103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5797

 

Introduced 4/2/2024, by Rep. Lance Yednock

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/3  from Ch. 127, par. 523
40 ILCS 5/15-132.2

    Amends the State Employees Group Insurance Act of 1971. Adds to the definition of "community college benefit recipient" a person who is receiving retirement income from a self-managed plan account under the State Universities Article of the Illinois Pension Code and who meets other requirements. Amends the State Universities Article of the Illinois Pension Code. In the definition of "retire" and "retirement", provides that a participant in the self-managed plan retires, and the participant's retirement begins, when the participant is eligible for retirement under the Article, and the Retirement System Reciprocal Act (Article 20 of the Code) if applicable, and the participant begins receiving retirement income from the participant's self-managed plan account.


LRB103 39666 RPS 70052 b

 

 

A BILL FOR

 

HB5797LRB103 39666 RPS 70052 b

1    AN ACT concerning public employee benefits.
 
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

 

 

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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), paragraph (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

 

 

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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).
11    (b-5) (Blank).
12    (b-6) (Blank).
13    (b-7) (Blank).
14    (c) "Carrier" means (1) an insurance company, a
15corporation organized under the Limited Health Service
16Organization Act or the Voluntary Health Services Plans Act, a
17partnership, or other nongovernmental organization, which is
18authorized to do group life or group health insurance business
19in Illinois, or (2) the State of Illinois as a self-insurer.
20    (d) "Compensation" means salary or wages payable on a
21regular payroll by the State Treasurer on a warrant of the
22State Comptroller out of any State, trust or federal fund, or
23by the Governor of the State through a disbursing officer of
24the State out of a trust or out of federal funds, or by any
25Department out of State, trust, federal or other funds held by
26the State Treasurer or the Department, to any person for

 

 

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1personal services currently performed, and ordinary or
2accidental disability benefits under Articles 2, 14, 15
3(including ordinary or accidental disability benefits under
4the optional retirement program established under Section
515-158.2), paragraph (2), (3), or (5) of Section 16-106, or
6Article 18 of the Illinois Pension Code, for disability
7incurred after January 1, 1966, or benefits payable under the
8Workers' Compensation or Occupational Diseases Act or benefits
9payable under a sick pay plan established in accordance with
10Section 36 of the State Finance Act. "Compensation" also means
11salary or wages paid to an employee of any qualified local
12government, qualified rehabilitation facility, qualified
13domestic violence shelter or service, or qualified child
14advocacy center.
15    (e) "Commission" means the State Employees Group Insurance
16Advisory Commission authorized by this Act. Commencing July 1,
171984, "Commission" as used in this Act means the Commission on
18Government Forecasting and Accountability as established by
19the Legislative Commission Reorganization Act of 1984.
20    (f) "Contributory", when referred to as contributory
21coverage, shall mean optional coverages or benefits elected by
22the member toward the cost of which such member makes
23contribution, or which are funded in whole or in part through
24the acceptance of a reduction in earnings or the foregoing of
25an increase in earnings by an employee, as distinguished from
26noncontributory coverage or benefits which are paid entirely

 

 

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1by the State of Illinois without reduction of the member's
2salary.
3    (g) "Department" means any department, institution, board,
4commission, officer, court or any agency of the State
5government receiving appropriations and having power to
6certify payrolls to the Comptroller authorizing payments of
7salary and wages against such appropriations as are made by
8the General Assembly from any State fund, or against trust
9funds held by the State Treasurer and includes boards of
10trustees of the retirement systems created by Articles 2, 14,
1115, 16, and 18 of the Illinois Pension Code. "Department" also
12includes the Illinois Comprehensive Health Insurance Board,
13the Board of Examiners established under the Illinois Public
14Accounting Act, and the Illinois Finance Authority.
15    (h) "Dependent", when the term is used in the context of
16the health and life plan, means a member's spouse and any child
17(1) from birth to age 26 including an adopted child, a child
18who lives with the member from the time of the placement for
19adoption until entry of an order of adoption, a stepchild or
20adjudicated child, or a child who lives with the member if such
21member is a court appointed guardian of the child or (2) age 19
22or over who has a mental or physical disability from a cause
23originating prior to the age of 19 (age 26 if enrolled as an
24adult child dependent). For the health plan only, the term
25"dependent" also includes (1) any person enrolled prior to the
26effective date of this Section who is dependent upon the

 

 

