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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, | ||||||||||||||||||||||||||||||
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 6.5 and 6.6 and adding Section | ||||||||||||||||||||||||||||||
6 | 6.6a as follows:
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7 | (5 ILCS 375/6.5)
| ||||||||||||||||||||||||||||||
8 | (Section scheduled to be repealed on July 1, 2004)
| ||||||||||||||||||||||||||||||
9 | Sec. 6.5. Health benefits for TRS benefit recipients and | ||||||||||||||||||||||||||||||
10 | TRS dependent
beneficiaries.
| ||||||||||||||||||||||||||||||
11 | (a) Purpose. It is the purpose of this amendatory Act of | ||||||||||||||||||||||||||||||
12 | 1995 to transfer
the administration of the program of health | ||||||||||||||||||||||||||||||
13 | benefits established for benefit
recipients and their | ||||||||||||||||||||||||||||||
14 | dependent beneficiaries under Article 16 of the Illinois
| ||||||||||||||||||||||||||||||
15 | Pension Code to the Department of Central Management Services.
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16 | (b) Transition provisions. The Board of Trustees of the | ||||||||||||||||||||||||||||||
17 | Teachers'
Retirement System shall continue to administer the | ||||||||||||||||||||||||||||||
18 | health benefit program
established under Article 16 of the | ||||||||||||||||||||||||||||||
19 | Illinois Pension Code through December 31,
1995. Beginning | ||||||||||||||||||||||||||||||
20 | January 1, 1996, the Department of Central Management Services
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21 | shall be responsible for administering a program of health | ||||||||||||||||||||||||||||||
22 | benefits for TRS
benefit recipients and TRS dependent | ||||||||||||||||||||||||||||||
23 | beneficiaries under this Section.
The Department of Central | ||||||||||||||||||||||||||||||
24 | Management Services and the Teachers' Retirement
System shall | ||||||||||||||||||||||||||||||
25 | cooperate in this endeavor and shall coordinate their | ||||||||||||||||||||||||||||||
26 | activities
so as to ensure a smooth transition and | ||||||||||||||||||||||||||||||
27 | uninterrupted health benefit coverage.
| ||||||||||||||||||||||||||||||
28 | (c) Eligibility. All persons who were enrolled in the | ||||||||||||||||||||||||||||||
29 | Article 16 program at
the time of the transfer shall be | ||||||||||||||||||||||||||||||
30 | eligible to participate in the program
established under this | ||||||||||||||||||||||||||||||
31 | Section without any interruption or delay in coverage
or | ||||||||||||||||||||||||||||||
32 | limitation as to pre-existing medical conditions. Eligibility |
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| |||||||
1 | to
participate shall be determined by the Teachers' Retirement | ||||||
2 | System.
Eligibility information shall be communicated to the | ||||||
3 | Department of Central
Management Services in a format | ||||||
4 | acceptable to the Department.
| ||||||
5 | A TRS dependent beneficiary who is an unmarried child age | ||||||
6 | 19 or over and
mentally or physically handicapped does not | ||||||
7 | become ineligible to participate
by reason of (i) becoming | ||||||
8 | ineligible to be claimed as a dependent for Illinois
or federal | ||||||
9 | income tax purposes or (ii) receiving earned income, so long as
| ||||||
10 | those earnings are insufficient for the child to be fully | ||||||
11 | self-sufficient.
| ||||||
12 | (d) Coverage. The level of health benefits provided under | ||||||
13 | this Section
shall be similar to the level of benefits provided | ||||||
14 | by the
program previously established under Article 16 of the | ||||||
15 | Illinois Pension Code.
| ||||||
16 | Group life insurance benefits are not included in the | ||||||
17 | benefits
to be provided to TRS benefit recipients and TRS | ||||||
18 | dependent beneficiaries under
this Act.
| ||||||
19 | The program of health benefits under this Section may | ||||||
20 | include any or all of
the benefit limitations, including but | ||||||
21 | not limited to a reduction in benefits
based on eligibility for | ||||||
22 | federal medicare benefits, that are provided under
subsection | ||||||
23 | (a) of Section 6 of this Act for other health benefit programs | ||||||
24 | under
this Act.
