97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1374

 

Introduced 2/9/2011, by Rep. Barbara Flynn Currie

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/3  from Ch. 127, par. 523
5 ILCS 375/6.9
5 ILCS 375/6.10
30 ILCS 805/8.35 new

    Amends the State Employees Group Insurance Act of 1971. Adds and excludes certain classes of persons from the definition of "community college benefit recipient". Provides, beginning July 1, 2012, (i) that the program of health benefits for community college benefit recipients and community college dependent beneficiaries shall include health benefits for community college benefit recipients and community college dependent beneficiaries subject to Article VII of the Public Community College Act and (ii) that those persons and the employers of those persons shall pay the required contributions. Increases the required contribution to be paid by contributors to the State Universities Retirement System and their employers. Provides that a community college district subject to Article VII of the Public Community College Act shall contribute (i) $10 million toward the cost of these health benefits by March 30, 2012 and (ii) an additional amount on or before September 1, 2012. Requires the Board of Trustees of the State Universities Retirement System to recertify its estimate of the total amount of contributions to be contributed for these benefits, taking into account the changes made by the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB097 09955 JDS 50122 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1374LRB097 09955 JDS 50122 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, 6.9, and 6.10 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) "New SERS annuitant" means a person who, on or after
2January 1, 1998, becomes an annuitant, as defined in subsection
3(b), by virtue of beginning to receive a retirement annuity
4under Article 14 of the Illinois Pension Code (including an
5employee who has elected to receive an alternative retirement
6cancellation payment under Section 14-108.5 of that Code in
7lieu of an annuity), and is eligible to participate in the
8basic program of group health benefits provided for annuitants
9under this Act.
10    (b-6) "New SURS annuitant" means a person who (1) on or
11after January 1, 1998, becomes an annuitant, as defined in
12subsection (b), by virtue of beginning to receive a retirement
13annuity under Article 15 of the Illinois Pension Code, (2) has
14not made the election authorized under Section 15-135.1 of the
15Illinois Pension Code, and (3) is eligible to participate in
16the basic program of group health benefits provided for
17annuitants under this Act.
18    (b-7) "New TRS State annuitant" means a person who, on or
19after July 1, 1998, becomes an annuitant, as defined in
20subsection (b), by virtue of beginning to receive a retirement
21annuity under Article 16 of the Illinois Pension Code based on
22service as a teacher as defined in paragraph (2), (3), or (5)
23of Section 16-106 of that Code, and is eligible to participate
24in the basic program of group health benefits provided for
25annuitants under this Act.
26    (c) "Carrier" means (1) an insurance company, a corporation

 

 

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1organized under the Limited Health Service Organization Act or
2the Voluntary Health Services Plan Act, a partnership, or other
3nongovernmental organization, which is authorized to do group
4life or group health insurance business in Illinois, or (2) the
5State of Illinois as a self-insurer.
6    (d) "Compensation" means salary or wages payable on a
7regular payroll by the State Treasurer on a warrant of the
8State Comptroller out of any State, trust or federal fund, or
9by the Governor of the State through a disbursing officer of
10the State out of a trust or out of federal funds, or by any
11Department out of State, trust, federal or other funds held by
12the State Treasurer or the Department, to any person for
13personal services currently performed, and ordinary or
14accidental disability benefits under Articles 2, 14, 15
15(including ordinary or accidental disability benefits under
16the optional retirement program established under Section
1715-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
18Article 18 of the Illinois Pension Code, for disability
19incurred after January 1, 1966, or benefits payable under the
20Workers' Compensation or Occupational Diseases Act or benefits
21payable under a sick pay plan established in accordance with
22Section 36 of the State Finance Act. "Compensation" also means
23salary or wages paid to an employee of any qualified local
24government, qualified rehabilitation facility, qualified
25domestic violence shelter or service, or qualified child
26advocacy center.

