Rep. Roger L. Eddy

Filed: 5/31/2011

 

 


 

 


 
09700SB1967ham005LRB097 05368 JDS 56682 a

1
AMENDMENT TO SENATE BILL 1967

2    AMENDMENT NO. ______. Amend Senate Bill 1967, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The State Employees Group Insurance Act of 1971
6is amended by changing Section 3, 6.9, and 6.10 as follows:
 
7    (5 ILCS 375/3)  (from Ch. 127, par. 523)
8    Sec. 3. Definitions. Unless the context otherwise
9requires, the following words and phrases as used in this Act
10shall have the following meanings. The Department may define
11these and other words and phrases separately for the purpose of
12implementing specific programs providing benefits under this
13Act.
14    (a) "Administrative service organization" means any
15person, firm or corporation experienced in the handling of
16claims which is fully qualified, financially sound and capable

 

 

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1of meeting the service requirements of a contract of
2administration executed with the Department.
3    (b) "Annuitant" means (1) an employee who retires, or has
4retired, on or after January 1, 1966 on an immediate annuity
5under the provisions of Articles 2, 14 (including an employee
6who has elected to receive an alternative retirement
7cancellation payment under Section 14-108.5 of the Illinois
8Pension Code in lieu of an annuity), 15 (including an employee
9who has retired under the optional retirement program
10established under Section 15-158.2), paragraphs (2), (3), or
11(5) of Section 16-106, or Article 18 of the Illinois Pension
12Code; (2) any person who was receiving group insurance coverage
13under this Act as of March 31, 1978 by reason of his status as
14an annuitant, even though the annuity in relation to which such
15coverage was provided is a proportional annuity based on less
16than the minimum period of service required for a retirement
17annuity in the system involved; (3) any person not otherwise
18covered by this Act who has retired as a participating member
19under Article 2 of the Illinois Pension Code but is ineligible
20for the retirement annuity under Section 2-119 of the Illinois
21Pension Code; (4) the spouse of any person who is receiving a
22retirement annuity under Article 18 of the Illinois Pension
23Code and who is covered under a group health insurance program
24sponsored by a governmental employer other than the State of
25Illinois and who has irrevocably elected to waive his or her
26coverage under this Act and to have his or her spouse

 

 

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1considered as the "annuitant" under this Act and not as a
2"dependent"; or (5) an employee who retires, or has retired,
3from a qualified position, as determined according to rules
4promulgated by the Director, under a qualified local
5government, a qualified rehabilitation facility, a qualified
6domestic violence shelter or service, or a qualified child
7advocacy center. (For definition of "retired employee", see (p)
8post).
9    (b-5) "New SERS annuitant" means a person who, on or after
10January 1, 1998, becomes an annuitant, as defined in subsection
11(b), by virtue of beginning to receive a retirement annuity
12under Article 14 of the Illinois Pension Code (including an
13employee who has elected to receive an alternative retirement
14cancellation payment under Section 14-108.5 of that Code in
15lieu of an annuity), and is eligible to participate in the
16basic program of group health benefits provided for annuitants
17under this Act.
18    (b-6) "New SURS annuitant" means a person who (1) on or
19after January 1, 1998, becomes an annuitant, as defined in
20subsection (b), by virtue of beginning to receive a retirement
21annuity under Article 15 of the Illinois Pension Code, (2) has
22not made the election authorized under Section 15-135.1 of the
23Illinois Pension Code, and (3) is eligible to participate in
24the basic program of group health benefits provided for
25annuitants under this Act.
26    (b-7) "New TRS State annuitant" means a person who, on or

 

 

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1after July 1, 1998, becomes an annuitant, as defined in
2subsection (b), by virtue of beginning to receive a retirement
3annuity under Article 16 of the Illinois Pension Code based on
4service as a teacher as defined in paragraph (2), (3), or (5)
5of Section 16-106 of that Code, and is eligible to participate
6in the basic program of group health benefits provided for
7annuitants under this Act.
8    (c) "Carrier" means (1) an insurance company, a corporation
9organized under the Limited Health Service Organization Act or
10the Voluntary Health Services Plan Act, a partnership, or other
11nongovernmental organization, which is authorized to do group
12life or group health insurance business in Illinois, or (2) the
13State of Illinois as a self-insurer.
14    (d) "Compensation" means salary or wages payable on a
15regular payroll by the State Treasurer on a warrant of the
16State Comptroller out of any State, trust or federal fund, or
17by the Governor of the State through a disbursing officer of
18the State out of a trust or out of federal funds, or by any
19Department out of State, trust, federal or other funds held by
20the State Treasurer or the Department, to any person for
21personal services currently performed, and ordinary or
22accidental disability benefits under Articles 2, 14, 15
23(including ordinary or accidental disability benefits under
24the optional retirement program established under Section
2515-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
26Article 18 of the Illinois Pension Code, for disability

