093_HB2343

 
                                     LRB093 08160 EFG 08366 b

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 8-137 and 8-164.1 as follows:

 6        (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
 7        Sec. 8-137.  Automatic increase in annuity.
 8        (a)  An employee who  retired  or  retires  from  service
 9    after  December  31,  1959 and before January 1, 1987, having
10    attained age 60 or more, shall, in January of the year  after
11    the year in which the first anniversary of retirement occurs,
12    have the amount of his then fixed and payable monthly annuity
13    increased  by 1 1/2%, and such first fixed annuity as granted
14    at retirement increased by a further 1  1/2%  in  January  of
15    each  year  thereafter.   Beginning  with January of the year
16    1972, such increases shall be at the rate of 2%  in  lieu  of
17    the aforesaid specified 1 1/2%, and beginning with January of
18    the  year  1984  such  increases  shall be at the rate of 3%.
19    Beginning in January of 1999, such increases shall be at  the
20    rate   of  3%  of  the  currently  payable  monthly  annuity,
21    including  any  increases  previously  granted   under   this
22    Article.   An  employee who retires on annuity after December
23    31, 1959 and before January 1, 1987, but before age 60, shall
24    receive such increases beginning in January of the year after
25    the year in which he attains age 60.
26        An employee who retires from service on or after  January
27    1,  1987 shall, upon the first annuity payment date following
28    the first anniversary of the date of retirement, or upon  the
29    first  annuity  payment  date following attainment of age 60,
30    whichever occurs later,  have  his  then  fixed  and  payable
31    monthly  annuity  increased  by 3%, and such annuity shall be
 
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 1    increased by an additional 3% of the original  fixed  annuity
 2    on  the same date each year thereafter.  Beginning in January
 3    of 1999, such increases shall be at the rate  of  3%  of  the
 4    currently  payable  monthly  annuity, including any increases
 5    previously granted under this Article.
 6        (a-5)  Notwithstanding the provisions of subsection  (a),
 7    upon  the  first annuity payment date following (1) the third
 8    anniversary of retirement, (2) the attainment of age  53,  or
 9    (3)  January  1,  2002,  the date 60 days after the effective
10    date of this amendatory Act of  the  92nd  General  Assembly,
11    whichever  occurs  latest, the monthly annuity of an employee
12    who retires on annuity prior to the attainment of age 60  and
13    who  has  not received an increase under subsection (a) shall
14    be increased by 3%, and the such annuity shall  be  increased
15    by  an  additional 3% of the current payable monthly annuity,
16    including any such increases previously  granted  under  this
17    Article,   on  the  same  date  each  year  thereafter.   The
18    increases provided under this subsection are in lieu  of  the
19    increases provided in subsection (a).
20        (a-6)  Notwithstanding  the  provisions of subsection (a)
21    and (a-5), upon the first annuity payment date following  (1)
22    the  second  anniversary of retirement, (2) the attainment of
23    age 53, or (3) January 1, 2004, whichever occurs latest,  the
24    monthly  annuity  of an employee who retires on annuity prior
25    to the attainment of age 60 and has not received an  increase
26    under  subsection  (a) or (a-5) shall be increased by 3%, and
27    the annuity shall be increased by an  additional  3%  of  the
28    current  payable  monthly  annuity,  including  any increases
29    previously granted under this Article, on the same date  each
30    year   thereafter.      The  increases  provided  under  this
31    subsection  are  in  lieu  of  the  increases   provided   in
32    subsections (a) and (a-5).
33        (b)  Subsections  (a),  and  (a-5),  and  (a-6)  are  not
34    applicable  to  an  employee  retiring  and  receiving a term
 
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 1    annuity, as herein defined, nor to  any  otherwise  qualified
 2    employee  who  retires before he makes employee contributions
 3    (at the 1/2 of 1% rate as provided  in  this  Act)  for  this
 4    additional  annuity  for  not less than the equivalent of one
 5    full year.  Such employee, however, shall make arrangement to
 6    pay to the fund a balance of such 1/2  of  1%  contributions,
 7    based  on  his  final  salary,  as  will bring such 1/2 of 1%
 8    contributions, computed without interest, to  the  equivalent
 9    of or completion of one year's contributions.
10        Beginning   with   January,  1960,  each  employee  shall
11    contribute by means of salary deductions 1/2 of  1%  of  each
12    salary  payment,  concurrently  with  and  in addition to the
13    employee contributions otherwise made for annuity purposes.
14        Each such additional contribution shall be credited to an
15    account in the prior service annuity  reserve,  to  be  used,
16    together  with  city contributions, to defray the cost of the
17    specified annuity increments. Any balance in such account  at
18    the  beginning  of  each calendar year shall be credited with
19    interest at the rate of 3% per annum.
20        Such   additional   employee   contributions   are    not
21    refundable,  except  to an employee who withdraws and applies
22    for refund under this Article, and  in  cases  where  a  term
23    annuity  becomes  payable.  In  such  cases his contributions
24    shall be refunded, without  interest,  and  charged  to  such
25    account in the prior service annuity reserve.
26    (Source:  P.A.  92-599,  eff.  6-28-02;  92-609, eff. 7-1-02;
27    revised 8-26-02.)

