August 29, 2008
To the Honorable Members of the
Illinois House of Representatives
95th General Assembly
Pursuant to Article IV, Section 9(e) of the
Illinois Constitution of 1970, I hereby return House Bill 4602, entitled “AN
ACT concerning regulation.”, with the following specific recommendations for
change:
on page 4, line 1,
after “Section 356z.11”, by inserting “and changing Section 367f”; and
on page 4, immediately
below line 11, by inserting the following:
“(215 ILCS 5/367f) (from Ch. 73, par. 979f)
Sec. 367f. Firemen's continuance privilege. As used in this
Section
1. The terms “municipality”, “deferred pensioner” and “creditable
service” shall have the meaning ascribed to such terms by Sections 4-103,
4-105a and 4-108, respectively, of the Illinois Pension Code, as now or
hereafter amended.
2. The terms “fireman” and “firemen” shall have the meaning
ascribed to the term “firefighter” by Section 4-106 of the Illinois Pension
Code, and include those persons under the
coverage of Article 4 of that Code, as heretofore or hereafter amended.
3. The “retirement or disability period” of a fireman means the
period:
a. which begins on the day the fireman is removed from a
municipality's fire department payroll because of the occurrence of any of the
following events, to wit: (i) the fireman retires as a deferred pensioner under
Section 4-105a of the Illinois Pension Code, (ii) the fireman retires from
active service as a fireman with an attained age and accumulated creditable
service which together qualify the fireman for immediate receipt of retirement
pension benefits under Section 4-109 of the Illinois Pension Code, or (iii) the fireman's disability is established
under Section 4-112 of the Illinois Pension Code; and
b. which ends on the first to occur of any of the following
events, to wit: (i) the fireman's reinstatement or reentry into active service
on the municipality's fire department as provided for under Article 4 of the
Illinois Pension Code, (ii) the fireman's exercise of any refund option
available under Section 4-116 of the Illinois Pension Code, (iii) the fireman's loss pursuant to Section 4-138
of the Illinois Pension Code of any benefits
provided for in Article 4 of that Code, or (iv) the fireman's death or -- if at
the time of the fireman's death the fireman is survived by a spouse who, in
that capacity, is entitled to receive a surviving spouse's monthly pension
pursuant to Article 4 of the Illinois Pension Code -- then the death or
remarriage of that spouse; and .
c. notwithstanding
subsections 3a. or 3b. of this Section, a disabled or retired fireman who did
not elect to enroll in the municipal group insurance plan during the retirement
or disability period or who elected to enroll in the municipal group insurance
plan during the retirement or disability period but later disenrolled, may only
once thereafter elect to enroll in the municipal group insurance plan during
the annual open enrollment or renewal period if the disabled or retired
fireman, as of the date on which the individual seeks coverage under this
subsection:
(i) has a period of continuous
creditable coverage of 12 months or more;
(ii) has not been without
creditable coverage for more than 63 days; and
(iii) is not eligible for Medicare,
including those who have applied for Medicare but for whom eligibility has not
been approved.
For purposes of this subsection 3c. of this Section,
“creditable coverage” shall have the meaning provided under paragraph (1) of
subsection (C) of Section 20 of the Illinois Health Insurance Portability and
Accountability Act. No exclusions or limitations may be applied to coverage
elected pursuant to subsection subsection 3c. of this Section that are not
similarly applied to coverage elected pursuant to subsections 3a. and 3b. of
this Section.
No policy of group accident and health insurance under which
firemen employed by a municipality are insured for the their
individual benefit of firemen shall be issued or delivered in
this State to any municipality unless such group policy provides for the
election of continued group insurance coverage for the retirement or disability
period of each fireman who is insured under the provisions of the group policy
on the day immediately preceding the day on which the retirement or disability
period of such fireman begins and which provides for the election of
coverage pursuant to subsection 3c. of this Section. So long as any
required premiums for continued group insurance coverage are paid in accordance
with the provisions of the group policy, an election made pursuant to this
Section shall provide continued group insurance coverage for a fireman
throughout the retirement or disability period of the fireman and, unless the
fireman otherwise elects and subject to any other provisions of the group
policy which relate either to the provision or to the termination of
dependents' coverage and which are not inconsistent with this Section, for any
dependents of the fireman who are insured under the group policy on the day
immediately preceding the day on which the retirement or disability period of
the fireman begins or who are dependents at the time a retired or disabled
fireman elects coverage pursuant to subsection 3c. of this Section;
provided, however, that when such continued group insurance coverage is in effect
with respect to a fireman on the date of the fireman's death but the retirement
or disability period of the fireman does not end with such fireman's death,
then the deceased fireman's surviving spouse upon whose death or remarriage
such retirement or disability period will end shall be entitled, without
further election and upon payment of any required premiums in accordance with
the provisions of the group policy, to maintain such continued group insurance
coverage in effect until the end of such retirement or disability period.
