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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2961
Introduced 1/20/2006, by Sen. Iris Y. Martinez SYNOPSIS AS INTRODUCED: |
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5 ILCS 375/3 |
from Ch. 127, par. 523 |
5 ILCS 375/6.9 |
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5 ILCS 375/6.10 |
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Amends the State Employees Group Insurance Act of 1971. Removes the prohibition against participation by community college districts subject to Article VII of the Public Community College Act and their retired employees.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB2961 |
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LRB094 18762 JAM 54145 b |
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| AN ACT concerning government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The State Employees Group Insurance Act of 1971 |
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| is amended by changing Sections 3, 6.9, and 6.10 as follows:
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| (5 ILCS 375/3) (from Ch. 127, par. 523)
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| Sec. 3. Definitions. Unless the context otherwise |
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| requires, the
following words and phrases as used in this Act |
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| shall have the following
meanings. The Department may define |
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| these and other words and phrases
separately for the purpose of |
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| implementing specific programs providing benefits
under this |
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| Act.
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| (a) "Administrative service organization" means any |
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| person, firm or
corporation experienced in the handling of |
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| claims which is
fully qualified, financially sound and capable |
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| of meeting the service
requirements of a contract of |
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| administration executed with the Department.
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| (b) "Annuitant" means (1) an employee who retires, or has |
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| retired,
on or after January 1, 1966 on an immediate annuity |
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| under the provisions
of Articles 2, 14 (including an employee |
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| who has elected to receive an alternative retirement |
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| cancellation payment under Section 14-108.5 of the Illinois |
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| Pension Code in lieu of an annuity), 15 (including an employee |
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| who has retired under the optional
retirement program |
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| established under Section 15-158.2),
paragraphs (2), (3), or |
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| (5) of Section 16-106, or
Article 18 of the Illinois Pension |
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| Code; (2) any person who was receiving
group insurance coverage |
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| under this Act as of March 31, 1978 by
reason of his status as |
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| an annuitant, even though the annuity in relation
to which such |
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| coverage was provided is a proportional annuity based on less
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| than the minimum period of service required for a retirement |
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| annuity in
the system involved; (3) any person not otherwise |
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LRB094 18762 JAM 54145 b |
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| covered by this Act
who has retired as a participating member |
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| under Article 2 of the Illinois
Pension Code but is ineligible |
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| for the retirement annuity under Section
2-119 of the Illinois |
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| Pension Code; (4) the spouse of any person who
is receiving a |
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| retirement annuity under Article 18 of the Illinois Pension
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| Code and who is covered under a group health insurance program |
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| sponsored
by a governmental employer other than the State of |
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| Illinois and who has
irrevocably elected to waive his or her |
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| coverage under this Act and to have
his or her spouse |
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| considered as the "annuitant" under this Act and not as
a |
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| "dependent"; or (5) an employee who retires, or has retired, |
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| from a
qualified position, as determined according to rules |
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| promulgated by the
Director, under a qualified local government |
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| or a qualified rehabilitation
facility or a qualified domestic |
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| violence shelter or service. (For definition
of "retired |
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| employee", see (p) post).
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| (b-5) "New SERS annuitant" means a person who, on or after |
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| January 1,
1998, becomes an annuitant, as defined in subsection |
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| (b), by virtue of
beginning to receive a retirement annuity |
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| under Article 14 of the Illinois
Pension Code (including an |
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| employee who has elected to receive an alternative retirement |
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| cancellation payment under Section 14-108.5 of that Code in |
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| lieu of an annuity), and is eligible to participate in the |
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| basic program of group
health benefits provided for annuitants |
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| under this Act.
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| (b-6) "New SURS annuitant" means a person who (1) on or |
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| after January 1,
1998, becomes an annuitant, as defined in |
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| subsection (b), by virtue of
beginning to receive a retirement |
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| annuity under Article 15 of the Illinois
Pension Code, (2) has |
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| not made the election authorized under Section 15-135.1
of the |
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| Illinois Pension Code, and (3) is eligible to participate in |
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| the basic
program of group
health benefits provided for |
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| annuitants under this Act.
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| (b-7) "New TRS State annuitant" means a person who, on or |
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| after July
1, 1998, becomes an annuitant, as defined in |
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| subsection (b), by virtue of
beginning to receive a retirement |
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| annuity under Article 16 of the Illinois
Pension Code based on |
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| service as a teacher as defined in
paragraph (2), (3), or (5) |
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| of Section 16-106 of that Code, and is eligible
to participate |
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| in the basic program of group health benefits provided for
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| annuitants under this Act.