 

 

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1    (e) "Commission" means the State Employees Group Insurance
2Advisory Commission authorized by this Act. Commencing July 1,
31984, "Commission" as used in this Act means the Commission on
4Government Forecasting and Accountability as established by
5the Legislative Commission Reorganization Act of 1984.
6    (f) "Contributory", when referred to as contributory
7coverage, shall mean optional coverages or benefits elected by
8the member toward the cost of which such member makes
9contribution, or which are funded in whole or in part through
10the acceptance of a reduction in earnings or the foregoing of
11an increase in earnings by an employee, as distinguished from
12noncontributory coverage or benefits which are paid entirely by
13the State of Illinois without reduction of the member's salary.
14    (g) "Department" means any department, institution, board,
15commission, officer, court or any agency of the State
16government receiving appropriations and having power to
17certify payrolls to the Comptroller authorizing payments of
18salary and wages against such appropriations as are made by the
19General Assembly from any State fund, or against trust funds
20held by the State Treasurer and includes boards of trustees of
21the retirement systems created by Articles 2, 14, 15, 16 and 18
22of the Illinois Pension Code. "Department" also includes the
23Illinois Comprehensive Health Insurance Board, the Board of
24Examiners established under the Illinois Public Accounting
25Act, and the Illinois Finance Authority.
26    (h) "Dependent", when the term is used in the context of

 

 

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1the health and life plan, means a member's spouse and any
2unmarried child (1) from birth to age 19 including an adopted
3child, a child who lives with the member from the time of the
4filing of a petition for adoption until entry of an order of
5adoption, a stepchild or recognized child who lives with the
6member in a parent-child relationship, or a child who lives
7with the member if such member is a court appointed guardian of
8the child, (2) age 19 to 24 enrolled as a full-time student in
9any accredited school, financially dependent upon the member,
10and eligible to be claimed as a dependent for income tax
11purposes, (2.1) age 19 to 24 on a medical leave of absence as
12described in Section 356z.11 of the Illinois Insurance Code
13(215 ILCS 5/356z.11), or (3) age 19 or over who is mentally or
14physically handicapped. For the purposes of item (2), an
15unmarried child age 19 to 24 who is a member of the United
16States Armed Services, including the Illinois National Guard,
17and is mobilized to active duty shall qualify as a dependent
18beyond the age of 24 and until the age of 25 and while a
19full-time student for the amount of time spent on active duty
20between the ages of 19 and 24. The individual attempting to
21qualify for this additional time must submit written
22documentation of active duty service to the Director. The
23changes made by this amendatory Act of the 94th General
24Assembly apply only to individuals mobilized to active duty in
25the United States Armed Services, including the Illinois
26National Guard, on or after January 1, 2002. For the health

 

 

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1plan only, the term "dependent" also includes any person
2enrolled prior to the effective date of this Section who is
3dependent upon the member to the extent that the member may
4claim such person as a dependent for income tax deduction
5purposes; no other such person may be enrolled. For the health
6plan only, the term "dependent" also includes any person who
7has received after June 30, 2000 an organ transplant and who is
8financially dependent upon the member and eligible to be
9claimed as a dependent for income tax purposes.
10    (i) "Director" means the Director of the Illinois
11Department of Central Management Services or of any successor
12agency designated to administer this Act.
13    (j) "Eligibility period" means the period of time a member
14has to elect enrollment in programs or to select benefits
15without regard to age, sex or health.
16    (k) "Employee" means and includes each officer or employee
17in the service of a department who (1) receives his
18compensation for service rendered to the department on a
19warrant issued pursuant to a payroll certified by a department
20or on a warrant or check issued and drawn by a department upon
21a trust, federal or other fund or on a warrant issued pursuant
22to a payroll certified by an elected or duly appointed officer
23of the State or who receives payment of the performance of
24personal services on a warrant issued pursuant to a payroll
25certified by a Department and drawn by the Comptroller upon the
26State Treasurer against appropriations made by the General

 

 

