Illinois General Assembly - Full Text of HB2972
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Full Text of HB2972  101st General Assembly

HB2972 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2972

 

Introduced , by Rep. Mark L. Walker

 

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

    Amends the State Employees Group Insurance Act of 1971. Modifies the term "annuitant" to not include any member of the General Assembly, or any person serving as Governor, Lieutenant Governor, Secretary of State, Treasurer, Comptroller, or Attorney General, or the surviving spouse of such a person, who is sworn into office for the first time on or after the effective date of this amendatory Act, and retires as a participating member under the General Assembly Retirement System, for the purpose of administering health benefits under the Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2972LRB101 07587 RJF 52634 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17administration executed with the Department.
18    (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2, 14 (including an employee
21who has elected to receive an alternative retirement
22cancellation payment under Section 14-108.5 of the Illinois
23Pension Code in lieu of an annuity or who meets the criteria

 

 

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1for retirement, but in lieu of receiving an annuity under that
2Article has elected to receive an accelerated pension benefit
3payment under Section 14-147.5 of that Article), 15 (including
4an employee who has retired under the optional retirement
5program established under Section 15-158.2 or who meets the
6criteria for retirement but in lieu of receiving an annuity
7under that Article has elected to receive an accelerated
8pension benefit payment under Section 15-185.5 of the Article),
9paragraphs (2), (3), or (5) of Section 16-106 (including an
10employee who meets the criteria for retirement, but in lieu of
11receiving an annuity under that Article has elected to receive
12an accelerated pension benefit payment under Section 16-190.5
13of the Illinois Pension Code), or Article 18 of the Illinois
14Pension Code; (2) any person who was receiving group insurance
15coverage under this Act as of March 31, 1978 by reason of his
16status as an annuitant, even though the annuity in relation to
17which such coverage was provided is a proportional annuity
18based on less than the minimum period of service required for a
19retirement annuity in the system involved; (3) any person not
20otherwise covered by this Act who has retired as a
21participating member under Article 2 of the Illinois Pension
22Code but is ineligible for the retirement annuity under Section
232-119 of the Illinois Pension Code; (4) the spouse of any
24person who is receiving a retirement annuity under Article 18
25of the Illinois Pension Code and who is covered under a group
26health insurance program sponsored by a governmental employer

 

 

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1other than the State of Illinois and who has irrevocably
2elected to waive his or her coverage under this Act and to have
3his or her spouse considered as the "annuitant" under this Act
4and not as a "dependent"; or (5) an employee who retires, or
5has retired, from a qualified position, as determined according
6to rules promulgated by the Director, under a qualified local
7government, a qualified rehabilitation facility, a qualified
8domestic violence shelter or service, or a qualified child
9advocacy center. (For definition of "retired employee", see (p)
10post). "Annuitant" does not include any member, as defined in
11Article 2 of the Illinois Pension Code, or the surviving spouse
12of such a person, who is sworn into office for the first time
13on or after the effective date of this amendatory Act of the
14101st General Assembly, and retires as a participating member
15under Article 2 of the Illinois Pension Code. For the purposes
16of this subsection (b), "member" as used in this paragraph does
17not include a Clerk or Assistant Clerk of the House of
18Representatives or a Secretary or Assistant Secretary of the
19Senate who may become a member under Article 2 of the Illinois
20Pension Code.
21    (b-5) (Blank).
22    (b-6) (Blank).
23    (b-7) (Blank).
24    (c) "Carrier" means (1) an insurance company, a corporation
25organized under the Limited Health Service Organization Act or
26the Voluntary Health Services Plan Act, a partnership, or other

 

 

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1nongovernmental organization, which is authorized to do group
2life or group health insurance business in Illinois, or (2) the
3State of Illinois as a self-insurer.
4    (d) "Compensation" means salary or wages payable on a
5regular payroll by the State Treasurer on a warrant of the
6State Comptroller out of any State, trust or federal fund, or
7by the Governor of the State through a disbursing officer of
8the State out of a trust or out of federal funds, or by any
9Department out of State, trust, federal or other funds held by
10the State Treasurer or the Department, to any person for
11personal services currently performed, and ordinary or
12accidental disability benefits under Articles 2, 14, 15
13(including ordinary or accidental disability benefits under
14the optional retirement program established under Section
1515-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
16Article 18 of the Illinois Pension Code, for disability
17incurred after January 1, 1966, or benefits payable under the
18Workers' Compensation or Occupational Diseases Act or benefits
19payable under a sick pay plan established in accordance with
20Section 36 of the State Finance Act. "Compensation" also means
21salary or wages paid to an employee of any qualified local
22government, qualified rehabilitation facility, qualified
23domestic violence shelter or service, or qualified child
24advocacy center.
25    (e) "Commission" means the State Employees Group Insurance
26Advisory Commission authorized by this Act. Commencing July 1,

