100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2650

 

Introduced 2/8/2018, by Sen. Terry Link

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends State Employee Article of the Illinois Pension Code. Requires the System to implement a defined contribution plan for employees of the Illinois State Board of Elections who are not covered by a collective bargaining agreement. Provides that the defined contribution plan shall aggregate State and employee contributions in individual participant accounts which are used for payouts after retirement. Authorizes an eligible employee of the Illinois State Board of Elections to elect to participate in the defined contribution plan instead of the defined benefit plan and to also elect to terminate all participation in the defined benefit plan and to have a specified amount credited to his or her account. Provides that State contributions shall be paid into the accounts of participants in the defined contribution plan at a rate of 3% of compensation and that State contributions, and the earnings thereon, shall vest when those contributions are paid into the participant's account. Provides that employee contributions shall be paid at a rate of 3% of compensation. Contains provisions concerning investment options; defined disability benefits; notice to eligible employees; plan sponsor; reporting; and the intent of the amendatory Act. Excludes the defined contribution plan from the definition of "new benefit increase". Makes related changes in the Retirement Systems Reciprocal Act (Article 20 of the Code) and the State Employees Group Insurance Act of 1971. Effective immediately.


LRB100 17073 RPS 32224 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2650LRB100 17073 RPS 32224 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Sections 3 and 10 as follows:
 
6    (5 ILCS 375/3)  (from Ch. 127, par. 523)
7    Sec. 3. Definitions. Unless the context otherwise
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13    (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18    (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2, 14 (including an employee
21who has elected to receive an alternative retirement
22cancellation payment under Section 14-108.5 of the Illinois
23Pension Code in lieu of an annuity or an employee who, in lieu

 

 

SB2650- 2 -LRB100 17073 RPS 32224 b

1of receiving an annuity under that Article, has retired under
2the defined contribution plan established under Section
314-155.5 of that Article), or 15 (including an employee who has
4retired under the optional retirement program established
5under Section 15-158.2), paragraphs (2), (3), or (5) of Section
616-106, or Article 18 of the Illinois Pension Code; (2) any
7person who was receiving group insurance coverage under this
8Act as of March 31, 1978 by reason of his status as an
9annuitant, even though the annuity in relation to which such
10coverage was provided is a proportional annuity based on less
11than the minimum period of service required for a retirement
12annuity in the system involved; (3) any person not otherwise
13covered by this Act who has retired as a participating member
14under Article 2 of the Illinois Pension Code but is ineligible
15for the retirement annuity under Section 2-119 of the Illinois
16Pension Code; (4) the spouse of any person who is receiving a
17retirement annuity under Article 18 of the Illinois Pension
18Code and who is covered under a group health insurance program
19sponsored by a governmental employer other than the State of
20Illinois and who has irrevocably elected to waive his or her
21coverage under this Act and to have his or her spouse
22considered as the "annuitant" under this Act and not as a
23"dependent"; or (5) an employee who retires, or has retired,
24from a qualified position, as determined according to rules
25promulgated by the Director, under a qualified local
26government, a qualified rehabilitation facility, a qualified

 

 

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1domestic violence shelter or service, or a qualified child
2advocacy center. (For definition of "retired employee", see (p)
3post).
4    (b-5) (Blank).
5    (b-6) (Blank).
6    (b-7) (Blank).
7    (c) "Carrier" means (1) an insurance company, a corporation
8organized under the Limited Health Service Organization Act or
9the Voluntary Health Services Plan Act, a partnership, or other
10nongovernmental organization, which is authorized to do group
11life or group health insurance business in Illinois, or (2) the
12State of Illinois as a self-insurer.
13    (d) "Compensation" means salary or wages payable on a
14regular payroll by the State Treasurer on a warrant of the
15State Comptroller out of any State, trust or federal fund, or
16by the Governor of the State through a disbursing officer of
17the State out of a trust or out of federal funds, or by any
18Department out of State, trust, federal or other funds held by
19the State Treasurer or the Department, to any person for
20personal services currently performed, and ordinary or
21accidental disability benefits under Articles 2, 14, 15
22(including ordinary or accidental disability benefits under
23the optional retirement program established under Section
2415-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
25Article 18 of the Illinois Pension Code, for disability
26incurred after January 1, 1966, or benefits payable under the

 

 

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1Workers' Compensation or Occupational Diseases Act or benefits
2payable under a sick pay plan established in accordance with
3Section 36 of the State Finance Act. "Compensation" also means
4salary or wages paid to an employee of any qualified local
5government, qualified rehabilitation facility, qualified
6domestic violence shelter or service, or qualified child
7advocacy center.
8    (e) "Commission" means the State Employees Group Insurance
9Advisory Commission authorized by this Act. Commencing July 1,
101984, "Commission" as used in this Act means the Commission on
11Government Forecasting and Accountability as established by
12the Legislative Commission Reorganization Act of 1984.
13    (f) "Contributory", when referred to as contributory
14coverage, shall mean optional coverages or benefits elected by
15the member toward the cost of which such member makes
16contribution, or which are funded in whole or in part through
17the acceptance of a reduction in earnings or the foregoing of
18an increase in earnings by an employee, as distinguished from
19noncontributory coverage or benefits which are paid entirely by
20the State of Illinois without reduction of the member's salary.
21    (g) "Department" means any department, institution, board,
22commission, officer, court or any agency of the State
23government receiving appropriations and having power to
24certify payrolls to the Comptroller authorizing payments of
25salary and wages against such appropriations as are made by the
26General Assembly from any State fund, or against trust funds

 

 

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1held by the State Treasurer and includes boards of trustees of
2the retirement systems created by Articles 2, 14, 15, 16 and 18
3of the Illinois Pension Code. "Department" also includes the
4Illinois Comprehensive Health Insurance Board, the Board of
5Examiners established under the Illinois Public Accounting
6Act, and the Illinois Finance Authority.
7    (h) "Dependent", when the term is used in the context of
8the health and life plan, means a member's spouse and any child
9(1) from birth to age 26 including an adopted child, a child
10who lives with the member from the time of the placement for
11adoption until entry of an order of adoption, a stepchild or
12adjudicated child, or a child who lives with the member if such
13member is a court appointed guardian of the child or (2) age 19
14or over who has a mental or physical disability from a cause
15originating prior to the age of 19 (age 26 if enrolled as an
16adult child dependent). For the health plan only, the term
17"dependent" also includes (1) any person enrolled prior to the
18effective date of this Section who is dependent upon the member
19to the extent that the member may claim such person as a
20dependent for income tax deduction purposes and (2) any person
21who has received after June 30, 2000 an organ transplant and
22who is financially dependent upon the member and eligible to be
23claimed as a dependent for income tax purposes. A member
24requesting to cover any dependent must provide documentation as
25requested by the Department of Central Management Services and
26file with the Department any and all forms required by the

 

 

