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90_HB1742
40 ILCS 5/5-167.5 from Ch. 108 1/2, par. 5-167.5
40 ILCS 5/6-164.2 from Ch. 108 1/2, par. 6-164.2
40 ILCS 5/8-164.1 from Ch. 108 1/2, par. 8-164.1
40 ILCS 5/11-160.1 from Ch. 108 1/2, par. 11-160.1
30 ILCS 805/8.21 new
Amends the Chicago Police, Firefighter, Municipal, and
Laborers Articles of the Pension Code. Extends the annuitant
health insurance plan through December 31, 2002. Makes
numerous changes relating to participation in and financing
of the plan. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
LRB9002941EGfg
LRB9002941EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 5-167.5, 6-164.2, 8-164.1, and 11-160.1 and to amend
3 the State Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 5-167.5, 6-164.2, 8-164.1, and 11-160.1 as
8 follows:
9 (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
10 Sec. 5-167.5. Group health benefit.
11 (a) For the purposes of this Section: (1) "annuitant"
12 means a person receiving an age and service annuity, a prior
13 service annuity, a widow's annuity, a widow's prior service
14 annuity, or a minimum annuity on or after January 1, 1988,
15 under Article 5, 6, 8 or 11, by reason of previous employment
16 by the City of Chicago (hereinafter, in this Section, "the
17 city"); (2) "Medicare Plan annuitant" means an annuitant
18 described in item (1) who is eligible for Medicare benefits;
19 and (3) "non-Medicare Plan annuitant" means an annuitant
20 described in item (1) who is not eligible for Medicare
21 benefits.
22 (b) The city shall continue to offer group health
23 benefits to annuitants and their eligible dependents through
24 June 30, 2002. The same basic city health care plan
25 available as of June 30, 1988 (hereinafter called the basic
26 city plan) shall cease to be a plan offered by the city,
27 except as specified in subparagraphs (4) and (5) below, and
28 shall be closed to new enrollment or transfer of coverage for
29 any non-Medicare Plan annuitant as of the effective date of
30 this amendatory Act of 1997. The city shall offer
31 non-Medicare Plan annuitants and their eligible dependents
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1 the option of enrolling in its Annuitant Preferred Provider
2 Plan, and may offer additional plans for any annuitant. The
3 city may amend, modify, or terminate any of its additional
4 plans at its sole discretion. If the city offers more than
5 one annuitant plan, the city shall allow annuitants to
6 convert coverage from one city annuitant plan to another,
7 except the basic city plan, during times designated by the
8 city, which periods of time shall occur at least annually.
9 For the period dating from the effective date of this
10 amendatory Act of 1997 through June 30, 2002, monthly premium
11 rates may be increased for annuitants during the time of
12 their participation in non-Medicare plans, except as provided
13 in subparagraphs (1) through (4) of this subsection.
14 (1) For non-Medicare Plan annuitants who retired
15 prior to January 1, 1988, the annuitant's share of
16 monthly premium for non-Medicare Plan coverage only shall
17 not exceed the highest premium rate chargeable under any
18 city non-Medicare Plan annuitant coverage as of December
19 1, 1996.
20 (2) For non-Medicare Plan annuitants who retire on
21 or after January 1, 1988, the annuitant's share of
22 monthly premium for non-Medicare Plan coverage only shall
23 be the rate in effect on December 1, 1996, with monthly
24 premium increases to take effect no sooner than April 1,
25 1998 at the lower of (i) the premium rate determined
26 pursuant to subsection (g) or (ii) 10% of the immediately
27 previous month's rate for similar coverage.
28 (3) In no event shall any non-Medicare Plan
29 annuitant's share of monthly premium for non-Medicare
30 Plan coverage exceed 10% of the annuitant's monthly
31 annuity.
32 (4) Non-Medicare Plan annuitants who are enrolled
33 in the basic city plan as of July 1, 1998 may remain in
34 the basic city plan, if they so choose, on the condition
-3- LRB9002941EGfg
1 that they are not entitled to the caps on rates set forth
2 in subparagraphs (1) through (3), and their premium rate
3 shall be the rate determined in accordance with
4 subsections (c) and (g).
