State of Illinois
92nd General Assembly
Legislation

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92_HB0181

 
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 1        AN ACT concerning government employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State Employees Group Insurance Act of
 5    1971 is amended by changing Section 3 as follows:

 6        (5 ILCS 375/3) (from Ch. 127, par. 523)
 7        Sec.  3.  Definitions.   Unless  the  context   otherwise
 8    requires, the following words and phrases as used in this Act
 9    shall have the following meanings.  The Department may define
10    these  and other words and phrases separately for the purpose
11    of implementing specific programs  providing  benefits  under
12    this Act.
13        (a)  "Administrative   service  organization"  means  any
14    person, firm or corporation experienced in  the  handling  of
15    claims  which  is  fully  qualified,  financially  sound  and
16    capable  of meeting the service requirements of a contract of
17    administration executed with the Department.
18        (b)  "Annuitant" means (1) an employee  who  retires,  or
19    has  retired,  on  or  after  January 1, 1966 on an immediate
20    annuity under the provisions of Articles 2, 14, 15 (including
21    an employee who has retired  under  the  optional  retirement
22    program  established under Section 15-158.2), paragraphs (2),
23    (3), or (5) of Section 16-106, or Article 18 of the  Illinois
24    Pension   Code;  (2)  any  person  who  was  receiving  group
25    insurance coverage under this Act as of  March  31,  1978  by
26    reason of his status as an annuitant, even though the annuity
27    in  relation  to  which  such  coverage  was  provided  is  a
28    proportional annuity based on less than the minimum period of
29    service  required  for  a  retirement  annuity  in the system
30    involved; (3) any person not otherwise covered  by  this  Act
31    who  has retired as a participating member under Article 2 of
 
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 1    the  Illinois  Pension  Code  but  is  ineligible   for   the
 2    retirement  annuity  under  Section  2-119  of  the  Illinois
 3    Pension Code; (4) the spouse of any person who is receiving a
 4    retirement  annuity  under Article 18 of the Illinois Pension
 5    Code and who  is  covered  under  a  group  health  insurance
 6    program  sponsored  by a governmental employer other than the
 7    State of Illinois and who has irrevocably  elected  to  waive
 8    his  or  her  coverage  under this Act and to have his or her
 9    spouse considered as the "annuitant" under this Act  and  not
10    as  a  "dependent";  or  (5)  an employee who retires, or has
11    retired, from a qualified position, as  determined  according
12    to rules promulgated by the Director, under a qualified local
13    government  or  a  qualified  rehabilitation  facility  or  a
14    qualified   domestic   violence   shelter  or  service.  (For
15    definition of "retired employee", see (p) post).
16        (b-5)  "New SERS annuitant" means a  person  who,  on  or
17    after  January  1,  1998, becomes an annuitant, as defined in
18    subsection  (b),  by  virtue  of  beginning  to   receive   a
19    retirement  annuity  under Article 14 of the Illinois Pension
20    Code, and is eligible to participate in the basic program  of
21    group health benefits provided for annuitants under this Act.
22        (b-6)  "New  SURS annuitant" means a person who (1) on or
23    after January 1, 1998, becomes an annuitant,  as  defined  in
24    subsection   (b),   by  virtue  of  beginning  to  receive  a
25    retirement annuity under Article 15 of the  Illinois  Pension
26    Code,  (2) has not made the election authorized under Section
27    15-135.1 of the Illinois Pension Code, and (3) is eligible to
28    participate in the basic program  of  group  health  benefits
29    provided for annuitants under this Act.
30        (b-7)  "New  TRS  State annuitant" means a person who, on
31    or after July 1, 1998, becomes an annuitant,  as  defined  in
32    subsection   (b),   by  virtue  of  beginning  to  receive  a
33    retirement annuity under Article 16 of the  Illinois  Pension
34    Code  based  on  service as a teacher as defined in paragraph
 
