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| [ Senate Amendment 001 ] |
90_SB0668
5 ILCS 375/3 from Ch. 127, par. 523
5 ILCS 375/6.6
40 ILCS 5/16-151 from Ch. 108 1/2, par. 16-151
40 ILCS 5/16-155 from Ch. 108 1/2, par. 16-155
40 ILCS 5/16-158.1 from Ch. 108 1/2, par. 16-158.1
40 ILCS 5/16-169.1 new
40 ILCS 5/16-179 from Ch. 108 1/2, par. 16-179
40 ILCS 5/16-181.3 new
40 ILCS 5/16-185 from Ch. 108 1/2, par. 16-185
40 ILCS 5/16-187 from Ch. 108 1/2, par. 16-187
Amends the State Employees Group Insurance Act of 1971 in
relation to health benefits for retired teachers. Eliminates
coverage of certain dependent students who are age 23. Makes
changes relating to the required contribution for annuitant
health benefits that must be paid by persons establishing
certain optional service credits in the Teachers' Retirement
System. Amends the Downstate Teacher Article of the Pension
Code. Permits the secretary of the Board to issue subpoenas.
Permits the Board to adopt rules affecting the repayment of
refunds, the purchase of optional service credits, the
acceptance of partial payments, and the calculation of
interest. Specifies that certain employee contributions that
accrue during periods of disability are not refundable.
Makes changes in provisions governing the valuation of the
System's investments. Removes the requirement that the
president of the board approve all vouchers. Changes certain
requirements relating to educational employers. Effective
immediately.
LRB9002140EGfg
LRB9002140EGfg
1 AN ACT in relation to benefits for retired teachers and
2 their dependents, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Employees Group Insurance Act of
6 1971 is amended by changing Sections 3 and 6.6 as follows:
7 (5 ILCS 375/3) (from Ch. 127, par. 523)
8 (Text of Section before amendment by P.A. 89-507)
9 Sec. 3. Definitions. Unless the context otherwise
10 requires, the following words and phrases as used in this Act
11 shall have the following meanings. The Department may define
12 these and other words and phrases separately for the purpose
13 of implementing specific programs providing benefits under
14 this Act.
15 (a) "Administrative service organization" means any
16 person, firm or corporation experienced in the handling of
17 claims which is fully qualified, financially sound and
18 capable of meeting the service requirements of a contract of
19 administration executed with the Department.
20 (b) "Annuitant" means (1) an employee who retires, or
21 has retired, on or after January 1, 1966 on an immediate
22 annuity under the provisions of Articles 2, 14, 15 (including
23 an employee who has retired and is receiving a retirement
24 annuity under an optional program established under Section
25 15-158.2 and who would also be eligible for a retirement
26 annuity had that person been a participant in the State
27 University Retirement System), paragraphs (b) or (c) of
28 Section 16-106, or Article 18 of the Illinois Pension Code;
29 (2) any person who was receiving group insurance coverage
30 under this Act as of March 31, 1978 by reason of his status
31 as an annuitant, even though the annuity in relation to which
-2- LRB9002140EGfg
1 such coverage was provided is a proportional annuity based on
2 less than the minimum period of service required for a
3 retirement annuity in the system involved; (3) any person not
4 otherwise covered by this Act who has retired as a
5 participating member under Article 2 of the Illinois Pension
6 Code but is ineligible for the retirement annuity under
7 Section 2-119 of the Illinois Pension Code; (4) the spouse of
8 any person who is receiving a retirement annuity under
9 Article 18 of the Illinois Pension Code and who is covered
10 under a group health insurance program sponsored by a
11 governmental employer other than the State of Illinois and
12 who has irrevocably elected to waive his or her coverage
13 under this Act and to have his or her spouse considered as
14 the "annuitant" under this Act and not as a "dependent"; or
15 (5) an employee who retires, or has retired, from a qualified
16 position, as determined according to rules promulgated by the
17 Director, under a qualified local government or a qualified
18 rehabilitation facility or a qualified domestic violence
19 shelter or service. (For definition of "retired employee",
20 see (p) post).
21 (c) "Carrier" means (1) an insurance company, a
22 corporation organized under the Limited Health Service
23 Organization Act or the Voluntary Health Services Plan Act, a
24 partnership, or other nongovernmental organization, which is
25 authorized to do group life or group health insurance
26 business in Illinois, or (2) the State of Illinois as a
27 self-insurer.
28 (d) "Compensation" means salary or wages payable on a
29 regular payroll by the State Treasurer on a warrant of the
30 State Comptroller out of any State, trust or federal fund, or
31 by the Governor of the State through a disbursing officer of
32 the State out of a trust or out of federal funds, or by any
33 Department out of State, trust, federal or other funds held
34 by the State Treasurer or the Department, to any person for
-3- LRB9002140EGfg
1 personal services currently performed, and ordinary or
2 accidental disability benefits under Articles 2, 14, 15
3 (including ordinary or accidental disability benefits under
4 an optional program established under Section 15-158.2),
5 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
6 Illinois Pension Code, for disability incurred after January
7 1, 1966, or benefits payable under the Workers' Compensation
8 or Occupational Diseases Act or benefits payable under a sick
9 pay plan established in accordance with Section 36 of the
10 State Finance Act. "Compensation" also means salary or wages
11 paid to an employee of any qualified local government or
12 qualified rehabilitation facility or a qualified domestic
13 violence shelter or service.
14 (e) "Commission" means the State Employees Group
15 Insurance Advisory Commission authorized by this Act.
16 Commencing July 1, 1984, "Commission" as used in this Act
17 means the Illinois Economic and Fiscal Commission as
18 established by the Legislative Commission Reorganization Act
19 of 1984.
20 (f) "Contributory", when referred to as contributory
21 coverage, shall mean optional coverages or benefits elected
22 by the member toward the cost of which such member makes
23 contribution, or which are funded in whole or in part through
24 the acceptance of a reduction in earnings or the foregoing of
25 an increase in earnings by an employee, as distinguished from
26 noncontributory coverage or benefits which are paid entirely
27 by the State of Illinois without reduction of the member's
28 salary.