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| (c) "Carrier" means (1) an insurance company, a corporation |
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| organized
under the Limited Health Service Organization Act or |
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| the Voluntary Health
Services Plan Act, a partnership, or other |
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| nongovernmental organization,
which is authorized to do group |
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| life or group health insurance business in
Illinois, or (2) the |
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| State of Illinois as a self-insurer.
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| (d) "Compensation" means salary or wages payable on a |
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| regular
payroll by the State Treasurer on a warrant of the |
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| State Comptroller out
of any State, trust or federal fund, or |
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| by the Governor of the State
through a disbursing officer of |
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| the State out of a trust or out of
federal funds, or by any |
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| Department out of State, trust, federal or
other funds held by |
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| the State Treasurer or the Department, to any person
for |
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| personal services currently performed, and ordinary or |
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| accidental
disability benefits under Articles 2, 14, 15 |
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| (including ordinary or accidental
disability benefits under |
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| the optional retirement program established under
Section |
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| 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or |
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| Article 18 of the Illinois Pension Code, for disability
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| incurred after January 1, 1966, or benefits payable under the |
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| Workers'
Compensation or Occupational Diseases Act or benefits |
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| payable under a sick
pay plan established in accordance with |
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| Section 36 of the State Finance Act.
"Compensation" also means |
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| salary or wages paid to an employee of any
qualified local |
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| government or qualified rehabilitation facility or a
qualified |
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| domestic violence shelter or service.
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| (e) "Commission" means the State Employees Group Insurance |
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| Advisory
Commission authorized by this Act. Commencing July 1, |
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| 1984, "Commission"
as used in this Act means the Commission on |
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| Government Forecasting and Accountability as
established by |
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| the Legislative Commission Reorganization Act of 1984.
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| (f) "Contributory", when referred to as contributory |
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| coverage, shall
mean optional coverages or benefits elected by |
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| the member toward the cost of
which such member makes |
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| contribution, or which are funded in whole or in part
through |
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| the acceptance of a reduction in earnings or the foregoing of |
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| an
increase in earnings by an employee, as distinguished from |
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| noncontributory
coverage or benefits which are paid entirely by |
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| the State of Illinois
without reduction of the member's salary.
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| (g) "Department" means any department, institution, board,
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| commission, officer, court or any agency of the State |
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| government
receiving appropriations and having power to |
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| certify payrolls to the
Comptroller authorizing payments of |
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| salary and wages against such
appropriations as are made by the |
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| General Assembly from any State fund, or
against trust funds |
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| held by the State Treasurer and includes boards of
trustees of |
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| the retirement systems created by Articles 2, 14, 15, 16 and
18 |
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| of the Illinois Pension Code. "Department" also includes the |
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| Illinois
Comprehensive Health Insurance Board, the Board of |
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| Examiners established under
the Illinois Public Accounting |
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| Act, and the Illinois Finance Authority.
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| (h) "Dependent", when the term is used in the context of |
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| the health
and life plan, means a member's spouse and any |
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| unmarried child (1) from
birth to age 19 including an adopted |
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| child, a child who lives with the
member from the time of the |
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| filing of a petition for adoption until entry
of an order of |
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| adoption, a stepchild or recognized child who lives with the
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| member in a parent-child relationship, or a child who lives |
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| with the member
if such member is a court appointed guardian of |
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| the child, or (2)
age 19 to 23 enrolled as a full-time student |
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| in any accredited school,
financially dependent upon the |
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| member, and eligible to be claimed as a
dependent for income |
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| tax purposes, or (3) age 19 or over who is mentally
or |
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| physically handicapped. For the purposes of item (2), an |
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| unmarried child age 19 to 23 who is a member of the United |
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| States Armed Services, including the Illinois National Guard, |
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| and is mobilized to active duty shall qualify as a dependent |
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| beyond the age of 23 and until the age of 25 and while a |
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| full-time student for the amount of time spent on active duty |
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| between the ages of 19 and 23. The individual attempting to |
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| qualify for this additional time must submit written |
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| documentation of active duty service to the Director. The |
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| changes made by this amendatory Act of the 94th General |
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| Assembly apply only to individuals mobilized to active duty in |
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| the United States Armed Services, including the Illinois |
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| National Guard, on or after January 1, 2002. For
the health |
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| plan only, the term "dependent" also includes any person
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| enrolled prior to the effective date of this Section who is |
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| dependent upon
the member to the extent that the member may |
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| claim such person as a
dependent for income tax deduction |
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| purposes; no other such
person may be enrolled.
