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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| AN ACT concerning government.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The State Employees Group Insurance Act of 1971 |
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| is amended by changing Section 6.6 as follows:
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| (5 ILCS 375/6.6)
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| Sec. 6.6. Contributions to the Teacher Health Insurance |
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| Security Fund.
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| (a) Beginning July 1, 1995, all active contributors of the |
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| Teachers'
Retirement System (established under Article 16 of |
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| the Illinois Pension Code)
who are not employees of a |
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| department as defined in Section 3 of this Act
shall make |
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| contributions toward the cost of annuitant and survivor health
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| benefits. These contributions shall be at the following rates:
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| until January 1, 2002, 0.5% of salary;
beginning January 1, |
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| 2002, 0.65% of salary;
beginning July 1, 2003, 0.75% of salary; |
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| beginning July 1, 2005, 0.80% of salary;
beginning July 1, |
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| 2007, a percentage of salary to be determined by the Department |
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| of Central Management Services by rule, which in each fiscal |
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| year shall not exceed 105% of the percentage of salary actually |
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| required to be paid in the previous fiscal year.
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| These contributions shall be deducted by the employer and |
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| paid to the System
as service agent for the Department of |
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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| Central Management Services. The System
may use the same |
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| processes for collecting the contributions required by this
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| subsection that it uses to collect contributions received from |
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| school districts
and other covered employers under Sections |
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| 16-154 and 16-155 of the Illinois
Pension Code.
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| An employer may agree to pick up or pay the contributions |
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| required under
this subsection on behalf of the teacher; such |
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| contributions shall be deemed
to have to have been paid by the |
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| teacher. Beginning January 1, 2002, if
the employer does not |
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| directly pay the required member contribution, then the
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| employer shall reduce the member's salary by an amount equal to |
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| the required
contribution and shall then pay the contribution |
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| on behalf of the member.
This reduction shall not change the |
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| amounts reported as creditable earnings
to the Teachers' |
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| Retirement System.
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| A person who purchases optional service credit under |
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| Article 16 of the
Illinois Pension Code for a period after June |
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| 30, 1995 must also make a
contribution under this subsection |
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| for that optional credit, at the rate
provided in subsection |
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| (a), based on the salary used in
computing the optional service |
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| credit, plus interest on this employee
contribution. This |
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| contribution shall be collected by the System as service
agent |
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| for the Department of Central Management Services. The |
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| contribution
required under this subsection for the optional |
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| service credit must be paid
in full before any annuity based on |
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| that credit begins.
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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| (a-5) Beginning January 1, 2002, every employer of a |
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| teacher (other than
an employer that is a department as defined |
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| in Section 3 of this Act) shall
pay an employer contribution |
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| toward the cost of annuitant and survivor health
benefits. |
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| These contributions shall be computed as follows:
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| (1) Beginning January 1, 2002 through June 30, 2003, |
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| the employer
contribution shall be equal to 0.4% of each |
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| teacher's salary.
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| (2) Beginning July 1, 2003, the employer contribution |
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| shall be equal to
0.5% of each teacher's salary.
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| (3) Beginning July 1, 2005, the employer contribution |
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| shall be equal to
0.6% of each teacher's salary.
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| (4) Beginning July 1, 2007, the employer contribution |
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| shall be a percentage of each teacher's salary to be |
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| determined by the Department of Central Management |
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| Services by rule, which in each fiscal year shall not |
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| exceed 105% of the percentage of each teacher's salary |
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| actually required to be paid in the previous fiscal year.
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| These contributions shall be paid by the employer to the |
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| System as service
agent for the Department of Central |
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| Management Services. The System may use
the same processes for |
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| collecting the contributions required by this subsection
that |
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| it uses to collect contributions received from school districts |
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| and other
covered employers under the Illinois Pension Code.
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| The school district or other employing unit may pay these |
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| employer
contributions out of any source of funding available |
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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| for that purpose and
shall forward the contributions to the |
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| System on the schedule established
for the payment of member |
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| contributions.
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| (b) The Teachers' Retirement System shall promptly deposit |
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| all moneys
collected under subsections (a) and (a-5) of this
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| Section into the Teacher Health Insurance Security Fund created |
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| in Section 6.5
of this Act. The moneys collected under this |
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| Section shall be used only for
the purposes authorized in |
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| Section 6.5 of this Act and shall not be considered
to be |
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| assets of the Teachers' Retirement System. Contributions made |
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| under this
Section are not transferable to other pension funds |
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| or retirement systems and
are not refundable upon termination |
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| of service.
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| (c) On or before November 15 of each year, the Board of |
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| Trustees of the
Teachers' Retirement System shall certify to |
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| the Governor, the Director of
Central Management Services, and |
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| the State Comptroller its estimate of the
total amount of |
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| contributions to be paid under subsection (a) of this Section
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| 6.6 for the next fiscal year. The amount certified shall be |
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| decreased or
increased each year by the amount that the actual |
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| active teacher contributions
either fell short of or exceeded |
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| the estimate used by the Board in making the
certification for |
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| the previous fiscal year. The certification shall include
a |
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| detailed explanation of the methods and information that the |
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| Board relied
upon in preparing its estimate. As soon as |
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| possible after the effective date
of this amendatory Act of the |
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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| 92nd General Assembly, the Board
shall recalculate and |
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| recertify its certifications for fiscal years 2002 and
2003.
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| (d) Beginning in fiscal year 1996, on the first day of each |
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| month, or
as soon thereafter as may be practical, the State |
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| Treasurer and the State
Comptroller shall transfer from the |
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| General Revenue Fund to the Teacher Health
Insurance Security |
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| Fund 1/12 of the annual amount appropriated for that fiscal
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| year to the State Comptroller for deposit into the Teacher |
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| Health Insurance
Security Fund under Section 1.3 of the State |
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| Pension Funds Continuing
Appropriation Act.
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| (e) Except where otherwise specified in this Section, the |
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| definitions
that apply to Article 16 of the Illinois Pension |
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| Code apply to this Section.
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| (f) Notwithstanding any other law to the contrary, the |
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| Teachers Health Insurance Security Fund is not subject to |
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| sweeps, administrative charge-backs, or any other fiscal or |
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| budgetary maneuver that would in any way transfer any amounts |
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| from the Teachers Health Insurance Security Fund into any other |
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| fund of the State. (Blank).
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| (Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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