95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0164

 

Introduced 1/31/2007, by Sen. Iris Y. Martinez

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/3   from Ch. 127, par. 523
5 ILCS 375/6.9
5 ILCS 375/6.10

    Amends the State Employees Group Insurance Act of 1971. Removes the prohibition against participation by community college districts subject to Article VII of the Public Community College Act and their retired employees. Effective July 1, 2007.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The State Employees Group Insurance Act of 1971
5 is amended by changing Sections 3, 6.9, and 6.10 as follows:
 
6     (5 ILCS 375/3)  (from Ch. 127, par. 523)
7     Sec. 3. Definitions. Unless the context otherwise
8 requires, the following words and phrases as used in this Act
9 shall have the following meanings. The Department may define
10 these and other words and phrases separately for the purpose of
11 implementing specific programs providing benefits under this
12 Act.
13     (a) "Administrative service organization" means any
14 person, firm or corporation experienced in the handling of
15 claims which is fully qualified, financially sound and capable
16 of meeting the service requirements of a contract of
17 administration executed with the Department.
18     (b) "Annuitant" means (1) an employee who retires, or has
19 retired, on or after January 1, 1966 on an immediate annuity
20 under the provisions of Articles 2, 14 (including an employee
21 who has elected to receive an alternative retirement
22 cancellation payment under Section 14-108.5 of the Illinois
23 Pension Code in lieu of an annuity), 15 (including an employee

 

 

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1 who has retired under the optional retirement program
2 established under Section 15-158.2), paragraphs (2), (3), or
3 (5) of Section 16-106, or Article 18 of the Illinois Pension
4 Code; (2) any person who was receiving group insurance coverage
5 under this Act as of March 31, 1978 by reason of his status as
6 an annuitant, even though the annuity in relation to which such
7 coverage was provided is a proportional annuity based on less
8 than the minimum period of service required for a retirement
9 annuity in the system involved; (3) any person not otherwise
10 covered by this Act who has retired as a participating member
11 under Article 2 of the Illinois Pension Code but is ineligible
12 for the retirement annuity under Section 2-119 of the Illinois
13 Pension Code; (4) the spouse of any person who is receiving a
14 retirement annuity under Article 18 of the Illinois Pension
15 Code and who is covered under a group health insurance program
16 sponsored by a governmental employer other than the State of
17 Illinois and who has irrevocably elected to waive his or her
18 coverage under this Act and to have his or her spouse
19 considered as the "annuitant" under this Act and not as a
20 "dependent"; or (5) an employee who retires, or has retired,
21 from a qualified position, as determined according to rules
22 promulgated by the Director, under a qualified local
23 government, a qualified rehabilitation facility, a qualified
24 domestic violence shelter or service, or a qualified child
25 advocacy center. (For definition of "retired employee", see (p)
26 post).

 

 

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1     (b-5) "New SERS annuitant" means a person who, on or after
2 January 1, 1998, becomes an annuitant, as defined in subsection
3 (b), by virtue of beginning to receive a retirement annuity
4 under Article 14 of the Illinois Pension Code (including an
5 employee who has elected to receive an alternative retirement
6 cancellation payment under Section 14-108.5 of that Code in
7 lieu of an annuity), and is eligible to participate in the
8 basic program of group health benefits provided for annuitants
9 under this Act.
10     (b-6) "New SURS annuitant" means a person who (1) on or
11 after January 1, 1998, becomes an annuitant, as defined in
12 subsection (b), by virtue of beginning to receive a retirement
13 annuity under Article 15 of the Illinois Pension Code, (2) has
14 not made the election authorized under Section 15-135.1 of the
15 Illinois Pension Code, and (3) is eligible to participate in
16 the basic program of group health benefits provided for
17 annuitants under this Act.
18     (b-7) "New TRS State annuitant" means a person who, on or
19 after July 1, 1998, becomes an annuitant, as defined in
20 subsection (b), by virtue of beginning to receive a retirement
21 annuity under Article 16 of the Illinois Pension Code based on
22 service as a teacher as defined in paragraph (2), (3), or (5)
23 of Section 16-106 of that Code, and is eligible to participate
24 in the basic program of group health benefits provided for
25 annuitants under this Act.
26     (c) "Carrier" means (1) an insurance company, a corporation

