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92_SB0314eng SB314 Engrossed LRB9207506EGfg 1 AN ACT in relation to group insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Employees Group Insurance Act of 5 1971 is amended by changing Sections 3, 6.9, and 6.10 as 6 follows: 7 (5 ILCS 375/3) (from Ch. 127, par. 523) 8 Sec. 3. Definitions. Unless the context otherwise 9 requires, the following words and phrases as used in this Act 10 shall have the following meanings. The Department may define 11 these and other words and phrases separately for the purpose 12 of implementing specific programs providing benefits under 13 this Act. 14 (a) "Administrative service organization" means any 15 person, firm or corporation experienced in the handling of 16 claims which is fully qualified, financially sound and 17 capable of meeting the service requirements of a contract of 18 administration executed with the Department. 19 (b) "Annuitant" means (1) an employee who retires, or 20 has retired, on or after January 1, 1966 on an immediate 21 annuity under the provisions of Articles 2, 14, 15 (including 22 an employee who has retired under the optional retirement 23 program established under Section 15-158.2), paragraphs (2), 24 (3), or (5) of Section 16-106, or Article 18 of the Illinois 25 Pension Code; (2) any person who was receiving group 26 insurance coverage under this Act as of March 31, 1978 by 27 reason of his status as an annuitant, even though the annuity 28 in relation to which such coverage was provided is a 29 proportional annuity based on less than the minimum period of 30 service required for a retirement annuity in the system 31 involved; (3) any person not otherwise covered by this Act SB314 Engrossed -2- LRB9207506EGfg 1 who has retired as a participating member under Article 2 of 2 the Illinois Pension Code but is ineligible for the 3 retirement annuity under Section 2-119 of the Illinois 4 Pension Code; (4) the spouse of any person who is receiving a 5 retirement annuity under Article 18 of the Illinois Pension 6 Code and who is covered under a group health insurance 7 program sponsored by a governmental employer other than the 8 State of Illinois and who has irrevocably elected to waive 9 his or her coverage under this Act and to have his or her 10 spouse considered as the "annuitant" under this Act and not 11 as a "dependent"; or (5) an employee who retires, or has 12 retired, from a qualified position, as determined according 13 to rules promulgated by the Director, under a qualified local 14 government or a qualified rehabilitation facility or a 15 qualified domestic violence shelter or service. (For 16 definition of "retired employee", see (p) post). 17 (b-5) "New SERS annuitant" means a person who, on or 18 after January 1, 1998, becomes an annuitant, as defined in 19 subsection (b), by virtue of beginning to receive a 20 retirement annuity under Article 14 of the Illinois Pension 21 Code, and is eligible to participate in the basic program of 22 group health benefits provided for annuitants under this Act. 23 (b-6) "New SURS annuitant" means a person who (1) on or 24 after January 1, 1998, becomes an annuitant, as defined in 25 subsection (b), by virtue of beginning to receive a 26 retirement annuity under Article 15 of the Illinois Pension 27 Code, (2) has not made the election authorized under Section 28 15-135.1 of the Illinois Pension Code, and (3) is eligible to 29 participate in the basic program of group health benefits 30 provided for annuitants under this Act. 31 (b-7) "New TRS State annuitant" means a person who, on 32 or after July 1, 1998, becomes an annuitant, as defined in 33 subsection (b), by virtue of beginning to receive a 34 retirement annuity under Article 16 of the Illinois Pension SB314 Engrossed -3- LRB9207506EGfg 1 Code based on service as a teacher as defined in paragraph 2 (2), (3), or (5) of Section 16-106 of that Code, and is 3 eligible to participate in the basic program of group health 4 benefits provided for annuitants under this Act. 5 (c) "Carrier" means (1) an insurance company, a 6 corporation organized under the Limited Health Service 7 Organization Act or the Voluntary Health Services Plan Act, a 8 partnership, or other nongovernmental organization, which is 9 authorized to do group life or group health insurance 10 business in Illinois, or (2) the State of Illinois as a 11 self-insurer. 12 (d) "Compensation" means salary or wages payable on a 13 regular payroll by the State Treasurer on a warrant of the 14 State Comptroller out of any State, trust or federal fund, or 15 by the Governor of the State through a disbursing officer of 16 the State out of a trust or out of federal funds, or by any 17 Department out of State, trust, federal or other funds held 18 by the State Treasurer or the Department, to any person for 19 personal services currently performed, and ordinary or 20 accidental disability benefits under Articles 2, 14, 15 21 (including ordinary or accidental disability benefits under 22 the optional retirement program established under Section 23 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 24 Article 18 of the Illinois Pension Code, for disability 25 incurred after January 1, 1966, or benefits payable under the 26 Workers' Compensation or Occupational Diseases Act or 27 benefits payable under a sick pay plan established in 28 accordance with Section 36 of the State Finance Act. 29 "Compensation" also means salary or wages paid to an employee 30 of any qualified local government or qualified rehabilitation 31 facility or a qualified domestic violence shelter or service. 