 

 

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1incurred after January 1, 1966, or benefits payable under the
2Workers' Compensation or Occupational Diseases Act or benefits
3payable under a sick pay plan established in accordance with
4Section 36 of the State Finance Act. "Compensation" also means
5salary or wages paid to an employee of any qualified local
6government, qualified rehabilitation facility, qualified
7domestic violence shelter or service, or qualified child
8advocacy center.
9    (e) "Commission" means the State Employees Group Insurance
10Advisory Commission authorized by this Act. Commencing July 1,
111984, "Commission" as used in this Act means the Commission on
12Government Forecasting and Accountability as established by
13the Legislative Commission Reorganization Act of 1984.
14    (f) "Contributory", when referred to as contributory
15coverage, shall mean optional coverages or benefits elected by
16the member toward the cost of which such member makes
17contribution, or which are funded in whole or in part through
18the acceptance of a reduction in earnings or the foregoing of
19an increase in earnings by an employee, as distinguished from
20noncontributory coverage or benefits which are paid entirely by
21the State of Illinois without reduction of the member's salary.
22    (g) "Department" means any department, institution, board,
23commission, officer, court or any agency of the State
24government receiving appropriations and having power to
25certify payrolls to the Comptroller authorizing payments of
26salary and wages against such appropriations as are made by the

 

 

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1General Assembly from any State fund, or against trust funds
2held by the State Treasurer and includes boards of trustees of
3the retirement systems created by Articles 2, 14, 15, 16 and 18
4of the Illinois Pension Code. "Department" also includes the
5Illinois Comprehensive Health Insurance Board, the Board of
6Examiners established under the Illinois Public Accounting
7Act, and the Illinois Finance Authority.
8    (h) "Dependent", when the term is used in the context of
9the health and life plan, means a member's spouse and any child
10(1) from birth to age 26 including an adopted child, a child
11who lives with the member from the time of the filing of a
12petition for adoption until entry of an order of adoption, a
13stepchild or adjudicated child, or a child who lives with the
14member if such member is a court appointed guardian of the
15child or (2) age 19 or over who is mentally or physically
16disabled from a cause originating prior to the age of 19 (age
1726 if enrolled as an adult child dependent). For the health
18plan only, the term "dependent" also includes (1) any person
19enrolled prior to the effective date of this Section who is
20dependent upon the member to the extent that the member may
21claim such person as a dependent for income tax deduction
22purposes and (2) any person who has received after June 30,
232000 an organ transplant and who is financially dependent upon
24the member and eligible to be claimed as a dependent for income
25tax purposes. A member requesting to cover any dependent must
26provide documentation as requested by the Department of Central

 

 

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1Management Services and file with the Department any and all
2forms required by the Department.
3    (i) "Director" means the Director of the Illinois
4Department of Central Management Services or of any successor
5agency designated to administer this Act.
6    (j) "Eligibility period" means the period of time a member
7has to elect enrollment in programs or to select benefits
8without regard to age, sex or health.
9    (k) "Employee" means and includes each officer or employee
10in the service of a department who (1) receives his
11compensation for service rendered to the department on a
12warrant issued pursuant to a payroll certified by a department
13or on a warrant or check issued and drawn by a department upon
14a trust, federal or other fund or on a warrant issued pursuant
15to a payroll certified by an elected or duly appointed officer
16of the State or who receives payment of the performance of
17personal services on a warrant issued pursuant to a payroll
18certified by a Department and drawn by the Comptroller upon the
19State Treasurer against appropriations made by the General
20Assembly from any fund or against trust funds held by the State
21Treasurer, and (2) is employed full-time or part-time in a
22position normally requiring actual performance of duty during
23not less than 1/2 of a normal work period, as established by
24the Director in cooperation with each department, except that
25persons elected by popular vote will be considered employees
26during the entire term for which they are elected regardless of

 

 

