|
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB2650 Introduced 2/8/2018, by Sen. Terry Link SYNOPSIS AS INTRODUCED: | | |
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.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The State Employees Group Insurance Act of 1971 |
5 | | is amended by changing Sections 3 and 10 as follows:
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6 | | (5 ILCS 375/3) (from Ch. 127, par. 523)
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7 | | Sec. 3. Definitions. Unless the context otherwise |
8 | | requires, the
following words and phrases as used in this Act |
9 | | shall have the following
meanings. The Department may define |
10 | | these and other words and phrases
separately for the purpose of |
11 | | implementing specific programs providing benefits
under this |
12 | | Act.
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13 | | (a) "Administrative service organization" means any |
14 | | person, firm or
corporation experienced in the handling of |
15 | | claims which is
fully qualified, financially sound and capable |
16 | | of meeting the service
requirements of a contract of |
17 | | administration executed with the Department.
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18 | | (b) "Annuitant" means (1) an employee who retires, or has |
19 | | retired,
on or after January 1, 1966 on an immediate annuity |
20 | | under the provisions
of Articles 2, 14 (including an employee |
21 | | who has elected to receive an alternative retirement |
22 | | cancellation payment under Section 14-108.5 of the Illinois |
23 | | Pension Code in lieu of an annuity or an employee who, in lieu |
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1 | | of receiving an annuity under that Article, has retired under |
2 | | the defined contribution plan established under Section |
3 | | 14-155.5 of that Article ), or 15 (including an employee who has |
4 | | retired under the optional
retirement program established |
5 | | under Section 15-158.2),
paragraphs (2), (3), or (5) of Section |
6 | | 16-106, or
Article 18 of the Illinois Pension Code; (2) any |
7 | | person who was receiving
group insurance coverage under this |
8 | | Act as of March 31, 1978 by
reason of his status as an |
9 | | annuitant, even though the annuity in relation
to which such |
10 | | coverage was provided is a proportional annuity based on less
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11 | | than the minimum period of service required for a retirement |
12 | | annuity in
the system involved; (3) any person not otherwise |
13 | | covered by this Act
who has retired as a participating member |
14 | | under Article 2 of the Illinois
Pension Code but is ineligible |
15 | | for the retirement annuity under Section
2-119 of the Illinois |
16 | | Pension Code; (4) the spouse of any person who
is receiving a |
17 | | retirement annuity under Article 18 of the Illinois Pension
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18 | | Code and who is covered under a group health insurance program |
19 | | sponsored
by a governmental employer other than the State of |
20 | | Illinois and who has
irrevocably elected to waive his or her |
21 | | coverage under this Act and to have
his or her spouse |
22 | | considered as the "annuitant" under this Act and not as
a |
23 | | "dependent"; or (5) an employee who retires, or has retired, |
24 | | from a
qualified position, as determined according to rules |
25 | | promulgated by the
Director, under a qualified local |
26 | | government, a qualified rehabilitation
facility, a qualified |
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1 | | domestic violence shelter or service, or a qualified child |
2 | | advocacy center. (For definition
of "retired employee", see (p) |
3 | | post).
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4 | | (b-5) (Blank).
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5 | | (b-6) (Blank).
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6 | | (b-7) (Blank).
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7 | | (c) "Carrier" means (1) an insurance company, a corporation |
8 | | organized
under the Limited Health Service Organization Act or |
9 | | the Voluntary Health
Services Plan Act, a partnership, or other |
10 | | nongovernmental organization,
which is authorized to do group |
11 | | life or group health insurance business in
Illinois, or (2) the |
12 | | State of Illinois as a self-insurer.
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13 | | (d) "Compensation" means salary or wages payable on a |
14 | | regular
payroll by the State Treasurer on a warrant of the |
15 | | State Comptroller out
of any State, trust or federal fund, or |
16 | | by the Governor of the State
through a disbursing officer of |
17 | | the State out of a trust or out of
federal funds, or by any |
18 | | Department out of State, trust, federal or
other funds held by |
19 | | the State Treasurer or the Department, to any person
for |
20 | | personal services currently performed, and ordinary or |
21 | | accidental
disability benefits under Articles 2, 14, 15 |
22 | | (including ordinary or accidental
disability benefits under |
23 | | the optional retirement program established under
Section |
24 | | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or |
25 | | Article 18 of the Illinois Pension Code, for disability
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26 | | incurred after January 1, 1966, or benefits payable under the |
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1 | | Workers'
Compensation or Occupational Diseases Act or benefits |
2 | | payable under a sick
pay plan established in accordance with |
3 | | Section 36 of the State Finance Act.
"Compensation" also means |
4 | | salary or wages paid to an employee of any
qualified local |
5 | | government, qualified rehabilitation facility,
qualified |
6 | | domestic violence shelter or service, or qualified child |
7 | | advocacy center.
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8 | | (e) "Commission" means the State Employees Group Insurance |
9 | | Advisory
Commission authorized by this Act. Commencing July 1, |
10 | | 1984, "Commission"
as used in this Act means the Commission on |
11 | | Government Forecasting and Accountability as
established by |
12 | | the Legislative Commission Reorganization Act of 1984.
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13 | | (f) "Contributory", when referred to as contributory |
14 | | coverage, shall
mean optional coverages or benefits elected by |
15 | | the member toward the cost of
which such member makes |
16 | | contribution, or which are funded in whole or in part
through |
17 | | the acceptance of a reduction in earnings or the foregoing of |
18 | | an
increase in earnings by an employee, as distinguished from |
19 | | noncontributory
coverage or benefits which are paid entirely by |
20 | | the State of Illinois
without reduction of the member's salary.
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21 | | (g) "Department" means any department, institution, board,
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22 | | commission, officer, court or any agency of the State |
23 | | government
receiving appropriations and having power to |
24 | | certify payrolls to the
Comptroller authorizing payments of |
25 | | salary and wages against such
appropriations as are made by the |
26 | | General Assembly from any State fund, or
against trust funds |
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1 | | held by the State Treasurer and includes boards of
trustees of |
2 | | the retirement systems created by Articles 2, 14, 15, 16 and
18 |
3 | | of the Illinois Pension Code. "Department" also includes the |
4 | | Illinois
Comprehensive Health Insurance Board, the Board of |
5 | | Examiners established under
the Illinois Public Accounting |
6 | | Act, and the Illinois Finance Authority.
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7 | | (h) "Dependent", when the term is used in the context of |
8 | | the 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 |
10 | | who lives with the
member from the time of the placement for |
11 | | adoption until entry
of an order of adoption, a stepchild or |
12 | | adjudicated child, or a child who lives with the member
if such |
13 | | member is a court appointed guardian of the child or (2)
age 19 |
14 | | or over who has a mental or physical disability from a cause |
15 | | originating prior to the age of 19 (age 26 if enrolled as an |
16 | | adult child dependent). For
the health plan only, the term |
17 | | "dependent" also includes (1) any person
enrolled prior to the |
18 | | effective date of this Section who is dependent upon
the member |
19 | | to the extent that the member may claim such person as a
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20 | | dependent for income tax deduction purposes and (2) any person |
21 | | who
has received after June 30, 2000 an organ transplant and |
22 | | who is financially
dependent upon the member and eligible to be |
23 | | claimed as a dependent for income
tax purposes. A member |
24 | | requesting to cover any dependent must provide documentation as |
25 | | requested by the Department of Central Management Services and |
26 | | file with the Department any and all forms required by the |
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1 | | Department.