32 (e) "Commission" means the State Employees Group 33 Insurance Advisory Commission authorized by this Act. 34 Commencing July 1, 1984, "Commission" as used in this Act SB314 Engrossed -4- LRB9207506EGfg 1 means the Illinois Economic and Fiscal Commission as 2 established by the Legislative Commission Reorganization Act 3 of 1984. 4 (f) "Contributory", when referred to as contributory 5 coverage, shall mean optional coverages or benefits elected 6 by the member toward the cost of which such member makes 7 contribution, or which are funded in whole or in part through 8 the acceptance of a reduction in earnings or the foregoing of 9 an increase in earnings by an employee, as distinguished from 10 noncontributory coverage or benefits which are paid entirely 11 by the State of Illinois without reduction of the member's 12 salary. 13 (g) "Department" means any department, institution, 14 board, commission, officer, court or any agency of the State 15 government receiving appropriations and having power to 16 certify payrolls to the Comptroller authorizing payments of 17 salary and wages against such appropriations as are made by 18 the General Assembly from any State fund, or against trust 19 funds held by the State Treasurer and includes boards of 20 trustees of the retirement systems created by Articles 2, 14, 21 15, 16 and 18 of the Illinois Pension Code. "Department" 22 also includes the Illinois Comprehensive Health Insurance 23 Board, the Board of Examiners established under the Illinois 24 Public Accounting Act, and the Illinois Rural Bond Bank. 25 (h) "Dependent", when the term is used in the context of 26 the health and life plan, means a member's spouse and any 27 unmarried child (1) from birth to age 19 including an adopted 28 child, a child who lives with the member from the time of the 29 filing of a petition for adoption until entry of an order of 30 adoption, a stepchild or recognized child who lives with the 31 member in a parent-child relationship, or a child who lives 32 with the member if such member is a court appointed guardian 33 of the child, or (2) age 19 to 23 enrolled as a full-time 34 student in any accredited school, financially dependent upon SB314 Engrossed -5- LRB9207506EGfg 1 the member, and eligible to be claimed as a dependent for 2 income tax purposes, or (3) age 19 or over who is mentally or 3 physically handicapped. For the health plan only, the term 4 "dependent" also includes any person enrolled prior to the 5 effective date of this Section who is dependent upon the 6 member to the extent that the member may claim such person as 7 a dependent for income tax deduction purposes; no other such 8 person may be enrolled. 9 (i) "Director" means the Director of the Illinois 10 Department of Central Management Services. 11 (j) "Eligibility period" means the period of time a 12 member has to elect enrollment in programs or to select 13 benefits without regard to age, sex or health. 14 (k) "Employee" means and includes each officer or 15 employee in the service of a department who (1) receives his 16 compensation for service rendered to the department on a 17 warrant issued pursuant to a payroll certified by a 18 department or on a warrant or check issued and drawn by a 19 department upon a trust, federal or other fund or on a 20 warrant issued pursuant to a payroll certified by an elected 21 or duly appointed officer of the State or who receives 22 payment of the performance of personal services on a warrant 23 issued pursuant to a payroll certified by a Department and 24 drawn by the Comptroller upon the State Treasurer against 25 appropriations made by the General Assembly from any fund or 26 against trust funds held by the State Treasurer, and (2) is 27 employed full-time or part-time in a position normally 28 requiring actual performance of duty during not less than 1/2 29 of a normal work period, as established by the Director in 30 cooperation with each department, except that persons elected 31 by popular vote will be considered employees during the 32 entire term for which they are elected regardless of hours 33 devoted to the service of the State, and (3) except that 34 "employee" does not include any person who is not eligible by SB314 Engrossed -6- LRB9207506EGfg 1 reason of such person's employment to participate in one of 2 the State retirement systems under Articles 2, 14, 15 (either 3 the regular Article 15 system or the optional retirement 4 program established under Section 