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1Assembly from any fund or against trust funds held by the State
2Treasurer, and (2) is employed full-time or part-time in a
3position normally requiring actual performance of duty during
4not less than 1/2 of a normal work period, as established by
5the Director in cooperation with each department, except that
6persons elected by popular vote will be considered employees
7during the entire term for which they are elected regardless of
8hours devoted to the service of the State, and (3) except that
9"employee" does not include any person who is not eligible by
10reason of such person's employment to participate in one of the
11State retirement systems under Articles 2, 14, 15 (either the
12regular Article 15 system or the optional retirement program
13established under Section 15-158.2) or 18, or under paragraph
14(2), (3), or (5) of Section 16-106, of the Illinois Pension
15Code, but such term does include persons who are employed
16during the 6 month qualifying period under Article 14 of the
17Illinois Pension Code. Such term also includes any person who
18(1) after January 1, 1966, is receiving ordinary or accidental
19disability benefits under Articles 2, 14, 15 (including
20ordinary or accidental disability benefits under the optional
21retirement program established under Section 15-158.2),
22paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
23the Illinois Pension Code, for disability incurred after
24January 1, 1966, (2) receives total permanent or total
25temporary disability under the Workers' Compensation Act or
26Occupational Disease Act as a result of injuries sustained or

 

 

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1illness contracted in the course of employment with the State
2of Illinois, or (3) is not otherwise covered under this Act and
3has retired as a participating member under Article 2 of the
4Illinois Pension Code but is ineligible for the retirement
5annuity under Section 2-119 of the Illinois Pension Code.
6However, a person who satisfies the criteria of the foregoing
7definition of "employee" except that such person is made
8ineligible to participate in the State Universities Retirement
9System by clause (4) of subsection (a) of Section 15-107 of the
10Illinois Pension Code is also an "employee" for the purposes of
11this Act. "Employee" also includes any person receiving or
12eligible for benefits under a sick pay plan established in
13accordance with Section 36 of the State Finance Act. "Employee"
14also includes (i) each officer or employee in the service of a
15qualified local government, including persons appointed as
16trustees of sanitary districts regardless of hours devoted to
17the service of the sanitary district, (ii) each employee in the
18service of a qualified rehabilitation facility, (iii) each
19full-time employee in the service of a qualified domestic
20violence shelter or service, and (iv) each full-time employee
21in the service of a qualified child advocacy center, as
22determined according to rules promulgated by the Director.
23    (l) "Member" means an employee, annuitant, retired
24employee or survivor.
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) "New SERS survivor" means a survivor, as defined in
15subsection (q), whose annuity is paid under Article 14 of the
16Illinois Pension Code and is based on the death of (i) an
17employee whose death occurs on or after January 1, 1998, or
18(ii) a new SERS annuitant as defined in subsection (b-5). "New
19SERS survivor" includes the surviving dependent of a person who
20was an annuitant under this Act by virtue of receiving an
21alternative retirement cancellation payment under Section
2214-108.5 of the Illinois Pension Code.
23    (q-6) "New SURS survivor" means a survivor, as defined in
24subsection (q), whose annuity is paid under Article 15 of the
25Illinois Pension Code and is based on the death of (i) an
26employee whose death occurs on or after January 1, 1998, or

 

 

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1(ii) a new SURS annuitant as defined in subsection (b-6).
2    (q-7) "New TRS State survivor" means a survivor, as defined
3in subsection (q), whose annuity is paid under Article 16 of
4the Illinois Pension Code and is based on the death of (i) an
5employee who is a teacher as defined in paragraph (2), (3), or
6(5) of Section 16-106 of that Code and whose death occurs on or
7after July 1, 1998, or (ii) a new TRS State annuitant as
8defined in subsection (b-7).
9    (r) "Medical services" means the services provided within
10the scope of their licenses by practitioners in all categories
11licensed under the Medical Practice Act of 1987.
12    (s) "Unit of local government" means any county,
13municipality, township, school district (including a
14combination of school districts under the Intergovernmental
15Cooperation Act), special district or other unit, designated as
16a unit of local government by law, which exercises limited
17governmental powers or powers in respect to limited
18governmental subjects, any not-for-profit association with a
19membership that primarily includes townships and township
20officials, that has duties that include provision of research
21service, dissemination of information, and other acts for the
22purpose of improving township government, and that is funded
23wholly or partly in accordance with Section 85-15 of the
24Township Code; any not-for-profit corporation or association,
25with a membership consisting primarily of municipalities, that
26operates its own utility system, and provides research,

 

 

