100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0817

 

Introduced , by Rep. Peter Breen

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/3  from Ch. 127, par. 523

    Amends the State Employees Group Insurance Act of 1971. Defines the term "placement for adoption" under the Act, and for the purpose of "dependent" when that term is used in the context of the health and life plan. Makes conforming changes.


LRB100 07376 RJF 17440 b

 

 

A BILL FOR

 

HB0817LRB100 07376 RJF 17440 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Employees Group Insurance Act of 1971
5is 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
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13    (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18    (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2, 14 (including an employee
21who has elected to receive an alternative retirement
22cancellation payment under Section 14-108.5 of the Illinois
23Pension Code in lieu of an annuity), 15 (including an employee

 

 

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1who has retired under the optional retirement program
2established under Section 15-158.2), paragraphs (2), (3), or
3(5) of Section 16-106, or Article 18 of the Illinois Pension
4Code; (2) any person who was receiving group insurance coverage
5under this Act as of March 31, 1978 by reason of his status as
6an annuitant, even though the annuity in relation to which such
7coverage was provided is a proportional annuity based on less
8than the minimum period of service required for a retirement
9annuity in the system involved; (3) any person not otherwise
10covered by this Act who has retired as a participating member
11under Article 2 of the Illinois Pension Code but is ineligible
12for the retirement annuity under Section 2-119 of the Illinois
13Pension Code; (4) the spouse of any person who is receiving a
14retirement annuity under Article 18 of the Illinois Pension
15Code and who is covered under a group health insurance program
16sponsored by a governmental employer other than the State of
17Illinois and who has irrevocably elected to waive his or her
18coverage under this Act and to have his or her spouse
19considered as the "annuitant" under this Act and not as a
20"dependent"; or (5) an employee who retires, or has retired,
21from a qualified position, as determined according to rules
22promulgated by the Director, under a qualified local
23government, a qualified rehabilitation facility, a qualified
24domestic violence shelter or service, or a qualified child
25advocacy center. (For definition of "retired employee", see (p)
26post).

 

 

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1    (b-5) (Blank).
2    (b-6) (Blank).
3    (b-7) (Blank).
4    (c) "Carrier" means (1) an insurance company, a corporation
5organized under the Limited Health Service Organization Act or
6the Voluntary Health Services Plan Act, a partnership, or other
7nongovernmental organization, which is authorized to do group
8life or group health insurance business in Illinois, or (2) the
9State of Illinois as a self-insurer.
10    (d) "Compensation" means salary or wages payable on a
11regular payroll by the State Treasurer on a warrant of the
12State Comptroller out of any State, trust or federal fund, or
13by the Governor of the State through a disbursing officer of
14the State out of a trust or out of federal funds, or by any
15Department out of State, trust, federal or other funds held by
16the State Treasurer or the Department, to any person for
17personal services currently performed, and ordinary or
18accidental disability benefits under Articles 2, 14, 15
19(including ordinary or accidental disability benefits under
20the optional retirement program established under Section
2115-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
22Article 18 of the Illinois Pension Code, for disability
23incurred after January 1, 1966, or benefits payable under the
24Workers' Compensation or Occupational Diseases Act or benefits
25payable under a sick pay plan established in accordance with
26Section 36 of the State Finance Act. "Compensation" also means

 

 

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1salary or wages paid to an employee of any qualified local
2government, qualified rehabilitation facility, qualified
3domestic violence shelter or service, or qualified child
4advocacy center.
5    (e) "Commission" means the State Employees Group Insurance
6Advisory Commission authorized by this Act. Commencing July 1,
71984, "Commission" as used in this Act means the Commission on
8Government Forecasting and Accountability as established by
9the Legislative Commission Reorganization Act of 1984.
10    (f) "Contributory", when referred to as contributory
11coverage, shall mean optional coverages or benefits elected by
12the member toward the cost of which such member makes
13contribution, or which are funded in whole or in part through
14the acceptance of a reduction in earnings or the foregoing of
15an increase in earnings by an employee, as distinguished from
16noncontributory coverage or benefits which are paid entirely by
17the State of Illinois without reduction of the member's salary.
18    (g) "Department" means any department, institution, board,
19commission, officer, court or any agency of the State
20government receiving appropriations and having power to
21certify payrolls to the Comptroller authorizing payments of
22salary and wages against such appropriations as are made by the
23General Assembly from any State fund, or against trust funds
24held by the State Treasurer and includes boards of trustees of
25the retirement systems created by Articles 2, 14, 15, 16 and 18
26of the Illinois Pension Code. "Department" also includes the

 

 