5 (5) Medicare Plan annuitants who are currently
6 enrolled in the basic city plan for Medicare eligible
7 annuitants may remain in that plan, if they so choose,
8 through June 30, 2002. Annuitants shall not be allowed
9 to enroll in or transfer into the basic city plan for
10 Medicare eligible annuitants on or after July 1, 1999.
11 The city shall continue to offer annuitants a
12 supplemental Medicare Plan for Medicare eligible
13 annuitants through June 30, 2002, and the city may offer
14 additional plans to Medicare eligible annuitants in its
15 sole discretion. All Medicare Plan annuitant monthly
16 rates shall be determined in accordance with subsections
17 (c) and (g).
18 (c) Effective the date the initial increased annuitant
19 payments pursuant to subsection (g) take effect, The city
20 shall pay 50% of the aggregated costs of the claims or
21 premiums, whichever is applicable, as determined in
22 accordance with subsection (g), of annuitants and their
23 dependents under all health care plans offered by the city.
24 The city may reduce its obligation by application of price
25 reductions obtained as a result of financial arrangements
26 with providers or plan administrators. The claims or
27 premiums of all annuitants and their dependents under all of
28 the plans offered by the city shall be aggregated for the
29 purpose of calculating the city's payment required under this
30 subsection, as well as for the setting of rates of payment
31 for annuitants as required under subsection (g).
32 (d) From January 1, 1988 until December 31, 1992, the
33 board shall pay to the city on behalf of each of the board's
34 annuitants who chooses to participate in any of the city's
-4- LRB9002941EGfg
1 plans the following amounts: up to a maximum of $65 per month
2 for each such annuitant who is not qualified to receive
3 medicare benefits, and up to a maximum of $35 per month for
4 each such annuitant who is qualified to receive medicare
5 benefits. From January 1, 1993 until June 30, 2002 December
6 31, 1997, the board shall pay to the city on behalf of each
7 of the board's annuitants who chooses to participate in any
8 of the city's plans the following amounts: up to a maximum of
9 $75 per month for each such annuitant who is not qualified to
10 receive medicare benefits, and up to a maximum of $45 per
11 month for each such annuitant who is qualified to receive
12 medicare benefits.
13 For the period January 1, 1988 through the effective date
14 of this amendatory Act of 1989, payments under this Section
15 shall be reduced by the amounts paid by or on behalf of the
16 board's annuitants covered during that period.
17 The payments described in this subsection shall be paid
18 from the tax levy authorized under Section 5-168; such
19 amounts shall be credited to the reserve for group hospital
20 care and group medical and surgical plan benefits, and all
21 payments to the city required under this subsection shall be
22 charged against it.
23 (e) The city's obligations under subsections (b) and (c)
24 shall terminate on June 30, 2002 December 31, 1997, except
25 with regard to covered expenses incurred but not paid as of
26 that date. This subsection shall not affect other
27 obligations that may be imposed by law.
28 (f) The group coverage plans described in this Section
29 are not and shall not be construed to be pension or
30 retirement benefits for purposes of Section 5 of Article XIII
31 of the Illinois Constitution of 1970.
32 (g) For each annuitant plan offered by the city, the
33 aggregate cost of claims, as reflected in the claim records
34 of the plan administrator, and premiums for each calendar
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1 year from 1989 through 1997 of all annuitants and dependents
2 covered by the city's group health care plans shall be
3 estimated by the city, based upon a written determination by
4 a qualified independent actuary to be appointed and paid by
5 the city and the board. If the such estimated annual cost
6 for each annuitant plan offered by the city is more than the
7 estimated amount to be contributed by the city for that plan
8 pursuant to subsections (b) and (c) during that year plus the
9 estimated amounts to be paid pursuant to subsection (d) and
10 by the other pension boards on behalf of other participating
11 annuitants, the difference shall be paid by all participating
12 annuitants participating in the plan, except as provided in
13 subsection (b). The city, based upon the determination of
14 the independent actuary, shall set the monthly amounts to be
15 paid by the participating annuitants. The initial
16 determination of such payments shall be prospective only and
17 shall be based upon the estimated costs for the balance of
18 the year. The board may deduct the amounts to be paid by its
19 annuitants from the participating annuitants' monthly
20 annuities.