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1training, dissemination of information, or other acts to
2promote cooperation between and among municipalities that
3provide utility services and for the advancement of the goals
4and purposes of its membership; the Southern Illinois
5Collegiate Common Market, which is a consortium of higher
6education institutions in Southern Illinois; the Illinois
7Association of Park Districts; and any hospital provider that
8is owned by a county that has 100 or fewer hospital beds and
9has not already joined the program. "Qualified local
10government" means a unit of local government approved by the
11Director and participating in a program created under
12subsection (i) of Section 10 of this Act.
13    (t) "Qualified rehabilitation facility" means any
14not-for-profit organization that is accredited by the
15Commission on Accreditation of Rehabilitation Facilities or
16certified by the Department of Human Services (as successor to
17the Department of Mental Health and Developmental
18Disabilities) to provide services to persons with disabilities
19and which receives funds from the State of Illinois for
20providing those services, approved by the Director and
21participating in a program created under subsection (j) of
22Section 10 of this Act.
23    (u) "Qualified domestic violence shelter or service" means
24any Illinois domestic violence shelter or service and its
25administrative offices funded by the Department of Human
26Services (as successor to the Illinois Department of Public

 

 

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1Aid), approved by the Director and participating in a program
2created under subsection (k) of Section 10.
3    (v) "TRS benefit recipient" means a person who:
4        (1) is not a "member" as defined in this Section; and
5        (2) is receiving a monthly benefit or retirement
6    annuity under Article 16 of the Illinois Pension Code; and
7        (3) either (i) has at least 8 years of creditable
8    service under Article 16 of the Illinois Pension Code, or
9    (ii) was enrolled in the health insurance program offered
10    under that Article on January 1, 1996, or (iii) is the
11    survivor of a benefit recipient who had at least 8 years of
12    creditable service under Article 16 of the Illinois Pension
13    Code or was enrolled in the health insurance program
14    offered under that Article on the effective date of this
15    amendatory Act of 1995, or (iv) is a recipient or survivor
16    of a recipient of a disability benefit under Article 16 of
17    the Illinois Pension Code.
18    (w) "TRS dependent beneficiary" means a person who:
19        (1) is not a "member" or "dependent" as defined in this
20    Section; and
21        (2) is a TRS benefit recipient's: (A) spouse, (B)
22    dependent parent who is receiving at least half of his or
23    her support from the TRS benefit recipient, or (C)
24    unmarried natural or adopted child who is (i) under age 19,
25    or (ii) enrolled as a full-time student in an accredited
26    school, financially dependent upon the TRS benefit

 

 

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1    recipient, eligible to be claimed as a dependent for income
2    tax purposes, and either is under age 24 or was, on January
3    1, 1996, participating as a dependent beneficiary in the
4    health insurance program offered under Article 16 of the
5    Illinois Pension Code, or (iii) age 19 or over who is
6    mentally or physically handicapped.
7    (x) "Military leave with pay and benefits" refers to
8individuals in basic training for reserves, special/advanced
9training, annual training, emergency call up, or activation by
10the President of the United States with approved pay and
11benefits.
12    (y) "Military leave without pay and benefits" refers to
13individuals who enlist for active duty in a regular component
14of the U.S. Armed Forces or other duty not specified or
15authorized under military leave with pay and benefits.
16    (z) "Community college benefit recipient" means a person
17who:
18        (1) is not a "member" as defined in this Section; and
19        (2) is receiving a monthly survivor's annuity or
20    retirement annuity under Article 15 of the Illinois Pension
21    Code; and
22        (3) either (i) was a full-time employee of a community
23    college district or an association of community college
24    boards created under the Public Community College Act
25    (other than, until July 1, 2012, an employee whose last
26    employer under Article 15 of the Illinois Pension Code was

 

 