28        (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
29        Sec. 8-164.1.  Group health benefit.
30        (a)  For the purposes of this  Section:  (1)  "annuitant"
31    means  a person receiving an age and service annuity, a prior
32    service annuity, a widow's annuity, a widow's  prior  service
33    annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
 
                            -4-      LRB093 08160 EFG 08366 b
 1    by reason of previous  employment  by  the  City  of  Chicago
 2    (hereinafter,  in  this  Section,  "the city"); (2) "Medicare
 3    Plan annuitant" means an annuitant described in item (1)  who
 4    is eligible for Medicare benefits; and (3) "non-Medicare Plan
 5    annuitant"  means  an  annuitant described in item (1) who is
 6    not eligible for Medicare benefits.
 7        (b)  The  city  shall  offer  group  health  benefits  to
 8    annuitants and their eligible  dependents  through  June  30,
 9    2005  2003.  The  basic city health care plan available as of
10    June 30, 1988 (hereinafter called the basic city plan)  shall
11    cease  to  be a plan offered by the city, except as specified
12    in subparagraphs (4) and (5) below, and shall  be  closed  to
13    new  enrollment  or transfer of coverage for any non-Medicare
14    Plan annuitant as of June 27, 1997.   The  city  shall  offer
15    non-Medicare  Plan  annuitants  and their eligible dependents
16    the option of enrolling in its Annuitant  Preferred  Provider
17    Plan  and  may offer additional plans for any annuitant.  The
18    city may amend, modify, or terminate any  of  its  additional
19    plans  at  its sole discretion.  If the city offers more than
20    one annuitant  plan,  the  city  shall  allow  annuitants  to
21    convert  coverage  from  one  city annuitant plan to another,
22    except the basic city plan, during times  designated  by  the
23    city,  which  periods  of time shall occur at least annually.
24    For the period dating from June 27,  1997  through  June  30,
25    2005  2003,  monthly  premium  rates  may  be  increased  for
26    annuitants   during   the  time  of  their  participation  in
27    non-Medicare plans, except as provided in  subparagraphs  (1)
28    through (4) of this subsection.
29             (1)  For  non-Medicare  Plan  annuitants who retired
30        prior to  January  1,  1988,  the  annuitant's  share  of
31        monthly premium for non-Medicare Plan coverage only shall
32        not  exceed the highest premium rate chargeable under any
33        city non-Medicare Plan annuitant coverage as of  December
34        1, 1996.
 
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 1             (2)  For  non-Medicare Plan annuitants who retire on
 2        or after  January  1,  1988,  the  annuitant's  share  of
 3        monthly premium for non-Medicare Plan coverage only shall
 4        be  the  rate in effect on December 1, 1996, with monthly
 5        premium increases to take effect no sooner than April  1,
 6        1998  at  the  lower  of  (i) the premium rate determined
 7        pursuant to subsection (g) or (ii) 10% of the immediately
 8        previous month's rate for similar coverage.
 9             (3)  In  no  event  shall  any   non-Medicare   Plan
10        annuitant's  share  of  monthly  premium for non-Medicare
11        Plan coverage  exceed  10%  of  the  annuitant's  monthly
12        annuity.
13             (4)  Non-Medicare  Plan  annuitants who are enrolled
14        in the basic city plan as of July 1, 1998 may  remain  in
15        the  basic city plan, if they so choose, on the condition
16        that they are not entitled to the caps on rates set forth
17        in subparagraphs (1) through (3), and their premium  rate
18        shall   be   the   rate  determined  in  accordance  with
19        subsections (c) and (g).
20             (5)  Medicare  Plan  annuitants  who  are  currently
21        enrolled in the basic city  plan  for  Medicare  eligible
22        annuitants  may  remain  in that plan, if they so choose,
23        through June 30, 2005  2003.   Annuitants  shall  not  be
24        allowed to enroll in or transfer into the basic city plan
25        for  Medicare  eligible  annuitants  on  or after July 1,
26        1999.  The city shall  continue  to  offer  annuitants  a
27        supplemental   Medicare   Plan   for   Medicare  eligible
28        annuitants through June 30, 2005 2003, and the  city  may
29        offer additional plans to Medicare eligible annuitants in
30        its sole discretion.  All Medicare Plan annuitant monthly
31        rates  shall be determined in accordance with subsections
32        (c) and (g).
33        (c)  The city shall pay 50% of the  aggregated  costs  of
34    the   claims   or   premiums,  whichever  is  applicable,  as
 