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1hours devoted to the service of the State, and (3) except that
2"employee" does not include any person who is not eligible by
3reason of such person's employment to participate in one of the
4State retirement systems under Articles 2, 14, 15 (either the
5regular Article 15 system or the optional retirement program
6established under Section 15-158.2) or 18, or under paragraph
7(2), (3), or (5) of Section 16-106, of the Illinois Pension
8Code, but such term does include persons who are employed
9during the 6 month qualifying period under Article 14 of the
10Illinois Pension Code. Such term also includes any person who
11(1) after January 1, 1966, is receiving ordinary or accidental
12disability benefits under Articles 2, 14, 15 (including
13ordinary or accidental disability benefits under the optional
14retirement program established under Section 15-158.2),
15paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
16the Illinois Pension Code, for disability incurred after
17January 1, 1966, (2) receives total permanent or total
18temporary disability under the Workers' Compensation Act or
19Occupational Disease Act as a result of injuries sustained or
20illness contracted in the course of employment with the State
21of Illinois, or (3) is not otherwise covered under this Act and
22has retired as a participating member under Article 2 of the
23Illinois Pension Code but is ineligible for the retirement
24annuity under Section 2-119 of the Illinois Pension Code.
25However, a person who satisfies the criteria of the foregoing
26definition of "employee" except that such person is made

 

 

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1ineligible to participate in the State Universities Retirement
2System by clause (4) of subsection (a) of Section 15-107 of the
3Illinois Pension Code is also an "employee" for the purposes of
4this Act. "Employee" also includes any person receiving or
5eligible for benefits under a sick pay plan established in
6accordance with Section 36 of the State Finance Act. "Employee"
7also includes (i) each officer or employee in the service of a
8qualified local government, including persons appointed as
9trustees of sanitary districts regardless of hours devoted to
10the service of the sanitary district, (ii) each employee in the
11service of a qualified rehabilitation facility, (iii) each
12full-time employee in the service of a qualified domestic
13violence shelter or service, and (iv) each full-time employee
14in the service of a qualified child advocacy center, as
15determined according to rules promulgated by the Director.
16    (l) "Member" means an employee, annuitant, retired
17employee or survivor.
18    (m) "Optional coverages or benefits" means those coverages
19or benefits available to the member on his or her voluntary
20election, and at his or her own expense.
21    (n) "Program" means the group life insurance, health
22benefits and other employee benefits designed and contracted
23for by the Director under this Act.
24    (o) "Health plan" means a health benefits program offered
25by the State of Illinois for persons eligible for the plan.
26    (p) "Retired employee" means any person who would be an

 

 

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1annuitant as that term is defined herein but for the fact that
2such person retired prior to January 1, 1966. Such term also
3includes any person formerly employed by the University of
4Illinois in the Cooperative Extension Service who would be an
5annuitant but for the fact that such person was made ineligible
6to participate in the State Universities Retirement System by
7clause (4) of subsection (a) of Section 15-107 of the Illinois
8Pension Code.
9    (q) "Survivor" means a person receiving an annuity as a
10survivor of an employee or of an annuitant. "Survivor" also
11includes: (1) the surviving dependent of a person who satisfies
12the definition 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; (2) the surviving dependent of any
16person formerly employed by the University of Illinois in the
17Cooperative Extension Service who would be an annuitant except
18for the fact that such person was made ineligible to
19participate in the State Universities Retirement System by
20clause (4) of subsection (a) of Section 15-107 of the Illinois
21Pension Code; and (3) the surviving dependent of a person who
22was an annuitant under this Act by virtue of receiving an
23alternative retirement cancellation payment under Section
2414-108.5 of the Illinois Pension Code.
25    (q-2) "SERS" means the State Employees' Retirement System
26of Illinois, created under Article 14 of the Illinois Pension

 

 

