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92_HB3736eng HB3736 Engrossed LRB9211439JMmb 1 AN ACT concerning the Illinois Economic and Fiscal 2 Commission. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The State Employees Group Insurance Act of 6 1971 is amended by changing Section 6.5 as follows: 7 (5 ILCS 375/6.5) 8 (Section scheduled to be repealed on July 1, 2004) 9 Sec. 6.5. Health benefits for TRS benefit recipients and 10 TRS dependent beneficiaries. 11 (a) Purpose. It is the purpose of this amendatory Act 12 of 1995 to transfer the administration of the program of 13 health benefits established for benefit recipients and their 14 dependent beneficiaries under Article 16 of the Illinois 15 Pension Code to the Department of Central Management 16 Services. 17 (b) Transition provisions. The Board of Trustees of the 18 Teachers' Retirement System shall continue to administer the 19 health benefit program established under Article 16 of the 20 Illinois Pension Code through December 31, 1995. Beginning 21 January 1, 1996, the Department of Central Management 22 Services shall be responsible for administering a program of 23 health benefits for TRS benefit recipients and TRS dependent 24 beneficiaries under this Section. The Department of Central 25 Management Services and the Teachers' Retirement System shall 26 cooperate in this endeavor and shall coordinate their 27 activities so as to ensure a smooth transition and 28 uninterrupted health benefit coverage. 29 (c) Eligibility. All persons who were enrolled in the 30 Article 16 program at the time of the transfer shall be 31 eligible to participate in the program established under this HB3736 Engrossed -2- LRB9211439JMmb 1 Section without any interruption or delay in coverage or 2 limitation as to pre-existing medical conditions. 3 Eligibility to participate shall be determined by the 4 Teachers' Retirement System. Eligibility information shall 5 be communicated to the Department of Central Management 6 Services in a format acceptable to the Department. 7 (d) Coverage. The level of health benefits provided 8 under this Section shall be similar to the level of benefits 9 provided by the program previously established under Article 10 16 of the Illinois Pension Code. 11 Group life insurance benefits are not included in the 12 benefits to be provided to TRS benefit recipients and TRS 13 dependent beneficiaries under this Act. 14 The program of health benefits under this Section may 15 include any or all of the benefit limitations, including but 16 not limited to a reduction in benefits based on eligibility 17 for federal medicare benefits, that are provided under 18 subsection (a) of Section 6 of this Act for other health 19 benefit programs under this Act. 20 (e) Insurance rates and premiums. The Director shall 21 determine the insurance rates and premiums for TRS benefit 22 recipients and TRS dependent beneficiaries, and shall present 23 to the Teachers' Retirement System of the State of Illinois 24 and the Illinois Economic and Fiscal Commission, by April 15 25 of each calendar year, the rate-setting methodology 26 (including but not limited to utilization levels and costs) 27 used to determine the amount of the health care premiums. 28 For Fiscal Year 1996, the premium shall be equal to the 29 premium actually charged in Fiscal Year 1995; in subsequent 30 years, the premium shall never be lower than the premium 31 charged in Fiscal Year 1995. For Fiscal Year 2003, the 32 premium shall not exceed 110% of the premium actually charged 33 in Fiscal Year 2002. For Fiscal Year 2004, the premium shall 34 not exceed 112% of the premium actually charged in Fiscal HB3736 Engrossed -3- LRB9211439JMmb 1 Year 2003. 2 Rates and premiums may be based in part on age and 3 eligibility for federal medicare coverage. 4 The cost of health benefits under the program shall be 5 paid as follows: 6 (1) For a TRS benefit recipient selecting a managed 7 care program, up to 75% of the total insurance rate shall 8 be paid from the Teacher Health Insurance Security Fund. 9 (2) For a TRS benefit recipient selecting the major 10 medical coverage program, up to 50% of the total 11 insurance rate shall be paid from the Teacher Health 12 Insurance Security Fund if a managed care program is 13 accessible, as determined by the Teachers' Retirement 14 System. 15 (3) For a TRS benefit recipient selecting the major 16 medical coverage program, up to 75% of the total 17 insurance rate shall be paid from the Teacher Health 18 Insurance Security Fund if a managed care program is not 19 accessible, as determined by the Teachers' Retirement 20 System. 