Sen. Denny Jacobs
Filed: 5/19/2004
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1 | AMENDMENT TO SENATE BILL 3002
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2 | AMENDMENT NO. ______. Amend Senate Bill 3002 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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 as follows:
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6 | (5 ILCS 375/6.5)
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7 | (Section scheduled to be repealed on July 1, 2004)
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8 | Sec. 6.5. Health benefits for TRS benefit recipients and | ||||||
9 | TRS dependent
beneficiaries.
| ||||||
10 | (a) Purpose. It is the purpose of this amendatory Act of | ||||||
11 | 1995 to transfer
the administration of the program of health | ||||||
12 | benefits established for benefit
recipients and their | ||||||
13 | dependent beneficiaries under Article 16 of the Illinois
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14 | Pension Code to the Department of Central Management Services.
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15 | (b) Transition provisions. The Board of Trustees of the | ||||||
16 | Teachers'
Retirement System shall continue to administer the | ||||||
17 | health benefit program
established under Article 16 of the | ||||||
18 | Illinois Pension Code through December 31,
1995. Beginning | ||||||
19 | January 1, 1996, the Department of Central Management Services
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20 | shall be responsible for administering a program of health | ||||||
21 | benefits for TRS
benefit recipients and TRS dependent | ||||||
22 | beneficiaries under this Section.
The Department of Central | ||||||
23 | Management Services and the Teachers' Retirement
System shall | ||||||
24 | cooperate in this endeavor and shall coordinate their |
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1 | activities
so as to ensure a smooth transition and | ||||||
2 | uninterrupted health benefit coverage.
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3 | (c) Eligibility. All persons who were enrolled in the | ||||||
4 | Article 16 program at
the time of the transfer shall be | ||||||
5 | eligible to participate in the program
established under this | ||||||
6 | Section without any interruption or delay in coverage
or | ||||||
7 | limitation as to pre-existing medical conditions. Eligibility | ||||||
8 | to
participate shall be determined by the Teachers' Retirement | ||||||
9 | System.
Eligibility information shall be communicated to the | ||||||
10 | Department of Central
Management Services in a format | ||||||
11 | acceptable to the Department.
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12 | A TRS dependent beneficiary who is an unmarried child age | ||||||
13 | 19 or over and
mentally or physically disabled
handicapped does | ||||||
14 | not become ineligible to participate
by reason of (i) becoming | ||||||
15 | ineligible to be claimed as a dependent for Illinois
or federal | ||||||
16 | income tax purposes or (ii) receiving earned income, so long as
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17 | those earnings are insufficient for the child to be fully | ||||||
18 | self-sufficient.
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19 | (d) Coverage. The level of health benefits provided under | ||||||
20 | this Section
shall be similar to the level of benefits provided | ||||||
21 | by the
program previously established under Article 16 of the | ||||||
22 | Illinois Pension Code.
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23 | Group life insurance benefits are not included in the | ||||||
24 | benefits
to be provided to TRS benefit recipients and TRS | ||||||
25 | dependent beneficiaries under
this Act.
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26 | The program of health benefits under this Section may | ||||||
27 | include any or all of
the benefit limitations, including but | ||||||
28 | not limited to a reduction in benefits
based on eligibility for | ||||||
29 | federal medicare benefits, that are provided under
subsection | ||||||
30 | (a) of Section 6 of this Act for other health benefit programs | ||||||
31 | under
this Act.
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32 | (e) Insurance rates and premiums. The Director shall | ||||||
33 | determine the
insurance rates and premiums for TRS benefit | ||||||
34 | recipients and TRS dependent
beneficiaries,
and shall present |
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1 | to the Teachers' Retirement System of
the State of Illinois, by | ||||||
2 | April 15 of each calendar year, the rate-setting
methodology | ||||||
3 | (including but not limited to utilization levels and costs) | ||||||
4 | used
to determine the amount of the health care premiums.