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1Code.
2    (q-3) "SURS" means the State Universities Retirement
3System, created under Article 15 of the Illinois Pension Code.
4    (q-4) "TRS" means the Teachers' Retirement System of the
5State of Illinois, created under Article 16 of the Illinois
6Pension Code.
7    (q-5) "New SERS survivor" means a survivor, as defined in
8subsection (q), whose annuity is paid under Article 14 of the
9Illinois Pension Code and is based on the death of (i) an
10employee whose death occurs on or after January 1, 1998, or
11(ii) a new SERS annuitant as defined in subsection (b-5). "New
12SERS survivor" includes the surviving dependent of a person who
13was an annuitant under this Act by virtue of receiving an
14alternative retirement cancellation payment under Section
1514-108.5 of the Illinois Pension Code.
16    (q-6) "New SURS survivor" means a survivor, as defined in
17subsection (q), whose annuity is paid under Article 15 of the
18Illinois Pension Code and is based on the death of (i) an
19employee whose death occurs on or after January 1, 1998, or
20(ii) a new SURS annuitant as defined in subsection (b-6).
21    (q-7) "New TRS State survivor" means a survivor, as defined
22in subsection (q), whose annuity is paid under Article 16 of
23the Illinois Pension Code and is based on the death of (i) an
24employee who is a teacher as defined in paragraph (2), (3), or
25(5) of Section 16-106 of that Code and whose death occurs on or
26after July 1, 1998, or (ii) a new TRS State annuitant as

 

 

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1defined in subsection (b-7).
2    (r) "Medical services" means the services provided within
3the scope of their licenses by practitioners in all categories
4licensed under the Medical Practice Act of 1987.
5    (s) "Unit of local government" means any county,
6municipality, township, school district (including a
7combination of school districts under the Intergovernmental
8Cooperation Act), special district or other unit, designated as
9a unit of local government by law, which exercises limited
10governmental powers or powers in respect to limited
11governmental subjects, any not-for-profit association with a
12membership that primarily includes townships and township
13officials, that has duties that include provision of research
14service, dissemination of information, and other acts for the
15purpose of improving township government, and that is funded
16wholly or partly in accordance with Section 85-15 of the
17Township Code; any not-for-profit corporation or association,
18with a membership consisting primarily of municipalities, that
19operates its own utility system, and provides research,
20training, dissemination of information, or other acts to
21promote cooperation between and among municipalities that
22provide utility services and for the advancement of the goals
23and purposes of its membership; the Southern Illinois
24Collegiate Common Market, which is a consortium of higher
25education institutions in Southern Illinois; the Illinois
26Association of Park Districts; and any hospital provider that

 

 

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1is owned by a county that has 100 or fewer hospital beds and
2has not already joined the program. "Qualified local
3government" means a unit of local government approved by the
4Director and participating in a program created under
5subsection (i) of Section 10 of this Act.
6    (t) "Qualified rehabilitation facility" means any
7not-for-profit organization that is accredited by the
8Commission on Accreditation of Rehabilitation Facilities or
9certified by the Department of Human Services (as successor to
10the Department of Mental Health and Developmental
11Disabilities) to provide services to persons with disabilities
12and which receives funds from the State of Illinois for
13providing those services, approved by the Director and
14participating in a program created under subsection (j) of
15Section 10 of this Act.
16    (u) "Qualified domestic violence shelter or service" means
17any Illinois domestic violence shelter or service and its
18administrative offices funded by the Department of Human
19Services (as successor to the Illinois Department of Public
20Aid), approved by the Director and participating in a program
21created under subsection (k) of Section 10.
22    (v) "TRS benefit recipient" means a person who:
23        (1) is not a "member" as defined in this Section; and
24        (2) is receiving a monthly benefit or retirement
25    annuity under Article 16 of the Illinois Pension Code; and
26        (3) either (i) has at least 8 years of creditable

 

 

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1    service under Article 16 of the Illinois Pension Code, or
2    (ii) was enrolled in the health insurance program offered
3    under that Article on January 1, 1996, or (iii) is the
4    survivor of a benefit recipient who had at least 8 years of
5    creditable service under Article 16 of the Illinois Pension
6    Code or was enrolled in the health insurance program
7    offered under that Article on the effective date of this
8    amendatory Act of 1995, or (iv) is a recipient or survivor
9    of a recipient of a disability benefit under Article 16 of
10    the Illinois Pension Code.
11    (w) "TRS dependent beneficiary" means a person who:
12        (1) is not a "member" or "dependent" as defined in this
13    Section; and
14        (2) is a TRS benefit recipient's: (A) spouse, (B)
15    dependent parent who is receiving at least half of his or
16    her support from the TRS benefit recipient, or (C) natural,
17    step, adjudicated, or adopted child who is (i) under age
18    26, (ii) was, on January 1, 1996, participating as a
19    dependent beneficiary in the health insurance program
20    offered under Article 16 of the Illinois Pension Code, or
21    (iii) age 19 or over who is mentally or physically disabled
22    from a cause originating prior to the age of 19 (age 26 if
23    enrolled as an adult child).
24    (x) "Military leave" refers to individuals in basic
25training for reserves, special/advanced training, annual
26training, emergency call up, activation by the President of the