For the health |
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| plan only, the term "dependent" also includes any person who
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| has received after June 30, 2000 an organ transplant and who is |
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| financially
dependent upon the member and eligible to be |
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| claimed as a dependent for income
tax purposes.
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| (i) "Director" means the Director of the Illinois |
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| Department of Central
Management Services.
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| (j) "Eligibility period" means the period of time a member |
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| has to
elect enrollment in programs or to select benefits |
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| without regard to
age, sex or health.
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| (k) "Employee" means and includes each officer or employee |
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| in the
service of a department who (1) receives his |
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| compensation for
service rendered to the department on a |
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| warrant issued pursuant to a payroll
certified by a department |
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| or on a warrant or check issued and drawn by a
department upon |
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| a trust, federal or other fund or on a warrant issued
pursuant |
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| to a payroll certified by an elected or duly appointed officer
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| of the State or who receives payment of the performance of |
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| personal
services on a warrant issued pursuant to a payroll |
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| certified by a
Department and drawn by the Comptroller upon the |
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| State Treasurer against
appropriations made by the General |
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| Assembly from any fund or against
trust funds held by the State |
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| Treasurer, and (2) is employed full-time or
part-time in a |
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LRB094 18762 JAM 54145 b |
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| position normally requiring actual performance of duty
during |
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| not less than 1/2 of a normal work period, as established by |
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| the
Director in cooperation with each department, except that |
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| persons elected
by popular vote will be considered employees |
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| during the entire
term for which they are elected regardless of |
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| hours devoted to the
service of the State, and (3) except that |
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| "employee" does not include any
person who is not eligible by |
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| reason of such person's employment to
participate in one of the |
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| State retirement systems under Articles 2, 14, 15
(either the |
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| regular Article 15 system or the optional retirement program
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| established under Section 15-158.2) or 18, or under paragraph |
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| (2), (3), or
(5) of Section 16-106, of the Illinois
Pension |
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| Code, but such term does include persons who are employed |
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| during
the 6 month qualifying period under Article 14 of the |
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| Illinois Pension
Code. Such term also includes any person who |
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| (1) after January 1, 1966,
is receiving ordinary or accidental |
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| disability benefits under Articles
2, 14, 15 (including |
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| ordinary or accidental disability benefits under the
optional |
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| retirement program established under Section 15-158.2), |
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| paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of |
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| the
Illinois Pension Code, for disability incurred after |
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| January 1, 1966, (2)
receives total permanent or total |
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| temporary disability under the Workers'
Compensation Act or |
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| Occupational Disease Act as a result of injuries
sustained or |
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| illness contracted in the course of employment with the
State |
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| of Illinois, or (3) is not otherwise covered under this Act and |
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| has
retired as a participating member under Article 2 of the |
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| Illinois Pension
Code but is ineligible for the retirement |
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| annuity under Section 2-119 of
the Illinois Pension Code. |
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| However, a person who satisfies the criteria
of the foregoing |
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| definition of "employee" except that such person is made
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| ineligible to participate in the State Universities Retirement |
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| System by
clause (4) of subsection (a) of Section 15-107 of the |
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| Illinois Pension
Code is also an "employee" for the purposes of |
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| this Act. "Employee" also
includes any person receiving or |
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| eligible for benefits under a sick pay
plan established in |
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| accordance with Section 36 of the State Finance Act.
"Employee" |
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| also includes each officer or employee in the service of a
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| qualified local government, including persons appointed as |
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| trustees of
sanitary districts regardless of hours devoted to |
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| the service of the
sanitary district, and each employee in the |
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| service of a qualified
rehabilitation facility and each |
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| full-time employee in the service of a
qualified domestic |
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| violence shelter or service, as determined according to
rules |
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| promulgated by the Director.
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| (l) "Member" means an employee, annuitant, retired |
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| employee or survivor.
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| (m) "Optional coverages or benefits" means those coverages |
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| or
benefits available to the member on his or her voluntary |
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| election, and at
his or her own expense.
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| (n) "Program" means the group life insurance, health |
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| benefits and other
employee benefits designed and contracted |
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| for by the Director under this Act.
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| (o) "Health plan" means a health benefits
program offered
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| by the State of Illinois for persons eligible for the plan.
