093_SB1701ham001

 










                                     LRB093 02819 LRD 16506 a

 1                    AMENDMENT TO SENATE BILL 1701

 2        AMENDMENT NO.     .  Amend Senate Bill 1701 by  replacing
 3    the title with the following:
 4        "AN ACT in relation to public employee benefits."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Illinois  Pension  Code  is  amended  by
 8    changing  Sections 5-167.5, 6-142.2, 8-164.1, and 11-160.1 as
 9    follows:

10        (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
11        Sec. 5-167.5.  Payments to city Group health benefit.
12        (a)  For the purposes of this Section,  "city  annuitant"
13    means  a  person  receiving  an  age  and  service annuity, a
14    widow's annuity, a child's  annuity,  or  a  minimum  annuity
15    under  this Article as a direct result of previous employment
16    by the City of Chicago ("the city").
17        (b)  The board shall pay to the city, on  behalf  of  the
18    board's  city annuitants who participate in any of the city's
19    health care plans, the following amounts:
20             (1)  From July 1, 2003 through June  30,  2008,  $85
21        per  month for each such annuitant who is not eligible to
 
                            -2-      LRB093 02819 LRD 16506 a
 1        receive Medicare benefits and $55 per month for each such
 2        annuitant who is eligible to receive Medicare benefits.
 3             (2)  From July 1, 2008 through June  30,  2013,  $95
 4        per  month for each such annuitant who is not eligible to
 5        receive Medicare benefits and $65 per month for each such
 6        annuitant who is eligible to receive Medicare benefits.
 7        The payments described in this subsection shall  be  paid
 8    from  the  tax  levy  authorized  under  Section  5-168; such
 9    amounts shall be credited to the reserve for  group  hospital
10    care  and  group  medical and surgical plan benefits, and all
11    payments to the city required under this subsection shall  be
12    charged against it.
13        (c)  The  city  health  care  plans  referred  to in this
14    Section and the board's  payments  to  the  city  under  this
15    Section  are  not and shall not be construed to be pension or
16    retirement benefits for the purposes of Section 5 of  Article
17    XIII of the Illinois Constitution of 1970.
18        (a)  For  the  purposes  of this Section: (1) "annuitant"
19    means a person receiving an age and service annuity, a  prior
20    service  annuity,  a widow's annuity, a widow's prior service
21    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
22    by  reason  of  previous  employment  by  the City of Chicago
23    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
24    Plan  annuitant" means an annuitant described in item (1) who
25    is eligible for Medicare benefits; and (3) "non-Medicare Plan
26    annuitant" means an annuitant described in item  (1)  who  is
27    not eligible for Medicare benefits.
28        (b)  The  city  shall  offer  group  health  benefits  to
29    annuitants  and  their  eligible  dependents through June 30,
30    2003.  The basic city health care plan available as  of  June
31    30, 1988 (hereinafter called the basic city plan) shall cease
32    to  be  a  plan  offered  by the city, except as specified in
33    subparagraphs (4) and (5) below, and shall be closed  to  new
34    enrollment  or transfer of coverage for any non-Medicare Plan
 
                            -3-      LRB093 02819 LRD 16506 a
 1    annuitant  as  of  June  27,  1997.   The  city  shall  offer
 2    non-Medicare Plan annuitants and  their  eligible  dependents
 3    the  option  of enrolling in its Annuitant Preferred Provider
 4    Plan and may offer additional plans for any  annuitant.   The
 5    city  may  amend,  modify, or terminate any of its additional
 6    plans at its sole discretion.  If the city offers  more  than
 7    one  annuitant  plan,  the  city  shall  allow  annuitants to
 8    convert coverage from one city  annuitant  plan  to  another,
 9    except  the  basic  city plan, during times designated by the
10    city, which periods of time shall occur  at  least  annually.
11    For  the  period  dating  from June 27, 1997 through June 30,
12    2003, monthly premium rates may be increased  for  annuitants
13    during the time of their participation in non-Medicare plans,
14    except  as  provided in subparagraphs (1) through (4) of this
15    subsection.
16             (1)  For non-Medicare Plan  annuitants  who  retired
17        prior  to  January  1,  1988,  the  annuitant's  share of
18        monthly premium for non-Medicare Plan coverage only shall
19        not exceed the highest premium rate chargeable under  any
20        city  non-Medicare Plan annuitant coverage as of December
21        1, 1996.
22             (2)  For non-Medicare Plan annuitants who retire  on
23        or  after  January  1,  1988,  the  annuitant's  share of
24        monthly premium for non-Medicare Plan coverage only shall
25        be the rate in effect on December 1, 1996,  with  monthly
26        premium  increases to take effect no sooner than April 1,
27        1998 at the lower of  (i)  the  premium  rate  determined
28        pursuant to subsection (g) or (ii) 10% of the immediately
29        previous month's rate for similar coverage.
30             (3)  In   no   event  shall  any  non-Medicare  Plan
31        annuitant's share of  monthly  premium  for  non-Medicare
32        Plan  coverage  exceed  10%  of  the  annuitant's monthly
33        annuity.
34             (4)  Non-Medicare Plan annuitants who  are  enrolled
 
