Full Text of SB2071 98th General Assembly
SB2071sam001 98TH GENERAL ASSEMBLY | Sen. Dave Syverson Filed: 4/8/2013
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| 1 | | AMENDMENT TO SENATE BILL 2071
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2071 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Sections 367h and 367j as follows:
| 6 | | (215 ILCS 5/367h) (from Ch. 73, par. 979h)
| 7 | | Sec. 367h. Deputy's continuance privilege. As used in this | 8 | | Section:
| 9 | | 1. The terms "municipality" and "creditable service"
shall | 10 | | have the meaning ascribed to such terms by Sections 7-105
and | 11 | | 7-113, respectively, of the Illinois Pension Code, as now or | 12 | | hereafter
amended.
| 13 | | The term "deferred pensioner" means a deputy who has | 14 | | retired,
having accumulated enough creditable service to | 15 | | qualify for a pension, but
who has not attained the required | 16 | | age.
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| 1 | | 2. The term "deputy" shall mean a "sheriff's
law | 2 | | enforcement employee" as defined in Section 7-109.3 of the | 3 | | Illinois
Pension Code, and include only
persons under the | 4 | | coverage of Article 7 of that Code, as heretofore or
hereafter
| 5 | | amended.
| 6 | | 3. The "retirement or disability period" of a deputy means | 7 | | the period:
| 8 | | a. which begins on the day the deputy is removed from a | 9 | | sheriff's
police department payroll because of the | 10 | | occurrence of any of the following
events, to wit: (i) the | 11 | | deputy retires as a deferred pensioner,
(ii) the deputy | 12 | | retires from active
service as a deputy with an attained | 13 | | age and accumulated creditable service
which together | 14 | | qualify the deputy for immediate receipt of retirement | 15 | | pension
benefits under Section 7-142.1 of the Illinois | 16 | | Pension Code, or (iii) the
deputy's disability is | 17 | | established under Article 7 of the Illinois
Pension Code; | 18 | | and
| 19 | | b. which ends on the first to occur of any of the | 20 | | following events,
to wit: (i) the deputy's reinstatement or | 21 | | reentry into active service
in the sheriff's police | 22 | | department as provided for under Article 7 of
the Illinois | 23 | | Pension Code, (ii) the deputy's exercise of any refund | 24 | | option
or acceptance of any separation benefit available | 25 | | under Article 7 of the
Illinois Pension Code, (iii) the | 26 | | deputy's
loss pursuant to Section 7-219 of the Illinois |
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| 1 | | Pension Code of any benefits
provided for in Article 7 of | 2 | | that Code, or (iv) the deputy's death or --
if at the time | 3 | | of the deputy's death the deputy is survived by a spouse
| 4 | | who, in that capacity, is entitled to receive a surviving | 5 | | spouse's monthly
pension pursuant to Article 7 of the | 6 | | Illinois Pension Code -- the death
or remarriage of that | 7 | | spouse.
