Illinois General Assembly - Full Text of SB3197
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Full Text of SB3197  102nd General Assembly

SB3197enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB3197 EnrolledLRB102 25208 SPS 34478 b

1    AN ACT concerning employment.
 
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
11of implementing specific programs providing benefits under
12this Act.
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
9Article), paragraph paragraphs (2), (3), or (5) of Section
1016-106 (including an employee who meets the criteria for
11retirement, but in lieu of receiving an annuity under that
12Article has elected to receive an accelerated pension benefit
13payment under Section 16-190.5 of the Illinois Pension Code),
14or Article 18 of the Illinois Pension Code; (2) any person who
15was receiving group insurance coverage under this Act as of
16March 31, 1978 by reason of his status as an annuitant, even
17though the annuity in relation to which such coverage was
18provided is a proportional annuity based on less than the
19minimum period of service required for a retirement annuity in
20the system involved; (3) any person not otherwise covered by
21this Act who has retired as a participating member under
22Article 2 of the Illinois Pension Code but is ineligible for
23the retirement annuity under Section 2-119 of the Illinois
24Pension Code; (4) the spouse of any person who is receiving a
25retirement annuity under Article 18 of the Illinois Pension
26Code and who is covered under a group health insurance program

 

 

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1sponsored by a governmental employer other than the State of
2Illinois and who has irrevocably elected to waive his or her
3coverage under this Act and to have his or her spouse
4considered as the "annuitant" under this Act and not as a
5"dependent"; or (5) an employee who retires, or has retired,
6from a qualified position, as determined according to rules
7promulgated by the Director, under a qualified local
8government, a qualified rehabilitation facility, a qualified
9domestic violence shelter or service, or a qualified child
10advocacy center. (For definition of "retired employee", see
11(p) post).
12    (b-5) (Blank).
13    (b-6) (Blank).
14    (b-7) (Blank).
15    (c) "Carrier" means (1) an insurance company, a
16corporation organized under the Limited Health Service
17Organization Act or the Voluntary Health Services Plans Act, a
18partnership, or other nongovernmental organization, which is
19authorized to do group life or group health insurance business
20in Illinois, or (2) the State of Illinois as a self-insurer.
21    (d) "Compensation" means salary or wages payable on a
22regular payroll by the State Treasurer on a warrant of the
23State Comptroller out of any State, trust or federal fund, or
24by the Governor of the State through a disbursing officer of
25the State out of a trust or out of federal funds, or by any
26Department out of State, trust, federal or other funds held by

 

 

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1the State Treasurer or the Department, to any person for
2personal services currently performed, and ordinary or
3accidental disability benefits under Articles 2, 14, 15
4(including ordinary or accidental disability benefits under
5the optional retirement program established under Section
615-158.2), paragraph paragraphs (2), (3), or (5) of Section
716-106, or Article 18 of the Illinois Pension Code, for
8disability incurred after January 1, 1966, or benefits payable
9under the Workers' Compensation or Occupational Diseases Act
10or benefits payable under a sick pay plan established in
11accordance with Section 36 of the State Finance Act.
12"Compensation" also means salary or wages paid to an employee
13of any qualified local government, qualified rehabilitation
14facility, qualified domestic violence shelter or service, or
15qualified child advocacy center.
16    (e) "Commission" means the State Employees Group Insurance
17Advisory Commission authorized by this Act. Commencing July 1,
181984, "Commission" as used in this Act means the Commission on
19Government Forecasting and Accountability as established by
20the Legislative Commission Reorganization Act of 1984.
21    (f) "Contributory", when referred to as contributory
22coverage, shall mean optional coverages or benefits elected by
23the member toward the cost of which such member makes
24contribution, or which are funded in whole or in part through
25the acceptance of a reduction in earnings or the foregoing of
26an increase in earnings by an employee, as distinguished from

 

 

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1noncontributory coverage or benefits which are paid entirely
2by the State of Illinois without reduction of the member's
3salary.
4    (g) "Department" means any department, institution, board,
5commission, officer, court or any agency of the State
6government receiving appropriations and having power to
7certify payrolls to the Comptroller authorizing payments of
8salary and wages against such appropriations as are made by
9the General Assembly from any State fund, or against trust
10funds held by the State Treasurer and includes boards of
11trustees of the retirement systems created by Articles 2, 14,
1215, 16, and 18 of the Illinois Pension Code. "Department" also
13includes the Illinois Comprehensive Health Insurance Board,
14the Board of Examiners established under the Illinois Public
15Accounting Act, and the Illinois Finance Authority.
16    (h) "Dependent", when the term is used in the context of
17the health and life plan, means a member's spouse and any child
18(1) from birth to age 26 including an adopted child, a child
19who lives with the member from the time of the placement for
20adoption until entry of an order of adoption, a stepchild or
21adjudicated child, or a child who lives with the member if such
22member is a court appointed guardian of the child or (2) age 19
23or over who has a mental or physical disability from a cause
24originating prior to the age of 19 (age 26 if enrolled as an
25adult child dependent). For the health plan only, the term
26"dependent" also includes (1) any person enrolled prior to the