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 1    (2), (3), or (5) of Section  16-106  of  that  Code,  and  is
 2    eligible  to participate in the basic program of group health
 3    benefits provided for annuitants under this Act.
 4        (c)  "Carrier"  means  (1)  an   insurance   company,   a
 5    corporation   organized  under  the  Limited  Health  Service
 6    Organization Act or the Voluntary Health Services Plan Act, a
 7    partnership, or other nongovernmental organization, which  is
 8    authorized  to  do  group  life  or  group  health  insurance
 9    business  in  Illinois,  or  (2)  the  State of Illinois as a
10    self-insurer.
11        (d)  "Compensation" means salary or wages  payable  on  a
12    regular  payroll  by  the State Treasurer on a warrant of the
13    State Comptroller out of any State, trust or federal fund, or
14    by the Governor of the State through a disbursing officer  of
15    the  State  out of a trust or out of federal funds, or by any
16    Department out of State, trust, federal or other  funds  held
17    by  the  State Treasurer or the Department, to any person for
18    personal  services  currently  performed,  and  ordinary   or
19    accidental  disability  benefits  under  Articles  2,  14, 15
20    (including ordinary or accidental disability  benefits  under
21    the  optional  retirement  program  established under Section
22    15-158.2), paragraphs (2), (3), or (5) of Section 16-106,  or
23    Article  18  of  the  Illinois  Pension  Code, for disability
24    incurred after January 1, 1966, or benefits payable under the
25    Workers'  Compensation  or  Occupational  Diseases   Act   or
26    benefits  payable  under  a  sick  pay  plan  established  in
27    accordance   with  Section  36  of  the  State  Finance  Act.
28    "Compensation" also means salary or wages paid to an employee
29    of any qualified local government or qualified rehabilitation
30    facility or a qualified domestic violence shelter or service.
31        (e)  "Commission"  means  the   State   Employees   Group
32    Insurance   Advisory   Commission  authorized  by  this  Act.
33    Commencing July 1, 1984, "Commission" as  used  in  this  Act
34    means   the   Illinois  Economic  and  Fiscal  Commission  as
 
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 1    established by the Legislative Commission Reorganization  Act
 2    of 1984.
 3        (f)  "Contributory",  when  referred  to  as contributory
 4    coverage, shall mean optional coverages or  benefits  elected
 5    by  the  member  toward  the  cost of which such member makes
 6    contribution, or which are funded in whole or in part through
 7    the acceptance of a reduction in earnings or the foregoing of
 8    an increase in earnings by an employee, as distinguished from
 9    noncontributory coverage or benefits which are paid  entirely
10    by  the  State  of Illinois without reduction of the member's
11    salary.
12        (g)  "Department"  means  any  department,   institution,
13    board,  commission, officer, court or any agency of the State
14    government  receiving  appropriations  and  having  power  to
15    certify payrolls to the Comptroller authorizing  payments  of
16    salary  and  wages against such appropriations as are made by
17    the General Assembly from any State fund,  or  against  trust
18    funds  held  by  the  State  Treasurer and includes boards of
19    trustees of the retirement systems created by Articles 2, 14,
20    15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
21    also  includes  the  Illinois  Comprehensive Health Insurance
22    Board, the Board of Examiners established under the  Illinois
23    Public Accounting Act, and the Illinois Rural Bond Bank.
24        (h)  "Dependent", when the term is used in the context of
25    the  health  and  life  plan, means a member's spouse and any
26    unmarried child (1) from birth to age 19 including an adopted
27    child, a child who lives with the member from the time of the
28    filing of a petition for adoption until entry of an order  of
29    adoption,  a stepchild or recognized child who lives with the
30    member in a parent-child relationship, or a child  who  lives
31    with  the member if such member is a court appointed guardian
32    of the child, or (2) age 19 to 23  enrolled  as  a  full-time
33    student  in any accredited school, financially dependent upon
34    the member, and eligible to be claimed  as  a  dependent  for
 
