|
| | SB2071 Engrossed | | LRB098 06454 OMW 36497 b |
|
|
1 | | AN ACT concerning local government.
|
2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly:
|
4 | | Section 5. The Illinois Insurance Code is amended by |
5 | | changing Sections 367h and 367j as follows:
|
6 | | (215 ILCS 5/367h) (from Ch. 73, par. 979h)
|
7 | | Sec. 367h. Deputy's continuance privilege. As used in this |
8 | | Section:
|
9 | | 1. The terms "municipality" and "creditable service"
shall |
10 | | have the meaning ascribed to such terms by Sections 7-105
and |
11 | | 7-113, respectively, of the Illinois Pension Code, as now or |
12 | | hereafter
amended.
|
13 | | The term "deferred pensioner" means a deputy who has |
14 | | retired,
having accumulated enough creditable service to |
15 | | qualify for a pension, but
who has not attained the required |
16 | | age.
|
17 | | 2. The term "deputy" shall mean a "sheriff's
law |
18 | | enforcement employee" as defined in Section 7-109.3 of the |
19 | | Illinois
Pension Code, and include only
persons under the |
20 | | coverage of Article 7 of that Code, as heretofore or
hereafter
|
21 | | amended.
|
22 | | 3. The "retirement or disability period" of a deputy means |
23 | | the period:
|
|
| | SB2071 Engrossed | - 2 - | LRB098 06454 OMW 36497 b |
|
|
1 | | a. which begins on the day the deputy is removed from a |
2 | | sheriff's
police department payroll because of the |
3 | | occurrence of any of the following
events, to wit: (i) the |
4 | | deputy retires as a deferred pensioner,
(ii) the deputy |
5 | | retires from active
service as a deputy with an attained |
6 | | age and accumulated creditable service
which together |
7 | | qualify the deputy for immediate receipt of retirement |
8 | | pension
benefits under Section 7-142.1 of the Illinois |
9 | | Pension Code, or (iii) the
deputy's disability is |
10 | | established under Article 7 of the Illinois
Pension Code; |
11 | | and
|
12 | | b. which ends on the first to occur of any of the |
13 | | following events,
to wit: (i) the deputy's reinstatement or |
14 | | reentry into active service
in the sheriff's police |
15 | | department as provided for under Article 7 of
the Illinois |
16 | | Pension Code, (ii) the deputy's exercise of any refund |
17 | | option
or acceptance of any separation benefit available |
18 | | under Article 7 of the
Illinois Pension Code, (iii) the |
19 | | deputy's
loss pursuant to Section 7-219 of the Illinois |
20 | | Pension Code of any benefits
provided for in Article 7 of |
21 | | that Code, or (iv) the deputy's death or --
if at the time |
22 | | of the deputy's death the deputy is survived by a spouse
|
23 | | who, in that capacity, is entitled to receive a surviving |
24 | | spouse's monthly
pension pursuant to Article 7 of the |
25 | | Illinois Pension Code -- the death
or remarriage of that |
26 | | spouse.
|
|
| | SB2071 Engrossed | - 3 - | LRB098 06454 OMW 36497 b |
|
|
1 | | No policy of group accident and health insurance under |
2 | | which deputies
employed by a municipality are insured for their |
3 | | individual benefit shall
be issued or delivered in this State |
4 | | to any municipality unless such group
policy provides for the |
5 | | election of continued group insurance coverage for
the |
6 | | retirement or disability period of each deputy who is insured |
7 | | under the
provisions of the group policy on the day immediately |
8 | | preceding the day
on which the retirement or disability period |
9 | | of such deputy begins. So
long as any required premiums for |
10 | | continued group insurance coverage are
paid in accordance with |
11 | | the provisions of the group policy, an election
made pursuant |
12 | | to this Section shall provide continued group insurance |
13 | | coverage
for a deputy throughout the retirement or disability |
14 | | period of the
deputy and, unless
the deputy otherwise elects |
15 | | and subject to any other provisions of the
group policy which |
16 | | relate either to the provision or to the termination
of |
17 | | dependents' coverage and which are not inconsistent with this |
18 | | Section,
for any dependents of the deputy who are insured under |
19 | | the group policy on the
day immediately preceding the day on |
20 | | which the retirement or disability
period of the deputy begins; |
21 | | provided, however, that when such continued
group insurance |
22 | | coverage is in effect with respect to a deputy on the date
of |
23 | | the deputy's death but the retirement or disability period of
|
24 | | the deputy
does not end with such deputy's death, then the |
25 | | deceased deputy's surviving
spouse upon whose death or |
26 | | remarriage such retirement or disability period
will end shall |
|