| 8 | | No policy of group accident and health insurance under | 9 | | which deputies
employed by a municipality are insured for their | 10 | | individual benefit shall
be issued or delivered in this State | 11 | | to any municipality unless such group
policy provides for the | 12 | | election of continued group insurance coverage for
the | 13 | | retirement or disability period of each deputy who is insured | 14 | | under the
provisions of the group policy on the day immediately | 15 | | preceding the day
on which the retirement or disability period | 16 | | of such deputy begins. So
long as any required premiums for | 17 | | continued group insurance coverage are
paid in accordance with | 18 | | the provisions of the group policy, an election
made pursuant | 19 | | to this Section shall provide continued group insurance | 20 | | coverage
for a deputy throughout the retirement or disability | 21 | | period of the
deputy and, unless
the deputy otherwise elects | 22 | | and subject to any other provisions of the
group policy which | 23 | | relate either to the provision or to the termination
of | 24 | | dependents' coverage and which are not inconsistent with this | 25 | | Section,
for any dependents of the deputy who are insured under | 26 | | the group policy on the
day immediately preceding the day on |
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| 1 | | which the retirement or disability
period of the deputy begins; | 2 | | provided, however, that when such continued
group insurance | 3 | | coverage is in effect with respect to a deputy on the date
of | 4 | | the deputy's death but the retirement or disability period of
| 5 | | the deputy
does not end with such deputy's death, then the | 6 | | deceased deputy's surviving
spouse upon whose death or | 7 | | remarriage such retirement or disability period
will end shall | 8 | | be entitled, without further election and upon payment of
any | 9 | | required premiums in accordance with the provisions of the | 10 | | group policy,
to maintain such continued group insurance | 11 | | coverage in effect until the end of
such retirement or | 12 | | disability period. Continued group insurance coverage shall
be | 13 | | provided in accordance with this Section at the same premium | 14 | | rate from time
to time charged for equivalent coverage provided | 15 | | under the group policy with
respect to covered deputies whose | 16 | | retirement or disability period has not
begun, and no | 17 | | distinction or discrimination in the amount or rate of premiums
| 18 | | or in any waiver of premium
or other benefit provision shall be | 19 | | made between continued group insurance
coverage elected | 20 | | pursuant to this Section and equivalent coverage provided
to | 21 | | deputies under the group policy other than pursuant to the | 22 | | provisions
of this Section; provided that no municipality shall | 23 | | be required by reason
of any provision of this Section to pay | 24 | | any group insurance premium other
than one that may be | 25 | | negotiated in a collective bargaining agreement. Continuation | 26 | | is not required for an insured who becomes eligible for |
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| 1 | | medicare.
If the group policy provides for a reduction in | 2 | | benefits and premium for
insureds who become eligible for | 3 | | medicare, such provision shall apply to
persons electing | 4 | | continued coverage under this Section.
| 5 | | Within 15 days of the beginning of the retirement or | 6 | | disability period
of any deputy entitled to elect continued | 7 | | group insurance coverage under any
group policy affected by | 8 | | this Section, the municipality last employing such
deputy shall | 9 | | give written notice of such beginning by certified mail, return
| 10 | | receipt requested, to the insurance company issuing such | 11 | | policy. The notice
shall include the deputy's name and last | 12 | | known place of residence and the
beginning date of the deputy's | 13 | | retirement or disability period.
| 14 | | Within 15 days of the date of receipt of such notice from | 15 | | the municipality,
the insurance company by certified mail, | 16 | | return receipt requested, shall
give written notice to the | 17 | | deputy at the deputy's last known place of
residence that | 18 | | coverage under the group policy may be continued for the
| 19 | | retirement or disability period of the deputy as provided in | 20 | | this Section.
Such notice shall set forth: (i) a statement of | 21 | | election to be filed by
the deputy if the deputy wishes to | 22 | | continue such group insurance
coverage,
(ii) the amount of | 23 | | monthly premium, including a statement of the portion
of such | 24 | | monthly premium attributable to any dependents' coverage which | 25 | | the
deputy may elect, and (iii) instructions as to the return | 26 | | of the election
form to the insurance company issuing such |
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| 1 | | policy. Election shall be made,
if at all, by returning the | 2 | | statement of election to the insurance company
by certified | 3 | | mail, return receipt requested, within 15 days after having
| 4 | | received it.
| 5 | | If the deputy elects to continue coverage, it shall be the | 6 | | obligation
of the deputy to pay the monthly premium directly to | 7 | | the municipality which
shall forward it to the insurance | 8 | | company issuing the group insurance
policy, or as otherwise
| 9 | | directed by the insurance company; provided, however, that the | 10 | | deputy
shall be entitled to designate on the statement of | 11 | | election
required to be filed with the insurance company that | 12 | | the total
monthly premium, or such portion thereof as is not | 13 | | contributed by
a municipality, be deducted by the Illinois | 14 | | Municipal Retirement Fund
from the monthly pension payment | 15 | | otherwise payable
to or on behalf of the deputy pursuant to | 16 | | Article 7 of the Illinois Pension Code, and be remitted by such | 17 | | Fund to
the insurance company. The portion, if any, of the | 18 | | monthly premium
contributed by a municipality for such | 19 | | continued group insurance
coverage shall be paid by
the | 20 | | directly to the insurance company issuing the group insurance
| 21 | | policy, or as directed by the insurance company. Such continued
| 22 | | group insurance coverage shall relate back to the beginning of | 23 | | the deputy's
retirement or disability period.
