Full Text of SB0043 96th General Assembly
SB0043enr 96TH GENERAL ASSEMBLY
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SB0043 Enrolled |
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LRB096 03898 RLC 13933 b |
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| AN ACT concerning employment.
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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 Illinois Pension Code is amended by changing | 5 |
| Section 22-101B as follows: | 6 |
| (40 ILCS 5/22-101B)
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| Sec. 22-101B. Health Care Benefits. | 8 |
| (a) The Chicago Transit Authority (hereinafter referred to | 9 |
| in this Section as the "Authority") shall take all actions | 10 |
| lawfully available to it to separate the funding of health care | 11 |
| benefits for retirees and their dependents and survivors from | 12 |
| the funding for its retirement system. The Authority shall | 13 |
| endeavor to achieve this separation as soon as possible, and in | 14 |
| any event no later than July 1, 2009. | 15 |
| (b) Effective 90 days after the effective date of this | 16 |
| amendatory Act of the 95th General Assembly, a Retiree Health | 17 |
| Care Trust is established for the purpose of providing health | 18 |
| care benefits to eligible retirees and their dependents and | 19 |
| survivors in accordance with the terms and conditions set forth | 20 |
| in this Section 22-101B. The Retiree Health Care Trust shall be | 21 |
| solely responsible for providing health care benefits to | 22 |
| eligible retirees and their dependents and survivors upon the | 23 |
| exhaustion of the account established by the Retirement Plan |
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SB0043 Enrolled |
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LRB096 03898 RLC 13933 b |
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| for Chicago Transit Authority Employees pursuant to Section | 2 |
| 401(h) of the Internal Revenue Code, but no earlier than | 3 |
| January 1, 2009 and no later than July 1, 2009 by no later than | 4 |
| July 1, 2009, but no earlier than January 1, 2009 .
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| (1) The Board of Trustees shall consist of 7 members | 6 |
| appointed as follows: (i) 3 trustees shall be appointed by | 7 |
| the Chicago Transit Board; (ii) one trustee shall be | 8 |
| appointed by an organization representing the highest | 9 |
| number of Chicago Transit Authority participants; (iii) | 10 |
| one trustee shall be appointed by an organization | 11 |
| representing the second-highest number of Chicago Transit | 12 |
| Authority participants; (iv) one trustee shall be | 13 |
| appointed by the recognized coalition representatives of | 14 |
| participants who are not represented by an organization | 15 |
| with the highest or second-highest number of Chicago | 16 |
| Transit Authority participants; and (v) one trustee shall | 17 |
| be selected by the Regional Transportation Authority Board | 18 |
| of Directors, and the trustee shall be a professional | 19 |
| fiduciary who has experience in the area of collectively | 20 |
| bargained retiree health plans. Trustees shall serve until | 21 |
| a successor has been appointed and qualified, or until | 22 |
| resignation, death, incapacity, or disqualification.
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| Any person appointed as a trustee of the board shall | 24 |
| qualify by taking an oath of office that he or she will | 25 |
| diligently and honestly administer the affairs of the | 26 |
| system, and will not knowingly violate or willfully permit |
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SB0043 Enrolled |
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LRB096 03898 RLC 13933 b |
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| the violation of any of the provisions of law applicable to | 2 |
| the Plan, including Sections 1-109, 1-109.1, 1-109.2, | 3 |
| 1-110, 1-111, 1-114, and 1-115 of Article 1 of the Illinois | 4 |
| Pension Code.
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| Each trustee shall cast individual votes, and a | 6 |
| majority vote shall be final and binding upon all | 7 |
| interested parties, provided that the Board of Trustees may | 8 |
| require a supermajority vote with respect to the investment | 9 |
| of the assets of the Retiree Health Care Trust, and may set | 10 |
| forth that requirement in the trust agreement or by-laws of | 11 |
| the Board of Trustees. Each trustee shall have the rights, | 12 |
| privileges, authority and obligations as are usual and | 13 |
| customary for such fiduciaries.