| | SB2071 Engrossed | - 4 - | LRB098 06454 OMW 36497 b |
|
|
1 | | be entitled, without further election and upon payment of
any |
2 | | required premiums in accordance with the provisions of the |
3 | | group policy,
to maintain such continued group insurance |
4 | | coverage in effect until the end of
such retirement or |
5 | | disability period. Continued group insurance coverage shall
be |
6 | | provided in accordance with this Section at the same premium |
7 | | rate from time
to time charged for equivalent coverage provided |
8 | | under the group policy with
respect to covered deputies whose |
9 | | retirement or disability period has not
begun, and no |
10 | | distinction or discrimination in the amount or rate of premiums
|
11 | | or in any waiver of premium
or other benefit provision shall be |
12 | | made between continued group insurance
coverage elected |
13 | | pursuant to this Section and equivalent coverage provided
to |
14 | | deputies under the group policy other than pursuant to the |
15 | | provisions
of this Section; provided that no municipality shall |
16 | | be required by reason
of any provision of this Section to pay |
17 | | any group insurance premium other
than one that may be |
18 | | negotiated in a collective bargaining agreement. Continuation |
19 | | is not required for an insured who becomes eligible for |
20 | | medicare.
If the group policy provides for a reduction in |
21 | | benefits and premium for
insureds who become eligible for |
22 | | medicare, such provision shall apply to
persons electing |
23 | | continued coverage under this Section.
|
24 | | Within 15 days of the beginning of the retirement or |
25 | | disability period
of any deputy entitled to elect continued |
26 | | group insurance coverage under any
group policy affected by |
|
| | SB2071 Engrossed | - 5 - | LRB098 06454 OMW 36497 b |
|
|
1 | | this Section, the municipality last employing such
deputy shall |
2 | | give written notice of such beginning by certified mail, return
|
3 | | receipt requested, to the insurance company issuing such |
4 | | policy. The notice
shall include the deputy's name and last |
5 | | known place of residence and the
beginning date of the deputy's |
6 | | retirement or disability period.
|
7 | | Within 15 days of the date of receipt of such notice from |
8 | | the municipality,
the insurance company by certified mail, |
9 | | return receipt requested, shall
give written notice to the |
10 | | deputy at the deputy's last known place of
residence that |
11 | | coverage under the group policy may be continued for the
|
12 | | retirement or disability period of the deputy as provided in |
13 | | this Section.
Such notice shall set forth: (i) a statement of |
14 | | election to be filed by
the deputy if the deputy wishes to |
15 | | continue such group insurance
coverage,
(ii) the amount of |
16 | | monthly premium, including a statement of the portion
of such |
17 | | monthly premium attributable to any dependents' coverage which |
18 | | the
deputy may elect, and (iii) instructions as to the return |
19 | | of the election
form to the insurance company issuing such |
20 | | policy. Election shall be made,
if at all, by returning the |
21 | | statement of election to the insurance company
by certified |
22 | | mail, return receipt requested, within 15 days after having
|
23 | | received it.
|
24 | | If the deputy elects to continue coverage, it shall be the |
25 | | obligation
of the deputy to pay the monthly premium directly to |
26 | | the municipality which
shall forward it to the insurance |
|
| | SB2071 Engrossed | - 6 - | LRB098 06454 OMW 36497 b |
|
|
1 | | company issuing the group insurance
policy, or as otherwise
|
2 | | directed by the insurance company; provided, however, that the |
3 | | deputy
shall be entitled to designate on the statement of |
4 | | election
required to be filed with the insurance company that |
5 | | the total
monthly premium, or such portion thereof as is not |
6 | | contributed by
a municipality, be deducted by the Illinois |
7 | | Municipal Retirement Fund
from the monthly pension payment |
8 | | otherwise payable
to or on behalf of the deputy pursuant to |
9 | | Article 7 of the Illinois Pension Code, and be remitted by such |
10 | | Fund to
the insurance company. The portion, if any, of the |
11 | | monthly premium
contributed by a municipality for such |
12 | | continued group insurance
coverage shall be paid by
the |
13 | | directly to the insurance company issuing the group insurance
|
14 | | policy, or as directed by the insurance company. Such continued
|
15 | | group insurance coverage shall relate back to the beginning of |
16 | | the deputy's
retirement or disability period.