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5 | For Fiscal Year 1996, the premium shall be equal to the | ||||||
6 | premium actually
charged in Fiscal Year 1995; in subsequent | ||||||
7 | years, the premium shall
never be lower than the premium | ||||||
8 | charged in Fiscal Year 1995. | ||||||
9 | For Fiscal Year
2003, the premium shall not exceed 110% | ||||||
10 | of the premium actually charged in
Fiscal Year 2002. | ||||||
11 | For Fiscal Year 2004, the premium shall not exceed 112% | ||||||
12 | of
the premium actually charged in Fiscal Year 2003.
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13 | For Fiscal Year 2005, the premium shall not exceed a | ||||||
14 | weighted average of 106.6% of
the premium actually charged | ||||||
15 | in Fiscal Year 2004.
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16 | For Fiscal Year 2006, the premium shall not exceed a | ||||||
17 | weighted average of 109.1% of
the premium actually charged | ||||||
18 | in Fiscal Year 2005.
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19 | For Fiscal Year 2007, the premium shall not exceed a | ||||||
20 | weighted average of 103.9% of
the premium actually charged | ||||||
21 | in Fiscal Year 2006.
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22 | For Fiscal Year 2008 and thereafter, the premium in | ||||||
23 | each fiscal year shall not exceed 105% of
the premium | ||||||
24 | actually charged in the previous fiscal year.
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25 | Rates and premiums may be based in part on age and | ||||||
26 | eligibility for federal
medicare coverage. However, the cost of | ||||||
27 | participation for a TRS dependent
beneficiary who is an | ||||||
28 | unmarried child age 19 or over and mentally or physically
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29 | disabled
handicapped shall not exceed the cost for a TRS | ||||||
30 | dependent beneficiary who is
an unmarried child under age 19 | ||||||
31 | and participates in the same major medical or
managed care | ||||||
32 | program.
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33 | The cost of health benefits under the program shall be paid | ||||||
34 | as follows:
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1 | (1) For a TRS benefit recipient selecting a managed | ||||||
2 | care program, up to
75% of the total insurance rate shall | ||||||
3 | be paid from the Teacher Health Insurance
Security Fund. | ||||||
4 | Effective with Fiscal Year 2007 and thereafter, for a TRS | ||||||
5 | benefit recipient selecting a managed care program, 75% of | ||||||
6 | the total insurance rate shall be paid from the Teacher | ||||||
7 | Health Insurance
Security Fund.
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8 | (2) For a TRS benefit recipient selecting the major | ||||||
9 | medical coverage
program, up to 50% of the total insurance | ||||||
10 | rate shall be paid from the Teacher
Health Insurance | ||||||
11 | Security Fund if a managed care program is accessible, as
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12 | determined by the Teachers' Retirement System. Effective | ||||||
13 | with Fiscal Year 2007 and thereafter, for a TRS benefit | ||||||
14 | recipient selecting the major medical coverage
program, | ||||||
15 | 50% of the total insurance rate shall be paid from the | ||||||
16 | Teacher
Health Insurance Security Fund if a managed care | ||||||
17 | program is accessible, as
determined by the Department of | ||||||
18 | Central Management Services.
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19 | (3) For a TRS benefit recipient selecting the major | ||||||
20 | medical coverage
program, up to 75% of the total insurance | ||||||
21 | rate shall be paid from the Teacher
Health Insurance | ||||||
22 | Security Fund if a managed care program is not accessible, | ||||||
23 | as
determined by the Teachers' Retirement System. | ||||||
24 | Effective with Fiscal Year 2007 and thereafter, for a TRS | ||||||
25 | benefit recipient selecting the major medical coverage
| ||||||
26 | program, 75% of the total insurance rate shall be paid from | ||||||
27 | the Teacher
Health Insurance Security Fund if a managed | ||||||
28 | care program is not accessible, as
determined by the | ||||||
29 | Department of Central Management Services.
