093_SB1701ham001
LRB093 02819 LRD 16506 a
1 AMENDMENT TO SENATE BILL 1701
2 AMENDMENT NO. . Amend Senate Bill 1701 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee benefits."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Pension Code is amended by
8 changing Sections 5-167.5, 6-142.2, 8-164.1, and 11-160.1 as
9 follows:
10 (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
11 Sec. 5-167.5. Payments to city Group health benefit.
12 (a) For the purposes of this Section, "city annuitant"
13 means a person receiving an age and service annuity, a
14 widow's annuity, a child's annuity, or a minimum annuity
15 under this Article as a direct result of previous employment
16 by the City of Chicago ("the city").
17 (b) The board shall pay to the city, on behalf of the
18 board's city annuitants who participate in any of the city's
19 health care plans, the following amounts:
20 (1) From July 1, 2003 through June 30, 2008, $85
21 per month for each such annuitant who is not eligible to
-2- LRB093 02819 LRD 16506 a
1 receive Medicare benefits and $55 per month for each such
2 annuitant who is eligible to receive Medicare benefits.
3 (2) From July 1, 2008 through June 30, 2013, $95
4 per month for each such annuitant who is not eligible to
5 receive Medicare benefits and $65 per month for each such
6 annuitant who is eligible to receive Medicare benefits.
7 The payments described in this subsection shall be paid
8 from the tax levy authorized under Section 5-168; such
9 amounts shall be credited to the reserve for group hospital
10 care and group medical and surgical plan benefits, and all
11 payments to the city required under this subsection shall be
12 charged against it.
13 (c) The city health care plans referred to in this
14 Section and the board's payments to the city under this
15 Section are not and shall not be construed to be pension or
16 retirement benefits for the purposes of Section 5 of Article
17 XIII of the Illinois Constitution of 1970.
18 (a) For the purposes of this Section: (1) "annuitant"
19 means a person receiving an age and service annuity, a prior
20 service annuity, a widow's annuity, a widow's prior service
21 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
22 by reason of previous employment by the City of Chicago
23 (hereinafter, in this Section, "the city"); (2) "Medicare
24 Plan annuitant" means an annuitant described in item (1) who
25 is eligible for Medicare benefits; and (3) "non-Medicare Plan
26 annuitant" means an annuitant described in item (1) who is
27 not eligible for Medicare benefits.
28 (b) The city shall offer group health benefits to
29 annuitants and their eligible dependents through June 30,
30 2003. The basic city health care plan available as of June
31 30, 1988 (hereinafter called the basic city plan) shall cease
32 to be a plan offered by the city, except as specified in
33 subparagraphs (4) and (5) below, and shall be closed to new
34 enrollment or transfer of coverage for any non-Medicare Plan
-3- LRB093 02819 LRD 16506 a
1 annuitant as of June 27, 1997. The city shall offer
2 non-Medicare Plan annuitants and their eligible dependents
3 the option of enrolling in its Annuitant Preferred Provider
4 Plan and may offer additional plans for any annuitant. The
5 city may amend, modify, or terminate any of its additional
6 plans at its sole discretion. If the city offers more than
7 one annuitant plan, the city shall allow annuitants to
8 convert coverage from one city annuitant plan to another,
9 except the basic city plan, during times designated by the
10 city, which periods of time shall occur at least annually.
11 For the period dating from June 27, 1997 through June 30,
12 2003, monthly premium rates may be increased for annuitants
13 during the time of their participation in non-Medicare plans,
14 except as provided in subparagraphs (1) through (4) of this
15 subsection.
16 (1) For non-Medicare Plan annuitants who retired
17 prior to January 1, 1988, the annuitant's share of
18 monthly premium for non-Medicare Plan coverage only shall
19 not exceed the highest premium rate chargeable under any
20 city non-Medicare Plan annuitant coverage as of December
21 1, 1996.
22 (2) For non-Medicare Plan annuitants who retire on
23 or after January 1, 1988, the annuitant's share of
24 monthly premium for non-Medicare Plan coverage only shall
25 be the rate in effect on December 1, 1996, with monthly
26 premium increases to take effect no sooner than April 1,
27 1998 at the lower of (i) the premium rate determined
28 pursuant to subsection (g) or (ii) 10% of the immediately
29 previous month's rate for similar coverage.
30 (3) In no event shall any non-Medicare Plan
31 annuitant's share of monthly premium for non-Medicare
32 Plan coverage exceed 10% of the annuitant's monthly
33 annuity.