29 (g) "Department" means any department, institution,
30 board, commission, officer, court or any agency of the State
31 government receiving appropriations and having power to
32 certify payrolls to the Comptroller authorizing payments of
33 salary and wages against such appropriations as are made by
34 the General Assembly from any State fund, or against trust
-4- LRB9002140EGfg
1 funds held by the State Treasurer and includes boards of
2 trustees of the retirement systems created by Articles 2, 14,
3 15, 16 and 18 of the Illinois Pension Code. "Department"
4 also includes the Illinois Comprehensive Health Insurance
5 Board and the Illinois Rural Bond Bank.
6 (h) "Dependent", when the term is used in the context of
7 the health and life plan, means a member's spouse and any
8 unmarried child (1) from birth to age 19 including an adopted
9 child, a child who lives with the member from the time of the
10 filing of a petition for adoption until entry of an order of
11 adoption, a stepchild or recognized child who lives with the
12 member in a parent-child relationship, or a child who lives
13 with the member if such member is a court appointed guardian
14 of the child, or (2) age 19 to 23 enrolled as a full-time
15 student in any accredited school, financially dependent upon
16 the member, and eligible as a dependent for Illinois State
17 income tax purposes, or (3) age 19 or over who is mentally or
18 physically handicapped as defined in the Illinois Insurance
19 Code. For the health plan only, the term "dependent" also
20 includes any person enrolled prior to the effective date of
21 this Section who is dependent upon the member to the extent
22 that the member may claim such person as a dependent for
23 Illinois State income tax deduction purposes; no other such
24 person may be enrolled.
25 (i) "Director" means the Director of the Illinois
26 Department of Central Management Services.
27 (j) "Eligibility period" means the period of time a
28 member has to elect enrollment in programs or to select
29 benefits without regard to age, sex or health.
30 (k) "Employee" means and includes each officer or
31 employee in the service of a department who (1) receives his
32 compensation for service rendered to the department on a
33 warrant issued pursuant to a payroll certified by a
34 department or on a warrant or check issued and drawn by a
-5- LRB9002140EGfg
1 department upon a trust, federal or other fund or on a
2 warrant issued pursuant to a payroll certified by an elected
3 or duly appointed officer of the State or who receives
4 payment of the performance of personal services on a warrant
5 issued pursuant to a payroll certified by a Department and
6 drawn by the Comptroller upon the State Treasurer against
7 appropriations made by the General Assembly from any fund or
8 against trust funds held by the State Treasurer, and (2) is
9 employed full-time or part-time in a position normally
10 requiring actual performance of duty during not less than 1/2
11 of a normal work period, as established by the Director in
12 cooperation with each department, except that persons elected
13 by popular vote will be considered employees during the
14 entire term for which they are elected regardless of hours
15 devoted to the service of the State, and (3) except that
16 "employee" does not include any person who is not eligible by
17 reason of such person's employment to participate in one of
18 the State retirement systems under Articles 2, 14, 15 (either
19 the regular Article 15 system or an optional program
20 established under Section 15-158.2) or 18, or under paragraph
21 (b) or (c) of Section 16-106, of the Illinois Pension Code,
22 but such term does include persons who are employed during
23 the 6 month qualifying period under Article 14 of the
24 Illinois Pension Code. Such term also includes any person
25 who (1) after January 1, 1966, is receiving ordinary or
26 accidental disability benefits under Articles 2, 14, 15
27 (including ordinary or accidental disability benefits under
28 an optional program established under Section 15-158.2),
29 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
30 Illinois Pension Code, for disability incurred after January
31 1, 1966, (2) receives total permanent or total temporary
32 disability under the Workers' Compensation Act or
33 Occupational Disease Act as a result of injuries sustained or
34 illness contracted in the course of employment with the State
-6- LRB9002140EGfg
1 of Illinois, or (3) is not otherwise covered under this Act
2 and has retired as a participating member under Article 2 of
3 the Illinois Pension Code but is ineligible for the
4 retirement annuity under Section 2-119 of the Illinois
5 Pension Code. However, a person who satisfies the criteria
6 of the foregoing definition of "employee" except that such
7 person is made ineligible to participate in the State
8 Universities Retirement System by clause (4) of the first
9 paragraph of Section 15-107 of the Illinois Pension Code is
10 also an "employee" for the purposes of this Act. "Employee"
11 also includes any person receiving or eligible for benefits
12 under a sick pay plan established in accordance with Section
13 36 of the State Finance Act. "Employee" also includes each
14 officer or employee in the service of a qualified local
15 government, including persons appointed as trustees of
16 sanitary districts regardless of hours devoted to the service
17 of the sanitary district, and each employee in the service of
18 a qualified rehabilitation facility and each full-time
19 employee in the service of a qualified domestic violence
20 shelter or service, as determined according to rules
21 promulgated by the Director.
22 (l) "Member" means an employee, annuitant, retired
23 employee or survivor.
24 (m) "Optional coverages or benefits" means those
25 coverages or benefits available to the member on his or her
26 voluntary election, and at his or her own expense.
27 (n) "Program" means the group life insurance, health
28 benefits and other employee benefits designed and contracted
29 for by the Director under this Act.
30 (o) "Health plan" means a self-insured health insurance
31 program offered by the State of Illinois for the purposes of
32 benefiting employees by means of providing, among others,
33 wellness programs, utilization reviews, second opinions and
34 medical fee reviews, as well as for paying for hospital and
-7- LRB9002140EGfg
1 medical care up to the maximum coverage provided by the plan,
2 to its members and their dependents.
