102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0358

 

Introduced 1/29/2021, by Rep. Mark L. Walker

 

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

    Amends the State Employees Group Insurance Act of 1971. Modifies the term "annuitant" to not include any member of the General Assembly, or any person serving as Governor, Lieutenant Governor, Secretary of State, Treasurer, Comptroller, or Attorney General, or the surviving spouse of such a person, who is sworn into office for the first time on or after the effective date of this amendatory Act, and retires as a participating member under the General Assembly Retirement System, for the purpose of administering health benefits under the Act. Effective immediately.


LRB102 09960 RJF 15278 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0358LRB102 09960 RJF 15278 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
11of implementing specific programs providing benefits under
12this Act.
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 or who meets the criteria

 

 

HB0358- 2 -LRB102 09960 RJF 15278 b

1for retirement, but in lieu of receiving an annuity under that
2Article has elected to receive an accelerated pension benefit
3payment under Section 14-147.5 of that Article), 15 (including
4an employee who has retired under the optional retirement
5program established under Section 15-158.2 or who meets the
6criteria for retirement but in lieu of receiving an annuity
7under that Article has elected to receive an accelerated
8pension benefit payment under Section 15-185.5 of the
9Article), paragraphs (2), (3), or (5) of Section 16-106
10(including an employee who meets the criteria for retirement,
11but in lieu of receiving an annuity under that Article has
12elected to receive an accelerated pension benefit payment
13under Section 16-190.5 of the Illinois Pension Code), or
14Article 18 of the Illinois Pension Code; (2) any person who was
15receiving group insurance coverage under this Act as of March
1631, 1978 by reason of his status as an annuitant, even though
17the annuity in relation to which such coverage was provided is
18a proportional annuity based on less than the minimum period
19of service required for a retirement annuity in the system
20involved; (3) any person not otherwise covered by this Act who
21has retired as a participating member under Article 2 of the
22Illinois Pension Code but is ineligible for the retirement
23annuity under Section 2-119 of the Illinois Pension Code; (4)
24the spouse of any person who is receiving a retirement annuity
25under Article 18 of the Illinois Pension Code and who is
26covered under a group health insurance program sponsored by a

 

 

HB0358- 3 -LRB102 09960 RJF 15278 b

1governmental employer other than the State of Illinois and who
2has irrevocably elected to waive his or her coverage under
3this Act and to have his or her spouse considered as the
4"annuitant" under this Act and not as a "dependent"; or (5) an
5employee who retires, or has retired, from a qualified
6position, as determined according to rules promulgated by the
7Director, under a qualified local government, a qualified
8rehabilitation facility, a qualified domestic violence shelter
9or service, or a qualified child advocacy center. (For
10definition of "retired employee", see (p) post). "Annuitant"
11does not include any member, as defined in Article 2 of the
12Illinois Pension Code, or the surviving spouse of such a
13person, who is sworn into office for the first time on or after
14the effective date of this amendatory Act of the 102nd General
15Assembly, and retires as a participating member under Article
162 of the Illinois Pension Code. For the purposes of this
17subsection (b), "member" as used in this paragraph does not
18include a Clerk or Assistant Clerk of the House of
19Representatives or a Secretary or Assistant Secretary of the
20Senate who may become a member under Article 2 of the Illinois
21Pension Code.
22    (b-5) (Blank).
23    (b-6) (Blank).
24    (b-7) (Blank).
25    (c) "Carrier" means (1) an insurance company, a
26corporation organized under the Limited Health Service

 

 

HB0358- 4 -LRB102 09960 RJF 15278 b

1Organization Act or the Voluntary Health Services Plans Plan
2Act, a partnership, or other nongovernmental organization,
3which is authorized to do group life or group health insurance
4business in Illinois, or (2) the State of Illinois as a
5self-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.

 

 

HB0358- 5 -LRB102 09960 RJF 15278 b

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
13by the State of Illinois without reduction of the member's
14salary.
15    (g) "Department" means any department, institution, board,
16commission, officer, court or any agency of the State
17government receiving appropriations and having power to
18certify payrolls to the Comptroller authorizing payments of
19salary and wages against such appropriations as are made by
20the General Assembly from any State fund, or against trust
21funds held by the State Treasurer and includes boards of
22trustees of the retirement systems created by Articles 2, 14,
2315, 16, and 18 of the Illinois Pension Code. "Department" also
24includes the Illinois Comprehensive Health Insurance Board,
25the Board of Examiners established under the Illinois Public
26Accounting Act, and the Illinois Finance Authority.

