Public Act 093-0042
Public Act 93-0042 of the 93rd General Assembly
Public Act 93-0042
SB1701 Enrolled LRB093 02819 LRD 02835 b
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 5-167.5, 6-142.2, 8-164.1, and 11-160.1 and
adding Sections 8-164.2 and 11-160.2 as follows:
(40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
Sec. 5-167.5. Payments to city Group health benefit.
(a) For the purposes of this Section, "city annuitant"
means a person receiving an age and service annuity, a
widow's annuity, a child's annuity, or a minimum annuity
under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the
board's city annuitants who participate in any of the city's
health care plans, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85
per month for each such annuitant who is not eligible to
receive Medicare benefits and $55 per month for each such
annuitant who is eligible to receive Medicare benefits.
(2) From July 1, 2008 through June 30, 2013, $95
per month for each such annuitant who is not eligible to
receive Medicare benefits and $65 per month for each such
annuitant who is eligible to receive Medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 5-168; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(c) The city health care plans referred to in this
Section and the board's payments to the city under this
Section are not and shall not be construed to be pension or
retirement benefits for the purposes of Section 5 of Article
XIII of the Illinois Constitution of 1970.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003. The basic city health care plan available as of June
30, 1988 (hereinafter called the basic city plan) shall cease
to be a plan offered by the city, except as specified in
subparagraphs (4) and (5) below, and shall be closed to new
enrollment or transfer of coverage for any non-Medicare Plan
annuitant as of June 27, 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from June 27, 1997 through June 30,
2003, monthly premium rates may be increased for annuitants
during the time of their participation in non-Medicare plans,
except as provided in subparagraphs (1) through (4) of this
subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003, the board
shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 5-168; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)
(40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
Sec. 6-164.2. Payments to city Group health benefit.
(a) For the purposes of this Section, "city annuitant"
means a person receiving an age and service annuity, a
widow's annuity, a child's annuity, or a minimum annuity
under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the
board's city annuitants who participate in any of the city's
health care plans, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85
per month for each such annuitant who is not eligible to
receive Medicare benefits and $55 per month for each such
annuitant who is eligible to receive Medicare benefits.
(2) From July 1, 2008 through June 30, 2013, $95
per month for each such annuitant who is not eligible to
receive Medicare benefits and $65 per month for each such
annuitant who is eligible to receive Medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 6-165; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(c) The city health care plans referred to in this
Section and the board's payments to the city under this
Section are not and shall not be construed to be pension or
retirement benefits for the purposes of Section 5 of Article
XIII of the Illinois Constitution of 1970.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003. The basic city health care plan available as of June
30, 1988 (hereinafter called the basic city plan) shall cease
to be a plan offered by the city, except as specified in
subparagraphs (4) and (5) below, and shall be closed to new
enrollment or transfer of coverage for any non-Medicare Plan
annuitant as of June 27, 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from June 27, 1997 through June 30,
2003, monthly premium rates may be increased for annuitants
during the time of their participation in non-Medicare plans,
except as provided in subparagraphs (1) through (4) of this
subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003, the board
shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 6-165; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)
(40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
Sec. 8-164.1. Payments to city Group health benefit.
(a) For the purposes of this Section, "city annuitant"
means a person receiving an age and service annuity, a
widow's annuity, a child's annuity, or a minimum annuity
under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the
board's city annuitants who participate in any of the city's
health care plans, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85
per month for each such annuitant who is not eligible to
receive Medicare benefits and $55 per month for each such
annuitant who is eligible to receive Medicare benefits.
(2) From July 1, 2008 through June 30, 2013, $95
per month for each such annuitant who is not eligible to
receive Medicare benefits and $65 per month for each such
annuitant who is eligible to receive Medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 8-173; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(c) The city health care plans referred to in this
Section and the board's payments to the city under this
Section are not and shall not be construed to be pension or
retirement benefits for the purposes of Section 5 of Article
XIII of the Illinois Constitution of 1970.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003. The basic city health care plan available as of June
30, 1988 (hereinafter called the basic city plan) shall cease
to be a plan offered by the city, except as specified in
subparagraphs (4) and (5) below, and shall be closed to new
enrollment or transfer of coverage for any non-Medicare Plan
annuitant as of June 27, 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from June 27, 1997 through June 30,
2003, monthly premium rates may be increased for annuitants
during the time of their participation in non-Medicare plans,
except as provided in subparagraphs (1) through (4) of this
subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003, the board
shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
Commencing on August 23, 1989, the board is authorized to
pay to the board of education on behalf of each person who
chooses to participate in the board of education's plan the
amounts specified in this subsection (d) during the years
indicated. For the period January 1, 1988 through August 23,
1989, the board shall pay to the board of education
annuitants who participate in the board of education's health
benefits plan for annuitants the following amounts: $10 per
month to each annuitant who is not qualified to receive
medicare benefits, and $14 per month to each annuitant who is
qualified to receive medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 8-189; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)
(40 ILCS 5/8-164.2 new)
Sec. 8-164.2. Payments to board of education for group
health benefits.
