Rep. Rosemary Mulligan
Filed: 5/14/2008
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1 | AMENDMENT TO HOUSE BILL 3177
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2 | AMENDMENT NO. ______. Amend House Bill 3177 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 Section 6.6 as follows:
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6 | (5 ILCS 375/6.6)
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7 | Sec. 6.6. Contributions to the Teacher Health Insurance | ||||||
8 | Security Fund.
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9 | (a) Beginning July 1, 1995, all active contributors of the | ||||||
10 | Teachers'
Retirement System (established under Article 16 of | ||||||
11 | the Illinois Pension Code)
who are not employees of a | ||||||
12 | department as defined in Section 3 of this Act
shall make | ||||||
13 | contributions toward the cost of annuitant and survivor health
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14 | benefits. These contributions shall be at the following rates:
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15 | until January 1, 2002, 0.5% of salary;
beginning January 1, | ||||||
16 | 2002, 0.65% of salary;
beginning July 1, 2003, 0.75% of salary; |
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1 | beginning July 1, 2005, 0.80% of salary;
beginning July 1, | ||||||
2 | 2007, a percentage of salary to be determined by the Department | ||||||
3 | of Central Management Services by rule, which in each fiscal | ||||||
4 | year shall not exceed 105% of the percentage of salary actually | ||||||
5 | required to be paid in the previous fiscal year.
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6 | These contributions shall be deducted by the employer and | ||||||
7 | paid to the System
as service agent for the Department of | ||||||
8 | Central Management Services. The System
may use the same | ||||||
9 | processes for collecting the contributions required by this
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10 | subsection that it uses to collect contributions received from | ||||||
11 | school districts
and other covered employers under Sections | ||||||
12 | 16-154 and 16-155 of the Illinois
Pension Code.
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13 | An employer may agree to pick up or pay the contributions | ||||||
14 | required under
this subsection on behalf of the teacher; such | ||||||
15 | contributions shall be deemed
to have to have been paid by the | ||||||
16 | teacher. Beginning January 1, 2002, if
the employer does not | ||||||
17 | directly pay the required member contribution, then the
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18 | employer shall reduce the member's salary by an amount equal to | ||||||
19 | the required
contribution and shall then pay the contribution | ||||||
20 | on behalf of the member.
This reduction shall not change the | ||||||
21 | amounts reported as creditable earnings
to the Teachers' | ||||||
22 | Retirement System.
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23 | A person who purchases optional service credit under | ||||||
24 | Article 16 of the
Illinois Pension Code for a period after June | ||||||
25 | 30, 1995 must also make a
contribution under this subsection | ||||||
26 | for that optional credit, at the rate
provided in subsection |
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1 | (a), based on the salary used in
computing the optional service | ||||||
2 | credit, plus interest on this employee
contribution. This | ||||||
3 | contribution shall be collected by the System as service
agent | ||||||
4 | for the Department of Central Management Services. The | ||||||
5 | contribution
required under this subsection for the optional | ||||||
6 | service credit must be paid
in full before any annuity based on | ||||||
7 | that credit begins.
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8 | (a-5) Beginning January 1, 2002, every employer of a | ||||||
9 | teacher (other than
an employer that is a department as defined | ||||||
10 | in Section 3 of this Act) shall
pay an employer contribution | ||||||
11 | toward the cost of annuitant and survivor health
benefits. | ||||||
12 | These contributions shall be computed as follows:
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13 | (1) Beginning January 1, 2002 through June 30, 2003, | ||||||
14 | the employer
contribution shall be equal to 0.4% of each | ||||||
15 | teacher's salary.
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16 | (2) Beginning July 1, 2003, the employer contribution | ||||||
17 | shall be equal to
0.5% of each teacher's salary.
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18 | (3) Beginning July 1, 2005, the employer contribution | ||||||
19 | shall be equal to
0.6% of each teacher's salary.