3 (p) "Retired employee" means any person who would be an
4 annuitant as that term is defined herein but for the fact
5 that such person retired prior to January 1, 1966. Such term
6 also includes any person formerly employed by the University
7 of Illinois in the Cooperative Extension Service who would be
8 an annuitant but for the fact that such person was made
9 ineligible to participate in the State Universities
10 Retirement System by clause (4) of the first paragraph of
11 Section 15-107 of the Illinois Pension Code.
12 (q) "Survivor" means a person receiving an annuity as a
13 survivor of an employee or of an annuitant. "Survivor" also
14 includes: (1) the surviving dependent of a person who
15 satisfies the definition of "employee" except that such
16 person is made ineligible to participate in the State
17 Universities Retirement System by clause (4) of the first
18 paragraph of Section 15-107 of the Illinois Pension Code; and
19 (2) the surviving dependent of any person formerly employed
20 by the University of Illinois in the Cooperative Extension
21 Service who would be an annuitant except for the fact that
22 such person was made ineligible to participate in the State
23 Universities Retirement System by clause (4) of the first
24 paragraph of Section 15-107 of the Illinois Pension Code.
25 (r) "Medical services" means the services provided
26 within the scope of their licenses by practitioners in all
27 categories licensed under the Medical Practice Act of 1987.
28 (s) "Unit of local government" means any county,
29 municipality, township, school district, special district or
30 other unit, designated as a unit of local government by law,
31 which exercises limited governmental powers or powers in
32 respect to limited governmental subjects, any not-for-profit
33 association with a membership that primarily includes
34 townships and township officials, that has duties that
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1 include provision of research service, dissemination of
2 information, and other acts for the purpose of improving
3 township government, and that is funded wholly or partly in
4 accordance with Section 85-15 of the Township Code; any
5 not-for-profit corporation or association, with a membership
6 consisting primarily of municipalities, that operates its own
7 utility system, and provides research, training,
8 dissemination of information, or other acts to promote
9 cooperation between and among municipalities that provide
10 utility services and for the advancement of the goals and
11 purposes of its membership; and the Illinois Association of
12 Park Districts. "Qualified local government" means a unit of
13 local government approved by the Director and participating
14 in a program created under subsection (i) of Section 10 of
15 this Act.
16 (t) "Qualified rehabilitation facility" means any
17 not-for-profit organization that is accredited by the
18 Commission on Accreditation of Rehabilitation Facilities or
19 certified by the Department of Mental Health and
20 Developmental Disabilities to provide services to persons
21 with disabilities and which receives funds from the State of
22 Illinois for providing those services, approved by the
23 Director and participating in a program created under
24 subsection (j) of Section 10 of this Act.
25 (u) "Qualified domestic violence shelter or service"
26 means any Illinois domestic violence shelter or service and
27 its administrative offices funded by the Illinois Department
28 of Public Aid, approved by the Director and participating in
29 a program created under subsection (k) of Section 10.
30 (v) "TRS benefit recipient" means a person who:
31 (1) is not a "member" as defined in this Section;
32 and
33 (2) is receiving a monthly benefit or retirement
34 annuity under Article 16 of the Illinois Pension Code;
-9- LRB9002140EGfg
1 and
2 (3) either (i) has at least 8 years of creditable
3 service under Article 16 of the Illinois Pension Code, or
4 (ii) was enrolled in the health insurance program offered
5 under that Article on January 1, 1996, or (iii) is the
6 survivor of a benefit recipient who had at least 8 years
7 of creditable service under Article 16 of the Illinois
8 Pension Code or was enrolled in the health insurance
9 program offered under that Article on the effective date
10 of this amendatory Act of 1995, or (iv) is a recipient or
11 survivor of a recipient of a disability benefit under
12 Article 16 of the Illinois Pension Code.
13 (w) "TRS dependent beneficiary" means a person who:
14 (1) is not a "member" or "dependent" as defined in
15 this Section; and
16 (2) is a TRS benefit recipient's: (A) spouse, (B)
17 dependent parent who is receiving at least half of his or
18 her support from the TRS benefit recipient, or (C)
19 unmarried natural or adopted child who is (i) under age
20 19, or (ii) enrolled as a full-time student in an
21 accredited school, financially dependent upon the TRS
22 benefit recipient, eligible as a dependent for Illinois
23 State income tax purposes, and either is under age 23 24
24 or was, on January 1, 1996, participating as a dependent
25 beneficiary in the health insurance program offered under
26 Article 16 of the Illinois Pension Code, or (iii) age 19
27 or over who is mentally or physically handicapped as
28 defined in the Illinois Insurance Code.
29 (x) "Military leave with pay and benefits" refers to
30 individuals in basic training for reserves, special/advanced
31 training, annual training, emergency call up, or activation
32 by the President of the United States with approved pay and
33 benefits.
34 (y) "Military leave without pay and benefits" refers to
-10- LRB9002140EGfg
1 individuals who enlist for active duty in a regular component
2 of the U.S. Armed Forces or other duty not specified or
3 authorized under military leave with pay and benefits.
4 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
5 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
6 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
7 eff. 8-9-96; revised 8-23-96.)
8 (Text of Section after amendment by P.A. 89-507)
9 Sec. 3. Definitions. Unless the context otherwise
10 requires, the following words and phrases as used in this Act
11 shall have the following meanings. The Department may define
12 these and other words and phrases separately for the purpose
13 of implementing specific programs providing benefits under
14 this Act.
15 (a) "Administrative service organization" means any
16 person, firm or corporation experienced in the handling of
17 claims which is fully qualified, financially sound and
18 capable of meeting the service requirements of a contract of
19 administration executed with the Department.