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2 | | (i) "Director" means the Director of the Illinois |
3 | | Department of Central
Management Services.
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4 | | (j) "Eligibility period" means the period of time a member |
5 | | has to
elect enrollment in programs or to select benefits |
6 | | without regard to
age, sex or health.
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7 | | (k) "Employee" means and includes each officer or employee |
8 | | in the
service of a department who (1) receives his |
9 | | compensation for
service rendered to the department on a |
10 | | warrant issued pursuant to a payroll
certified by a department |
11 | | or on a warrant or check issued and drawn by a
department upon |
12 | | a trust, federal or other fund or on a warrant issued
pursuant |
13 | | to a payroll certified by an elected or duly appointed officer
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14 | | of the State or who receives payment of the performance of |
15 | | personal
services on a warrant issued pursuant to a payroll |
16 | | certified by a
Department and drawn by the Comptroller upon the |
17 | | State Treasurer against
appropriations made by the General |
18 | | Assembly from any fund or against
trust funds held by the State |
19 | | Treasurer, and (2) is employed full-time or
part-time in a |
20 | | position normally requiring actual performance of duty
during |
21 | | not less than 1/2 of a normal work period, as established by |
22 | | the
Director in cooperation with each department, except that |
23 | | persons elected
by popular vote will be considered employees |
24 | | during the entire
term for which they are elected regardless of |
25 | | hours 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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1 | | reason of such person's employment to
participate in one of the |
2 | | State retirement systems under Articles 2, 14, 15
(either the |
3 | | regular Article 15 system or the optional retirement program
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4 | | established under Section 15-158.2) or 18, or under paragraph |
5 | | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension |
6 | | Code, but such term does include persons who are employed |
7 | | during
the 6 month qualifying period under Article 14 of the |
8 | | Illinois Pension
Code. Such term also includes any person who |
9 | | (1) after January 1, 1966,
is receiving ordinary or accidental |
10 | | disability benefits under Articles
2, 14, 15 (including |
11 | | ordinary or accidental disability benefits under the
optional |
12 | | retirement program established under Section 15-158.2), |
13 | | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of |
14 | | the
Illinois Pension Code, for disability incurred after |
15 | | January 1, 1966, (2)
receives total permanent or total |
16 | | temporary disability under the Workers'
Compensation Act or |
17 | | Occupational Disease Act as a result of injuries
sustained or |
18 | | illness contracted in the course of employment with the
State |
19 | | of Illinois, or (3) is not otherwise covered under this Act and |
20 | | has
retired as a participating member under Article 2 of the |
21 | | Illinois Pension
Code but is ineligible for the retirement |
22 | | annuity under Section 2-119 of
the Illinois Pension Code. |
23 | | However, a person who satisfies the criteria
of the foregoing |
24 | | definition of "employee" except that such person is made
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25 | | ineligible to participate in the State Universities Retirement |
26 | | System by
clause (4) of subsection (a) of Section 15-107 of the |
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1 | | Illinois Pension
Code is also an "employee" for the purposes of |
2 | | this Act. "Employee" also
includes any person receiving or |
3 | | eligible for benefits under a sick pay
plan established in |
4 | | accordance with Section 36 of the State Finance Act.
"Employee" |
5 | | also includes (i) each officer or employee in the service of a
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6 | | qualified local government, including persons appointed as |
7 | | trustees of
sanitary districts regardless of hours devoted to |
8 | | the service of the
sanitary district, (ii) each employee in the |
9 | | service of a qualified
rehabilitation facility, (iii) each |
10 | | full-time employee in the service of a
qualified domestic |
11 | | violence shelter or service, and (iv) each full-time employee |
12 | | in the service of a qualified child advocacy center, as |
13 | | determined according to
rules promulgated by the Director.
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14 | | (l) "Member" means an employee, annuitant, retired |
15 | | employee or survivor. In the case of an annuitant or retired |
16 | | employee who first becomes an annuitant or retired employee on |
17 | | or after the effective date of this amendatory Act of the 97th |
18 | | General Assembly, the individual must meet the minimum vesting |
19 | | requirements of the applicable retirement system in order to be |
20 | | eligible for group insurance benefits under that system. In the |
21 | | case of a survivor who first becomes a survivor on or after the |
22 | | effective date of this amendatory Act of the 97th General |
23 | | Assembly, the deceased employee, annuitant, or retired |
24 | | employee upon whom the annuity is based must have been eligible |
25 | | to participate in the group insurance system under the |
26 | | applicable retirement system in order for the survivor to be |
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1 | | eligible for group insurance benefits under that system.
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2 | | (m) "Optional coverages or benefits" means those coverages |
3 | | or
benefits available to the member on his or her voluntary |
4 | | election, and at
his or her own expense.
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5 | | (n) "Program" means the group life insurance, health |
6 | | benefits and other
employee benefits designed and contracted |
7 | | for by the Director under this Act.
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8 | | (o) "Health plan" means a health benefits
program offered
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9 | | by the State of Illinois for persons eligible for the plan.
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10 | | (p) "Retired employee" means any person who would be an |
11 | | annuitant as
that term is defined herein but for the fact that |
12 | | such person retired prior to
January 1, 1966. Such term also |
13 | | includes any person formerly employed by
the University of |
14 | | Illinois in the Cooperative Extension Service who would
be an |
15 | | annuitant but for the fact that such person was made ineligible |
16 | | to
participate in the State Universities Retirement System by |
17 | | clause (4) of
subsection (a) of Section 15-107 of the Illinois
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18 | | Pension Code.
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19 | | (q) "Survivor" means a person receiving an annuity as a |
20 | | survivor of an
employee or of an annuitant. "Survivor" also |
21 | | includes: (1) the surviving
dependent of a person who satisfies |
22 | | the definition of "employee" except that
such person is made |
23 | | ineligible to participate in the State Universities
Retirement |
24 | | System by clause (4) of subsection (a)
of Section 15-107 of the |
25 | | Illinois Pension Code; (2) the surviving
dependent of any |
26 | | person formerly employed by the University of Illinois in
the |
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1 | | Cooperative Extension Service who would be an annuitant except |
2 | | for the
fact that such person was made ineligible to |
3 | | participate in the State
Universities Retirement System by |
4 | | clause (4) of subsection (a) of Section
15-107 of the Illinois |
5 | | Pension Code; and (3) the surviving dependent of a person who |
6 | | was an annuitant under this Act by virtue of receiving an |
7 | | alternative retirement cancellation payment under Section |
8 | | 14-108.5 of the Illinois Pension Code.
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9 | | (q-2) "SERS" means the State Employees' Retirement System |
10 | | of Illinois, created under Article 14 of the Illinois Pension |
11 | | Code.
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12 | | (q-3) "SURS" means the State Universities Retirement |
13 | | System, created under Article 15 of the Illinois Pension Code.
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14 | | (q-4) "TRS" means the Teachers' Retirement System of the |
15 | | State of Illinois, created under Article 16 of the Illinois |
16 | | Pension Code.
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17 | | (q-5) (Blank).
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18 | | (q-6) (Blank).