 

 

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11984, "Commission" as used in this Act means the Commission on
2Government Forecasting and Accountability as established by
3the Legislative Commission Reorganization Act of 1984.
4    (f) "Contributory", when referred to as contributory
5coverage, shall mean optional coverages or benefits elected by
6the member toward the cost of which such member makes
7contribution, or which are funded in whole or in part through
8the acceptance of a reduction in earnings or the foregoing of
9an increase in earnings by an employee, as distinguished from
10noncontributory coverage or benefits which are paid entirely by
11the State of Illinois without reduction of the member's salary.
12    (g) "Department" means any department, institution, board,
13commission, officer, court or any agency of the State
14government receiving appropriations and having power to
15certify payrolls to the Comptroller authorizing payments of
16salary and wages against such appropriations as are made by the
17General Assembly from any State fund, or against trust funds
18held by the State Treasurer and includes boards of trustees of
19the retirement systems created by Articles 2, 14, 15, 16 and 18
20of the Illinois Pension Code. "Department" also includes the
21Illinois Comprehensive Health Insurance Board, the Board of
22Examiners established under the Illinois Public Accounting
23Act, and the Illinois Finance Authority.
24    (h) "Dependent", when the term is used in the context of
25the health and life plan, means a member's spouse and any child
26(1) from birth to age 26 including an adopted child, a child

 

 

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

 

 

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

 

 

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1disability benefits under Articles 2, 14, 15 (including
2ordinary or accidental disability benefits under the optional
3retirement program established under Section 15-158.2),
4paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
5the Illinois Pension Code, for disability incurred after
6January 1, 1966, (2) receives total permanent or total
7temporary disability under the Workers' Compensation Act or
8Occupational Disease Act as a result of injuries sustained or
9illness contracted in the course of employment with the State
10of Illinois, or (3) is not otherwise covered under this Act and
11has retired as a participating member under Article 2 of the
12Illinois Pension Code but is ineligible for the retirement
13annuity under Section 2-119 of the Illinois Pension Code.
14However, a person who satisfies the criteria of the foregoing
15definition of "employee" except that such person is made
16ineligible to participate in the State Universities Retirement
17System by clause (4) of subsection (a) of Section 15-107 of the
18Illinois Pension Code is also an "employee" for the purposes of
19this Act. "Employee" also includes any person receiving or
20eligible for benefits under a sick pay plan established in
21accordance with Section 36 of the State Finance Act. "Employee"
22also includes (i) each officer or employee in the service of a
23qualified local government, including persons appointed as
24trustees of sanitary districts regardless of hours devoted to
25the service of the sanitary district, (ii) each employee in the
26service of a qualified rehabilitation facility, (iii) each

 

 

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

 

 

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1    (p) "Retired employee" means any person who would be an
2annuitant as that term is defined herein but for the fact that
3such person retired prior to January 1, 1966. Such term also
4includes any person formerly employed by the University of
5Illinois in the Cooperative Extension Service who would be an
6annuitant but for the fact that such person was made ineligible
7to participate in the State Universities Retirement System by
8clause (4) of subsection (a) of Section 15-107 of the Illinois
9Pension Code.
10    (q) "Survivor" means a person receiving an annuity as a
11survivor of an employee or of an annuitant. "Survivor" also
12includes: (1) the surviving dependent of a person who satisfies
13the definition of "employee" except that such person is made
14ineligible to participate in the State Universities Retirement
15System by clause (4) of subsection (a) of Section 15-107 of the
16Illinois Pension Code; (2) the surviving dependent of any
17person formerly employed by the University of Illinois in the
18Cooperative Extension Service who would be an annuitant except
19for the fact that such person was made ineligible to
20participate in the State Universities Retirement System by
21clause (4) of subsection (a) of Section 15-107 of the Illinois
22Pension Code; and (3) the surviving dependent of a person who
23was an annuitant under this Act by virtue of receiving an
24alternative retirement cancellation payment under Section
2514-108.5 of the Illinois Pension Code.
26    (q-2) "SERS" means the State Employees' Retirement System

 

 