 

 

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1 organized under the Limited Health Service Organization Act or
2 the Voluntary Health Services Plan Act, a partnership, or other
3 nongovernmental organization, which is authorized to do group
4 life or group health insurance business in Illinois, or (2) the
5 State of Illinois as a self-insurer.
6     (d) "Compensation" means salary or wages payable on a
7 regular payroll by the State Treasurer on a warrant of the
8 State Comptroller out of any State, trust or federal fund, or
9 by the Governor of the State through a disbursing officer of
10 the State out of a trust or out of federal funds, or by any
11 Department out of State, trust, federal or other funds held by
12 the State Treasurer or the Department, to any person for
13 personal services currently performed, and ordinary or
14 accidental disability benefits under Articles 2, 14, 15
15 (including ordinary or accidental disability benefits under
16 the optional retirement program established under Section
17 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
18 Article 18 of the Illinois Pension Code, for disability
19 incurred after January 1, 1966, or benefits payable under the
20 Workers' Compensation or Occupational Diseases Act or benefits
21 payable under a sick pay plan established in accordance with
22 Section 36 of the State Finance Act. "Compensation" also means
23 salary or wages paid to an employee of any qualified local
24 government, qualified rehabilitation facility, qualified
25 domestic violence shelter or service, or qualified child
26 advocacy center.

 

 

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1     (e) "Commission" means the State Employees Group Insurance
2 Advisory Commission authorized by this Act. Commencing July 1,
3 1984, "Commission" as used in this Act means the Commission on
4 Government Forecasting and Accountability as established by
5 the Legislative Commission Reorganization Act of 1984.
6     (f) "Contributory", when referred to as contributory
7 coverage, shall mean optional coverages or benefits elected by
8 the member toward the cost of which such member makes
9 contribution, or which are funded in whole or in part through
10 the acceptance of a reduction in earnings or the foregoing of
11 an increase in earnings by an employee, as distinguished from
12 noncontributory coverage or benefits which are paid entirely by
13 the State of Illinois without reduction of the member's salary.
14     (g) "Department" means any department, institution, board,
15 commission, officer, court or any agency of the State
16 government receiving appropriations and having power to
17 certify payrolls to the Comptroller authorizing payments of
18 salary and wages against such appropriations as are made by the
19 General Assembly from any State fund, or against trust funds
20 held by the State Treasurer and includes boards of trustees of
21 the retirement systems created by Articles 2, 14, 15, 16 and 18
22 of the Illinois Pension Code. "Department" also includes the
23 Illinois Comprehensive Health Insurance Board, the Board of
24 Examiners established under the Illinois Public Accounting
25 Act, and the Illinois Finance Authority.
26     (h) "Dependent", when the term is used in the context of

 

 

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1 the health and life plan, means a member's spouse and any
2 unmarried child (1) from birth to age 19 including an adopted
3 child, a child who lives with the member from the time of the
4 filing of a petition for adoption until entry of an order of
5 adoption, a stepchild or recognized child who lives with the
6 member in a parent-child relationship, or a child who lives
7 with the member if such member is a court appointed guardian of
8 the child, or (2) age 19 to 23 enrolled as a full-time student
9 in any accredited school, financially dependent upon the
10 member, and eligible to be claimed as a dependent for income
11 tax purposes, or (3) age 19 or over who is mentally or
12 physically handicapped. For the purposes of item (2), an
13 unmarried child age 19 to 23 who is a member of the United
14 States Armed Services, including the Illinois National Guard,
15 and is mobilized to active duty shall qualify as a dependent
16 beyond the age of 23 and until the age of 25 and while a
17 full-time student for the amount of time spent on active duty
18 between the ages of 19 and 23. The individual attempting to
19 qualify for this additional time must submit written
20 documentation of active duty service to the Director. The
21 changes made by this amendatory Act of the 94th General
22 Assembly apply only to individuals mobilized to active duty in
23 the United States Armed Services, including the Illinois
24 National Guard, on or after January 1, 2002. For the health
25 plan only, the term "dependent" also includes any person
26 enrolled prior to the effective date of this Section who is