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19 | | (q-7) (Blank).
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20 | | (r) "Medical services" means the services provided within |
21 | | the scope
of their licenses by practitioners in all categories |
22 | | licensed under the
Medical Practice Act of 1987.
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23 | | (s) "Unit of local government" means any county, |
24 | | municipality,
township, school district (including a |
25 | | combination of school districts under
the Intergovernmental |
26 | | Cooperation Act), special district or other unit,
designated as |
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1 | | a
unit of local government by law, which exercises limited |
2 | | governmental
powers or powers in respect to limited |
3 | | governmental subjects, any
not-for-profit association with a |
4 | | membership that primarily includes
townships and township |
5 | | officials, that has duties that include provision of
research |
6 | | service, dissemination of information, and other acts for the
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7 | | purpose of improving township government, and that is funded |
8 | | wholly or
partly in accordance with Section 85-15 of the |
9 | | Township Code; any
not-for-profit corporation or association, |
10 | | with a membership consisting
primarily of municipalities, that |
11 | | operates its own utility system, and
provides research, |
12 | | training, dissemination of information, or other acts to
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13 | | promote cooperation between and among municipalities that |
14 | | provide utility
services and for the advancement of the goals |
15 | | and purposes of its
membership;
the Southern Illinois |
16 | | Collegiate Common Market, which is a consortium of higher
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17 | | education institutions in Southern Illinois; the Illinois |
18 | | Association of
Park Districts; and any hospital provider that |
19 | | is owned by a county that has 100 or fewer hospital beds and |
20 | | has not already joined the program. "Qualified
local |
21 | | government" means a unit of local government approved by the |
22 | | Director and
participating in a program created under |
23 | | subsection (i) of Section 10 of this
Act.
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24 | | (t) "Qualified rehabilitation facility" means any |
25 | | not-for-profit
organization that is accredited by the |
26 | | Commission on Accreditation of
Rehabilitation Facilities or |
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1 | | certified by the Department
of Human Services (as successor to |
2 | | the Department of Mental Health
and Developmental |
3 | | Disabilities) to provide services to persons with
disabilities
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4 | | and which receives funds from the State of Illinois for |
5 | | providing those
services, approved by the Director and |
6 | | participating in a program created
under subsection (j) of |
7 | | Section 10 of this Act.
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8 | | (u) "Qualified domestic violence shelter or service" means |
9 | | any Illinois
domestic violence shelter or service and its |
10 | | administrative offices funded
by the Department of Human |
11 | | Services (as successor to the Illinois Department of
Public |
12 | | Aid),
approved by the Director and
participating in a program |
13 | | created under subsection (k) of Section 10.
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14 | | (v) "TRS benefit recipient" means a person who:
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15 | | (1) is not a "member" as defined in this Section; and
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16 | | (2) is receiving a monthly benefit or retirement |
17 | | annuity
under Article 16 of the Illinois Pension Code; and
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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.
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3 | | (w) "TRS dependent beneficiary" means a person who:
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4 | | (1) is not a "member" or "dependent" as defined in this |
5 | | Section; and
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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).
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16 | | "TRS dependent beneficiary" does not include, as indicated |
17 | | under paragraph (2) of this subsection (w), a dependent of the |
18 | | survivor of a TRS benefit recipient who first becomes a |
19 | | dependent of a survivor of a TRS benefit recipient on or after |
20 | | the effective date of this amendatory Act of the 97th General |
21 | | Assembly unless that dependent would have been eligible for |
22 | | coverage as a dependent of the deceased TRS benefit recipient |
23 | | upon whom the survivor benefit is based. |
24 | | (x) "Military leave" refers to individuals in basic
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25 | | training for reserves, special/advanced training, annual |
26 | | training, emergency
call up, activation by the President of the |
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1 | | United States, or any other training or duty in service to the |
2 | | United States Armed Forces.
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3 | | (y) (Blank).
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4 | | (z) "Community college benefit recipient" means a person |
5 | | who:
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6 | | (1) is not a "member" as defined in this Section; and
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7 | | (2) is receiving a monthly survivor's annuity or |
8 | | retirement annuity
under Article 15 of the Illinois Pension |
9 | | Code; and
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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
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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).
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23 | | (aa) "Community college dependent beneficiary" means a |
24 | | person who:
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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).
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9 | | "Community college dependent beneficiary" does not |
10 | | include, as indicated under paragraph (2) of this subsection |
11 | | (aa), a dependent of the survivor of a community college |
12 | | benefit recipient who first becomes a dependent of a survivor |
13 | | of a community college benefit recipient on or after the |
14 | | effective date of this amendatory Act of the 97th General |
15 | | Assembly unless that dependent would have been eligible for |
16 | | coverage as a dependent of the deceased community college |
17 | | benefit recipient upon whom the survivor annuity is based. |
18 | | (bb) "Qualified child advocacy center" means any Illinois |
19 | | child advocacy center and its administrative offices funded by |
20 | | the Department of Children and Family Services, as defined by |
21 | | the Children's Advocacy Center Act (55 ILCS 80/), approved by |
22 | | the Director and participating in a program created under |
23 | | subsection (n) of Section 10.
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24 | | (cc) "Placement for adoption" means the assumption and |
25 | | retention by a member of a legal obligation for total or |
26 | | partial support of a child in anticipation of adoption of the |
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| | SB2650 | - 16 - | LRB100 17073 RPS 32224 b |
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1 | | child. The child's placement with the member terminates upon |
2 | | the 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 |
7 | | group life
insurance and, subject to member paid contributions |
8 | | set by the Department or
required by this Section and except as |
9 | | provided in this Section, the basic program of group health |
10 | | benefits on each
eligible member, except a member, not |
11 | | otherwise
covered by this Act, who has retired as a |
12 | | participating member under Article 2
of the Illinois Pension |
13 | | Code but is ineligible for the retirement annuity under
Section |
14 | | 2-119 of the Illinois Pension Code, and part of each eligible |
15 | | member's
and retired member's premiums for health insurance |
16 | | coverage for enrolled
dependents as provided by Section 9. The |
17 | | State shall pay the cost of the basic
program of group health |
18 | | benefits only after benefits are reduced by the amount
of |
19 | | benefits covered by Medicare for all members and dependents
who |
20 | | are eligible for benefits under Social Security or
the Railroad |
21 | | Retirement system or who had sufficient Medicare-covered
|
22 | | government employment, except that such reduction in benefits |
23 | | shall apply only
to those members and dependents who (1) first |
24 | | become eligible
for such Medicare coverage on or after July 1, |
25 | | 1992; or (2) are
Medicare-eligible members or dependents of a |
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| | SB2650 | - 17 - | LRB100 17073 RPS 32224 b |
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1 | | local government unit which began
participation in the program |
2 | | on or after July 1, 1992; or (3) remain eligible
for, but no |
3 | | longer receive Medicare coverage which they had been receiving |
4 | | on
or after July 1, 1992. The Department may determine the |
5 | | aggregate level of the
State's contribution on the basis of |
6 | | actual cost of medical services adjusted
for age, sex or |
7 | | geographic or other demographic characteristics which affect
|
8 | | the costs of such programs.