15-158.2) or 18, or under 5 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 6 Pension Code, but such term does include persons who are 7 employed during the 6 month qualifying period under Article 8 14 of the Illinois Pension Code. Such term also includes any 9 person who (1) after January 1, 1966, is receiving ordinary 10 or accidental disability benefits under Articles 2, 14, 15 11 (including ordinary or accidental disability benefits under 12 the optional retirement program established under Section 13 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 14 Article 18 of the Illinois Pension Code, for disability 15 incurred after January 1, 1966, (2) receives total permanent 16 or total temporary disability under the Workers' Compensation 17 Act or Occupational Disease Act as a result of injuries 18 sustained or illness contracted in the course of employment 19 with the State of Illinois, or (3) is not otherwise covered 20 under this Act and has retired as a participating member 21 under Article 2 of the Illinois Pension Code but is 22 ineligible for the retirement annuity under Section 2-119 of 23 the Illinois Pension Code. However, a person who satisfies 24 the criteria of the foregoing definition of "employee" except 25 that such person is made ineligible to participate in the 26 State Universities Retirement System by clause (4) of 27 subsection (a) of Section 15-107 of the Illinois Pension Code 28 is also an "employee" for the purposes of this Act. 29 "Employee" also includes any person receiving or eligible for 30 benefits under a sick pay plan established in accordance with 31 Section 36 of the State Finance Act. "Employee" also includes 32 each officer or employee in the service of a qualified local 33 government, including persons appointed as trustees of 34 sanitary districts regardless of hours devoted to the service SB314 Engrossed -7- LRB9207506EGfg 1 of the sanitary district, and each employee in the service of 2 a qualified rehabilitation facility and each full-time 3 employee in the service of a qualified domestic violence 4 shelter or service, as determined according to rules 5 promulgated by the Director. 6 (l) "Member" means an employee, annuitant, retired 7 employee or survivor. 8 (m) "Optional coverages or benefits" means those 9 coverages or benefits available to the member on his or her 10 voluntary election, and at his or her own expense. 11 (n) "Program" means the group life insurance, health 12 benefits and other employee benefits designed and contracted 13 for by the Director under this Act. 14 (o) "Health plan" means a health benefits program 15 offered by the State of Illinois for persons eligible for the 16 plan. 17 (p) "Retired employee" means any person who would be an 18 annuitant as that term is defined herein but for the fact 19 that such person retired prior to January 1, 1966. Such term 20 also includes any person formerly employed by the University 21 of Illinois in the Cooperative Extension Service who would be 22 an annuitant but for the fact that such person was made 23 ineligible to participate in the State Universities 24 Retirement System by clause (4) of subsection (a) of Section 25 15-107 of the Illinois Pension Code. 26 (q) "Survivor" means a person receiving an annuity as a 27 survivor of an employee or of an annuitant. "Survivor" also 28 includes: (1) the surviving dependent of a person who 29 satisfies the definition of "employee" except that such 30 person is made ineligible to participate in the State 31 Universities Retirement System by clause (4) of subsection 32 (a) of Section 15-107 of the Illinois Pension Code; and (2) 33 the surviving dependent of any person formerly employed by 34 the University of Illinois in the Cooperative Extension SB314 Engrossed -8- LRB9207506EGfg 1 Service who would be an annuitant except for the fact that 2 such person was made ineligible to participate in the State 3 Universities Retirement System by clause (4) of subsection 4 (a) of Section 15-107 of the Illinois Pension Code. 5 (q-5) "New SERS survivor" means a survivor, as defined 6 in subsection (q), whose annuity is paid under Article 14 of 7 the Illinois Pension Code and is based on the death of (i) an 8 employee whose death occurs on or after January 1, 1998, or 9 (ii) a new SERS annuitant as defined in subsection (b-5). 10 (q-6) "New SURS survivor" means a survivor, as defined 11 in subsection (q), whose annuity is paid under Article 15 of 12 the Illinois Pension Code and is based on the death of (i) an 13 employee whose death occurs on or after January 1, 1998, or 14 (ii) a new SURS annuitant as defined in subsection (b-6). 15 (q-7) "New TRS State survivor" means a survivor, as 16 defined in subsection (q), whose annuity is paid under 17 Article 16 of the Illinois Pension Code and is based on the 18 death of (i) an employee who is a teacher as defined in 19 paragraph (2), (3), or (5) of Section 16-106 of that Code and 20 whose death occurs on or after July 1, 1998, or (ii) a new 21 TRS State annuitant as defined in subsection (b-7). 