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1Department.
2    (i) "Director" means the Director of the Illinois
3Department of Central Management Services.
4    (j) "Eligibility period" means the period of time a member
5has to elect enrollment in programs or to select benefits
6without regard to age, sex or health.
7    (k) "Employee" means and includes each officer or employee
8in the service of a department who (1) receives his
9compensation for service rendered to the department on a
10warrant issued pursuant to a payroll certified by a department
11or on a warrant or check issued and drawn by a department upon
12a trust, federal or other fund or on a warrant issued pursuant
13to a payroll certified by an elected or duly appointed officer
14of the State or who receives payment of the performance of
15personal services on a warrant issued pursuant to a payroll
16certified by a Department and drawn by the Comptroller upon the
17State Treasurer against appropriations made by the General
18Assembly from any fund or against trust funds held by the State
19Treasurer, and (2) is employed full-time or part-time in a
20position normally requiring actual performance of duty during
21not less than 1/2 of a normal work period, as established by
22the Director in cooperation with each department, except that
23persons elected by popular vote will be considered employees
24during the entire term for which they are elected regardless of
25hours devoted to the service of the State, and (3) except that
26"employee" does not include any person who is not eligible by

 

 

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1reason of such person's employment to participate in one of the
2State retirement systems under Articles 2, 14, 15 (either the
3regular Article 15 system or the optional retirement program
4established under Section 15-158.2) or 18, or under paragraph
5(2), (3), or (5) of Section 16-106, of the Illinois Pension
6Code, but such term does include persons who are employed
7during the 6 month qualifying period under Article 14 of the
8Illinois Pension Code. Such term also includes any person who
9(1) after January 1, 1966, is receiving ordinary or accidental
10disability benefits under Articles 2, 14, 15 (including
11ordinary or accidental disability benefits under the optional
12retirement program established under Section 15-158.2),
13paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
14the Illinois Pension Code, for disability incurred after
15January 1, 1966, (2) receives total permanent or total
16temporary disability under the Workers' Compensation Act or
17Occupational Disease Act as a result of injuries sustained or
18illness contracted in the course of employment with the State
19of Illinois, or (3) is not otherwise covered under this Act and
20has retired as a participating member under Article 2 of the
21Illinois Pension Code but is ineligible for the retirement
22annuity under Section 2-119 of the Illinois Pension Code.
23However, a person who satisfies the criteria of the foregoing
24definition of "employee" except that such person is made
25ineligible to participate in the State Universities Retirement
26System by clause (4) of subsection (a) of Section 15-107 of the

 

 

SB2650- 8 -LRB100 17073 RPS 32224 b

1Illinois Pension Code is also an "employee" for the purposes of
2this Act. "Employee" also includes any person receiving or
3eligible for benefits under a sick pay plan established in
4accordance with Section 36 of the State Finance Act. "Employee"
5also includes (i) each officer or employee in the service of a
6qualified local government, including persons appointed as
7trustees of sanitary districts regardless of hours devoted to
8the service of the sanitary district, (ii) each employee in the
9service of a qualified rehabilitation facility, (iii) each
10full-time employee in the service of a qualified domestic
11violence shelter or service, and (iv) each full-time employee
12in the service of a qualified child advocacy center, as
13determined according to rules promulgated by the Director.
14    (l) "Member" means an employee, annuitant, retired
15employee or survivor. In the case of an annuitant or retired
16employee who first becomes an annuitant or retired employee on
17or after the effective date of this amendatory Act of the 97th
18General Assembly, the individual must meet the minimum vesting
19requirements of the applicable retirement system in order to be
20eligible for group insurance benefits under that system. In the
21case of a survivor who first becomes a survivor on or after the
22effective date of this amendatory Act of the 97th General
23Assembly, the deceased employee, annuitant, or retired
24employee upon whom the annuity is based must have been eligible
25to participate in the group insurance system under the
26applicable retirement system in order for the survivor to be

 

 

SB2650- 9 -LRB100 17073 RPS 32224 b

1eligible for group insurance benefits under that system.
2    (m) "Optional coverages or benefits" means those coverages
3or benefits available to the member on his or her voluntary
4election, and at his or her own expense.
5    (n) "Program" means the group life insurance, health
6benefits and other employee benefits designed and contracted
7for by the Director under this Act.
8    (o) "Health plan" means a health benefits program offered
9by the State of Illinois for persons eligible for the plan.
10    (p) "Retired employee" means any person who would be an
11annuitant as that term is defined herein but for the fact that
12such person retired prior to January 1, 1966. Such term also
13includes any person formerly employed by the University of
14Illinois in the Cooperative Extension Service who would be an
15annuitant but for the fact that such person was made ineligible
16to participate in the State Universities Retirement System by
17clause (4) of subsection (a) of Section 15-107 of the Illinois
18Pension Code.
19    (q) "Survivor" means a person receiving an annuity as a
20survivor of an employee or of an annuitant. "Survivor" also
21includes: (1) the surviving dependent of a person who satisfies
22the definition of "employee" except that such person is made
23ineligible to participate in the State Universities Retirement
24System by clause (4) of subsection (a) of Section 15-107 of the
25Illinois Pension Code; (2) the surviving dependent of any
26person formerly employed by the University of Illinois in the

 

 

SB2650- 10 -LRB100 17073 RPS 32224 b

1Cooperative Extension Service who would be an annuitant except
2for the fact that such person was made ineligible to
3participate in the State Universities Retirement System by
4clause (4) of subsection (a) of Section 15-107 of the Illinois
5Pension Code; and (3) the surviving dependent of a person who
6was an annuitant under this Act by virtue of receiving an
7alternative retirement cancellation payment under Section
814-108.5 of the Illinois Pension Code.
9    (q-2) "SERS" means the State Employees' Retirement System
10of Illinois, created under Article 14 of the Illinois Pension
11Code.
12    (q-3) "SURS" means the State Universities Retirement
13System, created under Article 15 of the Illinois Pension Code.
14    (q-4) "TRS" means the Teachers' Retirement System of the
15State of Illinois, created under Article 16 of the Illinois
16Pension Code.
17    (q-5) (Blank).
18    (q-6) (Blank).
19    (q-7) (Blank).
20    (r) "Medical services" means the services provided within
21the scope of their licenses by practitioners in all categories
22licensed under the Medical Practice Act of 1987.
23    (s) "Unit of local government" means any county,
24municipality, township, school district (including a
25combination of school districts under the Intergovernmental
26Cooperation Act), special district or other unit, designated as

 

 

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1a unit of local government by law, which exercises limited
2governmental powers or powers in respect to limited
3governmental subjects, any not-for-profit association with a
4membership that primarily includes townships and township
5officials, that has duties that include provision of research
6service, dissemination of information, and other acts for the
7purpose of improving township government, and that is funded
8wholly or partly in accordance with Section 85-15 of the
9Township Code; any not-for-profit corporation or association,
10with a membership consisting primarily of municipalities, that
11operates its own utility system, and provides research,
12training, dissemination of information, or other acts to
13promote cooperation between and among municipalities that
14provide utility services and for the advancement of the goals
15and purposes of its membership; the Southern Illinois
16Collegiate Common Market, which is a consortium of higher
17education institutions in Southern Illinois; the Illinois
18Association of Park Districts; and any hospital provider that
19is owned by a county that has 100 or fewer hospital beds and
20has not already joined the program. "Qualified local
21government" means a unit of local government approved by the
22Director and participating in a program created under
23subsection (i) of Section 10 of this Act.
24    (t) "Qualified rehabilitation facility" means any
25not-for-profit organization that is accredited by the
26Commission on Accreditation of Rehabilitation Facilities or

 

 