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| (2) The Board of Trustees shall establish and | 15 |
| administer a health care benefit program for eligible | 16 |
| retirees and their dependents and survivors. Any The health | 17 |
| care benefit program established by the Board of Trustees | 18 |
| for eligible retirees and their dependents and survivors | 19 |
| effective on or after July 1, 2009 shall not contain any | 20 |
| plan which provides for more than 90% coverage for | 21 |
| in-network services or 70% coverage for out-of-network | 22 |
| services after any deductible has been paid , except that | 23 |
| coverage through a health maintenance organization ("HMO") | 24 |
| may be provided at 100% .
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| (3) The Retiree Health Care Trust shall be administered | 26 |
| by the Board of Trustees according to the following |
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LRB096 03898 RLC 13933 b |
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| requirements:
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| (i) The Board of Trustees may cause amounts on | 3 |
| deposit in the Retiree Health Care Trust to be invested | 4 |
| in those investments that are permitted investments | 5 |
| for the investment of moneys held under any one or more | 6 |
| of the pension or retirement systems of the State, any | 7 |
| unit of local government or school district, or any | 8 |
| agency or instrumentality thereof. The Board, by a vote | 9 |
| of at least two-thirds of the trustees, may transfer | 10 |
| investment management to the Illinois State Board of | 11 |
| Investment, which is hereby authorized to manage these | 12 |
| investments when so requested by the Board of Trustees.
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| (ii) The Board of Trustees shall establish and | 14 |
| maintain an appropriate funding reserve level which | 15 |
| shall not be less than the amount of incurred and | 16 |
| unreported claims plus 12 months of expected claims and | 17 |
| administrative expenses.
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| (iii) The Board of Trustees shall make an annual | 19 |
| assessment of the funding levels of the Retiree Health | 20 |
| Care Trust and shall submit a report to the Auditor | 21 |
| General at least 90 days prior to the end of the fiscal | 22 |
| year. The report shall provide the following: | 23 |
| (A) the actuarial present value of projected | 24 |
| benefits expected to be paid to current and future | 25 |
| retirees and their dependents and survivors; | 26 |
| (B) the actuarial present value of projected |
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LRB096 03898 RLC 13933 b |
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| contributions and trust income plus assets; | 2 |
| (C) the reserve required by subsection | 3 |
| (b)(3)(ii); and | 4 |
| (D) an assessment of whether the actuarial | 5 |
| present value of projected benefits expected to be | 6 |
| paid to current and future retirees and their | 7 |
| dependents and survivors exceeds or is less than | 8 |
| the actuarial present value of projected | 9 |
| contributions and trust income plus assets in | 10 |
| excess of the reserve required by subsection | 11 |
| (b)(3)(ii). | 12 |
| If the actuarial present value of projected | 13 |
| benefits expected to be paid to current and future | 14 |
| retirees and their dependents and survivors exceeds | 15 |
| the actuarial present value of projected contributions | 16 |
| and trust income plus assets in excess of the reserve | 17 |
| required by subsection (b)(3)(ii), then the report | 18 |
| shall provide a plan , to be implemented over a period | 19 |
| of not more than 10 years from each valuation date, | 20 |
| which would make the actuarial present value of | 21 |
| projected contributions and trust income plus assets | 22 |
| equal to or exceed the actuarial present value of | 23 |
| projected benefits expected to be paid to current and | 24 |
| future retirees and their dependents and survivors. | 25 |
| The plan may consist of increases in employee, retiree, | 26 |
| dependent, or survivor contribution levels, decreases |
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| in benefit levels, or other plan changes or any | 2 |
| combination thereof both, which is projected to cure | 3 |
| the shortfall over a period of not more than 10 years . | 4 |
| If the actuarial present value of projected benefits | 5 |
| expected to be paid to current and future retirees and | 6 |
| their dependents and survivors is less than the | 7 |
| actuarial present value of projected contributions and | 8 |
| trust income plus assets in excess of the reserve | 9 |
| required by subsection (b)(3)(ii), then the report may | 10 |