34 (4) Non-Medicare Plan annuitants who are enrolled
-4- LRB093 02819 LRD 16506 a
1 in the basic city plan as of July 1, 1998 may remain in
2 the basic city plan, if they so choose, on the condition
3 that they are not entitled to the caps on rates set forth
4 in subparagraphs (1) through (3), and their premium rate
5 shall be the rate determined in accordance with
6 subsections (c) and (g).
7 (5) Medicare Plan annuitants who are currently
8 enrolled in the basic city plan for Medicare eligible
9 annuitants may remain in that plan, if they so choose,
10 through June 30, 2003. Annuitants shall not be allowed
11 to enroll in or transfer into the basic city plan for
12 Medicare eligible annuitants on or after July 1, 1999.
13 The city shall continue to offer annuitants a
14 supplemental Medicare Plan for Medicare eligible
15 annuitants through June 30, 2003, and the city may offer
16 additional plans to Medicare eligible annuitants in its
17 sole discretion. All Medicare Plan annuitant monthly
18 rates shall be determined in accordance with subsections
19 (c) and (g).
20 (c) The city shall pay 50% of the aggregated costs of
21 the claims or premiums, whichever is applicable, as
22 determined in accordance with subsection (g), of annuitants
23 and their dependents under all health care plans offered by
24 the city. The city may reduce its obligation by application
25 of price reductions obtained as a result of financial
26 arrangements with providers or plan administrators.
27 (d) From January 1, 1993 until June 30, 2003, the board
28 shall pay to the city on behalf of each of the board's
29 annuitants who chooses to participate in any of the city's
30 plans the following amounts: up to a maximum of $75 per month
31 for each such annuitant who is not qualified to receive
32 medicare benefits, and up to a maximum of $45 per month for
33 each such annuitant who is qualified to receive medicare
34 benefits.
-5- LRB093 02819 LRD 16506 a
1 The payments described in this subsection shall be paid
2 from the tax levy authorized under Section 5-168; such
3 amounts shall be credited to the reserve for group hospital
4 care and group medical and surgical plan benefits, and all
5 payments to the city required under this subsection shall be
6 charged against it.
7 (e) The city's obligations under subsections (b) and (c)
8 shall terminate on June 30, 2003, except with regard to
9 covered expenses incurred but not paid as of that date. This
10 subsection shall not affect other obligations that may be
11 imposed by law.
12 (f) The group coverage plans described in this Section
13 are not and shall not be construed to be pension or
14 retirement benefits for purposes of Section 5 of Article XIII
15 of the Illinois Constitution of 1970.
16 (g) For each annuitant plan offered by the city, the
17 aggregate cost of claims, as reflected in the claim records
18 of the plan administrator, shall be estimated by the city,
19 based upon a written determination by a qualified independent
20 actuary to be appointed and paid by the city and the board.
21 If the estimated annual cost for each annuitant plan offered
22 by the city is more than the estimated amount to be
23 contributed by the city for that plan pursuant to subsections
24 (b) and (c) during that year plus the estimated amounts to be
25 paid pursuant to subsection (d) and by the other pension
26 boards on behalf of other participating annuitants, the
27 difference shall be paid by all annuitants participating in
28 the plan, except as provided in subsection (b). The city,
29 based upon the determination of the independent actuary,
30 shall set the monthly amounts to be paid by the participating
31 annuitants. The board may deduct the amounts to be paid by
32 its annuitants from the participating annuitants' monthly
33 annuities.
34 If it is determined from the city's annual audit, or from
-6- LRB093 02819 LRD 16506 a
1 audited experience data, that the total amount paid by all
2 participating annuitants was more or less than the difference
3 between (1) the cost of providing the group health care
4 plans, and (2) the sum of the amount to be paid by the city
5 as determined under subsection (c) and the amounts paid by
6 all the pension boards, then the independent actuary and the
7 city shall account for the excess or shortfall in the next
8 year's payments by annuitants, except as provided in
9 subsection (b).
10 (h) An annuitant may elect to terminate coverage in a
11 plan at the end of any month, which election shall terminate
12 the annuitant's obligation to contribute toward payment of
13 the excess described in subsection (g).
14 (i) The city shall advise the board of all proposed
15 premium increases for health care at least 75 days prior to
16 the effective date of the change, and any increase shall be
17 prospective only.
18 (Source: P.A. 92-599, eff. 6-28-02.)