21 If it is determined from the city's annual audit, or from
22 audited experience data, that the total amount paid by all
23 participating annuitants was more or less than the difference
24 between (1) the cost of providing the group health care
25 plans, and (2) the sum of the amount to be paid by the city
26 as determined under subsection (c) and the amounts paid by
27 all the pension boards, then the independent actuary and the
28 city shall account for the excess or shortfall in the next
29 year's payments by annuitants, except as provided in
30 subsection (b).
31 (h) An annuitant may elect to terminate coverage in a
32 plan at the end of any month any time, which election shall
33 terminate the annuitant's obligation to contribute toward
34 payment of the excess described in subsection (g).
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1 (i) The city shall advise the board of all proposed
2 premium increases for health care at least 60 days prior to
3 the effective date of the change, and any increase shall be
4 prospective only.
5 (Source: P.A. 86-273.)
6 (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
7 Sec. 6-164.2. Group health benefit.
8 (a) For the purposes of this Section: (1) "annuitant"
9 means a person receiving an age and service annuity, a prior
10 service annuity, a widow's annuity, a widow's prior service
11 annuity, or a minimum annuity on or after January 1, 1988,
12 under Article 5, 6, 8 or 11, by reason of previous employment
13 by the City of Chicago (hereinafter, in this Section, "the
14 city"); (2) "Medicare Plan annuitant" means an annuitant
15 described in item (1) who is eligible for Medicare benefits;
16 and (3) "non-Medicare Plan annuitant" means an annuitant
17 described in item (1) who is not eligible for Medicare
18 benefits.
19 (b) The city shall continue to offer group health
20 benefits to annuitants and their eligible dependents through
21 June 30, 2002. The same basic city health care plan
22 available as of June 30, 1988 (hereinafter called the basic
23 city plan) shall cease to be a plan offered by the city,
24 except as specified in subparagraphs (4) and (5) below, and
25 shall be closed to new enrollment or transfer of coverage for
26 any non-Medicare Plan annuitant as of the effective date of
27 this amendatory Act of 1997. The city shall offer
28 non-Medicare Plan annuitants and their eligible dependents
29 the option of enrolling in its Annuitant Preferred Provider
30 Plan, and may offer additional plans for any annuitant. The
31 city may amend, modify, or terminate any of its additional
32 plans at its sole discretion. If the city offers more than
33 one annuitant plan, the city shall allow annuitants to
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1 convert coverage from one city annuitant plan to another,
2 except the basic city plan, during times designated by the
3 city, which periods of time shall occur at least annually.
4 For the period dating from the effective date of this
5 amendatory Act of 1997 through June 30, 2002, monthly
6 premium rates may be increased for annuitants during the time
7 of their participation in non-Medicare plans, except as
8 provided in subparagraphs (1) through (4) of this subsection.
9 (1) For non-Medicare Plan annuitants who retired
10 prior to January 1, 1988, the annuitant's share of
11 monthly premium for non-Medicare Plan coverage only shall
12 not exceed the highest premium rate chargeable under any
13 city non-Medicare Plan annuitant coverage as of December
14 1, 1996.
15 (2) For non-Medicare Plan annuitants who retire on
16 or after January 1, 1988, the annuitant's share of
17 monthly premium for non-Medicare Plan coverage only shall
18 be the rate in effect on December 1, 1996, with monthly
19 premium increases to take effect no sooner than April 1,
20 1998 at the lower of (i) the premium rate determined
21 pursuant to subsection (g) or (ii) 10% of the immediately
22 previous month's rate for similar coverage.
23 (3) In no event shall any non-Medicare Plan
24 annuitant's share of monthly premium for non-Medicare
25 Plan coverage exceed 10% of the annuitant's monthly
26 annuity.
