95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB3612

 

Introduced 2/28/2007, by Rep. JoAnn D. Osmond

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/14a.5

    Amends the State Finance Act. Provides that in addition to the lump sum payment incentive program provided to State employees who terminate employment with the State, the program may also provide for payment to participants or their health benefit coverage providers of an amount representing the net cost to the participating employee of his or her health benefit coverage under the State Employees Group Insurance Act of 1971 or applicable COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) insurance continuation provisions for the life of the participant (now, only up to 6 months immediately following termination of State service). Deletes a provision concerning the maximum pay out to State employees under this program.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning insurance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The State Finance Act is amended by changing
5 Section 14a.5 as follows:
 
6     (30 ILCS 105/14a.5)
7     Sec. 14a.5. Maximum incentive payments for early
8 termination of State service.
9     (a) The Department of Central Management Services shall
10 create, adopt by emergency rulemaking under the Illinois
11 Administrative Procedure Act through the Joint Committee on
12 Administrative Rules by October 1, 2004, and administer a
13 program of incentive payments for early termination of State
14 service. The program shall provide for the payment of a lump
15 sum incentive to certain persons who terminate State employment
16 on or after November 1, 2004 but on or before December 31,
17 2004. The lump sum payment to any individual under the program
18 shall not exceed 25% of final monthly rate of pay for each
19 completed year of State employment, nor shall it exceed the
20 compensation earned by the individual during the 6 months
21 immediately preceding his or her termination from State
22 service, and is payable out of the personal services
23 appropriation from which the employee's salary is paid. The

 

 

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1 rules of the program may limit the number of individuals listed
2 under Section 14-108.5(b)(1) of the Illinois Pension Code who
3 may participate in the program and shall specify how the lump
4 sum amount will be determined and vouchered; provided, however,
5 that all employees within the same title shall be provided lump
6 sum amounts on the same terms, varying only due to their time
7 of State service. The director or other head of a department
8 shall limit the number of individuals listed under Section
9 14-108.5(b)(2) of the Illinois Pension Code who may participate
10 in the program and shall specify the amount of the lump sum and
11 how the lump sum amount will be determined and vouchered.
12     (b) In addition to the lump sum payment provided under
13 subsection (a), the program may also provide for payment to
14 participants or their health benefit coverage providers of an
15 amount representing the net cost to the participating employee
16 of his or her health benefit coverage under the State Employees
17 Group Insurance Act of 1971 or applicable COBRA (Consolidated
18 Omnibus Budget Reconciliation Act of 1985) insurance
19 continuation provisions for the life of the participant up to 6
20 months immediately following termination of State service. The
21 amount payable to any participant under this subsection shall
22 not exceed $3,600 and is payable out of the personal services
23 appropriation from which the employee's salary is paid. The
24 program rules shall specify how the amount payable under this
25 subsection will be determined and vouchered.
26     (c) The program authorized under this Section applies only

 

 

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1 to a person who (1) was an active employee of the State of
2 Illinois on any day during June 2004 in a position listed in
3 subsection (b) of Section 14-108.5 of the Illinois Pension Code
4 and was continuously employed in a position listed in
5 subsection (b) of Section 14-108.5 of the Illinois Pension Code
6 on and after January 1, 2004, (2) applies in writing to the
7 Department of Central Management Services, in the case of a
8 person listed under Section 14-108.5(b)(1) of the Illinois
9 Pension Code, or to the director or other head of the
10 department at which he or she is employed, in the case of a
11 person listed under Section 14-108.5(b)(2) of the Illinois
12 Pension Code, on or before October 31, 2004, (3) does not
13 accept an alternative retirement cancellation payment under
14 Section 14-108.5 of the Illinois Pension Code, and (4)
15 terminates his or her State employment on or before December
16 31, 2004.
17     (d) A participant in the program who returns to State
18 employment (other than as an elected official or as a temporary
19 employee for not more than 75 days per calendar year) thereby
20 forfeits the incentive payments received under the program and
21 must repay those amounts to the Department of Central
22 Management Services, in the case of a person listed under
23 Section 14-108.5(b)(1) of the Illinois Pension Code, or to the
24 department at which he or she is employed, in the case of a
25 person listed under Section 14-108.5(b)(2) of the Illinois
26 Pension Code, within 60 days after his or her return to State

 

 

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1 employment.
2 (Source: P.A. 93-839, eff. 7-30-04.)