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1    a community college district subject to Article VII of the
2    Public Community College Act) and was eligible to
3    participate in a group health benefit plan as an employee
4    during the time of employment with a community college
5    district (other than, until July 1, 2012, a community
6    college district subject to Article VII of the Public
7    Community College Act) or an association of community
8    college boards, or (ii) is the survivor of a person
9    described in item (i).
10    "Community college benefit recipient" does not include:
11        (1) an individual who was a full-time employee of a
12    community college district subject to Article VII of the
13    Public Community College Act and who, prior to the
14    effective date of this amendatory Act of the 97th General
15    Assembly, (i) opted not to participate in the health
16    benefits program provided by the community college
17    district subject to Article VII of the Public Community
18    College Act and (ii) is ineligible for benefits under the
19    federal Medicare health insurance program (Title XVIII of
20    the Social Security Act as added by P.L. 89-97, 89th
21    Congress); or
22        (2) an individual receiving a monthly survivor's
23    annuity under Article 15 of the Illinois Pension Code if
24    the individual upon whom the annuity is based was (i) last
25    employed by a community college subject to Article VII of
26    the Public Community College Act and (ii) was not enrolled

 

 

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1    in the program established under Section 6.9 of this Act.
2    (aa) "Community college dependent beneficiary" means a
3person who:
4        (1) is not a "member" or "dependent" as defined in this
5    Section; and
6        (2) is a community college benefit recipient's: (A)
7    spouse, (B) dependent parent who is receiving at least half
8    of his or her support from the community college benefit
9    recipient, or (C) unmarried natural or adopted child who is
10    (i) under age 19, or (ii) enrolled as a full-time student
11    in an accredited school, financially dependent upon the
12    community college benefit recipient, eligible to be
13    claimed as a dependent for income tax purposes and under
14    age 23, or (iii) age 19 or over and mentally or physically
15    handicapped.
16    (bb) "Qualified child advocacy center" means any Illinois
17child advocacy center and its administrative offices funded by
18the Department of Children and Family Services, as defined by
19the Children's Advocacy Center Act (55 ILCS 80/), approved by
20the Director and participating in a program created under
21subsection (n) of Section 10.
22(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
2396-756, eff. 1-1-10.)
 
24    (5 ILCS 375/6.9)
25    Sec. 6.9. Health benefits for community college benefit

 

 

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1recipients and community college dependent beneficiaries.
2    (a) Purpose. It is the purpose of this amendatory Act of
31997 and this amendatory Act of the 97th General Assembly to
4establish a uniform program of health benefits for community
5college benefit recipients and their dependent beneficiaries
6under the administration of the Department of Central
7Management Services.
8    (b) Creation of program. Beginning July 1, 1999, the
9Department of Central Management Services shall be responsible
10for administering a program of health benefits for community
11college benefit recipients and community college dependent
12beneficiaries under this Section. The State Universities
13Retirement System and the boards of trustees of the various
14community college districts shall cooperate with the
15Department in this endeavor. Beginning July 1, 2012, this
16program shall include health benefits for community college
17benefit recipients and community college dependent
18beneficiaries subject to Article VII of the Public Community
19College Act.
20    (c) Eligibility. All community college benefit recipients
21and community college dependent beneficiaries shall be
22eligible to participate in the program established under this
23Section, without any interruption or delay in coverage or
24limitation as to pre-existing medical conditions. Eligibility
25to participate shall be determined by the State Universities
26Retirement System. Eligibility information shall be

 

 

HB1374- 19 -LRB097 09955 JDS 50122 b

1communicated to the Department of Central Management Services
2in a format acceptable to the Department.
3    (d) Coverage. The health benefit coverage provided under
4this Section shall be a program of health, dental, and vision
5benefits.
6    The program of health benefits under this Section may
7include any or all of the benefit limitations, including but
8not limited to a reduction in benefits based on eligibility for
9federal medicare benefits, that are provided under subsection
10(a) of Section 6 of this Act for other health benefit programs
11under this Act.
12    (e) Insurance rates and premiums. The Director shall
13determine the insurance rates and premiums for community
14college benefit recipients and community college dependent
15beneficiaries. Rates and premiums may be based in part on age
16and eligibility for federal Medicare coverage. The Director
17shall also determine premiums that will allow for the
18establishment of an actuarially sound reserve for this program.
19    The cost of health benefits under the program shall be paid
20as follows:
21        (1) For a community college benefit recipient, up to
22    75% of the total insurance rate shall be paid from the
23    Community College Health Insurance Security Fund.
24        (2) The balance of the rate of insurance, including the
25    entire premium for any coverage for community college
26    dependent beneficiaries that has been elected, shall be

 

 

