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90_HB1296sam002
LRB9004157EGfgam03
1 AMENDMENT TO HOUSE BILL 1296
2 AMENDMENT NO. . Amend House Bill 1296, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT relating to benefits for certain public
5 employees, amending named Acts."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The State Employees Group Insurance Act of
9 1971 is amended by changing Sections 3 and 10 as follows:
10 (5 ILCS 375/3) (from Ch. 127, par. 523)
11 Sec. 3. Definitions. Unless the context otherwise
12 requires, the following words and phrases as used in this Act
13 shall have the following meanings. The Department may define
14 these and other words and phrases separately for the purpose
15 of implementing specific programs providing benefits under
16 this Act.
17 (a) "Administrative service organization" means any
18 person, firm or corporation experienced in the handling of
19 claims which is fully qualified, financially sound and
20 capable of meeting the service requirements of a contract of
21 administration executed with the Department.
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1 (b) "Annuitant" means (1) an employee who retires, or
2 has retired, on or after January 1, 1966 on an immediate
3 annuity under the provisions of Articles 2, 14, 15 (including
4 an employee who has retired under the optional retirement
5 program established under Section 15-158.2), paragraphs (b)
6 or (c) of Section 16-106, or Article 18 of the Illinois
7 Pension Code; (2) any person who was receiving group
8 insurance coverage under this Act as of March 31, 1978 by
9 reason of his status as an annuitant, even though the annuity
10 in relation to which such coverage was provided is a
11 proportional annuity based on less than the minimum period of
12 service required for a retirement annuity in the system
13 involved; (3) any person not otherwise covered by this Act
14 who has retired as a participating member under Article 2 of
15 the Illinois Pension Code but is ineligible for the
16 retirement annuity under Section 2-119 of the Illinois
17 Pension Code; (4) the spouse of any person who is receiving a
18 retirement annuity under Article 18 of the Illinois Pension
19 Code and who is covered under a group health insurance
20 program sponsored by a governmental employer other than the
21 State of Illinois and who has irrevocably elected to waive
22 his or her coverage under this Act and to have his or her
23 spouse considered as the "annuitant" under this Act and not
24 as a "dependent"; or (5) an employee who retires, or has
25 retired, from a qualified position, as determined according
26 to rules promulgated by the Director, under a qualified local
27 government or a qualified rehabilitation facility or a
28 qualified domestic violence shelter or service. (For
29 definition of "retired employee", see (p) post).
30 (b-5) "New SERS annuitant" means a person who, on or
31 after January 1, 1998, becomes an annuitant, as defined in
32 subsection (b), by virtue of beginning to receive a
33 retirement annuity under Article 14 of the Illinois Pension
34 Code, and is eligible to participate in the basic program of
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1 group health benefits provided for annuitants under this Act.
2 (b-6) "New SURS annuitant" means a person who (1), on or
3 after January 1, 1998, becomes an annuitant, as defined in
4 subsection (b), by virtue of beginning to receive a
5 retirement annuity under Article 15 of the Illinois Pension
6 Code, (2) has not made the election authorized under Section
7 15-135.1 of the Illinois Pension Code, and (3) is eligible to
8 participate in the basic program of group health benefits
9 provided for annuitants under this Act.
10 (c) "Carrier" means (1) an insurance company, a
11 corporation organized under the Limited Health Service
12 Organization Act or the Voluntary Health Services Plan Act, a
13 partnership, or other nongovernmental organization, which is
14 authorized to do group life or group health insurance
15 business in Illinois, or (2) the State of Illinois as a
16 self-insurer.
17 (d) "Compensation" means salary or wages payable on a
18 regular payroll by the State Treasurer on a warrant of the
19 State Comptroller out of any State, trust or federal fund, or
20 by the Governor of the State through a disbursing officer of
21 the State out of a trust or out of federal funds, or by any
22 Department out of State, trust, federal or other funds held
23 by the State Treasurer or the Department, to any person for
24 personal services currently performed, and ordinary or
25 accidental disability benefits under Articles 2, 14, 15
26 (including ordinary or accidental disability benefits under
27 the optional retirement program established under Section
28 15-158.2), paragraphs (b) or (c) of Section 16-106, or
29 Article 18 of the Illinois Pension Code, for disability
30 incurred after January 1, 1966, or benefits payable under the
31 Workers' Compensation or Occupational Diseases Act or
32 benefits payable under a sick pay plan established in
33 accordance with Section 36 of the State Finance Act.
34 "Compensation" also means salary or wages paid to an employee
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1 of any qualified local government or qualified rehabilitation
2 facility or a qualified domestic violence shelter or service.
3 (e) "Commission" means the State Employees Group
4 Insurance Advisory Commission authorized by this Act.
5 Commencing July 1, 1984, "Commission" as used in this Act
6 means the Illinois Economic and Fiscal Commission as
7 established by the Legislative Commission Reorganization Act
8 of 1984.
9 (f) "Contributory", when referred to as contributory
10 coverage, shall mean optional coverages or benefits elected
11 by the member toward the cost of which such member makes
12 contribution, or which are funded in whole or in part through
13 the acceptance of a reduction in earnings or the foregoing of
14 an increase in earnings by an employee, as distinguished from
15 noncontributory coverage or benefits which are paid entirely
16 by the State of Illinois without reduction of the member's
17 salary.
