Public Act 93-0042

SB1701 Enrolled                      LRB093 02819 LRD 02835 b

    AN ACT in relation to public employee benefits.

    Be it  enacted  by  the  People  of  the  State  of  Illinois,
represented in the General Assembly:

    Section 5.  The  Illinois  Pension  Code  is  amended  by
changing Sections 5-167.5, 6-142.2, 8-164.1, and 11-160.1 and
adding Sections 8-164.2 and 11-160.2  as follows:

    (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
    Sec. 5-167.5.  Payments to city Group health benefit.
    (a)  For  the  purposes of this Section, "city annuitant"
means a person  receiving  an  age  and  service  annuity,  a
widow's  annuity,  a  child's  annuity,  or a minimum annuity
under this Article as a direct result of previous  employment
by the City of Chicago ("the city").
    (b)  The  board  shall  pay to the city, on behalf of the
board's city annuitants who participate in any of the  city's
health care plans, the following amounts:
         (1)  From  July  1,  2003 through June 30, 2008, $85
    per month for each such annuitant who is not eligible  to
    receive Medicare benefits and $55 per month for each such
    annuitant who is eligible to receive Medicare benefits.
         (2)  From  July  1,  2008 through June 30, 2013, $95
    per month for each such annuitant who is not eligible  to
    receive Medicare benefits and $65 per month for each such
    annuitant who is eligible to receive Medicare benefits.
    The  payments  described in this subsection shall be paid
from the  tax  levy  authorized  under  Section  5-168;  such
amounts  shall  be credited to the reserve for group hospital
care and group medical and surgical plan  benefits,  and  all
payments  to the city required under this subsection shall be
charged against it.
    (c)  The city health  care  plans  referred  to  in  this
Section  and  the  board's  payments  to  the city under this
Section are not and shall not be construed to be  pension  or
retirement  benefits for the purposes of Section 5 of Article
XIII of the Illinois Constitution of 1970.
    (a)  For the purposes of this  Section:  (1)  "annuitant"
means  a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's  prior  service
annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous  employment  by  the  City  of  Chicago
(hereinafter,  in  this  Section,  "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1)  who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant"  means  an  annuitant described in item (1) who is
not eligible for Medicare benefits.
    (b)  The  city  shall  offer  group  health  benefits  to
annuitants and their eligible  dependents  through  June  30,
2003.   The  basic city health care plan available as of June
30, 1988 (hereinafter called the basic city plan) shall cease
to be a plan offered by the  city,  except  as  specified  in
subparagraphs  (4)  and (5) below, and shall be closed to new
enrollment or transfer of coverage for any non-Medicare  Plan
annuitant  as  of  June  27,  1997.   The  city  shall  offer
non-Medicare  Plan  annuitants  and their eligible dependents
the option of enrolling in its Annuitant  Preferred  Provider
Plan  and  may offer additional plans for any annuitant.  The
city may amend, modify, or terminate any  of  its  additional
plans  at  its sole discretion.  If the city offers more than
one annuitant  plan,  the  city  shall  allow  annuitants  to
convert  coverage  from  one  city annuitant plan to another,
except the basic city plan, during times  designated  by  the
city,  which  periods  of time shall occur at least annually.
For the period dating from June 27,  1997  through  June  30,
2003,  monthly  premium rates may be increased for annuitants
during the time of their participation in non-Medicare plans,
except as provided in subparagraphs (1) through (4)  of  this
subsection.
         (1)  For  non-Medicare  Plan  annuitants who retired
    prior to  January  1,  1988,  the  annuitant's  share  of
    monthly premium for non-Medicare Plan coverage only shall
    not  exceed the highest premium rate chargeable under any
    city non-Medicare Plan annuitant coverage as of  December
    1, 1996.
         (2)  For  non-Medicare Plan annuitants who retire on
    or after  January  1,  1988,  the  annuitant's  share  of
    monthly premium for non-Medicare Plan coverage only shall
    be  the  rate in effect on December 1, 1996, with monthly
    premium increases to take effect no sooner than April  1,
    1998  at  the  lower  of  (i) the premium rate determined
    pursuant to subsection (g) or (ii) 10% of the immediately
    previous month's rate for similar coverage.
         (3)  In  no  event  shall  any   non-Medicare   Plan
    annuitant's  share  of  monthly  premium for non-Medicare
    Plan coverage  exceed  10%  of  the  annuitant's  monthly
    annuity.