19 (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
20 Sec. 6-164.2. Payments to city Group health benefit.
21 (a) For the purposes of this Section, "city annuitant"
22 means a person receiving an age and service annuity, a
23 widow's annuity, a child's annuity, or a minimum annuity
24 under this Article as a direct result of previous employment
25 by the City of Chicago ("the city").
26 (b) The board shall pay to the city, on behalf of the
27 board's city annuitants who participate in any of the city's
28 health care plans, the following amounts:
29 (1) From July 1, 2003 through June 30, 2008, $85
30 per month for each such annuitant who is not eligible to
31 receive Medicare benefits and $55 per month for each such
32 annuitant who is eligible to receive Medicare benefits.
33 (2) From July 1, 2008 through June 30, 2013, $95
-7- LRB093 02819 LRD 16506 a
1 per month for each such annuitant who is not eligible to
2 receive Medicare benefits and $65 per month for each such
3 annuitant who is eligible to receive Medicare benefits.
4 The payments described in this subsection shall be paid
5 from the tax levy authorized under Section 6-165; such
6 amounts shall be credited to the reserve for group hospital
7 care and group medical and surgical plan benefits, and all
8 payments to the city required under this subsection shall be
9 charged against it.
10 (c) The city health care plans referred to in this
11 Section and the board's payments to the city under this
12 Section are not and shall not be construed to be pension or
13 retirement benefits for the purposes of Section 5 of Article
14 XIII of the Illinois Constitution of 1970.
15 (a) For the purposes of this Section: (1) "annuitant"
16 means a person receiving an age and service annuity, a prior
17 service annuity, a widow's annuity, a widow's prior service
18 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
19 by reason of previous employment by the City of Chicago
20 (hereinafter, in this Section, "the city"); (2) "Medicare
21 Plan annuitant" means an annuitant described in item (1) who
22 is eligible for Medicare benefits; and (3) "non-Medicare Plan
23 annuitant" means an annuitant described in item (1) who is
24 not eligible for Medicare benefits.
25 (b) The city shall offer group health benefits to
26 annuitants and their eligible dependents through June 30,
27 2003. The basic city health care plan available as of June
28 30, 1988 (hereinafter called the basic city plan) shall cease
29 to be a plan offered by the city, except as specified in
30 subparagraphs (4) and (5) below, and shall be closed to new
31 enrollment or transfer of coverage for any non-Medicare Plan
32 annuitant as of June 27, 1997. The city shall offer
33 non-Medicare Plan annuitants and their eligible dependents
34 the option of enrolling in its Annuitant Preferred Provider
-8- LRB093 02819 LRD 16506 a
1 Plan and may offer additional plans for any annuitant. The
2 city may amend, modify, or terminate any of its additional
3 plans at its sole discretion. If the city offers more than
4 one annuitant plan, the city shall allow annuitants to
5 convert coverage from one city annuitant plan to another,
6 except the basic city plan, during times designated by the
7 city, which periods of time shall occur at least annually.
8 For the period dating from June 27, 1997 through June 30,
9 2003, monthly premium rates may be increased for annuitants
10 during the time of their participation in non-Medicare plans,
11 except as provided in subparagraphs (1) through (4) of this
12 subsection.
13 (1) For non-Medicare Plan annuitants who retired
14 prior to January 1, 1988, the annuitant's share of
15 monthly premium for non-Medicare Plan coverage only shall
16 not exceed the highest premium rate chargeable under any
17 city non-Medicare Plan annuitant coverage as of December
18 1, 1996.
19 (2) For non-Medicare Plan annuitants who retire on
20 or after January 1, 1988, the annuitant's share of
21 monthly premium for non-Medicare Plan coverage only shall
22 be the rate in effect on December 1, 1996, with monthly
23 premium increases to take effect no sooner than April 1,
24 1998 at the lower of (i) the premium rate determined
25 pursuant to subsection (g) or (ii) 10% of the immediately
26 previous month's rate for similar coverage.
27 (3) In no event shall any non-Medicare Plan
28 annuitant's share of monthly premium for non-Medicare
29 Plan coverage exceed 10% of the annuitant's monthly
30 annuity.
31 (4) Non-Medicare Plan annuitants who are enrolled
32 in the basic city plan as of July 1, 1998 may remain in
33 the basic city plan, if they so choose, on the condition
34 that they are not entitled to the caps on rates set forth
-9- LRB093 02819 LRD 16506 a
1 in subparagraphs (1) through (3), and their premium rate
2 shall be the rate determined in accordance with
3 subsections (c) and (g).