(a) Should the Board of Education continue to sponsor a
retiree health plan, the board is authorized to pay to the
Board of Education, on behalf of each eligible annuitant who
chooses to participate in the Board of Education's retiree
health benefit plan, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85
per month for each such annuitant who is not eligible to
receive Medicare benefits and $55 per month for each such
annuitant who is eligible to receive Medicare benefits.
(2) From July 1, 2008 through June 30, 2013, $95
per month for each such annuitant who is not eligible to
receive Medicare benefits and $65 per month for each such
annuitant who is eligible to receive Medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 8-173; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the Board of Education under this subsection
shall be charged against it.
(b) The Board of Education health benefit plan referred
to in this Section and the board's payments to the Board of
Education under this Section are not and shall not be
construed to be pension or retirement benefits for the
purposes of Section 5 of Article XIII of the Illinois
Constitution of 1970.
(40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
Sec. 11-160.1. Payments to city Group health benefit.
(a) For the purposes of this Section, "city annuitant"
means a person receiving an age and service annuity, a
widow's annuity, a child's annuity, or a minimum annuity
under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the
board's city annuitants who participate in any of the city's
health care plans, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85
per month for each such annuitant who is not eligible to
receive Medicare benefits and $55 per month for each such
annuitant who is eligible to receive Medicare benefits.
(2) From July 1, 2008 through June 30, 2013, $95
per month for each such annuitant who is not eligible to
receive Medicare benefits and $65 per month for each such
annuitant who is eligible to receive Medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 11-169; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(c) The city health care plans referred to in this
Section and the board's payments to the city under this
Section are not and shall not be construed to be pension or
retirement benefits for the purposes of Section 5 of Article
XIII of the Illinois Constitution of 1970.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003. The basic city health care plan available as of June
30, 1988 (hereinafter called the basic city plan) shall cease
to be a plan offered by the city, except as specified in
subparagraphs (4) and (5) below, and shall be closed to new
enrollment or transfer of coverage for any non-Medicare Plan
annuitant as of June 27, 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from June 27, 1997 through June 30,
2003, monthly premium rates may be increased for annuitants
during the time of their participation in non-Medicare plans,
except as provided in subparagraphs (1) through (4) of this
subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003, the board
shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 11-178; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 92-599, eff. 6-28-02.)
(40 ILCS 5/11-160.2 new)
Sec. 11-160.2. Payments to board of education for group
health benefits.
(a) Should the Board of Education continue to sponsor a
retiree health plan, the board is authorized to pay to the
Board of Education, on behalf of each eligible annuitant who
chooses to participate in the Board of Education's retiree
health benefit plan, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85
per month for each such annuitant who is not eligible to
receive Medicare benefits and $55 per month for each such
annuitant who is eligible to receive Medicare benefits.
(2) From July 1, 2008 through June 30, 2013, $95
per month for each such annuitant who is not eligible to
receive Medicare benefits and $65 per month for each such
annuitant who is eligible to receive Medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 11-169; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the Board of Education under this subsection
shall be charged against it.
(b) The Board of Education health benefit plan referred
to in this Section and the board's payments to the Board of
Education under this Section are not and shall not be
construed to be pension or retirement benefits for the
purposes of Section 5 of Article XIII of the Illinois
Constitution of 1970.
Section 90. The State Mandates Act is amended by adding
Section 8.27 as follows:
(30 ILCS 805/8.27 new)
Sec. 8.27. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 93rd General Assembly.
Section 99. Effective date. This Act takes effect July
1, 2003.
Effective Date: 7/1/2003
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