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1    paid by deductions authorized by the community college
2    benefit recipient to be withheld from his or her monthly
3    annuity or benefit payment from the State Universities
4    Retirement System; except that (i) if the balance of the
5    cost of coverage exceeds the amount of the monthly annuity
6    or benefit payment, the difference shall be paid directly
7    to the State Universities Retirement System by the
8    community college benefit recipient, and (ii) all or part
9    of the balance of the cost of coverage may, at the option
10    of the board of trustees of the community college district,
11    be paid to the State Universities Retirement System by the
12    board of the community college district from which the
13    community college benefit recipient retired. The State
14    Universities Retirement System shall promptly deposit all
15    moneys withheld by or paid to it under this subdivision
16    (e)(2) into the Community College Health Insurance
17    Security Fund. These moneys shall not be considered assets
18    of the State Universities Retirement System.
19    (f) Financing. All revenues arising from the
20administration of the health benefit program established under
21this Section shall be deposited into the Community College
22Health Insurance Security Fund, which is hereby created as a
23nonappropriated trust fund to be held outside the State
24Treasury, with the State Treasurer as custodian. The Community
25College Health Insurance Security Fund is not subject to
26administrative charges or charge backs, including, but not

 

 

HB1374- 21 -LRB097 09955 JDS 50122 b

1limited to, those authorized under Section 8h of the State
2Finance Act. Any interest earned on moneys in the Community
3College Health Insurance Security Fund shall be deposited into
4the Fund.
5    Moneys in the Community College Health Insurance Security
6Fund shall be used only to pay the costs of the health benefit
7program established under this Section, including associated
8administrative costs and the establishment of a program
9reserve. Beginning January 1, 1999, the Department of Central
10Management Services may make expenditures from the Community
11College Health Insurance Security Fund for those costs.
12    (g) Contract for benefits. The Director shall by contract,
13self-insurance, or otherwise make available the program of
14health benefits for community college benefit recipients and
15their community college dependent beneficiaries that is
16provided for in this Section. The contract or other arrangement
17for the provision of these health benefits shall be on terms
18deemed by the Director to be in the best interest of the State
19of Illinois and the community college benefit recipients based
20on, but not limited to, such criteria as administrative cost,
21service capabilities of the carrier or other contractor, and
22the costs of the benefits.
23    (h) Continuation of program. It is the intention of the
24General Assembly that the program of health benefits provided
25under this Section be maintained on an ongoing, affordable
26basis. The program of health benefits provided under this

 

 

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1Section may be amended by the State and is not intended to be a
2pension or retirement benefit subject to protection under
3Article XIII, Section 5 of the Illinois Constitution.
4    (i) Other health benefit plans. A health benefit plan
5provided by a community college district (other than, until
6July 1, 2012, a community college district subject to Article
7VII of the Public Community College Act) under the terms of a
8collective bargaining agreement in effect on or prior to the
9effective date of this amendatory Act of 1997 shall continue in
10force according to the terms of that agreement, unless
11otherwise mutually agreed by the parties to that agreement and
12the affected retiree. A community college benefit recipient or
13community college dependent beneficiary whose coverage under
14such a plan expires shall be eligible to begin participating in
15the program established under this Section without any
16interruption or delay in coverage or limitation as to
17pre-existing medical conditions.
18    This Act does not prohibit any community college district
19from offering additional health benefits for its retirees or
20their dependents or survivors.
21(Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
 
22    (5 ILCS 375/6.10)
23    Sec. 6.10. Contributions to the Community College Health
24Insurance Security Fund.
25    (a) Beginning January 1, 1999, every active contributor of

 

 

