Public Act 102-0714
 
SB3197 EnrolledLRB102 25208 SPS 34478 b


  
    AN ACT concerning employment.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The State Employees Group Insurance Act of 1971 
is amended  by changing Section 3 as follows:
 


    (5 ILCS 375/3)  (from Ch. 127, par. 523)

    Sec. 3. Definitions. Unless the context otherwise 
requires, the
following words and phrases as used in this Act 
shall have the following
meanings.  The Department may define 
these and other words and phrases
separately for the purpose 
of implementing specific programs providing benefits
under 
this Act.

    (a) "Administrative service organization" means any 
person, firm or
corporation experienced in the handling of 
claims which is
fully qualified, financially sound and capable 
of meeting the service
requirements of a contract of 
administration executed with the Department.

    (b) "Annuitant" means (1) an employee who retires, or has 
retired,
on or after January 1, 1966 on an immediate annuity 
under the provisions
of Articles 2, 14 (including an employee 
who has elected to receive an alternative retirement 
cancellation payment under Section 14-108.5 of the Illinois 
Pension Code in lieu of an annuity or who meets the criteria 
for retirement, but in lieu of receiving an annuity under that 
Article has elected to receive an accelerated pension benefit 
payment under Section 14-147.5 of that Article), 15 (including 
an employee who has retired under the optional
retirement 
program established under Section 15-158.2 or who meets the 
criteria for retirement but in lieu of receiving an annuity 
under that Article has elected to receive an accelerated 
pension benefit payment under Section 15-185.5 of the 
Article), paragraph
paragraphs (2), (3), or (5) of Section 
16-106 (including an employee who meets the criteria for 
retirement, but in lieu of receiving an annuity under that 
Article has elected to receive an accelerated pension benefit 
payment under Section 16-190.5 of the Illinois Pension Code), 
or
Article 18 of the Illinois Pension Code; (2) any person who 
was receiving
group insurance coverage under this Act as of 
March 31, 1978 by
reason of his status as an annuitant, even 
though the annuity in relation
to which such coverage was 
provided is a proportional annuity based on less
than the 
minimum period of service required for a retirement annuity in

the system involved; (3) any person not otherwise covered by 
this Act
who has retired as a participating member under 
Article 2 of the Illinois
Pension Code but is ineligible for 
the retirement annuity under Section
2-119 of the Illinois 
Pension Code; (4) the spouse of any person who
is receiving a 
retirement annuity under Article 18 of the Illinois Pension

Code and who is covered under a group health insurance program 
sponsored
by a governmental employer other than the State of 
Illinois and who has
irrevocably elected to waive his or her 
coverage under this Act and to have
his or her spouse 
considered as the "annuitant" under this Act and not as
a 
"dependent"; or (5) an employee who retires, or has retired, 
from a
qualified position, as determined according to rules 
promulgated by the
Director, under a qualified local 
government, a qualified rehabilitation
facility, a qualified 
domestic violence shelter or service, or a qualified child 
advocacy center. (For definition
of "retired employee", see 
(p) post).

    (b-5) (Blank).

    (b-6) (Blank).

    (b-7) (Blank).

    (c) "Carrier" means (1) an insurance company, a 
corporation organized
under the Limited Health Service 
Organization Act or the Voluntary Health
Services Plans Act, a 
partnership, or other nongovernmental organization,
which is 
authorized to do group life or group health insurance business 
in
Illinois, or (2) the State of Illinois as a self-insurer.

    (d) "Compensation" means salary or wages payable on a 
regular
payroll by the State Treasurer on a warrant of the 
State Comptroller out
of any State, trust or federal fund, or 
by the Governor of the State
through a disbursing officer of 
the State out of a trust or out of
federal funds, or by any 
Department out of State, trust, federal or
other funds held by 
the State Treasurer or the Department, to any person
for 
personal services currently performed, and ordinary or 
accidental
disability benefits under Articles 2, 14, 15 
(including ordinary or accidental
disability benefits under 
the optional retirement program established under
Section 
15-158.2), paragraph paragraphs (2), (3), or (5) of
Section 
16-106, or Article 18 of the Illinois Pension Code, for 
disability
incurred after January 1, 1966, or benefits payable 
under the Workers'
Compensation or Occupational Diseases Act 
or benefits payable under a sick
pay plan established in 
accordance with Section 36 of the State Finance Act.

"Compensation" also means salary or wages paid to an employee 
of any
qualified local government, qualified rehabilitation 
facility,
qualified domestic violence shelter or service, or 
qualified child advocacy center.