| 24 | | The amendment, renewal or extension of any group insurance | 25 | | policy affected
by this Section shall be deemed to be the | 26 | | issuance of a new policy of insurance
for purposes of this |
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| 1 | | Section.
| 2 | | In the event that a municipality makes a program of | 3 | | accident, health,
hospital or medical benefits available to its | 4 | | deputies through
self-insurance, or by participation in a pool | 5 | | or reciprocal insurer, or by
contract in a form other than a | 6 | | policy of group insurance with one or more
medical service | 7 | | plans, health care service corporations, health maintenance
| 8 | | organizations, or any other professional corporations or plans | 9 | | under which
health care or reimbursement for the costs thereof | 10 | | is
provided, whether the cost of such benefits is borne by the | 11 | | municipality or
the deputies or both, such deputies and their | 12 | | surviving spouses shall have
the same right to elect continued | 13 | | coverage under such program of benefits
as they would have if | 14 | | such benefits were provided by a policy of group
accident and | 15 | | health insurance. In such cases, the notice of right to elect
| 16 | | continued coverage shall be sent by the municipality; the | 17 | | statement of
election shall be sent to the municipality; and | 18 | | references to the required
premium shall refer to that portion | 19 | | of the cost of such benefits which is not
borne by the | 20 | | municipality, either voluntarily or pursuant to the provisions
| 21 | | of a collective bargaining agreement. In the case of a | 22 | | municipality
providing such benefits through self-insurance or | 23 | | participation in a pool or
reciprocal insurer, the right to | 24 | | elect continued coverage which is provided
by this paragraph | 25 | | shall be implemented and made available to the deputies of
the | 26 | | municipality and qualifying surviving spouses not later than |
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| 1 | | July 1, 1986.
| 2 | | The amendment, renewal or extension of any such contract in | 3 | | a form other
than a policy of group insurance policy shall be | 4 | | deemed the formation of a
new contract for the purposes of this | 5 | | Section.
| 6 | | This Section shall not limit the exercise of any conversion | 7 | | privileges
available under Section 367e.
| 8 | | (Source: P.A. 90-655, eff. 7-30-98.)
| 9 | | (215 ILCS 5/367j) (from Ch. 73, par. 979j)
| 10 | | Sec. 367j. Municipal employee's continuance privilege.
| 11 | | (a) As used in this Section:
| 12 | | (1) The term "creditable service" shall have the | 13 | | meaning ascribed to it
by Section 7-113 of the Illinois | 14 | | Pension Code.
| 15 | | (2) The term "municipality" means any municipality, | 16 | | instrumentality,
or participating instrumentality (as | 17 | | those terms are defined in Sections
7-105, 7-107 and 7-108, | 18 | | respectively, of the Illinois Pension Code) that
| 19 | | participates in the Illinois Municipal Retirement Fund | 20 | | pursuant to Section
7-132 of the Illinois Pension Code.
| 21 | | (3) The term "employee" shall mean an employee as | 22 | | defined in Section
7-109 of the Illinois Pension Code, but | 23 | | does not include any person who is
a deputy as defined in | 24 | | Section 367h of this Code.
| 25 | | (4) The "retirement or disability period" of an |
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| 1 | | employee means the period:
| 2 | | (A) which begins on the day the employee is removed | 3 | | from the
municipality payroll because of the | 4 | | occurrence of either of the following
events: (i) the | 5 | | employee retires from active service as an employee | 6 | | with
an attained age and accumulated creditable
| 7 | | service which together qualify the employee for | 8 | | immediate receipt of
retirement pension benefits under | 9 | | Article 7 of the Illinois Pension Code,
or (ii) the | 10 | | employee's disability is established under Article 7 | 11 | | of the
Illinois Pension Code; and
| 12 | | (B) which ends on the first to occur of any of the | 13 | | following events:
(i) the employee's reinstatement or | 14 | | reentry into active service as
provided for under | 15 | | Article 7 of the Illinois Pension Code, (ii) the
| 16 | | employee's exercise of any refund option or acceptance | 17 | | of any separation
benefit available under Article 7 of | 18 | | the Illinois Pension Code, (iii) the
employee's loss | 19 | | pursuant to Section 7-219 of the Illinois Pension Code | 20 | | of
any benefits provided for in Article 7 of that Code, | 21 | | or (iv) the employee's
death or, if at the time of the | 22 | | employee's death the employee is survived
by a spouse | 23 | | who, in that capacity, is entitled to receive a | 24 | | surviving
spouse's monthly pension pursuant to Article | 25 | | 7 of the Illinois Pension
Code, the death or remarriage | 26 | | of that spouse.