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 1    determined in accordance with subsection (g),  of  annuitants
 2    and  their  dependents under all health care plans offered by
 3    the city.  The city may reduce its obligation by  application
 4    of  price  reductions  obtained  as  a  result  of  financial
 5    arrangements with providers or plan administrators.
 6        (d)  From  January 1, 1993 until June 30, 2003, the board
 7    shall pay to the city  on  behalf  of  each  of  the  board's
 8    annuitants  who  chooses  to participate in any of the city's
 9    plans the following amounts: up to a maximum of $75 per month
10    for each such annuitant  who  is  not  qualified  to  receive
11    medicare  benefits,  and up to a maximum of $45 per month for
12    each such annuitant who  is  qualified  to  receive  medicare
13    benefits.
14        From  July  1,  2003 until June 30, 2005, the board shall
15    pay to the city on behalf of each of the  board's  annuitants
16    who  chooses  to  participate  in any of the city's plans the
17    following amounts: up to a maximum of $180 per month for each
18    such annuitant who  is  not  qualified  to  receive  medicare
19    benefits, and up to a maximum of $110 per month for each such
20    annuitant who is qualified to receive medicare benefits.
21        Commencing on August 23, 1989, the board is authorized to
22    pay  to  the  board of education on behalf of each person who
23    chooses to participate in the board of education's  plan  the
24    amounts  specified  in  this  subsection (d) during the years
25    indicated.  For the period January 1, 1988 through August 23,
26    1989,  the  board  shall  pay  to  the  board  of   education
27    annuitants who participate in the board of education's health
28    benefits  plan  for annuitants the following amounts: $10 per
29    month to each annuitant  who  is  not  qualified  to  receive
30    medicare benefits, and $14 per month to each annuitant who is
31    qualified to receive medicare benefits.
32        The  payments  described in this subsection shall be paid
33    from the  tax  levy  authorized  under  Section  8-189;  such
34    amounts  shall  be credited to the reserve for group hospital
 
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 1    care and group medical and surgical plan  benefits,  and  all
 2    payments  to the city required under this subsection shall be
 3    charged against it.
 4        (e)  The city's obligations under subsections (b) and (c)
 5    shall terminate on June 30, 2005 2003, except with regard  to
 6    covered expenses incurred but not paid as of that date.  This
 7    subsection  shall  not  affect  other obligations that may be
 8    imposed by law.
 9        (f)  The group coverage plans described in  this  Section
10    are  not  and  shall  not  be  construed  to  be  pension  or
11    retirement benefits for purposes of Section 5 of Article XIII
12    of the Illinois Constitution of 1970.
13        (g)  For  each  annuitant  plan  offered by the city, the
14    aggregate cost of claims, as reflected in the  claim  records
15    of  the  plan  administrator, shall be estimated by the city,
16    based upon a written determination by a qualified independent
17    actuary to be appointed and paid by the city and  the  board.
18    If  the estimated annual cost for each annuitant plan offered
19    by  the  city  is  more  than  the  estimated  amount  to  be
20    contributed by the city for that plan pursuant to subsections
21    (b) and (c) during that year plus the estimated amounts to be
22    paid pursuant to subsection (d)  and  by  the  other  pension
23    boards  on  behalf  of  other  participating  annuitants, the
24    difference shall be paid by all annuitants  participating  in
25    the  plan,  except  as provided in subsection (b).  The city,
26    based upon the  determination  of  the  independent  actuary,
27    shall set the monthly amounts to be paid by the participating
28    annuitants.    The board may deduct the amounts to be paid by
29    its annuitants from  the  participating  annuitants'  monthly
30    annuities.
31        If it is determined from the city's annual audit, or from
32    audited  experience  data,  that the total amount paid by all
33    participating annuitants was more or less than the difference
34    between (1) the cost  of  providing  the  group  health  care
 
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 1    plans,  and  (2) the sum of the amount to be paid by the city
 2    as determined under subsection (c) and the  amounts  paid  by
 3    all  the pension boards, then the independent actuary and the
 4    city shall account for the excess or shortfall  in  the  next
 5    year's   payments   by  annuitants,  except  as  provided  in
 6    subsection (b).
 7        (h)  An annuitant may elect to terminate  coverage  in  a
 8    plan  at the end of any month, which election shall terminate
 9    the annuitant's obligation to contribute  toward  payment  of
10    the excess described in subsection (g).
11        (i)  The  city  shall  advise  the  board of all proposed
12    premium increases for health care at least 75 days  prior  to
13    the  effective  date of the change, and any increase shall be
14    prospective only.
15    (Source: P.A. 92-599, eff. 6-28-02.)

16        Section 90.  The State Mandates Act is amended by  adding
17    Section 8.27 as follows:

18        (30 ILCS 805/8.27 new)
19        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
20    and 8 of this Act, no reimbursement by the State is  required
21    for  the  implementation  of  any  mandate  created  by  this
22    amendatory Act of the 93rd General Assembly.

23        Section  99.  Effective date.  This Act takes effect upon
24    becoming law.