[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 92-0862
HB3080 Enrolled LRB9207368JSpc
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of
1971 is amended by changing Section 6.5 as follows:
(5 ILCS 375/6.5)
Sec. 6.5. Health benefits for TRS benefit recipients and
TRS dependent beneficiaries.
(a) Purpose. It is the purpose of this amendatory Act
of 1995 to transfer the administration of the program of
health benefits established for benefit recipients and their
dependent beneficiaries under Article 16 of the Illinois
Pension Code to the Department of Central Management
Services.
(b) Transition provisions. The Board of Trustees of the
Teachers' Retirement System shall continue to administer the
health benefit program established under Article 16 of the
Illinois Pension Code through December 31, 1995. Beginning
January 1, 1996, the Department of Central Management
Services shall be responsible for administering a program of
health benefits for TRS benefit recipients and TRS dependent
beneficiaries under this Section. The Department of Central
Management Services and the Teachers' Retirement System shall
cooperate in this endeavor and shall coordinate their
activities so as to ensure a smooth transition and
uninterrupted health benefit coverage.
(c) Eligibility. All persons who were enrolled in the
Article 16 program at the time of the transfer shall be
eligible to participate in the program established under this
Section without any interruption or delay in coverage or
limitation as to pre-existing medical conditions.
Eligibility to participate shall be determined by the
Teachers' Retirement System. Eligibility information shall
be communicated to the Department of Central Management
Services in a format acceptable to the Department.
A TRS dependent beneficiary who is an unmarried child age
19 or over and mentally or physically handicapped does not
become ineligible to participate by reason of (i) becoming
ineligible to be claimed as a dependent for Illinois or
federal income tax purposes or (ii) receiving earned income,
so long as those earnings are insufficient for the child to
be fully self-sufficient.
(d) Coverage. The level of health benefits provided
under this Section shall be similar to the level of benefits
provided by the program previously established under Article
16 of the Illinois Pension Code.
Group life insurance benefits are not included in the
benefits to be provided to TRS benefit recipients and TRS
dependent beneficiaries under this Act.
The program of health benefits under this Section may
include any or all of the benefit limitations, including but
not limited to a reduction in benefits based on eligibility
for federal medicare benefits, that are provided under
subsection (a) of Section 6 of this Act for other health
benefit programs under this Act.
(e) Insurance rates and premiums. The Director shall
determine the insurance rates and premiums for TRS benefit
recipients and TRS dependent beneficiaries. For Fiscal Year
1996, the premium shall be equal to the premium actually
charged in Fiscal Year 1995. In subsequent years, the
premium shall never be lower than the premium charged in
Fiscal Year 1995.
Rates and premiums may be based in part on age and
eligibility for federal medicare coverage. However, the cost
of participation for a TRS dependent beneficiary who is an
unmarried child age 19 or over and mentally or physically
handicapped shall not exceed the cost for a TRS dependent
beneficiary who is an unmarried child under age 19 and
participates in the same major medical or managed care
program.
The cost of health benefits under the program shall be
paid as follows:
(1) For a TRS benefit recipient selecting a managed
care program, up to 75% of the total insurance rate shall
be paid from the Teacher Health Insurance Security Fund.
(2) For a TRS benefit recipient selecting the major
medical coverage program, up to 50% of the total
insurance rate shall be paid from the Teacher Health
Insurance Security Fund if a managed care program is
accessible, as determined by the Teachers' Retirement
System.
(3) For a TRS benefit recipient selecting the major
medical coverage program, up to 75% of the total
insurance rate shall be paid from the Teacher Health
Insurance Security Fund if a managed care program is not
accessible, as determined by the Teachers' Retirement
System.
(4) The balance of the rate of insurance, including
the entire premium of any coverage for TRS dependent
beneficiaries that has been elected, shall be paid by
deductions authorized by the TRS benefit recipient to be
withheld from his or her monthly annuity or benefit
payment from the Teachers' Retirement System; except that
(i) if the balance of the cost of coverage exceeds the
amount of the monthly annuity or benefit payment, the
difference shall be paid directly to the Teachers'
Retirement System by the TRS benefit recipient, and (ii)
all or part of the balance of the cost of coverage may,
at the school board's option, be paid to the Teachers'
Retirement System by the school board of the school
district from which the TRS benefit recipient retired, in
accordance with Section 10-22.3b of the School Code. The
Teachers' Retirement System shall promptly deposit all
moneys withheld by or paid to it under this subdivision
(e)(4) into the Teacher Health Insurance Security Fund.
These moneys shall not be considered assets of the
Retirement System.
(f) Financing. Beginning July 1, 1995, all revenues
arising from the administration of the health benefit
programs established under Article 16 of the Illinois Pension
Code or this Section shall be deposited into the Teacher
Health Insurance Security Fund, which is hereby created as a
nonappropriated trust fund to be held outside the State
Treasury, with the State Treasurer as custodian. Any
interest earned on moneys in the Teacher Health Insurance
Security Fund shall be deposited into the Fund.
Moneys in the Teacher Health Insurance Security Fund
shall be used only to pay the costs of the health benefit
program established under this Section, including associated
administrative costs, and the costs associated with the
health benefit program established under Article 16 of the
Illinois Pension Code, as authorized in this Section.
Beginning July 1, 1995, the Department of Central Management
Services may make expenditures from the Teacher Health
Insurance Security Fund for those costs.
After other funds authorized for the payment of the costs
of the health benefit program established under Article 16 of
the Illinois Pension Code are exhausted and until January 1,
1996 (or such later date as may be agreed upon by the
Director of Central Management Services and the Secretary of
the Teachers' Retirement System), the Secretary of the
Teachers' Retirement System may make expenditures from the
Teacher Health Insurance Security Fund as necessary to pay up
to 75% of the cost of providing health coverage to eligible
benefit recipients (as defined in Sections 16-153.1 and
16-153.3 of the Illinois Pension Code) who are enrolled in
the Article 16 health benefit program and to facilitate the
transfer of administration of the health benefit program to
the Department of Central Management Services.
(g) Contract for benefits. The Director shall by
contract, self-insurance, or otherwise make available the
program of health benefits for TRS benefit recipients and
their TRS dependent beneficiaries that is provided for in
this Section. The contract or other arrangement for the
provision of these health benefits shall be on terms deemed
by the Director to be in the best interest of the State of
Illinois and the TRS benefit recipients based on, but not
limited to, such criteria as administrative cost, service
capabilities of the carrier or other contractor, and the
costs of the benefits.
(h) Continuation of program. It is the intention of the
General Assembly that the program of health benefits provided
under this Section be maintained on an ongoing, affordable
basis. The program of health benefits provided under this
Section may be amended by the State and is not intended to be
a pension or retirement benefit subject to protection under
Article XIII, Section 5 of the Illinois Constitution.
(Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly December 04, 2002.
Approved January 03, 2003.
[ Top ]