 

 

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1 dependent upon the member to the extent that the member may
2 claim such person as a dependent for income tax deduction
3 purposes; no other such person may be enrolled. For the health
4 plan only, the term "dependent" also includes any person who
5 has received after June 30, 2000 an organ transplant and who is
6 financially dependent upon the member and eligible to be
7 claimed as a dependent for income tax purposes.
8     (i) "Director" means the Director of the Illinois
9 Department of Central Management Services.
10     (j) "Eligibility period" means the period of time a member
11 has to elect enrollment in programs or to select benefits
12 without regard to age, sex or health.
13     (k) "Employee" means and includes each officer or employee
14 in the service of a department who (1) receives his
15 compensation for service rendered to the department on a
16 warrant issued pursuant to a payroll certified by a department
17 or on a warrant or check issued and drawn by a department upon
18 a trust, federal or other fund or on a warrant issued pursuant
19 to a payroll certified by an elected or duly appointed officer
20 of the State or who receives payment of the performance of
21 personal services on a warrant issued pursuant to a payroll
22 certified by a Department and drawn by the Comptroller upon the
23 State Treasurer against appropriations made by the General
24 Assembly from any fund or against trust funds held by the State
25 Treasurer, and (2) is employed full-time or part-time in a
26 position normally requiring actual performance of duty during

 

 

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1 not less than 1/2 of a normal work period, as established by
2 the Director in cooperation with each department, except that
3 persons elected by popular vote will be considered employees
4 during the entire term for which they are elected regardless of
5 hours devoted to the service of the State, and (3) except that
6 "employee" does not include any person who is not eligible by
7 reason of such person's employment to participate in one of the
8 State retirement systems under Articles 2, 14, 15 (either the
9 regular Article 15 system or the optional retirement program
10 established under Section 15-158.2) or 18, or under paragraph
11 (2), (3), or (5) of Section 16-106, of the Illinois Pension
12 Code, but such term does include persons who are employed
13 during the 6 month qualifying period under Article 14 of the
14 Illinois Pension Code. Such term also includes any person who
15 (1) after January 1, 1966, is receiving ordinary or accidental
16 disability benefits under Articles 2, 14, 15 (including
17 ordinary or accidental disability benefits under the optional
18 retirement program established under Section 15-158.2),
19 paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
20 the Illinois Pension Code, for disability incurred after
21 January 1, 1966, (2) receives total permanent or total
22 temporary disability under the Workers' Compensation Act or
23 Occupational Disease Act as a result of injuries sustained or
24 illness contracted in the course of employment with the State
25 of Illinois, or (3) is not otherwise covered under this Act and
26 has retired as a participating member under Article 2 of the

 

 

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1 Illinois Pension Code but is ineligible for the retirement
2 annuity under Section 2-119 of the Illinois Pension Code.
3 However, a person who satisfies the criteria of the foregoing
4 definition of "employee" except that such person is made
5 ineligible to participate in the State Universities Retirement
6 System by clause (4) of subsection (a) of Section 15-107 of the
7 Illinois Pension Code is also an "employee" for the purposes of
8 this Act. "Employee" also includes any person receiving or
9 eligible for benefits under a sick pay plan established in
10 accordance with Section 36 of the State Finance Act. "Employee"
11 also includes (i) each officer or employee in the service of a
12 qualified local government, including persons appointed as
13 trustees of sanitary districts regardless of hours devoted to
14 the service of the sanitary district, (ii) each employee in the
15 service of a qualified rehabilitation facility, (iii) each
16 full-time employee in the service of a qualified domestic
17 violence shelter or service, and (iv) each full-time employee
18 in the service of a qualified child advocacy center, as
19 determined according to rules promulgated by the Director.
20     (l) "Member" means an employee, annuitant, retired
21 employee or survivor.
22     (m) "Optional coverages or benefits" means those coverages
23 or benefits available to the member on his or her voluntary
24 election, and at his or her own expense.
25     (n) "Program" means the group life insurance, health
26 benefits and other employee benefits designed and contracted