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30 | (3.1) For a TRS dependent beneficiary who is Medicare | ||||||
31 | primary and enrolled in a managed care plan, or the major | ||||||
32 | medical coverage program if a managed care plan is not | ||||||
33 | available, 25% of the total insurance rate shall be paid | ||||||
34 | from the Teacher Health Security Fund as determined by the |
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1 | Department of Central Management Services. For the purpose | ||||||
2 | of this item (3.1), the term "TRS dependent beneficiary who | ||||||
3 | is Medicare primary" means a TRS dependent beneficiary who | ||||||
4 | is retired or does not have current employment status and | ||||||
5 | is participating in Medicare Parts A and B.
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6 | (4) Except as otherwise provided in item (3.1), the
The
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7 | balance of the rate of insurance, including the entire | ||||||
8 | premium of
any coverage for TRS dependent beneficiaries | ||||||
9 | that has been elected, shall be
paid
by deductions | ||||||
10 | authorized by the TRS benefit recipient to be withheld from | ||||||
11 | his
or her monthly annuity or benefit payment from the | ||||||
12 | Teachers' Retirement System;
except that (i) if the balance | ||||||
13 | of the cost of coverage exceeds the amount of
the monthly | ||||||
14 | annuity or benefit payment, the difference shall be paid | ||||||
15 | directly
to the Teachers' Retirement System by the TRS | ||||||
16 | benefit recipient, and (ii) all
or part of the balance of | ||||||
17 | the cost of coverage may, at the school board's
option, be | ||||||
18 | paid to the Teachers' Retirement System by the school board | ||||||
19 | of the
school district from which the TRS benefit recipient | ||||||
20 | retired, in accordance
with Section 10-22.3b of the School | ||||||
21 | Code. The Teachers' Retirement System
shall promptly | ||||||
22 | deposit all moneys withheld by or paid to it under this
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23 | subdivision (e)(4) into the Teacher Health Insurance | ||||||
24 | Security Fund. These
moneys shall not be considered assets | ||||||
25 | of the Retirement System.
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26 | (f) Financing. Beginning July 1, 1995, all revenues arising | ||||||
27 | from the
administration of the health benefit programs | ||||||
28 | established under Article 16 of
the Illinois Pension Code or | ||||||
29 | this Section shall be deposited into the
Teacher Health | ||||||
30 | Insurance Security Fund, which is hereby created as a
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31 | nonappropriated trust fund to be held outside the State | ||||||
32 | Treasury, with the
State Treasurer as custodian. Any interest | ||||||
33 | earned on moneys in the Teacher
Health Insurance Security Fund | ||||||
34 | shall be deposited into the Fund.
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1 | Moneys in the Teacher Health Insurance Security
Fund shall | ||||||
2 | be used only to pay the costs of the health benefit program
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3 | established under this Section, including associated | ||||||
4 | administrative costs, and
the costs associated with the health | ||||||
5 | benefit program established under Article
16 of the Illinois | ||||||
6 | Pension Code, as authorized in this Section. Beginning
July 1, | ||||||
7 | 1995, the Department of Central Management Services may make
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8 | expenditures from the Teacher Health Insurance Security Fund | ||||||
9 | for those costs.
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10 | After other funds authorized for the payment of the costs | ||||||
11 | of the health
benefit program established under Article 16 of | ||||||
12 | the Illinois Pension Code are
exhausted and until January 1, | ||||||
13 | 1996 (or such later date as may be agreed upon
by the Director | ||||||
14 | of Central Management Services and the Secretary of the
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15 | Teachers' Retirement System), the Secretary of the Teachers' | ||||||
16 | Retirement System
may make expenditures from the Teacher Health | ||||||
17 | Insurance Security Fund as
necessary to pay up to 75% of the | ||||||
18 | cost of providing health coverage to eligible
benefit | ||||||
19 | recipients (as defined in Sections 16-153.1 and 16-153.3 of the
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20 | Illinois Pension Code) who are enrolled in the Article 16 | ||||||
21 | health benefit
program and to facilitate the transfer of | ||||||
22 | administration of the health benefit
program to the Department | ||||||
23 | of Central Management Services.