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 1    income tax purposes, or (3) age 19 or over who is mentally or
 2    physically  handicapped.  For  the health plan only, the term
 3    "dependent" also includes any person enrolled  prior  to  the
 4    effective  date  of  this  Section  who is dependent upon the
 5    member to the extent that the member may claim such person as
 6    a dependent for income tax deduction purposes; no other  such
 7    person may be enrolled.
 8        (i)  "Director"   means  the  Director  of  the  Illinois
 9    Department of Central Management Services.
10        (j)  "Eligibility period" means  the  period  of  time  a
11    member  has  to  elect  enrollment  in  programs or to select
12    benefits without regard to age, sex or health.
13        (k)  "Employee"  means  and  includes  each  officer   or
14    employee  in the service of a department who (1) receives his
15    compensation for service rendered  to  the  department  on  a
16    warrant   issued   pursuant  to  a  payroll  certified  by  a
17    department or on a warrant or check issued  and  drawn  by  a
18    department  upon  a  trust,  federal  or  other  fund or on a
19    warrant issued pursuant to a payroll certified by an  elected
20    or  duly  appointed  officer  of  the  State  or who receives
21    payment of the performance of personal services on a  warrant
22    issued  pursuant  to  a payroll certified by a Department and
23    drawn by the Comptroller upon  the  State  Treasurer  against
24    appropriations  made by the General Assembly from any fund or
25    against trust funds held by the State Treasurer, and  (2)  is
26    employed  full-time  or  part-time  in  a  position  normally
27    requiring actual performance of duty during not less than 1/2
28    of  a  normal  work period, as established by the Director in
29    cooperation with each department, except that persons elected
30    by popular vote  will  be  considered  employees  during  the
31    entire  term  for  which they are elected regardless of hours
32    devoted to the service of the  State,  and  (3)  except  that
33    "employee" does not include any person who is not eligible by
34    reason  of  such person's employment to participate in one of
 
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 1    the State retirement systems under Articles 2, 14, 15 (either
 2    the regular Article 15  system  or  the  optional  retirement
 3    program  established  under Section 15-158.2) or 18, or under
 4    paragraph (2), (3), or (5) of Section 16-106, of the Illinois
 5    Pension Code, but such term  does  include  persons  who  are
 6    employed  during  the 6 month qualifying period under Article
 7    14 of the Illinois Pension Code.  Such term also includes any
 8    person who (1) after January 1, 1966, is  receiving  ordinary
 9    or  accidental  disability  benefits under Articles 2, 14, 15
10    (including ordinary or accidental disability  benefits  under
11    the  optional  retirement  program  established under Section
12    15-158.2), paragraphs (2), (3), or (5) of Section 16-106,  or
13    Article  18  of  the  Illinois  Pension  Code, for disability
14    incurred after January 1, 1966, (2) receives total  permanent
15    or total temporary disability under the Workers' Compensation
16    Act  or  Occupational  Disease  Act  as  a result of injuries
17    sustained or illness contracted in the course  of  employment
18    with  the  State of Illinois, or (3) is not otherwise covered
19    under this Act and has  retired  as  a  participating  member
20    under   Article  2  of  the  Illinois  Pension  Code  but  is
21    ineligible for the retirement annuity under Section 2-119  of
22    the  Illinois  Pension Code.  However, a person who satisfies
23    the criteria of the foregoing definition of "employee" except
24    that such person is made ineligible  to  participate  in  the
25    State   Universities  Retirement  System  by  clause  (4)  of
26    subsection (a) of Section 15-107 of the Illinois Pension Code
27    is  also  an  "employee"  for  the  purposes  of  this   Act.
28    "Employee" also includes any person receiving or eligible for
29    benefits under a sick pay plan established in accordance with
30    Section 36 of the State Finance Act. "Employee" also includes
31    each  officer or employee in the service of a qualified local
32    government,  including  persons  appointed  as  trustees   of
33    sanitary districts regardless of hours devoted to the service
34    of the sanitary district, and each employee in the service of
 