18 (g) "Department" means any department, institution,
19 board, commission, officer, court or any agency of the State
20 government receiving appropriations and having power to
21 certify payrolls to the Comptroller authorizing payments of
22 salary and wages against such appropriations as are made by
23 the General Assembly from any State fund, or against trust
24 funds held by the State Treasurer and includes boards of
25 trustees of the retirement systems created by Articles 2, 14,
26 15, 16 and 18 of the Illinois Pension Code. "Department"
27 also includes the Illinois Comprehensive Health Insurance
28 Board, the Board of Examiners established under the Illinois
29 Public Accounting Act, and the Illinois Rural Bond Bank.
30 (h) "Dependent", when the term is used in the context of
31 the health and life plan, means a member's spouse and any
32 unmarried child (1) from birth to age 19 including an adopted
33 child, a child who lives with the member from the time of the
34 filing of a petition for adoption until entry of an order of
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1 adoption, a stepchild or recognized child who lives with the
2 member in a parent-child relationship, or a child who lives
3 with the member if such member is a court appointed guardian
4 of the child, or (2) age 19 to 23 enrolled as a full-time
5 student in any accredited school, financially dependent upon
6 the member, and eligible as a dependent for Illinois State
7 income tax purposes, or (3) age 19 or over who is mentally or
8 physically handicapped as defined in the Illinois Insurance
9 Code. For the health plan only, the term "dependent" also
10 includes any person enrolled prior to the effective date of
11 this Section who is dependent upon the member to the extent
12 that the member may claim such person as a dependent for
13 Illinois State income tax deduction purposes; no other such
14 person may be enrolled.
15 (i) "Director" means the Director of the Illinois
16 Department of Central Management Services.
17 (j) "Eligibility period" means the period of time a
18 member has to elect enrollment in programs or to select
19 benefits without regard to age, sex or health.
20 (k) "Employee" means and includes each officer or
21 employee in the service of a department who (1) receives his
22 compensation for service rendered to the department on a
23 warrant issued pursuant to a payroll certified by a
24 department or on a warrant or check issued and drawn by a
25 department upon a trust, federal or other fund or on a
26 warrant issued pursuant to a payroll certified by an elected
27 or duly appointed officer of the State or who receives
28 payment of the performance of personal services on a warrant
29 issued pursuant to a payroll certified by a Department and
30 drawn by the Comptroller upon the State Treasurer against
31 appropriations made by the General Assembly from any fund or
32 against trust funds held by the State Treasurer, and (2) is
33 employed full-time or part-time in a position normally
34 requiring actual performance of duty during not less than 1/2
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1 of a normal work period, as established by the Director in
2 cooperation with each department, except that persons elected
3 by popular vote will be considered employees during the
4 entire term for which they are elected regardless of hours
5 devoted to the service of the State, and (3) except that
6 "employee" does not include any person who is not eligible by
7 reason of such person's employment to participate in one of
8 the State retirement systems under Articles 2, 14, 15 (either
9 the regular Article 15 system or the optional retirement
10 program established under Section 15-158.2) or 18, or under
11 paragraph (b) or (c) of Section 16-106, of the Illinois
12 Pension Code, but such term does include persons who are
13 employed during the 6 month qualifying period under Article
14 14 of the Illinois Pension Code. Such term also includes any
15 person who (1) after January 1, 1966, is receiving ordinary
16 or accidental disability benefits under Articles 2, 14, 15
17 (including ordinary or accidental disability benefits under
18 the optional retirement program established under Section
19 15-158.2), paragraphs (b) or (c) of Section 16-106, or
20 Article 18 of the Illinois Pension Code, for disability
21 incurred after January 1, 1966, (2) receives total permanent
22 or total temporary disability under the Workers' Compensation
23 Act or Occupational Disease Act as a result of injuries
24 sustained or illness contracted in the course of employment
25 with the State of Illinois, or (3) is not otherwise covered
26 under this Act and has retired as a participating member
27 under Article 2 of the Illinois Pension Code but is
28 ineligible for the retirement annuity under Section 2-119 of
29 the Illinois Pension Code. However, a person who satisfies
30 the criteria of the foregoing definition of "employee" except
31 that such person is made ineligible to participate in the
32 State Universities Retirement System by clause (4) of
33 subsection (a) of Section 15-107 of the Illinois Pension Code
34 is also an "employee" for the purposes of this Act.
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1 "Employee" also includes any person receiving or eligible for
2 benefits under a sick pay plan established in accordance with
3 Section 36 of the State Finance Act. "Employee" also includes
4 each officer or employee in the service of a qualified local
5 government, including persons appointed as trustees of
6 sanitary districts regardless of hours devoted to the service
7 of the sanitary district, and each employee in the service of
8 a qualified rehabilitation facility and each full-time
9 employee in the service of a qualified domestic violence
10 shelter or service, as determined according to rules
11 promulgated by the Director.
12 (l) "Member" means an employee, annuitant, retired
13 employee or survivor.
14 (m) "Optional coverages or benefits" means those
15 coverages or benefits available to the member on his or her
16 voluntary election, and at his or her own expense.
17 (n) "Program" means the group life insurance, health
18 benefits and other employee benefits designed and contracted
19 for by the Director under this Act.
20 (o) "Health plan" means a self-insured health insurance
21 program offered by the State of Illinois for the purposes of
22 benefiting employees by means of providing, among others,
23 wellness programs, utilization reviews, second opinions and
24 medical fee reviews, as well as for paying for hospital and
25 medical care up to the maximum coverage provided by the plan,
26 to its members and their dependents.