                            -4-      LRB093 02819 LRD 16506 a
 1        in  the  basic city plan as of July 1, 1998 may remain in
 2        the basic city plan, if they so choose, on the  condition
 3        that they are not entitled to the caps on rates set forth
 4        in  subparagraphs (1) through (3), and their premium rate
 5        shall  be  the  rate  determined   in   accordance   with
 6        subsections (c) and (g).
 7             (5)  Medicare  Plan  annuitants  who  are  currently
 8        enrolled  in  the  basic  city plan for Medicare eligible
 9        annuitants may remain in that plan, if  they  so  choose,
10        through  June  30, 2003.  Annuitants shall not be allowed
11        to enroll in or transfer into the  basic  city  plan  for
12        Medicare  eligible  annuitants  on or after July 1, 1999.
13        The  city  shall   continue   to   offer   annuitants   a
14        supplemental   Medicare   Plan   for   Medicare  eligible
15        annuitants through June 30, 2003, and the city may  offer
16        additional  plans  to Medicare eligible annuitants in its
17        sole discretion.  All  Medicare  Plan  annuitant  monthly
18        rates  shall be determined in accordance with subsections
19        (c) and (g).
20        (c)  The city shall pay 50% of the  aggregated  costs  of
21    the   claims   or   premiums,  whichever  is  applicable,  as
22    determined in accordance with subsection (g),  of  annuitants
23    and  their  dependents under all health care plans offered by
24    the city.  The city may reduce its obligation by  application
25    of  price  reductions  obtained  as  a  result  of  financial
26    arrangements with providers or plan administrators.
27        (d)  From  January 1, 1993 until June 30, 2003, the board
28    shall pay to the city  on  behalf  of  each  of  the  board's
29    annuitants  who  chooses  to participate in any of the city's
30    plans the following amounts: up to a maximum of $75 per month
31    for each such annuitant  who  is  not  qualified  to  receive
32    medicare  benefits,  and up to a maximum of $45 per month for
33    each such annuitant who  is  qualified  to  receive  medicare
34    benefits.
 
                            -5-      LRB093 02819 LRD 16506 a
 1        The  payments  described in this subsection shall be paid
 2    from the  tax  levy  authorized  under  Section  5-168;  such
 3    amounts  shall  be credited to the reserve for group hospital
 4    care and group medical and surgical plan  benefits,  and  all
 5    payments  to the city required under this subsection shall be
 6    charged against it.
 7        (e)  The city's obligations under subsections (b) and (c)
 8    shall terminate on June  30,  2003,  except  with  regard  to
 9    covered expenses incurred but not paid as of that date.  This
10    subsection  shall  not  affect  other obligations that may be
11    imposed by law.
12        (f)  The group coverage plans described in  this  Section
13    are  not  and  shall  not  be  construed  to  be  pension  or
14    retirement benefits for purposes of Section 5 of Article XIII
15    of the Illinois Constitution of 1970.
16        (g)  For  each  annuitant  plan  offered by the city, the
17    aggregate cost of claims, as reflected in the  claim  records
18    of  the  plan  administrator, shall be estimated by the city,
19    based upon a written determination by a qualified independent
20    actuary to be appointed and paid by the city and  the  board.
21    If  the estimated annual cost for each annuitant plan offered
22    by  the  city  is  more  than  the  estimated  amount  to  be
23    contributed by the city for that plan pursuant to subsections
24    (b) and (c) during that year plus the estimated amounts to be
25    paid pursuant to subsection (d)  and  by  the  other  pension
26    boards  on  behalf  of  other  participating  annuitants, the
27    difference shall be paid by all annuitants  participating  in
28    the  plan,  except  as provided in subsection (b).  The city,
29    based upon the  determination  of  the  independent  actuary,
30    shall set the monthly amounts to be paid by the participating
31    annuitants.    The board may deduct the amounts to be paid by
32    its annuitants from  the  participating  annuitants'  monthly
33    annuities.
34        If it is determined from the city's annual audit, or from
 