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1member to the extent that the member may claim such person as a
2dependent for income tax deduction purposes and (2) any person
3who has received after June 30, 2000 an organ transplant and
4who is financially dependent upon the member and eligible to
5be claimed as a dependent for income tax purposes. A member
6requesting to cover any dependent must provide documentation
7as requested by the Department of Central Management Services
8and file with the Department any and all forms required by the
9Department.
10    (i) "Director" means the Director of the Illinois
11Department of Central Management Services.
12    (j) "Eligibility period" means the period of time a member
13has to elect enrollment in programs or to select benefits
14without regard to age, sex or health.
15    (k) "Employee" means and includes each officer or employee
16in the service of a department who (1) receives his
17compensation for service rendered to the department on a
18warrant issued pursuant to a payroll certified by a department
19or on a warrant or check issued and drawn by a department upon
20a trust, federal or other fund or on a warrant issued pursuant
21to a payroll certified by an elected or duly appointed officer
22of the State or who receives payment of the performance of
23personal services on a warrant issued pursuant to a payroll
24certified by a Department and drawn by the Comptroller upon
25the State Treasurer against appropriations made by the General
26Assembly from any fund or against trust funds held by the State

 

 

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

 

 

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1course of employment with the State of Illinois, or (3) is not
2otherwise covered under this Act and has retired as a
3participating member under Article 2 of the Illinois Pension
4Code but is ineligible for the retirement annuity under
5Section 2-119 of the Illinois Pension Code. However, a person
6who satisfies the criteria of the foregoing definition of
7"employee" except that such person is made ineligible to
8participate in the State Universities Retirement System by
9clause (4) of subsection (a) of Section 15-107 of the Illinois
10Pension Code is also an "employee" for the purposes of this
11Act. "Employee" also includes any person receiving or eligible
12for benefits under a sick pay plan established in accordance
13with Section 36 of the State Finance Act. "Employee" also
14includes (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
18the service 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. In the case of an annuitant or retired
25employee who first becomes an annuitant or retired employee on
26or after January 13, 2012 (the effective date of Public Act

 

 

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197-668), the individual must meet the minimum vesting
2requirements of the applicable retirement system in order to
3be eligible for group insurance benefits under that system. In
4the case of a survivor who is not entitled to occupational
5death benefits pursuant to an applicable retirement system or
6death benefits pursuant to the Illinois Workers' Compensation
7Act, and who first becomes a survivor on or after January 13,
82012 (the effective date of Public Act 97-668), the deceased
9employee, annuitant, or retired employee upon whom the annuity
10is based must have been eligible to participate in the group
11insurance system under the applicable retirement system in
12order for the survivor to be eligible for group insurance
13benefits under that system.
14    In the case of a survivor who is entitled to occupational
15death benefits pursuant to the deceased employee's applicable
16retirement system or death benefits pursuant to the Illinois
17Workers' Compensation Act, and first becomes a survivor on or
18after January 1, 2022, the survivor is eligible for group
19health insurance benefits regardless of the deceased
20employee's minimum vesting requirements under the applicable
21retirement system, with a State contribution rate of 100%,
22until an unmarried child dependent reaches the age of 18, or
23the age of 22 if the dependent child is a full-time student, or
24until the adult survivor becomes eligible for benefits under
25the federal Medicare health insurance program (Title XVIII of
26the Social Security Act, as added by Public Law 89-97). In the

 

 

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1case of a survivor currently receiving occupational death
2benefits pursuant to the deceased employee's applicable
3retirement system or has received death benefits pursuant to
4the Illinois Workers' Compensation Act, who first became a
5survivor prior to January 1, 2022, the survivor is eligible
6for group health insurance benefits regardless of the deceased
7employee's minimum vesting requirements under the applicable
8retirement system, with a State contribution rate of 100%,
9until an unmarried child dependent reaches the age of 18, or
10the age of 22 if the dependent child is a full-time student, or
11until the adult survivor becomes eligible for benefits under
12the federal Medicare health insurance program (Title XVIII of
13the Social Security Act, as added by Public Law 89-97). The
14changes made by this amendatory Act of the 102nd General
15Assembly with respect to survivors who first became survivors
16prior to January 1, 2022 shall apply upon request of the
17survivor on or after the effective date of this amendatory Act
18of the 102nd General Assembly.
19    (m) "Optional coverages or benefits" means those coverages
20or benefits available to the member on his or her voluntary
21election, and at his or her own expense.
22    (n) "Program" means the group life insurance, health
23benefits and other employee benefits designed and contracted
24for by the Director under this Act.
25    (o) "Health plan" means a health benefits program offered
26by the State of Illinois for persons eligible for the plan.