    (e) "Commission" means the State Employees Group Insurance 
Advisory
Commission authorized by this Act. Commencing July 1, 
1984, "Commission"
as used in this Act means the Commission on 
Government Forecasting and Accountability as
established by 
the Legislative Commission Reorganization Act of 1984.

    (f) "Contributory", when referred to as contributory 
coverage, shall
mean optional coverages or benefits elected by 
the member toward the cost of
which such member makes 
contribution, or which are funded in whole or in part
through 
the acceptance of a reduction in earnings or the foregoing of 
an
increase in earnings by an employee, as distinguished from 
noncontributory
coverage or benefits which are paid entirely 
by the State of Illinois
without reduction of the member's 
salary.

    (g) "Department" means any department, institution, board,

commission, officer, court or any agency of the State 
government
receiving appropriations and having power to 
certify payrolls to the
Comptroller authorizing payments of 
salary and wages against such
appropriations as are made by 
the General Assembly from any State fund, or
against trust 
funds held by the State Treasurer and includes boards of

trustees of the retirement systems created by Articles 2, 14, 
15, 16, and
18 of the Illinois Pension Code.  "Department" also 
includes the Illinois
Comprehensive Health Insurance Board, 
the Board of Examiners established under
the Illinois Public 
Accounting Act, and the Illinois Finance Authority.

    (h) "Dependent", when the term is used in the context of 
the health
and life plan, means a member's spouse and any child 
(1) from
birth to age 26 including an adopted child, a child 
who lives with the
member from the time of the placement for 
adoption until entry
of an order of adoption, a stepchild or 
adjudicated child, or a child who lives with the member
if such 
member is a court appointed guardian of the child or (2)
 age 19 
or over who has a mental or physical disability from a cause 
originating prior to the age of 19 (age 26 if enrolled as an 
adult child dependent). For
the health plan only, the term 
"dependent" also includes (1) any person
enrolled prior to the 
effective date of this Section who is dependent upon
the 
member to the extent that the member may claim such person as a

dependent for income tax deduction purposes and (2) any person 
who
has received after June 30, 2000 an organ transplant and 
who is financially
dependent upon the member and eligible to 
be claimed as a dependent for income
tax purposes. A member 
requesting to cover any dependent must provide documentation 
as requested by the Department of Central Management Services 
and file with the Department any and all forms required by the 
Department. 

    (i) "Director" means the Director of the Illinois 
Department of Central
Management Services.

    (j) "Eligibility period" means the period of time a member 
has to
elect enrollment in programs or to select benefits 
without regard to
age, sex or health.

    (k) "Employee" means and includes each officer or employee 
in the
service of a department who (1) receives his 
compensation for
service rendered to the department on a 
warrant issued pursuant to a payroll
certified by a department 
or on a warrant or check issued and drawn by a
department upon 
a trust, federal or other fund or on a warrant issued
pursuant 
to a payroll certified by an elected or duly appointed officer

of the State or who receives payment of the performance of 
personal
services on a warrant issued pursuant to a payroll 
certified by a
Department and drawn by the Comptroller upon 
the State Treasurer against
appropriations made by the General 
Assembly from any fund or against
trust funds held by the State 
Treasurer, and (2) is employed full-time or
part-time in a 
position normally requiring actual performance of duty
during 
not less than 1/2 of a normal work period, as established by 
the
Director in cooperation with each department, except that 
persons elected
by popular vote will be considered employees 
during the entire
term for which they are elected regardless 
of hours devoted to the
service of the State, and (3) except 
that "employee" does not include any
person who is not 
eligible by reason of such person's employment to
participate 
in one of the State retirement systems under Articles 2, 14, 15

(either the regular Article 15 system or the optional 
retirement program
established under Section 15-158.2), or 18, 
or under paragraph (2), (3), or
(5) of Section 16-106, of the 
Illinois
Pension Code, but such term does include persons who 
are employed during
the 6-month 6 month qualifying period 
under Article 14 of the Illinois Pension
Code.  Such term also 
includes any person who (1) after January 1, 1966,
is 
receiving ordinary or accidental disability benefits under 
Articles
2, 14, 15 (including ordinary or accidental 
disability benefits under the
optional retirement program 
established under Section 15-158.2), paragraph paragraphs
(2), 
(3), or (5) of Section 16-106, or Article 18 of the
Illinois 
Pension Code, for disability incurred after January 1, 1966, 
(2)
receives total permanent or total temporary disability 
under the Workers'
Compensation Act or Occupational Disease 
Act as a result of injuries
sustained or illness contracted in 
the course of employment with the
State of Illinois, or (3) is 
not otherwise covered under this Act and has
retired as a 
participating member under Article 2 of the Illinois Pension