 

 

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1 for by the Director under this Act.
2     (o) "Health plan" means a health benefits program offered
3 by the State of Illinois for persons eligible for the plan.
4     (p) "Retired employee" means any person who would be an
5 annuitant as that term is defined herein but for the fact that
6 such person retired prior to January 1, 1966. Such term also
7 includes any person formerly employed by the University of
8 Illinois in the Cooperative Extension Service who would be an
9 annuitant but for the fact that such person was made ineligible
10 to participate in the State Universities Retirement System by
11 clause (4) of subsection (a) of Section 15-107 of the Illinois
12 Pension Code.
13     (q) "Survivor" means a person receiving an annuity as a
14 survivor of an employee or of an annuitant. "Survivor" also
15 includes: (1) the surviving dependent of a person who satisfies
16 the definition of "employee" except that such person is made
17 ineligible to participate in the State Universities Retirement
18 System by clause (4) of subsection (a) of Section 15-107 of the
19 Illinois Pension Code; (2) the surviving dependent of any
20 person formerly employed by the University of Illinois in the
21 Cooperative Extension Service who would be an annuitant except
22 for the fact that such person was made ineligible to
23 participate in the State Universities Retirement System by
24 clause (4) of subsection (a) of Section 15-107 of the Illinois
25 Pension Code; and (3) the surviving dependent of a person who
26 was an annuitant under this Act by virtue of receiving an

 

 

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1 alternative retirement cancellation payment under Section
2 14-108.5 of the Illinois Pension Code.
3     (q-2) "SERS" means the State Employees' Retirement System
4 of Illinois, created under Article 14 of the Illinois Pension
5 Code.
6     (q-3) "SURS" means the State Universities Retirement
7 System, created under Article 15 of the Illinois Pension Code.
8     (q-4) "TRS" means the Teachers' Retirement System of the
9 State of Illinois, created under Article 16 of the Illinois
10 Pension Code.
11     (q-5) "New SERS survivor" means a survivor, as defined in
12 subsection (q), whose annuity is paid under Article 14 of the
13 Illinois Pension Code and is based on the death of (i) an
14 employee whose death occurs on or after January 1, 1998, or
15 (ii) a new SERS annuitant as defined in subsection (b-5). "New
16 SERS survivor" includes the surviving dependent of a person who
17 was an annuitant under this Act by virtue of receiving an
18 alternative retirement cancellation payment under Section
19 14-108.5 of the Illinois Pension Code.
20     (q-6) "New SURS survivor" means a survivor, as defined in
21 subsection (q), whose annuity is paid under Article 15 of the
22 Illinois Pension Code and is based on the death of (i) an
23 employee whose death occurs on or after January 1, 1998, or
24 (ii) a new SURS annuitant as defined in subsection (b-6).
25     (q-7) "New TRS State survivor" means a survivor, as defined
26 in subsection (q), whose annuity is paid under Article 16 of

 

 

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1 the Illinois Pension Code and is based on the death of (i) an
2 employee who is a teacher as defined in paragraph (2), (3), or
3 (5) of Section 16-106 of that Code and whose death occurs on or
4 after July 1, 1998, or (ii) a new TRS State annuitant as
5 defined in subsection (b-7).
6     (r) "Medical services" means the services provided within
7 the scope of their licenses by practitioners in all categories
8 licensed under the Medical Practice Act of 1987.
9     (s) "Unit of local government" means any county,
10 municipality, township, school district (including a
11 combination of school districts under the Intergovernmental
12 Cooperation Act), special district or other unit, designated as
13 a unit of local government by law, which exercises limited
14 governmental powers or powers in respect to limited
15 governmental subjects, any not-for-profit association with a
16 membership that primarily includes townships and township
17 officials, that has duties that include provision of research
18 service, dissemination of information, and other acts for the
19 purpose of improving township government, and that is funded
20 wholly or partly in accordance with Section 85-15 of the
21 Township Code; any not-for-profit corporation or association,
22 with a membership consisting primarily of municipalities, that
23 operates its own utility system, and provides research,
24 training, dissemination of information, or other acts to
25 promote cooperation between and among municipalities that
26 provide utility services and for the advancement of the goals