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| 1 | | (b) No policy of group accident and health insurance under | 2 | | which
employees of a municipality are insured for their | 3 | | individual benefit shall
be issued or delivered in this State | 4 | | to a municipality unless such group
policy provides for the | 5 | | election of continued group insurance coverage for
the | 6 | | retirement or disability period of each employee who is insured | 7 | | under
the provisions of the group policy on the day immediately | 8 | | preceding the day
on which the retirement or disability period | 9 | | of such employee begins. So
long as any required premiums for | 10 | | continued group insurance coverage are
paid in accordance with | 11 | | the provisions of the group policy, an election
made pursuant | 12 | | to this Section shall provide continued group insurance
| 13 | | coverage for an employee throughout the retirement or | 14 | | disability period of
the employee and, unless the employee | 15 | | otherwise elects and subject to any
other provisions of the | 16 | | group policy which relate either to the provision
or to the | 17 | | termination of dependents' coverage and which are not
| 18 | | inconsistent with this Section, for any dependents of the | 19 | | employee who are
insured under the group policy on the day | 20 | | immediately preceding the day on
which the retirement or | 21 | | disability period of the employee begins; provided,
however, | 22 | | that when such continued group insurance coverage is in effect
| 23 | | with respect to an employee on the date of the employee's death | 24 | | but the
retirement or disability period of the employee does | 25 | | not end with the
employee's death, then the deceased employee's | 26 | | surviving spouse upon whose
death or remarriage such retirement |
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| 1 | | or disability period will end shall be
entitled, without | 2 | | further election and upon payment of any required
premiums in | 3 | | accordance with the provisions of the group policy, to maintain
| 4 | | such continued group insurance coverage in effect until the end | 5 | | of the
retirement or disability period. Continued group | 6 | | insurance coverage shall
be provided in accordance with this | 7 | | Section at the same premium rate from
time to time charged for | 8 | | equivalent coverage provided under the group
policy with | 9 | | respect to covered employees whose retirement or disability
| 10 | | period has not begun, and no distinction or discrimination in | 11 | | the amount or
rate of premiums or in any waiver of premium or | 12 | | other benefit provision
shall be made between continued group | 13 | | insurance coverage elected pursuant
to this Section and | 14 | | equivalent coverage provided to employees under the
group | 15 | | policy other than pursuant to the provisions of this Section;
| 16 | | provided that no municipality shall be required by reason of | 17 | | any provision
of this Section to pay any group insurance | 18 | | premium other than one that may
be negotiated in a collective | 19 | | bargaining agreement. Continuation is not required for an | 20 | | insured who becomes eligible for medicare. If the group policy
| 21 | | provides for a reduction in benefits and premium for insureds | 22 | | who become
eligible for medicare, such provision shall apply to | 23 | | persons electing
continued coverage under this Section.
| 24 | | Within 15 days of the beginning of the retirement or | 25 | | disability period of
any employee entitled to elect continued | 26 | | group insurance coverage under any
group policy affected by |
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| 1 | | this Section, the municipality last employing such
employee | 2 | | shall give written notice of such beginning by certified mail,
| 3 | | return receipt requested, to the insurance company issuing such | 4 | | policy.
