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

SB3197sam001 102ND GENERAL ASSEMBLY

Sen. Doris Turner

Filed: 2/7/2022

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3197

2    AMENDMENT NO. ______. Amend Senate Bill 3197 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Employees Group Insurance Act of
51971 is 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

 

 

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1administration executed with the Department.
2    (b) "Annuitant" means (1) an employee who retires, or has
3retired, on or after January 1, 1966 on an immediate annuity
4under the provisions of Articles 2, 14 (including an employee
5who has elected to receive an alternative retirement
6cancellation payment under Section 14-108.5 of the Illinois
7Pension Code in lieu of an annuity or who meets the criteria
8for retirement, but in lieu of receiving an annuity under that
9Article has elected to receive an accelerated pension benefit
10payment under Section 14-147.5 of that Article), 15 (including
11an employee who has retired under the optional retirement
12program established under Section 15-158.2 or who meets the
13criteria for retirement but in lieu of receiving an annuity
14under that Article has elected to receive an accelerated
15pension benefit payment under Section 15-185.5 of the
16Article), paragraph paragraphs (2), (3), or (5) of Section
1716-106 (including an employee who meets the criteria for
18retirement, but in lieu of receiving an annuity under that
19Article has elected to receive an accelerated pension benefit
20payment under Section 16-190.5 of the Illinois Pension Code),
21or Article 18 of the Illinois Pension Code; (2) any person who
22was receiving group insurance coverage under this Act as of
23March 31, 1978 by reason of his status as an annuitant, even
24though the annuity in relation to which such coverage was
25provided is a proportional annuity based on less than the
26minimum period of service required for a retirement annuity in

 

 

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1the system involved; (3) any person not otherwise covered by
2this Act who has retired as a participating member under
3Article 2 of the Illinois Pension Code but is ineligible for
4the retirement annuity under Section 2-119 of the Illinois
5Pension Code; (4) the spouse of any person who is receiving a
6retirement annuity under Article 18 of the Illinois Pension
7Code and who is covered under a group health insurance program
8sponsored by a governmental employer other than the State of
9Illinois and who has irrevocably elected to waive his or her
10coverage under this Act and to have his or her spouse
11considered as the "annuitant" under this Act and not as a
12"dependent"; or (5) an employee who retires, or has retired,
13from a qualified position, as determined according to rules
14promulgated by the Director, under a qualified local
15government, a qualified rehabilitation facility, a qualified
16domestic violence shelter or service, or a qualified child
17advocacy center. (For definition of "retired employee", see
18(p) post).
19    (b-5) (Blank).
20    (b-6) (Blank).
21    (b-7) (Blank).
22    (c) "Carrier" means (1) an insurance company, a
23corporation organized under the Limited Health Service
24Organization Act or the Voluntary Health Services Plans Act, a
25partnership, or other nongovernmental organization, which is
26authorized to do group life or group health insurance business

 

 

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1in Illinois, or (2) the State of Illinois as a self-insurer.
2    (d) "Compensation" means salary or wages payable on a
3regular payroll by the State Treasurer on a warrant of the
4State Comptroller out of any State, trust or federal fund, or
5by the Governor of the State through a disbursing officer of
6the State out of a trust or out of federal funds, or by any
7Department out of State, trust, federal or other funds held by
8the State Treasurer or the Department, to any person for
9personal services currently performed, and ordinary or
10accidental disability benefits under Articles 2, 14, 15
11(including ordinary or accidental disability benefits under
12the optional retirement program established under Section
1315-158.2), paragraph paragraphs (2), (3), or (5) of Section
1416-106, or Article 18 of the Illinois Pension Code, for
15disability incurred after January 1, 1966, or benefits payable
16under the Workers' Compensation or Occupational Diseases Act
17or benefits payable under a sick pay plan established in
18accordance with Section 36 of the State Finance Act.
19"Compensation" also means salary or wages paid to an employee
20of any qualified local government, qualified rehabilitation
21facility, qualified domestic violence shelter or service, or
22qualified child advocacy center.
23    (e) "Commission" means the State Employees Group Insurance
24Advisory Commission authorized by this Act. Commencing July 1,
251984, "Commission" as used in this Act means the Commission on
26Government Forecasting and Accountability as established by