|
9 | | The cost of participation in the basic program of group |
10 | | health benefits
for the dependent or survivor of a living or |
11 | | deceased retired employee who was
formerly employed by the |
12 | | University of Illinois in the Cooperative Extension
Service and |
13 | | would be an annuitant but for the fact that he or she was made
|
14 | | ineligible to participate in the State Universities Retirement |
15 | | System by clause
(4) of subsection (a) of Section 15-107 of the |
16 | | Illinois Pension Code shall not
be greater than the cost of |
17 | | participation that would otherwise apply to that
dependent or |
18 | | survivor if he or she were the dependent or survivor of an
|
19 | | annuitant 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).
|
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| | SB2650 | - 18 - | LRB100 17073 RPS 32224 b |
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1 | | (a-8) Any annuitant, survivor, or retired employee may |
2 | | waive or terminate coverage in
the program of group health |
3 | | benefits. Any such annuitant, survivor, or retired employee
who |
4 | | has waived or terminated coverage may enroll or re-enroll in |
5 | | the
program of group health benefits only during the annual |
6 | | benefit choice period,
as determined by the Director; except |
7 | | that in the event of termination of
coverage due to nonpayment |
8 | | of premiums, the annuitant, survivor, or retired employee
may |
9 | | not re-enroll in the program.
|
10 | | (a-8.5) Beginning on the effective date of this amendatory |
11 | | Act of the 97th General Assembly, the Director of Central |
12 | | Management Services shall, on an annual basis, determine the |
13 | | amount that the State shall contribute toward the basic program |
14 | | of group health benefits on behalf of annuitants (including |
15 | | individuals who (i) participated in the General Assembly |
16 | | Retirement System, the State Employees' Retirement System of |
17 | | Illinois, the State Universities Retirement System, the |
18 | | Teachers' Retirement System of the State of Illinois, or the |
19 | | Judges Retirement System of Illinois and (ii) qualify as |
20 | | annuitants under subsection (b) of Section 3 of this Act), |
21 | | survivors (including individuals who (i) receive an annuity as |
22 | | a survivor of an individual who participated in the General |
23 | | Assembly Retirement System, the State Employees' Retirement |
24 | | System of Illinois, the State Universities Retirement System, |
25 | | the Teachers' Retirement System of the State of Illinois, or |
26 | | the Judges Retirement System of Illinois and (ii) qualify as |
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| | SB2650 | - 19 - | LRB100 17073 RPS 32224 b |
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1 | | survivors under subsection (q) of Section 3 of this Act), and |
2 | | retired employees (as defined in subsection (p) of Section 3 of |
3 | | this Act). The remainder of the cost of coverage for each |
4 | | annuitant, survivor, or retired employee, as determined by the |
5 | | Director of Central Management Services, shall be the |
6 | | responsibility of that annuitant, survivor, or retired |
7 | | employee. |
8 | | Contributions required of annuitants, survivors, and |
9 | | retired employees shall be the same for all retirement systems |
10 | | and shall also be based on whether an individual has made an |
11 | | election under Section 15-135.1 of the Illinois Pension Code. |
12 | | Contributions may be based on annuitants', survivors', or |
13 | | retired employees' Medicare eligibility, but may not be based |
14 | | on Social Security eligibility. |
15 | | (a-9) No later than May 1 of each calendar year, the |
16 | | Director
of Central Management Services shall certify in |
17 | | writing to the Executive
Secretary of the State Employees' |
18 | | Retirement System of Illinois the amounts
of the Medicare |
19 | | supplement health care premiums and the amounts of the
health |
20 | | care premiums for all other retirees who are not Medicare |
21 | | eligible.
|
22 | | A separate calculation of the premiums based upon the |
23 | | actual cost of each
health care plan shall be so certified.
|
24 | | The Director of Central Management Services shall provide |
25 | | to the
Executive Secretary of the State Employees' Retirement |
26 | | System of
Illinois such information, statistics, and other data |
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| | SB2650 | - 20 - | LRB100 17073 RPS 32224 b |
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1 | | as he or she
may require to review the premium amounts |
2 | | certified by the Director
of Central Management Services.
|
3 | | The Department of Central Management Services, or any |
4 | | successor agency designated to procure healthcare contracts |
5 | | pursuant to this Act, is authorized to establish funds, |
6 | | separate accounts provided by any bank or banks as defined by |
7 | | the Illinois Banking Act, or separate accounts provided by any |
8 | | savings and loan association or associations as defined by the |
9 | | Illinois Savings and Loan Act of 1985 to be held by the |
10 | | Director, outside the State treasury, for the purpose of |
11 | | receiving the transfer of moneys from the Local Government |
12 | | Health Insurance Reserve Fund. The Department may promulgate |
13 | | rules further defining the methodology for the transfers. Any |
14 | | interest earned by moneys in the funds or accounts shall inure |
15 | | to the Local Government Health Insurance Reserve Fund. The |
16 | | transferred moneys, and interest accrued thereon, shall be used |
17 | | exclusively for transfers to administrative service |
18 | | organizations or their financial institutions for payments of |
19 | | claims to claimants and providers under the self-insurance |
20 | | health plan. The transferred moneys, and interest accrued |
21 | | thereon, shall not be used for any other purpose including, but |
22 | | not limited to, reimbursement of administration fees due the |
23 | | administrative service organization pursuant to its contract |
24 | | or contracts with the Department.
|
25 | | (a-10) For purposes of determining State contributions |
26 | | under this Section, service established under a defined |
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| | SB2650 | - 21 - | LRB100 17073 RPS 32224 b |
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1 | | contribution plan under Section 14-155.5 of the Illinois |
2 | | Pension Code shall be included in determining an employee's |
3 | | creditable service. Any credit terminated as part of a transfer |
4 | | of contributions to a defined contribution plan under Section |
5 | | 14-155.5 of the Illinois Pension Code shall also be included in |
6 | | determining an employee's creditable service. |
7 | | (b) State employees who become eligible for this program on |
8 | | or after January
1, 1980 in positions normally requiring actual |
9 | | performance of duty not less
than 1/2 of a normal work period |
10 | | but not equal to that of a normal work period,
shall be given |
11 | | the option of participating in the available program. If the
|
12 | | employee elects coverage, the State shall contribute on behalf |
13 | | of such employee
to the cost of the employee's benefit and any |
14 | | applicable dependent supplement,
that sum which bears the same |
15 | | percentage as that percentage of time the
employee regularly |
16 | | works when compared to normal work period.
|
17 | | (c) The basic non-contributory coverage from the basic |
18 | | program of
group health benefits shall be continued for each |
19 | | employee not in pay status or
on active service by reason of |
20 | | (1) leave of absence due to illness or injury,
(2) authorized |
21 | | educational leave of absence or sabbatical leave, or (3)
|
22 | | military leave. This coverage shall continue until
expiration |
23 | | of authorized leave and return to active service, but not to |
24 | | exceed
24 months for leaves under item (1) or (2). This |
25 | | 24-month limitation and the
requirement of returning to active |
26 | | service shall not apply to persons receiving
ordinary or |
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| | SB2650 | - 22 - | LRB100 17073 RPS 32224 b |
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1 | | accidental disability benefits or retirement benefits through |
2 | | the
appropriate State retirement system or benefits under the |
3 | | Workers' Compensation
or Occupational Disease Act.