 

 

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1 and purposes of its membership; the Southern Illinois
2 Collegiate Common Market, which is a consortium of higher
3 education institutions in Southern Illinois; the Illinois
4 Association of Park Districts; and any hospital provider that
5 is owned by a county that has 100 or fewer hospital beds and
6 has not already joined the program. "Qualified local
7 government" means a unit of local government approved by the
8 Director and participating in a program created under
9 subsection (i) of Section 10 of this Act.
10     (t) "Qualified rehabilitation facility" means any
11 not-for-profit organization that is accredited by the
12 Commission on Accreditation of Rehabilitation Facilities or
13 certified by the Department of Human Services (as successor to
14 the Department of Mental Health and Developmental
15 Disabilities) to provide services to persons with disabilities
16 and which receives funds from the State of Illinois for
17 providing those services, approved by the Director and
18 participating in a program created under subsection (j) of
19 Section 10 of this Act.
20     (u) "Qualified domestic violence shelter or service" means
21 any Illinois domestic violence shelter or service and its
22 administrative offices funded by the Department of Human
23 Services (as successor to the Illinois Department of Public
24 Aid), approved by the Director and participating in a program
25 created under subsection (k) of Section 10.
26     (v) "TRS benefit recipient" means a person who:

 

 

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1         (1) is not a "member" as defined in this Section; and
2         (2) is receiving a monthly benefit or retirement
3     annuity under Article 16 of the Illinois Pension Code; and
4         (3) either (i) has at least 8 years of creditable
5     service under Article 16 of the Illinois Pension Code, or
6     (ii) was enrolled in the health insurance program offered
7     under that Article on January 1, 1996, or (iii) is the
8     survivor of a benefit recipient who had at least 8 years of
9     creditable service under Article 16 of the Illinois Pension
10     Code or was enrolled in the health insurance program
11     offered under that Article on the effective date of this
12     amendatory Act of 1995, or (iv) is a recipient or survivor
13     of a recipient of a disability benefit under Article 16 of
14     the Illinois Pension Code.
15     (w) "TRS dependent beneficiary" means a person who:
16         (1) is not a "member" or "dependent" as defined in this
17     Section; and
18         (2) is a TRS benefit recipient's: (A) spouse, (B)
19     dependent parent who is receiving at least half of his or
20     her support from the TRS benefit recipient, or (C)
21     unmarried natural or adopted child who is (i) under age 19,
22     or (ii) enrolled as a full-time student in an accredited
23     school, financially dependent upon the TRS benefit
24     recipient, eligible to be claimed as a dependent for income
25     tax purposes, and either is under age 24 or was, on January
26     1, 1996, participating as a dependent beneficiary in the

 

 

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1     health insurance program offered under Article 16 of the
2     Illinois Pension Code, or (iii) age 19 or over who is
3     mentally or physically handicapped.
4     (x) "Military leave with pay and benefits" refers to
5 individuals in basic training for reserves, special/advanced
6 training, annual training, emergency call up, or activation by
7 the President of the United States with approved pay and
8 benefits.
9     (y) "Military leave without pay and benefits" refers to
10 individuals who enlist for active duty in a regular component
11 of the U.S. Armed Forces or other duty not specified or
12 authorized under military leave with pay and benefits.
13     (z) "Community college benefit recipient" means a person
14 who:
15         (1) is not a "member" as defined in this Section; and
16         (2) is receiving a monthly survivor's annuity or
17     retirement annuity under Article 15 of the Illinois Pension
18     Code; and
19         (3) either (i) was a full-time employee of a community
20     college district or an association of community college
21     boards created under the Public Community College Act
22     (other than an employee whose last employer under Article
23     15 of the Illinois Pension Code was a community college
24     district subject to Article VII of the Public Community
25     College Act) and was eligible to participate in a group
26     health benefit plan as an employee during the time of