20 (b) "Annuitant" means (1) an employee who retires, or
21 has retired, on or after January 1, 1966 on an immediate
22 annuity under the provisions of Articles 2, 14, 15 (including
23 an employee who has retired and is receiving a retirement
24 annuity under an optional program established under Section
25 15-158.2 and who would also be eligible for a retirement
26 annuity had that person been a participant in the State
27 University Retirement System), paragraphs (b) or (c) of
28 Section 16-106, or Article 18 of the Illinois Pension Code;
29 (2) any person who was receiving group insurance coverage
30 under this Act as of March 31, 1978 by reason of his status
31 as an annuitant, even though the annuity in relation to which
32 such coverage was provided is a proportional annuity based on
33 less than the minimum period of service required for a
34 retirement annuity in the system involved; (3) any person not
-11- LRB9002140EGfg
1 otherwise covered by this Act who has retired as a
2 participating member under Article 2 of the Illinois Pension
3 Code but is ineligible for the retirement annuity under
4 Section 2-119 of the Illinois Pension Code; (4) the spouse of
5 any person who is receiving a retirement annuity under
6 Article 18 of the Illinois Pension Code and who is covered
7 under a group health insurance program sponsored by a
8 governmental employer other than the State of Illinois and
9 who has irrevocably elected to waive his or her coverage
10 under this Act and to have his or her spouse considered as
11 the "annuitant" under this Act and not as a "dependent"; or
12 (5) an employee who retires, or has retired, from a qualified
13 position, as determined according to rules promulgated by the
14 Director, under a qualified local government or a qualified
15 rehabilitation facility or a qualified domestic violence
16 shelter or service. (For definition of "retired employee",
17 see (p) post).
18 (c) "Carrier" means (1) an insurance company, a
19 corporation organized under the Limited Health Service
20 Organization Act or the Voluntary Health Services Plan Act, a
21 partnership, or other nongovernmental organization, which is
22 authorized to do group life or group health insurance
23 business in Illinois, or (2) the State of Illinois as a
24 self-insurer.
25 (d) "Compensation" means salary or wages payable on a
26 regular payroll by the State Treasurer on a warrant of the
27 State Comptroller out of any State, trust or federal fund, or
28 by the Governor of the State through a disbursing officer of
29 the State out of a trust or out of federal funds, or by any
30 Department out of State, trust, federal or other funds held
31 by the State Treasurer or the Department, to any person for
32 personal services currently performed, and ordinary or
33 accidental disability benefits under Articles 2, 14, 15
34 (including ordinary or accidental disability benefits under
-12- LRB9002140EGfg
1 an optional program established under Section 15-158.2),
2 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
3 Illinois Pension Code, for disability incurred after January
4 1, 1966, or benefits payable under the Workers' Compensation
5 or Occupational Diseases Act or benefits payable under a sick
6 pay plan established in accordance with Section 36 of the
7 State Finance Act. "Compensation" also means salary or wages
8 paid to an employee of any qualified local government or
9 qualified rehabilitation facility or a qualified domestic
10 violence shelter or service.
11 (e) "Commission" means the State Employees Group
12 Insurance Advisory Commission authorized by this Act.
13 Commencing July 1, 1984, "Commission" as used in this Act
14 means the Illinois Economic and Fiscal Commission as
15 established by the Legislative Commission Reorganization Act
16 of 1984.
17 (f) "Contributory", when referred to as contributory
18 coverage, shall mean optional coverages or benefits elected
19 by the member toward the cost of which such member makes
20 contribution, or which are funded in whole or in part through
21 the acceptance of a reduction in earnings or the foregoing of
22 an increase in earnings by an employee, as distinguished from
23 noncontributory coverage or benefits which are paid entirely
24 by the State of Illinois without reduction of the member's
25 salary.
26 (g) "Department" means any department, institution,
27 board, commission, officer, court or any agency of the State
28 government receiving appropriations and having power to
29 certify payrolls to the Comptroller authorizing payments of
30 salary and wages against such appropriations as are made by
31 the General Assembly from any State fund, or against trust
32 funds held by the State Treasurer and includes boards of
33 trustees of the retirement systems created by Articles 2, 14,
34 15, 16 and 18 of the Illinois Pension Code. "Department"
-13- LRB9002140EGfg
1 also includes the Illinois Comprehensive Health Insurance
2 Board and the Illinois Rural Bond Bank.
3 (h) "Dependent", when the term is used in the context of
4 the health and life plan, means a member's spouse and any
5 unmarried child (1) from birth to age 19 including an adopted
6 child, a child who lives with the member from the time of the
7 filing of a petition for adoption until entry of an order of
8 adoption, a stepchild or recognized child who lives with the
9 member in a parent-child relationship, or a child who lives
10 with the member if such member is a court appointed guardian
11 of the child, or (2) age 19 to 23 enrolled as a full-time
12 student in any accredited school, financially dependent upon
13 the member, and eligible as a dependent for Illinois State
14 income tax purposes, or (3) age 19 or over who is mentally or
15 physically handicapped as defined in the Illinois Insurance
16 Code. For the health plan only, the term "dependent" also
17 includes any person enrolled prior to the effective date of
18 this Section who is dependent upon the member to the extent
19 that the member may claim such person as a dependent for
20 Illinois State income tax deduction purposes; no other such
21 person may be enrolled.
22 (i) "Director" means the Director of the Illinois
23 Department of Central Management Services.
24 (j) "Eligibility period" means the period of time a
25 member has to elect enrollment in programs or to select
26 benefits without regard to age, sex or health.