27 (4) Non-Medicare Plan annuitants who are enrolled
28 in the basic city plan as of July 1, 1998 may remain in
29 the basic city plan, if they so choose, on the condition
30 that they are not entitled to the caps on rates set forth
31 in subparagraphs (1) through (3), and their premium rate
32 shall be the rate determined in accordance with
33 subsections (c) and (g).
34 (5) Medicare Plan annuitants who are currently
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1 enrolled in the basic city plan for Medicare eligible
2 annuitants may remain in that plan, if they so choose,
3 through June 30, 2002. Annuitants shall not be allowed
4 to enroll in or transfer into the basic city plan for
5 Medicare eligible annuitants on or after July 1, 1999.
6 The city shall continue to offer annuitants a
7 supplemental Medicare Plan for Medicare eligible
8 annuitants through June 30, 2002, and the city may offer
9 additional plans to Medicare eligible annuitants in its
10 sole discretion. All Medicare Plan annuitant monthly
11 rates shall be determined in accordance with subsections
12 (c) and (g).
13 (c) Effective the date the initial increased annuitant
14 payments pursuant to subsection (g) take effect, The city
15 shall pay 50% of the aggregated costs of the claims or
16 premiums, whichever is applicable, as determined in
17 accordance with subsection (g), of annuitants and their
18 dependents under all health care plans offered by the city.
19 The city may reduce its obligation by application of price
20 reductions obtained as a result of financial arrangements
21 with providers or plan administrators. The claims or
22 premiums of all annuitants and their dependents under all of
23 the plans offered by the city shall be aggregated for the
24 purpose of calculating the city's payment required under this
25 subsection, as well as for the setting of rates of payment
26 for annuitants as required under subsection (g).
27 (d) From January 1, 1988 until December 31, 1992, the
28 board 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 $65 per month
31 for each such annuitant who is not qualified to receive
32 medicare benefits, and up to a maximum of $35 per month for
33 each such annuitant who is qualified to receive medicare
34 benefits. From January 1, 1993 until June 30, 2002 December
-9- LRB9002941EGfg
1 31, 1997, the board shall pay to the city on behalf of each
2 of the board's annuitants who chooses to participate in any
3 of the city's plans the following amounts: up to a maximum of
4 $75 per month for each such annuitant who is not qualified to
5 receive medicare benefits, and up to a maximum of $45 per
6 month for each such annuitant who is qualified to receive
7 medicare benefits.
8 For the period January 1, 1988 through the effective date
9 of this amendatory Act of 1989, payments under this Section
10 shall be reduced by the amounts paid by or on behalf of the
11 board's annuitants covered during that period.
12 The payments described in this subsection shall be paid
13 from the tax levy authorized under Section 6-165; such
14 amounts shall be credited to the reserve for group hospital
15 care and group medical and surgical plan benefits, and all
16 payments to the city required under this subsection shall be
17 charged against it.
18 (e) The city's obligations under subsections (b) and (c)
19 shall terminate on June 30, 2002 December 31, 1997, except
20 with regard to covered expenses incurred but not paid as of
21 that date. This subsection shall not affect other
22 obligations that may be imposed by law.
23 (f) The group coverage plans described in this Section
24 are not and shall not be construed to be pension or
25 retirement benefits for purposes of Section 5 of Article XIII
26 of the Illinois Constitution of 1970.
27 (g) For each annuitant plan offered by the city, the
28 aggregate cost of claims, as reflected in the claim records
29 of the plan administrator, and premiums for each calendar
30 year from 1989 through 1997 of all annuitants and dependents
31 covered by the city's group health care plans shall be
32 estimated by the city, based upon a written determination by
33 a qualified independent actuary to be appointed and paid by
34 the city and the board. If the such estimated annual cost
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1 for each annuitant plan offered by the city is more than the
2 estimated amount to be contributed by the city for that plan
3 pursuant to subsections (b) and (c) during that year plus the
4 estimated amounts to be paid pursuant to subsection (d) and
5 by the other pension boards on behalf of other participating
6 annuitants, the difference shall be paid by all participating
7 annuitants participating in the plan, except as provided in
8 subsection (b). The city, based upon the determination of
9 the independent actuary, shall set the monthly amounts to be
10 paid by the participating annuitants. The initial
11 determination of such payments shall be prospective only and
12 shall be based upon the estimated costs for the balance of
13 the year. The board may deduct the amounts to be paid by its
14 annuitants from the participating annuitants' monthly
15 annuities.
