SB1605 97TH GENERAL ASSEMBLY

LRB097 08633 JDS 48761 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1605

Introduced 2/9/2011, by Sen. John G. Mulroe

SYNOPSIS AS INTRODUCED:

40 ILCS 5/5-167.5	from Ch. 108 1/2, par. 5-167.5
30 ILCS 805/8.35 new

Amends the Chicago Police Article of the Illinois Pension Code. Provides that retiree members of the city health care plans shall pay no higher premium, and shall receive no lower level of benefits, than the active employee members with the same Medicare status. Pre-empts home rule. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY	HOME RULE NOTE ACT MAY APPLY	PENSION IMPACT NOTE ACT MAY APPLY
	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT 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 5-167.5 as follows:

(40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)

Sec. 5-167.5. Payments to city for annuitant health care; equality of coverage.

(a) For the purposes of this Section, "city annuitant" means a person receiving an age and service annuity, a widow's annuity, a child's annuity, or a minimum annuity under this Article as a direct result of previous employment by the City of Chicago ("the city").

(b) The board shall pay to the city, on behalf of the board's city annuitants who participate in any of the city's health care plans, the following amounts:

(1) From July 1, 2003 through June 30, 2008, $85 per month for each such annuitant who is not eligible to receive Medicare benefits and $55 per month for each such annuitant who is eligible to receive Medicare benefits.

(2) From July 1, 2008 through June 30, 2013, $95 per month for each such annuitant who is not eligible to receive Medicare benefits and $65 per month for each such annuitant who is eligible to receive Medicare benefits.

The payments described in this subsection shall be paid from the tax levy authorized under Section 5-168; such amounts shall be credited to the reserve for group hospital care and group medical and surgical plan benefits, and all payments to the city required under this subsection shall be charged against it.

(c) The city health care plans referred to in this Section and the board's payments to the city under this Section are not and shall not be construed to be pension or retirement benefits for the purposes of Section 5 of Article XIII of the Illinois Constitution of 1970.

(d) Beginning January 1, 2012, retirees under this Article who participate in the city health care plans shall pay no higher premium or other cost, and shall receive no lower level of benefits, than the corresponding active employee participants in those plans with the same Medicare status. The city, a home rule unit, may not create or maintain any inequality in benefits or costs for retired and active participants in the city health care plans in a manner inconsistent with this subsection. This subsection is a limitation on the concurrent exercise of home rule power under subsection (i) of Section 6 of Article VII of the Illinois Constitution.

(Source: P.A. 92-599, eff. 6-28-02; 93-42, eff. 7-1-03.)

Section 90. The State Mandates Act is amended by adding Section 8.35 as follows:

(30 ILCS 805/8.35 new)

Sec. 8.35. 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.