27 (k) "Employee" means and includes each officer or
28 employee in the service of a department who (1) receives his
29 compensation for service rendered to the department on a
30 warrant issued pursuant to a payroll certified by a
31 department or on a warrant or check issued and drawn by a
32 department upon a trust, federal or other fund or on a
33 warrant issued pursuant to a payroll certified by an elected
34 or duly appointed officer of the State or who receives
-14- LRB9002140EGfg
1 payment of the performance of personal services on a warrant
2 issued pursuant to a payroll certified by a Department and
3 drawn by the Comptroller upon the State Treasurer against
4 appropriations made by the General Assembly from any fund or
5 against trust funds held by the State Treasurer, and (2) is
6 employed full-time or part-time in a position normally
7 requiring actual performance of duty during not less than 1/2
8 of a normal work period, as established by the Director in
9 cooperation with each department, except that persons elected
10 by popular vote will be considered employees during the
11 entire term for which they are elected regardless of hours
12 devoted to the service of the State, and (3) except that
13 "employee" does not include any person who is not eligible by
14 reason of such person's employment to participate in one of
15 the State retirement systems under Articles 2, 14, 15 (either
16 the regular Article 15 system or an optional program
17 established under Section 15-158.2) or 18, or under paragraph
18 (b) or (c) of Section 16-106, of the Illinois Pension Code,
19 but such term does include persons who are employed during
20 the 6 month qualifying period under Article 14 of the
21 Illinois Pension Code. Such term also includes any person
22 who (1) after January 1, 1966, is receiving ordinary or
23 accidental disability benefits under Articles 2, 14, 15
24 (including ordinary or accidental disability benefits under
25 an optional program established under Section 15-158.2),
26 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
27 Illinois Pension Code, for disability incurred after January
28 1, 1966, (2) receives total permanent or total temporary
29 disability under the Workers' Compensation Act or
30 Occupational Disease Act as a result of injuries sustained or
31 illness contracted in the course of employment with the State
32 of Illinois, or (3) is not otherwise covered under this Act
33 and has retired as a participating member under Article 2 of
34 the Illinois Pension Code but is ineligible for the
-15- LRB9002140EGfg
1 retirement annuity under Section 2-119 of the Illinois
2 Pension Code. However, a person who satisfies the criteria
3 of the foregoing definition of "employee" except that such
4 person is made ineligible to participate in the State
5 Universities Retirement System by clause (4) of the first
6 paragraph of Section 15-107 of the Illinois Pension Code is
7 also an "employee" for the purposes of this Act. "Employee"
8 also includes any person receiving or eligible for benefits
9 under a sick pay plan established in accordance with Section
10 36 of the State Finance Act. "Employee" also includes each
11 officer or employee in the service of a qualified local
12 government, including persons appointed as trustees of
13 sanitary districts regardless of hours devoted to the service
14 of the sanitary district, and each employee in the service of
15 a qualified rehabilitation facility and each full-time
16 employee in the service of a qualified domestic violence
17 shelter or service, as determined according to rules
18 promulgated by the Director.
19 (l) "Member" means an employee, annuitant, retired
20 employee or survivor.
21 (m) "Optional coverages or benefits" means those
22 coverages or benefits available to the member on his or her
23 voluntary election, and at his or her own expense.
24 (n) "Program" means the group life insurance, health
25 benefits and other employee benefits designed and contracted
26 for by the Director under this Act.
27 (o) "Health plan" means a self-insured health insurance
28 program offered by the State of Illinois for the purposes of
29 benefiting employees by means of providing, among others,
30 wellness programs, utilization reviews, second opinions and
31 medical fee reviews, as well as for paying for hospital and
32 medical care up to the maximum coverage provided by the plan,
33 to its members and their dependents.
34 (p) "Retired employee" means any person who would be an
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1 annuitant as that term is defined herein but for the fact
2 that such person retired prior to January 1, 1966. Such term
3 also includes any person formerly employed by the University
4 of Illinois in the Cooperative Extension Service who would be
5 an annuitant but for the fact that such person was made
6 ineligible to participate in the State Universities
7 Retirement System by clause (4) of the first paragraph of
8 Section 15-107 of the Illinois Pension Code.
9 (q) "Survivor" means a person receiving an annuity as a
10 survivor of an employee or of an annuitant. "Survivor" also
11 includes: (1) the surviving dependent of a person who
12 satisfies the definition of "employee" except that such
13 person is made ineligible to participate in the State
14 Universities Retirement System by clause (4) of the first
15 paragraph of Section 15-107 of the Illinois Pension Code; and
16 (2) the surviving dependent of any person formerly employed
17 by the University of Illinois in the Cooperative Extension
18 Service who would be an annuitant except for the fact that
19 such person was made ineligible to participate in the State
20 Universities Retirement System by clause (4) of the first
21 paragraph of Section 15-107 of the Illinois Pension Code.
22 (r) "Medical services" means the services provided
23 within the scope of their licenses by practitioners in all
24 categories licensed under the Medical Practice Act of 1987.
25 (s) "Unit of local government" means any county,
26 municipality, township, school district, special district or
27 other unit, designated as a unit of local government by law,
28 which exercises limited governmental powers or powers in
29 respect to limited governmental subjects, any not-for-profit
30 association with a membership that primarily includes
31 townships and township officials, that has duties that
32 include provision of research service, dissemination of
33 information, and other acts for the purpose of improving
34 township government, and that is funded wholly or partly in
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1 accordance with Section 85-15 of the Township Code; any
2 not-for-profit corporation or association, with a membership
3 consisting primarily of municipalities, that operates its own
4 utility system, and provides research, training,
5 dissemination of information, or other acts to promote
6 cooperation between and among municipalities that provide
7 utility services and for the advancement of the goals and
8 purposes of its membership; and the Illinois Association of
9 Park Districts. "Qualified local government" means a unit of
10 local government approved by the Director and participating
11 in a program created under subsection (i) of Section 10 of
12 this Act.
13 (t) "Qualified rehabilitation facility" means any
14 not-for-profit organization that is accredited by the
15 Commission on Accreditation of Rehabilitation Facilities or
16 certified by the Department of Human Services (as successor
17 to the Department of Mental Health and Developmental
18 Disabilities) to provide services to persons with
19 disabilities and which receives funds from the State of
20 Illinois for providing those services, approved by the
21 Director and participating in a program created under
22 subsection (j) of Section 10 of this Act.
23 (u) "Qualified domestic violence shelter or service"
24 means any Illinois domestic violence shelter or service and
25 its administrative offices funded by the Department of Human
26 Services (as successor to the Illinois Department of Public
27 Aid), approved by the Director and participating in a program
28 created under subsection (k) of Section 10.
