Full Text of SB3002 093rd General Assembly
SB3002eng 93RD GENERAL ASSEMBLY
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LRB093 19862 LRD 45605 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The State Employees Group Insurance Act of 1971 | 5 |
| is amended by changing Sections 6.5 and 6.6 as follows:
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| (5 ILCS 375/6.5)
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| (Section scheduled to be repealed on July 1, 2004)
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| Sec. 6.5. Health benefits for TRS benefit recipients and | 9 |
| TRS dependent
beneficiaries.
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| (a) Purpose. It is the purpose of this amendatory Act of | 11 |
| 1995 to transfer
the administration of the program of health | 12 |
| benefits established for benefit
recipients and their | 13 |
| dependent beneficiaries under Article 16 of the Illinois
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| Pension Code to the Department of Central Management Services.
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| (b) Transition provisions. The Board of Trustees of the | 16 |
| Teachers'
Retirement System shall continue to administer the | 17 |
| health benefit program
established under Article 16 of the | 18 |
| Illinois Pension Code through December 31,
1995. Beginning | 19 |
| January 1, 1996, the Department of Central Management Services
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| shall be responsible for administering a program of health | 21 |
| benefits for TRS
benefit recipients and TRS dependent | 22 |
| beneficiaries under this Section.
The Department of Central | 23 |
| Management Services and the Teachers' Retirement
System shall | 24 |
| cooperate in this endeavor and shall coordinate their | 25 |
| activities
so as to ensure a smooth transition and | 26 |
| uninterrupted health benefit coverage.
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| (c) Eligibility. All persons who were enrolled in the | 28 |
| Article 16 program at
the time of the transfer shall be | 29 |
| eligible to participate in the program
established under this | 30 |
| Section without any interruption or delay in coverage
or | 31 |
| limitation as to pre-existing medical conditions. Eligibility | 32 |
| to
participate shall be determined by the Teachers' Retirement |
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| System.
Eligibility information shall be communicated to the | 2 |
| Department of Central
Management Services in a format | 3 |
| acceptable to the Department.
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| A TRS dependent beneficiary who is an unmarried child age | 5 |
| 19 or over and
mentally or physically disabled
handicapped does | 6 |
| not become ineligible to participate
by reason of (i) becoming | 7 |
| ineligible to be claimed as a dependent for Illinois
or federal | 8 |
| income tax purposes or (ii) receiving earned income, so long as
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| those earnings are insufficient for the child to be fully | 10 |
| self-sufficient.
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| (d) Coverage. The level of health benefits provided under | 12 |
| this Section
shall be similar to the level of benefits provided | 13 |
| by the
program previously established under Article 16 of the | 14 |
| Illinois Pension Code.
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| Group life insurance benefits are not included in the | 16 |
| benefits
to be provided to TRS benefit recipients and TRS | 17 |
| dependent beneficiaries under
this Act.
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| The program of health benefits under this Section may | 19 |
| include any or all of
the benefit limitations, including but | 20 |
| not limited to a reduction in benefits
based on eligibility for | 21 |
| federal medicare benefits, that are provided under
subsection | 22 |
| (a) of Section 6 of this Act for other health benefit programs | 23 |
| under
this Act.
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| (e) Insurance rates and premiums. The Director shall | 25 |
| determine the
insurance rates and premiums for TRS benefit | 26 |
| recipients and TRS dependent
beneficiaries,
and shall present | 27 |
| to the Teachers' Retirement System of
the State of Illinois, by | 28 |
| April 15 of each calendar year, the rate-setting
methodology | 29 |
| (including but not limited to utilization levels and costs) | 30 |
| used
to determine the amount of the health care premiums.
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| For Fiscal Year 1996, the premium shall be equal to the | 32 |
| premium actually
charged in Fiscal Year 1995; in subsequent | 33 |
| years, the premium shall
never be lower than the premium | 34 |
| charged in Fiscal Year 1995. | 35 |
| For Fiscal Year
2003, the premium shall not exceed 110% | 36 |
| of the premium actually charged in
Fiscal Year 2002. |
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| For Fiscal Year 2004, the premium shall not exceed 112% | 2 |
| of
the premium actually charged in Fiscal Year 2003.