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| (p) "Retired employee" means any person who would be an |
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| annuitant as
that term is defined herein but for the fact that |
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| such person retired prior to
January 1, 1966. Such term also |
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| includes any person formerly employed by
the University of |
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| Illinois in the Cooperative Extension Service who would
be an |
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| annuitant but for the fact that such person was made ineligible |
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| to
participate in the State Universities Retirement System by |
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| clause (4) of
subsection (a) of Section 15-107 of the Illinois
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| Pension Code.
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| (q) "Survivor" means a person receiving an annuity as a |
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| survivor of an
employee or of an annuitant. "Survivor" also |
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| includes: (1) the surviving
dependent of a person who satisfies |
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| the definition of "employee" except that
such person is made |
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| ineligible to participate in the State Universities
Retirement |
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| System by clause (4) of subsection (a)
of Section 15-107 of the |
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| Illinois Pension Code; (2) the surviving
dependent of any |
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| person formerly employed by the University of Illinois in
the |
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| Cooperative Extension Service who would be an annuitant except |
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| for the
fact that such person was made ineligible to |
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| participate in the State
Universities Retirement System by |
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| clause (4) of subsection (a) of Section
15-107 of the Illinois |
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| Pension Code; and (3) the surviving dependent of a person who |
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| was an annuitant under this Act by virtue of receiving an |
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| alternative retirement cancellation payment under Section |
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| 14-108.5 of the Illinois Pension Code.
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| (q-2) "SERS" means the State Employees' Retirement System |
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| of Illinois, created under Article 14 of the Illinois Pension |
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| Code.
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| (q-3) "SURS" means the State Universities Retirement |
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| System, created under Article 15 of the Illinois Pension Code.
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| (q-4) "TRS" means the Teachers' Retirement System of the |
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| State of Illinois, created under Article 16 of the Illinois |
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| Pension Code.
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| (q-5) "New SERS survivor" means a survivor, as defined in |
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| subsection (q),
whose annuity is paid under Article 14 of the |
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| Illinois Pension Code and is
based on the death of (i) an |
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| employee whose death occurs on or after January 1,
1998, or |
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| (ii) a new SERS annuitant as defined in subsection (b-5). "New |
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| SERS survivor" includes the surviving dependent of a person who |
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| was an annuitant under this Act by virtue of receiving an |
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| alternative retirement cancellation payment under Section |
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| 14-108.5 of the Illinois Pension Code.
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| (q-6) "New SURS survivor" means a survivor, as defined in |
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| subsection (q),
whose annuity is paid under Article 15 of the |
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| Illinois Pension Code and is
based on the death of (i) an |
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| employee whose death occurs on or after January 1,
1998, or |
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| (ii) a new SURS annuitant as defined in subsection (b-6).
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| (q-7) "New TRS State survivor" means a survivor, as defined |
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| in subsection
(q), whose annuity is paid under Article 16 of |
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| the Illinois Pension Code and is
based on the death of (i) an |
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| employee who is a teacher as defined in paragraph
(2), (3), or |
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| (5) of Section 16-106 of that Code and whose death occurs on or
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| after July 1, 1998, or (ii) a new TRS State annuitant as |
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| defined in subsection
(b-7).
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| (r) "Medical services" means the services provided within |
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| the scope
of their licenses by practitioners in all categories |
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| licensed under the
Medical Practice Act of 1987.
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| (s) "Unit of local government" means any county, |
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| municipality,
township, school district (including a |
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| combination of school districts under
the Intergovernmental |
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| Cooperation Act), special district or other unit,
designated as |
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| a
unit of local government by law, which exercises limited |
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| governmental
powers or powers in respect to limited |
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| governmental subjects, any
not-for-profit association with a |
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| membership that primarily includes
townships and township |
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| officials, that has duties that include provision of
research |
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| service, dissemination of information, and other acts for the
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| purpose of improving township government, and that is funded |
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| wholly or
partly in accordance with Section 85-15 of the |
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| Township Code; any
not-for-profit corporation or association, |
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| with a membership consisting
primarily of municipalities, that |
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| operates its own utility system, and
provides research, |
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| training, dissemination of information, or other acts to
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| promote cooperation between and among municipalities that |
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| provide utility
services and for the advancement of the goals |
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| and purposes of its
membership;
the Southern Illinois |
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| Collegiate Common Market, which is a consortium of higher
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| education institutions in Southern Illinois; the Illinois |
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| Association of
Park Districts; and any hospital provider that |
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| is owned by a county that has 100 or fewer hospital beds and |
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| has not already joined the program. "Qualified
local |
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| government" means a unit of local government approved by the |
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| Director and
participating in a program created under |
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| subsection (i) of Section 10 of this
Act.