 

 

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1United States, or any other training or duty in service to the
2United States Armed Forces.
3    (y) (Blank).
4    (z) "Community college benefit recipient" means a person
5who:
6        (1) is not a "member" as defined in this Section; and
7        (2) is receiving a monthly survivor's annuity or
8    retirement annuity under Article 15 of the Illinois Pension
9    Code; and
10        (3) either (i) was a full-time employee of a community
11    college district or an association of community college
12    boards created under the Public Community College Act
13    (other than, until July 1, 2012, an employee whose last
14    employer under Article 15 of the Illinois Pension Code was
15    a community college district subject to Article VII of the
16    Public Community College Act) and was eligible to
17    participate in a group health benefit plan as an employee
18    during the time of employment with a community college
19    district (other than, until July 1, 2012, a community
20    college district subject to Article VII of the Public
21    Community College Act) or an association of community
22    college boards, or (ii) is the survivor of a person
23    described in item (i).
24    "Community college benefit recipient" does not include:
25        (1) an individual who was a full-time employee of a
26    community college district subject to Article VII of the

 

 

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1    Public Community College Act and who, prior to the
2    effective date of this amendatory Act of the 97th General
3    Assembly, (i) opted not to participate in the health
4    benefits program provided by the community college
5    district subject to Article VII of the Public Community
6    College Act and (ii) is ineligible for benefits under the
7    federal Medicare health insurance program (Title XVIII of
8    the Social Security Act as added by P.L. 89-97, 89th
9    Congress); or
10        (2) an individual receiving a monthly survivor's
11    annuity under Article 15 of the Illinois Pension Code if
12    the individual upon whom the annuity is based was (i) last
13    employed by a community college subject to Article VII of
14    the Public Community College Act and (ii) was not enrolled
15    in the program established under Section 6.9 of this Act.
16    (aa) "Community college dependent beneficiary" means a
17person who:
18        (1) is not a "member" or "dependent" as defined in this
19    Section; and
20        (2) is a community college benefit recipient's: (A)
21    spouse, (B) dependent parent who is receiving at least half
22    of his or her support from the community college benefit
23    recipient, or (C) natural, step, adjudicated, or adopted
24    child who is (i) under age 26, or (ii) age 19 or over and
25    mentally or physically disabled from a cause originating
26    prior to the age of 19 (age 26 if enrolled as an adult

 

 

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1    child).
2    (bb) "Qualified child advocacy center" means any Illinois
3child advocacy center and its administrative offices funded by
4the Department of Children and Family Services, as defined by
5the Children's Advocacy Center Act (55 ILCS 80/), approved by
6the Director and participating in a program created under
7subsection (n) of Section 10.
8(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
996-756, eff. 1-1-10; 96-1519, eff. 2-4-11.)
 
10    (5 ILCS 375/6.9)
11    Sec. 6.9. Health benefits for community college benefit
12recipients and community college dependent beneficiaries.
13    (a) Purpose. It is the purpose of this amendatory Act of
141997 and this amendatory Act of the 97th General Assembly to
15establish a uniform program of health benefits for community
16college benefit recipients and their dependent beneficiaries
17under the administration of the Department of Central
18Management Services.
19    (b) Creation of program. Beginning July 1, 1999, the
20Department of Central Management Services shall be responsible
21for administering a program of health benefits for community
22college benefit recipients and community college dependent
23beneficiaries under this Section. The State Universities
24Retirement System and the boards of trustees of the various
25community college districts shall cooperate with the

 

 

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1Department in this endeavor. Beginning July 1, 2012, this
2program shall include health benefits for community college
3benefit recipients and community college dependent
4beneficiaries subject to Article VII of the Public Community
5College Act.
6    (c) Eligibility. All community college benefit recipients
7and community college dependent beneficiaries shall be
8eligible to participate in the program established under this
9Section, without any interruption or delay in coverage or
10limitation as to pre-existing medical conditions. Eligibility
11to participate shall be determined by the State Universities
12Retirement System. Eligibility information shall be
13communicated to the Department of Central Management Services
14in a format acceptable to the Department.
15    (d) Coverage. The health benefit coverage provided under
16this Section shall be a program of health, dental, and vision
17benefits.
18    The program of health benefits under this Section may
19include any or all of the benefit limitations, including but
20not limited to a reduction in benefits based on eligibility for
21federal medicare benefits, that are provided under subsection
22(a) of Section 6 of this Act for other health benefit programs
23under this Act.
24    (e) Insurance rates and premiums. The Director shall
25determine the insurance rates and premiums for community
26college benefit recipients and community college dependent