         (4)  Non-Medicare  Plan  annuitants who are enrolled
    in the basic city plan as of July 1, 1998 may  remain  in
    the  basic city plan, if they so choose, on the condition
    that they are not entitled to the caps on rates set forth
    in subparagraphs (1) through (3), and their premium  rate
    shall   be   the   rate  determined  in  accordance  with
    subsections (c) and (g).
         (5)  Medicare  Plan  annuitants  who  are  currently
    enrolled in the basic city  plan  for  Medicare  eligible
    annuitants  may  remain  in that plan, if they so choose,
    through June 30, 2003.  Annuitants shall not  be  allowed
    to  enroll  in  or  transfer into the basic city plan for
    Medicare eligible annuitants on or after  July  1,  1999.
    The   city   shall   continue   to   offer  annuitants  a
    supplemental  Medicare   Plan   for   Medicare   eligible
    annuitants  through June 30, 2003, and the city may offer
    additional plans to Medicare eligible annuitants  in  its
    sole  discretion.   All  Medicare  Plan annuitant monthly
    rates shall be determined in accordance with  subsections
    (c) and (g).
    (c)  The  city  shall  pay 50% of the aggregated costs of
the  claims  or  premiums,  whichever   is   applicable,   as
determined  in  accordance with subsection (g), of annuitants
and their dependents under all health care plans  offered  by
the  city.  The city may reduce its obligation by application
of  price  reductions  obtained  as  a  result  of  financial
arrangements with providers or plan administrators.
    (d)  From January 1, 1993 until June 30, 2003, the  board
shall  pay  to  the  city  on  behalf  of each of the board's
annuitants who chooses to participate in any  of  the  city's
plans the following amounts: up to a maximum of $75 per month
for  each  such  annuitant  who  is  not qualified to receive
medicare benefits, and up to a maximum of $45 per  month  for
each  such  annuitant  who  is  qualified to receive medicare
benefits.
    The payments described in this subsection shall  be  paid
from  the  tax  levy  authorized  under  Section  5-168; such
amounts shall be credited to the reserve for  group  hospital
care  and  group  medical and surgical plan benefits, and all
payments to the city required under this subsection shall  be
charged against it.
    (e)  The city's obligations under subsections (b) and (c)
shall  terminate  on  June  30,  2003,  except with regard to
covered expenses incurred but not paid as of that date.  This
subsection shall not affect other  obligations  that  may  be
imposed by law.
    (f)  The  group  coverage plans described in this Section
are  not  and  shall  not  be  construed  to  be  pension  or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
    (g)  For each annuitant plan offered  by  the  city,  the
aggregate  cost  of claims, as reflected in the claim records
of the plan administrator, shall be estimated  by  the  city,
based upon a written determination by a qualified independent
actuary  to  be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan  offered
by  the  city  is  more  than  the  estimated  amount  to  be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid  pursuant  to  subsection  (d)  and by the other pension
boards on  behalf  of  other  participating  annuitants,  the
difference  shall  be paid by all annuitants participating in
the plan, except as provided in subsection  (b).   The  city,
based  upon  the  determination  of  the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants.   The board may deduct the amounts to be paid  by
its  annuitants  from  the  participating annuitants' monthly
annuities.
    If it is determined from the city's annual audit, or from
audited experience data, that the total amount  paid  by  all
participating annuitants was more or less than the difference
between  (1)  the  cost  of  providing  the group health care
plans, and (2) the sum of the amount to be paid by  the  city
as  determined  under  subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and  the
city  shall  account  for the excess or shortfall in the next
year's  payments  by  annuitants,  except  as   provided   in
subsection (b).
    (h)  An  annuitant  may  elect to terminate coverage in a
plan at the end of any month, which election shall  terminate
the  annuitant's  obligation  to contribute toward payment of
the excess described in subsection (g).
    (i)  The city shall advise  the  board  of  all  proposed
premium  increases  for health care at least 75 days prior to
the effective date of the change, and any increase  shall  be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)

    (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
    Sec. 6-164.2.  Payments to city Group health benefit.
    (a)  For  the  purposes of this Section, "city annuitant"
means a person  receiving  an  age  and  service  annuity,  a
widow's  annuity,  a  child's  annuity,  or a minimum annuity
under this Article as a direct result of previous  employment
by the City of Chicago ("the city").
    (b)  The  board  shall  pay to the city, on behalf of the
board's city annuitants who participate in any of the  city's
health care plans, the following amounts:
         (1)  From  July  1,  2003 through June 30, 2008, $85
    per month for each such annuitant who is not eligible  to
    receive Medicare benefits and $55 per month for each such
    annuitant who is eligible to receive Medicare benefits.