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1Illinois Comprehensive Health Insurance Board, the Board of
2Examiners established under the Illinois Public Accounting
3Act, and the Illinois Finance Authority.
4    (h) "Dependent", when the term is used in the context of
5the health and life plan, means a member's spouse and any child
6(1) from birth to age 26 including an adopted child, a child
7who lives with the member from the time of the placement filing
8of a petition for adoption until entry of an order of adoption,
9a stepchild or adjudicated child, or a child who lives with the
10member if such member is a court appointed guardian of the
11child or (2) age 19 or over who has a mental or physical
12disability from a cause originating prior to the age of 19 (age
1326 if enrolled as an adult child dependent). For the health
14plan only, the term "dependent" also includes (1) any person
15enrolled prior to the effective date of this Section who is
16dependent upon the member to the extent that the member may
17claim such person as a dependent for income tax deduction
18purposes and (2) any person who has received after June 30,
192000 an organ transplant and who is financially dependent upon
20the member and eligible to be claimed as a dependent for income
21tax purposes. A member requesting to cover any dependent must
22provide documentation as requested by the Department of Central
23Management Services and file with the Department any and all
24forms required by the Department.
25    (i) "Director" means the Director of the Illinois
26Department of Central Management Services.

 

 

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1    (j) "Eligibility period" means the period of time a member
2has to elect enrollment in programs or to select benefits
3without regard to age, sex or health.
4    (k) "Employee" means and includes each officer or employee
5in the service of a department who (1) receives his
6compensation for service rendered to the department on a
7warrant issued pursuant to a payroll certified by a department
8or on a warrant or check issued and drawn by a department upon
9a trust, federal or other fund or on a warrant issued pursuant
10to a payroll certified by an elected or duly appointed officer
11of the State or who receives payment of the performance of
12personal services on a warrant issued pursuant to a payroll
13certified by a Department and drawn by the Comptroller upon the
14State Treasurer against appropriations made by the General
15Assembly from any fund or against trust funds held by the State
16Treasurer, and (2) is employed full-time or part-time in a
17position normally requiring actual performance of duty during
18not less than 1/2 of a normal work period, as established by
19the Director in cooperation with each department, except that
20persons elected by popular vote will be considered employees
21during the entire term for which they are elected regardless of
22hours devoted to the service of the State, and (3) except that
23"employee" does not include any person who is not eligible by
24reason of such person's employment to participate in one of the
25State retirement systems under Articles 2, 14, 15 (either the
26regular Article 15 system or the optional retirement program

 

 

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1established under Section 15-158.2) or 18, or under paragraph
2(2), (3), or (5) of Section 16-106, of the Illinois Pension
3Code, but such term does include persons who are employed
4during the 6 month qualifying period under Article 14 of the
5Illinois Pension Code. Such term also includes any person who
6(1) after January 1, 1966, is receiving ordinary or accidental
7disability benefits under Articles 2, 14, 15 (including
8ordinary or accidental disability benefits under the optional
9retirement program established under Section 15-158.2),
10paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
11the Illinois Pension Code, for disability incurred after
12January 1, 1966, (2) receives total permanent or total
13temporary disability under the Workers' Compensation Act or
14Occupational Disease Act as a result of injuries sustained or
15illness contracted in the course of employment with the State
16of Illinois, or (3) is not otherwise covered under this Act and
17has retired as a participating member under Article 2 of the
18Illinois Pension Code but is ineligible for the retirement
19annuity under Section 2-119 of the Illinois Pension Code.
20However, a person who satisfies the criteria of the foregoing
21definition of "employee" except that such person is made
22ineligible to participate in the State Universities Retirement
23System by clause (4) of subsection (a) of Section 15-107 of the
24Illinois Pension Code is also an "employee" for the purposes of
25this Act. "Employee" also includes any person receiving or
26eligible for benefits under a sick pay plan established in

 

 

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1accordance with Section 36 of the State Finance Act. "Employee"
2also includes (i) each officer or employee in the service of a
3qualified local government, including persons appointed as
4trustees of sanitary districts regardless of hours devoted to
5the service of the sanitary district, (ii) each employee in the
6service of a qualified rehabilitation facility, (iii) each
7full-time employee in the service of a qualified domestic
8violence shelter or service, and (iv) each full-time employee
9in the service of a qualified child advocacy center, as
10determined according to rules promulgated by the Director.
11    (l) "Member" means an employee, annuitant, retired
12employee or survivor. In the case of an annuitant or retired
13employee who first becomes an annuitant or retired employee on
14or after the effective date of this amendatory Act of the 97th
15General Assembly, the individual must meet the minimum vesting
16requirements of the applicable retirement system in order to be
17eligible for group insurance benefits under that system. In the
18case of a survivor who first becomes a survivor on or after the
19effective date of this amendatory Act of the 97th General
20Assembly, the deceased employee, annuitant, or retired
21employee upon whom the annuity is based must have been eligible
22to participate in the group insurance system under the
23applicable retirement system in order for the survivor to be
24eligible for group insurance benefits under that system.
25    (m) "Optional coverages or benefits" means those coverages
26or benefits available to the member on his or her voluntary