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| For Fiscal Year 2005, the premium shall not exceed a | 4 |
| weighted average of 106.6% of
the premium actually charged | 5 |
| in Fiscal Year 2004.
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| For Fiscal Year 2006, the premium shall not exceed a | 7 |
| weighted average of 109.1% of
the premium actually charged | 8 |
| in Fiscal Year 2005.
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| For Fiscal Year 2007, the premium shall not exceed a | 10 |
| weighted average of 103.9% of
the premium actually charged | 11 |
| in Fiscal Year 2006.
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| For Fiscal Year 2008 and thereafter, the premium in | 13 |
| each fiscal year shall not exceed 105% of
the premium | 14 |
| actually charged in the previous fiscal year.
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| Rates and premiums may be based in part on age and | 16 |
| eligibility for federal
medicare coverage. However, the cost of | 17 |
| participation for a TRS dependent
beneficiary who is an | 18 |
| unmarried child age 19 or over and mentally or physically
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| disabled
handicapped shall not exceed the cost for a TRS | 20 |
| dependent beneficiary who is
an unmarried child under age 19 | 21 |
| and participates in the same major medical or
managed care | 22 |
| program.
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| The cost of health benefits under the program shall be paid | 24 |
| as follows:
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| (1) For a TRS benefit recipient selecting a managed | 26 |
| care program, up to
75% of the total insurance rate shall | 27 |
| be paid from the Teacher Health Insurance
Security Fund. | 28 |
| Effective with Fiscal Year 2007 and thereafter, for a TRS | 29 |
| benefit recipient selecting a managed care program, 75% of | 30 |
| the total insurance rate shall be paid from the Teacher | 31 |
| Health Insurance
Security Fund.
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| (2) For a TRS benefit recipient selecting the major | 33 |
| medical coverage
program, up to 50% of the total insurance | 34 |
| rate shall be paid from the Teacher
Health Insurance | 35 |
| Security Fund if a managed care program is accessible, as
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| determined by the Teachers' Retirement System. Effective |
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| with Fiscal Year 2007 and thereafter, for a TRS benefit | 2 |
| recipient selecting the major medical coverage
program, | 3 |
| 50% of the total insurance rate shall be paid from the | 4 |
| Teacher
Health Insurance Security Fund if a managed care | 5 |
| program is accessible, as
determined by the Department of | 6 |
| Central Management Services.
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| (3) For a TRS benefit recipient selecting the major | 8 |
| medical coverage
program, up to 75% of the total insurance | 9 |
| rate shall be paid from the Teacher
Health Insurance | 10 |
| Security Fund if a managed care program is not accessible, | 11 |
| as
determined by the Teachers' Retirement System. | 12 |
| Effective with Fiscal Year 2007 and thereafter, for a TRS | 13 |
| benefit recipient selecting the major medical coverage
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| program, 75% of the total insurance rate shall be paid from | 15 |
| the Teacher
Health Insurance Security Fund if a managed | 16 |
| care program is not accessible, as
determined by the | 17 |
| Department of Central Management Services.
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| (3.1) For a TRS dependent beneficiary who is Medicare | 19 |
| primary and enrolled in a managed care plan, or the major | 20 |
| medical coverage program if a managed care plan is not | 21 |
| available, 25% of the total insurance rate shall be paid | 22 |
| from the Teacher Health Security Fund as determined by the | 23 |
| Department of Central Management Services. For the purpose | 24 |
| of this item (3.1), the term "TRS dependent beneficiary who | 25 |
| is Medicare primary" means a TRS dependent beneficiary who | 26 |
| is retired or does not have current employment status and | 27 |
| is participating in Medicare Parts A and B.