 

 

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1the Legislative Commission Reorganization Act of 1984.
2    (f) "Contributory", when referred to as contributory
3coverage, shall mean optional coverages or benefits elected by
4the member toward the cost of which such member makes
5contribution, or which are funded in whole or in part through
6the acceptance of a reduction in earnings or the foregoing of
7an increase in earnings by an employee, as distinguished from
8noncontributory coverage or benefits which are paid entirely
9by the State of Illinois without reduction of the member's
10salary.
11    (g) "Department" means any department, institution, board,
12commission, officer, court or any agency of the State
13government receiving appropriations and having power to
14certify payrolls to the Comptroller authorizing payments of
15salary and wages against such appropriations as are made by
16the General Assembly from any State fund, or against trust
17funds held by the State Treasurer and includes boards of
18trustees of the retirement systems created by Articles 2, 14,
1915, 16, and 18 of the Illinois Pension Code. "Department" also
20includes the Illinois Comprehensive Health Insurance Board,
21the Board of Examiners established under the Illinois Public
22Accounting Act, and the Illinois Finance Authority.
23    (h) "Dependent", when the term is used in the context of
24the health and life plan, means a member's spouse and any child
25(1) from birth to age 26 including an adopted child, a child
26who lives with the member from the time of the placement for

 

 

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

 

 

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

 

 

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1Articles 2, 14, 15 (including ordinary or accidental
2disability benefits under the optional retirement program
3established under Section 15-158.2), paragraph paragraphs (2),
4(3), or (5) of Section 16-106, or Article 18 of the Illinois
5Pension Code, for disability incurred after January 1, 1966,
6(2) receives total permanent or total temporary disability
7under the Workers' Compensation Act or Occupational Disease
8Act as a result of injuries sustained or illness contracted in
9the course of employment with the State of Illinois, or (3) is
10not otherwise covered under this Act and has retired as a
11participating member under Article 2 of the Illinois Pension
12Code but is ineligible for the retirement annuity under
13Section 2-119 of the Illinois Pension Code. However, a person
14who satisfies the criteria of the foregoing definition of
15"employee" except that such person is made ineligible to
16participate in the State Universities Retirement System by
17clause (4) of subsection (a) of Section 15-107 of the Illinois
18Pension Code is also an "employee" for the purposes of this
19Act. "Employee" also includes any person receiving or eligible
20for benefits under a sick pay plan established in accordance
21with Section 36 of the State Finance Act. "Employee" also
22includes (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
26the service 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 January 13, 2012 (the effective date of Public Act
997-668), the individual must meet the minimum vesting
10requirements of the applicable retirement system in order to
11be eligible for group insurance benefits under that system. In
12the case of a survivor who is not entitled to occupational
13death benefits pursuant to an applicable retirement system,
14and who first becomes a survivor on or after January 13, 2012
15(the effective date of Public Act 97-668), the deceased
16employee, annuitant, or retired employee upon whom the annuity
17is based must have been eligible to participate in the group
18insurance system under the applicable retirement system in
19order for the survivor to be eligible for group insurance
20benefits under that system.
21    In the case of a survivor who is entitled to occupational
22death benefits pursuant to the deceased employee's applicable
23retirement system and first becomes a survivor on or after
24January 1, 2022, the survivor is eligible for group health
25insurance benefits regardless of the deceased employee's
26minimum vesting requirements under the applicable retirement

 

 

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

 

 