                            -6-      LRB093 02819 LRD 16506 a
 1    audited  experience  data,  that the total amount paid by all
 2    participating annuitants was more or less than the difference
 3    between (1) the cost  of  providing  the  group  health  care
 4    plans,  and  (2) the sum of the amount to be paid by the city
 5    as determined under subsection (c) and the  amounts  paid  by
 6    all  the pension boards, then the independent actuary and the
 7    city shall account for the excess or shortfall  in  the  next
 8    year's   payments   by  annuitants,  except  as  provided  in
 9    subsection (b).
10        (h)  An annuitant may elect to terminate  coverage  in  a
11    plan  at the end of any month, which election shall terminate
12    the annuitant's obligation to contribute  toward  payment  of
13    the excess described in subsection (g).
14        (i)  The  city  shall  advise  the  board of all proposed
15    premium increases for health care at least 75 days  prior  to
16    the  effective  date of the change, and any increase shall be
17    prospective only.
18    (Source: P.A. 92-599, eff. 6-28-02.)

19        (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
20        Sec. 6-164.2.  Payments to city Group health benefit.
21        (a)  For the purposes of this Section,  "city  annuitant"
22    means  a  person  receiving  an  age  and  service annuity, a
23    widow's annuity, a child's  annuity,  or  a  minimum  annuity
24    under  this Article as a direct result of previous employment
25    by the City of Chicago ("the city").
26        (b)  The board shall pay to the city, on  behalf  of  the
27    board's  city annuitants who participate in any of the city's
28    health care plans, the following amounts:
29             (1)  From July 1, 2003 through June  30,  2008,  $85
30        per  month for each such annuitant who is not eligible to
31        receive Medicare benefits and $55 per month for each such
32        annuitant who is eligible to receive Medicare benefits.
33             (2)  From July 1, 2008 through June  30,  2013,  $95
 
                            -7-      LRB093 02819 LRD 16506 a
 1        per  month for each such annuitant who is not eligible to
 2        receive Medicare benefits and $65 per month for each such
 3        annuitant who is eligible to receive Medicare benefits.
 4        The payments described in this subsection shall  be  paid
 5    from  the  tax  levy  authorized  under  Section  6-165; such
 6    amounts shall be credited to the reserve for  group  hospital
 7    care  and  group  medical and surgical plan benefits, and all
 8    payments to the city required under this subsection shall  be
 9    charged against it.
10        (c)  The  city  health  care  plans  referred  to in this
11    Section and the board's  payments  to  the  city  under  this
12    Section  are  not and shall not be construed to be pension or
13    retirement benefits for the purposes of Section 5 of  Article
14    XIII of the Illinois Constitution of 1970.
15        (a)  For  the  purposes  of this Section: (1) "annuitant"
16    means a person receiving an age and service annuity, a  prior
17    service  annuity,  a widow's annuity, a widow's prior service
18    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
19    by  reason  of  previous  employment  by  the City of Chicago
20    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
21    Plan  annuitant" means an annuitant described in item (1) who
22    is eligible for Medicare benefits; and (3) "non-Medicare Plan
23    annuitant" means an annuitant described in item  (1)  who  is
24    not eligible for Medicare benefits.
25        (b)  The  city  shall  offer  group  health  benefits  to
26    annuitants  and  their  eligible  dependents through June 30,
27    2003. The basic city health care plan available  as  of  June
28    30, 1988 (hereinafter called the basic city plan) shall cease
29    to  be  a  plan  offered  by the city, except as specified in
30    subparagraphs (4) and (5) below, and shall be closed  to  new
31    enrollment  or transfer of coverage for any non-Medicare Plan
32    annuitant  as  of  June  27,  1997.   The  city  shall  offer
33    non-Medicare Plan annuitants and  their  eligible  dependents
34    the  option  of enrolling in its Annuitant Preferred Provider
 
                            -8-      LRB093 02819 LRD 16506 a
 1    Plan and may offer additional plans for any  annuitant.   The
 2    city  may  amend,  modify, or terminate any of its additional
 3    plans at its sole discretion.  If the city offers  more  than
 4    one  annuitant  plan,  the  city  shall  allow  annuitants to
 5    convert coverage from one city  annuitant  plan  to  another,
 6    except  the  basic  city plan, during times designated by the
 7    city, which periods of time shall occur  at  least  annually.
 8    For  the  period  dating  from June 27, 1997 through June 30,
 9    2003, monthly premium rates may be increased  for  annuitants
10    during the time of their participation in non-Medicare plans,
11    except  as  provided in subparagraphs (1) through (4) of this
12    subsection.
13             (1)  For non-Medicare Plan  annuitants  who  retired
14        prior  to  January  1,  1988,  the  annuitant's  share of
15        monthly premium for non-Medicare Plan coverage only shall
16        not exceed the highest premium rate chargeable under  any
17        city  non-Medicare Plan annuitant coverage as of December
18        1, 1996.
19             (2)  For non-Medicare Plan annuitants who retire  on
20        or  after  January  1,  1988,  the  annuitant's  share of
21        monthly premium for non-Medicare Plan coverage only shall
22        be the rate in effect on December 1, 1996,  with  monthly
23        premium  increases to take effect no sooner than April 1,
24        1998 at the lower of  (i)  the  premium  rate  determined
25        pursuant to subsection (g) or (ii) 10% of the immediately
26        previous month's rate for similar coverage.
27             (3)  In   no   event  shall  any  non-Medicare  Plan
28        annuitant's share of  monthly  premium  for  non-Medicare
29        Plan  coverage  exceed  10%  of  the  annuitant's monthly
30        annuity.
31             (4)  Non-Medicare Plan annuitants who  are  enrolled
32        in  the  basic city plan as of July 1, 1998 may remain in
33        the basic city plan, if they so choose, on the  condition
34        that they are not entitled to the caps on rates set forth
 