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| (4) Except as otherwise provided in item (3.1), the
The
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| balance of the rate of insurance, including the entire | 30 |
| premium of
any coverage for TRS dependent beneficiaries | 31 |
| that has been elected, shall be
paid
by deductions | 32 |
| authorized by the TRS benefit recipient to be withheld from | 33 |
| his
or her monthly annuity or benefit payment from the | 34 |
| Teachers' Retirement System;
except that (i) if the balance | 35 |
| of the cost of coverage exceeds the amount of
the monthly | 36 |
| annuity or benefit payment, the difference shall be paid |
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| directly
to the Teachers' Retirement System by the TRS | 2 |
| benefit recipient, and (ii) all
or part of the balance of | 3 |
| the cost of coverage may, at the school board's
option, be | 4 |
| paid to the Teachers' Retirement System by the school board | 5 |
| of the
school district from which the TRS benefit recipient | 6 |
| retired, in accordance
with Section 10-22.3b of the School | 7 |
| Code. The Teachers' Retirement System
shall promptly | 8 |
| deposit all moneys withheld by or paid to it under this
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| subdivision (e)(4) into the Teacher Health Insurance | 10 |
| Security Fund. These
moneys shall not be considered assets | 11 |
| of the Retirement System.
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| (f) Financing. Beginning July 1, 1995, all revenues arising | 13 |
| from the
administration of the health benefit programs | 14 |
| established under Article 16 of
the Illinois Pension Code or | 15 |
| this Section shall be deposited into the
Teacher Health | 16 |
| Insurance Security Fund, which is hereby created as a
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| nonappropriated trust fund to be held outside the State | 18 |
| Treasury, with the
State Treasurer as custodian. Any interest | 19 |
| earned on moneys in the Teacher
Health Insurance Security Fund | 20 |
| shall be deposited into the Fund.
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| Moneys in the Teacher Health Insurance Security
Fund shall | 22 |
| be used only to pay the costs of the health benefit program
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| established under this Section, including associated | 24 |
| administrative costs, and
the costs associated with the health | 25 |
| benefit program established under Article
16 of the Illinois | 26 |
| Pension Code, as authorized in this Section. Beginning
July 1, | 27 |
| 1995, the Department of Central Management Services may make
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| expenditures from the Teacher Health Insurance Security Fund | 29 |
| for those costs.
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| After other funds authorized for the payment of the costs | 31 |
| of the health
benefit program established under Article 16 of | 32 |
| the Illinois Pension Code are
exhausted and until January 1, | 33 |
| 1996 (or such later date as may be agreed upon
by the Director | 34 |
| of Central Management Services and the Secretary of the
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| Teachers' Retirement System), the Secretary of the Teachers' | 36 |
| Retirement System
may make expenditures from the Teacher Health |
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| Insurance Security Fund as
necessary to pay up to 75% of the | 2 |
| cost of providing health coverage to eligible
benefit | 3 |
| recipients (as defined in Sections 16-153.1 and 16-153.3 of the
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| Illinois Pension Code) who are enrolled in the Article 16 | 5 |
| health benefit
program and to facilitate the transfer of | 6 |
| administration of the health benefit
program to the Department | 7 |
| of Central Management Services.
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| (g) Contract for benefits. The Director shall by contract, | 9 |
| self-insurance,
or otherwise make available the program of | 10 |
| health benefits for TRS benefit
recipients and their TRS | 11 |
| dependent beneficiaries that is provided for in this
Section. | 12 |
| The contract or other arrangement for the provision of these | 13 |
| health
benefits shall be on terms deemed by the Director to be | 14 |
| in the best interest of
the State of Illinois and the TRS | 15 |
| benefit recipients based on, but not limited
to, such criteria | 16 |
| as administrative cost, service capabilities of the carrier
or | 17 |
| other contractor, and the costs of the benefits.
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| (g-5) Committee. A Teacher Retirement Insurance Program | 19 |
| Committee shall be established, to consist of 10 persons | 20 |
| appointed by the Governor.
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| The Committee shall convene at least 4 times each year, and | 22 |
| shall consider and make recommendations on issues affecting the | 23 |
| program of health benefits provided under this
Section. | 24 |
| Recommendations of the Committee shall be based on a consensus | 25 |
| of the members of the Committee.
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| If the Teacher
Health Insurance Security Fund experiences a | 27 |
| deficit balance based upon the contribution and subsidy rates | 28 |
| established in this Section and Section 6.6 for Fiscal Year | 29 |
| 2008 or thereafter, the Committee shall make recommendations | 30 |
| for adjustments to the funding sources established under these | 31 |
| Sections. | 32 |
| (h) Continuation and termination of program. It is the | 33 |
| intention of
the General Assembly that the program of health | 34 |
| benefits provided under this
Section be maintained on an | 35 |
| ongoing, affordable basis .
through June 30, 2004.
