards and (2) is not an employee as defined in Section 3 of
5 this Act shall make contributions toward the cost of community
6 college annuitant and survivor health benefits at the rate of
7 0.50% of salary.
8     These contributions shall be deducted by the employer and
9 paid to the State Universities Retirement System as service
10 agent for the Department of Central Management Services. The
11 System may use the same processes for collecting the
12 contributions required by this subsection that it uses to
13 collect the contributions received from those employees under
14 Section 15-157 of the Illinois Pension Code. An employer may
15 agree to pick up or pay the contributions required under this
16 subsection on behalf of the employee; such contributions shall
17 be deemed to have been paid by the employee.
18     The State Universities Retirement System shall promptly
19 deposit all moneys collected under this subsection (a) into the
20 Community College Health Insurance Security Fund created in
21 Section 6.9 of this Act. The moneys collected under this
22 Section shall be used only for the purposes authorized in
23 Section 6.9 of this Act and shall not be considered to be
24 assets of the State Universities Retirement System.
25 Contributions made under this Section are not transferable to
26 other pension funds or retirement systems and are not
27 refundable upon termination of service.
28     (b) Beginning January 1, 1999, (or January 1, 2007 with
29 respect to a community college district subject to Article VII
30 of the Public Community College Act), every community college
31 district (other than a community college district subject to
32 Article VII of the Public Community College Act) or association
33 of community college boards that is an employer under the State
34 Universities Retirement System shall contribute toward the
35 cost of the community college health benefits provided under
36 Section 6.9 of this Act an amount equal to 0.50% of the salary

 

 

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1 paid to its full-time employees who participate in the State
2 Universities Retirement System and are not members as defined
3 in Section 3 of this Act.
4     These contributions shall be paid by the employer to the
5 State Universities Retirement System as service agent for the
6 Department of Central Management Services. The System may use
7 the same processes for collecting the contributions required by
8 this subsection that it uses to collect the contributions
9 received from those employers under Section 15-155 of the
10 Illinois Pension Code.
11     The State Universities Retirement System shall promptly
12 deposit all moneys collected under this subsection (b) into the
13 Community College Health Insurance Security Fund created in
14 Section 6.9 of this Act. The moneys collected under this
15 Section shall be used only for the purposes authorized in
16 Section 6.9 of this Act and shall not be considered to be
17 assets of the State Universities Retirement System.
18 Contributions made under this Section are not transferable to
19 other pension funds or retirement systems and are not
20 refundable upon termination of service.
21     (c) On or before November 15 of each year, the Board of
22 Trustees of the State Universities Retirement System shall
23 certify to the Governor, the Director of Central Management
24 Services, and the State Comptroller its estimate of the total
25 amount of contributions to be paid under subsection (a) of this
26 Section for the next fiscal year. The certification shall
27 include a detailed explanation of the methods and information
28 that the Board relied upon in preparing its estimate. As soon
29 as possible after the effective date of this Section, the Board
30 shall submit its estimate for fiscal year 1999.
31     (d) Beginning in fiscal year 1999, on the first day of each
32 month, or as soon thereafter as may be practical, the State
33 Treasurer and the State Comptroller shall transfer from the
34 General Revenue Fund to the Community College Health Insurance
35 Security Fund 1/12 of the annual amount appropriated for that
36 fiscal year to the State Comptroller for deposit into the

 

 

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1 Community College Health Insurance Security Fund under Section
2 1.4 of the State Pension Funds Continuing Appropriation Act.
3     (e) Except where otherwise specified in this Section, the
4 definitions that apply to Article 15 of the Illinois Pension
5 Code apply to this Section.
6 (Source: P.A. 90-497, eff. 8-18-97; 91-887, eff. 7-6-00.)