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| (t) "Qualified rehabilitation facility" means any |
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| not-for-profit
organization that is accredited by the |
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| Commission on Accreditation of
Rehabilitation Facilities or |
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| certified by the Department
of Human Services (as successor to |
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| the Department of Mental Health
and Developmental |
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| Disabilities) to provide services to persons with
disabilities
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| and which receives funds from the State of Illinois for |
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| providing those
services, approved by the Director and |
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| participating in a program created
under subsection (j) of |
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| Section 10 of this Act.
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| (u) "Qualified domestic violence shelter or service" means |
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| any Illinois
domestic violence shelter or service and its |
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| administrative offices funded
by the Department of Human |
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| Services (as successor to the Illinois Department of
Public |
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| Aid),
approved by the Director and
participating in a program |
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| created under subsection (k) of Section 10.
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| (v) "TRS benefit recipient" means a person who:
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| (1) is not a "member" as defined in this Section; and
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| (2) is receiving a monthly benefit or retirement |
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| annuity
under Article 16 of the Illinois Pension Code; and
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| (3) either (i) has at least 8 years of creditable |
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| service under Article
16 of the Illinois Pension Code, or |
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| (ii) was enrolled in the health insurance
program offered |
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| under that Article on January 1, 1996, or (iii) is the |
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| survivor
of a benefit recipient who had at least 8
years of |
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| creditable service under Article 16 of the Illinois Pension |
22 |
| Code or
was enrolled in the health insurance program |
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| offered under that Article on
the effective date of this |
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| amendatory Act of 1995, or (iv) is a recipient or
survivor |
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| of a recipient of a disability benefit under Article 16 of |
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| the
Illinois Pension Code.
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| (w) "TRS dependent beneficiary" means a person who:
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| (1) is not a "member" or "dependent" as defined in this |
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| Section; and
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| (2) is a TRS benefit recipient's: (A) spouse, (B) |
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| dependent parent who
is receiving at least half of his or |
32 |
| her support from the TRS benefit
recipient, or (C) |
33 |
| unmarried natural or adopted child who is (i) under age
19, |
34 |
| or (ii) enrolled as a full-time student in
an accredited |
35 |
| school, financially dependent upon the TRS benefit |
36 |
| recipient,
eligible to be claimed as a dependent for income |
|
|
|
SB2961 |
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LRB094 18762 JAM 54145 b |
|
|
1 |
| tax
purposes, and
either is under age 24 or was, on January |
2 |
| 1, 1996, participating as a dependent
beneficiary in the |
3 |
| health insurance program offered under Article 16 of the
|
4 |
| Illinois Pension Code, or (iii) age 19 or over who is |
5 |
| mentally or physically
handicapped.
|
6 |
| (x) "Military leave with pay and benefits" refers to |
7 |
| individuals in basic
training for reserves, special/advanced |
8 |
| training, annual training, emergency
call up, or activation by |
9 |
| the President of the United States with approved pay
and |
10 |
| benefits.
|
11 |
| (y) "Military leave without pay and benefits" refers to
|
12 |
| individuals who enlist for active duty in a regular component |
13 |
| of the U.S. Armed
Forces or other duty not specified or |
14 |
| authorized under military leave with pay
and benefits.
|
15 |
| (z) "Community college benefit recipient" means a person |
16 |
| who:
|
17 |
| (1) is not a "member" as defined in this Section; and
|
18 |
| (2) is receiving a monthly survivor's annuity or |
19 |
| retirement annuity
under Article 15 of the Illinois Pension |
20 |
| Code; and
|
21 |
| (3) either (i) was a full-time employee of a community |
22 |
| college district or
an association of community college |
23 |
| boards created under the Public Community
College Act |
24 |
| (other than an employee whose last employer under Article |
25 |
| 15 of the
Illinois Pension Code was a community college |
26 |
| district subject to Article VII
of the Public Community |
27 |
| College Act) and was eligible to participate in a group
|
28 |
| health benefit plan as an employee during the time of |
29 |
| employment with a
community college district (other than a |
30 |
| community college district subject to
Article VII of the |
31 |
| Public Community College Act) or an association of |
32 |
| community
college boards, or (ii) is the survivor of a |
33 |
| person described in item (i).