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1of Illinois, created under Article 14 of the Illinois Pension
2Code.
3    (q-3) "SURS" means the State Universities Retirement
4System, created under Article 15 of the Illinois Pension Code.
5    (q-4) "TRS" means the Teachers' Retirement System of the
6State of Illinois, created under Article 16 of the Illinois
7Pension Code.
8    (q-5) (Blank).
9    (q-6) (Blank).
10    (q-7) (Blank).
11    (r) "Medical services" means the services provided within
12the scope of their licenses by practitioners in all categories
13licensed under the Medical Practice Act of 1987.
14    (s) "Unit of local government" means any county,
15municipality, township, school district (including a
16combination of school districts under the Intergovernmental
17Cooperation Act), special district or other unit, designated as
18a unit of local government by law, which exercises limited
19governmental powers or powers in respect to limited
20governmental subjects, any not-for-profit association with a
21membership that primarily includes townships and township
22officials, that has duties that include provision of research
23service, dissemination of information, and other acts for the
24purpose of improving township government, and that is funded
25wholly or partly in accordance with Section 85-15 of the
26Township Code; any not-for-profit corporation or association,

 

 

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

 

 

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1administrative offices funded by the Department of Human
2Services (as successor to the Illinois Department of Public
3Aid), approved by the Director and participating in a program
4created under subsection (k) of Section 10.
5    (v) "TRS benefit recipient" means a person who:
6        (1) is not a "member" as defined in this Section; and
7        (2) is receiving a monthly benefit or retirement
8    annuity under Article 16 of the Illinois Pension Code; and
9        (3) either (i) has at least 8 years of creditable
10    service under Article 16 of the Illinois Pension Code, or
11    (ii) was enrolled in the health insurance program offered
12    under that Article on January 1, 1996, or (iii) is the
13    survivor of a benefit recipient who had at least 8 years of
14    creditable service under Article 16 of the Illinois Pension
15    Code or was enrolled in the health insurance program
16    offered under that Article on the effective date of this
17    amendatory Act of 1995, or (iv) is a recipient or survivor
18    of a recipient of a disability benefit under Article 16 of
19    the Illinois Pension Code.
20    (w) "TRS dependent beneficiary" means a person who:
21        (1) is not a "member" or "dependent" as defined in this
22    Section; and
23        (2) is a TRS benefit recipient's: (A) spouse, (B)
24    dependent parent who is receiving at least half of his or
25    her support from the TRS benefit recipient, or (C) natural,
26    step, adjudicated, or adopted child who is (i) under age

 

 

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

 

 

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1        (3) either (i) was a full-time employee of a community
2    college district or an association of community college
3    boards created under the Public Community College Act
4    (other than an employee whose last employer under Article
5    15 of the Illinois Pension Code was a community college
6    district subject to Article VII of the Public Community
7    College Act) and was eligible to participate in a group
8    health benefit plan as an employee during the time of
9    employment with a community college district (other than a
10    community college district subject to Article VII of the
11    Public Community College Act) or an association of
12    community college boards, or (ii) is the survivor of a
13    person described in item (i).
14    (aa) "Community college dependent beneficiary" means a
15person who:
16        (1) is not a "member" or "dependent" as defined in this
17    Section; and
18        (2) is a community college benefit recipient's: (A)
19    spouse, (B) dependent parent who is receiving at least half
20    of his or her support from the community college benefit
21    recipient, or (C) natural, step, adjudicated, or adopted
22    child who is (i) under age 26, or (ii) age 19 or over and
23    has a mental or physical disability from a cause
24    originating prior to the age of 19 (age 26 if enrolled as
25    an adult child).
26    "Community college dependent beneficiary" does not

 

 

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1include, as indicated under paragraph (2) of this subsection
2(aa), a dependent of the survivor of a community college
3benefit recipient who first becomes a dependent of a survivor
4of a community college benefit recipient on or after the
5effective date of this amendatory Act of the 97th General
6Assembly unless that dependent would have been eligible for
7coverage as a dependent of the deceased community college
8benefit recipient upon whom the survivor annuity is based.
9    (bb) "Qualified child advocacy center" means any Illinois
10child advocacy center and its administrative offices funded by
11the Department of Children and Family Services, as defined by
12the Children's Advocacy Center Act (55 ILCS 80/), approved by
13the Director and participating in a program created under
14subsection (n) of Section 10.
15    (cc) "Placement for adoption" means the assumption and
16retention by a member of a legal obligation for total or
17partial support of a child in anticipation of adoption of the
18child. The child's placement with the member terminates upon
19the termination of such legal obligation.
20(Source: P.A. 99-143, eff. 7-27-15; 100-355, eff. 1-1-18;
21100-587, eff. 6-4-18.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.