4 (5) Medicare Plan annuitants who are currently
5 enrolled in the basic city plan for Medicare eligible
6 annuitants may remain in that plan, if they so choose,
7 through June 30, 2003. Annuitants shall not be allowed
8 to enroll in or transfer into the basic city plan for
9 Medicare eligible annuitants on or after July 1, 1999.
10 The city shall continue to offer annuitants a
11 supplemental Medicare Plan for Medicare eligible
12 annuitants through June 30, 2003, and the city may offer
13 additional plans to Medicare eligible annuitants in its
14 sole discretion. All Medicare Plan annuitant monthly
15 rates shall be determined in accordance with subsections
16 (c) and (g).
17 (c) The city shall pay 50% of the aggregated costs of
18 the claims or premiums, whichever is applicable, as
19 determined in accordance with subsection (g), of annuitants
20 and their dependents under all health care plans offered by
21 the city. The city may reduce its obligation by application
22 of price reductions obtained as a result of financial
23 arrangements with providers or plan administrators.
24 (d) From January 1, 1993 until June 30, 2003, the board
25 shall pay to the city on behalf of each of the board's
26 annuitants who chooses to participate in any of the city's
27 plans the following amounts: up to a maximum of $75 per month
28 for each such annuitant who is not qualified to receive
29 medicare benefits, and up to a maximum of $45 per month for
30 each such annuitant who is qualified to receive medicare
31 benefits.
32 The payments described in this subsection shall be paid
33 from the tax levy authorized under Section 6-165; such
34 amounts shall be credited to the reserve for group hospital
-10- LRB093 02819 LRD 16506 a
1 care and group medical and surgical plan benefits, and all
2 payments to the city required under this subsection shall be
3 charged against it.
4 (e) The city's obligations under subsections (b) and (c)
5 shall terminate on June 30, 2003, except with regard to
6 covered expenses incurred but not paid as of that date. This
7 subsection shall not affect other obligations that may be
8 imposed by law.
9 (f) The group coverage plans described in this Section
10 are not and shall not be construed to be pension or
11 retirement benefits for purposes of Section 5 of Article XIII
12 of the Illinois Constitution of 1970.
13 (g) For each annuitant plan offered by the city, the
14 aggregate cost of claims, as reflected in the claim records
15 of the plan administrator, shall be estimated by the city,
16 based upon a written determination by a qualified independent
17 actuary to be appointed and paid by the city and the board.
18 If the estimated annual cost for each annuitant plan offered
19 by the city is more than the estimated amount to be
20 contributed by the city for that plan pursuant to subsections
21 (b) and (c) during that year plus the estimated amounts to be
22 paid pursuant to subsection (d) and by the other pension
23 boards on behalf of other participating annuitants, the
24 difference shall be paid by all annuitants participating in
25 the plan, except as provided in subsection (b). The city,
26 based upon the determination of the independent actuary,
27 shall set the monthly amounts to be paid by the participating
28 annuitants. The board may deduct the amounts to be paid by
29 its annuitants from the participating annuitants' monthly
30 annuities.
31 If it is determined from the city's annual audit, or from
32 audited experience data, that the total amount paid by all
33 participating annuitants was more or less than the difference
34 between (1) the cost of providing the group health care
-11- LRB093 02819 LRD 16506 a
1 plans, and (2) the sum of the amount to be paid by the city
2 as determined under subsection (c) and the amounts paid by
3 all the pension boards, then the independent actuary and the
4 city shall account for the excess or shortfall in the next
5 year's payments by annuitants, except as provided in
6 subsection (b).
7 (h) An annuitant may elect to terminate coverage in a
8 plan at the end of any month, which election shall terminate
9 the annuitant's obligation to contribute toward payment of
10 the excess described in subsection (g).
11 (i) The city shall advise the board of all proposed
12 premium increases for health care at least 75 days prior to
13 the effective date of the change, and any increase shall be
14 prospective only.
15 (Source: P.A. 92-599, eff. 6-28-02.)
16 (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
17 Sec. 8-164.1. Payments to city Group health benefit.
18 (a) For the purposes of this Section, "city annuitant"
19 means a person receiving an age and service annuity, a
20 widow's annuity, a child's annuity, or a minimum annuity
21 under this Article as a direct result of previous employment
22 by the City of Chicago ("the city").