 

 

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1beneficiaries. Rates and premiums may be based in part on age
2and eligibility for federal Medicare coverage. The Director
3shall also determine premiums that will allow for the
4establishment of an actuarially sound reserve for this program.
5    The cost of health benefits under the program shall be paid
6as follows:
7        (1) For a community college benefit recipient, up to
8    75% of the total insurance rate shall be paid from the
9    Community College Health Insurance Security Fund.
10        (2) The balance of the rate of insurance, including the
11    entire premium for any coverage for community college
12    dependent beneficiaries that has been elected, shall be
13    paid by deductions authorized by the community college
14    benefit recipient to be withheld from his or her monthly
15    annuity or benefit payment from the State Universities
16    Retirement System; except that (i) if the balance of the
17    cost of coverage exceeds the amount of the monthly annuity
18    or benefit payment, the difference shall be paid directly
19    to the State Universities Retirement System by the
20    community college benefit recipient, and (ii) all or part
21    of the balance of the cost of coverage may, at the option
22    of the board of trustees of the community college district,
23    be paid to the State Universities Retirement System by the
24    board of the community college district from which the
25    community college benefit recipient retired. The State
26    Universities Retirement System shall promptly deposit all

 

 

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1    moneys withheld by or paid to it under this subdivision
2    (e)(2) into the Community College Health Insurance
3    Security Fund. These moneys shall not be considered assets
4    of the State Universities Retirement System.
5    (f) Financing. All revenues arising from the
6administration of the health benefit program established under
7this Section shall be deposited into the Community College
8Health Insurance Security Fund, which is hereby created as a
9nonappropriated trust fund to be held outside the State
10Treasury, with the State Treasurer as custodian. The Community
11College Health Insurance Security Fund is not subject to
12administrative charges or charge backs, including, but not
13limited to, those authorized under Section 8h of the State
14Finance Act. Any interest earned on moneys in the Community
15College Health Insurance Security Fund shall be deposited into
16the Fund.
17    Moneys in the Community College Health Insurance Security
18Fund shall be used only to pay the costs of the health benefit
19program established under this Section, including associated
20administrative costs and the establishment of a program
21reserve. Beginning January 1, 1999, the Department of Central
22Management Services may make expenditures from the Community
23College Health Insurance Security Fund for those costs.
24    (g) Contract for benefits. The Director shall by contract,
25self-insurance, or otherwise make available the program of
26health benefits for community college benefit recipients and

 

 

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1their community college dependent beneficiaries that is
2provided for in this Section. The contract or other arrangement
3for the provision of these health benefits shall be on terms
4deemed by the Director to be in the best interest of the State
5of Illinois and the community college benefit recipients based
6on, but not limited to, such criteria as administrative cost,
7service capabilities of the carrier or other contractor, and
8the costs of the benefits.
9    (h) Continuation of program. It is the intention of the
10General Assembly that the program of health benefits provided
11under this Section be maintained on an ongoing, affordable
12basis. The program of health benefits provided under this
13Section may be amended by the State and is not intended to be a
14pension or retirement benefit subject to protection under
15Article XIII, Section 5 of the Illinois Constitution.
16    (i) Other health benefit plans. A health benefit plan
17provided by a community college district (other than, until
18July 1, 2012, a community college district subject to Article
19VII of the Public Community College Act) under the terms of a
20collective bargaining agreement in effect on or prior to the
21effective date of this amendatory Act of 1997 shall continue in
22force according to the terms of that agreement, unless
23otherwise mutually agreed by the parties to that agreement and
24the affected retiree. A community college benefit recipient or
25community college dependent beneficiary whose coverage under
26such a plan expires shall be eligible to begin participating in

 

 

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1the program established under this Section without any
2interruption or delay in coverage or limitation as to
3pre-existing medical conditions.
4    This Act does not prohibit any community college district
5from offering additional health benefits for its retirees or
6their dependents or survivors.
7(Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
 