22 (r) "Medical services" means the services provided 23 within the scope of their licenses by practitioners in all 24 categories licensed under the Medical Practice Act of 1987. 25 (s) "Unit of local government" means any county, 26 municipality, township, school district, special district or 27 other unit, designated as a unit of local government by law, 28 which exercises limited governmental powers or powers in 29 respect to limited governmental subjects, any not-for-profit 30 association with a membership that primarily includes 31 townships and township officials, that has duties that 32 include provision of research service, dissemination of 33 information, and other acts for the purpose of improving 34 township government, and that is funded wholly or partly in SB314 Engrossed -9- LRB9207506EGfg 1 accordance with Section 85-15 of the Township Code; any 2 not-for-profit corporation or association, with a membership 3 consisting primarily of municipalities, that operates its own 4 utility system, and provides research, training, 5 dissemination of information, or other acts to promote 6 cooperation between and among municipalities that provide 7 utility services and for the advancement of the goals and 8 purposes of its membership; the Southern Illinois Collegiate 9 Common Market, which is a consortium of higher education 10 institutions in Southern Illinois; and the Illinois 11 Association of Park Districts. "Qualified local government" 12 means a unit of local government approved by the Director and 13 participating in a program created under subsection (i) of 14 Section 10 of this Act. 15 (t) "Qualified rehabilitation facility" means any 16 not-for-profit organization that is accredited by the 17 Commission on Accreditation of Rehabilitation Facilities or 18 certified by the Department of Human Services (as successor 19 to the Department of Mental Health and Developmental 20 Disabilities) to provide services to persons with 21 disabilities and which receives funds from the State of 22 Illinois for providing those services, approved by the 23 Director and participating in a program created under 24 subsection (j) of Section 10 of this Act. 25 (u) "Qualified domestic violence shelter or service" 26 means any Illinois domestic violence shelter or service and 27 its administrative offices funded by the Department of Human 28 Services (as successor to the Illinois Department of Public 29 Aid), approved by the Director and participating in a program 30 created under subsection (k) of Section 10. 31 (v) "TRS benefit recipient" means a person who: 32 (1) is not a "member" as defined in this Section; 33 and 34 (2) is receiving a monthly benefit or retirement SB314 Engrossed -10- LRB9207506EGfg 1 annuity under Article 16 of the Illinois Pension Code; 2 and 3 (3) either (i) has at least 8 years of creditable 4 service under Article 16 of the Illinois Pension Code, or 5 (ii) was enrolled in the health insurance program offered 6 under that Article on January 1, 1996, or (iii) is the 7 survivor of a benefit recipient who had at least 8 years 8 of creditable service under Article 16 of the Illinois 9 Pension Code or was enrolled in the health insurance 10 program offered under that Article on the effective date 11 of this amendatory Act of 1995, or (iv) is a recipient or 12 survivor of a recipient of a disability benefit under 13 Article 16 of the Illinois Pension Code. 14 (w) "TRS dependent beneficiary" means a person who: 15 (1) is not a "member" or "dependent" as defined in 16 this Section; and 17 (2) is a TRS benefit recipient's: (A) spouse, (B) 18 dependent parent who is receiving at least half of his or 19 her support from the TRS benefit recipient, or (C) 20 unmarried natural or adopted child who is (i) under age 21 19, or (ii) enrolled as a full-time student in an 22 accredited school, financially dependent upon the TRS 23 benefit recipient, eligible to be claimed as a dependent 24 for income tax purposes, and either is under age 24 or 25 was, on January 1, 1996, participating as a dependent 26 beneficiary in the health insurance program offered under 27 Article 16 of the Illinois Pension Code, or (iii) age 19 28 or over who is mentally or physically handicapped. 29 (x) "Military leave with pay and benefits" refers to 30 individuals in basic training for reserves, special/advanced 31 training, annual training, emergency call up, or activation 32 by the President of the United States with approved pay and 33 benefits. 34 (y) "Military leave without pay and benefits" refers to SB314 Engrossed -11- LRB9207506EGfg 1 individuals who enlist for active duty in a regular component 2 of the U.S. Armed Forces or other duty not specified or 3 authorized under military leave with pay and benefits. 