|
4 | | (d) The basic group life insurance coverage shall continue, |
5 | | with
full State contribution, where such person is (1) absent |
6 | | from active
service by reason of disability arising from any |
7 | | cause other than
self-inflicted, (2) on authorized educational |
8 | | leave of absence or
sabbatical leave, or (3) on military leave.
|
9 | | (e) Where the person is in non-pay status for a period in |
10 | | excess of
30 days or on leave of absence, other than by reason |
11 | | of disability,
educational or sabbatical leave, or military |
12 | | leave, such
person may continue coverage only by making |
13 | | personal
payment equal to the amount normally contributed by |
14 | | the State on such person's
behalf. Such payments and coverage |
15 | | may be continued: (1) until such time as
the person returns to |
16 | | a status eligible for coverage at State expense, but not
to |
17 | | exceed 24 months or (2) until such person's employment or |
18 | | annuitant status
with the State is terminated (exclusive of any |
19 | | additional service imposed pursuant to law).
|
20 | | (f) The Department shall establish by rule the extent to |
21 | | which other
employee benefits will continue for persons in |
22 | | non-pay status or who are
not in active service.
|
23 | | (g) The State shall not pay the cost of the basic |
24 | | non-contributory
group life insurance, program of health |
25 | | benefits and other employee benefits
for members who are |
26 | | survivors as defined by paragraphs (1) and (2) of
subsection |
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| | SB2650 | - 23 - | LRB100 17073 RPS 32224 b |
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1 | | (q) of Section 3 of this Act. The costs of benefits for these
|
2 | | survivors shall be paid by the survivors or by the University |
3 | | of Illinois
Cooperative Extension Service, or any combination |
4 | | thereof.
However, the State shall pay the amount of the |
5 | | reduction in the cost of
participation, if any, resulting from |
6 | | the amendment to subsection (a) made
by this amendatory Act of |
7 | | the 91st General Assembly.
|
8 | | (h) Those persons occupying positions with any department |
9 | | as a result
of emergency appointments pursuant to Section 8b.8 |
10 | | of the Personnel Code
who are not considered employees under |
11 | | this Act shall be given the option
of participating in the |
12 | | programs of group life insurance, health benefits and
other |
13 | | employee benefits. Such persons electing coverage may |
14 | | participate only
by making payment equal to the amount normally |
15 | | contributed by the State for
similarly situated employees. Such |
16 | | amounts shall be determined by the
Director. Such payments and |
17 | | coverage may be continued until such time as the
person becomes |
18 | | an employee pursuant to this Act or such person's appointment |
19 | | is
terminated.
|
20 | | (i) Any unit of local government within the State of |
21 | | Illinois
may apply to the Director to have its employees, |
22 | | annuitants, and their
dependents provided group health |
23 | | coverage under this Act on a non-insured
basis. To participate, |
24 | | a unit of local government must agree to enroll
all of its |
25 | | employees, who may select coverage under either the State group
|
26 | | health benefits plan or a health maintenance organization that |
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| | SB2650 | - 24 - | LRB100 17073 RPS 32224 b |
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1 | | has
contracted with the State to be available as a health care |
2 | | provider for
employees as defined in this Act. A unit of local |
3 | | government must remit the
entire cost of providing coverage |
4 | | under the State group health benefits plan
or, for coverage |
5 | | under a health maintenance organization, an amount determined
|
6 | | by the Director based on an analysis of the sex, age, |
7 | | geographic location, or
other relevant demographic variables |
8 | | for its employees, except that the unit of
local government |
9 | | shall not be required to enroll those of its employees who are
|
10 | | covered spouses or dependents under this plan or another group |
11 | | policy or plan
providing health benefits as long as (1) an |
12 | | appropriate official from the unit
of local government attests |
13 | | that each employee not enrolled is a covered spouse
or |
14 | | dependent under this plan or another group policy or plan, and |
15 | | (2) at least
50% of the employees are enrolled and the unit of |
16 | | local government remits
the entire cost of providing coverage |
17 | | to those employees, except that a
participating school district |
18 | | must have enrolled at least 50% of its full-time
employees who |
19 | | have not waived coverage under the district's group health
plan |
20 | | by participating in a component of the district's cafeteria |
21 | | plan. A
participating school district is not required to enroll |
22 | | a full-time employee
who has waived coverage under the |
23 | | district's health plan, provided that an
appropriate official |
24 | | from the participating school district attests that the
|
25 | | full-time employee has waived coverage by participating in a |
26 | | component of the
district's cafeteria plan. For the purposes of |
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| | SB2650 | - 25 - | LRB100 17073 RPS 32224 b |
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1 | | this subsection, "participating
school district" includes a |
2 | | unit of local government whose primary purpose is
education as |
3 | | defined by the Department's rules.
|
4 | | Employees of a participating unit of local government who |
5 | | are not enrolled
due to coverage under another group health |
6 | | policy or plan may enroll in
the event of a qualifying change |
7 | | in status, special enrollment, special
circumstance as defined |
8 | | by the Director, or during the annual Benefit Choice
Period. A |
9 | | participating unit of local government may also elect to cover |
10 | | its
annuitants. Dependent coverage shall be offered on an |
11 | | optional basis, with the
costs paid by the unit of local |
12 | | government, its employees, or some combination
of the two as |
13 | | determined by the unit of local government. The unit of local
|
14 | | government shall be responsible for timely collection and |
15 | | transmission of
dependent premiums.
|
16 | | The Director shall annually determine monthly rates of |
17 | | payment, 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 |
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| | SB2650 | - 26 - | LRB100 17073 RPS 32224 b |
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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 |
8 | | a health
maintenance organization, the Director shall annually |
9 | | determine for each
participating unit of local government the |
10 | | maximum monthly amount the unit
may contribute toward that |
11 | | coverage, based on an analysis of (i) the age,
sex, geographic |
12 | | location, and other relevant demographic variables of the
|
13 | | unit's employees and (ii) the cost to cover those employees |
14 | | under the State
group health benefits plan. The Director may |
15 | | similarly determine the
maximum monthly amount each unit of |
16 | | local government may contribute toward
coverage of its |
17 | | employees' dependents under a health maintenance organization.
|
18 | | Monthly payments by the unit of local government or its |
19 | | employees for
group health benefits plan or health maintenance |
20 | | organization coverage shall
be deposited in the Local |
21 | | Government Health Insurance Reserve Fund.
|
22 | | The Local Government Health Insurance Reserve Fund is |
23 | | hereby created as a nonappropriated trust fund to be held |
24 | | outside the State Treasury, with the State Treasurer as |
25 | | custodian. The Local Government Health Insurance Reserve Fund |
26 | | shall be a continuing
fund not subject to fiscal year |
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| | SB2650 | - 27 - | LRB100 17073 RPS 32224 b |
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1 | | limitations. The Local Government Health Insurance Reserve |
2 | | Fund is not subject to administrative charges or charge-backs, |
3 | | including but not limited to those authorized under Section 8h |
4 | | of the State Finance Act. All revenues arising from the |
5 | | administration of the health benefits program established |
6 | | under this Section shall be deposited into the Local Government |
7 | | Health Insurance Reserve Fund. Any interest earned on moneys in |
8 | | the Local Government Health Insurance Reserve Fund shall be |
9 | | deposited into the Fund. All expenditures from this Fund
shall |
10 | | be used for payments for health care benefits for local |
11 | | government and rehabilitation facility
employees, annuitants, |
12 | | and dependents, and to reimburse the Department or
its |
13 | | administrative service organization for all expenses incurred |
14 | | in the
administration of benefits. No other State funds may be |
15 | | used for these
purposes.