HB1374- 23 -LRB097 09955 JDS 50122 b

1the State Universities Retirement System (established under
2Article 15 of the Illinois Pension Code) who (1) is a full-time
3employee of a community college district (other than, until
4January 1, 2012, a community college district subject to
5Article VII of the Public Community College Act) or an
6association of community college boards and (2) is not an
7employee as defined in Section 3 of this Act shall make
8contributions toward the cost of community college annuitant
9and survivor health benefits at the rate of 0.50% of salary.
10Beginning on the effective date of this amendatory Act of the
1197th General Assembly, these contributions shall be at the rate
12of 0.66% of salary. Beginning July 1, 2011, these contributions
13shall be at the rate of 0.82% of salary. Beginning July 1,
142012, these contributions shall be at the rate of 0.97% of
15salary. Beginning July 1, 2013, these contributions shall be at
16the rate of 1.02% of salary. Beginning July 1, 2014, these
17contributions shall be at the rate of 1.07% of salary.
18Beginning July 1, 2015, these contributions shall be at the
19rate of 1.18% of salary.
20    These contributions shall be deducted by the employer and
21paid to the State Universities Retirement System as service
22agent for the Department of Central Management Services. The
23System may use the same processes for collecting the
24contributions required by this subsection that it uses to
25collect the contributions received from those employees under
26Section 15-157 of the Illinois Pension Code. An employer may

 

 

HB1374- 24 -LRB097 09955 JDS 50122 b

1agree to pick up or pay the contributions required under this
2subsection on behalf of the employee; such contributions shall
3be deemed to have been paid by the employee.
4    The State Universities Retirement System shall promptly
5deposit all moneys collected under this subsection (a) into the
6Community College Health Insurance Security Fund created in
7Section 6.9 of this Act. The moneys collected under this
8Section shall be used only for the purposes authorized in
9Section 6.9 of this Act and shall not be considered to be
10assets of the State Universities Retirement System.
11Contributions made under this Section are not transferable to
12other pension funds or retirement systems and are not
13refundable upon termination of service.
14    (b) Beginning January 1, 1999, every community college
15district (other than, until January 1, 2012, a community
16college district subject to Article VII of the Public Community
17College Act) or association of community college boards that is
18an employer under the State Universities Retirement System
19shall contribute toward the cost of the community college
20health benefits provided under Section 6.9 of this Act an
21amount equal to 0.50% of the salary paid to its full-time
22employees who participate in the State Universities Retirement
23System and are not members as defined in Section 3 of this Act.
24Beginning on the effective date of this amendatory Act of the
2597th General Assembly, these contributions shall be at the rate
26of 0.66% of salary. Beginning July 1, 2011, these contributions

 

 

HB1374- 25 -LRB097 09955 JDS 50122 b

1shall be at the rate of 0.82% of salary. Beginning July 1,
22012, these contributions shall be at the rate of 0.97% of
3salary. Beginning July 1, 2013, these contributions shall be at
4the rate of 1.02% of salary. Beginning July 1, 2014, these
5contributions shall be at the rate of 1.07% of salary.
6Beginning July 1, 2015, these contributions shall be at the
7rate of 1.18% of salary.
8    These contributions shall be paid by the employer to the
9State Universities Retirement System as service agent for the
10Department of Central Management Services. The System may use
11the same processes for collecting the contributions required by
12this subsection that it uses to collect the contributions
13received from those employers under Section 15-155 of the
14Illinois Pension Code.
15    The State Universities Retirement System shall promptly
16deposit all moneys collected under this subsection (b) into the
17Community College Health Insurance Security Fund created in
18Section 6.9 of this Act. The moneys collected under this
19Section shall be used only for the purposes authorized in
20Section 6.9 of this Act and shall not be considered to be
21assets of the State Universities Retirement System.
22Contributions made under this Section are not transferable to
23other pension funds or retirement systems and are not
24refundable upon termination of service.
25    The Department of Healthcare and Family Services, or any
26successor agency designated to procure healthcare contracts

 

 

HB1374- 26 -LRB097 09955 JDS 50122 b

1pursuant to this Act, is authorized to establish funds,
2separate accounts provided by any bank or banks as defined by
3the Illinois Banking Act, or separate accounts provided by any
4savings and loan association or associations as defined by the
5Illinois Savings and Loan Act of 1985 to be held by the
6Director, outside the State treasury, for the purpose of
7receiving the transfer of moneys from the Community College
8Health Insurance Security Fund. The Department may promulgate
9rules further defining the methodology for the transfers. Any
10interest earned by moneys in the funds or accounts shall inure
11to the Community College Health Insurance Security Fund. The
12transferred moneys, and interest accrued thereon, shall be used
13exclusively for transfers to administrative service
14organizations or their financial institutions for payments of
15claims to claimants and providers under the self-insurance
16health plan. The transferred moneys, and interest accrued
17thereon, shall not be used for any other purpose including, but
18not limited to, reimbursement of administration fees due the
19administrative service organization pursuant to its contract
20or contracts with the Department.
21    (b-5) On or before March 30, 2012, a community college
22district subject to Article VII of the Public Community College
23Act shall contribute an amount equal to $10 million toward the
24cost of the community college health benefits provided under
25Section 6.9 of this Act. One-half of this amount shall be
26contributed on or before March 30, 2011, and the balance of