The program | 36 |
| of health benefits provided under this Section is terminated on
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| July 1, 2004.
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| The program of health benefits provided under this Section | 3 |
| may be amended by
the State and is not intended to be a pension | 4 |
| or retirement benefit subject to
protection under Article XIII, | 5 |
| Section 5 of the Illinois Constitution.
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| (i) Repeal. (Blank).
This Section is repealed on July 1, | 7 |
| 2004.
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| (Source: P.A. 92-505, eff. 12-20-01; 92-862, eff. 1-3-03; | 9 |
| revised 1-10-03.)
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| (5 ILCS 375/6.6)
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| (Section scheduled to be repealed on July 1, 2004)
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| Sec. 6.6. Contributions to the Teacher Health Insurance | 13 |
| Security Fund.
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| (a) Beginning July 1, 1995, all active contributors of the | 15 |
| Teachers'
Retirement System (established under Article 16 of | 16 |
| the Illinois Pension Code)
who are not employees of a | 17 |
| department as defined in Section 3 of this Act
shall make | 18 |
| 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, | 21 |
| 2002, 0.65% of salary;
beginning July 1, 2003, 0.75% of salary ; | 22 |
| beginning July 1, 2005, 0.80% of salary;
beginning July 1, | 23 |
| 2007, a percentage of salary to be determined by the Department | 24 |
| of Central Management Services by rule, which in each fiscal | 25 |
| year shall not exceed 105% of the percentage of salary actually | 26 |
| required to be paid in the previous fiscal year .
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| These contributions shall be deducted by the employer and | 28 |
| paid to the System
as service agent for the Department of | 29 |
| Central Management Services. The System
may use the same | 30 |
| processes for collecting the contributions required by this
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| subsection that it uses to collect contributions received from | 32 |
| school districts
and other covered employers under Sections | 33 |
| 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 | 35 |
| 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 | 2 |
| teacher. Beginning January 1, 2002, if
the employer does not | 3 |
| directly pay the required member contribution, then the
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| employer shall reduce the member's salary by an amount equal to | 5 |
| the required
contribution and shall then pay the contribution | 6 |
| on behalf of the member.
This reduction shall not change the | 7 |
| amounts reported as creditable earnings
to the Teachers' | 8 |
| Retirement System.
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| A person who purchases optional service credit under | 10 |
| Article 16 of the
Illinois Pension Code for a period after June | 11 |
| 30, 1995 must also make a
contribution under this subsection | 12 |
| for that optional credit, at the rate
provided in subsection | 13 |
| (a), based on the salary used in
computing the optional service | 14 |
| credit, plus interest on this employee
contribution. This | 15 |
| contribution shall be collected by the System as service
agent | 16 |
| for the Department of Central Management Services. The | 17 |
| contribution
required under this subsection for the optional | 18 |
| service credit must be paid
in full before any annuity based on | 19 |
| that credit begins.
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| (a-5) Beginning January 1, 2002, every employer of a | 21 |
| teacher (other than
an employer that is a department as defined | 22 |
| in Section 3 of this Act) shall
pay an employer contribution | 23 |
| toward the cost of annuitant and survivor health
benefits. | 24 |
| These contributions shall be computed as follows:
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| (1) Beginning January 1, 2002 through June 30, 2003, | 26 |
| the employer
contribution shall be equal to 0.4% of each | 27 |
| teacher's salary.
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| (2) Beginning July 1, 2003, the employer contribution | 29 |
| shall be equal to
0.5% of each teacher's salary.
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| (3) Beginning July 1, 2005, the employer contribution | 31 |
| shall be equal to
0.6% of each teacher's salary.
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| (4) Beginning July 1, 2007, the employer contribution | 33 |
| shall be a percentage of each teacher's salary to be | 34 |
| determined by the Department of Central Management | 35 |
| Services by rule, which in each fiscal year shall not | 36 |
| 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 | 3 |
| System as service
agent for the Department of Central | 4 |
| Management Services. The System may use
the same processes for | 5 |
| collecting the contributions required by this subsection
that | 6 |
| it uses to collect contributions received from school districts | 7 |
| and other
covered employers under the Illinois Pension Code.