 

 

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1    (p) "Retired employee" means any person who would be an
2annuitant as that term is defined herein but for the fact that
3such person retired prior to January 1, 1966. Such term also
4includes any person formerly employed by the University of
5Illinois in the Cooperative Extension Service who would be an
6annuitant but for the fact that such person was made
7ineligible to participate in the State Universities Retirement
8System by clause (4) of subsection (a) of Section 15-107 of the
9Illinois Pension Code.
10    (q) "Survivor" means a person receiving an annuity as a
11survivor of an employee or of an annuitant. "Survivor" also
12includes: (1) the surviving dependent of a person who
13satisfies the definition of "employee" except that such person
14is made ineligible to participate in the State Universities
15Retirement System by clause (4) of subsection (a) of Section
1615-107 of the Illinois Pension Code; (2) the surviving
17dependent of any person formerly employed by the University of
18Illinois in the Cooperative Extension Service who would be an
19annuitant except for the fact that such person was 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; (3) the surviving dependent of a person
23who was an annuitant under this Act by virtue of receiving an
24alternative retirement cancellation payment under Section
2514-108.5 of the Illinois Pension Code; and (4) a person who
26would be receiving an annuity as a survivor of an annuitant

 

 

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1except that the annuitant elected on or after June 4, 2018 to
2receive an accelerated pension benefit payment under Section
314-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
4in lieu of receiving an annuity.
5    (q-2) "SERS" means the State Employees' Retirement System
6of Illinois, created under Article 14 of the Illinois Pension
7Code.
8    (q-3) "SURS" means the State Universities Retirement
9System, created under Article 15 of the Illinois Pension Code.
10    (q-4) "TRS" means the Teachers' Retirement System of the
11State of Illinois, created under Article 16 of the Illinois
12Pension Code.
13    (q-5) (Blank).
14    (q-6) (Blank).
15    (q-7) (Blank).
16    (r) "Medical services" means the services provided within
17the scope of their licenses by practitioners in all categories
18licensed under the Medical Practice Act of 1987.
19    (s) "Unit of local government" means any county,
20municipality, township, school district (including a
21combination of school districts under the Intergovernmental
22Cooperation Act), special district or other unit, designated
23as a unit of local government by law, which exercises limited
24governmental powers or powers in respect to limited
25governmental subjects, any not-for-profit association with a
26membership that primarily includes townships and township

 

 

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1officials, that has duties that include provision of research
2service, dissemination of information, and other acts for the
3purpose of improving township government, and that is funded
4wholly or partly in accordance with Section 85-15 of the
5Township Code; any not-for-profit corporation or association,
6with a membership consisting primarily of municipalities, that
7operates its own utility system, and provides research,
8training, dissemination of information, or other acts to
9promote cooperation between and among municipalities that
10provide utility services and for the advancement of the goals
11and purposes of its membership; the Southern Illinois
12Collegiate Common Market, which is a consortium of higher
13education institutions in Southern Illinois; the Illinois
14Association of Park Districts; and any hospital provider that
15is owned by a county that has 100 or fewer hospital beds and
16has not already joined the program. "Qualified local
17government" means a unit of local government approved by the
18Director and participating in a program created under
19subsection (i) of Section 10 of this Act.
20    (t) "Qualified rehabilitation facility" means any
21not-for-profit organization that is accredited by the
22Commission on Accreditation of Rehabilitation Facilities or
23certified by the Department of Human Services (as successor to
24the Department of Mental Health and Developmental
25Disabilities) to provide services to persons with disabilities
26and which receives funds from the State of Illinois for

 

 

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1providing those services, approved by the Director and
2participating in a program created under subsection (j) of
3Section 10 of this Act.
4    (u) "Qualified domestic violence shelter or service" means
5any Illinois domestic violence shelter or service and its
6administrative offices funded by the Department of Human
7Services (as successor to the Illinois Department of Public
8Aid), approved by the Director and participating in a program
9created under subsection (k) of Section 10.
10    (v) "TRS benefit recipient" means a person who:
11        (1) is not a "member" as defined in this Section; and
12        (2) is receiving a monthly benefit or retirement
13    annuity under Article 16 of the Illinois Pension Code or
14    would be receiving such monthly benefit or retirement
15    annuity except that the benefit recipient elected on or
16    after June 4, 2018 to receive an accelerated pension
17    benefit payment under Section 16-190.5 of the Illinois
18    Pension Code in lieu of receiving an annuity; and
19        (3) either (i) has at least 8 years of creditable
20    service under Article 16 of the Illinois Pension Code, or
21    (ii) was enrolled in the health insurance program offered
22    under that Article on January 1, 1996, or (iii) is the
23    survivor of a benefit recipient who had at least 8 years of
24    creditable service under Article 16 of the Illinois
25    Pension Code or was enrolled in the health insurance
26    program offered under that Article on June 21, 1995 (the

 

 