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1certified by the Department of Human Services (as successor to
2the Department of Mental Health and Developmental
3Disabilities) to provide services to persons with disabilities
4and which receives funds from the State of Illinois for
5providing those services, approved by the Director and
6participating in a program created under subsection (j) of
7Section 10 of this Act.
8    (u) "Qualified domestic violence shelter or service" means
9any Illinois domestic violence shelter or service and its
10administrative offices funded by the Department of Human
11Services (as successor to the Illinois Department of Public
12Aid), approved by the Director and participating in a program
13created under subsection (k) of Section 10.
14    (v) "TRS benefit recipient" means a person who:
15        (1) is not a "member" as defined in this Section; and
16        (2) is receiving a monthly benefit or retirement
17    annuity under Article 16 of the Illinois Pension Code; and
18        (3) either (i) has at least 8 years of creditable
19    service under Article 16 of the Illinois Pension Code, or
20    (ii) was enrolled in the health insurance program offered
21    under that Article on January 1, 1996, or (iii) is the
22    survivor of a benefit recipient who had at least 8 years of
23    creditable service under Article 16 of the Illinois Pension
24    Code or was enrolled in the health insurance program
25    offered under that Article on the effective date of this
26    amendatory Act of 1995, or (iv) is a recipient or survivor

 

 

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1    of a recipient of a disability benefit under Article 16 of
2    the Illinois Pension Code.
3    (w) "TRS dependent beneficiary" means a person who:
4        (1) is not a "member" or "dependent" as defined in this
5    Section; and
6        (2) is a TRS benefit recipient's: (A) spouse, (B)
7    dependent parent who is receiving at least half of his or
8    her support from the TRS benefit recipient, or (C) natural,
9    step, adjudicated, or adopted child who is (i) under age
10    26, (ii) was, on January 1, 1996, participating as a
11    dependent beneficiary in the health insurance program
12    offered under Article 16 of the Illinois Pension Code, or
13    (iii) age 19 or over who has a mental or physical
14    disability from a cause originating prior to the age of 19
15    (age 26 if enrolled as an adult child).
16    "TRS dependent beneficiary" does not include, as indicated
17under paragraph (2) of this subsection (w), a dependent of the
18survivor of a TRS benefit recipient who first becomes a
19dependent of a survivor of a TRS benefit recipient on or after
20the effective date of this amendatory Act of the 97th General
21Assembly unless that dependent would have been eligible for
22coverage as a dependent of the deceased TRS benefit recipient
23upon whom the survivor benefit is based.
24    (x) "Military leave" refers to individuals in basic
25training for reserves, special/advanced training, annual
26training, emergency call up, activation by the President of the

 

 

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1United States, or any other training or duty in service to the
2United States Armed Forces.
3    (y) (Blank).
4    (z) "Community college benefit recipient" means a person
5who:
6        (1) is not a "member" as defined in this Section; and
7        (2) is receiving a monthly survivor's annuity or
8    retirement annuity under Article 15 of the Illinois Pension
9    Code; and
10        (3) either (i) was a full-time employee of a community
11    college district or an association of community college
12    boards created under the Public Community College Act
13    (other than an employee whose last employer under Article
14    15 of the Illinois Pension Code was a community college
15    district subject to Article VII of the Public Community
16    College Act) and was eligible to participate in a group
17    health benefit plan as an employee during the time of
18    employment with a community college district (other than a
19    community college district subject to Article VII of the
20    Public Community College Act) or an association of
21    community college boards, or (ii) is the survivor of a
22    person described in item (i).
23    (aa) "Community college dependent beneficiary" means a
24person who:
25        (1) is not a "member" or "dependent" as defined in this
26    Section; and

 

 

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1        (2) is a community college benefit recipient's: (A)
2    spouse, (B) dependent parent who is receiving at least half
3    of his or her support from the community college benefit
4    recipient, or (C) natural, step, adjudicated, or adopted
5    child who is (i) under age 26, or (ii) age 19 or over and
6    has a mental or physical disability from a cause
7    originating prior to the age of 19 (age 26 if enrolled as
8    an adult child).
9    "Community college dependent beneficiary" does not
10include, as indicated under paragraph (2) of this subsection
11(aa), a dependent of the survivor of a community college
12benefit recipient who first becomes a dependent of a survivor
13of a community college benefit recipient on or after the
14effective date of this amendatory Act of the 97th General
15Assembly unless that dependent would have been eligible for
16coverage as a dependent of the deceased community college
17benefit recipient upon whom the survivor annuity is based.
18    (bb) "Qualified child advocacy center" means any Illinois
19child advocacy center and its administrative offices funded by
20the Department of Children and Family Services, as defined by
21the Children's Advocacy Center Act (55 ILCS 80/), approved by
22the Director and participating in a program created under
23subsection (n) of Section 10.
24    (cc) "Placement for adoption" means the assumption and
25retention by a member of a legal obligation for total or
26partial support of a child in anticipation of adoption of the

 

 

SB2650- 16 -LRB100 17073 RPS 32224 b

1child. The child's placement with the member terminates upon
2the termination of such legal obligation.
3(Source: P.A. 99-143, eff. 7-27-15; 100-355, eff. 1-1-18.)
 
4    (5 ILCS 375/10)  (from Ch. 127, par. 530)
5    Sec. 10. Contributions by the State and members.
6    (a) The State shall pay the cost of basic non-contributory
7group life insurance and, subject to member paid contributions
8set by the Department or required by this Section and except as
9provided in this Section, the basic program of group health
10benefits on each eligible member, except a member, not
11otherwise covered by this Act, who has retired as a
12participating member under Article 2 of the Illinois Pension
13Code but is ineligible for the retirement annuity under Section
142-119 of the Illinois Pension Code, and part of each eligible
15member's and retired member's premiums for health insurance
16coverage for enrolled dependents as provided by Section 9. The
17State shall pay the cost of the basic program of group health
18benefits only after benefits are reduced by the amount of
19benefits covered by Medicare for all members and dependents who
20are eligible for benefits under Social Security or the Railroad
21Retirement system or who had sufficient Medicare-covered
22government employment, except that such reduction in benefits
23shall apply only to those members and dependents who (1) first
24become eligible for such Medicare coverage on or after July 1,
251992; or (2) are Medicare-eligible members or dependents of a

 

 

SB2650- 17 -LRB100 17073 RPS 32224 b

1local government unit which began participation in the program
2on or after July 1, 1992; or (3) remain eligible for, but no
3longer receive Medicare coverage which they had been receiving
4on or after July 1, 1992. The Department may determine the
5aggregate level of the State's contribution on the basis of
6actual cost of medical services adjusted for age, sex or
7geographic or other demographic characteristics which affect
8the costs of such programs.
9    The cost of participation in the basic program of group
10health benefits for the dependent or survivor of a living or
11deceased retired employee who was formerly employed by the
12University of Illinois in the Cooperative Extension Service and
13would be an annuitant but for the fact that he or she was made
14ineligible to participate in the State Universities Retirement
15System by clause (4) of subsection (a) of Section 15-107 of the
16Illinois Pension Code shall not be greater than the cost of
17participation that would otherwise apply to that dependent or
18survivor if he or she were the dependent or survivor of an
19annuitant under the State Universities Retirement System.
20    (a-1) (Blank).
21    (a-2) (Blank).
22    (a-3) (Blank).
23    (a-4) (Blank).
24    (a-5) (Blank).
25    (a-6) (Blank).
26    (a-7) (Blank).