 

 

HB0358- 6 -LRB102 09960 RJF 15278 b

1    (h) "Dependent", when the term is used in the context of
2the health and life plan, means a member's spouse and any child
3(1) from birth to age 26 including an adopted child, a child
4who lives with the member from the time of the placement for
5adoption until entry of an order of adoption, a stepchild or
6adjudicated child, or a child who lives with the member if such
7member is a court appointed guardian of the child or (2) age 19
8or over who has a mental or physical disability from a cause
9originating prior to the age of 19 (age 26 if enrolled as an
10adult child dependent). For the health plan only, the term
11"dependent" also includes (1) any person enrolled prior to the
12effective date of this Section who is dependent upon the
13member to the extent that the member may claim such person as a
14dependent for income tax deduction purposes and (2) any person
15who has received after June 30, 2000 an organ transplant and
16who is financially dependent upon the member and eligible to
17be claimed as a dependent for income tax purposes. A member
18requesting to cover any dependent must provide documentation
19as requested by the Department of Central Management Services
20and file with the Department any and all forms required by the
21Department.
22    (i) "Director" means the Director of the Illinois
23Department of Central Management Services.
24    (j) "Eligibility period" means the period of time a member
25has to elect enrollment in programs or to select benefits
26without regard to age, sex or health.

 

 

HB0358- 7 -LRB102 09960 RJF 15278 b

1    (k) "Employee" means and includes each officer or employee
2in the service of a department who (1) receives his
3compensation for service rendered to the department on a
4warrant issued pursuant to a payroll certified by a department
5or on a warrant or check issued and drawn by a department upon
6a trust, federal or other fund or on a warrant issued pursuant
7to a payroll certified by an elected or duly appointed officer
8of the State or who receives payment of the performance of
9personal services on a warrant issued pursuant to a payroll
10certified by a Department and drawn by the Comptroller upon
11the State Treasurer against appropriations made by the General
12Assembly from any fund or against trust funds held by the State
13Treasurer, and (2) is employed full-time or part-time in a
14position normally requiring actual performance of duty during
15not less than 1/2 of a normal work period, as established by
16the Director in cooperation with each department, except that
17persons elected by popular vote will be considered employees
18during the entire term for which they are elected regardless
19of hours devoted to the service of the State, and (3) except
20that "employee" does not include any person who is not
21eligible by reason of such person's employment to participate
22in one of the State retirement systems under Articles 2, 14, 15
23(either the regular Article 15 system or the optional
24retirement program established under Section 15-158.2), or 18,
25or under paragraph (2), (3), or (5) of Section 16-106, of the
26Illinois Pension Code, but such term does include persons who

 

 

HB0358- 8 -LRB102 09960 RJF 15278 b

1are employed during the 6 month qualifying period under
2Article 14 of the Illinois Pension Code. Such term also
3includes any person who (1) after January 1, 1966, is
4receiving ordinary or accidental disability benefits under
5Articles 2, 14, 15 (including ordinary or accidental
6disability benefits under the optional retirement program
7established under Section 15-158.2), paragraphs (2), (3), or
8(5) of Section 16-106, or Article 18 of the Illinois Pension
9Code, for disability incurred after January 1, 1966, (2)
10receives total permanent or total temporary disability under
11the Workers' Compensation Act or Occupational Disease Act as a
12result of injuries sustained or illness contracted in the
13course of employment with the State of Illinois, or (3) is not
14otherwise covered under this Act and has retired as a
15participating member under Article 2 of the Illinois Pension
16Code but is ineligible for the retirement annuity under
17Section 2-119 of the Illinois Pension Code. However, a person
18who satisfies the criteria of the foregoing definition of
19"employee" except that such person is made ineligible to
20participate in the State Universities Retirement System by
21clause (4) of subsection (a) of Section 15-107 of the Illinois
22Pension Code is also an "employee" for the purposes of this
23Act. "Employee" also includes any person receiving or eligible
24for benefits under a sick pay plan established in accordance
25with Section 36 of the State Finance Act. "Employee" also
26includes (i) each officer or employee in the service of a

 

 

