HB2789 98TH GENERAL ASSEMBLY

LRB098 08741 EFG 38866 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2789

Introduced , by Rep. Elgie R. Sims, Jr.

SYNOPSIS AS INTRODUCED:

40 ILCS 5/17-142.1	from Ch. 108 1/2, par. 17-142.1
30 ILCS 805/8.37 new

Amends the Chicago Teacher Article of the Illinois Pension Code. In a Section on reimbursement of health insurance costs: (1) deletes a provision limiting total payments in any year to $65,000,000, plus past-due amounts; (2) changes a provision limiting total payments in any year from 75% to 50% of the total cost of health insurance for all recipients, plus past-due amounts; and (iii) adds a provision limiting each recipient to an amount equal to 2.2% of health insurance costs for each year of service credit. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2014.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

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) (Blank). Total payments under this Section in any year may not exceed $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.

(4) The total amount of payments under this Section in any year may not exceed 50% 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, 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. A recipient shall not receive reimbursement for the cost of health insurance coverage in excess of 2.2% for each year of service credit.

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

Section 90. The State Mandates Act is amended by adding Section 8.37 as follows:

(30 ILCS 805/8.37 new)

Sec. 8.37. 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 98th General Assembly.

Section 99. Effective date. This Act takes effect January 1, 2014.