23 (b) The board shall pay to the city, on behalf of the
24 board's city annuitants who participate in any of the city's
25 health care plans, the following amounts:
26 (1) From July 1, 2003 through June 30, 2008, $85
27 per month for each such annuitant who is not eligible to
28 receive Medicare benefits and $55 per month for each such
29 annuitant who is eligible to receive Medicare benefits.
30 (2) From July 1, 2008 through June 30, 2013, $95
31 per month for each such annuitant who is not eligible to
32 receive Medicare benefits and $65 per month for each such
33 annuitant who is eligible to receive Medicare benefits.
-12- LRB093 02819 LRD 16506 a
1 The payments described in this subsection shall be paid
2 from the tax levy authorized under Section 8-173; such
3 amounts shall be credited to the reserve for group hospital
4 care and group medical and surgical plan benefits, and all
5 payments to the city required under this subsection shall be
6 charged against it.
7 (c) The city health care plans referred to in this
8 Section and the board's payments to the city under this
9 Section are not and shall not be construed to be pension or
10 retirement benefits for the purposes of Section 5 of Article
11 XIII of the Illinois Constitution of 1970.
12 (a) For the purposes of this Section: (1) "annuitant"
13 means a person receiving an age and service annuity, a prior
14 service annuity, a widow's annuity, a widow's prior service
15 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
16 by reason of previous employment by the City of Chicago
17 (hereinafter, in this Section, "the city"); (2) "Medicare
18 Plan annuitant" means an annuitant described in item (1) who
19 is eligible for Medicare benefits; and (3) "non-Medicare Plan
20 annuitant" means an annuitant described in item (1) who is
21 not eligible for Medicare benefits.
22 (b) The city shall offer group health benefits to
23 annuitants and their eligible dependents through June 30,
24 2003. The basic city health care plan available as of June
25 30, 1988 (hereinafter called the basic city plan) shall cease
26 to be a plan offered by the city, except as specified in
27 subparagraphs (4) and (5) below, and shall be closed to new
28 enrollment or transfer of coverage for any non-Medicare Plan
29 annuitant as of June 27, 1997. The city shall offer
30 non-Medicare Plan annuitants and their eligible dependents
31 the option of enrolling in its Annuitant Preferred Provider
32 Plan and may offer additional plans for any annuitant. The
33 city may amend, modify, or terminate any of its additional
34 plans at its sole discretion. If the city offers more than
-13- LRB093 02819 LRD 16506 a
1 one annuitant plan, the city shall allow annuitants to
2 convert coverage from one city annuitant plan to another,
3 except the basic city plan, during times designated by the
4 city, which periods of time shall occur at least annually.
5 For the period dating from June 27, 1997 through June 30,
6 2003, monthly premium rates may be increased for annuitants
7 during the time of their participation in non-Medicare plans,
8 except as provided in subparagraphs (1) through (4) of this
9 subsection.
10 (1) For non-Medicare Plan annuitants who retired
11 prior to January 1, 1988, the annuitant's share of
12 monthly premium for non-Medicare Plan coverage only shall
13 not exceed the highest premium rate chargeable under any
14 city non-Medicare Plan annuitant coverage as of December
15 1, 1996.
16 (2) For non-Medicare Plan annuitants who retire on
17 or after January 1, 1988, the annuitant's share of
18 monthly premium for non-Medicare Plan coverage only shall
19 be the rate in effect on December 1, 1996, with monthly
20 premium increases to take effect no sooner than April 1,
21 1998 at the lower of (i) the premium rate determined
22 pursuant to subsection (g) or (ii) 10% of the immediately
23 previous month's rate for similar coverage.
24 (3) In no event shall any non-Medicare Plan
25 annuitant's share of monthly premium for non-Medicare
26 Plan coverage exceed 10% of the annuitant's monthly
27 annuity.
28 (4) Non-Medicare Plan annuitants who are enrolled
29 in the basic city plan as of July 1, 1998 may remain in
30 the basic city plan, if they so choose, on the condition
31 that they are not entitled to the caps on rates set forth
32 in subparagraphs (1) through (3), and their premium rate
33 shall be the rate determined in accordance with
34 subsections (c) and (g).
