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


Rep. Elaine Nekritz

Filed: 4/6/2016





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2    AMENDMENT NO. ______. Amend House Bill 5681 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 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



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1deduction plans, the Fund may pay the health insurance premium
2reimbursement on a monthly rather than annual basis, at the
3percentage rate established from time to time by the Board. If
4the Board so directs, these monthly payments may be made in the
5form of a direct payment of premium and a reduction in the
6amount deducted from the annuity, rather than in the form of
7reimbursement by separate warrant.
8    (3) Total payments under this Section in any year may not
9exceed $65,000,000 plus any amount that was authorized to be
10paid under this Section in the preceding year but was not
11actually paid by the Board, including any interest earned
13    (4) The total amount of payments under this Section in any
14year may not exceed 75% of the total cost of health insurance
15coverage in that year for all the recipients who receive
16payments authorized by this Section in that year.
17    (5) There is hereby created the Chicago Teachers' Pension
18Fund Health Insurance Task Force. The Task Force shall consist
19of 12 members appointed as follows:
20        (a) Eight members, 2 of whom shall be appointed by each
21    of the 4 legislative leaders.
22        (b) One member, who shall be appointed by the board of
23    trustees of the Fund.
24        (c) One member, who shall be appointed by an
25    organization that represents retired Chicago teachers.
26        (d) One member, who shall be appointed by an



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1    organization that represents Chicago teachers.
2        (e) One member, who shall be appointed by the chairman
3    of the Chicago Board of Education.
4    The Task force shall study and consider the program of
5health insurance coverage for pensioners that is currently
6administered by the Fund, and shall present its findings and
7recommendations concerning the following specified matters:
8        (i) the need for increasing the $65,000,000 limitation
9    on annual payments under subsection (3) of this Section;
10        (ii) moving the administration of the retiree health
11    plan to another appropriate public or private entity;
12        (iii) suggestions for an exit strategy and transition;
13        (iv) consideration of alternative funding mechanisms;
14    and
15        (v) consideration of the proper role of fiduciaries in
16    administering the health insurance program.
17    Members of the Task Force shall serve without compensation.
18The Fund shall provide a meeting place and clerical support for
19the Task Force.
20    The Task Force shall present a final report of its findings
21and recommendations to the Governor of Illinois, the Mayor of
22Chicago, the Illinois General Assembly, and the Illinois State
23Library no later than January 31, 2017. Upon the filing of its
24report and the conclusion of its business, the Task Force is
26(Source: P.A. 93-677, eff. 6-28-04.)



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".