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1    effective date of Public Act 89-25), or (iv) is a
2    recipient or survivor of a recipient of a disability
3    benefit under Article 16 of the Illinois Pension Code.
4    (w) "TRS dependent beneficiary" means a person who:
5        (1) is not a "member" or "dependent" as defined in
6    this Section; and
7        (2) is a TRS benefit recipient's: (A) spouse, (B)
8    dependent parent who is receiving at least half of his or
9    her support from the TRS benefit recipient, or (C)
10    natural, step, adjudicated, or adopted child who is (i)
11    under age 26, (ii) was, on January 1, 1996, participating
12    as a dependent beneficiary in the health insurance program
13    offered under Article 16 of the Illinois Pension Code, or
14    (iii) age 19 or over who has a mental or physical
15    disability from a cause originating prior to the age of 19
16    (age 26 if enrolled as an adult child).
17    "TRS dependent beneficiary" does not include, as indicated
18under paragraph (2) of this subsection (w), a dependent of the
19survivor of a TRS benefit recipient who first becomes a
20dependent of a survivor of a TRS benefit recipient on or after
21January 13, 2012 (the effective date of Public Act 97-668)
22unless that dependent would have been eligible for coverage as
23a dependent of the deceased TRS benefit recipient upon whom
24the survivor benefit is based.
25    (x) "Military leave" refers to individuals in basic
26training for reserves, special/advanced training, annual

 

 

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1training, emergency call up, activation by the President of
2the United States, or any other training or duty in service to
3the United States Armed Forces.
4    (y) (Blank).
5    (z) "Community college benefit recipient" means a person
6who:
7        (1) is not a "member" as defined in this Section; and
8        (2) is receiving retirement income from a self-managed
9    plan account under Section 15-158.2 of the Illinois
10    Pension Code or is receiving a monthly survivor's annuity
11    or retirement annuity under Article 15 of the Illinois
12    Pension Code or would be receiving such monthly survivor's
13    annuity or retirement annuity except that the benefit
14    recipient elected on or after June 4, 2018 to receive an
15    accelerated pension benefit payment under Section 15-185.5
16    of the Illinois Pension Code in lieu of receiving an
17    annuity; and
18        (3) either (i) was a full-time employee of a community
19    college district or an association of community college
20    boards created under the Public Community College Act
21    (other than an employee whose last employer under Article
22    15 of the Illinois Pension Code was a community college
23    district subject to Article VII of the Public Community
24    College Act) and was eligible to participate in a group
25    health benefit plan as an employee during the time of
26    employment with a community college district (other than a

 

 

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1    community college district subject to Article VII of the
2    Public Community College Act) or an association of
3    community college boards, or (ii) is the survivor of a
4    person described in item (i).
5    (aa) "Community college dependent beneficiary" means a
6person who:
7        (1) is not a "member" or "dependent" as defined in
8    this Section; and
9        (2) is a community college benefit recipient's: (A)
10    spouse, (B) dependent parent who is receiving at least
11    half of his or her support from the community college
12    benefit recipient, or (C) natural, step, adjudicated, or
13    adopted child who is (i) under age 26, or (ii) age 19 or
14    over and has a mental or physical disability from a cause
15    originating prior to the age of 19 (age 26 if enrolled as
16    an adult child).
17    "Community college dependent beneficiary" does not
18include, as indicated under paragraph (2) of this subsection
19(aa), a dependent of the survivor of a community college
20benefit recipient who first becomes a dependent of a survivor
21of a community college benefit recipient on or after January
2213, 2012 (the effective date of Public Act 97-668) unless that
23dependent would have been eligible for coverage as a dependent
24of the deceased community college benefit recipient upon whom
25the survivor annuity is based.
26    (bb) "Qualified child advocacy center" means any Illinois

 

 

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1child advocacy center and its administrative offices funded by
2the Department of Children and Family Services, as defined by
3the Children's Advocacy Center Act (55 ILCS 80/), approved by
4the Director and participating in a program created under
5subsection (n) of Section 10.
6    (cc) "Placement for adoption" means the assumption and
7retention by a member of a legal obligation for total or
8partial support of a child in anticipation of adoption of the
9child. The child's placement with the member terminates upon
10the termination of such legal obligation.
11(Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21;
12102-714, eff. 4-29-22; 102-813, eff 5-13-22.)
 
13    Section 10. The Illinois Pension Code is amended by
14changing Section 15-132.2 as follows:
 
15    (40 ILCS 5/15-132.2)
16    Sec. 15-132.2. Retire and retirement. A participant
17"retires", and his or her "retirement" begins, when his or her
18annuity payment period begins. A participant in the
19self-managed plan "retires", and the participant's
20"retirement" begins, when the participant is eligible for
21retirement under this Article, and Article 20 if applicable,
22and the participant begins receiving retirement income from
23the participant's self-managed plan account.
24(Source: P.A. 91-887, eff. 7-6-00.)