         (2)  From  July  1,  2008 through June 30, 2013, $95
    per month for each such annuitant who is not eligible  to
    receive Medicare benefits and $65 per month for each such
    annuitant who is eligible to receive Medicare benefits.
    The  payments  described in this subsection shall be paid
from the  tax  levy  authorized  under  Section  6-165;  such
amounts  shall  be credited to the reserve for group hospital
care and group medical and surgical plan  benefits,  and  all
payments  to the city required under this subsection shall be
charged against it.
    (c)  The city health  care  plans  referred  to  in  this
Section  and  the  board's  payments  to  the city under this
Section are not and shall not be construed to be  pension  or
retirement  benefits for the purposes of Section 5 of Article
XIII of the Illinois Constitution of 1970.
    (a)  For the purposes of this  Section:  (1)  "annuitant"
means  a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's  prior  service
annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous  employment  by  the  City  of  Chicago
(hereinafter,  in  this  Section,  "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1)  who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant"  means  an  annuitant described in item (1) who is
not eligible for Medicare benefits.
    (b)  The  city  shall  offer  group  health  benefits  to
annuitants and their eligible  dependents  through  June  30,
2003.  The  basic  city health care plan available as of June
30, 1988 (hereinafter called the basic city plan) shall cease
to be a plan offered by the  city,  except  as  specified  in
subparagraphs  (4)  and (5) below, and shall be closed to new
enrollment or transfer of coverage for any non-Medicare  Plan
annuitant  as  of  June  27,  1997.   The  city  shall  offer
non-Medicare  Plan  annuitants  and their eligible dependents
the option of enrolling in its Annuitant  Preferred  Provider
Plan  and  may offer additional plans for any annuitant.  The
city may amend, modify, or terminate any  of  its  additional
plans  at  its sole discretion.  If the city offers more than
one annuitant  plan,  the  city  shall  allow  annuitants  to
convert  coverage  from  one  city annuitant plan to another,
except the basic city plan, during times  designated  by  the
city,  which  periods  of time shall occur at least annually.
For the period dating from June 27,  1997  through  June  30,
2003,  monthly  premium rates may be increased for annuitants
during the time of their participation in non-Medicare plans,
except as provided in subparagraphs (1) through (4)  of  this
subsection.
         (1)  For  non-Medicare  Plan  annuitants who retired
    prior to  January  1,  1988,  the  annuitant's  share  of
    monthly premium for non-Medicare Plan coverage only shall
    not  exceed the highest premium rate chargeable under any
    city non-Medicare Plan annuitant coverage as of  December
    1, 1996.
         (2)  For  non-Medicare Plan annuitants who retire on
    or after  January  1,  1988,  the  annuitant's  share  of
    monthly premium for non-Medicare Plan coverage only shall
    be  the  rate in effect on December 1, 1996, with monthly
    premium increases to take effect no sooner than April  1,
    1998  at  the  lower  of  (i) the premium rate determined
    pursuant to subsection (g) or (ii) 10% of the immediately
    previous month's rate for similar coverage.
         (3)  In  no  event  shall  any   non-Medicare   Plan
    annuitant's  share  of  monthly  premium for non-Medicare
    Plan coverage  exceed  10%  of  the  annuitant's  monthly
    annuity.
         (4)  Non-Medicare  Plan  annuitants who are enrolled
    in the basic city plan as of July 1, 1998 may  remain  in
    the  basic city plan, if they so choose, on the condition
    that they are not entitled to the caps on rates set forth
    in subparagraphs (1) through (3), and their premium  rate
    shall   be   the   rate  determined  in  accordance  with
    subsections (c) and (g).
         (5)  Medicare  Plan  annuitants  who  are  currently
    enrolled in the basic city  plan  for  Medicare  eligible
    annuitants  may  remain  in that plan, if they so choose,
    through June 30, 2003.  Annuitants shall not  be  allowed
    to  enroll  in  or  transfer into the basic city plan for
    Medicare eligible annuitants on or after  July  1,  1999.
    The   city   shall   continue   to   offer  annuitants  a
    supplemental  Medicare   Plan   for   Medicare   eligible
    annuitants  through June 30, 2003, and the city may offer
    additional plans to Medicare eligible annuitants  in  its
    sole  discretion.   All  Medicare  Plan annuitant monthly
    rates shall be determined in accordance with  subsections
    (c) and (g).