27 (p) "Retired employee" means any person who would be an
28 annuitant as that term is defined herein but for the fact
29 that such person retired prior to January 1, 1966. Such term
30 also includes any person formerly employed by the University
31 of Illinois in the Cooperative Extension Service who would be
32 an annuitant but for the fact that such person was made
33 ineligible to participate in the State Universities
34 Retirement System by clause (4) of subsection (a) of Section
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1 15-107 of the Illinois Pension Code.
2 (p-6) "New SURS retired employee" means a person who, on
3 or after January 1, 1998, becomes a retired employee, as
4 defined in subsection (p), by virtue of being a person
5 formerly employed by the University of Illinois in the
6 Cooperative Extension Service who would be an annuitant but
7 for the fact that he or she was made ineligible to
8 participate in the State Universities Retirement System by
9 clause (4) of subsection (a) of Section 15-107 of the
10 Illinois Pension Code, and who is eligible to participate in
11 the basic program of group health benefits provided for
12 retired employees under this Act.
13 (q) "Survivor" means a person receiving an annuity as a
14 survivor of an employee or of an annuitant. "Survivor" also
15 includes: (1) the surviving dependent of a person who
16 satisfies the definition of "employee" except that such
17 person is made ineligible to participate in the State
18 Universities Retirement System by clause (4) of subsection
19 (a) of Section 15-107 of the Illinois Pension Code; and (2)
20 the surviving dependent of any person formerly employed by
21 the University of Illinois in the Cooperative Extension
22 Service who would be an annuitant except for the fact that
23 such person was made ineligible to participate in the State
24 Universities Retirement System by clause (4) of subsection
25 (a) of Section 15-107 of the Illinois Pension Code.
26 (q-5) "New SERS survivor" means a survivor, as defined
27 in subsection (q), whose annuity is paid under Article 14 of
28 the Illinois Pension Code and is based on the death of (i) an
29 employee whose death occurs on or after January 1, 1998, or
30 (ii) a new SERS annuitant as defined in subsection (b-5).
31 (q-6) "New SURS survivor" means a survivor, as defined
32 in subsection (q), whose annuity is paid under Article 15 of
33 the Illinois Pension Code and is based on the death of (i) an
34 employee who first becomes a participant under that Article
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1 15 whose death occurs on or after January 1, 1998, or (ii) a
2 new SURS annuitant as defined in subsection (b-6), or (iii) a
3 new SURS retired employee as defined in subsection (p-6).
4 (r) "Medical services" means the services provided
5 within the scope of their licenses by practitioners in all
6 categories licensed under the Medical Practice Act of 1987.
7 (s) "Unit of local government" means any county,
8 municipality, township, school district, special district or
9 other unit, designated as a unit of local government by law,
10 which exercises limited governmental powers or powers in
11 respect to limited governmental subjects, any not-for-profit
12 association with a membership that primarily includes
13 townships and township officials, that has duties that
14 include provision of research service, dissemination of
15 information, and other acts for the purpose of improving
16 township government, and that is funded wholly or partly in
17 accordance with Section 85-15 of the Township Code; any
18 not-for-profit corporation or association, with a membership
19 consisting primarily of municipalities, that operates its own
20 utility system, and provides research, training,
21 dissemination of information, or other acts to promote
22 cooperation between and among municipalities that provide
23 utility services and for the advancement of the goals and
24 purposes of its membership; and the Illinois Association of
25 Park Districts. "Qualified local government" means a unit of
26 local government approved by the Director and participating
27 in a program created under subsection (i) of Section 10 of
28 this Act.
29 (t) "Qualified rehabilitation facility" means any
30 not-for-profit organization that is accredited by the
31 Commission on Accreditation of Rehabilitation Facilities or
32 certified by the Department of Human Services (as successor
33 to the Department of Mental Health and Developmental
34 Disabilities) to provide services to persons with
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1 disabilities and which receives funds from the State of
2 Illinois for providing those services, approved by the
3 Director and participating in a program created under
4 subsection (j) of Section 10 of this Act.
5 (u) "Qualified domestic violence shelter or service"
6 means any Illinois domestic violence shelter or service and
7 its administrative offices funded by the Department of Human
8 Services (as successor to the Illinois Department of Public
9 Aid), approved by the Director and participating in a program
10 created under subsection (k) of Section 10.
11 (v) "TRS benefit recipient" means a person who:
12 (1) is not a "member" as defined in this Section;
13 and
14 (2) is receiving a monthly benefit or retirement
15 annuity under Article 16 of the Illinois Pension Code;
16 and
17 (3) either (i) has at least 8 years of creditable
18 service under Article 16 of the Illinois Pension Code, or
19 (ii) was enrolled in the health insurance program offered
20 under that Article on January 1, 1996, or (iii) is the
21 survivor of a benefit recipient who had at least 8 years
22 of creditable service under Article 16 of the Illinois
23 Pension Code or was enrolled in the health insurance
24 program offered under that Article on the effective date
25 of this amendatory Act of 1995, or (iv) is a recipient or
26 survivor of a recipient of a disability benefit under
27 Article 16 of the Illinois Pension Code.
28 (w) "TRS dependent beneficiary" means a person who:
29 (1) is not a "member" or "dependent" as defined in
30 this Section; and
31 (2) is a TRS benefit recipient's: (A) spouse, (B)
32 dependent parent who is receiving at least half of his or
33 her support from the TRS benefit recipient, or (C)
34 unmarried natural or adopted child who is (i) under age
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1 19, or (ii) enrolled as a full-time student in an
2 accredited school, financially dependent upon the TRS
3 benefit recipient, eligible as a dependent for Illinois
4 State income tax purposes, and either is under age 24 or
5 was, on January 1, 1996, participating as a dependent
6 beneficiary in the health insurance program offered under
7 Article 16 of the Illinois Pension Code, or (iii) age 19
8 or over who is mentally or physically handicapped as
9 defined in the Illinois Insurance Code.