|
34 |
| (aa) "Community college dependent beneficiary" means a |
35 |
| person who:
|
36 |
| (1) is not a "member" or "dependent" as defined in this |
|
|
|
SB2961 |
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LRB094 18762 JAM 54145 b |
|
|
1 |
| Section; and
|
2 |
| (2) is a community college benefit recipient's: (A) |
3 |
| spouse, (B) dependent
parent who is receiving at least half |
4 |
| of his or her support from the community
college benefit |
5 |
| recipient, or (C) unmarried natural or adopted child who is |
6 |
| (i)
under age 19, or (ii) enrolled as a full-time student |
7 |
| in an accredited school,
financially dependent upon the |
8 |
| community college benefit recipient, eligible
to be |
9 |
| claimed as a dependent for income tax purposes and under |
10 |
| age 23, or (iii)
age 19 or over and mentally or physically |
11 |
| handicapped.
|
12 |
| (Source: P.A. 93-205, eff. 1-1-04; 93-839, eff. 7-30-04; |
13 |
| 93-1067, eff. 1-15-05; 94-32, eff. 6-15-05; 94-82, eff. 1-1-06; |
14 |
| revised 8-9-05.)
|
15 |
| (5 ILCS 375/6.9)
|
16 |
| Sec. 6.9. Health benefits for community college benefit |
17 |
| recipients and
community college dependent beneficiaries.
|
18 |
| (a) Purpose. It is the purpose of this amendatory Act of |
19 |
| 1997 to establish
a uniform program of health benefits for |
20 |
| community college benefit recipients
and their dependent |
21 |
| beneficiaries under the administration of the Department of
|
22 |
| Central Management Services.
|
23 |
| (b) Creation of program. Beginning July 1, 1999, the |
24 |
| Department of
Central Management Services shall be responsible |
25 |
| for administering a program of
health benefits for community |
26 |
| college benefit recipients and community college
dependent |
27 |
| beneficiaries under this Section. The State Universities |
28 |
| Retirement
System and the boards of trustees of the various |
29 |
| community college districts
shall cooperate with the |
30 |
| Department in this endeavor.
|
31 |
| (c) Eligibility. All community college benefit recipients |
32 |
| and community
college dependent beneficiaries shall be |
33 |
| eligible to participate in the program
established under this |
34 |
| Section, without any interruption or delay in coverage
or |
35 |
| limitation as to pre-existing medical conditions. Eligibility |
|
|
|
SB2961 |
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LRB094 18762 JAM 54145 b |
|
|
1 |
| to
participate shall be determined by the State Universities |
2 |
| Retirement System.
Eligibility information shall be |
3 |
| communicated to the Department of Central
Management Services |
4 |
| in a format acceptable to the Department.
|
5 |
| (d) Coverage. The health benefit coverage provided under |
6 |
| this Section
shall be a program of health, dental, and vision |
7 |
| benefits.
|
8 |
| The program of health benefits under this Section may |
9 |
| include any or all of
the benefit limitations, including but |
10 |
| not limited to a reduction in benefits
based on eligibility for |
11 |
| federal medicare benefits, that are provided under
subsection |
12 |
| (a) of Section 6 of this Act for other health benefit programs |
13 |
| under
this Act.
|
14 |
| (e) Insurance rates and premiums. The Director shall |
15 |
| determine the
insurance rates and premiums for community |
16 |
| college benefit recipients and
community college dependent |
17 |
| beneficiaries. Rates and premiums may be based
in part on age |
18 |
| and eligibility for federal Medicare coverage.
The Director |
19 |
| shall also determine premiums that will allow for the
|
20 |
| establishment of an actuarially sound reserve for this program.
|
21 |
| The cost of health benefits under the program shall be paid |
22 |
| as follows:
|
23 |
| (1) For a community college benefit recipient, up to |
24 |
| 75% of the total
insurance rate shall be paid from the |
25 |
| Community College Health Insurance
Security Fund.