    (c)  The  city  shall  pay 50% of the aggregated costs of
the  claims  or  premiums,  whichever   is   applicable,   as
determined  in  accordance with subsection (g), of annuitants
and their dependents under all health care plans  offered  by
the  city.  The city may reduce its obligation by application
of  price  reductions  obtained  as  a  result  of  financial
arrangements with providers or plan administrators.
    (d)  From January 1, 1993 until June 30, 2003, the  board
shall  pay  to  the  city  on  behalf  of each of the board's
annuitants who chooses to participate in any  of  the  city's
plans the following amounts: up to a maximum of $75 per month
for  each  such  annuitant  who  is  not qualified to receive
medicare benefits, and up to a maximum of $45 per  month  for
each  such  annuitant  who  is  qualified to receive medicare
benefits.
    The payments described in this subsection shall  be  paid
from  the  tax  levy  authorized  under  Section  6-165; such
amounts shall be credited to the reserve for  group  hospital
care  and  group  medical and surgical plan benefits, and all
payments to the city required under this subsection shall  be
charged against it.
    (e)  The city's obligations under subsections (b) and (c)
shall  terminate  on  June  30,  2003,  except with regard to
covered expenses incurred but not paid as of that date.  This
subsection shall not affect other  obligations  that  may  be
imposed by law.
    (f)  The  group  coverage plans described in this Section
are  not  and  shall  not  be  construed  to  be  pension  or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
    (g)  For each annuitant plan offered  by  the  city,  the
aggregate  cost  of claims, as reflected in the claim records
of the plan administrator, shall be estimated  by  the  city,
based upon a written determination by a qualified independent
actuary  to  be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan  offered
by  the  city  is  more  than  the  estimated  amount  to  be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid  pursuant  to  subsection  (d)  and by the other pension
boards on  behalf  of  other  participating  annuitants,  the
difference  shall  be paid by all annuitants participating in
the plan, except as provided in subsection  (b).   The  city,
based  upon  the  determination  of  the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants.   The board may deduct the amounts to be paid  by
its  annuitants  from  the  participating annuitants' monthly
annuities.
    If it is determined from the city's annual audit, or from
audited experience data, that the total amount  paid  by  all
participating annuitants was more or less than the difference
between  (1)  the  cost  of  providing  the group health care
plans, and (2) the sum of the amount to be paid by  the  city
as  determined  under  subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and  the
city  shall  account  for the excess or shortfall in the next
year's  payments  by  annuitants,  except  as   provided   in
subsection (b).
    (h)  An  annuitant  may  elect to terminate coverage in a
plan at the end of any month, which election shall  terminate
the  annuitant's  obligation  to contribute toward payment of
the excess described in subsection (g).
    (i)  The city shall advise  the  board  of  all  proposed
premium  increases  for health care at least 75 days prior to
the effective date of the change, and any increase  shall  be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)

    (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
    Sec. 8-164.1. Payments to city Group health benefit.
    (a)  For  the  purposes of this Section, "city annuitant"
means a person  receiving  an  age  and  service  annuity,  a
widow's  annuity,  a  child's  annuity,  or a minimum annuity
under this Article as a direct result of previous  employment
by the City of Chicago ("the city").
    (b)  The  board  shall  pay to the city, on behalf of the
board's city annuitants who participate in any of the  city's
health care plans, the following amounts:
         (1)  From  July  1,  2003 through June 30, 2008, $85
    per month for each such annuitant who is not eligible  to
    receive Medicare benefits and $55 per month for each such
    annuitant who is eligible to receive Medicare benefits.
         (2)  From  July  1,  2008 through June 30, 2013, $95
    per month for each such annuitant who is not eligible  to
    receive Medicare benefits and $65 per month for each such
    annuitant who is eligible to receive Medicare benefits.
    The  payments  described in this subsection shall be paid
from the  tax  levy  authorized  under  Section  8-173;  such
amounts  shall  be credited to the reserve for group hospital
care and group medical and surgical plan  benefits,  and  all
payments  to the city required under this subsection shall be
charged against it.
    (c)  The city health  care  plans  referred  to  in  this
Section  and  the  board's  payments  to  the city under this
Section are not and shall not be construed to be  pension  or
retirement  benefits for the purposes of Section 5 of Article
XIII of the Illinois Constitution of 1970.
    (a)  For the purposes of this  Section:  (1)  "annuitant"
means  a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's  prior  service
annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous  employment  by  the  City  of  Chicago
(hereinafter,  in  this  Section,  "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1)  who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant"  means  an  annuitant described in item (1) who is
not eligible for Medicare benefits.