                            -9-      LRB093 02819 LRD 16506 a
 1        in  subparagraphs (1) through (3), and their premium rate
 2        shall  be  the  rate  determined   in   accordance   with
 3        subsections (c) and (g).
 4             (5)  Medicare  Plan  annuitants  who  are  currently
 5        enrolled  in  the  basic  city plan for Medicare eligible
 6        annuitants may remain in that plan, if  they  so  choose,
 7        through  June  30, 2003.  Annuitants shall not be allowed
 8        to enroll in or transfer into the  basic  city  plan  for
 9        Medicare  eligible  annuitants  on or after July 1, 1999.
10        The  city  shall   continue   to   offer   annuitants   a
11        supplemental   Medicare   Plan   for   Medicare  eligible
12        annuitants through June 30, 2003, and the city may  offer
13        additional  plans  to Medicare eligible annuitants in its
14        sole discretion.  All  Medicare  Plan  annuitant  monthly
15        rates  shall be determined in accordance with subsections
16        (c) and (g).
17        (c)  The city shall pay 50% of the  aggregated  costs  of
18    the   claims   or   premiums,  whichever  is  applicable,  as
19    determined in accordance with subsection (g),  of  annuitants
20    and  their  dependents under all health care plans offered by
21    the city.  The city may reduce its obligation by  application
22    of  price  reductions  obtained  as  a  result  of  financial
23    arrangements with providers or plan administrators.
24        (d)  From  January 1, 1993 until June 30, 2003, the board
25    shall pay to the city  on  behalf  of  each  of  the  board's
26    annuitants  who  chooses  to participate in any of the city's
27    plans the following amounts: up to a maximum of $75 per month
28    for each such annuitant  who  is  not  qualified  to  receive
29    medicare  benefits,  and up to a maximum of $45 per month for
30    each such annuitant who  is  qualified  to  receive  medicare
31    benefits.
32        The  payments  described in this subsection shall be paid
33    from the  tax  levy  authorized  under  Section  6-165;  such
34    amounts  shall  be credited to the reserve for group hospital
 
                            -10-     LRB093 02819 LRD 16506 a
 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,  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
 
                            -11-     LRB093 02819 LRD 16506 a
 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        (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
17        Sec. 8-164.1. Payments to city Group health benefit.
18        (a)  For the purposes of this Section,  "city  annuitant"
19    means  a  person  receiving  an  age  and  service annuity, a
20    widow's annuity, a child's  annuity,  or  a  minimum  annuity
21    under  this Article as a direct result of previous employment
22    by the City of Chicago ("the city").
23        (b)  The board shall pay to the city, on  behalf  of  the
24    board's  city annuitants who participate in any of the city's
25    health care plans, the following amounts:
26             (1)  From July 1, 2003 through June  30,  2008,  $85
27        per  month for each such annuitant who is not eligible to
28        receive Medicare benefits and $55 per month for each such
29        annuitant who is eligible to receive Medicare benefits.
30             (2)  From July 1, 2008 through June  30,  2013,  $95
31        per  month for each such annuitant who is not eligible to
32        receive Medicare benefits and $65 per month for each such
33        annuitant who is eligible to receive Medicare benefits.
 