|
26 |
| (2) The balance of the rate of insurance, including the |
27 |
| entire premium
for any coverage for community college |
28 |
| dependent beneficiaries that has been
elected, shall be |
29 |
| paid by deductions authorized by the community college
|
30 |
| benefit recipient to be withheld from his or her monthly |
31 |
| annuity or benefit
payment from the State Universities |
32 |
| Retirement System; except that (i) if the
balance of the |
33 |
| cost of coverage exceeds the amount of the monthly annuity |
34 |
| or
benefit payment, the difference shall be paid directly |
35 |
| to the State
Universities Retirement System by the |
36 |
| community college benefit recipient, and
(ii) all or part |
|
|
|
SB2961 |
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LRB094 18762 JAM 54145 b |
|
|
1 |
| of the balance of the cost of coverage may, at the option |
2 |
| of
the board of trustees of the community college district, |
3 |
| be paid to
the State Universities Retirement System by the |
4 |
| board of the community college
district from which the |
5 |
| community college benefit recipient retired. The State
|
6 |
| Universities Retirement System shall promptly deposit all |
7 |
| moneys withheld by or
paid to it under this subdivision |
8 |
| (e)(2) into the Community College Health
Insurance |
9 |
| Security Fund. These moneys shall not be considered assets |
10 |
| of the
State Universities Retirement System.
|
11 |
| (f) Financing. All revenues arising from the |
12 |
| administration of the health
benefit program established under |
13 |
| this Section shall be deposited into the
Community College |
14 |
| Health Insurance Security Fund, which is hereby created as a
|
15 |
| nonappropriated trust fund to be held outside the State |
16 |
| Treasury, with the
State Treasurer as custodian. Any interest |
17 |
| earned on moneys in the Community
College Health Insurance |
18 |
| Security Fund shall be deposited into the Fund.
|
19 |
| Moneys in the Community College Health Insurance Security |
20 |
| Fund shall be used
only to pay the costs of the health benefit |
21 |
| program established under this
Section, including associated |
22 |
| administrative costs and the establishment of a
program |
23 |
| reserve. Beginning January 1, 1999,
the Department of Central |
24 |
| Management Services may make expenditures from the
Community |
25 |
| College Health Insurance Security Fund for those costs.
|
26 |
| (g) Contract for benefits. The Director shall by contract, |
27 |
| self-insurance,
or otherwise make available the program of |
28 |
| health benefits for community
college benefit recipients and |
29 |
| their community college dependent beneficiaries
that is |
30 |
| provided for in this Section. The contract or other arrangement |
31 |
| for
the provision of these health benefits shall be on terms |
32 |
| deemed by the Director
to be in the best interest of the State |
33 |
| of Illinois and the community college
benefit recipients based |
34 |
| on, but not limited to, such criteria as
administrative cost, |
35 |
| service capabilities of the carrier or other contractor,
and |
36 |
| the costs of the benefits.
|
|
|
|
SB2961 |
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LRB094 18762 JAM 54145 b |
|
|
1 |
| (h) Continuation of program. It is the intention of the |
2 |
| General Assembly
that the program of health benefits provided |
3 |
| under this Section be maintained
on an ongoing, affordable |
4 |
| basis. The program of health benefits provided under
this |
5 |
| Section may be amended by the State and is not intended to be a |
6 |
| pension or
retirement benefit subject to protection under |
7 |
| Article XIII, Section 5 of the
Illinois Constitution.
|
8 |
| (i) Other health benefit plans. A health benefit plan |
9 |
| provided by a
community college district (other than a |
10 |
| community college district subject to
Article VII of the Public |
11 |
| Community College Act) under the terms of a
collective |
12 |
| bargaining agreement in effect on or prior to the effective |
13 |
| date of
this amendatory Act of 1997 (or January 1, 2007 with |
14 |
| respect to a community college district subject to Article VII |
15 |
| of the Public Community College Act) shall continue in force |
16 |
| according to the terms of
that agreement, unless otherwise |
17 |
| mutually agreed by the parties to that
agreement and the |
18 |
| affected retiree.
A community college benefit recipient or |
19 |
| community college dependent
beneficiary whose coverage under |
20 |
| such a plan expires shall be eligible to begin
participating in |
21 |
| the program established under this Section without any
|
22 |
| interruption or delay in coverage or limitation as to |
23 |
| pre-existing medical
conditions.
|
24 |
| This Act does not prohibit any community college district |
25 |
| from offering
additional health benefits for its retirees or |
26 |
| their dependents or survivors.
|
27 |
| (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
|
28 |
| (5 ILCS 375/6.10)
|
29 |
| Sec. 6.10. Contributions to the Community College Health |
30 |
| Insurance
Security Fund.