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 1    a   qualified  rehabilitation  facility  and  each  full-time
 2    employee in the service  of  a  qualified  domestic  violence
 3    shelter   or   service,  as  determined  according  to  rules
 4    promulgated by the Director.
 5        (l)  "Member"  means  an  employee,  annuitant,   retired
 6    employee or survivor.
 7        (m)  "Optional   coverages   or   benefits"  means  those
 8    coverages or benefits available to the member on his  or  her
 9    voluntary election, and at his or her own expense.
10        (n)  "Program"  means  the  group  life insurance, health
11    benefits and other employee benefits designed and  contracted
12    for by the Director under this Act.
13        (o)  "Health   plan"  means  a  health  benefits  program
14    offered by the State of Illinois for persons eligible for the
15    plan.
16        (p)  "Retired employee" means any person who would be  an
17    annuitant  as  that  term  is defined herein but for the fact
18    that such person retired prior to January 1, 1966.  Such term
19    also includes any person formerly employed by the  University
20    of Illinois in the Cooperative Extension Service who would be
21    an  annuitant  but  for  the  fact  that such person was made
22    ineligible  to  participate   in   the   State   Universities
23    Retirement  System by clause (4) of subsection (a) of Section
24    15-107 of the Illinois Pension Code.
25        (q)  "Survivor" means a person receiving an annuity as  a
26    survivor  of an employee or of an annuitant.  "Survivor" also
27    includes:  (1)  the  surviving  dependent  of  a  person  who
28    satisfies the  definition  of  "employee"  except  that  such
29    person  is  made  ineligible  to  participate  in  the  State
30    Universities  Retirement  System  by clause (4) of subsection
31    (a) of Section 15-107 of the Illinois Pension Code;  and  (2)
32    the  surviving  dependent  of any person formerly employed by
33    the University  of  Illinois  in  the  Cooperative  Extension
34    Service  who  would  be an annuitant except for the fact that
 
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 1    such person was made ineligible to participate in  the  State
 2    Universities  Retirement  System  by clause (4) of subsection
 3    (a) of Section 15-107 of the Illinois Pension Code.
 4        (q-5)  "New SERS survivor" means a survivor,  as  defined
 5    in  subsection (q), whose annuity is paid under Article 14 of
 6    the Illinois Pension Code and is based on the death of (i) an
 7    employee whose death occurs on or after January 1,  1998,  or
 8    (ii) a new SERS annuitant as defined in subsection (b-5).
 9        (q-6)  "New  SURS  survivor" means a survivor, as defined
10    in subsection (q), whose annuity is paid under Article 15  of
11    the Illinois Pension Code and is based on the death of (i) an
12    employee  whose  death occurs on or after January 1, 1998, or
13    (ii) a new SURS annuitant as defined in subsection (b-6).
14        (q-7)  "New TRS State  survivor"  means  a  survivor,  as
15    defined  in  subsection  (q),  whose  annuity  is  paid under
16    Article 16 of the Illinois Pension Code and is based  on  the
17    death  of  (i)  an  employee  who  is a teacher as defined in
18    paragraph (2), (3), or (5) of Section 16-106 of that Code and
19    whose death occurs on or after July 1, 1998, or  (ii)  a  new
20    TRS State annuitant as defined in subsection (b-7).
21        (r)  "Medical   services"  means  the  services  provided
22    within the scope of their licenses by  practitioners  in  all
23    categories licensed under the Medical Practice Act of 1987.
24        (s)  "Unit   of   local  government"  means  any  county,
25    municipality,  township,   school   district   (including   a
26    combination  of  school districts under the Intergovernmental
27    Cooperation Act), special district or other unit,  designated
28    as a unit of local government by law, which exercises limited
29    governmental   powers   or   powers  in  respect  to  limited
30    governmental subjects, any not-for-profit association with  a
31    membership  that  primarily  includes  townships and township
32    officials, that has duties that include provision of research
33    service, dissemination of information, and other acts for the
34    purpose of improving township government, and that is  funded
 
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 1    wholly  or  partly  in  accordance  with Section 85-15 of the
 2    Township Code; any not-for-profit corporation or association,
 3    with a membership  consisting  primarily  of  municipalities,
 4    that  operates its own utility system, and provides research,
 5    training, dissemination of  information,  or  other  acts  to
 6    promote  cooperation  between  and  among municipalities that
 7    provide utility services and for the advancement of the goals
 8    and  purposes  of  its  membership;  the  Southern   Illinois
 9    Collegiate  Common  Market,  which  is a consortium of higher
10    education institutions in Southern Illinois; and the Illinois
11    Association of Park Districts.  "Qualified local  government"
12    means a unit of local government approved by the Director and
13    participating  in  a  program created under subsection (i) of
14    Section 10 of this Act.
15        (t)  "Qualified  rehabilitation   facility"   means   any
16    not-for-profit   organization   that  is  accredited  by  the
17    Commission on Accreditation of Rehabilitation  Facilities  or
18    certified  by  the Department of Human Services (as successor
19    to  the  Department  of  Mental  Health   and   Developmental
20    Disabilities)   to   provide   services   to   persons   with
21    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 Department of Human
28    Services (as successor to the Illinois Department  of  Public
29    Aid), approved by the Director and participating in a program
30    created under subsection (k) of Section 10.
31        (v)  "TRS benefit recipient" means a person who:
32             (1)  is  not  a "member" as defined in this Section;
33        and
34             (2)  is receiving a monthly  benefit  or  retirement
 