 

 

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1election, and at his or her own expense.
2    (n) "Program" means the group life insurance, health
3benefits and other employee benefits designed and contracted
4for by the Director under this Act.
5    (o) "Health plan" means a health benefits program offered
6by the State of Illinois for persons eligible for the plan.
7    (p) "Retired employee" means any person who would be an
8annuitant as that term is defined herein but for the fact that
9such person retired prior to January 1, 1966. Such term also
10includes any person formerly employed by the University of
11Illinois in the Cooperative Extension Service who would be an
12annuitant but for the fact that such person was made ineligible
13to participate in the State Universities Retirement System by
14clause (4) of subsection (a) of Section 15-107 of the Illinois
15Pension Code.
16    (q) "Survivor" means a person receiving an annuity as a
17survivor of an employee or of an annuitant. "Survivor" also
18includes: (1) the surviving dependent of a person who satisfies
19the definition of "employee" except that such person is made
20ineligible to participate in the State Universities Retirement
21System by clause (4) of subsection (a) of Section 15-107 of the
22Illinois Pension Code; (2) the surviving dependent of any
23person formerly employed by the University of Illinois in the
24Cooperative Extension Service who would be an annuitant except
25for the fact that such person was made ineligible to
26participate in the State Universities Retirement System by

 

 

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1clause (4) of subsection (a) of Section 15-107 of the Illinois
2Pension Code; and (3) the surviving dependent of a person who
3was an annuitant under this Act by virtue of receiving an
4alternative retirement cancellation payment under Section
514-108.5 of the Illinois Pension Code.
6    (q-2) "SERS" means the State Employees' Retirement System
7of Illinois, created under Article 14 of the Illinois Pension
8Code.
9    (q-3) "SURS" means the State Universities Retirement
10System, created under Article 15 of the Illinois Pension Code.
11    (q-4) "TRS" means the Teachers' Retirement System of the
12State of Illinois, created under Article 16 of the Illinois
13Pension Code.
14    (q-5) (Blank).
15    (q-6) (Blank).
16    (q-7) (Blank).
17    (r) "Medical services" means the services provided within
18the scope of their licenses by practitioners in all categories
19licensed under the Medical Practice Act of 1987.
20    (s) "Unit of local government" means any county,
21municipality, township, school district (including a
22combination of school districts under the Intergovernmental
23Cooperation Act), special district or other unit, designated as
24a unit of local government by law, which exercises limited
25governmental powers or powers in respect to limited
26governmental subjects, any not-for-profit association with a

 

 

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1membership that primarily includes townships and township
2officials, that has duties that include provision of research
3service, dissemination of information, and other acts for the
4purpose of improving township government, and that is funded
5wholly or partly in accordance with Section 85-15 of the
6Township Code; any not-for-profit corporation or association,
7with a membership consisting primarily of municipalities, that
8operates its own utility system, and provides research,
9training, dissemination of information, or other acts to
10promote cooperation between and among municipalities that
11provide utility services and for the advancement of the goals
12and purposes of its membership; the Southern Illinois
13Collegiate Common Market, which is a consortium of higher
14education institutions in Southern Illinois; the Illinois
15Association of Park Districts; and any hospital provider that
16is owned by a county that has 100 or fewer hospital beds and
17has not already joined the program. "Qualified local
18government" means a unit of local government approved by the
19Director and participating in a program created under
20subsection (i) of Section 10 of this Act.
21    (t) "Qualified rehabilitation facility" means any
22not-for-profit organization that is accredited by the
23Commission on Accreditation of Rehabilitation Facilities or
24certified by the Department of Human Services (as successor to
25the Department of Mental Health and Developmental
26Disabilities) to provide services to persons with disabilities

 

 

