SB2418 99TH GENERAL ASSEMBLY

LRB099 17087 EFG 41445 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2418

Introduced 2/9/2016, by Sen. Donne E. Trotter

SYNOPSIS AS INTRODUCED:

40 ILCS 5/17-142.1

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

Amends the Chicago Teacher Article of the Illinois Pension Code. Creates the Chicago Teachers' Pension Fund Health Insurance Task Force to study and consider the program of health insurance coverage for pensioners that is currently administered by the Fund. Includes specific subjects of inquiry, relating to the future administration of the insurance program. Specifies Task Force membership and excludes payment for service. Provides for clerical support from the Fund. Requires a report of its findings and recommendations and provides for its abolishment upon conclusion of its business. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 17-142.1 as follows:

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

Sec. 17-142.1. To defray health insurance costs. To provide for the partial reimbursement of health insurance costs.

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

(2) In lieu of the annual payment authorized in subdivision (1), for pensioners enrolled in the Fund's regular health care deduction plans, the Fund may pay the health insurance premium reimbursement on a monthly rather than annual basis, at the percentage rate established from time to time by the Board. If the Board so directs, these monthly payments may be made in the form of a direct payment of premium and a reduction in the amount deducted from the annuity, rather than in the form of reimbursement by separate warrant.

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

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

(5) There is hereby created the Chicago Teachers' Pension Fund Health Insurance Task Force. The Task Force shall consist of 12 members appointed as follows:

(a) Eight members, 2 of whom shall be appointed by each of the 4 legislative leaders.

(b) One member, who shall be appointed by the board of trustees of the Fund.

(c) One member, who shall be appointed by the executive director of the Retired Teachers Association of Chicago.

(d) One member, who shall be appointed by the president of the Chicago Teachers Union.

(e) One member, who shall be appointed by the chairman of the Chicago Board of Education.

The Task force shall study and consider the program of health insurance coverage for pensioners that is currently administered by the Fund, and shall present its findings and recommendations concerning the following specified matters:

(i) the need for increasing the $65,000,000 limitation on annual payments under subsection (3) of this Section;

(ii) moving the administration of the retiree health plan to another appropriate public or private entity;

(iii) suggestions for an exit strategy and transition;

(iv) consideration of alternative funding mechanisms; and

(v) consideration of the proper role of fiduciaries in administering the health insurance program.

Members of the Task Force shall serve without compensation. The Fund shall provide a meeting place and clerical support for the Task Force.

The Task Force shall present a final report of its findings and recommendations to the Governor of Illinois, the Mayor of Chicago, the Illinois General Assembly, and the Illinois State Library no later than January 31, 2017. Upon the filing of its report and the conclusion of its business, the Task Force is abolished.

(Source: P.A. 93-677, eff. 6-28-04.)

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