                            -12-     LRB093 02819 LRD 16506 a
 1        The payments described in this subsection shall  be  paid
 2    from  the  tax  levy  authorized  under  Section  8-173; such
 3    amounts shall be credited to the reserve for  group  hospital
 4    care  and  group  medical and surgical plan benefits, and all
 5    payments to the city required under this subsection shall  be
 6    charged against it.
 7        (c)  The  city  health  care  plans  referred  to in this
 8    Section and the board's  payments  to  the  city  under  this
 9    Section  are  not and shall not be construed to be pension or
10    retirement benefits for the purposes of Section 5 of  Article
11    XIII of the Illinois Constitution of 1970.
12        (a)  For  the  purposes  of this Section: (1) "annuitant"
13    means a person receiving an age and service annuity, a  prior
14    service  annuity,  a widow's annuity, a widow's prior service
15    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
16    by  reason  of  previous  employment  by  the City of Chicago
17    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
18    Plan  annuitant" means an annuitant described in item (1) who
19    is eligible for Medicare benefits; and (3) "non-Medicare Plan
20    annuitant" means an annuitant described in item  (1)  who  is
21    not eligible for Medicare benefits.
22        (b)  The  city  shall  offer  group  health  benefits  to
23    annuitants  and  their  eligible  dependents through June 30,
24    2003. The basic city health care plan available  as  of  June
25    30, 1988 (hereinafter called the basic city plan) shall cease
26    to  be  a  plan  offered  by the city, except as specified in
27    subparagraphs (4) and (5) below, and shall be closed  to  new
28    enrollment  or transfer of coverage for any non-Medicare Plan
29    annuitant  as  of  June  27,  1997.   The  city  shall  offer
30    non-Medicare Plan annuitants and  their  eligible  dependents
31    the  option  of enrolling in its Annuitant Preferred Provider
32    Plan and may offer additional plans for any  annuitant.   The
33    city  may  amend,  modify, or terminate any of its additional
34    plans at its sole discretion.  If the city offers  more  than
 
                            -13-     LRB093 02819 LRD 16506 a
 1    one  annuitant  plan,  the  city  shall  allow  annuitants to
 2    convert coverage from one city  annuitant  plan  to  another,
 3    except  the  basic  city plan, during times designated by the
 4    city, which periods of time shall occur  at  least  annually.
 5    For  the  period  dating  from June 27, 1997 through June 30,
 6    2003, monthly premium rates may be increased  for  annuitants
 7    during the time of their participation in non-Medicare plans,
 8    except  as  provided in subparagraphs (1) through (4) of this
 9    subsection.
10             (1)  For non-Medicare Plan  annuitants  who  retired
11        prior  to  January  1,  1988,  the  annuitant's  share of
12        monthly premium for non-Medicare Plan coverage only shall
13        not exceed the highest premium rate chargeable under  any
14        city  non-Medicare Plan annuitant coverage as of December
15        1, 1996.
16             (2)  For non-Medicare Plan annuitants who retire  on
17        or  after  January  1,  1988,  the  annuitant's  share of
18        monthly premium for non-Medicare Plan coverage only shall
19        be the rate in effect on December 1, 1996,  with  monthly
20        premium  increases to take effect no sooner than April 1,
21        1998 at the lower of  (i)  the  premium  rate  determined
22        pursuant to subsection (g) or (ii) 10% of the immediately
23        previous month's rate for similar coverage.
24             (3)  In   no   event  shall  any  non-Medicare  Plan
25        annuitant's share of  monthly  premium  for  non-Medicare
26        Plan  coverage  exceed  10%  of  the  annuitant's monthly
27        annuity.
28             (4)  Non-Medicare Plan annuitants who  are  enrolled
29        in  the  basic city plan as of July 1, 1998 may remain in
30        the basic city plan, if they so choose, on the  condition
31        that they are not entitled to the caps on rates set forth
32        in  subparagraphs (1) through (3), and their premium rate
33        shall  be  the  rate  determined   in   accordance   with
34        subsections (c) and (g).
 
                            -14-     LRB093 02819 LRD 16506 a
 1             (5)  Medicare  Plan  annuitants  who  are  currently
 2        enrolled  in  the  basic  city plan for Medicare eligible
 3        annuitants may remain in that plan, if  they  so  choose,
 4        through  June  30, 2003.  Annuitants shall not be allowed
 5        to enroll in or transfer into the  basic  city  plan  for
 6        Medicare  eligible  annuitants  on or after July 1, 1999.
 7        The  city  shall   continue   to   offer   annuitants   a
 8        supplemental   Medicare   Plan   for   Medicare  eligible
 9        annuitants through June 30, 2003, and the city may  offer
10        additional  plans  to Medicare eligible annuitants in its
11        sole discretion.  All  Medicare  Plan  annuitant  monthly
12        rates  shall be determined in accordance with subsections
13        (c) and (g).
14        (c)  The city shall pay 50% of the  aggregated  costs  of
15    the   claims   or   premiums,  whichever  is  applicable,  as
16    determined in accordance with subsection (g),  of  annuitants
17    and  their  dependents under all health care plans offered by
18    the city.  The city may reduce its obligation by  application
19    of  price  reductions  obtained  as  a  result  of  financial
20    arrangements with providers or plan administrators.
21        (d)  From  January 1, 1993 until June 30, 2003, the board
22    shall pay to the city  on  behalf  of  each  of  the  board's
23    annuitants  who  chooses  to participate in any of the city's
24    plans the following amounts: up to a maximum of $75 per month
25    for each such annuitant  who  is  not  qualified  to  receive
26    medicare  benefits,  and up to a maximum of $45 per month for
27    each such annuitant who  is  qualified  to  receive  medicare
28    benefits.
29        Commencing on August 23, 1989, the board is authorized to
30    pay  to  the  board of education on behalf of each person who
31    chooses to participate in the board of education's  plan  the
32    amounts  specified  in  this  subsection (d) during the years
33    indicated.  For the period January 1, 1988 through August 23,
34    1989,  the  board  shall  pay  to  the  board  of   education
 