8    (5 ILCS 375/6.10)
9    Sec. 6.10. Contributions to the Community College Health
10Insurance Security Fund.
11    (a) Beginning January 1, 1999, every active contributor of
12the State Universities Retirement System (established under
13Article 15 of the Illinois Pension Code) who (1) is a full-time
14employee of a community college district (other than, until
15January 1, 2012, a community college district subject to
16Article VII of the Public Community College Act) or an
17association of community college boards and (2) is not an
18employee as defined in Section 3 of this Act shall make
19contributions toward the cost of community college annuitant
20and survivor health benefits at the rate of 0.50% of salary.
21Beginning July 1, 2011, the contribution rate under this
22subsection (a) shall be 0.82% of salary. Beginning July 1,
232012, the contribution rate under this subsection (a) shall be
240.97% of salary. Beginning July 1, 2013, the contribution rate
25under this subsection (a) shall be a percentage of salary

 

 

09700SB1967ham005- 23 -LRB097 05368 JDS 56682 a

1determined by the Department of Central Management Services, or
2its successor, by rule, which in each fiscal year shall not
3exceed 105% of the percentage of salary actually required to be
4contributed in the previous fiscal year. However, the required
5contribution rate determined by the Department or its successor
6under this subsection (a) shall equal the required contribution
7rate determined by the Department or its successor under
8subsection (b) of this Section.
9    These contributions shall be deducted by the employer and
10paid to the State Universities Retirement System as service
11agent for the Department of Central Management Services. The
12System may use the same processes for collecting the
13contributions required by this subsection that it uses to
14collect the contributions received from those employees under
15Section 15-157 of the Illinois Pension Code. An employer may
16agree to pick up or pay the contributions required under this
17subsection on behalf of the employee; such contributions shall
18be deemed to have been paid by the employee.
19    The State Universities Retirement System shall promptly
20deposit all moneys collected under this subsection (a) into the
21Community College Health Insurance Security Fund created in
22Section 6.9 of this Act. The moneys collected under this
23Section shall be used only for the purposes authorized in
24Section 6.9 of this Act and shall not be considered to be
25assets of the State Universities Retirement System.
26Contributions made under this Section are not transferable to

 

 

09700SB1967ham005- 24 -LRB097 05368 JDS 56682 a

1other pension funds or retirement systems and are not
2refundable upon termination of service.
3    (b) Beginning January 1, 1999, every community college
4district (other than, until January 1, 2012, a community
5college district subject to Article VII of the Public Community
6College Act) or association of community college boards that is
7an employer under the State Universities Retirement System
8shall contribute toward the cost of the community college
9health benefits provided under Section 6.9 of this Act an
10amount equal to 0.50% of the salary paid to its full-time
11employees who participate in the State Universities Retirement
12System and are not members as defined in Section 3 of this Act.
13Beginning July 1, 2011, the contribution rate under this
14subsection (b) shall be 0.82% of salary. Beginning July 1,
152012, the contribution rate under this subsection (b) shall be
160.97% of salary. Beginning July 1, 2013, the contribution rate
17under this subsection (b) shall be a percentage of salary
18determined by the Department of Central Management Services, or
19its successor, by rule, which in each fiscal year shall not
20exceed 105% of the percentage of salary actually required to be
21contributed in the previous fiscal year. However, the required
22contribution rate determined by the Department or its successor
23under this subsection (b) shall equal the required contribution
24rate determined by the Department or its successor under
25subsection (a) of this Section.
26    These contributions shall be paid by the employer to the

 

 

09700SB1967ham005- 25 -LRB097 05368 JDS 56682 a

1State Universities Retirement System as service agent for the
2Department of Central Management Services. The System may use
3the same processes for collecting the contributions required by
4this subsection that it uses to collect the contributions
5received from those employers under Section 15-155 of the
6Illinois Pension Code.
7    The State Universities Retirement System shall promptly
8deposit all moneys collected under this subsection (b) into the
9Community College Health Insurance Security Fund created in
10Section 6.9 of this Act. The moneys collected under this
11Section shall be used only for the purposes authorized in
12Section 6.9 of this Act and shall not be considered to be
13assets of the State Universities Retirement System.
14Contributions made under this Section are not transferable to
15other pension funds or retirement systems and are not
16refundable upon termination of service.
17    The Department of Healthcare and Family Services, or any
18successor agency designated to procure healthcare contracts
19pursuant to this Act, is authorized to establish funds,
20separate accounts provided by any bank or banks as defined by
21the Illinois Banking Act, or separate accounts provided by any
22savings and loan association or associations as defined by the
23Illinois Savings and Loan Act of 1985 to be held by the
24Director, outside the State treasury, for the purpose of
25receiving the transfer of moneys from the Community College
26Health Insurance Security Fund. The Department may promulgate