 

 

SB2650- 18 -LRB100 17073 RPS 32224 b

1    (a-8) Any annuitant, survivor, or retired employee may
2waive or terminate coverage in the program of group health
3benefits. Any such annuitant, survivor, or retired employee who
4has waived or terminated coverage may enroll or re-enroll in
5the program of group health benefits only during the annual
6benefit choice period, as determined by the Director; except
7that in the event of termination of coverage due to nonpayment
8of premiums, the annuitant, survivor, or retired employee may
9not re-enroll in the program.
10    (a-8.5) Beginning on the effective date of this amendatory
11Act of the 97th General Assembly, the Director of Central
12Management Services shall, on an annual basis, determine the
13amount that the State shall contribute toward the basic program
14of group health benefits on behalf of annuitants (including
15individuals who (i) participated in the General Assembly
16Retirement System, the State Employees' Retirement System of
17Illinois, the State Universities Retirement System, the
18Teachers' Retirement System of the State of Illinois, or the
19Judges Retirement System of Illinois and (ii) qualify as
20annuitants under subsection (b) of Section 3 of this Act),
21survivors (including individuals who (i) receive an annuity as
22a survivor of an individual who participated in the General
23Assembly Retirement System, the State Employees' Retirement
24System of Illinois, the State Universities Retirement System,
25the Teachers' Retirement System of the State of Illinois, or
26the Judges Retirement System of Illinois and (ii) qualify as

 

 

SB2650- 19 -LRB100 17073 RPS 32224 b

1survivors under subsection (q) of Section 3 of this Act), and
2retired employees (as defined in subsection (p) of Section 3 of
3this Act). The remainder of the cost of coverage for each
4annuitant, survivor, or retired employee, as determined by the
5Director of Central Management Services, shall be the
6responsibility of that annuitant, survivor, or retired
7employee.
8    Contributions required of annuitants, survivors, and
9retired employees shall be the same for all retirement systems
10and shall also be based on whether an individual has made an
11election under Section 15-135.1 of the Illinois Pension Code.
12Contributions may be based on annuitants', survivors', or
13retired employees' Medicare eligibility, but may not be based
14on Social Security eligibility.
15    (a-9) No later than May 1 of each calendar year, the
16Director of Central Management Services shall certify in
17writing to the Executive Secretary of the State Employees'
18Retirement System of Illinois the amounts of the Medicare
19supplement health care premiums and the amounts of the health
20care premiums for all other retirees who are not Medicare
21eligible.
22    A separate calculation of the premiums based upon the
23actual cost of each health care plan shall be so certified.
24    The Director of Central Management Services shall provide
25to the Executive Secretary of the State Employees' Retirement
26System of Illinois such information, statistics, and other data

 

 

SB2650- 20 -LRB100 17073 RPS 32224 b

1as he or she may require to review the premium amounts
2certified by the Director of Central Management Services.
3    The Department of Central Management Services, or any
4successor agency designated to procure healthcare contracts
5pursuant to this Act, is authorized to establish funds,
6separate accounts provided by any bank or banks as defined by
7the Illinois Banking Act, or separate accounts provided by any
8savings and loan association or associations as defined by the
9Illinois Savings and Loan Act of 1985 to be held by the
10Director, outside the State treasury, for the purpose of
11receiving the transfer of moneys from the Local Government
12Health Insurance Reserve Fund. The Department may promulgate
13rules further defining the methodology for the transfers. Any
14interest earned by moneys in the funds or accounts shall inure
15to the Local Government Health Insurance Reserve Fund. The
16transferred moneys, and interest accrued thereon, shall be used
17exclusively for transfers to administrative service
18organizations or their financial institutions for payments of
19claims to claimants and providers under the self-insurance
20health plan. The transferred moneys, and interest accrued
21thereon, shall not be used for any other purpose including, but
22not limited to, reimbursement of administration fees due the
23administrative service organization pursuant to its contract
24or contracts with the Department.
25    (a-10) For purposes of determining State contributions
26under this Section, service established under a defined

 

 

SB2650- 21 -LRB100 17073 RPS 32224 b

1contribution plan under Section 14-155.5 of the Illinois
2Pension Code shall be included in determining an employee's
3creditable service. Any credit terminated as part of a transfer
4of contributions to a defined contribution plan under Section
514-155.5 of the Illinois Pension Code shall also be included in
6determining an employee's creditable service.
7    (b) State employees who become eligible for this program on
8or after January 1, 1980 in positions normally requiring actual
9performance of duty not less than 1/2 of a normal work period
10but not equal to that of a normal work period, shall be given
11the option of participating in the available program. If the
12employee elects coverage, the State shall contribute on behalf
13of such employee to the cost of the employee's benefit and any
14applicable dependent supplement, that sum which bears the same
15percentage as that percentage of time the employee regularly
16works when compared to normal work period.
17    (c) The basic non-contributory coverage from the basic
18program of group health benefits shall be continued for each
19employee not in pay status or on active service by reason of
20(1) leave of absence due to illness or injury, (2) authorized
21educational leave of absence or sabbatical leave, or (3)
22military leave. This coverage shall continue until expiration
23of authorized leave and return to active service, but not to
24exceed 24 months for leaves under item (1) or (2). This
2524-month limitation and the requirement of returning to active
26service shall not apply to persons receiving ordinary or

 

 

SB2650- 22 -LRB100 17073 RPS 32224 b

1accidental disability benefits or retirement benefits through
2the appropriate State retirement system or benefits under the
3Workers' Compensation or Occupational Disease Act.
4    (d) The basic group life insurance coverage shall continue,
5with full State contribution, where such person is (1) absent
6from active service by reason of disability arising from any
7cause other than self-inflicted, (2) on authorized educational
8leave of absence or sabbatical leave, or (3) on military leave.
9    (e) Where the person is in non-pay status for a period in
10excess of 30 days or on leave of absence, other than by reason
11of disability, educational or sabbatical leave, or military
12leave, such person may continue coverage only by making
13personal payment equal to the amount normally contributed by
14the State on such person's behalf. Such payments and coverage
15may be continued: (1) until such time as the person returns to
16a status eligible for coverage at State expense, but not to
17exceed 24 months or (2) until such person's employment or
18annuitant status with the State is terminated (exclusive of any
19additional service imposed pursuant to law).
20    (f) The Department shall establish by rule the extent to
21which other employee benefits will continue for persons in
22non-pay status or who are not in active service.
23    (g) The State shall not pay the cost of the basic
24non-contributory group life insurance, program of health
25benefits and other employee benefits for members who are
26survivors as defined by paragraphs (1) and (2) of subsection

 

 

SB2650- 23 -LRB100 17073 RPS 32224 b

1(q) of Section 3 of this Act. The costs of benefits for these
2survivors shall be paid by the survivors or by the University
3of Illinois Cooperative Extension Service, or any combination
4thereof. However, the State shall pay the amount of the
5reduction in the cost of participation, if any, resulting from
6the amendment to subsection (a) made by this amendatory Act of
7the 91st General Assembly.
8    (h) Those persons occupying positions with any department
9as a result of emergency appointments pursuant to Section 8b.8
10of the Personnel Code who are not considered employees under
11this Act shall be given the option of participating in the
12programs of group life insurance, health benefits and other
13employee benefits. Such persons electing coverage may
14participate only by making payment equal to the amount normally
15contributed by the State for similarly situated employees. Such
16amounts shall be determined by the Director. Such payments and
17coverage may be continued until such time as the person becomes
18an employee pursuant to this Act or such person's appointment
19is terminated.
20    (i) Any unit of local government within the State of
21Illinois may apply to the Director to have its employees,
22annuitants, and their dependents provided group health
23coverage under this Act on a non-insured basis. To participate,
24a unit of local government must agree to enroll all of its
25employees, who may select coverage under either the State group
26health benefits plan or a health maintenance organization that

