97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4711

 

Introduced 2/3/2012, by Rep. Pam Roth

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/6.6

    Amends the State Employees Group Insurance Act of 1971. Provides that, notwithstanding any other law to the contrary, the Teachers Health Insurance Security Fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Teachers Health Insurance Security Fund into any other fund of the State. Effective immediately


LRB097 14539 JDS 59394 b

 

 

A BILL FOR

 

HB4711LRB097 14539 JDS 59394 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 6.6 as follows:
 
6    (5 ILCS 375/6.6)
7    Sec. 6.6. Contributions to the Teacher Health Insurance
8Security Fund.
9    (a) Beginning July 1, 1995, all active contributors of the
10Teachers' Retirement System (established under Article 16 of
11the Illinois Pension Code) who are not employees of a
12department as defined in Section 3 of this Act shall make
13contributions toward the cost of annuitant and survivor health
14benefits. These contributions shall be at the following rates:
15until January 1, 2002, 0.5% of salary; beginning January 1,
162002, 0.65% of salary; beginning July 1, 2003, 0.75% of salary;
17beginning July 1, 2005, 0.80% of salary; beginning July 1,
182007, a percentage of salary to be determined by the Department
19of Central Management Services by rule, which in each fiscal
20year shall not exceed 105% of the percentage of salary actually
21required to be paid in the previous fiscal year.
22    These contributions shall be deducted by the employer and
23paid to the System as service agent for the Department of

 

 

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1Central Management Services. The System may use the same
2processes for collecting the contributions required by this
3subsection that it uses to collect contributions received from
4school districts and other covered employers under Sections
516-154 and 16-155 of the Illinois Pension Code.
6    An employer may agree to pick up or pay the contributions
7required under this subsection on behalf of the teacher; such
8contributions shall be deemed to have to have been paid by the
9teacher. Beginning January 1, 2002, if the employer does not
10directly pay the required member contribution, then the
11employer shall reduce the member's salary by an amount equal to
12the required contribution and shall then pay the contribution
13on behalf of the member. This reduction shall not change the
14amounts reported as creditable earnings to the Teachers'
15Retirement System.
16    A person who purchases optional service credit under
17Article 16 of the Illinois Pension Code for a period after June
1830, 1995 must also make a contribution under this subsection
19for that optional credit, at the rate provided in subsection
20(a), based on the salary used in computing the optional service
21credit, plus interest on this employee contribution. This
22contribution shall be collected by the System as service agent
23for the Department of Central Management Services. The
24contribution required under this subsection for the optional
25service credit must be paid in full before any annuity based on
26that credit begins.

 

 

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1    (a-5) Beginning January 1, 2002, every employer of a
2teacher (other than an employer that is a department as defined
3in Section 3 of this Act) shall pay an employer contribution
4toward the cost of annuitant and survivor health benefits.
5These contributions shall be computed as follows:
6        (1) Beginning January 1, 2002 through June 30, 2003,
7    the employer contribution shall be equal to 0.4% of each
8    teacher's salary.
9        (2) Beginning July 1, 2003, the employer contribution
10    shall be equal to 0.5% of each teacher's salary.
11        (3) Beginning July 1, 2005, the employer contribution
12    shall be equal to 0.6% of each teacher's salary.
13        (4) Beginning July 1, 2007, the employer contribution
14    shall be a percentage of each teacher's salary to be
15    determined by the Department of Central Management
16    Services by rule, which in each fiscal year shall not
17    exceed 105% of the percentage of each teacher's salary
18    actually required to be paid in the previous fiscal year.
19    These contributions shall be paid by the employer to the
20System as service agent for the Department of Central
21Management Services. The System may use the same processes for
22collecting the contributions required by this subsection that
23it uses to collect contributions received from school districts
24and other covered employers under the Illinois Pension Code.
25    The school district or other employing unit may pay these
26employer contributions out of any source of funding available

 

 

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1for that purpose and shall forward the contributions to the
2System on the schedule established for the payment of member
3contributions.
4    (b) The Teachers' Retirement System shall promptly deposit
5all moneys collected under subsections (a) and (a-5) of this
6Section into the Teacher Health Insurance Security Fund created
7in Section 6.5 of this Act. The moneys collected under this
8Section shall be used only for the purposes authorized in
9Section 6.5 of this Act and shall not be considered to be
10assets of the Teachers' Retirement System. Contributions made
11under this Section are not transferable to other pension funds
12or retirement systems and are not refundable upon termination
13of service.
14    (c) On or before November 15 of each year, the Board of
15Trustees of the Teachers' Retirement System shall certify to
16the Governor, the Director of Central Management Services, and
17the State Comptroller its estimate of the total amount of
18contributions to be paid under subsection (a) of this Section
196.6 for the next fiscal year. The amount certified shall be
20decreased or increased each year by the amount that the actual
21active teacher contributions either fell short of or exceeded
22the estimate used by the Board in making the certification for
23the previous fiscal year. The certification shall include a
24detailed explanation of the methods and information that the
25Board relied upon in preparing its estimate. As soon as
26possible after the effective date of this amendatory Act of the

 

 

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192nd General Assembly, the Board shall recalculate and
2recertify its certifications for fiscal years 2002 and 2003.
3    (d) Beginning in fiscal year 1996, on the first day of each
4month, or as soon thereafter as may be practical, the State
5Treasurer and the State Comptroller shall transfer from the
6General Revenue Fund to the Teacher Health Insurance Security
7Fund 1/12 of the annual amount appropriated for that fiscal
8year to the State Comptroller for deposit into the Teacher
9Health Insurance Security Fund under Section 1.3 of the State
10Pension Funds Continuing Appropriation Act.
11    (e) Except where otherwise specified in this Section, the
12definitions that apply to Article 16 of the Illinois Pension
13Code apply to this Section.
14    (f) (Blank).
15    (g) Notwithstanding any other law to the contrary, the
16Teachers Health Insurance Security Fund is not subject to
17sweeps, administrative charge-backs, or any other fiscal or
18budgetary maneuver that would in any way transfer any amounts
19from the Teachers Health Insurance Security Fund into any other
20fund of the State.
21(Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.