-14- LRB093 02819 LRD 16506 a
1 (5) Medicare Plan annuitants who are currently
2 enrolled in the basic city plan for Medicare eligible
3 annuitants may remain in that plan, if they so choose,
4 through June 30, 2003. Annuitants shall not be allowed
5 to enroll in or transfer into the basic city plan for
6 Medicare eligible annuitants on or after July 1, 1999.
7 The city shall continue to offer annuitants a
8 supplemental Medicare Plan for Medicare eligible
9 annuitants through June 30, 2003, and the city may offer
10 additional plans to Medicare eligible annuitants in its
11 sole discretion. All Medicare Plan annuitant monthly
12 rates shall be determined in accordance with subsections
13 (c) and (g).
14 (c) The city shall pay 50% of the aggregated costs of
15 the claims or premiums, whichever is applicable, as
16 determined in accordance with subsection (g), of annuitants
17 and their dependents under all health care plans offered by
18 the city. The city may reduce its obligation by application
19 of price reductions obtained as a result of financial
20 arrangements with providers or plan administrators.
21 (d) From January 1, 1993 until June 30, 2003, the board
22 shall pay to the city on behalf of each of the board's
23 annuitants who chooses to participate in any of the city's
24 plans the following amounts: up to a maximum of $75 per month
25 for each such annuitant who is not qualified to receive
26 medicare benefits, and up to a maximum of $45 per month for
27 each such annuitant who is qualified to receive medicare
28 benefits.
29 Commencing on August 23, 1989, the board is authorized to
30 pay to the board of education on behalf of each person who
31 chooses to participate in the board of education's plan the
32 amounts specified in this subsection (d) during the years
33 indicated. For the period January 1, 1988 through August 23,
34 1989, the board shall pay to the board of education
-15- LRB093 02819 LRD 16506 a
1 annuitants who participate in the board of education's health
2 benefits plan for annuitants the following amounts: $10 per
3 month to each annuitant who is not qualified to receive
4 medicare benefits, and $14 per month to each annuitant who is
5 qualified to receive medicare benefits.
6 The payments described in this subsection shall be paid
7 from the tax levy authorized under Section 8-189; such
8 amounts shall be credited to the reserve for group hospital
9 care and group medical and surgical plan benefits, and all
10 payments to the city required under this subsection shall be
11 charged against it.
12 (e) The city's obligations under subsections (b) and (c)
13 shall terminate on June 30, 2003, except with regard to
14 covered expenses incurred but not paid as of that date. This
15 subsection shall not affect other obligations that may be
16 imposed by law.
17 (f) The group coverage plans described in this Section
18 are not and shall not be construed to be pension or
19 retirement benefits for purposes of Section 5 of Article XIII
20 of the Illinois Constitution of 1970.
21 (g) For each annuitant plan offered by the city, the
22 aggregate cost of claims, as reflected in the claim records
23 of the plan administrator, shall be estimated by the city,
24 based upon a written determination by a qualified independent
25 actuary to be appointed and paid by the city and the board.
26 If the estimated annual cost for each annuitant plan offered
27 by the city is more than the estimated amount to be
28 contributed by the city for that plan pursuant to subsections
29 (b) and (c) during that year plus the estimated amounts to be
30 paid pursuant to subsection (d) and by the other pension
31 boards on behalf of other participating annuitants, the
32 difference shall be paid by all annuitants participating in
33 the plan, except as provided in subsection (b). The city,
34 based upon the determination of the independent actuary,
-16- LRB093 02819 LRD 16506 a
1 shall set the monthly amounts to be paid by the participating
2 annuitants. The board may deduct the amounts to be paid by
3 its annuitants from the participating annuitants' monthly
4 annuities.
5 If it is determined from the city's annual audit, or from
6 audited experience data, that the total amount paid by all
7 participating annuitants was more or less than the difference
8 between (1) the cost of providing the group health care
9 plans, and (2) the sum of the amount to be paid by the city
10 as determined under subsection (c) and the amounts paid by
11 all the pension boards, then the independent actuary and the
12 city shall account for the excess or shortfall in the next
13 year's payments by annuitants, except as provided in
14 subsection (b).
15 (h) An annuitant may elect to terminate coverage in a
16 plan at the end of any month, which election shall terminate
17 the annuitant's obligation to contribute toward payment of
18 the excess described in subsection (g).
19 (i) The city shall advise the board of all proposed
20 premium increases for health care at least 75 days prior to
21 the effective date of the change, and any increase shall be
22 prospective only.
23 (Source: P.A. 92-599, eff. 6-28-02.)