10 (x) "Military leave with pay and benefits" refers to
11 individuals in basic training for reserves, special/advanced
12 training, annual training, emergency call up, or activation
13 by the President of the United States with approved pay and
14 benefits.
15 (y) "Military leave without pay and benefits" refers to
16 individuals who enlist for active duty in a regular component
17 of the U.S. Armed Forces or other duty not specified or
18 authorized under military leave with pay and benefits.
19 (z) "Community college benefit recipient" means a person
20 who:
21 (1) is not a "member" as defined in this Section;
22 and
23 (2) is receiving a monthly survivor's annuity or
24 retirement annuity under Article 15 of the Illinois
25 Pension Code; and
26 (3) either (i) was a full-time employee of a
27 community college district or an association of community
28 college boards created under the Public Community College
29 Act (other than an employee whose last employer under
30 Article 15 of the Illinois Pension Code was a community
31 college district subject to Article VII of the Public
32 Community College Act) and was eligible to participate in
33 a group health benefit plan as an employee during the
34 time of employment with a community college district
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1 (other than a community college district subject to
2 Article VII of the Public Community College Act) or an
3 association of community college boards, or (ii) is the
4 survivor of a person described in item (i).
5 (aa) "Community college dependent beneficiary" means a
6 person who:
7 (1) is not a "member" or "dependent" as defined in
8 this Section; and
9 (2) is a community college benefit recipient's: (A)
10 spouse, (B) dependent parent who is receiving at least
11 half of his or her support from the community college
12 benefit recipient, or (C) unmarried natural or adopted
13 child who is (i) under age 19, or (ii) enrolled as a
14 full-time student in an accredited school, financially
15 dependent upon the community college benefit recipient,
16 eligible as a dependent for Illinois State income tax
17 purposes and under age 23, or (iii) age 19 or over and
18 mentally or physically handicapped as defined in the
19 Illinois Insurance Code.
20 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95;
21 89-76, eff. 7-1-95; 89-324, eff. 8-13-95; 89-430, eff.
22 12-15-95; 89-502, eff. 7-1-96; 89-507, eff. 7-1-97; 89-628,
23 eff. 8-9-96; 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
24 eff. 8-16-97; 90-497, eff. 8-18-97; 90-511, eff. 8-22-97;
25 revised 10-13-97.)
26 (5 ILCS 375/10) (from Ch. 127, par. 530)
27 Sec. 10. Payments by State; premiums.
28 (a) The State shall pay the cost of basic
29 non-contributory group life insurance and, subject to member
30 paid contributions set by the Department or required by this
31 Section, the basic program of group health benefits on each
32 eligible member, except a member, not otherwise covered by
33 this Act, who has retired as a participating member under
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1 Article 2 of the Illinois Pension Code but is ineligible for
2 the retirement annuity under Section 2-119 of the Illinois
3 Pension Code, and part of each eligible member's and retired
4 member's premiums for health insurance coverage for enrolled
5 dependents as provided by Section 9. The State shall pay the
6 cost of the basic program of group health benefits only after
7 benefits are reduced by the amount of benefits covered by
8 Medicare for all retired members and retired dependents aged
9 65 years or older who are entitled to benefits under Social
10 Security or the Railroad Retirement system or who had
11 sufficient Medicare-covered government employment except that
12 such reduction in benefits shall apply only to those retired
13 members or retired dependents who (1) first become eligible
14 for such Medicare coverage on or after July 1, 1992; or (2)
15 remain eligible for, but no longer receive Medicare coverage
16 which they had been receiving on or after July 1, 1992. The
17 Department may determine the aggregate level of the State's
18 contribution on the basis of actual cost of medical services
19 adjusted for age, sex or geographic or other demographic
20 characteristics which affect the costs of such programs.
21 (a-1) Beginning January 1, 1998, for each person who
22 becomes a new SERS annuitant and participates in the basic
23 program of group health benefits, the State shall contribute
24 toward the cost of the annuitant's coverage under the basic
25 program of group health benefits an amount equal to 5% of
26 that cost for each full year of creditable service upon which
27 the annuitant's retirement annuity is based, up to a maximum
28 of 100% for an annuitant with 20 or more years of creditable
29 service. The remainder of the cost of a new SERS annuitant's
30 coverage under the basic program of group health benefits
31 shall be the responsibility of the annuitant.
32 (a-2) Beginning January 1, 1998, for each person who
33 becomes a new SERS survivor and participates in the basic
34 program of group health benefits, the State shall contribute
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1 toward the cost of the survivor's coverage under the basic
2 program of group health benefits an amount equal to 5% of
3 that cost for each full year of the deceased employee's or
4 deceased annuitant's creditable service in the State
5 Employees' Retirement System of Illinois on the date of
6 death, up to a maximum of 100% for a survivor of an employee
7 or annuitant with 20 or more years of creditable service.