 

 

SB2650- 24 -LRB100 17073 RPS 32224 b

1has contracted with the State to be available as a health care
2provider for employees as defined in this Act. A unit of local
3government must remit the entire cost of providing coverage
4under the State group health benefits plan or, for coverage
5under a health maintenance organization, an amount determined
6by the Director based on an analysis of the sex, age,
7geographic location, or other relevant demographic variables
8for its employees, except that the unit of local government
9shall not be required to enroll those of its employees who are
10covered spouses or dependents under this plan or another group
11policy or plan providing health benefits as long as (1) an
12appropriate official from the unit of local government attests
13that each employee not enrolled is a covered spouse or
14dependent under this plan or another group policy or plan, and
15(2) at least 50% of the employees are enrolled and the unit of
16local government remits the entire cost of providing coverage
17to those employees, except that a participating school district
18must have enrolled at least 50% of its full-time employees who
19have not waived coverage under the district's group health plan
20by participating in a component of the district's cafeteria
21plan. A participating school district is not required to enroll
22a full-time employee who has waived coverage under the
23district's health plan, provided that an appropriate official
24from the participating school district attests that the
25full-time employee has waived coverage by participating in a
26component of the district's cafeteria plan. For the purposes of

 

 

SB2650- 25 -LRB100 17073 RPS 32224 b

1this subsection, "participating school district" includes a
2unit of local government whose primary purpose is education as
3defined by the Department's rules.
4    Employees of a participating unit of local government who
5are not enrolled due to coverage under another group health
6policy or plan may enroll in the event of a qualifying change
7in status, special enrollment, special circumstance as defined
8by the Director, or during the annual Benefit Choice Period. A
9participating unit of local government may also elect to cover
10its annuitants. Dependent coverage shall be offered on an
11optional basis, with the costs paid by the unit of local
12government, its employees, or some combination of the two as
13determined by the unit of local government. The unit of local
14government shall be responsible for timely collection and
15transmission of dependent premiums.
16    The Director shall annually determine monthly rates of
17payment, subject to the following constraints:
18        (1) In the first year of coverage, the rates shall be
19    equal to the amount normally charged to State employees for
20    elected optional coverages or for enrolled dependents
21    coverages or other contributory coverages, or contributed
22    by the State for basic insurance coverages on behalf of its
23    employees, adjusted for differences between State
24    employees and employees of the local government in age,
25    sex, geographic location or other relevant demographic
26    variables, plus an amount sufficient to pay for the

 

 

SB2650- 26 -LRB100 17073 RPS 32224 b

1    additional administrative costs of providing coverage to
2    employees of the unit of local government and their
3    dependents.
4        (2) In subsequent years, a further adjustment shall be
5    made to reflect the actual prior years' claims experience
6    of the employees of the unit of local government.
7    In the case of coverage of local government employees under
8a health maintenance organization, the Director shall annually
9determine for each participating unit of local government the
10maximum monthly amount the unit may contribute toward that
11coverage, based on an analysis of (i) the age, sex, geographic
12location, and other relevant demographic variables of the
13unit's employees and (ii) the cost to cover those employees
14under the State group health benefits plan. The Director may
15similarly determine the maximum monthly amount each unit of
16local government may contribute toward coverage of its
17employees' dependents under a health maintenance organization.
18    Monthly payments by the unit of local government or its
19employees for group health benefits plan or health maintenance
20organization coverage shall be deposited in the Local
21Government Health Insurance Reserve Fund.
22    The Local Government Health Insurance Reserve Fund is
23hereby created as a nonappropriated trust fund to be held
24outside the State Treasury, with the State Treasurer as
25custodian. The Local Government Health Insurance Reserve Fund
26shall be a continuing fund not subject to fiscal year

 

 

SB2650- 27 -LRB100 17073 RPS 32224 b

1limitations. The Local Government Health Insurance Reserve
2Fund is not subject to administrative charges or charge-backs,
3including but not limited to those authorized under Section 8h
4of the State Finance Act. All revenues arising from the
5administration of the health benefits program established
6under this Section shall be deposited into the Local Government
7Health Insurance Reserve Fund. Any interest earned on moneys in
8the Local Government Health Insurance Reserve Fund shall be
9deposited into the Fund. All expenditures from this Fund shall
10be used for payments for health care benefits for local
11government and rehabilitation facility employees, annuitants,
12and dependents, and to reimburse the Department or its
13administrative service organization for all expenses incurred
14in the administration of benefits. No other State funds may be
15used for these purposes.
16    A local government employer's participation or desire to
17participate in a program created under this subsection shall
18not limit that employer's duty to bargain with the
19representative of any collective bargaining unit of its
20employees.
21    (j) Any rehabilitation facility within the State of
22Illinois may apply to the Director to have its employees,
23annuitants, and their eligible dependents provided group
24health coverage under this Act on a non-insured basis. To
25participate, a rehabilitation facility must agree to enroll all
26of its employees and remit the entire cost of providing such

 

 

SB2650- 28 -LRB100 17073 RPS 32224 b

1coverage for its employees, except that the rehabilitation
2facility shall not be required to enroll those of its employees
3who are covered spouses or dependents under this plan or
4another group policy or plan providing health benefits as long
5as (1) an appropriate official from the rehabilitation facility
6attests that each employee not enrolled is a covered spouse or
7dependent under this plan or another group policy or plan, and
8(2) at least 50% of the employees are enrolled and the
9rehabilitation facility remits the entire cost of providing
10coverage to those employees. Employees of a participating
11rehabilitation facility who are not enrolled due to coverage
12under another group health policy or plan may enroll in the
13event of a qualifying change in status, special enrollment,
14special circumstance as defined by the Director, or during the
15annual Benefit Choice Period. A participating rehabilitation
16facility may also elect to cover its annuitants. Dependent
17coverage shall be offered on an optional basis, with the costs
18paid by the rehabilitation facility, its employees, or some
19combination of the 2 as determined by the rehabilitation
20facility. The rehabilitation facility shall be responsible for
21timely collection and transmission of dependent premiums.
22    The Director shall annually determine quarterly rates of
23payment, subject to the following constraints:
24        (1) In the first year of coverage, the rates shall be
25    equal to the amount normally charged to State employees for
26    elected optional coverages or for enrolled dependents

 

 

SB2650- 29 -LRB100 17073 RPS 32224 b

1    coverages or other contributory coverages on behalf of its
2    employees, adjusted for differences between State
3    employees and employees of the rehabilitation facility in
4    age, sex, geographic location or other relevant
5    demographic variables, plus an amount sufficient to pay for
6    the additional administrative costs of providing coverage
7    to employees of the rehabilitation facility and their
8    dependents.
9        (2) In subsequent years, a further adjustment shall be
10    made to reflect the actual prior years' claims experience
11    of the employees of the rehabilitation facility.
12    Monthly payments by the rehabilitation facility or its
13employees for group health benefits shall be deposited in the
14Local Government Health Insurance Reserve Fund.
15    (k) Any domestic violence shelter or service within the
16State of Illinois may apply to the Director to have its
17employees, annuitants, and their dependents provided group
18health coverage under this Act on a non-insured basis. To
19participate, a domestic violence shelter or service must agree
20to enroll all of its employees and pay the entire cost of
21providing such coverage for its employees. The domestic
22violence shelter shall not be required to enroll those of its
23employees who are covered spouses or dependents under this plan
24or another group policy or plan providing health benefits as
25long as (1) an appropriate official from the domestic violence
26shelter attests that each employee not enrolled is a covered