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| The school district or other employing unit may pay these | 9 |
| employer
contributions out of any source of funding available | 10 |
| for that purpose and
shall forward the contributions to the | 11 |
| System on the schedule established
for the payment of member | 12 |
| contributions.
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| (b) The Teachers' Retirement System shall promptly deposit | 14 |
| all moneys
collected under subsections (a) and (a-5) of this
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| Section into the Teacher Health Insurance Security Fund created | 16 |
| in Section 6.5
of this Act. The moneys collected under this | 17 |
| Section shall be used only for
the purposes authorized in | 18 |
| Section 6.5 of this Act and shall not be considered
to be | 19 |
| assets of the Teachers' Retirement System. Contributions made | 20 |
| under this
Section are not transferable to other pension funds | 21 |
| or retirement systems and
are not refundable upon termination | 22 |
| of service.
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| (c) On or before November 15 of each year, the Board of | 24 |
| Trustees of the
Teachers' Retirement System shall certify to | 25 |
| the Governor, the Director of
Central Management Services, and | 26 |
| the State Comptroller its estimate of the
total amount of | 27 |
| 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 | 29 |
| decreased or
increased each year by the amount that the actual | 30 |
| active teacher contributions
either fell short of or exceeded | 31 |
| the estimate used by the Board in making the
certification for | 32 |
| the previous fiscal year. The certification shall include
a | 33 |
| detailed explanation of the methods and information that the | 34 |
| Board relied
upon in preparing its estimate. As soon as | 35 |
| possible after the effective date
of this amendatory Act of the | 36 |
| 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 | 3 |
| month, or
as soon thereafter as may be practical, the State | 4 |
| Treasurer and the State
Comptroller shall transfer from the | 5 |
| General Revenue Fund to the Teacher Health
Insurance Security | 6 |
| 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 | 8 |
| Health Insurance
Security Fund under Section 1.3 of the State | 9 |
| Pension Funds Continuing
Appropriation Act.
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| (e) Except where otherwise specified in this Section, the | 11 |
| definitions
that apply to Article 16 of the Illinois Pension | 12 |
| Code apply to this Section.
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| (f) (Blank).
This Section is repealed on July 1, 2004.
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| (Source: P.A. 92-505, eff. 12-20-01.)
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| Section 15. The State Pension Funds Continuing | 16 |
| Appropriation Act is amended by changing Section 1.3 as | 17 |
| follows:
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| (40 ILCS 15/1.3)
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| Sec. 1.3. Appropriations for the Teacher Health Insurance | 20 |
| Security Fund.
Beginning in State fiscal year 1996, there is | 21 |
| hereby appropriated, on a
continuing annual basis, from the | 22 |
| General Revenue Fund to the State Comptroller
for deposit into | 23 |
| the Teacher Health Insurance Security Fund, an amount equal to
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| the amount certified by the Board of Trustees of the Teachers' | 25 |
| Retirement
System of Illinois under subsection (c) of Section | 26 |
| 6.6 of the State Employees
Group Insurance Act of 1971 as the | 27 |
| estimated total amount of contributions to
be paid under | 28 |
| subsection (a) of that Section 6.6 in that fiscal year. | 29 |
| In addition to any other amounts that may be appropriated | 30 |
| for this purpose, in State fiscal years 2005 through 2007, | 31 |
| there is hereby appropriated, on a
continuing annual basis, | 32 |
| from the General Revenue Fund to the State Comptroller
for | 33 |
| deposit into the Teacher Health Insurance Security Fund, an | 34 |
| amount equal to $13,000,000 in each fiscal year.
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| The
moneys appropriated under this Section 1.3 shall be | 2 |
| deposited into the Teacher
Health Insurance Security Fund and | 3 |
| used only for the purposes authorized in
Section 6.5 of the | 4 |
| State Employees Group Insurance Act of 1971.
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| (Source: P.A. 89-25, eff. 6-21-95.)
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| Section 90. The State Mandates Act is amended by adding | 7 |
| Section 8.28 as
follows:
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| (30 ILCS 805/8.28 new)
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| Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | 10 |
| of this
Act, no reimbursement by the State is required for the | 11 |
| implementation of
any mandate created by this amendatory Act of | 12 |
| the 93rd General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
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