|
17 | | The amendment, renewal or extension of any group insurance |
18 | | policy affected
by this Section shall be deemed to be the |
19 | | issuance of a new policy of insurance
for purposes of this |
20 | | Section.
|
21 | | In the event that a municipality makes a program of |
22 | | accident, health,
hospital or medical benefits available to its |
23 | | deputies through
self-insurance, or by participation in a pool |
24 | | or reciprocal insurer, or by
contract in a form other than a |
25 | | policy of group insurance with one or more
medical service |
26 | | plans, health care service corporations, health maintenance
|
|
| | SB2071 Engrossed | - 7 - | LRB098 06454 OMW 36497 b |
|
|
1 | | organizations, or any other professional corporations or plans |
2 | | under which
health care or reimbursement for the costs thereof |
3 | | is
provided, whether the cost of such benefits is borne by the |
4 | | municipality or
the deputies or both, such deputies and their |
5 | | surviving spouses shall have
the same right to elect continued |
6 | | coverage under such program of benefits
as they would have if |
7 | | such benefits were provided by a policy of group
accident and |
8 | | health insurance. In such cases, the notice of right to elect
|
9 | | continued coverage shall be sent by the municipality; the |
10 | | statement of
election shall be sent to the municipality; and |
11 | | references to the required
premium shall refer to that portion |
12 | | of the cost of such benefits which is not
borne by the |
13 | | municipality, either voluntarily or pursuant to the provisions
|
14 | | of a collective bargaining agreement. In the case of a |
15 | | municipality
providing such benefits through self-insurance or |
16 | | participation in a pool or
reciprocal insurer, the right to |
17 | | elect continued coverage which is provided
by this paragraph |
18 | | shall be implemented and made available to the deputies of
the |
19 | | municipality and qualifying surviving spouses not later than |
20 | | July 1, 1986.
|
21 | | The amendment, renewal or extension of any such contract in |
22 | | a form other
than a policy of group insurance policy shall be |
23 | | deemed the formation of a
new contract for the purposes of this |
24 | | Section.
|
25 | | This Section shall not limit the exercise of any conversion |
26 | | privileges
available under Section 367e.
|
|
| | SB2071 Engrossed | - 8 - | LRB098 06454 OMW 36497 b |
|
|
1 | | (Source: P.A. 90-655, eff. 7-30-98.)
|
2 | | (215 ILCS 5/367j) (from Ch. 73, par. 979j)
|
3 | | Sec. 367j. Municipal employee's continuance privilege.
|
4 | | (a) As used in this Section:
|
5 | | (1) The term "creditable service" shall have the |
6 | | meaning ascribed to it
by Section 7-113 of the Illinois |
7 | | Pension Code.
|
8 | | (2) The term "municipality" means any municipality, |
9 | | instrumentality,
or participating instrumentality (as |
10 | | those terms are defined in Sections
7-105, 7-107 and 7-108, |
11 | | respectively, of the Illinois Pension Code) that
|
12 | | participates in the Illinois Municipal Retirement Fund |
13 | | pursuant to Section
7-132 of the Illinois Pension Code.
|
14 | | (3) The term "employee" shall mean an employee as |
15 | | defined in Section
7-109 of the Illinois Pension Code, but |
16 | | does not include any person who is
a deputy as defined in |
17 | | Section 367h of this Code.
|
18 | | (4) The "retirement or disability period" of an |
19 | | employee means the period:
|
20 | | (A) which begins on the day the employee is removed |
21 | | from the
municipality payroll because of the |
22 | | occurrence of either of the following
events: (i) the |
23 | | employee retires from active service as an employee |
24 | | with
an attained age and accumulated creditable
|
25 | | service which together qualify the employee for |
|
| | SB2071 Engrossed | - 9 - | LRB098 06454 OMW 36497 b |
|
|
1 | | immediate receipt of
retirement pension benefits under |
2 | | Article 7 of the Illinois Pension Code,
or (ii) the |
3 | | employee's disability is established under Article 7 |
4 | | of the
Illinois Pension Code; and
|
5 | | (B) which ends on the first to occur of any of the |
6 | | following events:
(i) the employee's reinstatement or |
7 | | reentry into active service as
provided for under |
8 | | Article 7 of the Illinois Pension Code, (ii) the
|
9 | | employee's exercise of any refund option or acceptance |
10 | | of any separation
benefit available under Article 7 of |
11 | | the Illinois Pension Code, (iii) the
employee's loss |
12 | | pursuant to Section 7-219 of the Illinois Pension Code |
13 | | of
any benefits provided for in Article 7 of that Code, |
14 | | or (iv) the employee's
death or, if at the time of the |
15 | | employee's death the employee is survived
by a spouse |
16 | | who, in that capacity, is entitled to receive a |
17 | | surviving
spouse's monthly pension pursuant to Article |
18 | | 7 of the Illinois Pension
Code, the death or remarriage |
19 | | of that spouse.