16 If it is determined from the city's annual audit, or from
17 audited experience data, that the total amount paid by all
18 participating annuitants was more or less than the difference
19 between (1) the cost of providing the group health care
20 plans, and (2) the sum of the amount to be paid by the city
21 as determined under subsection (c) and the amounts paid by
22 all the pension boards, then the independent actuary and the
23 city shall account for the excess or shortfall in the next
24 year's payments by annuitants, except as provided in
25 subsection (b).
26 (h) An annuitant may elect to terminate coverage in a
27 plan at the end of any month any time, which election shall
28 terminate the annuitant's obligation to contribute toward
29 payment of the excess described in subsection (g).
30 (i) The city shall advise the board of all proposed
31 premium increases for health care at least 60 days prior to
32 the effective date of the change, and any increase shall be
33 prospective only.
34 (Source: P.A. 86-273.)
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1 (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
2 Sec. 8-164.1. Group health benefit.
3 (a) For the purposes of this Section: (1) "annuitant"
4 means a person receiving an age and service annuity, a prior
5 service annuity, a widow's annuity, a widow's prior service
6 annuity, or a minimum annuity on or after January 1, 1988,
7 under Article 5, 6, 8 or 11, by reason of previous employment
8 by the City of Chicago (hereinafter, in this Section, "the
9 city"); (2) "Medicare Plan annuitant" means an annuitant
10 described in item (1) who is eligible for Medicare benefits;
11 and (3) "non-Medicare Plan annuitant" means an annuitant
12 described in item (1) who is not eligible for Medicare
13 benefits.
14 (b) The city shall continue to offer group health
15 benefits to annuitants and their eligible dependents through
16 June 30, 2002. The same basic city health care plan
17 available as of June 30, 1988 (hereinafter called the basic
18 city plan) shall cease to be a plan offered by the city,
19 except as specified in subparagraphs (4) and (5) below, and
20 shall be closed to new enrollment or transfer of coverage for
21 any non-Medicare Plan annuitant as of the effective date of
22 this amendatory Act of 1997. The city shall offer
23 non-Medicare Plan annuitants and their eligible dependents
24 the option of enrolling in its Annuitant Preferred Provider
25 Plan, and may offer additional plans for any annuitant. The
26 city may amend, modify, or terminate any of its additional
27 plans at its sole discretion. If the city offers more than
28 one annuitant plan, the city shall allow annuitants to
29 convert coverage from one city annuitant plan to another,
30 except the basic city plan, during times designated by the
31 city, which periods of time shall occur at least annually.
32 For the period dating from the effective date of this
33 amendatory Act of 1997 through June 30, 2002, monthly premium
34 rates may be increased for annuitants during the time of
-12- LRB9002941EGfg
1 their participation in non-Medicare plans, except as provided
2 in subparagraphs (1) through (4) of this subsection.
3 (1) For non-Medicare Plan annuitants who retired
4 prior to January 1, 1988, the annuitant's share of
5 monthly premium for non-Medicare Plan coverage only shall
6 not exceed the highest premium rate chargeable under any
7 city non-Medicare Plan annuitant coverage as of December
8 1, 1996.
9 (2) For non-Medicare Plan annuitants who retire on
10 or after January 1, 1988, the annuitant's share of
11 monthly premium for non-Medicare Plan coverage only shall
12 be the rate in effect on December 1, 1996, with monthly
13 premium increases to take effect no sooner than April 1,
14 1998 at the lower of (i) the premium rate determined
15 pursuant to subsection (g) or (ii) 10% of the immediately
16 previous month's rate for similar coverage.
17 (3) In no event shall any non-Medicare Plan
18 annuitant's share of monthly premium for non-Medicare
19 Plan coverage exceed 10% of the annuitant's monthly
20 annuity.