                            -15-     LRB093 02819 LRD 16506 a
 1    annuitants who participate in the board of education's health
 2    benefits  plan  for annuitants the following amounts: $10 per
 3    month to each annuitant  who  is  not  qualified  to  receive
 4    medicare benefits, and $14 per month to each annuitant who is
 5    qualified to receive medicare benefits.
 6        The  payments  described in this subsection shall be paid
 7    from the  tax  levy  authorized  under  Section  8-189;  such
 8    amounts  shall  be credited to the reserve for group hospital
 9    care and group medical and surgical plan  benefits,  and  all
10    payments  to the city required under this subsection shall be
11    charged against it.
12        (e)  The city's obligations under subsections (b) and (c)
13    shall terminate on June  30,  2003,  except  with  regard  to
14    covered expenses incurred but not paid as of that date.  This
15    subsection  shall  not  affect  other obligations that may be
16    imposed by law.
17        (f)  The group coverage plans described in  this  Section
18    are  not  and  shall  not  be  construed  to  be  pension  or
19    retirement benefits for purposes of Section 5 of Article XIII
20    of the Illinois Constitution of 1970.
21        (g)  For  each  annuitant  plan  offered by the city, the
22    aggregate cost of claims, as reflected in the  claim  records
23    of  the  plan  administrator, shall be estimated by the city,
24    based upon a written determination by a qualified independent
25    actuary to be appointed and paid by the city and  the  board.
26    If  the estimated annual cost for each annuitant plan offered
27    by  the  city  is  more  than  the  estimated  amount  to  be
28    contributed by the city for that plan pursuant to subsections
29    (b) and (c) during that year plus the estimated amounts to be
30    paid pursuant to subsection (d)  and  by  the  other  pension
31    boards  on  behalf  of  other  participating  annuitants, the
32    difference shall be paid by all annuitants  participating  in
33    the  plan,  except  as provided in subsection (b).  The city,
34    based upon the  determination  of  the  independent  actuary,
 
                            -16-     LRB093 02819 LRD 16506 a
 1    shall set the monthly amounts to be paid by the participating
 2    annuitants.    The board may deduct the amounts to be paid by
 3    its annuitants from  the  participating  annuitants'  monthly
 4    annuities.
 5        If it is determined from the city's annual audit, or from
 6    audited  experience  data,  that the total amount paid by all
 7    participating annuitants was more or less than the difference
 8    between (1) the cost  of  providing  the  group  health  care
 9    plans,  and  (2) the sum of the amount to be paid by the city
10    as determined under subsection (c) and the  amounts  paid  by
11    all  the pension boards, then the independent actuary and the
12    city shall account for the excess or shortfall  in  the  next
13    year's   payments   by  annuitants,  except  as  provided  in
14    subsection (b).
15        (h)  An annuitant may elect to terminate  coverage  in  a
16    plan  at the end of any month, which election shall terminate
17    the annuitant's obligation to contribute  toward  payment  of
18    the excess described in subsection (g).
19        (i)  The  city  shall  advise  the  board of all proposed
20    premium increases for health care at least 75 days  prior  to
21    the  effective  date of the change, and any increase shall be
22    prospective only.
23    (Source: P.A. 92-599, eff. 6-28-02.)