 

 

SB2650- 30 -LRB100 17073 RPS 32224 b

1spouse or dependent under this plan or another group policy or
2plan and (2) at least 50% of the employees are enrolled and the
3domestic violence shelter remits the entire cost of providing
4coverage to those employees. Employees of a participating
5domestic violence shelter who are not enrolled due to coverage
6under another group health policy or plan may enroll in the
7event of a qualifying change in status, special enrollment, or
8special circumstance as defined by the Director or during the
9annual Benefit Choice Period. A participating domestic
10violence shelter may also elect to cover its annuitants.
11Dependent coverage shall be offered on an optional basis, with
12employees, or some combination of the 2 as determined by the
13domestic violence shelter or service. The domestic violence
14shelter or service shall be responsible for timely collection
15and transmission of dependent premiums.
16    The Director shall annually determine rates of payment,
17subject to the following constraints:
18        (1) In the first year of coverage, the rates shall be
19    equal to the amount normally charged to State employees for
20    elected optional coverages or for enrolled dependents
21    coverages or other contributory coverages on behalf of its
22    employees, adjusted for differences between State
23    employees and employees of the domestic violence shelter or
24    service in age, sex, geographic location or other relevant
25    demographic variables, plus an amount sufficient to pay for
26    the additional administrative costs of providing coverage

 

 

SB2650- 31 -LRB100 17073 RPS 32224 b

1    to employees of the domestic violence shelter or service
2    and their dependents.
3        (2) In subsequent years, a further adjustment shall be
4    made to reflect the actual prior years' claims experience
5    of the employees of the domestic violence shelter or
6    service.
7    Monthly payments by the domestic violence shelter or
8service or its employees for group health insurance shall be
9deposited in the Local Government Health Insurance Reserve
10Fund.
11    (l) A public community college or entity organized pursuant
12to the Public Community College Act may apply to the Director
13initially to have only annuitants not covered prior to July 1,
141992 by the district's health plan provided health coverage
15under this Act on a non-insured basis. The community college
16must execute a 2-year contract to participate in the Local
17Government Health Plan. Any annuitant may enroll in the event
18of a qualifying change in status, special enrollment, special
19circumstance as defined by the Director, or during the annual
20Benefit Choice Period.
21    The Director shall annually determine monthly rates of
22payment subject to the following constraints: for those
23community colleges with annuitants only enrolled, first year
24rates shall be equal to the average cost to cover claims for a
25State member adjusted for demographics, Medicare
26participation, and other factors; and in the second year, a

 

 

SB2650- 32 -LRB100 17073 RPS 32224 b

1further adjustment of rates shall be made to reflect the actual
2first year's claims experience of the covered annuitants.
3    (l-5) The provisions of subsection (l) become inoperative
4on July 1, 1999.
5    (m) The Director shall adopt any rules deemed necessary for
6implementation of this amendatory Act of 1989 (Public Act
786-978).
8    (n) Any child advocacy center within the State of Illinois
9may apply to the Director to have its employees, annuitants,
10and their dependents provided group health coverage under this
11Act on a non-insured basis. To participate, a child advocacy
12center must agree to enroll all of its employees and pay the
13entire cost of providing coverage for its employees. The child
14advocacy center shall not be required to enroll those of its
15employees who are covered spouses or dependents under this plan
16or another group policy or plan providing health benefits as
17long as (1) an appropriate official from the child advocacy
18center attests that each employee not enrolled is a covered
19spouse or dependent under this plan or another group policy or
20plan and (2) at least 50% of the employees are enrolled and the
21child advocacy center remits the entire cost of providing
22coverage to those employees. Employees of a participating child
23advocacy center who are not enrolled due to coverage under
24another group health policy or plan may enroll in the event of
25a qualifying change in status, special enrollment, or special
26circumstance as defined by the Director or during the annual

 

 

SB2650- 33 -LRB100 17073 RPS 32224 b

1Benefit Choice Period. A participating child advocacy center
2may also elect to cover its annuitants. Dependent coverage
3shall be offered on an optional basis, with the costs paid by
4the child advocacy center, its employees, or some combination
5of the 2 as determined by the child advocacy center. The child
6advocacy center shall be responsible for timely collection and
7transmission of dependent premiums.
8    The Director shall annually determine rates of payment,
9subject to the following constraints:
10        (1) In the first year of coverage, the rates shall be
11    equal to the amount normally charged to State employees for
12    elected optional coverages or for enrolled dependents
13    coverages or other contributory coverages on behalf of its
14    employees, adjusted for differences between State
15    employees and employees of the child advocacy center in
16    age, sex, geographic location, or other relevant
17    demographic variables, plus an amount sufficient to pay for
18    the additional administrative costs of providing coverage
19    to employees of the child advocacy center and their
20    dependents.
21        (2) In subsequent years, a further adjustment shall be
22    made to reflect the actual prior years' claims experience
23    of the employees of the child advocacy center.
24    Monthly payments by the child advocacy center or its
25employees for group health insurance shall be deposited into
26the Local Government Health Insurance Reserve Fund.

 

 

SB2650- 34 -LRB100 17073 RPS 32224 b

1(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
 
2    Section 10. The Illinois Pension Code is amended by
3changing Sections 14-152.1, 20-121, 20-123, 20-124, and 20-125
4and by adding Section 14-155.5 as follows:
 
5    (40 ILCS 5/14-152.1)
6    Sec. 14-152.1. Application and expiration of new benefit
7increases.
8    (a) As used in this Section, "new benefit increase" means
9an increase in the amount of any benefit provided under this
10Article, or an expansion of the conditions of eligibility for
11any benefit under this Article, that results from an amendment
12to this Code that takes effect after June 1, 2005 (the
13effective date of Public Act 94-4). "New benefit increase",
14however, does not include any benefit increase resulting from
15the changes made to Article 1 or this Article by Public Act
1696-37, Public Act 100-23, or this amendatory Act of the 100th
17General Assembly or by this amendatory Act of the 100th General
18Assembly.
19    (b) Notwithstanding any other provision of this Code or any
20subsequent amendment to this Code, every new benefit increase
21is subject to this Section and shall be deemed to be granted
22only in conformance with and contingent upon compliance with
23the provisions of this Section.
24    (c) The Public Act enacting a new benefit increase must

 

 

SB2650- 35 -LRB100 17073 RPS 32224 b

1identify and provide for payment to the System of additional
2funding at least sufficient to fund the resulting annual
3increase in cost to the System as it accrues.
4    Every new benefit increase is contingent upon the General
5Assembly providing the additional funding required under this
6subsection. The Commission on Government Forecasting and
7Accountability shall analyze whether adequate additional
8funding has been provided for the new benefit increase and
9shall report its analysis to the Public Pension Division of the
10Department of Insurance. A new benefit increase created by a
11Public Act that does not include the additional funding
12required under this subsection is null and void. If the Public
13Pension Division determines that the additional funding
14provided for a new benefit increase under this subsection is or
15has become inadequate, it may so certify to the Governor and
16the State Comptroller and, in the absence of corrective action
17by the General Assembly, the new benefit increase shall expire
18at the end of the fiscal year in which the certification is
19made.
20    (d) Every new benefit increase shall expire 5 years after
21its effective date or on such earlier date as may be specified
22in the language enacting the new benefit increase or provided
23under subsection (c). This does not prevent the General
24Assembly from extending or re-creating a new benefit increase
25by law.
26    (e) Except as otherwise provided in the language creating

 

 

SB2650- 36 -LRB100 17073 RPS 32224 b

1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including without limitation a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 100-23, eff. 7-6-17.)
 