| ||||||
25 | (e) Insurance rates and premiums. The Director shall | ||||||
26 | determine the
insurance rates and premiums for TRS benefit | ||||||
27 | recipients and TRS dependent
beneficiaries, and shall present | ||||||
28 | to the Teachers' Retirement System of
the State of Illinois, by | ||||||
29 | April 15 of each calendar year, the rate-setting
methodology | ||||||
30 | (including but not limited to utilization levels and costs and
| ||||||
31 | indexing of monthly premiums by category based on the benefit | ||||||
32 | recipient's
annuity and number of years of service ) used to | ||||||
33 | determine the amount of the health care premiums.
| ||||||
34 | For Fiscal Year 1996, the premium shall be equal to the | ||||||
35 | premium actually
charged in Fiscal Year 1995; in subsequent | ||||||
36 | years, the premium shall
never be lower than the premium |
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| |||||||
1 | charged in Fiscal Year 1995. For Fiscal Year
2003, the premium | ||||||
2 | shall not exceed 110% of the premium actually charged in
Fiscal | ||||||
3 | Year 2002. For Fiscal Year 2004, the premium shall not exceed | ||||||
4 | 112% of
the premium actually charged in Fiscal Year 2003.
| ||||||
5 | Rates and premiums may be based in part on age and | ||||||
6 | eligibility for federal
medicare coverage and may be indexed by | ||||||
7 | category based on the amount of the
benefit recipient's annuity | ||||||
8 | and number of years of service . However, the cost of | ||||||
9 | participation for a TRS
dependent beneficiary who is an | ||||||
10 | unmarried child age 19 or over and mentally or
physically | ||||||
11 | handicapped shall not exceed the cost for a TRS dependent
| ||||||
12 | beneficiary who is an unmarried child under age 19 and | ||||||
13 | participates in the same
major medical or managed care program.
| ||||||
14 | The cost of health benefits under the program shall be paid | ||||||
15 | as follows:
| ||||||
16 | (1) For a TRS benefit recipient selecting a managed | ||||||
17 | care program, up to
75% of the total insurance rate shall | ||||||
18 | be paid from the Teacher Health Insurance
Security Fund.
| ||||||
19 | (2) For a TRS benefit recipient selecting the major | ||||||
20 | medical coverage
program, up to 50% of the total insurance | ||||||
21 | rate shall be paid from the Teacher
Health Insurance | ||||||
22 | Security Fund if a managed care program is accessible, as
| ||||||
23 | determined by the Teachers' Retirement System.
| ||||||
24 | (3) For a TRS benefit recipient selecting the major | ||||||
25 | medical coverage
program, up to 75% of the total insurance | ||||||
26 | rate shall be paid from the Teacher
Health Insurance | ||||||
27 | Security Fund if a managed care program is not accessible, | ||||||
28 | as
determined by the Teachers' Retirement System.
| ||||||
29 | (4) The balance of the rate of insurance, including the | ||||||
30 | entire premium of
any coverage for TRS dependent | ||||||
31 | beneficiaries that has been elected, shall be
paid
by | ||||||
32 | deductions authorized by the TRS benefit recipient to be | ||||||
33 | withheld from his
or her monthly annuity or benefit payment | ||||||
34 | from the Teachers' Retirement System;
except that (i) if | ||||||
35 | the balance of the cost of coverage exceeds the amount of
| ||||||
36 | the monthly annuity or benefit payment, the difference |
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| |||||||
1 | shall be paid directly
to the Teachers' Retirement System | ||||||
2 | by the TRS benefit recipient, and (ii) all
or part of the | ||||||
3 | balance of the cost of coverage may, at the school board's
| ||||||
4 | option, be paid to the Teachers' Retirement System by the | ||||||
5 | school board of the
school district from which the TRS | ||||||
6 | benefit recipient retired, in accordance
with Section | ||||||
7 | 10-22.3b of the School Code. The Teachers' Retirement | ||||||
8 | System
shall promptly deposit all moneys withheld by or | ||||||
9 | paid to it under this
subdivision (e)(4) into the Teacher | ||||||
10 | Health Insurance Security Fund. These
moneys shall not be | ||||||
11 | considered assets of the Retirement System.
| ||||||
12 | (f) Financing. Beginning July 1, 1995, all revenues arising | ||||||
13 | from the
administration of the health benefit programs | ||||||
14 | established under Article 16 of
the Illinois Pension Code or | ||||||
15 | this Section shall be deposited into the
Teacher Health | ||||||
16 | Insurance Security Fund, which is hereby created as a
| ||||||
17 | nonappropriated trust fund to be held outside the State | ||||||
18 | Treasury, with the
State Treasurer as custodian. Any interest | ||||||
19 | earned on moneys in the Teacher
Health Insurance Security Fund | ||||||
20 | shall be deposited into the Fund.