 

 

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1     employment with a community college district (other than a
2     community college district subject to Article VII of the
3     Public Community College Act) or an association of
4     community college boards, or (ii) is the survivor of a
5     person described in item (i).
6     (aa) "Community college dependent beneficiary" means a
7 person who:
8         (1) is not a "member" or "dependent" as defined in this
9     Section; and
10         (2) is a community college benefit recipient's: (A)
11     spouse, (B) dependent parent who is receiving at least half
12     of his or her support from the community college benefit
13     recipient, or (C) unmarried natural or adopted child who is
14     (i) under age 19, or (ii) enrolled as a full-time student
15     in an accredited school, financially dependent upon the
16     community college benefit recipient, eligible to be
17     claimed as a dependent for income tax purposes and under
18     age 23, or (iii) age 19 or over and mentally or physically
19     handicapped.
20     (bb) "Qualified child advocacy center" means any Illinois
21 child advocacy center and its administrative offices funded by
22 the Department of Children and Family Services, as defined by
23 the Children's Advocacy Center Act (55 ILCS 80/), approved by
24 the Director and participating in a program created under
25 subsection (n) of Section 10.
26 (Source: P.A. 93-205, eff. 1-1-04; 93-839, eff. 7-30-04;

 

 

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1 93-1067, eff. 1-15-05; 94-32, eff. 6-15-05; 94-82, eff. 1-1-06;
2 94-860, eff. 6-16-06; revised 8-3-06.)
 
3     (5 ILCS 375/6.9)
4     Sec. 6.9. Health benefits for community college benefit
5 recipients and community college dependent beneficiaries.
6     (a) Purpose. It is the purpose of this amendatory Act of
7 1997 to establish a uniform program of health benefits for
8 community college benefit recipients and their dependent
9 beneficiaries under the administration of the Department of
10 Central Management Services.
11     (b) Creation of program. Beginning July 1, 1999, the
12 Department of Central Management Services shall be responsible
13 for administering a program of health benefits for community
14 college benefit recipients and community college dependent
15 beneficiaries under this Section. The State Universities
16 Retirement System and the boards of trustees of the various
17 community college districts shall cooperate with the
18 Department in this endeavor.
19     (c) Eligibility. All community college benefit recipients
20 and community college dependent beneficiaries shall be
21 eligible to participate in the program established under this
22 Section, without any interruption or delay in coverage or
23 limitation as to pre-existing medical conditions. Eligibility
24 to participate shall be determined by the State Universities
25 Retirement System. Eligibility information shall be

 

 

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1 communicated to the Department of Central Management Services
2 in a format acceptable to the Department.
3     (d) Coverage. The health benefit coverage provided under
4 this Section shall be a program of health, dental, and vision
5 benefits.
6     The program of health benefits under this Section may
7 include any or all of the benefit limitations, including but
8 not limited to a reduction in benefits based on eligibility for
9 federal medicare benefits, that are provided under subsection
10 (a) of Section 6 of this Act for other health benefit programs
11 under this Act.
12     (e) Insurance rates and premiums. The Director shall
13 determine the insurance rates and premiums for community
14 college benefit recipients and community college dependent
15 beneficiaries. Rates and premiums may be based in part on age
16 and eligibility for federal Medicare coverage. The Director
17 shall also determine premiums that will allow for the
18 establishment of an actuarially sound reserve for this program.
19     The cost of health benefits under the program shall be paid
20 as follows:
21         (1) For a community college benefit recipient, up to
22     75% of the total insurance rate shall be paid from the
23     Community College Health Insurance Security Fund.
24         (2) The balance of the rate of insurance, including the
25     entire premium for any coverage for community college
26     dependent beneficiaries that has been elected, shall be

 

 