11    (40 ILCS 5/14-155.5 new)
12    Sec. 14-155.5. Defined contribution plan for certain
13employees of the Illinois State Board of Elections.
14    (a) As used in this Section:
15    "Defined benefit plan" means the retirement plan available
16under this Article to members who have not made the election
17authorized under this Section.
18    "Eligible employee" means an employee of the Illinois State
19Board of Elections who is not covered by a collective
20bargaining agreement.
21    (b) By July 1, 2019, the System shall prepare and implement
22a defined contribution plan for eligible employees. The defined
23contribution plan developed under this Section shall be a plan
24that aggregates State and employee contributions in individual
25participant accounts which, after meeting any other

 

 

SB2650- 37 -LRB100 17073 RPS 32224 b

1requirements, are used for payouts after retirement in
2accordance with this Section and any other applicable laws.
3        (1) With respect to service as an eligible employee, a
4    person who first becomes an eligible employee on or after
5    July 1, 2019 may elect, in writing, to participate in the
6    defined contribution plan instead of the defined benefit
7    plan. This election is voluntary and irrevocable.
8        (2) A participant in the defined contribution plan
9    shall pay employee contributions at a rate of 3% of
10    compensation.
11        (3) State contributions shall be paid into the accounts
12    of all participants in the defined contribution plan at a
13    rate of 3% of compensation. State contributions, and the
14    earnings thereon, shall vest when the State contributions
15    are paid into the participant's account.
16        (4) The defined contribution plan may provide for
17    participants in the plan to be eligible for the defined
18    disability benefits available to other participants under
19    this Article. If it does, the System shall reduce the
20    employee contributions credited to the participant's
21    defined contribution plan account by an amount determined
22    by the System to cover the cost of offering such benefits.
23        (5) The defined contribution plan shall provide a
24    variety of options for investments. These options shall
25    include investments handled by the Illinois State Board of
26    Investment as well as private sector investment options.

 

 

SB2650- 38 -LRB100 17073 RPS 32224 b

1        (6) The defined contribution plan shall provide a
2    variety of options for payouts to participants in the
3    defined contribution plan who are no longer active in the
4    System and their survivors.
5        (7) To the extent authorized under federal law and as
6    authorized by the System, the plan shall allow former
7    participants in the plan to transfer or roll over employee
8    and State contributions, and the earnings thereon, from the
9    defined contribution plan into other qualified retirement
10    plans.
11        (8) The System shall reduce the employee contributions
12    credited to the member's defined contribution plan account
13    by an amount determined by the System to cover the cost of
14    offering these benefits and any applicable administrative
15    fees.
16    (c) Under the defined contribution plan, with respect to
17service as an eligible employee, an eligible employee may
18elect, in writing, to cease accruing benefits in the defined
19benefit plan and begin accruing benefits for future service in
20the defined contribution plan. The election to participate in
21the defined contribution plan with respect to service as an
22eligible employee is voluntary and irrevocable.
23        (1) Service credit under the defined contribution plan
24    may be used for determining retirement eligibility under
25    the defined benefit plan.
26        (2) The System shall make a good faith effort to

 

 

SB2650- 39 -LRB100 17073 RPS 32224 b

1    contact all eligible persons. The System shall mail
2    information describing the option to join the defined
3    contribution plan to each of these employees to his or her
4    last known address on file with the System. If the employee
5    is not responsive to other means of contact, it is
6    sufficient for the System to publish the details of the
7    option on its website.
8        (3) Upon request for further information describing
9    the option, the System shall provide eligible employees
10    with information from the System before exercising the
11    option to join the plan, including information on the
12    impact to their benefits and service. The individual
13    consultation shall include projections of the member's
14    defined benefits at retirement or earlier termination of
15    service and the value of the member's account at retirement
16    or earlier termination of service. The System shall not
17    provide advice or counseling with respect to whether the
18    employee should exercise the option. The System shall
19    inform eligible employees that they may also wish to obtain
20    information and counsel relating to their option from any
21    other available source, including, but not limited to,
22    labor organizations, private counsel, and financial
23    advisors.
24    (d) An eligible employee who participated in the defined
25benefit plan before electing to participate in the defined
26contribution plan may irrevocably elect to terminate all

 

 

SB2650- 40 -LRB100 17073 RPS 32224 b

1participation in the defined benefit plan. Upon that election,
2the System shall transfer to the member's individual account an
3amount equal to the amount of contribution refund that the
4member would be eligible to receive if the member terminated
5employment on that date and elected a refund of contributions,
6including regular interest for the respective years. The System
7shall make the transfer as a tax free transfer in accordance
8with Internal Revenue Service guidelines, for purposes of
9funding the amount credited to the member's individual account.
10    (e) In no event shall the System, its staff, its authorized
11representatives, or the Board be liable for any information
12given to an employee under this Section. The System may
13coordinate with the Illinois Department of Central Management
14Services and other retirement systems administering a defined
15contribution plan in accordance with this amendatory Act of the
16100th General Assembly to provide information concerning the
17impact of the defined contribution plan set forth in this
18Section.
19    (f) Notwithstanding any other provision of this Section, no
20person shall begin participating in the defined contribution
21plan until it has attained qualified plan status and received
22all necessary approvals from the U.S. Internal Revenue Service.
23    (g) The System shall report on its progress under this
24Section, including the available details of the defined
25contribution plan and the System's plans for informing eligible
26employees about the plan, to the Governor and the General

 

 

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1Assembly on or before January 15, 2019.
2    (h) The Illinois State Board of Investment shall be the
3plan sponsor for the defined contribution plan established
4under this Section.
5    (i) The intent of this amendatory Act of the 100th General
6Assembly is to ensure that the State's normal cost of
7participation in the defined contribution plan is similar, and
8if possible equal, to the State's normal cost of participation
9in the defined benefit plan, unless a lower State's normal cost
10is necessary to ensure cost neutrality.
 