24        (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
25        Sec. 11-160.1.  Payments to city Group health benefit.
26        (a)  For the purposes of this Section,  "city  annuitant"
27    means  a  person  receiving  an  age  and  service annuity, a
28    widow's annuity, a child's  annuity,  or  a  minimum  annuity
29    under  this Article as a direct result of previous employment
30    by the City of Chicago ("the city").
31        (b)  The board shall pay to the city, on  behalf  of  the
32    board's  city annuitants who participate in any of the city's
33    health care plans, the following amounts:
 
                            -17-     LRB093 02819 LRD 16506 a
 1             (1)  From July 1, 2003 through June  30,  2008,  $85
 2        per  month for each such annuitant who is not eligible to
 3        receive Medicare benefits and $55 per month for each such
 4        annuitant who is eligible to receive Medicare benefits.
 5             (2)  From July 1, 2008 through June  30,  2013,  $95
 6        per  month for each such annuitant who is not eligible to
 7        receive Medicare benefits and $65 per month for each such
 8        annuitant who is eligible to receive Medicare benefits.
 9        The payments described in this subsection shall  be  paid
10    from  the  tax  levy  authorized  under  Section 11-169; such
11    amounts shall be credited to the reserve for  group  hospital
12    care  and  group  medical and surgical plan benefits, and all
13    payments to the city required under this subsection shall  be
14    charged against it.
15        (c)  The  city  health  care  plans  referred  to in this
16    Section and the board's  payments  to  the  city  under  this
17    Section  are  not and shall not be construed to be pension or
18    retirement benefits for the purposes of Section 5 of  Article
19    XIII of the Illinois Constitution of 1970.
20        (a)  For  the  purposes  of this Section: (1) "annuitant"
21    means a person receiving an age and service annuity, a  prior
22    service  annuity,  a widow's annuity, a widow's prior service
23    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
24    by  reason  of  previous  employment  by  the City of Chicago
25    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
26    Plan  annuitant" means an annuitant described in item (1) who
27    is eligible for Medicare benefits; and (3) "non-Medicare Plan
28    annuitant" means an annuitant described in item  (1)  who  is
29    not eligible for Medicare benefits.
30        (b)  The  city  shall  offer  group  health  benefits  to
31    annuitants  and  their  eligible  dependents through June 30,
32    2003.  The basic city health care plan available as  of  June
33    30, 1988 (hereinafter called the basic city plan) shall cease
34    to  be  a  plan  offered  by the city, except as specified in
 
                            -18-     LRB093 02819 LRD 16506 a
 1    subparagraphs (4) and (5) below, and shall be closed  to  new
 2    enrollment  or transfer of coverage for any non-Medicare Plan
 3    annuitant  as  of  June  27,  1997.   The  city  shall  offer
 4    non-Medicare Plan annuitants and  their  eligible  dependents
 5    the  option  of enrolling in its Annuitant Preferred Provider
 6    Plan and may offer additional plans for any  annuitant.   The
 7    city  may  amend,  modify, or terminate any of its additional
 8    plans at its sole discretion.  If the city offers  more  than
 9    one  annuitant  plan,  the  city  shall  allow  annuitants to
10    convert coverage from one city  annuitant  plan  to  another,
11    except  the  basic  city plan, during times designated by the
12    city, which periods of time shall occur  at  least  annually.
13    For  the  period  dating  from June 27, 1997 through June 30,
14    2003, monthly premium rates may be increased  for  annuitants
15    during the time of their participation in non-Medicare plans,
16    except  as  provided in subparagraphs (1) through (4) of this
17    subsection.
18             (1)  For non-Medicare Plan  annuitants  who  retired
19        prior  to  January  1,  1988,  the  annuitant's  share of
20        monthly premium for non-Medicare Plan coverage only shall
21        not exceed the highest premium rate chargeable under  any
22        city  non-Medicare Plan annuitant coverage as of December
23        1, 1996.
24             (2)  For non-Medicare Plan annuitants who retire  on
25        or  after  January  1,  1988,  the  annuitant's  share of
26        monthly premium for non-Medicare Plan coverage only shall
27        be the rate in effect on December 1, 1996,  with  monthly
28        premium  increases to take effect no sooner than April 1,
29        1998 at the lower of  (i)  the  premium  rate  determined
30        pursuant to subsection (g) or (ii) 10% of the immediately
31        previous month's rate for similar coverage.
32             (3)  In   no   event  shall  any  non-Medicare  Plan
33        annuitant's share of  monthly  premium  for  non-Medicare
34        Plan  coverage  exceed  10%  of  the  annuitant's monthly
 