Code but is ineligible for the retirement annuity under 
Section 2-119 of
the Illinois Pension Code.  However, a person 
who satisfies the criteria
of the foregoing definition of 
"employee" except that such person is made
ineligible to 
participate in the State Universities Retirement System by

clause (4) of subsection (a) of Section 15-107 of the Illinois 
Pension
Code is also an "employee" for the purposes of this 
Act.  "Employee" also
includes any person receiving or eligible 
for benefits under a sick pay
plan established in accordance 
with Section 36 of the State Finance Act.
"Employee" also 
includes (i) each officer or employee in the service of a

qualified local government, including persons appointed as 
trustees of
sanitary districts regardless of hours devoted to 
the service of the
sanitary district, (ii) each employee in 
the service of a qualified
rehabilitation facility, (iii) each 
full-time employee in the service of a
qualified domestic 
violence shelter or service, and (iv) each full-time employee 
in the service of a qualified child advocacy center, as 
determined according to
rules promulgated by the Director.

    (l) "Member" means an employee, annuitant, retired 
employee, or survivor. In the case of an annuitant or retired 
employee who first becomes an annuitant or retired employee on 
or after January 13, 2012 (the effective date of Public Act 
97-668), the individual must meet the minimum vesting 
requirements of the applicable retirement system in order to 
be eligible for group insurance benefits under that system.  In 
the case of a survivor who is not entitled to occupational 
death benefits pursuant to an applicable retirement system or 
death benefits pursuant to the Illinois Workers' Compensation 
Act, and who first becomes a survivor on or after January 13, 
2012 (the effective date of Public Act 97-668), the deceased 
employee, annuitant, or retired employee upon whom the annuity 
is based must have been eligible to participate in the group 
insurance system under the applicable retirement system in 
order for the survivor to be eligible for group insurance 
benefits under that system. 
    In the case of a survivor who is entitled to occupational 
death benefits pursuant to the deceased employee's applicable 
retirement system or death benefits pursuant to the Illinois 
Workers' Compensation Act, and first becomes a survivor on or 
after January 1, 2022, the survivor is eligible for group 
health insurance benefits regardless of the deceased 
employee's minimum vesting requirements under the applicable 
retirement system, with a State contribution rate of 100%, 
until an unmarried child dependent reaches the age of 18, or 
the age of 22 if the dependent child is a full-time student, or 
until the adult survivor becomes eligible for benefits under 
the federal Medicare health insurance program (Title XVIII of 
the Social Security Act, as added by Public Law 89-97). In the 
case of a survivor currently receiving occupational death 
benefits pursuant to the deceased employee's applicable 
retirement system or has received death benefits pursuant to 
the Illinois Workers' Compensation Act,  who first became a 
survivor prior to January 1, 2022, the survivor is eligible 
for group health insurance benefits regardless of the deceased 
employee's minimum vesting requirements under the applicable 
retirement system, with a State contribution rate of 100%, 
until an unmarried child dependent reaches the age of 18, or 
the age of 22 if the dependent child is a full-time student, or 
until the adult survivor becomes eligible for benefits under 
the federal Medicare health insurance program (Title XVIII of 
the Social Security Act, as added by Public Law 89-97). The 
changes made by this amendatory Act of the 102nd General 
Assembly with respect to survivors who first became survivors 
prior to January 1, 2022 shall apply upon request of the 
survivor on or after the effective date of this amendatory Act 
of the 102nd General Assembly. 

    (m) "Optional coverages or benefits" means those coverages 
or
benefits available to the member on his or her voluntary 
election, and at
his or her own expense.

    (n) "Program" means the group life insurance, health 
benefits and other
employee benefits designed and contracted 
for by the Director under this Act.

    (o) "Health plan" means a health benefits
program offered

by the State of Illinois for persons eligible for the plan.

    (p) "Retired employee" means any person who would be an 
annuitant as
that term is defined herein but for the fact that 
such person retired prior to
January 1, 1966.  Such term also 
includes any person formerly employed by
the University of 
Illinois in the Cooperative Extension Service who would
be an 
annuitant but for the fact that such person was made 
ineligible to
participate in the State Universities Retirement 
System by clause (4) of
subsection (a) of Section 15-107 of the 
Illinois
Pension Code.

