HB5520 97TH GENERAL ASSEMBLY

LRB097 20453 EFG 65963 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5520

Introduced 2/15/2012, by Rep. Linda Chapa LaVia

SYNOPSIS AS INTRODUCED:

40 ILCS 5/17-142.1	from Ch. 108 1/2, par. 17-142.1
30 ILCS 805/8.36 new

Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that beginning in fiscal year 2013, the $65,000,000 base limitation on total payments for health insurance shall increase annually by the unadjusted percentage increase (but not less than zero) of the weighted average of medical care services and medical care commodities in the consumer price index-u for the 12 months ending March 1 of the previous fiscal year. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 17-142.1 as follows:

(40 ILCS 5/17-142.1) (from Ch. 108 1/2, par. 17-142.1)

Sec. 17-142.1. To defray health insurance costs. To provide for the partial reimbursement of health insurance costs.

(1) On the first day of September of each year, beginning in 1988, the Board may, by separate warrant, pay to each recipient of a service retirement, disability retirement or survivor's pension an amount to be determined by the Board, which shall represent partial reimbursement for the cost of the recipient's health insurance coverage.

(2) In lieu of the annual payment authorized in subdivision (1), for pensioners enrolled in the Fund's regular health care deduction plans, the Fund may pay the health insurance premium reimbursement on a monthly rather than annual basis, at the percentage rate established from time to time by the Board. If the Board so directs, these monthly payments may be made in the form of a direct payment of premium and a reduction in the amount deducted from the annuity, rather than in the form of reimbursement by separate warrant.

(3) Total payments under this Section in any year may not exceed the base limitation amount determined annually under subsection (3.1), $65,000,000 plus any amount that was authorized to be paid under this Section in the preceding year but was not actually paid by the Board, including any interest earned thereon.

(3.1) In fiscal year 2012, the base limitation amount is $65,000,000. Beginning in fiscal year 2013, the base limitation amount shall increase annually by the unadjusted percentage increase (but not less than zero) of the weighted average of medical care services and medical care commodities in the consumer price index-u for the 12 months ending March 1 of the previous fiscal year.

(4) The total amount of payments under this Section in any year may not exceed 75% of the total cost of health insurance coverage in that year for all the recipients who receive payments authorized by this Section in that year.

(Source: P.A. 93-677, eff. 6-28-04.)

Section 90. The State Mandates Act is amended by adding Section 8.36 as follows:

(30 ILCS 805/8.36 new)

Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 97th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.