The notice shall include the employee's name and last | 5 | | known place of
residence and the beginning date of the | 6 | | employee's retirement or disability
period.
| 7 | | Within 15 days of the date of receipt of such notice from | 8 | | the municipality,
the insurance company by certified mail, | 9 | | return receipt requested, shall
give written notice to the | 10 | | employee at the employee's last known place of
residence that | 11 | | coverage under the group policy may be continued for the
| 12 | | retirement or disability period of the employee as provided in | 13 | | this
Section. Such notice shall set forth: (i) a statement of | 14 | | election to be
filed by the employee if the employee wishes to | 15 | | continue such group
insurance coverage, (ii) the amount of | 16 | | monthly premium, including a
statement of the portion of such | 17 | | monthly premium attributable to any
dependents' coverage which | 18 | | the employee may elect, and (iii) instructions
as to the return | 19 | | of the election form to the insurance company issuing such
| 20 | | policy. Election shall be made, if at all, by returning the | 21 | | statement of
election to the insurance company by certified | 22 | | mail, return receipt
requested, within 15 days after having | 23 | | received it.
| 24 | | If the employee elects to continue coverage, it shall be | 25 | | the obligation
of the employee to pay the monthly premium | 26 | | directly to the municipality
which shall forward it to the |
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| 1 | | insurance company issuing the group insurance
policy, or as | 2 | | otherwise directed by the insurance company; provided,
| 3 | | however, that the employee shall be entitled to designate on | 4 | | the statement
of election required to be filed with the | 5 | | insurance company that the total
monthly premium, or such | 6 | | portion thereof as is not contributed by a
municipality, be | 7 | | deducted by the Illinois Municipal Retirement Fund from
the | 8 | | monthly pension payment otherwise payable to or on behalf of | 9 | | the
employee pursuant to Article 7 of the Illinois Pension | 10 | | Code, and be
remitted by such Fund to the insurance company. | 11 | | The portion, if any, of
the monthly premium contributed by a | 12 | | municipality for such continued group
insurance coverage shall | 13 | | be paid by the municipality directly to the
insurance company | 14 | | issuing the group insurance policy, or as directed by the
| 15 | | insurance company. Such continued group insurance coverage | 16 | | shall relate
back to the beginning of the employee's retirement | 17 | | or disability period.
| 18 | | The amendment, renewal or extension of any group insurance | 19 | | policy affected
by this Section shall be deemed to be the | 20 | | issuance of a new policy of insurance
for purposes of this | 21 | | Section.
| 22 | | (c) In the event that a municipality makes a program of | 23 | | accident,
health, hospital or medical benefits available to its | 24 | | employees through
self-insurance, or by participation in a pool | 25 | | or reciprocal insurer, or by
contract in a form other than a | 26 | | policy of group insurance with one or more
medical service |
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| 1 | | plans, health care service corporations, health maintenance
| 2 | | organizations, or any other professional corporations or plans | 3 | | under which
health care or reimbursement for the costs thereof | 4 | | is provided, whether the
cost of such benefits is borne by the | 5 | | municipality or the employees or
both, such employees and their | 6 | | surviving spouses shall have the same
right to elect continued | 7 | | coverage under such program of benefits
as they would have if | 8 | | such benefits were provided by a policy of group
accident and | 9 | | health insurance. In such cases, the notice of right to elect
| 10 | | continued coverage shall be sent by the municipality; the | 11 | | statement of
election shall be sent to the municipality; and | 12 | | references to the required
premium shall refer to that portion | 13 | | of the cost of such benefits which is not
borne by the | 14 | | municipality, either voluntarily or pursuant to the provisions
| 15 | | of a collective bargaining agreement. In the case of a | 16 | | municipality
providing such benefits through self-insurance or | 17 | | participation in a pool or
reciprocal insurer, the right to | 18 | | elect continued coverage which is provided
by this paragraph | 19 | | shall be implemented and made available to the employees
of the | 20 | | municipality and qualifying surviving spouses not later than | 21 | | July 1,
1991.
| 22 | | The amendment, renewal or extension of any such contract in | 23 | | a form other
than a policy of group insurance policy shall be | 24 | | deemed the formation of a
new contract for the purposes of this | 25 | | Section.
| 26 | | (d) This Section shall not limit the exercise of any |
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| 1 | | conversion
privileges available under Section 367e.
| 2 | | (Source: P.A. 86-1444; 87-435.)".
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