| ||||||
21 | Moneys in the Teacher Health Insurance Security
Fund shall | ||||||
22 | be used only to pay the costs of the health benefit program
| ||||||
23 | established under this Section, including associated | ||||||
24 | administrative costs and the cost of Medicare Part A premiums | ||||||
25 | for eligible benefit recipients , and
the costs associated with | ||||||
26 | the health benefit program established under Article
16 of the | ||||||
27 | Illinois Pension Code, as authorized in this Section. Beginning
| ||||||
28 | July 1, 1995, the Department of Central Management Services may | ||||||
29 | make
expenditures from the Teacher Health Insurance Security | ||||||
30 | Fund for those costs.
| ||||||
31 | After other funds authorized for the payment of the costs | ||||||
32 | of the health
benefit program established under Article 16 of | ||||||
33 | the Illinois Pension Code are
exhausted and until January 1, | ||||||
34 | 1996 (or such later date as may be agreed upon
by the Director | ||||||
35 | of Central Management Services and the Secretary of the
| ||||||
36 | Teachers' Retirement System), the Secretary of the Teachers' |
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| |||||||
1 | Retirement System
may make expenditures from the Teacher Health | ||||||
2 | Insurance Security Fund as
necessary to pay up to 75% of the | ||||||
3 | cost of providing health coverage to eligible
benefit | ||||||
4 | recipients (as defined in Sections 16-153.1 and 16-153.3 of the
| ||||||
5 | Illinois Pension Code) who are enrolled in the Article 16 | ||||||
6 | health benefit
program and to facilitate the transfer of | ||||||
7 | administration of the health benefit
program to the Department | ||||||
8 | of Central Management Services.
| ||||||
9 | (g) Contract for benefits. The Director shall by contract, | ||||||
10 | self-insurance,
or otherwise make available the program of | ||||||
11 | health benefits for TRS benefit
recipients
and their TRS | ||||||
12 | dependent beneficiaries that is provided for in this
Section. | ||||||
13 | The contract or other arrangement for the provision of these | ||||||
14 | health
benefits shall be on terms deemed by the Director to be | ||||||
15 | in the best interest of
the State of Illinois and the TRS | ||||||
16 | benefit recipients based on, but not limited
to, such criteria | ||||||
17 | as administrative cost, service capabilities of the carrier
or | ||||||
18 | other contractor, and the costs of the benefits.
The contract | ||||||
19 | shall require that each benefit recipient who is eligible must | ||||||
20 | enroll in Medicare Part A and that each benefit recipient who | ||||||
21 | enrolls in Medicare Part A shall be reimbursed for the cost of | ||||||
22 | the premiums from the Teacher Health Insurance Security Fund.
| ||||||
23 | (h) Continuation and termination of program. It is the | ||||||
24 | intention of
the General Assembly that the program of health | ||||||
25 | benefits provided under this
Section be maintained on an | ||||||
26 | ongoing, affordable basis through June 30,
2004 . The program of | ||||||
27 | health benefits provided under this Section is
terminated on | ||||||
28 | July 1, 2004.
| ||||||
29 | The program of health benefits provided under this Section | ||||||
30 | may be amended by
the State and is not intended to be a pension | ||||||
31 | or retirement benefit subject to
protection under Article XIII, | ||||||
32 | Section 5 of the Illinois Constitution.
| ||||||
33 | (i) (Blank).
Repeal. This Section is repealed on July 1, | ||||||
34 | 2004.
| ||||||
35 | (Source: P.A. 92-505, eff. 12-20-01; 92-862, eff. 1-3-03; | ||||||
36 | revised 1-10-03.)