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1    (n) "Program" means the group life insurance, health
2benefits and other employee benefits designed and contracted
3for by the Director under this Act.
4    (o) "Health plan" means a health benefits program offered
5by the State of Illinois for persons eligible for the plan.
6    (p) "Retired employee" means any person who would be an
7annuitant as that term is defined herein but for the fact that
8such person retired prior to January 1, 1966. Such term also
9includes any person formerly employed by the University of
10Illinois in the Cooperative Extension Service who would be an
11annuitant but for the fact that such person was made
12ineligible to participate in the State Universities Retirement
13System by clause (4) of subsection (a) of Section 15-107 of the
14Illinois Pension Code.
15    (q) "Survivor" means a person receiving an annuity as a
16survivor of an employee or of an annuitant. "Survivor" also
17includes: (1) the surviving dependent of a person who
18satisfies the definition of "employee" except that such person
19is made ineligible to participate in the State Universities
20Retirement System by clause (4) of subsection (a) of Section
2115-107 of the Illinois Pension Code; (2) the surviving
22dependent of any person formerly employed by the University of
23Illinois in the Cooperative Extension Service who would be an
24annuitant except for the fact that such person was made
25ineligible to participate in the State Universities Retirement
26System by clause (4) of subsection (a) of Section 15-107 of the

 

 

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1Illinois Pension Code; (3) the surviving dependent of a person
2who was an annuitant under this Act by virtue of receiving an
3alternative retirement cancellation payment under Section
414-108.5 of the Illinois Pension Code; and (4) a person who
5would be receiving an annuity as a survivor of an annuitant
6except that the annuitant elected on or after June 4, 2018 to
7receive an accelerated pension benefit payment under Section
814-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
9in lieu of receiving an annuity.
10    (q-2) "SERS" means the State Employees' Retirement System
11of Illinois, created under Article 14 of the Illinois Pension
12Code.
13    (q-3) "SURS" means the State Universities Retirement
14System, created under Article 15 of the Illinois Pension Code.
15    (q-4) "TRS" means the Teachers' Retirement System of the
16State of Illinois, created under Article 16 of the Illinois
17Pension Code.
18    (q-5) (Blank).
19    (q-6) (Blank).
20    (q-7) (Blank).
21    (r) "Medical services" means the services provided within
22the scope of their licenses by practitioners in all categories
23licensed under the Medical Practice Act of 1987.
24    (s) "Unit of local government" means any county,
25municipality, township, school district (including a
26combination of school districts under the Intergovernmental

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    College Act) and was eligible to participate in a group
2    health benefit plan as an employee during the time of
3    employment with a community college district (other than a
4    community college district subject to Article VII of the
5    Public Community College Act) or an association of
6    community college boards, or (ii) is the survivor of a
7    person described in item (i).
8    (aa) "Community college dependent beneficiary" means a
9person who:
10        (1) is not a "member" or "dependent" as defined in
11    this Section; and
12        (2) is a community college benefit recipient's: (A)
13    spouse, (B) dependent parent who is receiving at least
14    half of his or her support from the community college
15    benefit recipient, or (C) natural, step, adjudicated, or
16    adopted child who is (i) under age 26, or (ii) age 19 or
17    over and has a mental or physical disability from a cause
18    originating prior to the age of 19 (age 26 if enrolled as
19    an adult child).
20    "Community college dependent beneficiary" does not
21include, as indicated under paragraph (2) of this subsection
22(aa), a dependent of the survivor of a community college
23benefit recipient who first becomes a dependent of a survivor
24of a community college benefit recipient on or after January
2513, 2012 (the effective date of Public Act 97-668) unless that
26dependent would have been eligible for coverage as a dependent

 

 

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1of the deceased community college benefit recipient upon whom
2the survivor annuity is based.
3    (bb) "Qualified child advocacy center" means any Illinois
4child advocacy center and its administrative offices funded by
5the Department of Children and Family Services, as defined by
6the Children's Advocacy Center Act (55 ILCS 80/), approved by
7the Director and participating in a program created under
8subsection (n) of Section 10.
9    (cc) "Placement for adoption" means the assumption and
10retention by a member of a legal obligation for total or
11partial support of a child in anticipation of adoption of the
12child. The child's placement with the member terminates upon
13the termination of such legal obligation.
14(Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21;
15revised 12-2-21.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".