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1and which receives funds from the State of Illinois for
2providing those services, approved by the Director and
3participating in a program created under subsection (j) of
4Section 10 of this Act.
5    (u) "Qualified domestic violence shelter or service" means
6any Illinois domestic violence shelter or service and its
7administrative offices funded by the Department of Human
8Services (as successor to the Illinois Department of Public
9Aid), approved by the Director and participating in a program
10created under subsection (k) of Section 10.
11    (v) "TRS benefit recipient" means a person who:
12        (1) is not a "member" as defined in this Section; and
13        (2) is receiving a monthly benefit or retirement
14    annuity under Article 16 of the Illinois Pension Code; and
15        (3) either (i) has at least 8 years of creditable
16    service under Article 16 of the Illinois Pension Code, or
17    (ii) was enrolled in the health insurance program offered
18    under that Article on January 1, 1996, or (iii) is the
19    survivor of a benefit recipient who had at least 8 years of
20    creditable service under Article 16 of the Illinois Pension
21    Code or was enrolled in the health insurance program
22    offered under that Article on the effective date of this
23    amendatory Act of 1995, or (iv) is a recipient or survivor
24    of a recipient of a disability benefit under Article 16 of
25    the Illinois Pension Code.
26    (w) "TRS dependent beneficiary" means a person who:

 

 

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1        (1) is not a "member" or "dependent" as defined in this
2    Section; and
3        (2) is a TRS benefit recipient's: (A) spouse, (B)
4    dependent parent who is receiving at least half of his or
5    her support from the TRS benefit recipient, or (C) natural,
6    step, adjudicated, or adopted child who is (i) under age
7    26, (ii) was, on January 1, 1996, participating as a
8    dependent beneficiary in the health insurance program
9    offered under Article 16 of the Illinois Pension Code, or
10    (iii) age 19 or over who has a mental or physical
11    disability from a cause originating prior to the age of 19
12    (age 26 if enrolled as an adult child).
13    "TRS dependent beneficiary" does not include, as indicated
14under paragraph (2) of this subsection (w), a dependent of the
15survivor of a TRS benefit recipient who first becomes a
16dependent of a survivor of a TRS benefit recipient on or after
17the effective date of this amendatory Act of the 97th General
18Assembly unless that dependent would have been eligible for
19coverage as a dependent of the deceased TRS benefit recipient
20upon whom the survivor benefit is based.
21    (x) "Military leave" refers to individuals in basic
22training for reserves, special/advanced training, annual
23training, emergency call up, activation by the President of the
24United States, or any other training or duty in service to the
25United States Armed Forces.
26    (y) (Blank).

 

 

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1    (z) "Community college benefit recipient" means a person
2who:
3        (1) is not a "member" as defined in this Section; and
4        (2) is receiving a monthly survivor's annuity or
5    retirement annuity under Article 15 of the Illinois Pension
6    Code; and
7        (3) either (i) was a full-time employee of a community
8    college district or an association of community college
9    boards created under the Public Community College Act
10    (other than an employee whose last employer under Article
11    15 of the Illinois Pension Code was a community college
12    district subject to Article VII of the Public Community
13    College Act) and was eligible to participate in a group
14    health benefit plan as an employee during the time of
15    employment with a community college district (other than a
16    community college district subject to Article VII of the
17    Public Community College Act) or an association of
18    community college boards, or (ii) is the survivor of a
19    person described in item (i).
20    (aa) "Community college dependent beneficiary" means a
21person who:
22        (1) is not a "member" or "dependent" as defined in this
23    Section; and
24        (2) is a community college benefit recipient's: (A)
25    spouse, (B) dependent parent who is receiving at least half
26    of his or her support from the community college benefit

 

 

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1    recipient, or (C) natural, step, adjudicated, or adopted
2    child who is (i) under age 26, or (ii) age 19 or over and
3    has a mental or physical disability from a cause
4    originating prior to the age of 19 (age 26 if enrolled as
5    an adult child).
6    "Community college dependent beneficiary" does not
7include, as indicated under paragraph (2) of this subsection
8(aa), a dependent of the survivor of a community college
9benefit recipient who first becomes a dependent of a survivor
10of a community college benefit recipient on or after the
11effective date of this amendatory Act of the 97th General
12Assembly unless that dependent would have been eligible for
13coverage as a dependent of the deceased community college
14benefit recipient upon whom the survivor annuity is based.
15    (bb) "Qualified child advocacy center" means any Illinois
16child advocacy center and its administrative offices funded by
17the Department of Children and Family Services, as defined by
18the Children's Advocacy Center Act (55 ILCS 80/), approved by
19the Director and participating in a program created under
20subsection (n) of Section 10.
21    (cc) "Placement for adoption" means the assumption and
22retention by a member of a legal obligation for total or
23partial support of a child in anticipation of adoption of the
24child. The child's placement with the member terminates upon
25the termination of such legal obligation.
26(Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)