 

 

09700SB1967ham005- 26 -LRB097 05368 JDS 56682 a

1rules further defining the methodology for the transfers. Any
2interest earned by moneys in the funds or accounts shall inure
3to the Community College Health Insurance Security Fund. The
4transferred moneys, and interest accrued thereon, shall be used
5exclusively for transfers to administrative service
6organizations or their financial institutions for payments of
7claims to claimants and providers under the self-insurance
8health plan. The transferred moneys, and interest accrued
9thereon, shall not be used for any other purpose including, but
10not limited to, reimbursement of administration fees due the
11administrative service organization pursuant to its contract
12or contracts with the Department.
13    (b-5) On or before March 30, 2012, a community college
14district subject to Article VII of the Public Community College
15Act shall contribute an amount equal to $10 million toward the
16cost of the community college health benefits provided under
17Section 6.9 of this Act. One-half of this amount shall be
18contributed on or before September 1, 2011, and the balance of
19that amount shall be contributed on or before March 30, 2012.
20The contribution shall be in addition to any percentage of
21salary contribution paid pursuant to subsection (b) of Section
226.10 of this Act.
23    (b-10) On or before September 1, 2012, a community college
24district subject to Article VII of the Public Community College
25Act shall contribute an amount equal to 3 times the product
26resulting from multiplying (i) the difference between the

 

 

09700SB1967ham005- 27 -LRB097 05368 JDS 56682 a

1fiscal year 2013 per annuitant cost of the community college
2health benefits provided under Section 6.9 of this Act and the
3fiscal year 2013 per annuitant premium paid by the annuitant by
4(ii) the number of annuitants enrolled in the community college
5health benefits program under Section 6.9 of this Act who
6became annuitants on or before the effective date of this
7amendatory date of the 97th General Assembly and who, prior to
8that date, opted not to participate in the health benefits
9program provided by the community college district subject to
10Article VII of the Public Community College Act. The
11calculation of the contribution created under this subsection
12(b-10) shall be subject to review and approval by the
13Commission on Governmental Forecasting and Accountability.
14    (c) On or before November 15 of each year, the Board of
15Trustees of the State Universities Retirement System shall
16certify to the Governor, the Director of Central Management
17Services, and the State Comptroller its estimate of the total
18amount of contributions to be paid under subsection (a) of this
19Section for the next fiscal year. Beginning in fiscal year
202008, the amount certified shall be decreased or increased each
21year by the amount that the actual active employee
22contributions either fell short of or exceeded the estimate
23used by the Board in making the certification for the previous
24fiscal year. The State Universities Retirement System shall
25calculate the amount of actual active employee contributions in
26fiscal years 1999 through 2005. Based upon this calculation,

 

 

09700SB1967ham005- 28 -LRB097 05368 JDS 56682 a

1the fiscal year 2008 certification shall include an amount
2equal to the cumulative amount that the actual active employee
3contributions either fell short of or exceeded the estimate
4used by the Board in making the certification for those fiscal
5years. The certification shall include a detailed explanation
6of the methods and information that the Board relied upon in
7preparing its estimate. As soon as possible after the effective
8date of this Section, the Board shall submit its estimate for
9fiscal year 1999.
10    (d) Beginning in fiscal year 1999, on the first day of each
11month, or as soon thereafter as may be practical, the State
12Treasurer and the State Comptroller shall transfer from the
13General Revenue Fund to the Community College Health Insurance
14Security Fund 1/12 of the annual amount appropriated for that
15fiscal year to the State Comptroller for deposit into the
16Community College Health Insurance Security Fund under Section
171.4 of the State Pension Funds Continuing Appropriation Act.
18    (e) Except where otherwise specified in this Section, the
19definitions that apply to Article 15 of the Illinois Pension
20Code apply to this Section.
21(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
 
22    Section 90. The State Mandates Act is amended by adding
23Section 8.35 as follows:
 
24    (30 ILCS 805/8.35 new)

 

 

09700SB1967ham005- 29 -LRB097 05368 JDS 56682 a

1    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
2of this Act, no reimbursement by the State is required for the
3implementation of any mandate created by this amendatory Act of
4the 97th General Assembly.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".