    (b)  The  city  shall  offer  group  health  benefits  to
annuitants and their eligible  dependents  through  June  30,
2003.  The  basic  city health care plan available as of June
30, 1988 (hereinafter called the basic city plan) shall cease
to be a plan offered by the  city,  except  as  specified  in
subparagraphs  (4)  and (5) below, and shall be closed to new
enrollment or transfer of coverage for any non-Medicare  Plan
annuitant  as  of  June  27,  1997.   The  city  shall  offer
non-Medicare  Plan  annuitants  and their eligible dependents
the option of enrolling in its Annuitant  Preferred  Provider
Plan  and  may offer additional plans for any annuitant.  The
city may amend, modify, or terminate any  of  its  additional
plans  at  its sole discretion.  If the city offers more than
one annuitant  plan,  the  city  shall  allow  annuitants  to
convert  coverage  from  one  city annuitant plan to another,
except the basic city plan, during times  designated  by  the
city,  which  periods  of time shall occur at least annually.
For the period dating from June 27,  1997  through  June  30,
2003,  monthly  premium rates may be increased for annuitants
during the time of their participation in non-Medicare plans,
except as provided in subparagraphs (1) through (4)  of  this
subsection.
         (1)  For  non-Medicare  Plan  annuitants who retired
    prior to  January  1,  1988,  the  annuitant's  share  of
    monthly premium for non-Medicare Plan coverage only shall
    not  exceed the highest premium rate chargeable under any
    city non-Medicare Plan annuitant coverage as of  December
    1, 1996.
         (2)  For  non-Medicare Plan annuitants who retire on
    or after  January  1,  1988,  the  annuitant's  share  of
    monthly premium for non-Medicare Plan coverage only shall
    be  the  rate in effect on December 1, 1996, with monthly
    premium increases to take effect no sooner than April  1,
    1998  at  the  lower  of  (i) the premium rate determined
    pursuant to subsection (g) or (ii) 10% of the immediately
    previous month's rate for similar coverage.
         (3)  In  no  event  shall  any   non-Medicare   Plan
    annuitant's  share  of  monthly  premium for non-Medicare
    Plan coverage  exceed  10%  of  the  annuitant's  monthly
    annuity.
         (4)  Non-Medicare  Plan  annuitants who are enrolled
    in the basic city plan as of July 1, 1998 may  remain  in
    the  basic city plan, if they so choose, on the condition
    that they are not entitled to the caps on rates set forth
    in subparagraphs (1) through (3), and their premium  rate
    shall   be   the   rate  determined  in  accordance  with
    subsections (c) and (g).
         (5)  Medicare  Plan  annuitants  who  are  currently
    enrolled in the basic city  plan  for  Medicare  eligible
    annuitants  may  remain  in that plan, if they so choose,
    through June 30, 2003.  Annuitants shall not  be  allowed
    to  enroll  in  or  transfer into the basic city plan for
    Medicare eligible annuitants on or after  July  1,  1999.
    The   city   shall   continue   to   offer  annuitants  a
    supplemental  Medicare   Plan   for   Medicare   eligible
    annuitants  through June 30, 2003, and the city may offer
    additional plans to Medicare eligible annuitants  in  its
    sole  discretion.   All  Medicare  Plan annuitant monthly
    rates shall be determined in accordance with  subsections
    (c) and (g).
    (c)  The  city  shall  pay 50% of the aggregated costs of
the  claims  or  premiums,  whichever   is   applicable,   as
determined  in  accordance with subsection (g), of annuitants
and their dependents under all health care plans  offered  by
the  city.  The city may reduce its obligation by application
of  price  reductions  obtained  as  a  result  of  financial
arrangements with providers or plan administrators.
    (d)  From January 1, 1993 until June 30, 2003, the  board
shall  pay  to  the  city  on  behalf  of each of the board's
annuitants who chooses to participate in any  of  the  city's
plans the following amounts: up to a maximum of $75 per month
for  each  such  annuitant  who  is  not qualified to receive
medicare benefits, and up to a maximum of $45 per  month  for
each  such  annuitant  who  is  qualified to receive medicare
benefits.