| provide a plan of decreases in employee, retiree, | 11 |
| dependent, or survivor contribution levels, increases | 12 |
| in benefit levels, or other plan changes, or any | 13 |
| combination thereof both , to the extent of the surplus. | 14 |
| (iv) The Auditor General shall review the report | 15 |
| and plan provided in subsection (b)(3)(iii) and issue a | 16 |
| determination within 90 days after receiving the | 17 |
| report and plan, with a copy of such determination | 18 |
| provided to the General Assembly and the Regional | 19 |
| Transportation Authority, as follows: | 20 |
| (A) In the event of a projected shortfall, if | 21 |
| the Auditor General determines that the | 22 |
| assumptions stated in the report are not | 23 |
| unreasonable in the aggregate and that the plan of | 24 |
| increases in employee, retiree, dependent, or | 25 |
| survivor contribution levels, decreases in benefit | 26 |
| levels, or other plan changes, or any combination |
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LRB096 03898 RLC 13933 b |
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| thereof, to be implemented over a period of not | 2 |
| more than 10 years from each valuation date both , | 3 |
| is reasonably projected to make the actuarial | 4 |
| present value of projected contributions and trust | 5 |
| income plus assets equal to or in excess of the | 6 |
| actuarial present value of projected benefits | 7 |
| expected to be paid to current and future retirees | 8 |
| and their dependents and survivors cure the | 9 |
| shortfall over a period of not more than 10 years , | 10 |
| then the Board of Trustees shall implement the | 11 |
| plan. If the Auditor General determines that the | 12 |
| assumptions stated in the report are unreasonable | 13 |
| in the aggregate, or that the plan of increases in | 14 |
| employee, retiree, dependent, or survivor | 15 |
| contribution levels, decreases in benefit levels, | 16 |
| or other plan changes to be implemented over a | 17 |
| period of not more than 10 years from each | 18 |
| valuation date both , is not reasonably projected | 19 |
| to make the actuarial present value of projected | 20 |
| contributions and trust income plus assets equal | 21 |
| to or in excess of the actuarial present value of | 22 |
| projected benefits expected to be paid to current | 23 |
| and future retirees and their dependents and | 24 |
| survivors cure the shortfall over a period of not | 25 |
| more than 10 years , then the Board of Trustees | 26 |
| shall not implement the plan, the Auditor General |
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LRB096 03898 RLC 13933 b |
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| shall explain the basis for such determination to | 2 |
| the Board of Trustees, and the Auditor General may | 3 |
| make recommendations as to an alternative report | 4 |
| and plan. | 5 |
| (B) In the event of a projected surplus, if the | 6 |
| Auditor General determines that the assumptions | 7 |
| stated in the report are not unreasonable in the | 8 |
| aggregate and that the plan of decreases in | 9 |
| employee, retiree, dependent, or survivor | 10 |
| contribution levels, increases in benefit levels, | 11 |
| or both, is not unreasonable in the aggregate, then | 12 |
| the Board of Trustees shall implement the plan. If | 13 |
| the Auditor General determines that the | 14 |
| assumptions stated in the report are unreasonable | 15 |
| in the aggregate, or that the plan of decreases in | 16 |
| employee, retiree, dependent, or survivor | 17 |
| contribution levels, increases in benefit levels, | 18 |
| or both, is unreasonable in the aggregate, then the | 19 |
| Board of Trustees shall not implement the plan, the | 20 |
| Auditor General shall explain the basis for such | 21 |
| determination to the Board of Trustees, and the | 22 |
| Auditor General may make recommendations as to an | 23 |
| alternative report and plan. | 24 |
| (C) The Board of Trustees shall submit an | 25 |
| alternative report and plan within 45 days after | 26 |
| receiving a rejection determination by the Auditor |
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SB0043 Enrolled |
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LRB096 03898 RLC 13933 b |
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| General. A determination by the Auditor General on | 2 |
| any alternative report and plan submitted by the | 3 |
| Board of Trustees shall be made within 90 days | 4 |
| after receiving the alternative report and plan, | 5 |
| and shall be accepted or rejected according to the | 6 |
| requirements of this subsection (b)(3)(iv). The | 7 |
| Board of Trustees shall continue to submit | 8 |
| alternative reports and plans to the Auditor | 9 |
| General, as necessary, until a favorable | 10 |
| determination is made by the Auditor General.