    (q) "Survivor" means a person receiving an annuity as a 
survivor of an
employee or of an annuitant.  "Survivor" also 
includes: (1) the surviving
dependent of a person who 
satisfies the definition of "employee" except that
such person 
is made ineligible to participate in the State Universities

Retirement System by clause (4) of subsection (a)
of Section 
15-107 of the Illinois Pension Code; (2) the surviving

dependent of any person formerly employed by the University of 
Illinois in
the Cooperative Extension Service who would be an 
annuitant except for the
fact that such person was made 
ineligible to participate in the State
Universities Retirement 
System by clause (4) of subsection (a) of Section
15-107 of the 
Illinois Pension Code; (3) the surviving dependent of a person 
who was an annuitant under this Act by virtue of receiving an 
alternative retirement cancellation payment under Section 
14-108.5 of the Illinois Pension Code; and (4) a person who 
would be receiving an annuity as a survivor of an annuitant 
except that the annuitant elected on or after June 4, 2018 to 
receive an accelerated pension benefit payment under Section 
14-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code 
in lieu of receiving an annuity.

    (q-2) "SERS" means the State Employees' Retirement System 
of Illinois, created under Article 14 of the Illinois Pension 
Code.

    (q-3) "SURS" means the State Universities Retirement 
System, created under Article 15 of the Illinois Pension Code.

    (q-4) "TRS" means the Teachers' Retirement System of the 
State of Illinois, created under Article 16 of the Illinois 
Pension Code.

    (q-5) (Blank).


    (q-6) (Blank).

    (q-7) (Blank).

    (r) "Medical services" means the services provided within 
the scope
of their licenses by practitioners in all categories 
licensed under the
Medical Practice Act of 1987.

    (s) "Unit of local government" means any county, 
municipality,
township, school district (including a 
combination of school districts under
the Intergovernmental 
Cooperation Act), special district or other unit,
designated 
as a
unit of local government by law, which exercises limited 
governmental
powers or powers in respect to limited 
governmental subjects, any
not-for-profit association with a 
membership that primarily includes
townships and township 
officials, that has duties that include provision of
research 
service, dissemination of information, and other acts for the

purpose of improving township government, and that is funded 
wholly or
partly in accordance with Section 85-15 of the 
Township Code; any
not-for-profit corporation or association, 
with a membership consisting
primarily of municipalities, that 
operates its own utility system, and
provides research, 
training, dissemination of information, or other acts to

promote cooperation between and among municipalities that 
provide utility
services and for the advancement of the goals 
and purposes of its
membership;
the Southern Illinois 
Collegiate Common Market, which is a consortium of higher

education institutions in Southern Illinois; the Illinois 
Association of
Park Districts; and any hospital provider that 
is owned by a county that has 100 or fewer hospital beds and 
has not already joined the program.  "Qualified
local 
government" means a unit of local government approved by the 
Director and
participating in a program created under 
subsection (i) of Section 10 of this
Act.

    (t) "Qualified rehabilitation facility" means any 
not-for-profit
organization that is accredited by the 
Commission on Accreditation of
Rehabilitation Facilities or 
certified by the Department
of Human Services (as successor to 
the Department of Mental Health
and Developmental 
Disabilities) to provide services to persons with
disabilities

and which receives funds from the State of Illinois for 
providing those
services, approved by the Director and 
participating in a program created
under subsection (j) of 
Section 10 of this Act.

    (u) "Qualified domestic violence shelter or service" means 
any Illinois
domestic violence shelter or service and its 
administrative offices funded
by the Department of Human 
Services (as successor to the Illinois Department of
Public 
Aid),
approved by the Director and
participating in a program 
created under subsection (k) of Section 10.

    (v) "TRS benefit recipient" means a person who:

        (1) is not a "member" as defined in this Section; and

        (2) is receiving a monthly benefit or retirement 
    annuity
under Article 16 of the Illinois Pension Code or 
    would be receiving such monthly benefit or retirement 
    annuity except that the benefit recipient elected on or 
    after June 4, 2018 to receive an accelerated pension 
    benefit payment under Section 16-190.5 of the Illinois 
    Pension Code in lieu of receiving an annuity; and

        (3) either (i) has at least 8 years of creditable 
    service under Article
16 of the Illinois Pension Code, or 
    (ii) was enrolled in the health insurance
program offered 
    under that Article on January 1, 1996, or (iii) is the 
    survivor
of a benefit recipient who had at least 8
years of 
    creditable service under Article 16 of the Illinois 
    Pension Code or
was enrolled in the health insurance 
    program offered under that Article on June 21, 1995 (the 
    effective date of Public Act 89-25), or (iv) is a 
    recipient or
survivor of a recipient of a disability 
    benefit under Article 16 of the
Illinois Pension Code.