Continued group insurance coverage shall be provided in accordance with this
Section at the same premium rate from time to time charged for equivalent
coverage provided under the group policy with respect to covered firemen whose
retirement or disability period has not begun, and no distinction or
discrimination in the amount or rate of premiums or in any waiver of premium or
other benefit provision shall be made between continued group insurance
coverage elected pursuant to this Section and equivalent coverage provided to
firemen under the group policy other than pursuant to the provisions of this
Section; provided that no municipality shall be required by reason of any
provision of this Section to pay any group insurance premium other than one
that may be negotiated in a collective bargaining agreement. If a person
electing continued coverage under this Section becomes eligible for medicare
coverage, benefits under the group policy may continue as a supplement to the medicare
coverage upon payment of any required premiums to maintain the benefits of the
group policy as supplemental coverage.
Within 15 days of the beginning of the retirement or disability
period of any fireman entitled to elect continued group insurance coverage
under any group policy affected by this Section, the municipality last
employing such fireman shall give written notice of such beginning by certified
mail, return receipt requested to the insurance company issuing such policy.
The notice shall include the fireman's name and last known place of residence
and the beginning date of the fireman's retirement or disability period.
Within 15 days of the date of receipt of such notice from the
municipality, the insurance company by certified mail, return receipt requested,
shall give written notice to the fireman at the fireman's last known place of
residence that coverage under the group policy may be continued for the
retirement or disability period of the fireman as provided in this Section.
Such notice shall set forth: (i) a statement of election to be filed by the
fireman if the fireman wishes to continue such group insurance coverage, (ii)
the amount of monthly premium, including a statement of the portion of such
monthly premium attributable to any dependents' coverage which the fireman may
elect, and (iii) instructions as to the return of the election form to the
insurance company issuing such policy. Election shall be made, if at all, by
returning the statement of election to the insurance company by certified mail,
return receipt requested within 15 days after having received it. This
15-day return receipt requirement shall not apply to elections of coverage made
by retired or disabled firemen pursuant to subsection 3c. of this Section. For
purposes of subsection 3c., the non-enrolled disabled or retired fireman shall
be notified annually of enrollment options, and such notice shall be in writing
and sent by certified mail to the fireman’s last known place of residence.
If the fireman elects to continue coverage, it shall be the
obligation of the fireman to pay the monthly premium directly to the
municipality which shall forward it to the insurance company issuing the group
insurance policy, or as otherwise directed by the insurance company; provided,
however, that the fireman shall be entitled to designate on the statement of
election required to be filed with the insurance company that the total monthly
premium, or such portion thereof as is not contributed by a municipality, be
deducted by a Firefighter's Pension Fund from any monthly pension payment
otherwise payable to or on behalf of the fireman pursuant to Article 4 of the
Illinois Pension Code, and be remitted by such Pension Fund to the insurance
company. The portion, if any, of the monthly premium contributed by a
municipality for such continued group insurance coverage shall be paid by the
municipality directly to the insurance company issuing the group insurance
policy, or as otherwise directed by the insurance company. Such continued group
insurance coverage shall relate back to the beginning of the fireman's
retirement or disability period.
The amendment, renewal or extension of any group insurance policy
affected by this Section shall be deemed to be the issuance of a new policy of
insurance for purposes of this Section.
In the event that a municipality makes a program of accident,
health, hospital or medical benefits available to its firemen through
self-insurance, or by participation in a pool or reciprocal insurer, or by
contract in a form other than a policy of group insurance with one or more
medical service plans, health care service corporations, health maintenance
organizations, or any other professional corporations or plans under which
health care or reimbursement for the costs thereof is provided, whether the
cost of such benefits is borne by the municipality or the firemen or both, such
firemen and their surviving spouses shall have the same right to elect
continued coverage under such program of benefits as they would have if such benefits
were provided by a policy of group accident and health insurance. In such
cases, the notice of right to elect continued coverage shall be sent by the
municipality; the statement of election shall be sent to the municipality; and
references to the required premium shall refer to that portion of the cost of
such benefits which is not borne by the municipality, either voluntarily or
pursuant to the provisions of a collective bargaining agreement. In the case of
a municipality providing such benefits through self-insurance or participation
in a pool or reciprocal insurer, the right to elect continued coverage which is
provided by this paragraph shall be implemented and made available to the
firemen of the municipality and qualifying surviving spouses not later than
July 1, 1985.
The amendment, renewal or extension of any such contract in a form
other than a policy of group insurance policy shall be deemed the formation of
a new contract for the purposes of this Section.
This Section shall not limit the exercise of any conversion
privileges available under Section 367e.
Pursuant to paragraphs (h) and (i) of Section 6 of
Article VII of the Illinois Constitution,
this Section specifically denies and limits the exercise by a home rule unit of
any power which is inconsistent with this Section and all existing laws and
ordinances which are inconsistent with this Section are hereby superseded. This
Section does not preempt the concurrent exercise by home rule units of powers
consistent herewith.
The Division of Insurance of the Department of Financial and
Professional Regulation shall enforce the provisions of this Section, including
provisions relating to municipality self-insured benefit plans.”.
With these changes, House Bill 4602 will have
my approval. I respectfully request your concurrence.
Sincerely,
ROD R. BLAGOJEVICH
Governor