29 (v) "TRS benefit recipient" means a person who:
30 (1) is not a "member" as defined in this Section;
31 and
32 (2) is receiving a monthly benefit or retirement
33 annuity under Article 16 of the Illinois Pension Code;
34 and
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1 (3) either (i) has at least 8 years of creditable
2 service under Article 16 of the Illinois Pension Code, or
3 (ii) was enrolled in the health insurance program offered
4 under that Article on January 1, 1996, or (iii) is the
5 survivor of a benefit recipient who had at least 8 years
6 of creditable service under Article 16 of the Illinois
7 Pension Code or was enrolled in the health insurance
8 program offered under that Article on the effective date
9 of this amendatory Act of 1995, or (iv) is a recipient or
10 survivor of a recipient of a disability benefit under
11 Article 16 of the Illinois Pension Code.
12 (w) "TRS dependent beneficiary" means a person who:
13 (1) is not a "member" or "dependent" as defined in
14 this Section; and
15 (2) is a TRS benefit recipient's: (A) spouse, (B)
16 dependent parent who is receiving at least half of his or
17 her support from the TRS benefit recipient, or (C)
18 unmarried natural or adopted child who is (i) under age
19 19, or (ii) enrolled as a full-time student in an
20 accredited school, financially dependent upon the TRS
21 benefit recipient, eligible as a dependent for Illinois
22 State income tax purposes, and either is under age 23 24
23 or was, on January 1, 1996, participating as a dependent
24 beneficiary in the health insurance program offered under
25 Article 16 of the Illinois Pension Code, or (iii) age 19
26 or over who is mentally or physically handicapped as
27 defined in the Illinois Insurance Code.
28 (x) "Military leave with pay and benefits" refers to
29 individuals in basic training for reserves, special/advanced
30 training, annual training, emergency call up, or activation
31 by the President of the United States with approved pay and
32 benefits.
33 (y) "Military leave without pay and benefits" refers to
34 individuals who enlist for active duty in a regular component
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1 of the U.S. Armed Forces or other duty not specified or
2 authorized under military leave with pay and benefits.
3 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
4 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
5 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
6 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
7 (5 ILCS 375/6.6)
8 Sec. 6.6. Contributions to the Teacher Health Insurance
9 Security Fund.
10 (a) Beginning July 1, 1995, all active contributors of
11 the Teachers' Retirement System (established under Article 16
12 of the Illinois Pension Code) who are not employees of a
13 department as defined in Section 3 of this Act shall make
14 contributions toward the cost of annuitant and survivor
15 health benefits at the rate of 0.5% of salary.
16 These contributions shall be deducted by the employer and
17 paid to the System as service agent for the Department of
18 Central Management Services. The System may use the same
19 processes for collecting the contributions required by this
20 subsection that it uses to collect contributions received
21 from school districts and other covered employers under
22 Sections 16-154 and 16-155 of the Illinois Pension Code. An
23 employer may agree to pick up or pay the contributions
24 required under this subsection on behalf of the teacher; such
25 contributions shall be deemed to have been paid by the
26 teacher.
27 A person required to make contributions under this
28 subsection (a) who purchases optional service credit under
29 Article 16 of the Illinois Pension Code for a period services
30 actually performed after June 30, 1995 must also make a
31 contribution under this subsection for that optional credit,
32 at the applicable rate of 0.5% of the salary used in
33 computing the optional service credit, based on the required
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1 employee contributions for that optional service credit, plus
2 the interest on this those employee contribution
3 contributions. This contribution shall be collected by the
4 System as service agent for the Department of Central
5 Management Services. at the time of receiving The
6 contribution required under this subsection for the optional
7 service credit must be paid in full before any annuity based
8 on that credit begins.
9 (b) The Teachers' Retirement System shall promptly
10 deposit all moneys collected under subsection (a) of this
11 Section into the Teacher Health Insurance Security Fund
12 created in Section 6.5 of this Act. The moneys collected
13 under this Section shall be used only for the purposes
14 authorized in Section 6.5 of this Act and shall not be
15 considered to be assets of the Teachers' Retirement System.
16 Contributions made under this Section are not transferable to
17 other pension funds or retirement systems and are not
18 refundable upon termination of service.
19 (c) On or before November 15 of each year, the Board of
20 Trustees of the Teachers' Retirement System shall certify to
21 the Governor, the Director of Central Management Services,
22 and the State Comptroller its estimate of the total amount of
23 contributions to be paid under subsection (a) of this Section
24 6.6 for the next fiscal year. The certification shall
25 include a detailed explanation of the methods and information
26 that the Board relied upon in preparing its estimate. As
27 soon as possible after the effective date of this Section,
28 the Board shall submit its estimate for fiscal year 1996.
29 (d) Beginning in fiscal year 1996, on the first day of
30 each month, or as soon thereafter as may be practical, the
31 State Treasurer and the State Comptroller shall transfer from
32 the General Revenue Fund to the Teacher Health Insurance
33 Security Fund 1/12 of the annual amount appropriated for that
34 fiscal year to the State Comptroller for deposit into the
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1 Teacher Health Insurance Security Fund under Section 1.3 of
2 the State Pension Funds Continuing Appropriation Act.
3 (e) Except where otherwise specified in this Section,
4 the definitions that apply to Article 16 of the Illinois
5 Pension Code apply to this Section.
6 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
7 Section 10. The Illinois Pension Code is amended by
8 changing Sections 16-151, 16-155, 16-158.1, 16-179, 16-185,
9 and 16-187 and adding Sections 16-169.1 and 16-181.3 as
10 follows:
11 (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
12 Sec. 16-151. Refund. Upon termination of employment as a
13 teacher for any cause other than death or retirement, a
14 member shall be paid the following amount upon demand made at
15 least not previous to 4 months after ceasing to teach:
16 (1) from the Members' Contribution Reserve, the
17 actual total contributions paid by or on behalf of the
18 member for membership service which have not been
19 previously refunded and which are then credited to the
20 member's individual account in the Members' Contribution
21 Reserve, without interest thereon, and
22 (2) from the Employer's Contribution Reserve, the
23 actual contributions not previously refunded, paid by or
24 on behalf of the member for prior service and towards the
25 cost of the automatic annual increase in retirement
26 annuity as provided under Section 16-152, without
27 interest thereon.