8 The remainder of the cost of the new SERS survivor's coverage
9 under the basic program of group health benefits shall be the
10 responsibility of the survivor.
11 (a-3) Beginning January 1, 1998, for each person who
12 becomes a new SURS annuitant and participates in the basic
13 program of group health benefits, the State shall contribute
14 toward the cost of the annuitant's coverage under the basic
15 program of group health benefits an amount equal to 5% of
16 that cost for each full year of creditable service upon which
17 the annuitant's retirement annuity is based, up to a maximum
18 of 100% for an annuitant with 20 or more years of creditable
19 service. The remainder of the cost of a new SURS annuitant's
20 coverage under the basic program of group health benefits
21 shall be the responsibility of the annuitant.
22 (a-4) (Blank). Beginning January 1, 1998, for each
23 person who becomes a new SURS retired employee and
24 participates in the basic program of group health benefits,
25 the State shall contribute toward the cost of the retired
26 employee's coverage under the basic program of group health
27 benefits an amount equal to 5% of that cost for each full
28 year that the retired employee was an employee as defined in
29 Section 3, up to a maximum of 100% for a retired employee who
30 was an employee for 20 or more years. The remainder of the
31 cost of a new SURS retired employee's coverage under the
32 basic program of group health benefits shall be the
33 responsibility of the retired employee.
34 (a-5) Beginning January 1, 1998, for each person who
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1 becomes a new SURS survivor and participates in the basic
2 program of group health benefits, the State shall contribute
3 toward the cost of the survivor's coverage under the basic
4 program of group health benefits an amount equal to 5% of
5 that cost for each full year of the deceased employee's or
6 deceased annuitant's creditable service in the State
7 Universities Employees' Retirement System of Illinois on the
8 date of death, up to a maximum of 100% for a survivor of an
9 employee or annuitant with 20 or more years of creditable
10 service. The remainder of the cost of the new SURS
11 survivor's coverage under the basic program of group health
12 benefits shall be the responsibility of the survivor.
13 (a-6) A new SERS annuitant, new SERS survivor, new SURS
14 annuitant, new SURS retired employee, or new SURS survivor
15 may waive or terminate coverage in the program of group
16 health benefits. Any such annuitant or, survivor, or retired
17 employee who has waived or terminated coverage may enroll or
18 re-enroll in the program of group health benefits only during
19 the annual benefit choice period, as determined by the
20 Director; except that in the event of termination of coverage
21 due to nonpayment of premiums, the annuitant or, survivor, or
22 retired employee may not re-enroll in the program.
23 (a-7) No later than May 1 of each calendar year, the
24 Director of Central Management Services shall certify in
25 writing to the Executive Secretary of the State Employee's
26 Retirement System the amounts of the Medicare supplement
27 health care premiums and the amounts of the health care
28 premiums for all other retirees who are not Medicare
29 eligible.
30 A separate calculation of the premiums based upon the
31 actual cost of each health care plan shall be so certified.
32 The Director of Central Management Services shall provide
33 to the Executive Secretary of the State Employee's Retirement
34 System such information, statistics, and other data as he or
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1 she he/she may require to review the premium amounts
2 certified by the Director of Central Management Services.
3 (b) State employees who become eligible for this program
4 on or after January 1, 1980 in positions, normally requiring
5 actual performance of duty not less than 1/2 of a normal work
6 period but not equal to that of a normal work period, shall
7 be given the option of participating in the available
8 program. If the employee elects coverage, the State shall
9 contribute on behalf of such employee to the cost of the
10 employee's benefit and any applicable dependent supplement,
11 that sum which bears the same percentage as that percentage
12 of time the employee regularly works when compared to normal
13 work period.
14 (c) The basic non-contributory coverage from the basic
15 program of group health benefits shall be continued for each
16 employee not in pay status or on active service by reason of
17 (1) leave of absence due to illness or injury, (2) authorized
18 educational leave of absence or sabbatical leave, or (3)
19 military leave with pay and benefits. This coverage shall
20 continue until expiration of authorized leave and return to
21 active service, but not to exceed 24 months for leaves under
22 item (1) or (2). This 24-month limitation and the requirement
23 of returning to active service shall not apply to persons
24 receiving ordinary or accidental disability benefits or
25 retirement benefits through the appropriate State retirement
26 system or benefits under the Workers' Compensation or
27 Occupational Disease Act.
28 (d) The basic group life insurance coverage shall
29 continue, with full State contribution, where such person is
30 (1) absent from active service by reason of disability
31 arising from any cause other than self-inflicted, (2) on
32 authorized educational leave of absence or sabbatical leave,
33 or (3) on military leave with pay and benefits.
34 (e) Where the person is in non-pay status for a period
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1 in excess of 30 days or on leave of absence, other than by
2 reason of disability, educational or sabbatical leave, or
3 military leave with pay and benefits, such person may
4 continue coverage only by making personal payment equal to
5 the amount normally contributed by the State on such person's
6 behalf. Such payments and coverage may be continued: (1)
7 until such time as the person returns to a status eligible
8 for coverage at State expense, but not to exceed 24 months,
9 (2) until such person's employment or annuitant status with
10 the State is terminated, or (3) for a maximum period of 4
11 years for members on military leave with pay and benefits and
12 military leave without pay and benefits (exclusive of any
13 additional service imposed pursuant to law).
