Public Act 094-0095
 
HB0521 Enrolled LRB094 03833 JAM 33844 b

    AN ACT concerning government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Sections 7 and 8 as follows:
 
    (5 ILCS 375/7)  (from Ch. 127, par. 527)
    Sec. 7. Group life insurance program.
    (a) The basic noncontributory group life insurance program
shall provide coverage as follows:
        (1) employees shall be insured in an amount equal to
    the basic annual salary rate, exclusive of overtime, bonus,
    or other cumulative additional income factors, raised to
    the next round hundred dollar amount if it is not already a
    round hundred dollar amount;
        (2) annuitants shall be insured in the same manner as
    described for active employees, based on the salary in
    force immediately before retirement, with coverage
    becoming effective on the effective date of retirement
    benefits or the first day of the month of application,
    whichever occurs later, except that at age 60 the amount of
    coverage for the annuitant shall be reduced to $5,000;
        (3) survivors whose coverage became effective prior to
    September 22, 1979 shall be insured for $2,000;
        (4) retired employees shall not be eligible under the
    group life insurance program contracted to begin or
    continue after June 30, 1973.
    (a-5) There shall also be available on an optional basis to
employees, annuitants whose retirement benefits begin within
one year of their receipt of final compensation, and survivors
whose coverage became effective prior to September 22, 1979, a
contributory program of:
        (1) supplemental life insurance in an amount not
    exceeding 8 4 times the basic life benefits for active
    employees and annuitants under age 60 and not exceeding 4
    times the basic life benefits for annuitants age 60 and
    over, as described above, except that (a) amounts selected
    by employees and annuitants must be in full multiples of
    the basic amount, and (b) premiums may be adjusted by age
    bracket established in rules supplementing this Act;
    beginning July 1, 1981, survivors whose coverage becomes
    effective on or after September 22, 1979, shall have the
    option of participating in the contributory program of life
    insurance in an amount of $5,000 coverage;
        (2) accidental death and dismemberment, with the
    employee and annuitant having the option of electing an
    amount equal to the basic noncontributory life benefits
    only, or an amount equaling the combined total of basic
    plus optional life benefits not exceeding 5 times basic
    life benefits, or $3,000,000, whichever is less;
        (3) dependent life insurance in an amount of $10,000
    $5,000 coverage on the spouse; however, coverage reduces to
    $5,000 when the eligible annuitant turns 60; and
        (4) dependent life insurance in an amount of $10,000
    $5,000 coverage on each dependent other than the spouse.
    (b) A member, not otherwise covered by this Act, who has
retired as a participating member under Article 2 of the
Illinois Pension Code, but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code, shall
pay the premiums for coverage under the group life insurance
program under this Act. The Director shall promulgate rules and
regulations to determine the premiums to be paid by a member
under this subsection (b).
(Source: P.A. 88-196; 89-65, eff. 6-30-95.)
 