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| (4) For any retiree who first retires effective on or | 12 |
| after January 18, 2008, to be eligible for retiree health | 13 |
| care benefits upon retirement, the retiree must be at least | 14 |
| 55 years of age, retire with 10 or more years of continuous | 15 |
| service and satisfy the preconditions established by | 16 |
| Public Act 95-708 in addition to any rules or regulations | 17 |
| promulgated by the Board of Trustees. Notwithstanding the | 18 |
| foregoing, any retiree hired on or before September 5, 2001 | 19 |
| who retires retired prior to the effective date of this | 20 |
| amendatory Act with 25 years or more of continuous service, | 21 |
| or who retires within 90 days after the effective date of | 22 |
| this amendatory Act or by January 1, 2009, whichever is | 23 |
| later, with 25 years or more of continuous service , shall | 24 |
| be eligible for retiree health care benefits upon | 25 |
| retirement in accordance with any rules or regulations | 26 |
| adopted by the Board of Trustees; provided he or she |
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SB0043 Enrolled |
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LRB096 03898 RLC 13933 b |
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| retires prior to the full execution of the successor | 2 |
| collective bargaining agreement to the collective | 3 |
| bargaining agreement that became effective January 1, 2007 | 4 |
| between the Authority and the organizations representing | 5 |
| the highest and second-highest number of Chicago Transit | 6 |
| Authority participants . This paragraph (4) shall not apply | 7 |
| to a disability allowance.
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| (5) Effective January 1, 2009, the aggregate amount of | 9 |
| retiree, dependent and survivor contributions to the cost | 10 |
| of their health care benefits shall not exceed more than | 11 |
| 45% of the total cost of such benefits. The Board of | 12 |
| Trustees shall have the discretion to provide different | 13 |
| contribution levels for retirees, dependents and survivors | 14 |
| based on their years of service, level of coverage or | 15 |
| Medicare eligibility, provided that the total contribution | 16 |
| from all retirees, dependents, and survivors shall be not | 17 |
| more than 45% of the total cost of such benefits. The term | 18 |
| "total cost of such benefits" for purposes of this | 19 |
| subsection shall be the total amount expended by the | 20 |
| retiree health benefit program in the prior plan year, as | 21 |
| calculated and certified in writing by the Retiree Health | 22 |
| Care Trust's enrolled actuary to be appointed and paid for | 23 |
| by the Board of Trustees.
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| (6) Effective January 18, 2008, all employees of the | 25 |
| Authority shall contribute to the Retiree Health Care Trust | 26 |
| in an amount not less than 3% of compensation.
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SB0043 Enrolled |
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LRB096 03898 RLC 13933 b |
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| (7) No earlier than January 1, 2009 and no later than | 2 |
| July 1, 2009 as the Retiree Health Care Trust becomes | 3 |
| solely responsible for providing health care benefits to | 4 |
| eligible retirees and their dependents and survivors in | 5 |
| accordance with subsection (b) of this Section 22-101B, the | 6 |
| Authority shall not have any obligation to provide health | 7 |
| care to current or future retirees and their dependents or | 8 |
| survivors. Employees, retirees, dependents, and survivors | 9 |
| who are required to make contributions to the Retiree | 10 |
| Health Care Trust shall make contributions at the level set | 11 |
| by the Board of Trustees pursuant to the requirements of | 12 |
| this Section 22-101B.
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| (Source: P.A. 95-708, eff. 1-18-08; 95-906, eff. 8-26-08.) | 14 |
| Section 90. The State Mandates Act is amended by adding | 15 |
| Section 8.34 as follows: | 16 |
| (30 ILCS 805/8.34 new) | 17 |
| Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 | 18 |
| of this Act, no reimbursement by the State is required for the | 19 |
| implementation of any mandate created by this amendatory Act of | 20 |
| the 96th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.
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