21 (4) The balance of the rate of insurance, including 22 the entire premium of any coverage for TRS dependent 23 beneficiaries that has been elected, shall be paid by 24 deductions authorized by the TRS benefit recipient to be 25 withheld from his or her monthly annuity or benefit 26 payment from the Teachers' Retirement System; except that 27 (i) if the balance of the cost of coverage exceeds the 28 amount of the monthly annuity or benefit payment, the 29 difference shall be paid directly to the Teachers' 30 Retirement System by the TRS benefit recipient, and (ii) 31 all or part of the balance of the cost of coverage may, 32 at the school board's option, be paid to the Teachers' 33 Retirement System by the school board of the school 34 district from which the TRS benefit recipient retired, in HB3736 Engrossed -4- LRB9211439JMmb 1 accordance with Section 10-22.3b of the School Code. The 2 Teachers' Retirement System shall promptly deposit all 3 moneys withheld by or paid to it under this subdivision 4 (e)(4) into the Teacher Health Insurance Security Fund. 5 These moneys shall not be considered assets of the 6 Retirement System. 7 (f) Financing. Beginning July 1, 1995, all revenues 8 arising from the administration of the health benefit 9 programs established under Article 16 of the Illinois Pension 10 Code or this Section shall be deposited into the Teacher 11 Health Insurance Security Fund, which is hereby created as a 12 nonappropriated trust fund to be held outside the State 13 Treasury, with the State Treasurer as custodian. Any 14 interest earned on moneys in the Teacher Health Insurance 15 Security Fund shall be deposited into the Fund. 16 Moneys in the Teacher Health Insurance Security Fund 17 shall be used only to pay the costs of the health benefit 18 program established under this Section, including associated 19 administrative costs, and the costs associated with the 20 health benefit program established under Article 16 of the 21 Illinois Pension Code, as authorized in this Section. 22 Beginning July 1, 1995, the Department of Central Management 23 Services may make expenditures from the Teacher Health 24 Insurance Security Fund for those costs. 25 After other funds authorized for the payment of the costs 26 of the health benefit program established under Article 16 of 27 the Illinois Pension Code are exhausted and until January 1, 28 1996 (or such later date as may be agreed upon by the 29 Director of Central Management Services and the Secretary of 30 the Teachers' Retirement System), the Secretary of the 31 Teachers' Retirement System may make expenditures from the 32 Teacher Health Insurance Security Fund as necessary to pay up 33 to 75% of the cost of providing health coverage to eligible 34 benefit recipients (as defined in Sections 16-153.1 and HB3736 Engrossed -5- LRB9211439JMmb 1 16-153.3 of the Illinois Pension Code) who are enrolled in 2 the Article 16 health benefit program and to facilitate the 3 transfer of administration of the health benefit program to 4 the Department of Central Management Services. 5 (g) Contract for benefits. The Director shall by 6 contract, self-insurance, or otherwise make available the 7 program of health benefits for TRS benefit recipients and 8 their TRS dependent beneficiaries that is provided for in 9 this Section. The contract or other arrangement for the 10 provision of these health benefits shall be on terms deemed 11 by the Director to be in the best interest of the State of 12 Illinois and the TRS benefit recipients based on, but not 13 limited to, such criteria as administrative cost, service 14 capabilities of the carrier or other contractor, and the 15 costs of the benefits. 16 (h) Continuation and termination of program. It is the 17 intention of the General Assembly that the program of health 18 benefits provided under this Section be maintained on an 19 ongoing, affordable basis through June 30, 2004. The program 20 of health benefits provided under this Section is terminated 21 on July 1, 2004. 22 The program of health benefits provided under this 23 Section may be amended by the State and is not intended to be 24 a pension or retirement benefit subject to protection under 25 Article XIII, Section 5 of the Illinois Constitution. 26 (i) Repeal. This Section is repealed on July 1, 2004. 27 (Source: P.A. 92-505, eff. 12-20-01.) 28 Section 10. The Illinois Economic and Fiscal Commission 29 Act is amended by changing Sections 3 and 4 as follows: 30 (25 ILCS 155/3) (from Ch. 63, par. 343) 31 Sec. 3. The Commission shall: 32 (1) Study from time to time and report to the General HB3736 Engrossed -6- LRB9211439JMmb 1 Assembly on economic development and trends in the State. 2 (2) Make such special economic and fiscal studies as it 3 deems appropriate or desirable or as the General Assembly may 4 request. 5 (3) Based on its studies, recommend such State fiscal 6 and economic policies as it deems appropriate or desirable to 7 improve the functioning of State government and the economy 8 of the various regions within the State. 9 (4) Prepare annually a State economic report. 10 (5) Provide information for all appropriate legislative 11 organizations and personnel on economic trends in relation to 12 long range planning and budgeting. 13 (6) Study and make such recommendations as it deems 14 appropriate to the General Assembly on local and regional 15 economic and fiscal policy and on federal fiscal policy as it 16 may affect Illinois. 