Illinois General Assembly - Full Text of HB5681
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Full Text of HB5681  99th General Assembly




HB5681 EngrossedLRB099 17090 EFG 41448 b

1    AN ACT concerning public employee benefits.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Pension Code is amended by changing
5Section 17-142.1 as follows:
6    (40 ILCS 5/17-142.1)  (from Ch. 108 1/2, par. 17-142.1)
7    Sec. 17-142.1. To defray health insurance costs. To provide
8for the partial reimbursement of health insurance costs.
9    (1) On the first day of September of each year, beginning
10in 1988, the Board may, by separate warrant, pay to each
11recipient of a service retirement, disability retirement or
12survivor's pension an amount to be determined by the Board,
13which shall represent partial reimbursement for the cost of the
14recipient's health insurance coverage.
15    (2) In lieu of the annual payment authorized in subdivision
16(1), for pensioners enrolled in the Fund's regular health care
17deduction plans, the Fund may pay the health insurance premium
18reimbursement on a monthly rather than annual basis, at the
19percentage rate established from time to time by the Board. If
20the Board so directs, these monthly payments may be made in the
21form of a direct payment of premium and a reduction in the
22amount deducted from the annuity, rather than in the form of
23reimbursement by separate warrant.



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1    (3) Total payments under this Section in any year may not
2exceed $65,000,000 plus any amount that was authorized to be
3paid under this Section in the preceding year but was not
4actually paid by the Board, including any interest earned
6    (4) The total amount of payments under this Section in any
7year may not exceed 75% of the total cost of health insurance
8coverage in that year for all the recipients who receive
9payments authorized by this Section in that year.
10    (5) There is hereby created the Chicago Teachers' Pension
11Fund Health Insurance Task Force. The Task Force shall consist
12of 12 members appointed as follows:
13        (a) Eight members, 2 of whom shall be appointed by each
14    of the 4 legislative leaders.
15        (b) One member, who shall be appointed by the board of
16    trustees of the Fund.
17        (c) One member, who shall be appointed by an
18    organization that represents retired Chicago teachers.
19        (d) One member, who shall be appointed by an
20    organization that represents Chicago teachers.
21        (e) One member, who shall be appointed by the chairman
22    of the Chicago Board of Education.
23    The Task force shall study and consider the program of
24health insurance coverage for pensioners that is currently
25administered by the Fund, and shall present its findings and
26recommendations concerning the following specified matters:



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1        (i) the need for increasing the $65,000,000 limitation
2    on annual payments under subsection (3) of this Section;
3        (ii) moving the administration of the retiree health
4    plan to another appropriate public or private entity;
5        (iii) suggestions for an exit strategy and transition;
6        (iv) consideration of alternative funding mechanisms;
7    and
8        (v) consideration of the proper role of fiduciaries in
9    administering the health insurance program.
10    Members of the Task Force shall serve without compensation.
11The Fund shall provide a meeting place and clerical support for
12the Task Force.
13    The Task Force shall present a final report of its findings
14and recommendations to the Governor of Illinois, the Mayor of
15Chicago, the Illinois General Assembly, and the Illinois State
16Library no later than January 31, 2017. Upon the filing of its
17report and the conclusion of its business, the Task Force is
19(Source: P.A. 93-677, eff. 6-28-04.)
20    Section 99. Effective date. This Act takes effect upon
21becoming law.