                            -19-     LRB093 02819 LRD 16506 a
 1        annuity.
 2             (4)  Non-Medicare Plan annuitants who  are  enrolled
 3        in  the  basic city plan as of July 1, 1998 may remain in
 4        the basic city plan, if they so choose, on the  condition
 5        that they are not entitled to the caps on rates set forth
 6        in  subparagraphs (1) through (3), and their premium rate
 7        shall  be  the  rate  determined   in   accordance   with
 8        subsections (c) and (g).
 9             (5)  Medicare  Plan  annuitants  who  are  currently
10        enrolled  in  the  basic  city plan for Medicare eligible
11        annuitants may remain in that plan, if  they  so  choose,
12        through  June  30, 2003.  Annuitants shall not be allowed
13        to enroll in or transfer into the  basic  city  plan  for
14        Medicare  eligible  annuitants  on or after July 1, 1999.
15        The  city  shall   continue   to   offer   annuitants   a
16        supplemental   Medicare   Plan   for   Medicare  eligible
17        annuitants through June 30, 2003, and the city may  offer
18        additional  plans  to Medicare eligible annuitants in its
19        sole discretion.  All  Medicare  Plan  annuitant  monthly
20        rates  shall be determined in accordance with subsections
21        (c) and (g).
22        (c)  The city shall pay 50% of the  aggregated  costs  of
23    the   claims   or   premiums,  whichever  is  applicable,  as
24    determined in accordance with subsection (g),  of  annuitants
25    and  their  dependents under all health care plans offered by
26    the city.  The city may reduce its obligation by  application
27    of  price  reductions  obtained  as  a  result  of  financial
28    arrangements with providers or plan administrators.
29        (d)   From January 1, 1993 until June 30, 2003, the board
30    shall  pay  to  the  city  on  behalf  of each of the board's
31    annuitants who chooses to participate in any  of  the  city's
32    plans the following amounts: up to a maximum of $75 per month
33    for  each  such  annuitant  who  is  not qualified to receive
34    medicare benefits, and up to a maximum of $45 per  month  for
 
                            -20-     LRB093 02819 LRD 16506 a
 1    each  such  annuitant  who  is  qualified to receive medicare
 2    benefits.
 3        The payments described in this subsection shall  be  paid
 4    from  the  tax  levy  authorized  under  Section 11-178; such
 5    amounts shall be credited to the reserve for  group  hospital
 6    care  and  group  medical and surgical plan benefits, and all
 7    payments to the city required under this subsection shall  be
 8    charged against it.
 9        (e)  The city's obligations under subsections (b) and (c)
10    shall  terminate  on  June  30,  2003,  except with regard to
11    covered expenses incurred but not paid as of that date.  This
12    subsection shall not affect other  obligations  that  may  be
13    imposed by law.
14        (f)  The  group  coverage plans described in this Section
15    are  not  and  shall  not  be  construed  to  be  pension  or
16    retirement benefits for purposes of Section 5 of Article XIII
17    of the Illinois Constitution of 1970.
18        (g)  For each annuitant plan offered  by  the  city,  the
19    aggregate  cost  of claims, as reflected in the claim records
20    of the plan administrator, shall be estimated  by  the  city,
21    based upon a written determination by a qualified independent
22    actuary  to  be appointed and paid by the city and the board.
23    If the estimated annual cost for each annuitant plan  offered
24    by  the  city  is  more  than  the  estimated  amount  to  be
25    contributed by the city for that plan pursuant to subsections
26    (b) and (c) during that year plus the estimated amounts to be
27    paid  pursuant  to  subsection  (d)  and by the other pension
28    boards on  behalf  of  other  participating  annuitants,  the
29    difference  shall  be paid by all annuitants participating in
30    the plan, except as provided in subsection  (b).   The  city,
31    based  upon  the  determination  of  the independent actuary,
32    shall set the monthly amounts to be paid by the participating
33    annuitants.  The board may deduct the amounts to be  paid  by
34    its  annuitants  from  the  participating annuitants' monthly
 
                            -21-     LRB093 02819 LRD 16506 a
 1    annuities.
 2        If it is determined from the city's annual audit, or from
 3    audited experience data, that the total amount  paid  by  all
 4    participating annuitants was more or less than the difference
 5    between  (1)  the  cost  of  providing  the group health care
 6    plans, and (2) the sum of the amount to be paid by  the  city
 7    as  determined  under  subsection (c) and the amounts paid by
 8    all the pension boards, then the independent actuary and  the
 9    city  shall  account  for the excess or shortfall in the next
10    year's  payments  by  annuitants,  except  as   provided   in
11    subsection (b).
12        (h)  An  annuitant  may  elect to terminate coverage in a
13    plan at the end of any month, which election shall  terminate
14    the  annuitant's  obligation  to contribute toward payment of
15    the excess described in subsection (g).
16        (i)  The city shall advise  the  board  of  all  proposed
17    premium  increases  for health care at least 75 days prior to
18    the effective date of the change, and any increase  shall  be
19    prospective only.
20    (Source: P.A. 92-599, eff. 6-28-02.)

21        Section  90.  The State Mandates Act is amended by adding
22    Section 8.27 as follows:

23        (30 ILCS 805/8.27 new)
24        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
25    and  8 of this Act, no reimbursement by the State is required
26    for  the  implementation  of  any  mandate  created  by  this
27    amendatory Act of the 93rd General Assembly.

28        Section 99. Effective date.  This Act takes  effect  July
29    1, 2003.".