    Commencing on August 23, 1989, the board is authorized to
pay to the board of education on behalf of  each  person  who
chooses  to  participate in the board of education's plan the
amounts specified in this subsection  (d)  during  the  years
indicated.  For the period January 1, 1988 through August 23,
1989,   the  board  shall  pay  to  the  board  of  education
annuitants who participate in the board of education's health
benefits plan for annuitants the following amounts:  $10  per
month  to  each  annuitant  who  is  not qualified to receive
medicare benefits, and $14 per month to each annuitant who is
qualified to receive medicare benefits.
    The payments described in this subsection shall  be  paid
from  the  tax  levy  authorized  under  Section  8-189; such
amounts shall be credited to the reserve for  group  hospital
care  and  group  medical and surgical plan benefits, and all
payments to the city required under this subsection shall  be
charged against it.
    (e)  The city's obligations under subsections (b) and (c)
shall  terminate  on  June  30,  2003,  except with regard to
covered expenses incurred but not paid as of that date.  This
subsection shall not affect other  obligations  that  may  be
imposed by law.
    (f)  The  group  coverage plans described in this Section
are  not  and  shall  not  be  construed  to  be  pension  or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
    (g)  For each annuitant plan offered  by  the  city,  the
aggregate  cost  of claims, as reflected in the claim records
of the plan administrator, shall be estimated  by  the  city,
based upon a written determination by a qualified independent
actuary  to  be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan  offered
by  the  city  is  more  than  the  estimated  amount  to  be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid  pursuant  to  subsection  (d)  and by the other pension
boards on  behalf  of  other  participating  annuitants,  the
difference  shall  be paid by all annuitants participating in
the plan, except as provided in subsection  (b).   The  city,
based  upon  the  determination  of  the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants.   The board may deduct the amounts to be paid  by
its  annuitants  from  the  participating annuitants' monthly
annuities.
    If it is determined from the city's annual audit, or from
audited experience data, that the total amount  paid  by  all
participating annuitants was more or less than the difference
between  (1)  the  cost  of  providing  the group health care
plans, and (2) the sum of the amount to be paid by  the  city
as  determined  under  subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and  the
city  shall  account  for the excess or shortfall in the next
year's  payments  by  annuitants,  except  as   provided   in
subsection (b).
    (h)  An  annuitant  may  elect to terminate coverage in a
plan at the end of any month, which election shall  terminate
the  annuitant's  obligation  to contribute toward payment of
the excess described in subsection (g).
    (i)  The city shall advise  the  board  of  all  proposed
premium  increases  for health care at least 75 days prior to
the effective date of the change, and any increase  shall  be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)

    (40 ILCS 5/8-164.2 new)
    Sec.  8-164.2.   Payments to board of education for group
health benefits.
    (a)  Should the Board of Education continue to sponsor  a
retiree  health  plan,  the board is authorized to pay to the
Board of Education, on behalf of each eligible annuitant  who
chooses  to  participate  in the Board of Education's retiree
health benefit plan, the following amounts:
         (1)  From July 1, 2003 through June  30,  2008,  $85
    per  month for each such annuitant who is not eligible to
    receive Medicare benefits and $55 per month for each such
    annuitant who is eligible to receive Medicare benefits.
         (2)  From July 1, 2008 through June  30,  2013,  $95
    per  month for each such annuitant who is not eligible to
    receive Medicare benefits and $65 per month for each such
    annuitant who is eligible to receive Medicare benefits.
    The payments described in this subsection shall  be  paid
from  the  tax  levy  authorized  under  Section  8-173; such
amounts shall be credited to the reserve for  group  hospital
care  and  group  medical and surgical plan benefits, and all
payments to the Board  of  Education  under  this  subsection
shall be charged against it.
    (b)  The  Board of Education health benefit plan referred
to in this Section and the board's payments to the  Board  of
Education  under  this  Section  are  not  and  shall  not be
construed to  be  pension  or  retirement  benefits  for  the
purposes  of  Section  5  of  Article  XIII  of  the Illinois
Constitution of 1970.

    (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
    Sec. 11-160.1.  Payments to city Group health benefit.
    (a)  For the purposes of this Section,  "city  annuitant"
means  a  person  receiving  an  age  and  service annuity, a
widow's annuity, a child's  annuity,  or  a  minimum  annuity
under  this Article as a direct result of previous employment
by the City of Chicago ("the city").
    (b)  The board shall pay to the city, on  behalf  of  the
board's  city annuitants who participate in any of the city's
health care plans, the following amounts:
         (1)  From July 1, 2003 through June  30,  2008,  $85
    per  month for each such annuitant who is not eligible to
    receive Medicare benefits and $55 per month for each such
    annuitant who is eligible to receive Medicare benefits.