28 Any such amounts may be paid to the member either in one
29 sum or, at the election of the board, in 4 quarterly
30 payments.
31 Contributions credited to a member for periods of
32 disability as provided in Sections 16-149 and 16-149.1 are
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1 not refundable.
2 Upon acceptance of a refund, all accrued rights and
3 credits in the System are forfeited and may be reinstated
4 only if the refund is repaid together with interest from the
5 date of the refund to the date of repayment at the following
6 rates compounded annually: for periods prior to July 1,
7 1965, regular interest; for periods from July 1, 1965 to June
8 30, 1977, 4% per year; for periods on and after July 1, 1977,
9 regular interest. Repayment shall be permitted upon return to
10 membership; however, service credit previously forfeited by a
11 refund and subsequently reinstated may not be used as a basis
12 for the payment of benefits, other than a refund of
13 contributions, prior to the completion of one year of
14 creditable service following the refund, except when
15 repayment is permitted under the provisions of the
16 "Retirement Systems Reciprocal Act" contained in Article 20.
17 (Source: P.A. 83-1440.)
18 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
19 Sec. 16-155. Report to system and payment of deductions.
20 (a) The governing body of each school district shall
21 make two deposits each month. The deposit for member
22 contributions for salary paid between the first and the
23 fifteenth of the month is due by the 25th of the month. The
24 deposit of member contributions for salary paid between the
25 sixteenth and last day of the month is due by the 10th of the
26 following month. All required contributions for salary
27 earned during a school term are due by July 10 next following
28 the close of such school term.
29 The governing body of each State institution coming under
30 this retirement system, the State Comptroller or other State
31 officer certifying payroll vouchers including payments of
32 salary or wages to teachers, and any other employer of
33 teachers, shall, monthly, forward to the secretary of the
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1 retirement system the member contributions required under
2 this Article.
3 Each employer specified above shall, prior to August 15
4 of each year, forward to the System a detailed statement,
5 verified in all cases of school districts by the secretary or
6 clerk of the district, of the amounts so contributed since
7 the period covered by the last previous annual statement,
8 together with required contributions not yet forwarded, such
9 payments being payable to the System.
10 The board may prescribe rules governing the form,
11 content, investigation, control, and supervision of such
12 statements. The governing body of each school district
13 shall, at the same time, send a copy of the statement to the
14 regional superintendent of schools for the region in which
15 the district under its control is located. If no teacher in
16 a school district comes under the provisions of this Article,
17 the governing body of the district shall so state under the
18 oath of its secretary to this system, and shall at the same
19 time forward a copy of the statement to the regional
20 superintendent of schools.
21 (b) If the governing body of an employer that is not a
22 State agency a school district fails to forward such required
23 contributions within the time permitted in subsection (a)
24 above, the System shall notify the district of an additional
25 amount due, equal to the greater of the following: (1) an
26 amount representing the interest lost by the system due to
27 late forwarding of contributions, calculated for the number
28 of days which the school district is late in forwarding
29 contributions at a rate of interest prescribed by the board,
30 based on its investment experience; or (2) $50.
31 (c) If the system, on August 15, is not in receipt of
32 the detailed statements required under this Section of any
33 school district or other employing unit, such school district
34 or other employing unit shall pay to the system an amount
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1 equal to $250 for each day that elapses from August 15, until
2 the day such statement is filed with the system.
3 (Source: P.A. 86-273.)
4 (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
5 Sec. 16-158.1. Actions to enforce payments by school
6 districts and other employing units. Any school district or
7 other employing unit failing to transmit to the System
8 contributions required of it under this Article or
9 contributions required of teachers, for more than 90 days
10 after such contributions are due is subject to the following:
11 after giving notice to the district or other unit, the System
12 may certify to the State Comptroller or the Regional
13 Superintendent of Schools the amounts of such delinquent
14 payments and the State Comptroller or the Regional
15 Superintendent of Schools shall deduct the amounts so
16 certified or any part thereof from any grants of State funds
17 to be remitted to the school district or other employing unit
18 involved and shall pay the amount so deducted to the System.
19 If State funds from which such deductions may be made are not
20 available, the System may proceed against the school district
21 or other employing unit to recover the amounts of such
22 delinquent payments in the appropriate circuit court.
23 The System may provide for an audit of the records of a
24 school district or other employing unit as may be required to
25 establish the amounts of required contributions. The school
26 district or other employing unit shall make its records
27 available to the System for the purpose of such audit. The
28 cost of such audit shall be added to the amount of the
29 delinquent payments and shall be recovered by the System from
30 the school district or other employing unit at the same time
31 and in the same manner as the delinquent payments are
32 recovered.
33 (Source: P.A. 85-1008.)
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1 (40 ILCS 5/16-169.1 new)
2 Sec. 16-169.1. Testimony and the production of records.
3 The secretary of the Board shall have the power to issue
4 subpoenas to compel the attendance of witnesses and the
5 production of documents and records, including law
6 enforcement records maintained by law enforcement agencies,
7 in conjunction with a disability claim, administrative review
8 proceeding, or felony forfeiture investigation. The fees of
9 witnesses for attendance and travel shall be the same as the
10 fees of witnesses before the circuit courts of this State and
11 shall be paid by the party seeking the subpoena. The Board
12 may apply to any circuit court in the State for an order
13 requiring compliance with a subpoena issued under this
14 Section. Subpoenas issued under this Section shall be
15 subject to applicable provisions of the Code of Civil
16 Procedure.
17 (40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
18 Sec. 16-179. To be trustee of reserves and to invest
19 funds. To be the trustee of the reserves created under this
20 Article, and to invest and reinvest such reserves, subject to
21 the requirements and restrictions set forth in Sections
22 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
23 No bank or savings and loan association shall receive
24 investment funds as permitted by this Section, unless it has
25 complied with the requirements established pursuant to
26 Section 6 of "An Act relating to certain investments of
27 public funds by public agencies", approved July 23, 1943, as
28 now or hereafter amended. The limitations set forth in such
29 Section 6 shall be applicable only at the time of investment
30 and shall not require the liquidation of any investment at
31 any time.