 

 

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

 

 

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

 

 

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

 

 

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1or after January 13, 2012 (the effective date of Public Act
297-668), the individual must meet the minimum vesting
3requirements of the applicable retirement system in order to
4be eligible for group insurance benefits under that system. In
5the case of a survivor who is not entitled to occupational
6death benefits pursuant to an applicable retirement system or
7death benefits pursuant to the Illinois Workers' Compensation
8Act, and who first becomes a survivor on or after January 13,
92012 (the effective date of Public Act 97-668), the deceased
10employee, annuitant, or retired employee upon whom the annuity
11is based must have been eligible to participate in the group
12insurance system under the applicable retirement system in
13order for the survivor to be eligible for group insurance
14benefits under that system.
15    In the case of a survivor who is entitled to occupational
16death benefits pursuant to the deceased employee's applicable
17retirement system or death benefits pursuant to the Illinois
18Workers' Compensation Act, and first becomes a survivor on or
19after January 1, 2022, the survivor is eligible for group
20health insurance benefits regardless of the deceased
21employee's minimum vesting requirements under the applicable
22retirement system, with a State contribution rate of 100%,
23until an unmarried child dependent reaches the age of 18, or
24the age of 22 if the dependent child is a full-time student, or
25until the adult survivor becomes eligible for benefits under
26the federal Medicare health insurance program (Title XVIII of

 

 

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1the Social Security Act, as added by Public Law 89-97). In the
2case of a survivor currently receiving occupational death
3benefits pursuant to the deceased employee's applicable
4retirement system or has received death benefits pursuant to
5the Illinois Workers' Compensation Act, who first became a
6survivor prior to January 1, 2022, the survivor is eligible
7for group health insurance benefits regardless of the deceased
8employee's minimum vesting requirements under the applicable
9retirement system, with a State contribution rate of 100%,
10until an unmarried child dependent reaches the age of 18, or
11the age of 22 if the dependent child is a full-time student, or
12until the adult survivor becomes eligible for benefits under
13the federal Medicare health insurance program (Title XVIII of
14the Social Security Act, as added by Public Law 89-97). The
15changes made by this amendatory Act of the 102nd General
16Assembly with respect to survivors who first became survivors
17prior to January 1, 2022 shall apply upon request of the
18survivor on or after the effective date of this amendatory Act
19of the 102nd General Assembly.
20    (m) "Optional coverages or benefits" means those coverages
21or benefits available to the member on his or her voluntary
22election, and at his or her own expense.
23    (n) "Program" means the group life insurance, health
24benefits and other employee benefits designed and contracted
25for by the Director under this Act.
26    (o) "Health plan" means a health benefits program offered

 

 

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1by the State of Illinois for persons eligible for the plan.
2    (p) "Retired employee" means any person who would be an
3annuitant as that term is defined herein but for the fact that
4such person retired prior to January 1, 1966. Such term also
5includes any person formerly employed by the University of
6Illinois in the Cooperative Extension Service who would be an
7annuitant but for the fact that such person was made
8ineligible to participate in the State Universities Retirement
9System by clause (4) of subsection (a) of Section 15-107 of the
10Illinois Pension Code.
11    (q) "Survivor" means a person receiving an annuity as a
12survivor of an employee or of an annuitant. "Survivor" also
13includes: (1) the surviving dependent of a person who
14satisfies the definition of "employee" except that such person
15is made ineligible to participate in the State Universities
16Retirement System by clause (4) of subsection (a) of Section
1715-107 of the Illinois Pension Code; (2) the surviving
18dependent of any person formerly employed by the University of
19Illinois in the Cooperative Extension Service who would be an
20annuitant except for the fact that such person was made
21ineligible to participate in the State Universities Retirement
22System by clause (4) of subsection (a) of Section 15-107 of the
23Illinois Pension Code; (3) the surviving dependent of a person
24who was an annuitant under this Act by virtue of receiving an
25alternative retirement cancellation payment under Section
2614-108.5 of the Illinois Pension Code; and (4) a person who