14 (f) The Department shall establish by rule the extent
15 to which other employee benefits will continue for persons in
16 non-pay status or who are not in active service.
17 (g) The State shall not pay the cost of the basic
18 non-contributory group life insurance, program of health
19 benefits and other employee benefits for members who are
20 survivors as defined by paragraphs (1) and (2) of subsection
21 (q) of Section 3 of this Act. The costs of benefits for
22 these survivors shall be paid by the survivors or by the
23 University of Illinois Cooperative Extension Service, or any
24 combination thereof.
25 (h) Those persons occupying positions with any
26 department as a result of emergency appointments pursuant to
27 Section 8b.8 of the Personnel Code who are not considered
28 employees under this Act shall be given the option of
29 participating in the programs of group life insurance, health
30 benefits and other employee benefits. Such persons electing
31 coverage may participate only by making payment equal to the
32 amount normally contributed by the State for similarly
33 situated employees. Such amounts shall be determined by the
34 Director. Such payments and coverage may be continued until
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1 such time as the person becomes an employee pursuant to this
2 Act or such person's appointment is terminated.
3 (i) Any unit of local government within the State of
4 Illinois may apply to the Director to have its employees,
5 annuitants, and their dependents provided group health
6 coverage under this Act on a non-insured basis. To
7 participate, a unit of local government must agree to enroll
8 all of its employees, who may select coverage under either
9 the State group health insurance plan or a health maintenance
10 organization that has contracted with the State to be
11 available as a health care provider for employees as defined
12 in this Act. A unit of local government must remit the
13 entire cost of providing coverage under the State group
14 health insurance plan or, for coverage under a health
15 maintenance organization, an amount determined by the
16 Director based on an analysis of the sex, age, geographic
17 location, or other relevant demographic variables for its
18 employees, except that the unit of local government shall not
19 be required to enroll those of its employees who are covered
20 spouses or dependents under this plan or another group policy
21 or plan providing health benefits as long as (1) an
22 appropriate official from the unit of local government
23 attests that each employee not enrolled is a covered spouse
24 or dependent under this plan or another group policy or plan,
25 and (2) at least 85% of the employees are enrolled and the
26 unit of local government remits the entire cost of providing
27 coverage to those employees. Employees of a participating
28 unit of local government who are not enrolled due to coverage
29 under another group health policy or plan may enroll at a
30 later date subject to submission of satisfactory evidence of
31 insurability and provided that no benefits shall be payable
32 for services incurred during the first 6 months of coverage
33 to the extent the services are in connection with any
34 pre-existing condition. A participating unit of local
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1 government may also elect to cover its annuitants. Dependent
2 coverage shall be offered on an optional basis, with the
3 costs paid by the unit of local government, its employees, or
4 some combination of the two as determined by the unit of
5 local government. The unit of local government shall be
6 responsible for timely collection and transmission of
7 dependent premiums.
8 The Director shall annually determine monthly rates of
9 payment, subject to the following constraints:
10 (1) In the first year of coverage, the rates shall
11 be equal to the amount normally charged to State
12 employees for elected optional coverages or for enrolled
13 dependents coverages or other contributory coverages, or
14 contributed by the State for basic insurance coverages on
15 behalf of its employees, adjusted for differences between
16 State employees and employees of the local government in
17 age, sex, geographic location or other relevant
18 demographic variables, plus an amount sufficient to pay
19 for the additional administrative costs of providing
20 coverage to employees of the unit of local government and
21 their dependents.
22 (2) In subsequent years, a further adjustment shall
23 be made to reflect the actual prior years' claims
24 experience of the employees of the unit of local
25 government.
26 In the case of coverage of local government employees
27 under a health maintenance organization, the Director shall
28 annually determine for each participating unit of local
29 government the maximum monthly amount the unit may contribute
30 toward that coverage, based on an analysis of (i) the age,
31 sex, geographic location, and other relevant demographic
32 variables of the unit's employees and (ii) the cost to cover
33 those employees under the State group health insurance plan.
34 The Director may similarly determine the maximum monthly
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1 amount each unit of local government may contribute toward
2 coverage of its employees' dependents under a health
3 maintenance organization.
4 Monthly payments by the unit of local government or its
5 employees for group health insurance or health maintenance
6 organization coverage shall be deposited in the Local
7 Government Health Insurance Reserve Fund. The Local
8 Government Health Insurance Reserve Fund shall be a
9 continuing fund not subject to fiscal year limitations. All
10 expenditures from this fund shall be used for payments for
11 health care benefits for local government and rehabilitation
12 facility employees, annuitants, and dependents, and to
13 reimburse the Department or its administrative service
14 organization for all expenses incurred in the administration
15 of benefits. No other State funds may be used for these
16 purposes.
17 A local government employer's participation or desire to
18 participate in a program created under this subsection shall
19 not limit that employer's duty to bargain with the
20 representative of any collective bargaining unit of its
21 employees.