HB0358- 9 -LRB102 09960 RJF 15278 b

1qualified local government, including persons appointed as
2trustees of sanitary districts regardless of hours devoted to
3the service of the sanitary district, (ii) each employee in
4the service of a qualified rehabilitation facility, (iii) each
5full-time employee in the service of a qualified domestic
6violence shelter or service, and (iv) each full-time employee
7in the service of a qualified child advocacy center, as
8determined according to rules promulgated by the Director.
9    (l) "Member" means an employee, annuitant, retired
10employee or survivor. In the case of an annuitant or retired
11employee who first becomes an annuitant or retired employee on
12or after January 13, 2012 (the effective date of Public Act
1397-668) this amendatory Act of the 97th General Assembly, the
14individual must meet the minimum vesting requirements of the
15applicable retirement system in order to be eligible for group
16insurance benefits under that system. In the case of a
17survivor who first becomes a survivor on or after January 13,
182012 (the effective date of Public Act 97-668) this amendatory
19Act of the 97th General Assembly, the deceased employee,
20annuitant, or retired employee upon whom the annuity is based
21must have been eligible to participate in the group insurance
22system under the applicable retirement system in order for the
23survivor to be eligible for group insurance benefits under
24that system.
25    (m) "Optional coverages or benefits" means those coverages
26or benefits available to the member on his or her voluntary

 

 

HB0358- 10 -LRB102 09960 RJF 15278 b

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
13ineligible to participate in the State Universities Retirement
14System by clause (4) of subsection (a) of Section 15-107 of the
15Illinois Pension 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
19satisfies the definition of "employee" except that such person
20is made ineligible to participate in the State Universities
21Retirement System by clause (4) of subsection (a) of Section
2215-107 of the Illinois Pension Code; (2) the surviving
23dependent of any person formerly employed by the University of
24Illinois in the Cooperative Extension Service who would be an
25annuitant except for the fact that such person was made
26ineligible to participate in the State Universities Retirement

 

 

HB0358- 11 -LRB102 09960 RJF 15278 b

1System by clause (4) of subsection (a) of Section 15-107 of the
2Illinois Pension Code; (3) the surviving dependent of a person
3who was an annuitant under this Act by virtue of receiving an
4alternative retirement cancellation payment under Section
514-108.5 of the Illinois Pension Code; and (4) a person who
6would be receiving an annuity as a survivor of an annuitant
7except that the annuitant elected on or after June 4, 2018 to
8receive an accelerated pension benefit payment under Section
914-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
10in lieu of receiving an annuity.
11    (q-2) "SERS" means the State Employees' Retirement System
12of Illinois, created under Article 14 of the Illinois Pension
13Code.
14    (q-3) "SURS" means the State Universities Retirement
15System, created under Article 15 of the Illinois Pension Code.
16    (q-4) "TRS" means the Teachers' Retirement System of the
17State of Illinois, created under Article 16 of the Illinois
18Pension Code.
19    (q-5) (Blank).
20    (q-6) (Blank).
21    (q-7) (Blank).
22    (r) "Medical services" means the services provided within
23the scope of their licenses by practitioners in all categories
24licensed under the Medical Practice Act of 1987.
25    (s) "Unit of local government" means any county,
26municipality, township, school district (including a

 

 

HB0358- 12 -LRB102 09960 RJF 15278 b

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

 

 

HB0358- 13 -LRB102 09960 RJF 15278 b

1not-for-profit organization that is accredited by the
2Commission on Accreditation of Rehabilitation Facilities or
3certified by the Department of Human Services (as successor to
4the Department of Mental Health and Developmental
5Disabilities) to provide services to persons with disabilities
6and which receives funds from the State of Illinois for
7providing those services, approved by the Director and
8participating in a program created under subsection (j) of
9Section 10 of this Act.
10    (u) "Qualified domestic violence shelter or service" means
11any Illinois domestic violence shelter or service and its
12administrative offices funded by the Department of Human
13Services (as successor to the Illinois Department of Public
14Aid), approved by the Director and participating in a program
15created under subsection (k) of Section 10.
16    (v) "TRS benefit recipient" means a person who:
17        (1) is not a "member" as defined in this Section; and
18        (2) is receiving a monthly benefit or retirement
19    annuity under Article 16 of the Illinois Pension Code or
20    would be receiving such monthly benefit or retirement
21    annuity except that the benefit recipient elected on or
22    after June 4, 2018 to receive an accelerated pension
23    benefit payment under Section 16-190.5 of the Illinois
24    Pension Code in lieu of receiving an annuity; and
25        (3) either (i) has at least 8 years of creditable
26    service under Article 16 of the Illinois Pension Code, or

 

 