    (w) "TRS dependent beneficiary" means a person who:

        (1) is not a "member" or "dependent" as defined in 
    this Section; and

        (2) is a TRS benefit recipient's: (A) spouse, (B) 
    dependent parent who
is receiving at least half of his or 
    her support from the TRS benefit
recipient, or (C) 
    natural, step, adjudicated, or adopted child who is (i) 
    under age 26, (ii) was, on January 1, 1996, participating 
    as a dependent
beneficiary in the health insurance program 
    offered under Article 16 of the
Illinois Pension Code, or 
    (iii) age 19 or over who has a mental or physical 
    disability from a cause originating prior to the age of 19 
    (age 26 if enrolled as an adult child).

    "TRS dependent beneficiary" does not include, as indicated 
under paragraph (2) of this subsection (w), a dependent of the 
survivor of a TRS benefit recipient who first becomes a 
dependent of a survivor of a TRS benefit recipient on or after 
January 13, 2012 (the effective date of Public Act 97-668) 
unless that dependent would have been eligible for coverage as 
a dependent of the deceased TRS benefit recipient upon whom 
the survivor benefit is based. 
    (x) "Military leave" refers to individuals in basic

training for reserves, special/advanced training, annual 
training, emergency
call up, activation by the President of 
the United States, or any other training or duty in service to 
the United States Armed Forces.

    (y) (Blank).

    (z) "Community college benefit recipient" means a person 
who:

        (1) is not a "member" as defined in this Section; and

        (2) is receiving a monthly survivor's annuity or 
    retirement annuity
under Article 15 of the Illinois 
    Pension Code or would be receiving such monthly survivor's 
    annuity or retirement annuity except that the benefit 
    recipient elected on or after June 4, 2018 to receive an 
    accelerated pension benefit payment under Section 15-185.5 
    of the Illinois Pension Code in lieu of receiving an 
    annuity; and

        (3) either (i) was a full-time employee of a community 
    college district or
an association of community college 
    boards created under the Public Community
College Act 
    (other than an employee whose last employer under Article 
    15 of the
Illinois Pension Code was a community college 
    district subject to Article VII
of the Public Community 
    College Act) and was eligible to participate in a group

    health benefit plan as an employee during the time of 
    employment with a
community college district (other than a 
    community college district subject to
Article VII of the 
    Public Community College Act) or an association of 
    community
college boards, or (ii) is the survivor of a 
    person described in item (i).

    (aa) "Community college dependent beneficiary" means a 
person who:

        (1) is not a "member" or "dependent" as defined in 
    this Section; and

        (2) is a community college benefit recipient's: (A) 
    spouse, (B) dependent
parent who is receiving at least 
    half of his or her support from the community
college 
    benefit recipient, or (C) natural, step, adjudicated, or 
    adopted child who is (i)
under age 26, or (ii)
age 19 or 
    over and has a mental or physical disability from a cause 
    originating prior to the  age of 19 (age 26 if enrolled as 
    an adult child).

    "Community college dependent beneficiary" does not 
include, as indicated under paragraph (2) of this subsection 
(aa), a dependent of the survivor of a community college 
benefit recipient who first becomes a dependent of a survivor 
of a community college benefit recipient on or after January 
13, 2012 (the effective date of Public Act 97-668) unless that 
dependent would have been eligible for coverage as a dependent 
of the deceased community college benefit recipient upon whom 
the survivor annuity is based. 
    (bb) "Qualified child advocacy center" means any Illinois 
child advocacy center and its administrative offices funded by 
the Department of Children and Family Services, as defined by 
the Children's Advocacy Center Act (55 ILCS 80/), approved by 
the Director and participating in a program created under 
subsection (n) of Section 10.

    (cc) "Placement for adoption" means the assumption and 
retention by a member of a legal obligation for total or 
partial support of a child in anticipation of adoption of the 
child. The child's placement with the member terminates upon 
the termination of such legal obligation. 
(Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21; 
revised 12-2-21.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.