24 (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
25 Sec. 11-160.1. Payments to city Group health benefit.
26 (a) For the purposes of this Section, "city annuitant"
27 means a person receiving an age and service annuity, a
28 widow's annuity, a child's annuity, or a minimum annuity
29 under this Article as a direct result of previous employment
30 by the City of Chicago ("the city").
31 (b) The board shall pay to the city, on behalf of the
32 board's city annuitants who participate in any of the city's
33 health care plans, the following amounts:
-17- LRB093 02819 LRD 16506 a
1 (1) From July 1, 2003 through June 30, 2008, $85
2 per month for each such annuitant who is not eligible to
3 receive Medicare benefits and $55 per month for each such
4 annuitant who is eligible to receive Medicare benefits.
5 (2) From July 1, 2008 through June 30, 2013, $95
6 per month for each such annuitant who is not eligible to
7 receive Medicare benefits and $65 per month for each such
8 annuitant who is eligible to receive Medicare benefits.
9 The payments described in this subsection shall be paid
10 from the tax levy authorized under Section 11-169; such
11 amounts shall be credited to the reserve for group hospital
12 care and group medical and surgical plan benefits, and all
13 payments to the city required under this subsection shall be
14 charged against it.
15 (c) The city health care plans referred to in this
16 Section and the board's payments to the city under this
17 Section are not and shall not be construed to be pension or
18 retirement benefits for the purposes of Section 5 of Article
19 XIII of the Illinois Constitution of 1970.
20 (a) For the purposes of this Section: (1) "annuitant"
21 means a person receiving an age and service annuity, a prior
22 service annuity, a widow's annuity, a widow's prior service
23 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
24 by reason of previous employment by the City of Chicago
25 (hereinafter, in this Section, "the city"); (2) "Medicare
26 Plan annuitant" means an annuitant described in item (1) who
27 is eligible for Medicare benefits; and (3) "non-Medicare Plan
28 annuitant" means an annuitant described in item (1) who is
29 not eligible for Medicare benefits.
30 (b) The city shall offer group health benefits to
31 annuitants and their eligible dependents through June 30,
32 2003. The basic city health care plan available as of June
33 30, 1988 (hereinafter called the basic city plan) shall cease
34 to be a plan offered by the city, except as specified in
-18- LRB093 02819 LRD 16506 a
1 subparagraphs (4) and (5) below, and shall be closed to new
2 enrollment or transfer of coverage for any non-Medicare Plan
3 annuitant as of June 27, 1997. The city shall offer
4 non-Medicare Plan annuitants and their eligible dependents
5 the option of enrolling in its Annuitant Preferred Provider
6 Plan and may offer additional plans for any annuitant. The
7 city may amend, modify, or terminate any of its additional
8 plans at its sole discretion. If the city offers more than
9 one annuitant plan, the city shall allow annuitants to
10 convert coverage from one city annuitant plan to another,
11 except the basic city plan, during times designated by the
12 city, which periods of time shall occur at least annually.
13 For the period dating from June 27, 1997 through June 30,
14 2003, monthly premium rates may be increased for annuitants
15 during the time of their participation in non-Medicare plans,
16 except as provided in subparagraphs (1) through (4) of this
17 subsection.
18 (1) For non-Medicare Plan annuitants who retired
19 prior to January 1, 1988, the annuitant's share of
20 monthly premium for non-Medicare Plan coverage only shall
21 not exceed the highest premium rate chargeable under any
22 city non-Medicare Plan annuitant coverage as of December
23 1, 1996.
24 (2) For non-Medicare Plan annuitants who retire on
25 or after January 1, 1988, the annuitant's share of
26 monthly premium for non-Medicare Plan coverage only shall
27 be the rate in effect on December 1, 1996, with monthly
28 premium increases to take effect no sooner than April 1,
29 1998 at the lower of (i) the premium rate determined
30 pursuant to subsection (g) or (ii) 10% of the immediately
31 previous month's rate for similar coverage.
32 (3) In no event shall any non-Medicare Plan
33 annuitant's share of monthly premium for non-Medicare
34 Plan coverage exceed 10% of the annuitant's monthly
-19- LRB093 02819 LRD 16506 a
1 annuity.
2 (4) Non-Medicare Plan annuitants who are enrolled
3 in the basic city plan as of July 1, 1998 may remain in
4 the basic city plan, if they so choose, on the condition
5 that they are not entitled to the caps on rates set forth
6 in subparagraphs (1) through (3), and their premium rate
7 shall be the rate determined in accordance with
8 subsections (c) and (g).