32 The board shall have the authority to enter into such
33 agreements and to execute such documents as it determines to
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1 be necessary to complete any investment transaction.
2 All investments shall be clearly held and accounted for
3 to indicate ownership by the system. The board may direct
4 the registration of securities or the holding in interests in
5 real property in the name of the system or in the name of a
6 nominee created for the express purpose of registration of
7 securities or holding interests in real property by a
8 national or state bank or trust company authorized to conduct
9 a trust business in the State of Illinois. The board may
10 hold title to interests in real property in the name of the
11 system or in the name of a title holding corporation created
12 for the express purpose of holding title to interests in real
13 property.
14 Investments shall be carried at cost or at a book value
15 determined in accordance with generally accepted accounting
16 principles. No adjustments shall be made in investment
17 carrying values for ordinary current market price
18 fluctuations; but reserves may be provided to account for
19 possible losses or unrealized gains.
20 The book value of investments held by the retirement
21 system in one or more commingled investment accounts shall be
22 the cost of its units of participation in such commingled
23 account or accounts.
24 (Source: P.A. 86-272.)
25 (40 ILCS 5/16-181.3 new)
26 Sec. 16-181.3. To prescribe the manner of payment. To
27 prescribe by rule the manner of repaying refunds and
28 purchasing the various optional service credits permitted
29 under this Article. The rules may prescribe the conditions
30 under which installment payments or partial payments may be
31 accepted and may specify the method of computing any interest
32 due.
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1 (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
2 Sec. 16-185. Employer's contribution reserve.
3 (a) The Employer's Contribution Reserve shall serve as a
4 clearing account for income and expenses of the System as
5 well as transfers to and from the other reserve accounts
6 established under this Article and adjustments thereto.
7 (b) This reserve shall be credited with:
8 (1) All amounts contributed by the State, except
9 those credited to other reserve accounts as provided in
10 this Article.
11 (2) The total member and employer contributions
12 except those required by other reserve accounts.
13 (3) The total income from invested assets of the
14 System, and other miscellaneous income.
15 (4) The interest portion of the accumulated
16 contributions of members granted refunds.
17 (5) Contributions made by annuitants to qualify for
18 automatic annual increases in annuity, except those
19 required by other reserve accounts.
20 (c) This reserve shall be charged with:
21 (1) All amounts necessary to be transferred to the
22 Members' Contribution Reserve.
23 (2) All retirement annuity, single-sum retirement
24 benefit and disability retirement annuity payments,
25 including automatic annual increases in annuities, except
26 as provided by other reserve accounts.
27 (3) All amounts necessary to be refunded to
28 withdrawing members except as provided by the Members'
29 Contribution Reserve.
30 (4) All benefits paid to temporarily or
31 accidentally disabled members of this System, and all
32 amounts credited to the accounts of such disabled members
33 in lieu of contributions.
34 (5) All amounts payable as death benefits except as
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1 provided by the Members' Contribution Reserve.
2 (6) All amounts necessary for the payment of costs
3 for the health insurance program as provided under this
4 Article.
5 (7) All survivor benefit contributions refunded to
6 an annuitant as provided under Section 16-143.2.
7 (8) All amounts paid in accordance with Section
8 16-131.1 except as provided by the Members' Contribution
9 Reserve.
10 (9) Interest to be credited to other reserve
11 accounts as specified in this Article.
12 (10) Recognition of unrealized gains or losses in
13 market value, upon adoption of generally accepted
14 accounting principles that allow for such recognition.
15 (Source: P.A. 88-593, eff. 8-22-94; 89-235, eff. 8-4-95.)
16 (40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
17 Sec. 16-187. Custodian of fund - warrants and vouchers -
18 audits. (a) The State Treasurer is ex-officio custodian of
19 the funds of the retirement system. He or she may process
20 payments from the funds of the system for the purposes herein
21 specified upon warrants or direct deposit transmittals of the
22 State Comptroller. Commencing January 1, 1987, the State
23 Treasurer shall credit interest, at current rates, for any
24 monies directly held. Such interest shall be calculated
25 using an average daily cash basis. He or she shall be liable
26 on the Treasurer's official bond for the proper performance
27 of duties and be held accountable for all cash and securities
28 in his or her custody. He or she shall keep books and
29 accounts in the manner prescribed by the board, and they
30 shall always be subject to the inspection of the board or any
31 member thereof.
32 (b) The State Comptroller may draw warrants or prepare
33 direct deposit transmittals payable from the fund upon the
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1 State Treasurer for the purposes herein provided upon the
2 presentation of vouchers approved by the president and the
3 secretary of the board. The board shall file with the State
4 Comptroller an attested copy of a resolution designating such
5 persons as his authority for making payments upon such
6 vouchers.
7 (c) At the end of each fiscal year, the board shall have
8 the accounts and records of the system audited by a person
9 authorized to practice public accounting under the laws of
10 this state selected by the Auditor General. Copies of all
11 audits performed shall be filed with the State Board of
12 Education and the Auditor General.
13 (Source: P.A. 85-1008.)
14 Section 95. No acceleration or delay. Where this Act
15 makes changes in a statute that is represented in this Act by
16 text that is not yet or no longer in effect (for example, a
17 Section represented by multiple versions), the use of that
18 text does not accelerate or delay the taking effect of (i)
19 the changes made by this Act or (ii) provisions derived from
20 any other Public Act.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.