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24 | (g) Contract for benefits. The Director shall by contract, | ||||||
25 | self-insurance,
or otherwise make available the program of | ||||||
26 | health benefits for TRS benefit
recipients and their TRS | ||||||
27 | dependent beneficiaries that is provided for in this
Section. | ||||||
28 | The contract or other arrangement for the provision of these | ||||||
29 | health
benefits shall be on terms deemed by the Director to be | ||||||
30 | in the best interest of
the State of Illinois and the TRS | ||||||
31 | benefit recipients based on, but not limited
to, such criteria | ||||||
32 | as administrative cost, service capabilities of the carrier
or | ||||||
33 | other contractor, and the costs of the benefits.
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34 | (g-5) Committee. A Teacher Retirement Insurance Program |
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1 | Committee shall be established, to consist of 10 persons | ||||||
2 | appointed by the Governor.
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3 | The Committee shall convene at least 4 times each year, and | ||||||
4 | shall consider and make recommendations on issues affecting the | ||||||
5 | program of health benefits provided under this
Section. | ||||||
6 | Recommendations of the Committee shall be based on a consensus | ||||||
7 | of the members of the Committee.
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8 | If the Teacher
Health Insurance Security Fund experiences a | ||||||
9 | deficit balance based upon the contribution and subsidy rates | ||||||
10 | established in this Section and Section 6.6 for Fiscal Year | ||||||
11 | 2008 or thereafter, the Committee shall make recommendations | ||||||
12 | for adjustments to the funding sources established under these | ||||||
13 | Sections. | ||||||
14 | (h) Continuation and termination of program. It is the | ||||||
15 | intention of
the General Assembly that the program of health | ||||||
16 | benefits provided under this
Section be maintained on an | ||||||
17 | ongoing, affordable basis .
through June 30, 2004.
The program | ||||||
18 | of health benefits provided under this Section is terminated on
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19 | July 1, 2004.
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20 | The program of health benefits provided under this Section | ||||||
21 | may be amended by
the State and is not intended to be a pension | ||||||
22 | or retirement benefit subject to
protection under Article XIII, | ||||||
23 | Section 5 of the Illinois Constitution.
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24 | (i) Repeal. (Blank).
This Section is repealed on July 1, | ||||||
25 | 2004.
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26 | (Source: P.A. 92-505, eff. 12-20-01; 92-862, eff. 1-3-03; | ||||||
27 | revised 1-10-03.)
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28 | (5 ILCS 375/6.6)
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29 | (Section scheduled to be repealed on July 1, 2004)
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30 | Sec. 6.6. Contributions to the Teacher Health Insurance | ||||||
31 | Security Fund.
| ||||||
32 | (a) Beginning July 1, 1995, all active contributors of the | ||||||
33 | Teachers'
Retirement System (established under Article 16 of |
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1 | the Illinois Pension Code)
who are not employees of a | ||||||
2 | department as defined in Section 3 of this Act
shall make | ||||||
3 | contributions toward the cost of annuitant and survivor health
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4 | benefits. These contributions shall be at the following rates:
| ||||||
5 | until January 1, 2002, 0.5% of salary;
beginning January 1, | ||||||
6 | 2002, 0.65% of salary;
beginning July 1, 2003, 0.75% of salary ; | ||||||
7 | beginning July 1, 2005, 0.80% of salary;
beginning July 1, | ||||||
8 | 2007, a percentage of salary to be determined by the Department | ||||||
9 | of Central Management Services by rule, which in each fiscal | ||||||
10 | year shall not exceed 105% of the percentage of salary actually | ||||||
11 | required to be paid in the previous fiscal year .
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12 | These contributions shall be deducted by the employer and | ||||||
13 | paid to the System
as service agent for the Department of | ||||||
14 | Central Management Services. The System
may use the same | ||||||
15 | processes for collecting the contributions required by this
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16 | subsection that it uses to collect contributions received from | ||||||
17 | school districts
and other covered employers under Sections | ||||||
18 | 16-154 and 16-155 of the Illinois
Pension Code.