 

 

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1would be receiving an annuity as a survivor of an annuitant
2except that the annuitant elected on or after June 4, 2018 to
3receive an accelerated pension benefit payment under Section
414-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
5in lieu of receiving an annuity.
6    (q-2) "SERS" means the State Employees' Retirement System
7of Illinois, created under Article 14 of the Illinois Pension
8Code.
9    (q-3) "SURS" means the State Universities Retirement
10System, created under Article 15 of the Illinois Pension Code.
11    (q-4) "TRS" means the Teachers' Retirement System of the
12State of Illinois, created under Article 16 of the Illinois
13Pension Code.
14    (q-5) (Blank).
15    (q-6) (Blank).
16    (q-7) (Blank).
17    (r) "Medical services" means the services provided within
18the scope of their licenses by practitioners in all categories
19licensed under the Medical Practice Act of 1987.
20    (s) "Unit of local government" means any county,
21municipality, township, school district (including a
22combination of school districts under the Intergovernmental
23Cooperation Act), special district or other unit, designated
24as a unit of local government by law, which exercises limited
25governmental powers or powers in respect to limited
26governmental subjects, any not-for-profit association with a

 

 

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

 

 

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

 

 

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1    program offered under that Article on June 21, 1995 (the
2    effective date of Public Act 89-25), or (iv) is a
3    recipient or survivor of a recipient of a disability
4    benefit under Article 16 of the Illinois Pension Code.
5    (w) "TRS dependent beneficiary" means a person who:
6        (1) is not a "member" or "dependent" as defined in
7    this Section; and
8        (2) is a TRS benefit recipient's: (A) spouse, (B)
9    dependent parent who is receiving at least half of his or
10    her support from the TRS benefit recipient, or (C)
11    natural, step, adjudicated, or adopted child who is (i)
12    under age 26, (ii) was, on January 1, 1996, participating
13    as a dependent beneficiary in the health insurance program
14    offered under Article 16 of the Illinois Pension Code, or
15    (iii) age 19 or over who has a mental or physical
16    disability from a cause originating prior to the age of 19
17    (age 26 if enrolled as an adult child).
18    "TRS dependent beneficiary" does not include, as indicated
19under paragraph (2) of this subsection (w), a dependent of the
20survivor of a TRS benefit recipient who first becomes a
21dependent of a survivor of a TRS benefit recipient on or after
22January 13, 2012 (the effective date of Public Act 97-668)
23unless that dependent would have been eligible for coverage as
24a dependent of the deceased TRS benefit recipient upon whom
25the survivor benefit is based.
26    (x) "Military leave" refers to individuals in basic

 

 

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

 

 

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1    Public Community College Act) or an association of
2    community college boards, or (ii) is the survivor of a
3    person described in item (i).
4    (aa) "Community college dependent beneficiary" means a
5person who:
6        (1) is not a "member" or "dependent" as defined in
7    this Section; and
8        (2) is a community college benefit recipient's: (A)
9    spouse, (B) dependent parent who is receiving at least
10    half of his or her support from the community college
11    benefit recipient, or (C) natural, step, adjudicated, or
12    adopted child who is (i) under age 26, or (ii) age 19 or
13    over and has a mental or physical disability from a cause
14    originating prior to the age of 19 (age 26 if enrolled as
15    an adult child).
16    "Community college dependent beneficiary" does not
17include, as indicated under paragraph (2) of this subsection
18(aa), a dependent of the survivor of a community college
19benefit recipient who first becomes a dependent of a survivor
20of a community college benefit recipient on or after January
2113, 2012 (the effective date of Public Act 97-668) unless that
22dependent would have been eligible for coverage as a dependent
23of the deceased community college benefit recipient upon whom
24the survivor annuity is based.
25    (bb) "Qualified child advocacy center" means any Illinois
26child advocacy center and its administrative offices funded by

 

 

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1the Department of Children and Family Services, as defined by
2the Children's Advocacy Center Act (55 ILCS 80/), approved by
3the Director and participating in a program created under
4subsection (n) of Section 10.
5    (cc) "Placement for adoption" means the assumption and
6retention by a member of a legal obligation for total or
7partial support of a child in anticipation of adoption of the
8child. The child's placement with the member terminates upon
9the termination of such legal obligation.
10(Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21;
11revised 12-2-21.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.