21 (4) Non-Medicare Plan annuitants who are enrolled
22 in the basic city plan as of July 1, 1998 may remain in
23 the basic city plan, if they so choose, on the condition
24 that they are not entitled to the caps on rates set forth
25 in subparagraphs (1) through (3), and their premium rate
26 shall be the rate determined in accordance with
27 subsections (c) and (g).
28 (5) Medicare Plan annuitants who are currently
29 enrolled in the basic city plan for Medicare eligible
30 annuitants may remain in that plan, if they so choose,
31 through June 30, 2002. Annuitants shall not be allowed
32 to enroll in or transfer into the basic city plan for
33 Medicare eligible annuitants on or after July 1, 1999.
34 The city shall continue to offer annuitants a
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1 supplemental Medicare Plan for Medicare eligible
2 annuitants through June 30, 2002, and the city may offer
3 additional plans to Medicare eligible annuitants in its
4 sole discretion. All Medicare Plan annuitant monthly
5 rates shall be determined in accordance with subsections
6 (c) and (g).
7 (c) Effective the date the initial increased annuitant
8 payments pursuant to subsection (g) take effect, The city
9 shall pay 50% of the aggregated costs of the claims or
10 premiums, whichever is applicable, as determined in
11 accordance with subsection (g), of annuitants and their
12 dependents under all health care plans offered by the city.
13 The city may reduce its obligation by application of price
14 reductions obtained as a result of financial arrangements
15 with providers or plan administrators. The claims or
16 premiums of all annuitants and their dependents under all of
17 the plans offered by the city shall be aggregated for the
18 purpose of calculating the city's payment required under this
19 subsection, as well as for the setting of rates of payment
20 for annuitants as required under subsection (g).
21 (d) From January 1, 1988 until December 31, 1992, the
22 board 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 $65 per month
25 for each such annuitant who is not qualified to receive
26 medicare benefits, and up to a maximum of $35 per month for
27 each such annuitant who is qualified to receive medicare
28 benefits. From January 1, 1993 until June 30, 2002 December
29 31, 1997, the board shall pay to the city on behalf of each
30 of the board's annuitants who chooses to participate in any
31 of the city's plans the following amounts: up to a maximum of
32 $75 per month for each such annuitant who is not qualified to
33 receive medicare benefits, and up to a maximum of $45 per
34 month for each such annuitant who is qualified to receive
-14- LRB9002941EGfg
1 medicare benefits.
2 For the period January 1, 1988 through the effective date
3 of this amendatory Act of 1989, payments under this Section
4 shall be reduced by the amounts paid by or on behalf of the
5 board's annuitants covered during that period.
6 Commencing on the effective date of this amendatory Act
7 of 1989, the board is authorized to pay to the board of
8 education on behalf of each person who chooses to participate
9 in the board of education's plan the amounts specified in
10 this subsection (d) during the years indicated. For the
11 period January 1, 1988 through the effective date of this
12 amendatory Act of 1989, the board shall pay to the board of
13 education annuitants who participate in the board of
14 education's health benefits plan for annuitants the following
15 amounts: $10 per month to each annuitant who is not qualified
16 to receive medicare benefits, and $14 per month to each
17 annuitant who is qualified to receive medicare benefits.
18 The payments described in this subsection shall be paid
19 from the tax levy authorized under Section 8-189; such
20 amounts shall be credited to the reserve for group hospital
21 care and group medical and surgical plan benefits, and all
22 payments to the city required under this subsection shall be
23 charged against it.
24 (e) The city's obligations under subsections (b) and (c)
25 shall terminate on June 30, 2002 December 31, 1997, except
26 with regard to covered expenses incurred but not paid as of
27 that date. This subsection shall not affect other
28 obligations that may be imposed by law.
29 (f) The group coverage plans described in this Section
30 are not and shall not be construed to be pension or
31 retirement benefits for purposes of Section 5 of Article XIII
32 of the Illinois Constitution of 1970.