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19 | An employer may agree to pick up or pay the contributions | ||||||
20 | required under
this subsection on behalf of the teacher; such | ||||||
21 | contributions shall be deemed
to have to have been paid by the | ||||||
22 | teacher. Beginning January 1, 2002, if
the employer does not | ||||||
23 | directly pay the required member contribution, then the
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24 | employer shall reduce the member's salary by an amount equal to | ||||||
25 | the required
contribution and shall then pay the contribution | ||||||
26 | on behalf of the member.
This reduction shall not change the | ||||||
27 | amounts reported as creditable earnings
to the Teachers' | ||||||
28 | Retirement System.
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29 | A person who purchases optional service credit under | ||||||
30 | Article 16 of the
Illinois Pension Code for a period after June | ||||||
31 | 30, 1995 must also make a
contribution under this subsection | ||||||
32 | for that optional credit, at the rate
provided in subsection | ||||||
33 | (a), based on the salary used in
computing the optional service | ||||||
34 | 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.
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6 | (a-5) Beginning January 1, 2002, every employer of a | ||||||
7 | teacher (other than
an employer that is a department as defined | ||||||
8 | in Section 3 of this Act) shall
pay an employer contribution | ||||||
9 | toward the cost of annuitant and survivor health
benefits. | ||||||
10 | These contributions shall be computed as follows:
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11 | (1) Beginning January 1, 2002 through June 30, 2003, | ||||||
12 | the employer
contribution shall be equal to 0.4% of each | ||||||
13 | teacher's salary.
| ||||||
14 | (2) Beginning July 1, 2003, the employer contribution | ||||||
15 | shall be equal to
0.5% of each teacher's salary.
| ||||||
16 | (3) Beginning July 1, 2005, the employer contribution | ||||||
17 | shall be equal to
0.6% of each teacher's salary.
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18 | (4) Beginning July 1, 2007, the employer contribution | ||||||
19 | shall be a percentage of each teacher's salary to be | ||||||
20 | determined by the Department of Central Management | ||||||
21 | Services by rule, which in each fiscal year shall not | ||||||
22 | exceed 105% of the percentage of each teacher's salary | ||||||
23 | actually required to be paid in the previous fiscal year.
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24 | These contributions shall be paid by the employer to the | ||||||
25 | System as service
agent for the Department of Central | ||||||
26 | Management Services. The System may use
the same processes for | ||||||
27 | collecting the contributions required by this subsection
that | ||||||
28 | it uses to collect contributions received from school districts | ||||||
29 | and other
covered employers under the Illinois Pension Code.
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30 | The school district or other employing unit may pay these | ||||||
31 | employer
contributions out of any source of funding available | ||||||
32 | for that purpose and
shall forward the contributions to the | ||||||
33 | System on the schedule established
for the payment of member | ||||||
34 | contributions.
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1 | (b) The Teachers' Retirement System shall promptly deposit | ||||||
2 | all moneys
collected under subsections (a) and (a-5) of this
| ||||||
3 | Section into the Teacher Health Insurance Security Fund created | ||||||
4 | in Section 6.5
of this Act. The moneys collected under this | ||||||
5 | Section shall be used only for
the purposes authorized in | ||||||
6 | Section 6.5 of this Act and shall not be considered
to be | ||||||
7 | assets of the Teachers' Retirement System. Contributions made | ||||||
8 | under this
Section are not transferable to other pension funds | ||||||
9 | or retirement systems and
are not refundable upon termination | ||||||
10 | of service.