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1     paid by deductions authorized by the community college
2     benefit recipient to be withheld from his or her monthly
3     annuity or benefit payment from the State Universities
4     Retirement System; except that (i) if the balance of the
5     cost of coverage exceeds the amount of the monthly annuity
6     or benefit payment, the difference shall be paid directly
7     to the State Universities Retirement System by the
8     community college benefit recipient, and (ii) all or part
9     of the balance of the cost of coverage may, at the option
10     of the board of trustees of the community college district,
11     be paid to the State Universities Retirement System by the
12     board of the community college district from which the
13     community college benefit recipient retired. The State
14     Universities Retirement System shall promptly deposit all
15     moneys withheld by or paid to it under this subdivision
16     (e)(2) into the Community College Health Insurance
17     Security Fund. These moneys shall not be considered assets
18     of the State Universities Retirement System.
19     (f) Financing. All revenues arising from the
20 administration of the health benefit program established under
21 this Section shall be deposited into the Community College
22 Health Insurance Security Fund, which is hereby created as a
23 nonappropriated trust fund to be held outside the State
24 Treasury, with the State Treasurer as custodian. Any interest
25 earned on moneys in the Community College Health Insurance
26 Security Fund shall be deposited into the Fund.

 

 

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1     Moneys in the Community College Health Insurance Security
2 Fund shall be used only to pay the costs of the health benefit
3 program established under this Section, including associated
4 administrative costs and the establishment of a program
5 reserve. Beginning January 1, 1999, the Department of Central
6 Management Services may make expenditures from the Community
7 College Health Insurance Security Fund for those costs.
8     (g) Contract for benefits. The Director shall by contract,
9 self-insurance, or otherwise make available the program of
10 health benefits for community college benefit recipients and
11 their community college dependent beneficiaries that is
12 provided for in this Section. The contract or other arrangement
13 for the provision of these health benefits shall be on terms
14 deemed by the Director to be in the best interest of the State
15 of Illinois and the community college benefit recipients based
16 on, but not limited to, such criteria as administrative cost,
17 service capabilities of the carrier or other contractor, and
18 the costs of the benefits.
19     (h) Continuation of program. It is the intention of the
20 General Assembly that the program of health benefits provided
21 under this Section be maintained on an ongoing, affordable
22 basis. The program of health benefits provided under this
23 Section may be amended by the State and is not intended to be a
24 pension or retirement benefit subject to protection under
25 Article XIII, Section 5 of the Illinois Constitution.
26     (i) Other health benefit plans. A health benefit plan

 

 

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1 provided by a community college district (other than a
2 community college district subject to Article VII of the Public
3 Community College Act) under the terms of a collective
4 bargaining agreement in effect on or prior to the effective
5 date of this amendatory Act of 1997 (or July 1, 2007 with
6 respect to a community college district subject to Article VII
7 of the Public Community College Act) shall continue in force
8 according to the terms of that agreement, unless otherwise
9 mutually agreed by the parties to that agreement and the
10 affected retiree. A community college benefit recipient or
11 community college dependent beneficiary whose coverage under
12 such a plan expires shall be eligible to begin participating in
13 the program established under this Section without any
14 interruption or delay in coverage or limitation as to
15 pre-existing medical conditions.
16     This Act does not prohibit any community college district
17 from offering additional health benefits for its retirees or
18 their dependents or survivors.
19 (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
 
20     (5 ILCS 375/6.10)
21     Sec. 6.10. Contributions to the Community College Health
22 Insurance Security Fund.
23     (a) Beginning January 1, 1999, (or July 1, 2007 with
24 respect to a community college district subject to Article VII
25 of the Public Community College Act), every active contributor

 

 