22 (j) Any rehabilitation facility within the State of
23 Illinois may apply to the Director to have its employees,
24 annuitants, and their dependents provided group health
25 coverage under this Act on a non-insured basis. To
26 participate, a rehabilitation facility must agree to enroll
27 all of its employees and remit the entire cost of providing
28 such coverage for its employees, except that the
29 rehabilitation facility shall not be required to enroll those
30 of its employees who are covered spouses or dependents under
31 this plan or another group policy or plan providing health
32 benefits as long as (1) an appropriate official from the
33 rehabilitation facility attests that each employee not
34 enrolled is a covered spouse or dependent under this plan or
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1 another group policy or plan, and (2) at least 85% of the
2 employees are enrolled and the rehabilitation facility remits
3 the entire cost of providing coverage to those employees.
4 Employees of a participating rehabilitation facility who are
5 not enrolled due to coverage under another group health
6 policy or plan may enroll at a later date subject to
7 submission of satisfactory evidence of insurability and
8 provided that no benefits shall be payable for services
9 incurred during the first 6 months of coverage to the extent
10 the services are in connection with any pre-existing
11 condition. A participating rehabilitation facility may also
12 elect to cover its annuitants. Dependent coverage shall be
13 offered on an optional basis, with the costs paid by the
14 rehabilitation facility, its employees, or some combination
15 of the 2 as determined by the rehabilitation facility. The
16 rehabilitation facility shall be responsible for timely
17 collection and transmission of dependent premiums.
18 The Director shall annually determine quarterly rates of
19 payment, subject to the following constraints:
20 (1) In the first year of coverage, the rates shall
21 be equal to the amount normally charged to State
22 employees for elected optional coverages or for enrolled
23 dependents coverages or other contributory coverages on
24 behalf of its employees, adjusted for differences between
25 State employees and employees of the rehabilitation
26 facility in age, sex, geographic location or other
27 relevant demographic variables, plus an amount sufficient
28 to pay for the additional administrative costs of
29 providing coverage to employees of the rehabilitation
30 facility and their dependents.
31 (2) In subsequent years, a further adjustment shall
32 be made to reflect the actual prior years' claims
33 experience of the employees of the rehabilitation
34 facility.
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1 Monthly payments by the rehabilitation facility or its
2 employees for group health insurance shall be deposited in
3 the Local Government Health Insurance Reserve Fund.
4 (k) Any domestic violence shelter or service within the
5 State of Illinois may apply to the Director to have its
6 employees, annuitants, and their dependents provided group
7 health coverage under this Act on a non-insured basis. To
8 participate, a domestic violence shelter or service must
9 agree to enroll all of its employees and pay the entire cost
10 of providing such coverage for its employees. A
11 participating domestic violence shelter may also elect to
12 cover its annuitants. Dependent coverage shall be offered on
13 an optional basis, with employees, or some combination of the
14 2 as determined by the domestic violence shelter or service.
15 The domestic violence shelter or service shall be responsible
16 for timely collection and transmission of dependent premiums.
17 The Director shall annually determine quarterly rates of
18 payment, subject to the following constraints:
19 (1) In the first year of coverage, the rates shall
20 be equal to the amount normally charged to State
21 employees for elected optional coverages or for enrolled
22 dependents coverages or other contributory coverages on
23 behalf of its employees, adjusted for differences between
24 State employees and employees of the domestic violence
25 shelter or service in age, sex, geographic location or
26 other relevant demographic variables, plus an amount
27 sufficient to pay for the additional administrative costs
28 of providing coverage to employees of the domestic
29 violence shelter or service and their dependents.
30 (2) In subsequent years, a further adjustment shall
31 be made to reflect the actual prior years' claims
32 experience of the employees of the domestic violence
33 shelter or service.
34 (3) In no case shall the rate be less than the
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1 amount normally charged to State employees or contributed
2 by the State on behalf of its employees.
3 Monthly payments by the domestic violence shelter or
4 service or its employees for group health insurance shall be
5 deposited in the Local Government Health Insurance Reserve
6 Fund.
7 (l) A public community college or entity organized
8 pursuant to the Public Community College Act may apply to the
9 Director initially to have only annuitants not covered prior
10 to July 1, 1992 by the district's health plan provided health
11 coverage under this Act on a non-insured basis. The
12 community college must execute a 2-year contract to
13 participate in the Local Government Health Plan. Those
14 annuitants enrolled initially under this contract shall have
15 no benefits payable for services incurred during the first 6
16 months of coverage to the extent the services are in
17 connection with any pre-existing condition. Any annuitant
18 who may enroll after this initial enrollment period shall be
19 subject to submission of satisfactory evidence of
20 insurability and to the pre-existing conditions limitation.
21 The Director shall annually determine monthly rates of
22 payment subject to the following constraints: for those
23 community colleges with annuitants only enrolled, first year
24 rates shall be equal to the average cost to cover claims for
25 a State member adjusted for demographics, Medicare
26 participation, and other factors; and in the second year, a
27 further adjustment of rates shall be made to reflect the
28 actual first year's claims experience of the covered
29 annuitants.
30 (m) The Director shall adopt any rules deemed necessary
31 for implementation of this amendatory Act of 1989 (Public Act
32 86-978).
33 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
34 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff.
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1 7-7-97.)
2 Section 10. The Illinois Pension Code is amended by
3 adding Section 15-135.1 and changing Sections 16-163 and
4 16-165 as follows:
5 (40 ILCS 5/15-135.1 new)
6 Sec. 15-135.1. Election to avoid application of P.A.
7 90-65.