    (5 ILCS 375/8)  (from Ch. 127, par. 528)
    Sec. 8. Eligibility.
    (a) Each member eligible under the provisions of this Act
and any rules and regulations promulgated and adopted hereunder
by the Director shall become immediately eligible and covered
for all benefits available under the programs. Members electing
coverage for eligible dependents shall have the coverage
effective immediately, provided that the election is properly
filed in accordance with required filing dates and procedures
specified by the Director.
        (1) Every member originally eligible to elect
    dependent coverage, but not electing it during the original
    eligibility period, may subsequently obtain dependent
    coverage only in the event of a qualifying change in
    status, special enrollment, special circumstance as
    defined by the Director, or during the annual Benefit
    Choice Period.
        (2) Members described above being transferred from
    previous coverage towards which the State has been
    contributing shall be transferred regardless of
    preexisting conditions, waiting periods, or other
    requirements that might jeopardize claim payments to which
    they would otherwise have been entitled.
        (3) Eligible and covered members that are eligible for
    coverage as dependents except for the fact of being members
    shall be transferred to, and covered under, dependent
    status regardless of preexisting conditions, waiting
    periods, or other requirements that might jeopardize claim
    payments to which they would otherwise have been entitled
    upon cessation of member status and the election of
    dependent coverage by a member eligible to elect that
    coverage.
    (b) New employees shall be immediately insured for the
basic group life insurance and covered by the program of health
benefits on the first day of active State service. Optional
life insurance coverage one to 4 times the basic amount
coverages or benefits, if elected during the relevant
eligibility period, will become effective on the date of
employment. Optional life insurance coverage exceeding 4 times
the basic amount and all life insurance amounts coverages or
benefits applied for after the eligibility period will be
effective, subject to satisfactory evidence of insurability
when applicable, or other necessary qualifications, pursuant
to the requirements of the applicable benefit program, unless
there is a change in status that would confer new eligibility
for change of enrollment under rules established supplementing
this Act, in which event application must be made within the
new eligibility period.
    (c) As to the group health benefits program contracted to
begin or continue after June 30, 1973, each retired employee
shall become immediately eligible and covered for all benefits
available under that program. Retired employees may elect
coverage for eligible dependents and shall have the coverage
effective immediately, provided that the election is properly
filed in accordance with required filing dates and procedures
specified by the Director.
    Except as otherwise provided in this Act, where husband and
wife are both eligible members, each shall be enrolled as a
member and coverage on their eligible dependent children, if
any, may be under the enrollment and election of either.
    Regardless of other provisions herein regarding late
enrollment or other qualifications, as appropriate, the
Director may periodically authorize open enrollment periods
for each of the benefit programs at which time each member may
elect enrollment or change of enrollment without regard to age,
sex, health, or other qualification under the conditions as may
be prescribed in rules and regulations supplementing this Act.
Special open enrollment periods may be declared by the Director
for certain members only when special circumstances occur that
affect only those members.
    (d) Beginning with fiscal year 2003 and for all subsequent
years, eligible members may elect not to participate in the
program of health benefits as defined in this Act. The election
must be made during the annual benefit choice period, subject
to the conditions in this subsection.
        (1) Members must furnish proof of health benefit
    coverage, either comprehensive major medical coverage or
    comprehensive managed care plan, from a source other than
    the Department of Central Management Services in order to
    elect not to participate in the program.
        (2) Members may re-enroll in the Department of Central
    Management Services program of health benefits upon
    showing a qualifying change in status, as defined in the
    U.S. Internal Revenue Code, without evidence of
    insurability and with no limitations on coverage for
    pre-existing conditions, provided that there was not a
    break in coverage of more than 63 days.
        (3) Members may also re-enroll in the program of health
    benefits during any annual benefit choice period, without
    evidence of insurability.
        (4) Members who elect not to participate in the program
    of health benefits shall be furnished a written explanation
    of the requirements and limitations for the election not to
    participate in the program and for re-enrolling in the
    program. The explanation shall also be included in the
    annual benefit choice options booklets furnished to
    members.
    (e) Notwithstanding any other provision of this Act or the
rules adopted under this Act, if a person participating in the
program of health benefits as the dependent spouse of an
eligible member becomes an annuitant, the person may elect, at
the time of becoming an annuitant or during any subsequent
annual benefit choice period, to continue participation as a
dependent rather than as an eligible member for as long as the
person continues to be an eligible dependent.
    An eligible member who has elected to participate as a
dependent may re-enroll in the program of health benefits as an
eligible member (i) during any subsequent annual benefit choice
period or (ii) upon showing a qualifying change in status, as
defined in the U.S. Internal Revenue Code, without evidence of
insurability and with no limitations on coverage for
pre-existing conditions.
    A person who elects to participate in the program of health
benefits as a dependent rather than as an eligible member shall
be furnished a written explanation of the consequences of
electing to participate as a dependent and the conditions and
procedures for re-enrolling as an eligible member. The
explanation shall also be included in the annual benefit choice
options booklet furnished to members.
(Source: P.A. 92-600, eff. 6-28-02; 93-553, eff. 8-20-03.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/1/2005