 

 

HB1374- 27 -LRB097 09955 JDS 50122 b

1that amount shall be contributed on or before March 30, 2012.
2The contribution shall be in addition to any percentage of
3salary contribution paid pursuant to subsection (b) of Section
46.10 of this Act.
5    (b-10) On or before September 1, 2012, a community college
6district subject to Article VII of the Public Community College
7Act shall contribute an amount equal to 3 times the product
8resulting from multiplying (i) the difference between the
9fiscal year 2013 per annuitant cost of the community college
10health benefits provided under Section 6.9 of this Act and the
11fiscal year 2013 per annuitant premium paid by the annuitant by
12(ii) the number of annuitants enrolled in the community college
13health benefits program under Section 6.9 of this Act who
14became annuitants on or before the effective date of this
15amendatory date of the 97th General Assembly and who, prior to
16that date, opted not to participate in the health benefits
17program provided by the community college district subject to
18Article VII of the Public Community College Act. The
19calculation of the contribution created under this subsection
20(b-10) shall be subject to review and approval by the
21Commission on Governmental Forecasting and Accountability.
22    (c) On or before November 15 of each year, the Board of
23Trustees of the State Universities Retirement System shall
24certify to the Governor, the Director of Central Management
25Services, and the State Comptroller its estimate of the total
26amount of contributions to be paid under subsection (a) of this

 

 

HB1374- 28 -LRB097 09955 JDS 50122 b

1Section for the next fiscal year. Beginning in fiscal year
22008, the amount certified shall be decreased or increased each
3year by the amount that the actual active employee
4contributions either fell short of or exceeded the estimate
5used by the Board in making the certification for the previous
6fiscal year. The State Universities Retirement System shall
7calculate the amount of actual active employee contributions in
8fiscal years 1999 through 2005. Based upon this calculation,
9the fiscal year 2008 certification shall include an amount
10equal to the cumulative amount that the actual active employee
11contributions either fell short of or exceeded the estimate
12used by the Board in making the certification for those fiscal
13years. The certification shall include a detailed explanation
14of the methods and information that the Board relied upon in
15preparing its estimate. As soon as possible after the effective
16date of this Section, the Board shall submit its estimate for
17fiscal year 1999. As soon as practical after the effective date
18of this amendatory Act of the 97th General Assembly, the Board
19of Trustees of the State Universities Retirement System shall
20recertify to the Governor, the Director of Central Management
21Services, and the State Comptroller its estimate of the total
22amount of contributions to be contributed under subsection (a)
23of this Section for the remainder of fiscal year 2011 and for
24the next fiscal year taking into account the changes made by
25this amendatory Act of the 97th General Assembly.
26    (d) Beginning in fiscal year 1999, on the first day of each

 

 

HB1374- 29 -LRB097 09955 JDS 50122 b

1month, or as soon thereafter as may be practical, the State
2Treasurer and the State Comptroller shall transfer from the
3General Revenue Fund to the Community College Health Insurance
4Security Fund 1/12 of the annual amount appropriated for that
5fiscal year to the State Comptroller for deposit into the
6Community College Health Insurance Security Fund under Section
71.4 of the State Pension Funds Continuing Appropriation Act.
8    (e) Except where otherwise specified in this Section, the
9definitions that apply to Article 15 of the Illinois Pension
10Code apply to this Section.
11(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
 
12    Section 90. The State Mandates Act is amended by adding
13Section 8.35 as follows:
 
14    (30 ILCS 805/8.35 new)
15    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
16of this Act, no reimbursement by the State is required for the
17implementation of any mandate created by this amendatory Act of
18the 97th General Assembly.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.