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20 | (4) Beginning July 1, 2007, the employer contribution | ||||||
21 | shall be a percentage of each teacher's salary to be | ||||||
22 | determined by the Department of Central Management | ||||||
23 | Services by rule, which in each fiscal year shall not | ||||||
24 | exceed 105% of the percentage of each teacher's salary | ||||||
25 | actually required to be paid in the previous fiscal year.
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26 | These contributions shall be paid by the employer to the |
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1 | System as service
agent for the Department of Central | ||||||
2 | Management Services. The System may use
the same processes for | ||||||
3 | collecting the contributions required by this subsection
that | ||||||
4 | it uses to collect contributions received from school districts | ||||||
5 | and other
covered employers under the Illinois Pension Code.
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6 | The school district or other employing unit may pay these | ||||||
7 | employer
contributions out of any source of funding available | ||||||
8 | for that purpose and
shall forward the contributions to the | ||||||
9 | System on the schedule established
for the payment of member | ||||||
10 | contributions.
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11 | (b) The Teachers' Retirement System shall promptly deposit | ||||||
12 | all moneys
collected under subsections (a) and (a-5) of this
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13 | Section into the Teacher Health Insurance Security Fund created | ||||||
14 | in Section 6.5
of this Act. The moneys collected under this | ||||||
15 | Section shall be used only for
the purposes authorized in | ||||||
16 | Section 6.5 of this Act and shall not be considered
to be | ||||||
17 | assets of the Teachers' Retirement System. Contributions made | ||||||
18 | under this
Section are not transferable to other pension funds | ||||||
19 | or retirement systems and
are not refundable upon termination | ||||||
20 | of service.
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21 | (c) On or before November 15 of each year, the Board of | ||||||
22 | Trustees of the
Teachers' Retirement System shall certify to | ||||||
23 | the Governor, the Director of
Central Management Services, and | ||||||
24 | the State Comptroller its estimate of the
total amount of | ||||||
25 | contributions to be paid under subsection (a) of this Section
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26 | 6.6 for the next fiscal year. The amount certified shall be |
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1 | decreased or
increased each year by the amount that the actual | ||||||
2 | active teacher contributions
either fell short of or exceeded | ||||||
3 | the estimate used by the Board in making the
certification for | ||||||
4 | the previous fiscal year. The certification shall include
a | ||||||
5 | detailed explanation of the methods and information that the | ||||||
6 | Board relied
upon in preparing its estimate. As soon as | ||||||
7 | possible after the effective date
of this amendatory Act of the | ||||||
8 | 92nd General Assembly, the Board
shall recalculate and | ||||||
9 | recertify its certifications for fiscal years 2002 and
2003.
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10 | (d) Beginning in fiscal year 1996, on the first day of each | ||||||
11 | month, or
as soon thereafter as may be practical, the State | ||||||
12 | Treasurer and the State
Comptroller shall transfer from the | ||||||
13 | General Revenue Fund to the Teacher Health
Insurance Security | ||||||
14 | Fund 1/12 of the annual amount appropriated for that fiscal
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15 | year to the State Comptroller for deposit into the Teacher | ||||||
16 | Health Insurance
Security Fund under Section 1.3 of the State | ||||||
17 | Pension Funds Continuing
Appropriation Act.
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18 | (e) Except where otherwise specified in this Section, the | ||||||
19 | definitions
that apply to Article 16 of the Illinois Pension | ||||||
20 | Code apply to this Section.
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21 | (f) Notwithstanding any other law to the contrary, the | ||||||
22 | Teachers Health Insurance Security Fund is not subject to | ||||||
23 | sweeps, administrative charge-backs, or any other fiscal or | ||||||
24 | budgetary maneuver that would in any way transfer any amounts | ||||||
25 | from the Teachers Health Insurance Security Fund into any other | ||||||
26 | fund of the State. (Blank) .
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1 | (Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.".
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