11    (40 ILCS 5/20-121)  (from Ch. 108 1/2, par. 20-121)
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 20-121. Calculation of proportional retirement
15annuities.
16    (a) Upon retirement of the employee, a proportional
17retirement annuity shall be computed by each participating
18system in which pension credit has been established on the
19basis of pension credits under each system. The computation
20shall be in accordance with the formula or method prescribed by
21each participating system which is in effect at the date of the
22employee's latest withdrawal from service covered by any of the
23systems in which he has pension credits which he elects to have
24considered under this Article. However, the amount of any
25retirement annuity payable under the self-managed plan

 

 

SB2650- 42 -LRB100 17073 RPS 32224 b

1established under Section 15-158.2 of this Code depends solely
2on the value of the participant's vested account balances and
3is not subject to any proportional adjustment under this
4Section.
5    (a-5) For persons who participate in a defined contribution
6plan established under Section 14-155.5 of this Code to whom
7the provisions of this Article apply, the pension credits
8established under the defined contribution plan may be
9considered in determining eligibility for or the amount of the
10defined benefit retirement annuity that is payable by any other
11participating system.
12    (b) Combined pension credit under all retirement systems
13subject to this Article shall be considered in determining
14whether the minimum qualification has been met and the formula
15or method of computation which shall be applied, except as may
16be otherwise provided with respect to vesting in State or
17employer contributions in a defined contribution plan
18established under Section 14-155.5 of this Code. If a system
19has a step-rate formula for calculation of the retirement
20annuity, pension credits covering previous service which have
21been established under another system shall be considered in
22determining which range or ranges of the step-rate formula are
23to be applicable to the employee.
24    (c) Interest on pension credit shall continue to accumulate
25in accordance with the provisions of the law governing the
26retirement system in which the same has been established during

 

 

SB2650- 43 -LRB100 17073 RPS 32224 b

1the time an employee is in the service of another employer, on
2the assumption such employee, for interest purposes for pension
3credit, is continuing in the service covered by such retirement
4system.
5(Source: P.A. 91-887, eff. 7-6-00.)
 
6    (40 ILCS 5/20-123)  (from Ch. 108 1/2, par. 20-123)
7    (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9    Sec. 20-123. Survivor's annuity. The provisions governing
10a retirement annuity shall be applicable to a survivor's
11annuity. Appropriate credits shall be established for
12survivor's annuity purposes in those participating systems
13which provide survivor's annuities, according to the same
14conditions and subject to the same limitations and restrictions
15herein prescribed for a retirement annuity. If a participating
16system has no survivor's annuity benefit, or if the survivor's
17annuity benefit under that system is waived, pension credit
18established in that system shall not be considered in
19determining eligibility for or the amount of the survivor's
20annuity which may be payable by any other participating system.
21    For persons who participate in the self-managed plan
22established under Section 15-158.2 or the portable benefit
23package established under Section 15-136.4, pension credit
24established under Article 15 may be considered in determining
25eligibility for or the amount of the survivor's annuity that is

 

 

SB2650- 44 -LRB100 17073 RPS 32224 b

1payable by any other participating system, but pension credit
2established in any other system shall not result in any right
3to a survivor's annuity under the Article 15 system.
4    For persons who participate in a defined contribution plan
5established under Section 14-155.5 of this Code to whom the
6provisions of this Article apply, the pension credits
7established under the defined contribution plan may be
8considered in determining eligibility for or the amount of the
9defined benefit survivor's annuity that is payable by any other
10participating system, but pension credits established in any
11other system shall not result in any right to or increase in
12the value of a survivor's annuity under the defined
13contribution plan, which depends solely on the options chosen
14and the value of the participant's vested account balances and
15is not subject to any proportional adjustment under this
16Section.
17(Source: P.A. 91-887, eff. 7-6-00.)
 
18    (40 ILCS 5/20-124)  (from Ch. 108 1/2, par. 20-124)
19    (Text of Section WITHOUT the changes made by P.A. 98-599,
20which has been held unconstitutional)
21    Sec. 20-124. Maximum benefits.
22    (a) In no event shall the combined retirement or survivors
23annuities exceed the highest annuity which would have been
24payable by any participating system in which the employee has
25pension credits, if all of his pension credits had been

 

 

SB2650- 45 -LRB100 17073 RPS 32224 b

1validated in that system.
2    If the combined annuities should exceed the highest maximum
3as determined in accordance with this Section, the respective
4annuities shall be reduced proportionately according to the
5ratio which the amount of each proportional annuity bears to
6the aggregate of all such annuities.
7    (b) In the case of a participant in the self-managed plan
8established under Section 15-158.2 of this Code to whom the
9provisions of this Article apply:
10        (i) For purposes of calculating the combined
11    retirement annuity and the proportionate reduction, if
12    any, in a retirement annuity other than one payable under
13    the self-managed plan, the amount of the Article 15
14    retirement annuity shall be deemed to be the highest
15    annuity to which the annuitant would have been entitled if
16    he or she had participated in the traditional benefit
17    package as defined in Section 15-103.1 rather than the
18    self-managed plan.
19        (ii) For purposes of calculating the combined
20    survivor's annuity and the proportionate reduction, if
21    any, in a survivor's annuity other than one payable under
22    the self-managed plan, the amount of the Article 15
23    survivor's annuity shall be deemed to be the highest
24    survivor's annuity to which the survivor would have been
25    entitled if the deceased employee had participated in the
26    traditional benefit package as defined in Section 15-103.1

 

 

SB2650- 46 -LRB100 17073 RPS 32224 b

1    rather than the self-managed plan.
2        (iii) Benefits payable under the self-managed plan are
3    not subject to proportionate reduction under this Section.
4    (c) In the case of a participant in a defined contribution
5plan established under Section 14-155.5 of this Code to whom
6the provisions of this Article apply:
7        (i) For purposes of calculating the combined
8    retirement annuity and the proportionate reduction, if
9    any, in a defined benefit retirement annuity, any benefit
10    payable under the defined contribution plan shall not be
11    considered.
12        (ii) For purposes of calculating the combined
13    survivor's annuity and the proportionate reduction, if
14    any, in a defined benefit survivor's annuity, any benefit
15    payable under the defined contribution plan shall not be
16    considered.
17        (iii) Benefits payable under a defined contribution
18    plan established under Section 14-155.5 of this Code are
19    not subject to proportionate reduction under this Section.
20(Source: P.A. 91-887, eff. 7-6-00.)
 
21    (40 ILCS 5/20-125)  (from Ch. 108 1/2, par. 20-125)
22    (Text of Section WITHOUT the changes made by P.A. 98-599,
23which has been held unconstitutional)
24    Sec. 20-125. Return to employment - suspension of benefits.
25If a retired employee returns to employment which is covered by

 

 

SB2650- 47 -LRB100 17073 RPS 32224 b

1a system from which he is receiving a proportional annuity
2under this Article, his proportional annuity from all
3participating systems shall be suspended during the period of
4re-employment, except that this suspension does not apply to
5any distributions payable under the self-managed plan
6established under Section 15-158.2 of this Code or under a
7defined contribution plan established under Section 14-155.5
8of this Code.
9    The provisions of the Article under which such employment
10would be covered shall govern the determination of whether the
11employee has returned to employment, and if applicable the
12exemption of temporary employment or employment not exceeding a
13specified duration or frequency, for all participating systems
14from which the retired employee is receiving a proportional
15annuity under this Article, notwithstanding any contrary
16provisions in the other Articles governing such systems.
17(Source: P.A. 91-887, eff. 7-6-00.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.

 

 

SB2650- 48 -LRB100 17073 RPS 32224 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 375/3from Ch. 127, par. 523
4    5 ILCS 375/10from Ch. 127, par. 530
5    40 ILCS 5/14-152.1
6    40 ILCS 5/14-155.5 new
7    40 ILCS 5/20-121from Ch. 108 1/2, par. 20-121
8    40 ILCS 5/20-123from Ch. 108 1/2, par. 20-123
9    40 ILCS 5/20-124from Ch. 108 1/2, par. 20-124
10    40 ILCS 5/20-125from Ch. 108 1/2, par. 20-125