|
16 | | A local government employer's participation or desire to |
17 | | participate
in a program created under this subsection shall |
18 | | not limit that employer's
duty to bargain with the |
19 | | representative of any collective bargaining unit
of its |
20 | | employees.
|
21 | | (j) Any rehabilitation facility within the State of |
22 | | Illinois may apply
to the Director to have its employees, |
23 | | annuitants, and their eligible
dependents provided group |
24 | | health coverage under this Act on a non-insured
basis. To |
25 | | participate, a rehabilitation facility must agree to enroll all
|
26 | | of its employees and remit the entire cost of providing such |
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| | SB2650 | - 28 - | LRB100 17073 RPS 32224 b |
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1 | | coverage for
its employees, except that the rehabilitation |
2 | | facility shall not be
required to enroll those of its employees |
3 | | who are covered spouses or
dependents under this plan or |
4 | | another group policy or plan providing health
benefits as long |
5 | | as (1) an appropriate official from the rehabilitation
facility |
6 | | attests that each employee not enrolled is a covered spouse or
|
7 | | dependent under this plan or another group policy or plan, and |
8 | | (2) at least
50% of the employees are enrolled and the |
9 | | rehabilitation facility remits
the entire cost of providing |
10 | | coverage to those employees. Employees of a
participating |
11 | | rehabilitation facility who are not enrolled due to coverage
|
12 | | under another group health policy or plan may enroll
in the |
13 | | event of a qualifying change in status, special enrollment, |
14 | | special
circumstance as defined by the Director, or during the |
15 | | annual Benefit Choice
Period. A participating rehabilitation |
16 | | facility may also elect
to cover its annuitants. Dependent |
17 | | coverage shall be offered on an optional
basis, with the costs |
18 | | paid by the rehabilitation facility, its employees, or
some |
19 | | combination of the 2 as determined by the rehabilitation |
20 | | facility. The
rehabilitation facility shall be responsible for |
21 | | timely collection and
transmission of dependent premiums.
|
22 | | The Director shall annually determine quarterly rates of |
23 | | payment, 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 |
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| | SB2650 | - 29 - | LRB100 17073 RPS 32224 b |
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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 |
13 | | employees for
group health benefits shall be deposited in the |
14 | | Local Government Health
Insurance Reserve Fund.
|
15 | | (k) Any domestic violence shelter or service within the |
16 | | State of Illinois
may apply to the Director to have its |
17 | | employees, annuitants, and their
dependents provided group |
18 | | health coverage under this Act on a non-insured
basis. To |
19 | | participate, a domestic violence shelter or service must agree |
20 | | to
enroll all of its employees and pay the entire cost of |
21 | | providing such coverage
for its employees. The domestic |
22 | | violence shelter shall not be required to enroll those of its |
23 | | employees who are covered spouses or dependents under this plan |
24 | | or another group policy or plan providing health benefits as |
25 | | long as (1) an appropriate official from the domestic violence |
26 | | shelter attests that each employee not enrolled is a covered |
|
| | SB2650 | - 30 - | LRB100 17073 RPS 32224 b |
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1 | | spouse or dependent under this plan or another group policy or |
2 | | plan and (2) at least 50% of the employees are enrolled and the |
3 | | domestic violence shelter remits the entire cost of providing |
4 | | coverage to those employees. Employees of a participating |
5 | | domestic violence shelter who are not enrolled due to coverage |
6 | | under another group health policy or plan may enroll in the |
7 | | event of a qualifying change in status, special enrollment, or |
8 | | special circumstance as defined by the Director or during the |
9 | | annual Benefit Choice Period. A participating domestic |
10 | | violence shelter may also elect
to cover its annuitants. |
11 | | Dependent coverage shall be offered on an optional
basis, with
|
12 | | employees, or some combination of the 2 as determined by the |
13 | | domestic violence
shelter or service. The domestic violence |
14 | | shelter or service shall be
responsible for timely collection |
15 | | and transmission of dependent premiums.
|
16 | | The Director shall annually determine rates of payment,
|
17 | | 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 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 |
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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 |
8 | | service or its employees
for group health insurance shall be |
9 | | deposited in the Local Government Health
Insurance Reserve |
10 | | Fund.
|
11 | | (l) A public community college or entity organized pursuant |
12 | | to the
Public Community College Act may apply to the Director |
13 | | initially to have
only annuitants not covered prior to July 1, |
14 | | 1992 by the district's health
plan provided health coverage |
15 | | under this Act on a non-insured basis. The
community college |
16 | | must execute a 2-year contract to participate in the
Local |
17 | | Government Health Plan.
Any annuitant may enroll in the event |
18 | | of a qualifying change in status, special
enrollment, special |
19 | | circumstance as defined by the Director, or during the
annual |
20 | | Benefit Choice Period.
|
21 | | The Director shall annually determine monthly rates of |
22 | | payment subject to
the following constraints: for those |
23 | | community colleges with annuitants
only enrolled, first year |
24 | | rates shall be equal to the average cost to cover
claims for a |
25 | | State member adjusted for demographics, Medicare
|
26 | | participation, and other factors; and in the second year, a |
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| | SB2650 | - 32 - | LRB100 17073 RPS 32224 b |
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|
1 | | further adjustment
of rates shall be made to reflect the actual |
2 | | first year's claims experience
of the covered annuitants.
|
3 | | (l-5) The provisions of subsection (l) become inoperative |
4 | | on July 1, 1999.
|
5 | | (m) The Director shall adopt any rules deemed necessary for
|
6 | | implementation of this amendatory Act of 1989 (Public Act |
7 | | 86-978).
|
8 | | (n) Any child advocacy center within the State of Illinois |
9 | | may apply to the Director to have its employees, annuitants, |
10 | | and their dependents provided group health coverage under this |
11 | | Act on a non-insured basis. To participate, a child advocacy |
12 | | center must agree to enroll all of its employees and pay the |
13 | | entire cost of providing coverage for its employees. The child
|
14 | | advocacy center shall not be required to enroll those of its
|
15 | | employees who are covered spouses or dependents under this plan
|
16 | | or another group policy or plan providing health benefits as
|
17 | | long as (1) an appropriate official from the child advocacy
|
18 | | center attests that each employee not enrolled is a covered
|
19 | | spouse or dependent under this plan or another group policy or
|
20 | | plan and (2) at least 50% of the employees are enrolled and the |
21 | | child advocacy center remits the entire cost of providing |
22 | | coverage to those employees. Employees of a participating child |
23 | | advocacy center who are not enrolled due to coverage under |
24 | | another group health policy or plan may enroll in the event of |
25 | | a qualifying change in status, special enrollment, or special |
26 | | circumstance as defined by the Director or during the annual |
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| | SB2650 | - 33 - | LRB100 17073 RPS 32224 b |
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1 | | Benefit Choice Period. A participating child advocacy center |
2 | | may also elect to cover its annuitants. Dependent coverage |
3 | | shall be offered on an optional basis, with the costs paid by |
4 | | the child advocacy center, its employees, or some combination |
5 | | of the 2 as determined by the child advocacy center. The child |
6 | | advocacy center shall be responsible for timely collection and |
7 | | transmission of dependent premiums. |
8 | | The Director shall annually determine rates of payment, |
9 | | subject 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 |
25 | | employees for group health insurance shall be deposited into |
26 | | the Local Government Health Insurance Reserve Fund. |
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| | SB2650 | - 34 - | LRB100 17073 RPS 32224 b |
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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 |
3 | | changing Sections 14-152.1, 20-121, 20-123, 20-124, and 20-125 |
4 | | and 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 |
7 | | increases. |
8 | | (a) As used in this Section, "new benefit increase" means |
9 | | an increase in the amount of any benefit provided under this |
10 | | Article, or an expansion of the conditions of eligibility for |
11 | | any benefit under this Article, that results from an amendment |
12 | | to this Code that takes effect after June 1, 2005 (the |
13 | | effective date of Public Act 94-4). "New benefit increase", |
14 | | however, does not include any benefit increase resulting from |
15 | | the changes made to Article 1 or this Article by Public Act |
16 | | 96-37 , Public Act 100-23, or this amendatory Act of the 100th |
17 | | General Assembly or by this amendatory Act of the 100th General |
18 | | Assembly .