33 (g) For each annuitant plan offered by the city, the
34 aggregate cost of claims, as reflected in the claim records
-15- LRB9002941EGfg
1 of the plan administrator, and premiums for each calendar
2 year from 1989 through 1997 of all annuitants and dependents
3 covered by the city's group health care plans shall be
4 estimated by the city, based upon a written determination by
5 a qualified independent actuary to be appointed and paid by
6 the city and the board. If the such estimated annual cost
7 for each annuitant plan offered by the city is more than the
8 estimated amount to be contributed by the city for that plan
9 pursuant to subsections (b) and (c) during that year plus the
10 estimated amounts to be paid pursuant to subsection (d) and
11 by the other pension boards on behalf of other participating
12 annuitants, the difference shall be paid by all participating
13 annuitants participating in the plan, except as provided in
14 subsection (b). The city, based upon the determination of
15 the independent actuary, shall set the monthly amounts to be
16 paid by the participating annuitants. The initial
17 determination of such payments shall be prospective only and
18 shall be based upon the estimated costs for the balance of
19 the year. The board may deduct the amounts to be paid by its
20 annuitants from the participating annuitants' monthly
21 annuities.
22 If it is determined from the city's annual audit, or from
23 audited experience data, that the total amount paid by all
24 participating annuitants was more or less than the difference
25 between (1) the cost of providing the group health care
26 plans, and (2) the sum of the amount to be paid by the city
27 as determined under subsection (c) and the amounts paid by
28 all the pension boards, then the independent actuary and the
29 city shall account for the excess or shortfall in the next
30 year's payments by annuitants, except as provided in
31 subsection (b).
32 (h) An annuitant may elect to terminate coverage in a
33 plan at the end of any month any time, which election shall
34 terminate the annuitant's obligation to contribute toward
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1 payment of the excess described in subsection (g).
2 (i) The city shall advise the board of all proposed
3 premium increases for health care at least 60 days prior to
4 the effective date of the change, and any increase shall be
5 prospective only.
6 (Source: P.A. 86-273.)
7 (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
8 Sec. 11-160.1. Group health benefit.
9 (a) For the purposes of this Section: (1) "annuitant"
10 means a person receiving an age and service annuity, a prior
11 service annuity, a widow's annuity, a widow's prior service
12 annuity, or a minimum annuity on or after January 1, 1988,
13 under Article 5, 6, 8 or 11, by reason of previous employment
14 by the City of Chicago (hereinafter, in this Section, "the
15 city"); (2) "Medicare Plan annuitant" means an annuitant
16 described in item (1) who is eligible for Medicare benefits;
17 and (3) "non-Medicare Plan annuitant" means an annuitant
18 described in item (1) who is not eligible for Medicare
19 benefits.
20 (b) The city shall continue to offer group health
21 benefits to annuitants and their eligible dependents through
22 June 30, 2002. The same basic city health care plan
23 available as of June 30, 1988 (hereinafter called the basic
24 city plan) shall cease to be a plan offered by the city,
25 except as specified in subparagraphs (4) and (5) below, and
26 shall be closed to new enrollment or transfer of coverage for
27 any non-Medicare Plan annuitant as of the effective date of
28 this amendatory Act of 1997. The city shall offer
29 non-Medicare Plan annuitants and their eligible dependents
30 the option of enrolling in its Annuitant Preferred Provider
31 Plan, and may offer additional plans for any annuitant. The
32 city may amend, modify, or terminate any of its additional
33 plans at its sole discretion. If the city offers more than
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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 the effective date of this
6 amendatory Act of 1997 through June 30, 2002, monthly premium
7 rates may be increased for annuitants during the time of
8 their participation in non-Medicare plans, except as provided
9 in subparagraphs (1) through (4) of this 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).
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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, 2002. 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, 2002, 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) Effective the date the initial increased annuitant
15 payments pursuant to subsection (g) take effect, The city
16 shall pay 50% of the aggregated costs of the claims or
17 premiums, whichever is applicable, as determined in
18 accordance with subsection (g), of annuitants and their
19 dependents under all health care plans offered by the city.
20 The city may reduce its obligation by application of price
21 reductions obtained as a result of financial arrangements
22 with providers or plan administrators. The claims or
23 premiums of all annuitants and their dependents under all of
24 the plans offered by the city shall be aggregated for the
25 purpose of calculating the city's payment required under this
26 subsection, as well as for the setting of rates of payment
27 for annuitants as required under subsection (g).