4 (z) "Community college benefit recipient" means a person 5 who: 6 (1) is not a "member" as defined in this Section; 7 and 8 (2) is receiving a monthly survivor's annuity or 9 retirement annuity under Article 15 of the Illinois 10 Pension Code; and 11 (3) either (i) was a full-time employee of a 12 community college district or an association of community 13 college boards created under the Public Community College 14 Act (other than an employee whose last employer under 15 Article 15 of the Illinois Pension Code was a community 16 college district subject to Article VII of the Public 17 Community College Act) and was eligible to participate in 18 a group health benefit plan as an employee during the 19 time of that employmentwith a community college district20(other than a community college district subject to21Article VII of the Public Community College Act) or an22association of community college boards, or a part-time 23 employee of a community college district (other than a 24 community college district subject to Article VII of the 25 Public Community College Act) who was eligible to 26 participate in a group health benefit plan as an employee 27 during the time of that employment and who elected to 28 participate in the program established under Section 6.9 29 as provided in subsection (c) of that Section; or (ii) is 30 the survivor of a person described in item (i). 31 (aa) "Community college dependent beneficiary" means a 32 person who: 33 (1) is not a "member" or "dependent" as defined in 34 this Section; and SB314 Engrossed -12- LRB9207506EGfg 1 (2) is a community college benefit recipient's: (A) 2 spouse, (B) dependent parent who is receiving at least 3 half of his or her support from the community college 4 benefit recipient, or (C) unmarried natural or adopted 5 child who is (i) under age 19, or (ii) enrolled as a 6 full-time student in an accredited school, financially 7 dependent upon the community college benefit recipient, 8 eligible to be claimed as a dependent for income tax 9 purposes and under age 23, or (iii) age 19 or over and 10 mentally or physically handicapped. 11 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448, 12 eff. 8-16-97; 90-497, eff. 8-18-97; 90-511, eff. 8-22-97; 13 90-582, eff. 5-27-98; 90-655, eff. 7-30-98; 91-390, eff. 14 7-30-99; 91-395, eff. 7-30-99; 91-617, eff, 8-19-99; revised 15 10-19-99.) 16 (5 ILCS 375/6.9) 17 Sec. 6.9. Health benefits for community college benefit 18 recipients and community college dependent beneficiaries. 19 (a) Purpose. It is the purpose of this amendatory Act 20 of 1997 to establish a uniform program of health benefits for 21 community college benefit recipients and their dependent 22 beneficiaries under the administration of the Department of 23 Central Management Services. 24 (b) Creation of program. Beginning July 1, 1999, the 25 Department of Central Management Services shall be 26 responsible for administering a program of health benefits 27 for community college benefit recipients and community 28 college dependent beneficiaries under this Section. The 29 State Universities Retirement System and the boards of 30 trustees of the various community college districts shall 31 cooperate with the Department in this endeavor. 32 (c) Eligibility. All community college benefit 33 recipients and community college dependent beneficiaries SB314 Engrossed -13- LRB9207506EGfg 1 shall be eligible to participate in the program established 2 under this Section, without any interruption or delay in 3 coverage or limitation as to pre-existing medical conditions. 4 Eligibility to participate shall be determined by the State 5 Universities Retirement System. Eligibility information 6 shall be communicated to the Department of Central Management 7 Services in a format acceptable to the Department. 8 Beginning January 1, 2001, a part-time employee of a 9 community college district (other than a community college 10 district subject to Article VII of the Public Community 11 College Act) who is eligible to participate in a group health 12 benefit plan as an employee may elect to participate in the 13 program established under this Section. The election must be 14 in writing and filed with the employer and the State 15 Universities Retirement System. A person making this 16 election and the employer must make the contributions 17 specified in Section 6.10. 18 (d) Coverage. The health benefit coverage provided 19 under this Section shall be a program of health, dental, and 20 vision benefits. 21 The program of health benefits under this Section may 22 include any or all of the benefit limitations, including but 23 not limited to a reduction in benefits based on eligibility 24 for federal medicare benefits, that are provided under 25 subsection (a) of Section 6 of this Act for other health 26 benefit programs under this Act. 27 (e) Insurance rates and premiums. The Director shall 28 determine the insurance rates and premiums for community 29 college benefit recipients and community college dependent 30 beneficiaries. Rates and premiums may be based in part on 31 age and eligibility for federal Medicare coverage. The 32 Director shall also determine premiums that will allow for 33 the establishment of an actuarially sound reserve for this 34 program. SB314 Engrossed -14- LRB9207506EGfg 1 The cost of health