|
19 | | (b) Notwithstanding any other provision of this Code or any |
20 | | subsequent amendment to this Code, every new benefit increase |
21 | | is subject to this Section and shall be deemed to be granted |
22 | | only in conformance with and contingent upon compliance with |
23 | | the provisions of this Section.
|
24 | | (c) The Public Act enacting a new benefit increase must |
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| | SB2650 | - 35 - | LRB100 17073 RPS 32224 b |
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1 | | identify and provide for payment to the System of additional |
2 | | funding at least sufficient to fund the resulting annual |
3 | | increase in cost to the System as it accrues. |
4 | | Every new benefit increase is contingent upon the General |
5 | | Assembly providing the additional funding required under this |
6 | | subsection. The Commission on Government Forecasting and |
7 | | Accountability shall analyze whether adequate additional |
8 | | funding has been provided for the new benefit increase and |
9 | | shall report its analysis to the Public Pension Division of the |
10 | | Department of Insurance. A new benefit increase created by a |
11 | | Public Act that does not include the additional funding |
12 | | required under this subsection is null and void. If the Public |
13 | | Pension Division determines that the additional funding |
14 | | provided for a new benefit increase under this subsection is or |
15 | | has become inadequate, it may so certify to the Governor and |
16 | | the State Comptroller and, in the absence of corrective action |
17 | | by the General Assembly, the new benefit increase shall expire |
18 | | at the end of the fiscal year in which the certification is |
19 | | made.
|
20 | | (d) Every new benefit increase shall expire 5 years after |
21 | | its effective date or on such earlier date as may be specified |
22 | | in the language enacting the new benefit increase or provided |
23 | | under subsection (c). This does not prevent the General |
24 | | Assembly from extending or re-creating a new benefit increase |
25 | | by law. |
26 | | (e) Except as otherwise provided in the language creating |
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| | SB2650 | - 36 - | LRB100 17073 RPS 32224 b |
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1 | | the new benefit increase, a new benefit increase that expires |
2 | | under this Section continues to apply to persons who applied |
3 | | and qualified for the affected benefit while the new benefit |
4 | | increase was in effect and to the affected beneficiaries and |
5 | | alternate payees of such persons, but does not apply to any |
6 | | other person, including without limitation a person who |
7 | | continues in service after the expiration date and did not |
8 | | apply and qualify for the affected benefit while the new |
9 | | benefit 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 |
13 | | employees of the Illinois State Board of Elections. |
14 | | (a) As used in this Section: |
15 | | "Defined benefit plan" means the retirement plan available |
16 | | under this Article to members who have not made the election |
17 | | authorized under this Section. |
18 | | "Eligible employee" means an employee of the Illinois State |
19 | | Board of Elections who is not covered by a collective |
20 | | bargaining agreement. |
21 | | (b) By July 1, 2019, the System shall prepare and implement |
22 | | a defined contribution plan for eligible employees. The defined |
23 | | contribution plan developed under this Section shall be a plan |
24 | | that aggregates State and employee contributions in individual |
25 | | participant accounts which, after meeting any other |
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| | SB2650 | - 37 - | LRB100 17073 RPS 32224 b |
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1 | | requirements, are used for payouts after retirement in |
2 | | accordance 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. |
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| | SB2650 | - 38 - | LRB100 17073 RPS 32224 b |
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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 |
17 | | service as an eligible employee, an eligible employee may |
18 | | elect, in writing, to cease accruing benefits in the defined |
19 | | benefit plan and begin accruing benefits for future service in |
20 | | the defined contribution plan. The election to participate in |
21 | | the defined contribution plan with respect to service as an |
22 | | eligible 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 |
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| | SB2650 | - 39 - | LRB100 17073 RPS 32224 b |
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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 |
25 | | benefit plan before electing to participate in the defined |
26 | | contribution plan may irrevocably elect to terminate all |
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| | SB2650 | - 40 - | LRB100 17073 RPS 32224 b |
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1 | | participation in the defined benefit plan. Upon that election, |
2 | | the System shall transfer to the member's individual account an |
3 | | amount equal to the amount of contribution refund that the |
4 | | member would be eligible to receive if the member terminated |
5 | | employment on that date and elected a refund of contributions, |
6 | | including regular interest for the respective years. The System |
7 | | shall make the transfer as a tax free transfer in accordance |
8 | | with Internal Revenue Service guidelines, for purposes of |
9 | | funding the amount credited to the member's individual account. |
10 | | (e) In no event shall the System, its staff, its authorized |
11 | | representatives, or the Board be liable for any information |
12 | | given to an employee under this Section. The System may |
13 | | coordinate with the Illinois Department of Central Management |
14 | | Services and other retirement systems administering a defined |
15 | | contribution plan in accordance with this amendatory Act of the |
16 | | 100th General Assembly to provide information concerning the |
17 | | impact of the defined contribution plan set forth in this |
18 | | Section. |
19 | | (f) Notwithstanding any other provision of this Section, no |
20 | | person shall begin participating in the defined contribution |
21 | | plan until it has attained qualified plan status and received |
22 | | all necessary approvals from the U.S. Internal Revenue Service. |
23 | | (g) The System shall report on its progress under this |
24 | | Section, including the available details of the defined |
25 | | contribution plan and the System's plans for informing eligible |
26 | | employees about the plan, to the Governor and the General |
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| | SB2650 | - 41 - | LRB100 17073 RPS 32224 b |
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1 | | Assembly on or before January 15, 2019. |
2 | | (h) The Illinois State Board of Investment shall be the |
3 | | plan sponsor for the defined contribution plan established |
4 | | under this Section. |
5 | | (i) The intent of this amendatory Act of the 100th General |
6 | | Assembly is to ensure that the State's normal cost of |
7 | | participation in the defined contribution plan is similar, and |
8 | | if possible equal, to the State's normal cost of participation |
9 | | in the defined benefit plan, unless a lower State's normal cost |
10 | | is 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, |
13 | | which has been held unconstitutional)
|
14 | | Sec. 20-121. Calculation of proportional retirement |
15 | | annuities. |
16 | | (a) Upon
retirement of the employee, a proportional |
17 | | retirement annuity shall be computed
by each participating |
18 | | system in which pension credit has been established on
the |
19 | | basis of pension credits under each system. The computation |
20 | | shall be in
accordance with the formula or method prescribed by |
21 | | each participating system
which is in effect at the date of the |
22 | | employee's latest withdrawal from service
covered by any of the |
23 | | systems in which he has pension credits which he elects
to have |
24 | | considered under this Article. However, the amount of any |
25 | | retirement
annuity payable under the self-managed plan |
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| | SB2650 | - 42 - | LRB100 17073 RPS 32224 b |
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1 | | established under Section 15-158.2
of this Code depends solely |
2 | | on the value of the participant's vested account
balances and |
3 | | is not subject to any proportional adjustment under this
|
4 | | Section.