28 (d) From January 1, 1988 until December 31, 1992, the
29 board shall pay to the city on behalf of each of the board's
30 annuitants who chooses to participate in any of the city's
31 plans the following amounts: up to a maximum of $65 per month
32 for each such annuitant who is not qualified to receive
33 medicare benefits, and up to a maximum of $35 per month for
34 each such annuitant who is qualified to receive medicare
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1 benefits. From January 1, 1993 until June 30, 2002 December
2 31, 1997, the board shall pay to the city on behalf of each
3 of the board's annuitants who chooses to participate in any
4 of the city's plans the following amounts: up to a maximum of
5 $75 per month for each such annuitant who is not qualified to
6 receive medicare benefits, and up to a maximum of $45 per
7 month for each such annuitant who is qualified to receive
8 medicare benefits.
9 For the period January 1, 1988 through the effective date
10 of this amendatory Act of 1989, payments under this Section
11 shall be reduced by the amounts paid by or on behalf of the
12 board's annuitants covered during that period.
13 The payments described in this subsection shall be paid
14 from the tax levy authorized under Section 11-178; such
15 amounts shall be credited to the reserve for group hospital
16 care and group medical and surgical plan benefits, and all
17 payments to the city required under this subsection shall be
18 charged against it.
19 (e) The city's obligations under subsections (b) and (c)
20 shall terminate on June 30, 2002 December 31, 1997, except
21 with regard to covered expenses incurred but not paid as of
22 that date. This subsection shall not affect other
23 obligations that may be imposed by law.
24 (f) The group coverage plans described in this Section
25 are not and shall not be construed to be pension or
26 retirement benefits for purposes of Section 5 of Article XIII
27 of the Illinois Constitution of 1970.
28 (g) For each annuitant plan offered by the city, the
29 aggregate cost of claims, as reflected in the claim records
30 of the plan administrator, and premiums for each calendar
31 year from 1989 through 1997 of all annuitants and dependents
32 covered by the city's group health care plans shall be
33 estimated by the city, based upon a written determination by
34 a qualified independent actuary to be appointed and paid by
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1 the city and the board. If the such estimated annual cost
2 for each annuitant plan offered by the city is more than the
3 estimated amount to be contributed by the city for that plan
4 pursuant to subsections (b) and (c) during that year plus the
5 estimated amounts to be paid pursuant to subsection (d) and
6 by the other pension boards on behalf of other participating
7 annuitants, the difference shall be paid by all participating
8 annuitants participating in the plan, except as provided in
9 subsection (b). The city, based upon the determination of
10 the independent actuary, shall set the monthly amounts to be
11 paid by the participating annuitants. The initial
12 determination of such payments shall be prospective only and
13 shall be based upon the estimated costs for the balance of
14 the year. The board may deduct the amounts to be paid by its
15 annuitants from the participating annuitants' monthly
16 annuities.
17 If it is determined from the city's annual audit, or from
18 audited experience data, that the total amount paid by all
19 participating annuitants was more or less than the difference
20 between (1) the cost of providing the group health care
21 plans, and (2) the sum of the amount to be paid by the city
22 as determined under subsection (c) and the amounts paid by
23 all the pension boards, then the independent actuary and the
24 city shall account for the excess or shortfall in the next
25 year's payments by annuitants, except as provided in
26 subsection (b).
27 (h) An annuitant may elect to terminate coverage in a
28 plan at the end of any month any time, which election shall
29 terminate the annuitant's obligation to contribute toward
30 payment of the excess described in subsection (g).
31 (i) The city shall advise the board of all proposed
32 premium increases for health care at least 60 days prior to
33 the effective date of the change, and any increase shall be
34 prospective only.
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1 (Source: P.A. 86-273.)
2 Section 90. The State Mandates Act is amended by adding
3 Section 8.21 as follows:
4 (30 ILCS 805/8.21 new)
5 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
6 and 8 of this Act, no reimbursement by the State is required
7 for the implementation of any mandate created by this
8 amendatory Act of 1997.
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.