|
20 | | (b) No policy of group accident and health insurance under |
21 | | which
employees of a municipality are insured for their |
22 | | individual benefit shall
be issued or delivered in this State |
23 | | to a municipality unless such group
policy provides for the |
24 | | election of continued group insurance coverage for
the |
25 | | retirement or disability period of each employee who is insured |
26 | | under
the provisions of the group policy on the day immediately |
|
| | SB2071 Engrossed | - 10 - | LRB098 06454 OMW 36497 b |
|
|
1 | | preceding the day
on which the retirement or disability period |
2 | | of such employee begins. So
long as any required premiums for |
3 | | continued group insurance coverage are
paid in accordance with |
4 | | the provisions of the group policy, an election
made pursuant |
5 | | to this Section shall provide continued group insurance
|
6 | | coverage for an employee throughout the retirement or |
7 | | disability period of
the employee and, unless the employee |
8 | | otherwise elects and subject to any
other provisions of the |
9 | | group policy which relate either to the provision
or to the |
10 | | termination of dependents' coverage and which are not
|
11 | | inconsistent with this Section, for any dependents of the |
12 | | employee who are
insured under the group policy on the day |
13 | | immediately preceding the day on
which the retirement or |
14 | | disability period of the employee begins; provided,
however, |
15 | | that when such continued group insurance coverage is in effect
|
16 | | with respect to an employee on the date of the employee's death |
17 | | but the
retirement or disability period of the employee does |
18 | | not end with the
employee's death, then the deceased employee's |
19 | | surviving spouse upon whose
death or remarriage such retirement |
20 | | or disability period will end shall be
entitled, without |
21 | | further election and upon payment of any required
premiums in |
22 | | accordance with the provisions of the group policy, to maintain
|
23 | | such continued group insurance coverage in effect until the end |
24 | | of the
retirement or disability period. Continued group |
25 | | insurance coverage shall
be provided in accordance with this |
26 | | Section at the same premium rate from
time to time charged for |
|
| | SB2071 Engrossed | - 11 - | LRB098 06454 OMW 36497 b |
|
|
1 | | equivalent coverage provided under the group
policy with |
2 | | respect to covered employees whose retirement or disability
|
3 | | period has not begun, and no distinction or discrimination in |
4 | | the amount or
rate of premiums or in any waiver of premium or |
5 | | other benefit provision
shall be made between continued group |
6 | | insurance coverage elected pursuant
to this Section and |
7 | | equivalent coverage provided to employees under the
group |
8 | | policy other than pursuant to the provisions of this Section;
|
9 | | provided that no municipality shall be required by reason of |
10 | | any provision
of this Section to pay any group insurance |
11 | | premium other than one that may
be negotiated in a collective |
12 | | bargaining agreement. Continuation is not required for an |
13 | | insured who becomes eligible for medicare. If the group policy
|
14 | | provides for a reduction in benefits and premium for insureds |
15 | | who become
eligible for medicare, such provision shall apply to |
16 | | persons electing
continued coverage under this Section.
|
17 | | Within 15 days of the beginning of the retirement or |
18 | | disability period of
any employee entitled to elect continued |
19 | | group insurance coverage under any
group policy affected by |
20 | | this Section, the municipality last employing such
employee |
21 | | shall give written notice of such beginning by certified mail,
|
22 | | return receipt requested, to the insurance company issuing such |
23 | | policy.