         (2)  From July 1, 2008 through June  30,  2013,  $95
    per  month for each such annuitant who is not eligible to
    receive Medicare benefits and $65 per month for each such
    annuitant who is eligible to receive Medicare benefits.
    The payments described in this subsection shall  be  paid
from  the  tax  levy  authorized  under  Section 11-169; such
amounts shall be credited to the reserve for  group  hospital
care  and  group  medical and surgical plan benefits, and all
payments to the city required under this subsection shall  be
charged against it.
    (c)  The  city  health  care  plans  referred  to in this
Section and the board's  payments  to  the  city  under  this
Section  are  not and shall not be construed to be pension or
retirement benefits for the purposes of Section 5 of  Article
XIII of the Illinois Constitution of 1970.
    (a)  For  the  purposes  of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a  prior
service  annuity,  a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
by  reason  of  previous  employment  by  the City of Chicago
(hereinafter, in this Section,  "the  city");  (2)  "Medicare
Plan  annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item  (1)  who  is
not eligible for Medicare benefits.
    (b)  The  city  shall  offer  group  health  benefits  to
annuitants  and  their  eligible  dependents through June 30,
2003.  The basic city health care plan available as  of  June
30, 1988 (hereinafter called the basic city plan) shall cease
to  be  a  plan  offered  by the city, except as specified in
subparagraphs (4) and (5) below, and shall be closed  to  new
enrollment  or transfer of coverage for any non-Medicare Plan
annuitant  as  of  June  27,  1997.   The  city  shall  offer
non-Medicare Plan annuitants and  their  eligible  dependents
the  option  of enrolling in its Annuitant Preferred Provider
Plan and may offer additional plans for any  annuitant.   The
city  may  amend,  modify, or terminate any of its additional
plans at its sole discretion.  If the city offers  more  than
one  annuitant  plan,  the  city  shall  allow  annuitants to
convert coverage from one city  annuitant  plan  to  another,
except  the  basic  city plan, during times designated by the
city, which periods of time shall occur  at  least  annually.
For  the  period  dating  from June 27, 1997 through June 30,
2003, monthly premium rates may be increased  for  annuitants
during the time of their participation in non-Medicare plans,
except  as  provided in subparagraphs (1) through (4) of this
subsection.
         (1)  For non-Medicare Plan  annuitants  who  retired
    prior  to  January  1,  1988,  the  annuitant's  share of
    monthly premium for non-Medicare Plan coverage only shall
    not exceed the highest premium rate chargeable under  any
    city  non-Medicare Plan annuitant coverage as of December
    1, 1996.
         (2)  For non-Medicare Plan annuitants who retire  on
    or  after  January  1,  1988,  the  annuitant's  share of
    monthly premium for non-Medicare Plan coverage only shall
    be the rate in effect on December 1, 1996,  with  monthly
    premium  increases to take effect no sooner than April 1,
    1998 at the lower of  (i)  the  premium  rate  determined
    pursuant to subsection (g) or (ii) 10% of the immediately
    previous month's rate for similar coverage.
         (3)  In   no   event  shall  any  non-Medicare  Plan
    annuitant's share of  monthly  premium  for  non-Medicare
    Plan  coverage  exceed  10%  of  the  annuitant's monthly
    annuity.
         (4)  Non-Medicare Plan annuitants who  are  enrolled
    in  the  basic city plan as of July 1, 1998 may remain in
    the basic city plan, if they so choose, on the  condition
    that they are not entitled to the caps on rates set forth
    in  subparagraphs (1) through (3), and their premium rate
    shall  be  the  rate  determined   in   accordance   with
    subsections (c) and (g).
         (5)  Medicare  Plan  annuitants  who  are  currently
    enrolled  in  the  basic  city plan for Medicare eligible
    annuitants may remain in that plan, if  they  so  choose,
    through  June  30, 2003.  Annuitants shall not be allowed
    to enroll in or transfer into the  basic  city  plan  for
    Medicare  eligible  annuitants  on or after July 1, 1999.
    The  city  shall   continue   to   offer   annuitants   a
    supplemental   Medicare   Plan   for   Medicare  eligible
    annuitants through June 30, 2003, and the city may  offer
    additional  plans  to Medicare eligible annuitants in its
    sole discretion.  All  Medicare  Plan  annuitant  monthly
    rates  shall be determined in accordance with subsections
    (c) and (g).