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| |||||||
1 | (5 ILCS 375/6.6)
| ||||||
2 | (Section scheduled to be repealed on July 1, 2004)
| ||||||
3 | Sec. 6.6. Contributions to the Teacher Health Insurance | ||||||
4 | Security Fund.
| ||||||
5 | (a) Beginning July 1, 1995, all active contributors of the | ||||||
6 | Teachers'
Retirement System (established under Article 16 of | ||||||
7 | the Illinois Pension Code)
who are not employees of a | ||||||
8 | department as defined in Section 3 of this Act
shall make | ||||||
9 | contributions toward the cost of annuitant and survivor health
| ||||||
10 | benefits. These contributions shall be at the following rates:
| ||||||
11 | until January 1, 2002, 0.5% of salary;
beginning January 1, | ||||||
12 | 2002, 0.65% of salary;
beginning July 1, 2003, 0.75% of salary.
| ||||||
13 | These contributions shall be deducted by the employer and | ||||||
14 | paid to the System
as service agent for the Department of | ||||||
15 | Central Management Services. The System
may use the same | ||||||
16 | processes for collecting the contributions required by this
| ||||||
17 | subsection that it uses to collect contributions received from | ||||||
18 | school districts
and other covered employers under Sections | ||||||
19 | 16-154 and 16-155 of the Illinois
Pension Code.
| ||||||
20 | An employer may agree to pick up or pay the contributions | ||||||
21 | required under
this subsection on behalf of the teacher; such | ||||||
22 | contributions shall be deemed
to have to have been paid by the | ||||||
23 | teacher. Beginning January 1, 2002, if
the employer does not | ||||||
24 | directly pay the required member contribution, then the
| ||||||
25 | employer shall reduce the member's salary by an amount equal to | ||||||
26 | the required
contribution and shall then pay the contribution | ||||||
27 | on behalf of the member.
This reduction shall not change the | ||||||
28 | amounts reported as creditable earnings
to the Teachers' | ||||||
29 | Retirement System.
| ||||||
30 | A person who purchases optional service credit under | ||||||
31 | Article 16 of the
Illinois Pension Code for a period after June | ||||||
32 | 30, 1995 must also make a
contribution under this subsection | ||||||
33 | for that optional credit, at the rate
provided in subsection | ||||||
34 | (a), based on the salary used in
computing the optional service | ||||||
35 | credit, plus interest on this employee
contribution. This |
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| |||||||
1 | contribution shall be collected by the System as service
agent | ||||||
2 | for the Department of Central Management Services. The | ||||||
3 | contribution
required under this subsection for the optional | ||||||
4 | service credit must be paid
in full before any annuity based on | ||||||
5 | that credit begins.
| ||||||
6 | (a-3) Beginning July 1, 2004, in addition to the payments | ||||||
7 | required under subsection (a), each active contributor of the | ||||||
8 | Teachers' Retirement System who is not an employee as defined | ||||||
9 | in Section 3 and who is not making contributions for Medicare | ||||||
10 | must pay an amount equal to 1.45% of his or her salary into the | ||||||
11 | Teacher Health Insurance Security Fund.
| ||||||
12 | (a-5) Beginning January 1, 2002, every employer of a | ||||||
13 | teacher (other than
an employer that is a department as defined | ||||||
14 | in Section 3 of this Act) shall
pay an employer contribution | ||||||
15 | toward the cost of annuitant and survivor health
benefits. | ||||||
16 | These contributions shall be computed as follows:
| ||||||
17 | (1) Beginning January 1, 2002 through June 30, 2003, | ||||||
18 | the employer
contribution shall be equal to 0.4% of each | ||||||
19 | teacher's salary.
| ||||||
20 | (2) Beginning July 1, 2003, the employer contribution | ||||||
21 | shall be equal to
0.5% of each teacher's salary.
| ||||||
22 | These contributions shall be paid by the employer to the | ||||||
23 | System as service
agent for the Department of Central | ||||||
24 | Management Services. The System may use
the same processes for | ||||||
25 | collecting the contributions required by this subsection
that | ||||||
26 | it uses to collect contributions received from school districts | ||||||
27 | and other
covered employers under the Illinois Pension Code.
| ||||||
28 | The school district or other employing unit may pay these | ||||||
29 | employer
contributions out of any source of funding available | ||||||
30 | for that purpose and
shall forward the contributions to the | ||||||
31 | System on the schedule established
for the payment of member | ||||||
32 | contributions.
| ||||||
33 | (a-7) Beginning July 1, 2004, in addition to the payments | ||||||
34 | required under subsection (a-5), each employer of a person who | ||||||
35 | is an active contributor of the Teachers' Retirement System, | ||||||
36 | who is not an employee as defined in Section 3, and who is not |
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| |||||||
1 | making contributions for Medicare must pay an amount equal to | ||||||
2 | 1.45% of that person's salary into the Teacher Health Insurance | ||||||
3 | Security Fund.