|
5 | | (a-5) For persons who participate in a defined contribution |
6 | | plan established under Section 14-155.5 of this Code to whom |
7 | | the provisions of this Article apply, the pension credits |
8 | | established under the defined contribution plan may be |
9 | | considered in
determining eligibility for or the amount of the |
10 | | defined benefit retirement annuity that is
payable by any other |
11 | | participating system. |
12 | | (b) Combined pension credit under all retirement systems |
13 | | subject to this
Article shall be considered in determining |
14 | | whether the minimum qualification
has been met and the formula |
15 | | or method of computation which shall be applied , except as may |
16 | | be otherwise provided with respect to vesting in State or |
17 | | employer contributions in a defined contribution plan |
18 | | established under Section 14-155.5 of this Code .
If a system |
19 | | has a step-rate formula for calculation of the retirement |
20 | | annuity,
pension credits covering previous service which have |
21 | | been established under
another system shall be considered in |
22 | | determining which range or ranges of
the step-rate formula are |
23 | | to be applicable to the employee.
|
24 | | (c) Interest on pension credit shall continue to accumulate |
25 | | in accordance with
the provisions of the law governing the |
26 | | retirement system in which the same
has been established during |
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| | SB2650 | - 43 - | LRB100 17073 RPS 32224 b |
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1 | | the time an employee is in the service of another
employer, on |
2 | | the assumption such employee, for interest purposes for pension
|
3 | | credit, is continuing in the service covered by such retirement |
4 | | system.
|
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, |
8 | | which has been held unconstitutional)
|
9 | | Sec. 20-123. Survivor's annuity. The provisions governing |
10 | | a retirement
annuity shall be applicable to a survivor's |
11 | | annuity. Appropriate credits shall
be established for |
12 | | survivor's annuity purposes in those participating systems
|
13 | | which provide survivor's annuities, according to the same |
14 | | conditions and
subject to the same limitations and restrictions |
15 | | herein prescribed for a
retirement annuity. If a participating |
16 | | system has no survivor's annuity
benefit, or if the survivor's |
17 | | annuity benefit under that system is waived,
pension credit |
18 | | established in that system shall not be considered
in |
19 | | determining eligibility for or the amount of the survivor's |
20 | | annuity which
may be payable by any other participating system.
|
21 | | For persons who participate in the self-managed plan |
22 | | established under
Section 15-158.2 or the portable benefit |
23 | | package established under Section
15-136.4, pension credit |
24 | | established under Article 15 may be considered in
determining |
25 | | eligibility for or the amount of the survivor's annuity that is
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| | SB2650 | - 44 - | LRB100 17073 RPS 32224 b |
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1 | | payable by any other participating system, but pension credit |
2 | | established in
any other system shall not result in any right |
3 | | to a survivor's annuity under
the Article 15 system.
|
4 | | For persons who participate in a defined contribution plan |
5 | | established under Section 14-155.5 of this Code to whom the |
6 | | provisions of this Article apply, the pension credits |
7 | | established under the defined contribution plan may be |
8 | | considered in
determining eligibility for or the amount of the |
9 | | defined benefit survivor's annuity that is
payable by any other |
10 | | participating system, but pension credits established in
any |
11 | | other system shall not result in any right to or increase in |
12 | | the value of a survivor's annuity under
the defined |
13 | | contribution plan, which depends solely on the options chosen |
14 | | and the value of the participant's vested account
balances and |
15 | | is not subject to any proportional adjustment under this
|
16 | | Section. |
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, |
20 | | which has been held unconstitutional)
|
21 | | Sec. 20-124. Maximum benefits. |
22 | | (a) In no event shall the combined retirement
or survivors |
23 | | annuities exceed the highest annuity which would have been |
24 | | payable
by any participating system in which the employee has |
25 | | pension credits, if all
of his pension credits had been |
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| | SB2650 | - 45 - | LRB100 17073 RPS 32224 b |
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1 | | validated in that system.
|
2 | | If the combined annuities should exceed the highest maximum |
3 | | as determined
in accordance with this Section, the respective |
4 | | annuities shall be reduced
proportionately according to the |
5 | | ratio which the amount of each proportional
annuity bears to |
6 | | the aggregate of all such annuities.
|
7 | | (b) In the case of a participant in the self-managed plan |
8 | | established under
Section 15-158.2 of this Code to whom the |
9 | | provisions 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 |
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| | SB2650 | - 46 - | LRB100 17073 RPS 32224 b |
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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 |
5 | | plan established under
Section 14-155.5 of this Code to whom |
6 | | the 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, |
23 | | which has been held unconstitutional)
|
24 | | Sec. 20-125. Return to employment - suspension of benefits. |
25 | | If a retired
employee returns to employment which is covered by |
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| | SB2650 | - 47 - | LRB100 17073 RPS 32224 b |
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1 | | a system from which he is
receiving a proportional annuity |
2 | | under this Article, his proportional annuity
from all |
3 | | participating systems shall be suspended during the period of
|
4 | | re-employment, except that this suspension does not apply to |
5 | | any
distributions payable under the self-managed plan |
6 | | established under Section
15-158.2 of this Code or under a |
7 | | defined contribution plan established under Section 14-155.5 |
8 | | of this Code .
|
9 | | The provisions of the Article under which such employment |
10 | | would be
covered shall govern the determination of whether the |
11 | | employee has returned
to employment, and if applicable the |
12 | | exemption of temporary employment or
employment not exceeding a |
13 | | specified duration or frequency, for all
participating systems |
14 | | from which the retired employee is receiving a
proportional |
15 | | annuity under this Article, notwithstanding any contrary
|
16 | | provisions 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 |
19 | | becoming law.
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| | | SB2650 | - 48 - | LRB100 17073 RPS 32224 b |
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 5 ILCS 375/3 | from Ch. 127, par. 523 | | 4 | | 5 ILCS 375/10 | from Ch. 127, par. 530 | | 5 | | 40 ILCS 5/14-152.1 | | | 6 | | 40 ILCS 5/14-155.5 new | | | 7 | | 40 ILCS 5/20-121 | from Ch. 108 1/2, par. 20-121 | | 8 | | 40 ILCS 5/20-123 | from Ch. 108 1/2, par. 20-123 | | 9 | | 40 ILCS 5/20-124 | from Ch. 108 1/2, par. 20-124 | | 10 | | 40 ILCS 5/20-125 | from Ch. 108 1/2, par. 20-125 |
|
|