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11 | (c) On or before November 15 of each year, the Board of | ||||||
12 | Trustees of the
Teachers' Retirement System shall certify to | ||||||
13 | the Governor, the Director of
Central Management Services, and | ||||||
14 | the State Comptroller its estimate of the
total amount of | ||||||
15 | contributions to be paid under subsection (a) of this Section
| ||||||
16 | 6.6 for the next fiscal year. The amount certified shall be | ||||||
17 | decreased or
increased each year by the amount that the actual | ||||||
18 | active teacher contributions
either fell short of or exceeded | ||||||
19 | the estimate used by the Board in making the
certification for | ||||||
20 | the previous fiscal year. The certification shall include
a | ||||||
21 | detailed explanation of the methods and information that the | ||||||
22 | Board relied
upon in preparing its estimate. As soon as | ||||||
23 | possible after the effective date
of this amendatory Act of the | ||||||
24 | 92nd General Assembly, the Board
shall recalculate and | ||||||
25 | recertify its certifications for fiscal years 2002 and
2003.
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26 | (d) Beginning in fiscal year 1996, on the first day of each | ||||||
27 | month, or
as soon thereafter as may be practical, the State | ||||||
28 | Treasurer and the State
Comptroller shall transfer from the | ||||||
29 | General Revenue Fund to the Teacher Health
Insurance Security | ||||||
30 | Fund 1/12 of the annual amount appropriated for that fiscal
| ||||||
31 | year to the State Comptroller for deposit into the Teacher | ||||||
32 | Health Insurance
Security Fund under Section 1.3 of the State | ||||||
33 | Pension Funds Continuing
Appropriation Act.
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34 | (e) Except where otherwise specified in this Section, the |
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| |||||||
1 | definitions
that apply to Article 16 of the Illinois Pension | ||||||
2 | Code apply to this Section.
| ||||||
3 | (f) (Blank).
This Section is repealed on July 1, 2004.
| ||||||
4 | (Source: P.A. 92-505, eff. 12-20-01.)
| ||||||
5 | Section 15. The State Pension Funds Continuing | ||||||
6 | Appropriation Act is amended by changing Section 1.3 as | ||||||
7 | follows:
| ||||||
8 | (40 ILCS 15/1.3)
| ||||||
9 | Sec. 1.3. Appropriations for the Teacher Health Insurance | ||||||
10 | Security Fund.
Beginning in State fiscal year 1996, there is | ||||||
11 | hereby appropriated, on a
continuing annual basis, from the | ||||||
12 | General Revenue Fund to the State Comptroller
for deposit into | ||||||
13 | the Teacher Health Insurance Security Fund, an amount equal to
| ||||||
14 | the amount certified by the Board of Trustees of the Teachers' | ||||||
15 | Retirement
System of Illinois under subsection (c) of Section | ||||||
16 | 6.6 of the State Employees
Group Insurance Act of 1971 as the | ||||||
17 | estimated total amount of contributions to
be paid under | ||||||
18 | subsection (a) of that Section 6.6 in that fiscal year. | ||||||
19 | In addition to any other amounts that may be appropriated | ||||||
20 | for this purpose, in State fiscal years 2005 through 2007, | ||||||
21 | there is hereby appropriated, on a
continuing annual basis, | ||||||
22 | from the General Revenue Fund to the State Comptroller
for | ||||||
23 | deposit into the Teacher Health Insurance Security Fund, an | ||||||
24 | amount equal to $13,000,000 in each ficsal year.
| ||||||
25 | The
moneys appropriated under this Section 1.3 shall be | ||||||
26 | deposited into the Teacher
Health Insurance Security Fund and | ||||||
27 | used only for the purposes authorized in
Section 6.5 of the | ||||||
28 | State Employees Group Insurance Act of 1971.
| ||||||
29 | (Source: P.A. 89-25, eff. 6-21-95.)
| ||||||
30 | Section 90. The State Mandates Act is amended by adding | ||||||
31 | Section 8.28 as
follows:
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1 | (30 ILCS 805/8.28 new)
| ||||||
2 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
3 | of this
Act, no reimbursement by the State is required for the | ||||||
4 | implementation of
any mandate created by this amendatory Act of | ||||||
5 | the 93rd General Assembly.
| ||||||
6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.".
|