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1 of the State Universities Retirement System (established under
2 Article 15 of the Illinois Pension Code) who (1) is a full-time
3 employee of a community college district (other than a
4 community college district subject to Article VII of the Public
5 Community College Act) or an association of community college
6 boards and (2) is not an employee as defined in Section 3 of
7 this Act shall make contributions toward the cost of community
8 college annuitant and survivor health benefits at the rate of
9 0.50% of salary.
10     These contributions shall be deducted by the employer and
11 paid to the State Universities Retirement System as service
12 agent for the Department of Central Management Services. The
13 System may use the same processes for collecting the
14 contributions required by this subsection that it uses to
15 collect the contributions received from those employees under
16 Section 15-157 of the Illinois Pension Code. An employer may
17 agree to pick up or pay the contributions required under this
18 subsection on behalf of the employee; such contributions shall
19 be deemed to have been paid by the employee.
20     The State Universities Retirement System shall promptly
21 deposit all moneys collected under this subsection (a) into the
22 Community College Health Insurance Security Fund created in
23 Section 6.9 of this Act. The moneys collected under this
24 Section shall be used only for the purposes authorized in
25 Section 6.9 of this Act and shall not be considered to be
26 assets of the State Universities Retirement System.

 

 

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1 Contributions made under this Section are not transferable to
2 other pension funds or retirement systems and are not
3 refundable upon termination of service.
4     (b) Beginning January 1, 1999, (or July 1, 2007 with
5 respect to a community college district subject to Article VII
6 of the Public Community College Act), every community college
7 district (other than a community college district subject to
8 Article VII of the Public Community College Act) or association
9 of community college boards that is an employer under the State
10 Universities Retirement System shall contribute toward the
11 cost of the community college health benefits provided under
12 Section 6.9 of this Act an amount equal to 0.50% of the salary
13 paid to its full-time employees who participate in the State
14 Universities Retirement System and are not members as defined
15 in Section 3 of this Act.
16     These contributions shall be paid by the employer to the
17 State Universities Retirement System as service agent for the
18 Department of Central Management Services. The System may use
19 the same processes for collecting the contributions required by
20 this subsection that it uses to collect the contributions
21 received from those employers under Section 15-155 of the
22 Illinois Pension Code.
23     The State Universities Retirement System shall promptly
24 deposit all moneys collected under this subsection (b) into the
25 Community College Health Insurance Security Fund created in
26 Section 6.9 of this Act. The moneys collected under this

 

 

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1 Section shall be used only for the purposes authorized in
2 Section 6.9 of this Act and shall not be considered to be
3 assets of the State Universities Retirement System.
4 Contributions made under this Section are not transferable to
5 other pension funds or retirement systems and are not
6 refundable upon termination of service.
7     (c) On or before November 15 of each year, the Board of
8 Trustees of the State Universities Retirement System shall
9 certify to the Governor, the Director of Central Management
10 Services, and the State Comptroller its estimate of the total
11 amount of contributions to be paid under subsection (a) of this
12 Section for the next fiscal year. Beginning in fiscal year
13 2008, the amount certified shall be decreased or increased each
14 year by the amount that the actual active employee
15 contributions either fell short of or exceeded the estimate
16 used by the Board in making the certification for the previous
17 fiscal year. The State Universities Retirement System shall
18 calculate the amount of actual active employee contributions in
19 fiscal years 1999 through 2005. Based upon this calculation,
20 the fiscal year 2008 certification shall include an amount
21 equal to the cumulative amount that the actual active employee
22 contributions either fell short of or exceeded the estimate
23 used by the Board in making the certification for those fiscal
24 years. The certification shall include a detailed explanation
25 of the methods and information that the Board relied upon in
26 preparing its estimate. As soon as possible after the effective

 

 

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1 date of this Section, the Board shall submit its estimate for
2 fiscal year 1999.
3     (d) Beginning in fiscal year 1999, on the first day of each
4 month, or as soon thereafter as may be practical, the State
5 Treasurer and the State Comptroller shall transfer from the
6 General Revenue Fund to the Community College Health Insurance
7 Security Fund 1/12 of the annual amount appropriated for that
8 fiscal year to the State Comptroller for deposit into the
9 Community College Health Insurance Security Fund under Section
10 1.4 of the State Pension Funds Continuing Appropriation Act.
11     (e) Except where otherwise specified in this Section, the
12 definitions that apply to Article 15 of the Illinois Pension
13 Code apply to this Section.
14 (Source: P.A. 94-839, eff. 6-6-06.)
 
15     Section 99. Effective date. This Act takes effect July 1,
16 2007.