9 (5) Medicare Plan annuitants who are currently
10 enrolled in the basic city plan for Medicare eligible
11 annuitants may remain in that plan, if they so choose,
12 through June 30, 2003. Annuitants shall not be allowed
13 to enroll in or transfer into the basic city plan for
14 Medicare eligible annuitants on or after July 1, 1999.
15 The city shall continue to offer annuitants a
16 supplemental Medicare Plan for Medicare eligible
17 annuitants through June 30, 2003, and the city may offer
18 additional plans to Medicare eligible annuitants in its
19 sole discretion. All Medicare Plan annuitant monthly
20 rates shall be determined in accordance with subsections
21 (c) and (g).
22 (c) The city shall pay 50% of the aggregated costs of
23 the claims or premiums, whichever is applicable, as
24 determined in accordance with subsection (g), of annuitants
25 and their dependents under all health care plans offered by
26 the city. The city may reduce its obligation by application
27 of price reductions obtained as a result of financial
28 arrangements with providers or plan administrators.
29 (d) From January 1, 1993 until June 30, 2003, the board
30 shall pay to the city on behalf of each of the board's
31 annuitants who chooses to participate in any of the city's
32 plans the following amounts: up to a maximum of $75 per month
33 for each such annuitant who is not qualified to receive
34 medicare benefits, and up to a maximum of $45 per month for
-20- LRB093 02819 LRD 16506 a
1 each such annuitant who is qualified to receive medicare
2 benefits.
3 The payments described in this subsection shall be paid
4 from the tax levy authorized under Section 11-178; such
5 amounts shall be credited to the reserve for group hospital
6 care and group medical and surgical plan benefits, and all
7 payments to the city required under this subsection shall be
8 charged against it.
9 (e) The city's obligations under subsections (b) and (c)
10 shall terminate on June 30, 2003, except with regard to
11 covered expenses incurred but not paid as of that date. This
12 subsection shall not affect other obligations that may be
13 imposed by law.
14 (f) The group coverage plans described in this Section
15 are not and shall not be construed to be pension or
16 retirement benefits for purposes of Section 5 of Article XIII
17 of the Illinois Constitution of 1970.
18 (g) For each annuitant plan offered by the city, the
19 aggregate cost of claims, as reflected in the claim records
20 of the plan administrator, shall be estimated by the city,
21 based upon a written determination by a qualified independent
22 actuary to be appointed and paid by the city and the board.
23 If the estimated annual cost for each annuitant plan offered
24 by the city is more than the estimated amount to be
25 contributed by the city for that plan pursuant to subsections
26 (b) and (c) during that year plus the estimated amounts to be
27 paid pursuant to subsection (d) and by the other pension
28 boards on behalf of other participating annuitants, the
29 difference shall be paid by all annuitants participating in
30 the plan, except as provided in subsection (b). The city,
31 based upon the determination of the independent actuary,
32 shall set the monthly amounts to be paid by the participating
33 annuitants. The board may deduct the amounts to be paid by
34 its annuitants from the participating annuitants' monthly
-21- LRB093 02819 LRD 16506 a
1 annuities.
2 If it is determined from the city's annual audit, or from
3 audited experience data, that the total amount paid by all
4 participating annuitants was more or less than the difference
5 between (1) the cost of providing the group health care
6 plans, and (2) the sum of the amount to be paid by the city
7 as determined under subsection (c) and the amounts paid by
8 all the pension boards, then the independent actuary and the
9 city shall account for the excess or shortfall in the next
10 year's payments by annuitants, except as provided in
11 subsection (b).
12 (h) An annuitant may elect to terminate coverage in a
13 plan at the end of any month, which election shall terminate
14 the annuitant's obligation to contribute toward payment of
15 the excess described in subsection (g).
16 (i) The city shall advise the board of all proposed
17 premium increases for health care at least 75 days prior to
18 the effective date of the change, and any increase shall be
19 prospective only.
20 (Source: P.A. 92-599, eff. 6-28-02.)
21 Section 90. The State Mandates Act is amended by adding
22 Section 8.27 as follows:
23 (30 ILCS 805/8.27 new)
24 Sec. 8.27. Exempt mandate. Notwithstanding Sections 6
25 and 8 of this Act, no reimbursement by the State is required
26 for the implementation of any mandate created by this
27 amendatory Act of the 93rd General Assembly.
28 Section 99. Effective date. This Act takes effect July
29 1, 2003.".