8 (a) A participant who was an employee on or before July
9 7, 1997 and retires on or after January 1, 1998 may elect in
10 writing at the time of retirement to be governed (to the
11 extent that they are applicable to the form of benefit that
12 the person has chosen or is otherwise eligible to receive) by
13 the versions of Sections 15-135 and 15-136 that existed
14 immediately prior to their amendment by Public Act 90-65,
15 rather than the versions of those Sections otherwise
16 applicable to the participant at the time of retirement.
17 This election may be made only with respect to both Sections
18 and, once made, is irrevocable.
19 (b) The fact that a person has elected to participate in
20 the optional retirement program under Section 15-158.2 or has
21 elected the portability option under subsection (a-1) of
22 Section 15-154 does not prevent the person from making an
23 election under subsection (a) of this Section; the fact that
24 such a person makes an election under subsection (a) does not
25 allow the person to change the irrevocable election that he
26 or she made under Section 15-158.2 or subsection (a-1) of
27 Section 15-154.
28 (c) The System shall promptly notify the Department of
29 Central Management Services of each election made under this
30 Section.
31 (40 ILCS 5/16-163) (from Ch. 108 1/2, par. 16-163)
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1 Sec. 16-163. Board created. A board of 11 10 members
2 constitutes a board of trustees authorized to carry out the
3 provisions of this Article and is responsible for the general
4 administration of the system. The board is known as the
5 Board of Trustees of the Teachers' Retirement System of the
6 State of Illinois. The board is composed of the
7 Superintendent of Education, ex-officio, who shall be the
8 president of the board until July 15, 1998 or until such time
9 as the Governor has designated the president under this
10 amendatory Act of 1997; 4 persons, not members of the system,
11 to be appointed by the Governor, who shall hold no elected
12 State office; 4 teachers, as defined in Section 16-106,
13 elected by the contributing members; and 2 one annuitant
14 members member elected by the annuitants of the system, as
15 provided in Section 16-165. On or after July 15, 1998, the
16 Governor shall, from time to time, designate one of the
17 members to serve as president of the board.
18 (Source: P.A. 90-511, eff. 8-22-97.)
19 (40 ILCS 5/16-165) (from Ch. 108 1/2, par. 16-165)
20 Sec. 16-165. Board - elected members - vacancies. In
21 each odd-numbered year, there shall be elected 2 teachers who
22 shall hold office for a term of 4 years beginning July 15
23 next following their election, in the manner provided under
24 this Section. One The elected annuitant trustee shall first
25 be elected in 1987, and in every fourth year thereafter, as
26 hereinafter provided, for a term of 4 years beginning July 15
27 next following his or her election. The other elected
28 annuitant trustee shall first be elected at a special
29 election held by the board for this purpose on May 1, 1998,
30 for an initial term beginning July 15, 1998 and ending July
31 15, 1999. Thereafter, both elected annuitant trustees shall
32 be elected at the same elections for terms of 4 years.
33 Elections shall be held on May 1, unless May 1 falls on a
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1 Saturday or Sunday, in which event the such election shall be
2 conducted on the following Monday. Candidates shall be
3 nominated by petitions in writing, signed by not less than
4 500 teachers or annuitants, as the case may be, with their
5 addresses shown opposite their names. The petitions shall be
6 filed with the board's Secretary not less than 90 nor more
7 than 120 days prior to May 1. The Secretary shall determine
8 their validity not less than 75 days before the election.
9 If there are more than 2 qualified teacher nominees or
10 more than 2 one qualified annuitant nominees nominee, the
11 system shall prepare an appropriate ballot with the names of
12 the candidates in alphabetical order and shall mail one copy
13 thereof, at least 10 days prior to the election day, to each
14 teacher or annuitant of this system as of the latest date
15 practicable, at the latest known address, together with a
16 return envelope addressed to the board and also a smaller
17 envelope marked "For Ballot Only", and a slip for signature.
18 Each voter, upon marking his ballot with a cross mark in the
19 square before the name of the person voted for, shall place
20 the ballot in the envelope marked "For Ballot Only", seal the
21 envelope, write on the slip provided therefor his signature
22 and address, enclose both the slip and sealed envelope
23 containing the marked ballot in the return envelope addressed
24 to the board, and mail it. Whether a person is eligible to
25 vote for the teacher nominees or the annuitant nominees
26 nominee shall be determined from system payroll records as of
27 March 1.
28 Upon receipt of the return envelopes, the system shall
29 open them and set aside unopened the envelopes marked "For
30 Ballot Only". On election day ballots shall be publicly
31 opened and counted by the trustees or canvassers appointed
32 therefor. Each vote cast for a candidate represents one vote
33 only. No ballot arriving after 10 o'clock a.m. on election
34 day shall be counted. The 2 teacher candidates and the 2
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1 annuitant candidates candidate receiving the highest number
2 of votes shall be elected. The board shall declare the
3 results of the election, keep a record thereof, and notify
4 the candidates of the results thereof within 30 days after
5 the election.
6 If there are only 2 qualified teachers or only 2 one
7 qualified annuitants annuitant nominated by petition, the
8 balloting as described in this Section will not be conducted
9 for those such nominees, and the board shall declare them
10 such nominees duly elected.
11 A vacancy occurring in the elective membership on the
12 board shall be filled for the unexpired term by the board
13 with a person qualified for the vacant position.
14 (Source: P.A. 85-1008.)
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.".