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 1        annuity  under  Article  16 of the Illinois Pension Code;
 2        and
 3             (3)  either (i) has at least 8 years  of  creditable
 4        service under Article 16 of the Illinois Pension Code, or
 5        (ii) was enrolled in the health insurance program offered
 6        under  that  Article  on January 1, 1996, or (iii) is the
 7        survivor of a benefit recipient who had at least 8  years
 8        of  creditable  service  under Article 16 of the Illinois
 9        Pension Code or was  enrolled  in  the  health  insurance
10        program  offered under that Article on the effective date
11        of this amendatory Act of 1995, or (iv) is a recipient or
12        survivor of a recipient of  a  disability  benefit  under
13        Article 16 of the Illinois Pension Code.
14        (w)  "TRS dependent beneficiary" means a person who:
15             (1)  is  not a "member" or "dependent" as defined in
16        this Section; and
17             (2)  is a TRS benefit recipient's: (A)  spouse,  (B)
18        dependent parent who is receiving at least half of his or
19        her  support  from  the  TRS  benefit  recipient,  or (C)
20        unmarried natural or adopted child who is (i)  under  age
21        19,  or  (ii)  enrolled  as  a  full-time  student  in an
22        accredited school, financially  dependent  upon  the  TRS
23        benefit  recipient, eligible to be claimed as a dependent
24        for income tax purposes, and either is under  age  24  or
25        was,  on  January  1,  1996, participating as a dependent
26        beneficiary in the health insurance program offered under
27        Article 16 of the Illinois Pension Code, or (iii) age  19
28        or over who is mentally or physically handicapped.
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
 
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 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        (z)  "Community college benefit recipient" means a person
 5    who:
 6             (1)  is  not  a "member" as defined in this Section;
 7        and
 8             (2)  is receiving a monthly  survivor's  annuity  or
 9        retirement  annuity  under  Article  15  of  the Illinois
10        Pension Code; and
11             (3)  either  (i)  was  a  full-time  employee  of  a
12        community college district or an association of community
13        college boards created under the Public Community College
14        Act (other than an employee  whose  last  employer  under
15        Article  15  of the Illinois Pension Code was a community
16        college district subject to Article  VII  of  the  Public
17        Community College Act) and was eligible to participate in
18        a  group  health  benefit  plan as an employee during the
19        time of employment  with  a  community  college  district
20        (other  than  a  community  college  district  subject to
21        Article VII of the Public Community College  Act)  or  an
22        association  of  community college boards, or (ii) is the
23        survivor of a person described in item (i).
24        (aa)  "Community college dependent beneficiary"  means  a
25    person who:
26             (1)  is  not a "member" or "dependent" as defined in
27        this Section; and
28             (2)  is a community college benefit recipient's: (A)
29        spouse, (B) dependent parent who is  receiving  at  least
30        half  of  his  or  her support from the community college
31        benefit recipient, or (C) unmarried  natural  or  adopted
32        child  who  is  (i)  under  age 19, or (ii) enrolled as a
33        full-time student in an  accredited  school,  financially
34        dependent  upon  the community college benefit recipient,
 
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 1        eligible to be claimed as  a  dependent  for  income  tax
 2        purposes  and  under  age 23, or (iii) age 19 or over and
 3        mentally or physically handicapped.
 4    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
 5    eff. 8-16-97; 90-497, eff.  8-18-97;  90-511,  eff.  8-22-97;
 6    90-582,  eff.  5-27-98;  90-655,  eff.  7-30-98; 91-390, eff.
 7    7-30-99; 91-395, eff. 7-30-99; 91-617, eff, 8-19-99;  revised
 8    10-19-99.)

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