HB0358- 14 -LRB102 09960 RJF 15278 b

1    (ii) was enrolled in the health insurance program offered
2    under that Article on January 1, 1996, or (iii) is the
3    survivor of a benefit recipient who had at least 8 years of
4    creditable service under Article 16 of the Illinois
5    Pension Code or was enrolled in the health insurance
6    program offered under that Article on June 21, 1995 (the
7    effective date of Public Act 89-25) this amendatory Act of
8    1995, or (iv) is a recipient or survivor of a recipient of
9    a disability benefit under Article 16 of the Illinois
10    Pension Code.
11    (w) "TRS dependent beneficiary" means a person who:
12        (1) is not a "member" or "dependent" as defined in
13    this Section; and
14        (2) is a TRS benefit recipient's: (A) spouse, (B)
15    dependent parent who is receiving at least half of his or
16    her support from the TRS benefit recipient, or (C)
17    natural, step, adjudicated, or adopted child who is (i)
18    under age 26, (ii) was, on January 1, 1996, participating
19    as a dependent beneficiary in the health insurance program
20    offered under Article 16 of the Illinois Pension Code, or
21    (iii) age 19 or over who has a mental or physical
22    disability from a cause originating prior to the age of 19
23    (age 26 if enrolled as an adult child).
24    "TRS dependent beneficiary" does not include, as indicated
25under paragraph (2) of this subsection (w), a dependent of the
26survivor of a TRS benefit recipient who first becomes a

 

 

HB0358- 15 -LRB102 09960 RJF 15278 b

1dependent of a survivor of a TRS benefit recipient on or after
2January 13, 2012 (the effective date of Public Act 97-668)
3this amendatory Act of the 97th General Assembly unless that
4dependent would have been eligible for coverage as a dependent
5of the deceased TRS benefit recipient upon whom the survivor
6benefit is based.
7    (x) "Military leave" refers to individuals in basic
8training for reserves, special/advanced training, annual
9training, emergency call up, activation by the President of
10the United States, or any other training or duty in service to
11the United States Armed Forces.
12    (y) (Blank).
13    (z) "Community college benefit recipient" means a person
14who:
15        (1) is not a "member" as defined in this Section; and
16        (2) is receiving a monthly survivor's annuity or
17    retirement annuity under Article 15 of the Illinois
18    Pension Code or would be receiving such monthly survivor's
19    annuity or retirement annuity except that the benefit
20    recipient elected on or after June 4, 2018 to receive an
21    accelerated pension benefit payment under Section 15-185.5
22    of the Illinois Pension Code in lieu of receiving an
23    annuity; and
24        (3) either (i) was a full-time employee of a community
25    college district or an association of community college
26    boards created under the Public Community College Act

 

 

HB0358- 16 -LRB102 09960 RJF 15278 b

1    (other than an employee whose last employer under Article
2    15 of the Illinois Pension Code was a community college
3    district subject to Article VII of the Public Community
4    College Act) and was eligible to participate in a group
5    health benefit plan as an employee during the time of
6    employment with a community college district (other than a
7    community college district subject to Article VII of the
8    Public Community College Act) or an association of
9    community college boards, or (ii) is the survivor of a
10    person described in item (i).
11    (aa) "Community college dependent beneficiary" means a
12person who:
13        (1) is not a "member" or "dependent" as defined in
14    this Section; and
15        (2) is a community college benefit recipient's: (A)
16    spouse, (B) dependent parent who is receiving at least
17    half of his or her support from the community college
18    benefit recipient, or (C) natural, step, adjudicated, or
19    adopted child who is (i) under age 26, or (ii) age 19 or
20    over and has a mental or physical disability from a cause
21    originating prior to the age of 19 (age 26 if enrolled as
22    an adult child).
23    "Community college dependent beneficiary" does not
24include, as indicated under paragraph (2) of this subsection
25(aa), a dependent of the survivor of a community college
26benefit recipient who first becomes a dependent of a survivor

 

 

HB0358- 17 -LRB102 09960 RJF 15278 b

1of a community college benefit recipient on or after January
213, 2012 (the effective date of Public Act 97-668) this
3amendatory Act of the 97th General Assembly unless that
4dependent would have been eligible for coverage as a dependent
5of the deceased community college benefit recipient upon whom
6the survivor annuity is based.
7    (bb) "Qualified child advocacy center" means any Illinois
8child advocacy center and its administrative offices funded by
9the Department of Children and Family Services, as defined by
10the Children's Advocacy Center Act (55 ILCS 80/), approved by
11the Director and participating in a program created under
12subsection (n) of Section 10.
13    (cc) "Placement for adoption" means the assumption and
14retention by a member of a legal obligation for total or
15partial support of a child in anticipation of adoption of the
16child. The child's placement with the member terminates upon
17the termination of such legal obligation.
18(Source: P.A. 100-355, eff. 1-1-18; 100-587, eff. 6-4-18;
19101-242, eff. 8-9-19; revised 9-19-19.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.