|
31 |
| (a) Beginning January 1, 1999, (or January 1, 2007 with |
32 |
| respect to a community college district subject to Article VII |
33 |
| of the Public Community College Act), every active contributor |
34 |
| of the State
Universities Retirement System (established under |
35 |
| Article 15 of the Illinois
Pension Code) who (1) is a full-time |
|
|
|
SB2961 |
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LRB094 18762 JAM 54145 b |
|
|
1 |
| employee of a community college district
(other than a |
2 |
| community college district subject to Article VII of the Public
|
3 |
| Community College Act)
or an association of community college |
4 |
| boards and (2) is not an employee as
defined in Section 3 of |
5 |
| this Act shall make contributions toward the cost of
community |
6 |
| college annuitant and survivor health benefits at the rate of |
7 |
| 0.50%
of salary.
|
8 |
| These contributions shall be deducted by the employer and |
9 |
| paid to the State
Universities Retirement System as service |
10 |
| agent for the Department of Central
Management Services. The |
11 |
| System may use the same processes for collecting the
|
12 |
| contributions required by this subsection that it uses to |
13 |
| collect the
contributions received from those employees under |
14 |
| Section 15-157 of the
Illinois Pension Code. An employer may |
15 |
| agree to pick up or pay the
contributions required under this |
16 |
| subsection on behalf of the employee;
such contributions shall |
17 |
| be deemed to have been paid by the employee.
|
18 |
| The State Universities Retirement System shall promptly |
19 |
| deposit all moneys
collected under this subsection (a) into the |
20 |
| Community College Health Insurance
Security Fund created in |
21 |
| Section 6.9 of this Act. The moneys collected under
this |
22 |
| Section shall be used only for the purposes authorized in |
23 |
| Section 6.9 of
this Act and shall not be considered to be |
24 |
| assets of the State Universities
Retirement System. |
25 |
| Contributions made under this Section are not transferable
to |
26 |
| other pension funds or retirement systems and are not |
27 |
| refundable upon
termination of service.
|
28 |
| (b) Beginning January 1, 1999, (or January 1, 2007 with |
29 |
| respect to a community college district subject to Article VII |
30 |
| of the Public Community College Act), every community college |
31 |
| district
(other than a community college district subject to |
32 |
| Article VII of the Public
Community College Act) or association
|
33 |
| of community college boards that is an employer under the State |
34 |
| Universities
Retirement System shall contribute toward the |
35 |
| cost of the community college
health benefits provided under |
36 |
| Section 6.9 of this Act an amount equal to 0.50%
of the salary |
|
|
|
SB2961 |
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LRB094 18762 JAM 54145 b |
|
|
1 |
| paid to its full-time employees who participate in the State
|
2 |
| Universities Retirement System and are not members as defined |
3 |
| in Section 3 of
this Act.
|
4 |
| These contributions shall be paid by the employer to the |
5 |
| State Universities
Retirement System as service agent for the |
6 |
| Department of Central Management
Services. The System may use |
7 |
| the same processes for collecting the
contributions required by |
8 |
| this subsection that it uses to collect the
contributions |
9 |
| received from those employers under Section 15-155 of the
|
10 |
| Illinois Pension Code.
|
11 |
| The State Universities Retirement System shall promptly |
12 |
| deposit all moneys
collected under this subsection (b) into the |
13 |
| Community College Health Insurance
Security Fund created in |
14 |
| Section 6.9 of this Act. The moneys collected under
this |
15 |
| Section shall be used only for the purposes authorized in |
16 |
| Section 6.9 of
this Act and shall not be considered to be |
17 |
| assets of the State Universities
Retirement System. |
18 |
| Contributions made under this Section are not transferable
to |
19 |
| other pension funds or retirement systems and are not |
20 |
| refundable upon
termination of service.
|
21 |
| (c) On or before November 15 of each year, the Board of |
22 |
| Trustees of the
State Universities Retirement System shall |
23 |
| certify to the Governor, the
Director of Central Management |
24 |
| Services, and the State
Comptroller its estimate of the total |
25 |
| amount of contributions to be paid under
subsection (a) of this |
26 |
| Section for the next fiscal year. The certification
shall |
27 |
| include a detailed explanation of the methods and information |
28 |
| that the
Board relied upon in preparing its estimate. As soon |
29 |
| as possible after the
effective date of this Section, the Board |
30 |
| shall submit its estimate for fiscal
year 1999.
|
31 |
| (d) Beginning in fiscal year 1999, on the first day of each |
32 |
| month, or as
soon thereafter as may be practical, the State |
33 |
| Treasurer and the State
Comptroller shall transfer from the |
34 |
| General Revenue Fund to the Community
College Health Insurance |
35 |
| Security Fund 1/12 of the annual amount appropriated
for that |
36 |
| fiscal year to the State Comptroller for deposit into the |