The notice shall include the employee's name and last |
24 | | known place of
residence and the beginning date of the |
25 | | employee's retirement or disability
period.
|
26 | | Within 15 days of the date of receipt of such notice from |
|
| | SB2071 Engrossed | - 12 - | LRB098 06454 OMW 36497 b |
|
|
1 | | the municipality,
the insurance company by certified mail, |
2 | | return receipt requested, shall
give written notice to the |
3 | | employee at the employee's last known place of
residence that |
4 | | coverage under the group policy may be continued for the
|
5 | | retirement or disability period of the employee as provided in |
6 | | this
Section. Such notice shall set forth: (i) a statement of |
7 | | election to be
filed by the employee if the employee wishes to |
8 | | continue such group
insurance coverage, (ii) the amount of |
9 | | monthly premium, including a
statement of the portion of such |
10 | | monthly premium attributable to any
dependents' coverage which |
11 | | the employee may elect, and (iii) instructions
as to the return |
12 | | of the election form to the insurance company issuing such
|
13 | | policy. Election shall be made, if at all, by returning the |
14 | | statement of
election to the insurance company by certified |
15 | | mail, return receipt
requested, within 15 days after having |
16 | | received it.
|
17 | | If the employee elects to continue coverage, it shall be |
18 | | the obligation
of the employee to pay the monthly premium |
19 | | directly to the municipality
which shall forward it to the |
20 | | insurance company issuing the group insurance
policy, or as |
21 | | otherwise directed by the insurance company; provided,
|
22 | | however, that the employee shall be entitled to designate on |
23 | | the statement
of election required to be filed with the |
24 | | insurance company that the total
monthly premium, or such |
25 | | portion thereof as is not contributed by a
municipality, be |
26 | | deducted by the Illinois Municipal Retirement Fund from
the |
|
| | SB2071 Engrossed | - 13 - | LRB098 06454 OMW 36497 b |
|
|
1 | | monthly pension payment otherwise payable to or on behalf of |
2 | | the
employee pursuant to Article 7 of the Illinois Pension |
3 | | Code, and be
remitted by such Fund to the insurance company. |
4 | | The portion, if any, of
the monthly premium contributed by a |
5 | | municipality for such continued group
insurance coverage shall |
6 | | be paid by the municipality directly to the
insurance company |
7 | | issuing the group insurance policy, or as directed by the
|
8 | | insurance company. Such continued group insurance coverage |
9 | | shall relate
back to the beginning of the employee's retirement |
10 | | or disability period.
|
11 | | The amendment, renewal or extension of any group insurance |
12 | | policy affected
by this Section shall be deemed to be the |
13 | | issuance of a new policy of insurance
for purposes of this |
14 | | Section.
|
15 | | (c) In the event that a municipality makes a program of |
16 | | accident,
health, hospital or medical benefits available to its |
17 | | employees through
self-insurance, or by participation in a pool |
18 | | or reciprocal insurer, or by
contract in a form other than a |
19 | | policy of group insurance with one or more
medical service |
20 | | plans, health care service corporations, health maintenance
|
21 | | organizations, or any other professional corporations or plans |
22 | | under which
health care or reimbursement for the costs thereof |
23 | | is provided, whether the
cost of such benefits is borne by the |
24 | | municipality or the employees or
both, such employees and their |
25 | | surviving spouses shall have the same
right to elect continued |
26 | | coverage under such program of benefits
as they would have if |
|
| | SB2071 Engrossed | - 14 - | LRB098 06454 OMW 36497 b |
|
|
1 | | such benefits were provided by a policy of group
accident and |
2 | | health insurance. In such cases, the notice of right to elect
|
3 | | continued coverage shall be sent by the municipality; the |
4 | | statement of
election shall be sent to the municipality; and |
5 | | references to the required
premium shall refer to that portion |
6 | | of the cost of such benefits which is not
borne by the |
7 | | municipality, either voluntarily or pursuant to the provisions
|
8 | | of a collective bargaining agreement. In the case of a |
9 | | municipality
providing such benefits through self-insurance or |
10 | | participation in a pool or
reciprocal insurer, the right to |
11 | | elect continued coverage which is provided
by this paragraph |
12 | | shall be implemented and made available to the employees
of the |
13 | | municipality and qualifying surviving spouses not later than |
14 | | July 1,
1991.
|
15 | | The amendment, renewal or extension of any such contract in |
16 | | a form other
than a policy of group insurance policy shall be |
17 | | deemed the formation of a
new contract for the purposes of this |
18 | | Section.
|
19 | | (d) This Section shall not limit the exercise of any |
20 | | conversion
privileges available under Section 367e.
|
21 | | (Source: P.A. 86-1444; 87-435.)
|