benefits under the program shall be 2 paid as follows: 3 (1) For a community college benefit recipient, up 4 to 75% of the total insurance rate shall be paid from the 5 Community College Health Insurance Security Fund. 6 (2) The balance of the rate of insurance, including 7 the entire premium for any coverage for community college 8 dependent beneficiaries that has been elected, shall be 9 paid by deductions authorized by the community college 10 benefit recipient to be withheld from his or her monthly 11 annuity or benefit payment from the State Universities 12 Retirement System; except that (i) if the balance of the 13 cost of coverage exceeds the amount of the monthly 14 annuity or benefit payment, the difference shall be paid 15 directly to the State Universities Retirement System by 16 the community college benefit recipient, and (ii) all or 17 part of the balance of the cost of coverage may, at the 18 option of the board of trustees of the community college 19 district, be paid to the State Universities Retirement 20 System by the board of the community college district 21 from which the community college benefit recipient 22 retired. The State Universities Retirement System shall 23 promptly deposit all moneys withheld by or paid to it 24 under this subdivision (e)(2) into the Community College 25 Health Insurance Security Fund. These moneys shall not 26 be considered assets of the State Universities Retirement 27 System. 28 (f) Financing. All revenues arising from the 29 administration of the health benefit program established 30 under this Section shall be deposited into the Community 31 College Health Insurance Security Fund, which is hereby 32 created as a nonappropriated trust fund to be held outside 33 the State Treasury, with the State Treasurer as custodian. 34 Any interest earned on moneys in the Community College Health SB314 Engrossed -15- LRB9207506EGfg 1 Insurance Security Fund shall be deposited into the Fund. 2 Moneys in the Community College Health Insurance Security 3 Fund shall be used only to pay the costs of the health 4 benefit program established under this Section, including 5 associated administrative costs and the establishment of a 6 program reserve. Beginning January 1, 1999, the Department 7 of Central Management Services may make expenditures from the 8 Community College Health Insurance Security Fund for those 9 costs. 10 (g) Contract for benefits. The Director shall by 11 contract, self-insurance, or otherwise make available the 12 program of health benefits for community college benefit 13 recipients and their community college dependent 14 beneficiaries that is provided for in this Section. The 15 contract or other arrangement for the provision of these 16 health benefits shall be on terms deemed by the Director to 17 be in the best interest of the State of Illinois and the 18 community college benefit recipients based on, but not 19 limited to, such criteria as administrative cost, service 20 capabilities of the carrier or other contractor, and the 21 costs of the benefits. 22 (h) Continuation of program. It is the intention of the 23 General Assembly that the program of health benefits provided 24 under this Section be maintained on an ongoing, affordable 25 basis. The program of health benefits provided under this 26 Section may be amended by the State and is not intended to be 27 a pension or retirement benefit subject to protection under 28 Article XIII, Section 5 of the Illinois Constitution. 29 (i) Other health benefit plans. A health benefit plan 30 provided by a community college district (other than a 31 community college district subject to Article VII of the 32 Public Community College Act) under the terms of a collective 33 bargaining agreement in effect on or prior to the effective 34 date of this amendatory Act of 1997 shall continue in force SB314 Engrossed -16- LRB9207506EGfg 1 according to the terms of that agreement, unless otherwise 2 mutually agreed by the parties to that agreement and the 3 affected retiree. A community college benefit recipient or 4 community college dependent beneficiary whose coverage under 5 such a plan expires shall be eligible to begin participating 6 in the program established under this Section without any 7 interruption or delay in coverage or limitation as to 8 pre-existing medical conditions. 9 This Act does not prohibit any community college district 10 from offering additional health benefits for its retirees or 11 their dependents or survivors. 12 (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.) 13 (5 ILCS 375/6.10) 14 Sec. 6.10. Contributions to the Community College Health 15 Insurance Security Fund. 16 (a) Beginning January 1, 1999, every active contributor 17 of the State Universities Retirement System (established 18 under Article 15 of the Illinois Pension Code) who (1) is a 19 full-time employee of a community college district (other 20 than a community college district subject to Article VII of 21 the Public Community College Act) or an association of 22 community college boards, or a part-time employee who has 23 elected to participate under subsection (c) of Section 6.9 24 and (2) is not an employee as defined in Section 3 of this 25 Act shall make contributions toward the cost of community 26 college annuitant and survivor health benefits at the rate of 27 0.50% of salary. 