| ||||||
4 | (a-10) Beginning July 1, 2004, a person who retires under | ||||||
5 | Article 16 of
the Illinois Pension Code before attaining age 60 | ||||||
6 | shall make monthly payments toward the cost of annuitant and | ||||||
7 | survivor health benefits. The amount of the payments shall be | ||||||
8 | equal to 0.5% of his or her average monthly salary during his | ||||||
9 | or her
final year of employment. Upon attaining age 60, a | ||||||
10 | person shall no longer be required to make payments under this | ||||||
11 | subsection (a-10).
| ||||||
12 | (b) The Teachers' Retirement System shall promptly deposit | ||||||
13 | all moneys
collected under subsections (a) , (a-3),
and (a-5) , | ||||||
14 | (a-7), and (a-10) of this
Section into the Teacher Health | ||||||
15 | Insurance Security Fund created in Section 6.5
of this Act. The | ||||||
16 | moneys collected under this Section shall be used only for
the | ||||||
17 | purposes authorized in Section 6.5 of this Act and shall not be | ||||||
18 | considered
to be assets of the Teachers' Retirement System. | ||||||
19 | Contributions made under this
Section are not transferable to | ||||||
20 | other pension funds or retirement systems and
are not | ||||||
21 | refundable upon termination of service.
| ||||||
22 | (c) On or before November 15 of each year, the Board of | ||||||
23 | Trustees of the
Teachers' Retirement System shall certify to | ||||||
24 | the Governor, the Director of
Central Management Services, and | ||||||
25 | the State Comptroller its estimate of the
total amount of | ||||||
26 | contributions to be paid under subsection (a) of this Section
| ||||||
27 | 6.6 for the next fiscal year. The amount certified shall be | ||||||
28 | decreased or
increased each year by the amount that the actual | ||||||
29 | active teacher contributions
either fell short of or exceeded | ||||||
30 | the estimate used by the Board in making the
certification for | ||||||
31 | the previous fiscal year. The certification shall include
a | ||||||
32 | detailed explanation of the methods and information that the | ||||||
33 | Board relied
upon in preparing its estimate. As soon as | ||||||
34 | possible after the effective date
of this amendatory Act of the | ||||||
35 | 92nd General Assembly, the Board
shall recalculate and | ||||||
36 | recertify its certifications for fiscal years 2002 and
2003.
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1 | (d) Beginning in fiscal year 1996, on the first day of each | ||||||
2 | month, or
as soon thereafter as may be practical, the State | ||||||
3 | Treasurer and the State
Comptroller shall transfer from the | ||||||
4 | General Revenue Fund to the Teacher Health
Insurance Security | ||||||
5 | Fund 1/12 of the annual amount appropriated for that fiscal
| ||||||
6 | year to the State Comptroller for deposit into the Teacher | ||||||
7 | Health Insurance
Security Fund under Section 1.3 of the State | ||||||
8 | Pension Funds Continuing
Appropriation Act.
| ||||||
9 | (e) Except where otherwise specified in this Section, the | ||||||
10 | definitions
that apply to Article 16 of the Illinois Pension | ||||||
11 | Code apply to this Section.
| ||||||
12 | (f) This Section is repealed on July 1, 2004.
| ||||||
13 | (Source: P.A. 92-505, eff. 12-20-01.)
| ||||||
14 | (5 ILCS 375/6.6a new)
| ||||||
15 | Sec. 6.6a. Annual report. On or before September 1, 2004, | ||||||
16 | and annually thereafter, the Department of Central Management | ||||||
17 | Services shall file a report with the Economic and Fiscal | ||||||
18 | Commission stating the assets and liabilities of the program of | ||||||
19 | retired teachers' health insurance benefits provided under | ||||||
20 | Sections 6.5 and 6.6. As a part of the annual report required | ||||||
21 | under this Section, the Department of Central Management | ||||||
22 | Services shall include its recommendation of whether the | ||||||
23 | program should be continued beyond the end of the fiscal year | ||||||
24 | in which the report is delivered.
| ||||||
25 | Section 90. The State Mandates Act is amended by adding | ||||||
26 | Section 8.28 as
follows:
| ||||||
27 | (30 ILCS 805/8.28 new)
| ||||||
28 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
29 | of this
Act, no reimbursement by the State is required for the | ||||||
30 | implementation of
any mandate created by this amendatory Act of | ||||||
31 | the 93rd General Assembly.
| ||||||
32 | Section 99. Effective date. This Act takes effect upon |
| |||||||
| |||||||
1 | becoming law.
|