17 (7) Review capital expenditures, appropriations and 18 authorizations for both the State's general obligation and 19 revenue bonding authorities. At the direction of the 20 Commission, specific reviews may include economic feasibility 21 reviews of existing or proposed revenue bond projects to 22 determine the accuracy of the original estimate of useful 23 life of the projects, maintenance requirements and ability to 24 meet debt service requirements through their operating 25 expenses. 26 (8) Receive and review all executive agency and revenue 27 bonding authority annual and 3 year plans. The Commission 28 shall prepare a consolidated review of these plans, an 29 updated assessment of current State agency capital plans, a 30 report on the outstanding and unissued bond authorizations, 31 an evaluation of the State's ability to market further bond 32 issues and shall submit them as the "Legislative Capital Plan 33 Analysis" to the House and Senate Appropriations Committees 34 at least once a year. The Commission shall annually submit HB3736 Engrossed -7- LRB9211439JMmb 1 to the General Assembly on the first Wednesday of April a 2 report on the State's long-term capital needs, with 3 particular emphasis upon and detail of the 5-year period in 4 the immediate future. 5 (9) Study and make recommendations it deems appropriate 6 to the General Assembly on State bond financing, bondability 7 guidelines, and debt management. At the direction of the 8 Commission, specific studies and reviews may take into 9 consideration short and long-run implications of State 10 bonding and debt management policy. 11 (10) Comply with the provisions of the "State Debt 12 Impact Note Act" as now or hereafter amended. 13 (11) (Blank).Comply with the provisions of the Pension14Impact Note Act, as now or hereafter amended.15 (12) By September 15thAugust 1stof each year, the 16 Commission must prepare and cause to be published a summary 17 report of State appropriations for the State fiscal year 18 beginning the previous July 1st. The summary report must 19 discuss major categories of appropriations, the issues the 20 General Assembly faced in allocating appropriations, 21 comparisons with appropriations for previous State fiscal 22 years, and other matters helpful in providing the citizens of 23 Illinois with an overall understanding of appropriations for 24 that fiscal year. The summary report must be written in 25 plain language and designed for readability. Publication 26 must be in newspapers of general circulation in the various 27 areas of the State to ensure distribution statewide. The 28 summary report must also be published on the General 29 Assembly's web site. 30 The requirement for reporting to the General Assembly 31 shall be satisfied by filing copies of the report with the 32 Speaker, the Minority Leader and the Clerk of the House of 33 Representatives and the President, the Minority Leader and 34 the Secretary of the Senate and the Legislative Research HB3736 Engrossed -8- LRB9211439JMmb 1 Unit, as required by Section 3.1 of "An Act to revise the law 2 in relation to the General Assembly", approved February 25, 3 1874, as amended, and filing such additional copies with the 4 State Government Report Distribution Center for the General 5 Assembly as is required under paragraph (t) of Section 7 of 6 the State Library Act. 7 (Source: P.A. 92-67, eff. 7-12-01.) 8 (25 ILCS 155/4) (from Ch. 63, par. 344) 9 Sec. 4. (a) The Commission shall publish, at the 10 convening of each regular session of the General Assembly, a 11 report on the estimated income of the State from all 12 applicable revenue sources for the next ensuing fiscal year 13 and of any other funds estimated to be available for such 14 fiscal year. On the third Wednesday in March after the 15 session convenes, the Commission shall issue a revised and 16 updated set of revenue figures reflecting the latest 17 available information. The House and Senate by joint 18 resolution shall adopt or modify such estimates as may be 19 appropriate. The joint resolution shall constitute the 20 General Assembly's estimate, under paragraph (b) of Section 2 21 of Article VIII of the Constitution, of the funds estimated 22 to be available during the next fiscal year. 23 (b) On the third Wednesday in March, the Commission 24 shall issue estimated:25(1) pension funding requirements under P.A. 86-273;26and27(2)liabilities of the State employee group health 28 insurance program. 29 These estimated costs shall be for the fiscal year 30 beginning the following July 1. 31 (c) The requirement for reporting to the General 32 Assembly shall be satisfied by filing copies of the report 33 with the Speaker, the Minority Leader and the Clerk of the HB3736 Engrossed -9- LRB9211439JMmb 1 House of Representatives and the President, the Minority 2 Leader and the Secretary of the Senate and the Legislative 3 Research Unit, as required by Section 3.1 of "An Act to 4 revise the law in relation to the General Assembly", approved 5 February 25, 1874, as amended, and filing such additional 6 copies with the State Government Report Distribution Center 7 for the General Assembly as is required under paragraph (t) 8 of Section 7 of the State Library Act. 9 (Source: P.A. 87-1142.) 10 Section 99. Effective date. This Act takes effect upon 11 becoming law.