28 These contributions shall be deducted by the employer and 29 paid to the State Universities Retirement System as service 30 agent for the Department of Central Management Services. The 31 System may use the same processes for collecting the 32 contributions required by this subsection that it uses to 33 collect the contributions received from those employees under SB314 Engrossed -17- LRB9207506EGfg 1 Section 15-157 of the Illinois Pension Code. An employer may 2 agree to pick up or pay the contributions required under this 3 subsection on behalf of the employee; such contributions 4 shall be deemed to have been paid by the employee. 5 The State Universities Retirement System shall promptly 6 deposit all moneys collected under this subsection (a) into 7 the Community College Health Insurance Security Fund created 8 in Section 6.9 of this Act. The moneys collected under this 9 Section shall be used only for the purposes authorized in 10 Section 6.9 of this Act and shall not be considered to be 11 assets of the State Universities Retirement System. 12 Contributions made under this Section are not transferable to 13 other pension funds or retirement systems and are not 14 refundable upon termination of service. 15 (b) Beginning January 1, 1999, every community college 16 district (other than a community college district subject to 17 Article VII of the Public Community College Act) or 18 association of community college boards that is an employer 19 under the State Universities Retirement System shall 20 contribute toward the cost of the community college health 21 benefits provided under Section 6.9 of this Act an amount 22 equal to 0.50% of the salary paid to its full-time employees 23 who participate in the State Universities Retirement System 24 and are not members as defined in Section 3 of this Act and 25 each of its part-time employees who have elected to 26 participate under subsection (c) of Section 6.9. 27 These contributions shall be paid by the employer to the 28 State Universities Retirement System as service agent for the 29 Department of Central Management Services. The System may 30 use the same processes for collecting the contributions 31 required by this subsection that it uses to collect the 32 contributions received from those employers under Section 33 15-155 of the Illinois Pension Code. 34 The State Universities Retirement System shall promptly SB314 Engrossed -18- LRB9207506EGfg 1 deposit all moneys collected under this subsection (b) into 2 the Community College Health Insurance Security Fund created 3 in Section 6.9 of this Act. The moneys collected under this 4 Section shall be used only for the purposes authorized in 5 Section 6.9 of this Act and shall not be considered to be 6 assets of the State Universities Retirement System. 7 Contributions made under this Section are not transferable to 8 other pension funds or retirement systems and are not 9 refundable upon termination of service. 10 (c) On or before November 15 of each year, the Board of 11 Trustees of the State Universities Retirement System shall 12 certify to the Governor, the Director of Central Management 13 Services, and the State Comptroller its estimate of the total 14 amount of contributions to be paid under subsection (a) of 15 this Section for the next fiscal year. The certification 16 shall include a detailed explanation of the methods and 17 information that the Board relied upon in preparing its 18 estimate. As soon as possible after the effective date of 19 this Section, the Board shall submit its estimate for fiscal 20 year 1999. 21 (d) Beginning in fiscal year 1999, on the first day of 22 each month, or as soon thereafter as may be practical, the 23 State Treasurer and the State Comptroller shall transfer from 24 the General Revenue Fund to the Community College Health 25 Insurance Security Fund 1/12 of the annual amount 26 appropriated for that fiscal year to the State Comptroller 27 for deposit into the Community College Health Insurance 28 Security Fund under Section 1.4 of the State Pension Funds 29 Continuing Appropriation Act. 30 (e) Except where otherwise specified in this Section, 31 the definitions that apply to Article 15 of the Illinois 32 Pension Code apply to this Section. 33 (Source: P.A. 90-497, eff. 8-18-97; 91-887, eff. 7-6-00.) SB314 Engrossed -19- LRB9207506EGfg 1 Section 90. The State Mandates Act is amended by adding 2 Section 8.25 as follows: 3 (30 ILCS 805/8.25 new) 4 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 5 and 8 of this Act, no reimbursement by the State is required 6 for the implementation of any mandate created by this 7 amendatory Act of the 92nd General Assembly. 8 Section 99. Effective date. This Act takes effect upon 9 becoming law.