    (c)  The city shall pay 50% of the  aggregated  costs  of
the   claims   or   premiums,  whichever  is  applicable,  as
determined in accordance with subsection (g),  of  annuitants
and  their  dependents under all health care plans offered by
the city.  The city may reduce its obligation by  application
of  price  reductions  obtained  as  a  result  of  financial
arrangements with providers or plan administrators.
    (d)   From January 1, 1993 until June 30, 2003, the board
shall  pay  to  the  city  on  behalf  of each of the board's
annuitants who chooses to participate in any  of  the  city's
plans the following amounts: up to a maximum of $75 per month
for  each  such  annuitant  who  is  not qualified to receive
medicare benefits, and up to a maximum of $45 per  month  for
each  such  annuitant  who  is  qualified to receive medicare
benefits.
    The payments described in this subsection shall  be  paid
from  the  tax  levy  authorized  under  Section 11-178; such
amounts shall be credited to the reserve for  group  hospital
care  and  group  medical and surgical plan benefits, and all
payments to the city required under this subsection shall  be
charged against it.
    (e)  The city's obligations under subsections (b) and (c)
shall  terminate  on  June  30,  2003,  except with regard to
covered expenses incurred but not paid as of that date.  This
subsection shall not affect other  obligations  that  may  be
imposed by law.
    (f)  The  group  coverage plans described in this Section
are  not  and  shall  not  be  construed  to  be  pension  or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
    (g)  For each annuitant plan offered  by  the  city,  the
aggregate  cost  of claims, as reflected in the claim records
of the plan administrator, shall be estimated  by  the  city,
based upon a written determination by a qualified independent
actuary  to  be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan  offered
by  the  city  is  more  than  the  estimated  amount  to  be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid  pursuant  to  subsection  (d)  and by the other pension
boards on  behalf  of  other  participating  annuitants,  the
difference  shall  be paid by all annuitants participating in
the plan, except as provided in subsection  (b).   The  city,
based  upon  the  determination  of  the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants.  The board may deduct the amounts to be  paid  by
its  annuitants  from  the  participating annuitants' monthly
annuities.
    If it is determined from the city's annual audit, or from
audited experience data, that the total amount  paid  by  all
participating annuitants was more or less than the difference
between  (1)  the  cost  of  providing  the group health care
plans, and (2) the sum of the amount to be paid by  the  city
as  determined  under  subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and  the
city  shall  account  for the excess or shortfall in the next
year's  payments  by  annuitants,  except  as   provided   in
subsection (b).
    (h)  An  annuitant  may  elect to terminate coverage in a
plan at the end of any month, which election shall  terminate
the  annuitant's  obligation  to contribute toward payment of
the excess described in subsection (g).
    (i)  The city shall advise  the  board  of  all  proposed
premium  increases  for health care at least 75 days prior to
the effective date of the change, and any increase  shall  be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)

    (40 ILCS 5/11-160.2 new)
    Sec.  11-160.2.  Payments to board of education for group
health benefits.
    (a)  Should the Board of Education continue to sponsor  a
retiree  health  plan,  the board is authorized to pay to the
Board of Education, on behalf of each eligible annuitant  who
chooses  to  participate  in the Board of Education's retiree
health benefit plan, the following amounts:
         (1)  From July 1, 2003 through June  30,  2008,  $85
    per  month for each such annuitant who is not eligible to
    receive Medicare benefits and $55 per month for each such
    annuitant who is eligible to receive Medicare benefits.
         (2)  From July 1, 2008 through June  30,  2013,  $95
    per  month for each such annuitant who is not eligible to
    receive Medicare benefits and $65 per month for each such
    annuitant who is eligible to receive Medicare benefits.
    The payments described in this subsection shall  be  paid
from  the  tax  levy  authorized  under  Section 11-169; such
amounts shall be credited to the reserve for  group  hospital
care  and  group  medical and surgical plan benefits, and all
payments to the Board  of  Education  under  this  subsection
shall be charged against it.
    (b)  The  Board of Education health benefit plan referred
to in this Section and the board's payments to the  Board  of
Education  under  this  Section  are  not  and  shall  not be
construed to  be  pension  or  retirement  benefits  for  the
purposes  of  Section  5  of  Article  XIII  of  the Illinois
Constitution of 1970.

    Section 90.  The State Mandates Act is amended by  adding
Section 8.27 as follows:
    (30 ILCS 805/8.27 new)
    Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is  required
for  the  implementation  of  any  mandate  created  by  this
amendatory Act of the 93rd General Assembly.

    Section  99.  Effective date.  This Act takes effect July
1, 2003.