093_SB1701enr

 
SB1701 Enrolled                      LRB093 02819 LRD 02835 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 5-167.5, 6-142.2, 8-164.1, and 11-160.1 and
 6    adding Sections 8-164.2 and 11-160.2  as follows:

 7        (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
 8        Sec. 5-167.5.  Payments to city Group health benefit.
 9        (a)  For the purposes of this Section,  "city  annuitant"
10    means  a  person  receiving  an  age  and  service annuity, a
11    widow's annuity, a child's  annuity,  or  a  minimum  annuity
12    under  this Article as a direct result of previous employment
13    by the City of Chicago ("the city").
14        (b)  The board shall pay to the city, on  behalf  of  the
15    board's  city annuitants who participate in any of the city's
16    health care plans, the following amounts:
17             (1)  From July 1, 2003 through June  30,  2008,  $85
18        per  month for each such annuitant who is not eligible to
19        receive Medicare benefits and $55 per month for each such
20        annuitant who is eligible to receive Medicare benefits.
21             (2)  From July 1, 2008 through June  30,  2013,  $95
22        per  month for each such annuitant who is not eligible to
23        receive Medicare benefits and $65 per month for each such
24        annuitant who is eligible to receive Medicare benefits.
25        The payments described in this subsection shall  be  paid
26    from  the  tax  levy  authorized  under  Section  5-168; such
27    amounts shall be credited to the reserve for  group  hospital
28    care  and  group  medical and surgical plan benefits, and all
29    payments to the city required under this subsection shall  be
30    charged against it.
31        (c)  The  city  health  care  plans  referred  to in this
 
SB1701 Enrolled            -2-       LRB093 02819 LRD 02835 b
 1    Section and the board's  payments  to  the  city  under  this
 2    Section  are  not and shall not be construed to be pension or
 3    retirement benefits for the purposes of Section 5 of  Article
 4    XIII of the Illinois Constitution of 1970.
 5        (a)  For  the  purposes  of this Section: (1) "annuitant"
 6    means a person receiving an age and service annuity, a  prior
 7    service  annuity,  a widow's annuity, a widow's prior service
 8    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
 9    by  reason  of  previous  employment  by  the City of Chicago
10    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
11    Plan  annuitant" means an annuitant described in item (1) who
12    is eligible for Medicare benefits; and (3) "non-Medicare Plan
13    annuitant" means an annuitant described in item  (1)  who  is
14    not eligible for Medicare benefits.
15        (b)  The  city  shall  offer  group  health  benefits  to
16    annuitants  and  their  eligible  dependents through June 30,
17    2003.  The basic city health care plan available as  of  June
18    30, 1988 (hereinafter called the basic city plan) shall cease
19    to  be  a  plan  offered  by the city, except as specified in
20    subparagraphs (4) and (5) below, and shall be closed  to  new
21    enrollment  or transfer of coverage for any non-Medicare Plan
22    annuitant  as  of  June  27,  1997.   The  city  shall  offer
23    non-Medicare Plan annuitants and  their  eligible  dependents
24    the  option  of enrolling in its Annuitant Preferred Provider
25    Plan and may offer additional plans for any  annuitant.   The
26    city  may  amend,  modify, or terminate any of its additional
27    plans at its sole discretion.  If the city offers  more  than
28    one  annuitant  plan,  the  city  shall  allow  annuitants to
29    convert coverage from one city  annuitant  plan  to  another,
30    except  the  basic  city plan, during times designated by the
31    city, which periods of time shall occur  at  least  annually.
32    For  the  period  dating  from June 27, 1997 through June 30,
33    2003, monthly premium rates may be increased  for  annuitants
34    during the time of their participation in non-Medicare plans,
 
SB1701 Enrolled            -3-       LRB093 02819 LRD 02835 b
 1    except  as  provided in subparagraphs (1) through (4) of this
 2    subsection.
 3             (1)  For non-Medicare Plan  annuitants  who  retired
 4        prior  to  January  1,  1988,  the  annuitant's  share of
 5        monthly premium for non-Medicare Plan coverage only shall
 6        not exceed the highest premium rate chargeable under  any
 7        city  non-Medicare Plan annuitant coverage as of December
 8        1, 1996.
 9             (2)  For non-Medicare Plan annuitants who retire  on
10        or  after  January  1,  1988,  the  annuitant's  share of
11        monthly premium for non-Medicare Plan coverage only shall
12        be the rate in effect on December 1, 1996,  with  monthly
13        premium  increases to take effect no sooner than April 1,
14        1998 at the lower of  (i)  the  premium  rate  determined
15        pursuant to subsection (g) or (ii) 10% of the immediately
16        previous month's rate for similar coverage.
17             (3)  In   no   event  shall  any  non-Medicare  Plan
18        annuitant's share of  monthly  premium  for  non-Medicare
19        Plan  coverage  exceed  10%  of  the  annuitant's monthly
20        annuity.
21             (4)  Non-Medicare Plan annuitants who  are  enrolled
22        in  the  basic city plan as of July 1, 1998 may remain in
23        the basic city plan, if they so choose, on the  condition
24        that they are not entitled to the caps on rates set forth
25        in  subparagraphs (1) through (3), and their premium rate
26        shall  be  the  rate  determined   in   accordance   with
27        subsections (c) and (g).
28             (5)  Medicare  Plan  annuitants  who  are  currently
29        enrolled  in  the  basic  city plan for Medicare eligible
30        annuitants may remain in that plan, if  they  so  choose,
31        through  June  30, 2003.  Annuitants shall not be allowed
32        to enroll in or transfer into the  basic  city  plan  for
33        Medicare  eligible  annuitants  on or after July 1, 1999.
34        The  city  shall   continue   to   offer   annuitants   a
 
SB1701 Enrolled            -4-       LRB093 02819 LRD 02835 b
 1        supplemental   Medicare   Plan   for   Medicare  eligible
 2        annuitants through June 30, 2003, and the city may  offer
 3        additional  plans  to Medicare eligible annuitants in its
 4        sole discretion.  All  Medicare  Plan  annuitant  monthly
 5        rates  shall be determined in accordance with subsections
 6        (c) and (g).
 7        (c)  The city shall pay 50% of the  aggregated  costs  of
 8    the   claims   or   premiums,  whichever  is  applicable,  as
 9    determined in accordance with subsection (g),  of  annuitants
10    and  their  dependents under all health care plans offered by
11    the city.  The city may reduce its obligation by  application
12    of  price  reductions  obtained  as  a  result  of  financial
13    arrangements with providers or plan administrators.
14        (d)  From  January 1, 1993 until June 30, 2003, the board
15    shall pay to the city  on  behalf  of  each  of  the  board's
16    annuitants  who  chooses  to participate in any of the city's
17    plans the following amounts: up to a maximum of $75 per month
18    for each such annuitant  who  is  not  qualified  to  receive
19    medicare  benefits,  and up to a maximum of $45 per month for
20    each such annuitant who  is  qualified  to  receive  medicare
21    benefits.
22        The  payments  described in this subsection shall be paid
23    from the  tax  levy  authorized  under  Section  5-168;  such
24    amounts  shall  be credited to the reserve for group hospital
25    care and group medical and surgical plan  benefits,  and  all
26    payments  to the city required under this subsection shall be
27    charged against it.
28        (e)  The city's obligations under subsections (b) and (c)
29    shall terminate on June  30,  2003,  except  with  regard  to
30    covered expenses incurred but not paid as of that date.  This
31    subsection  shall  not  affect  other obligations that may be
32    imposed by law.
33        (f)  The group coverage plans described in  this  Section
34    are  not  and  shall  not  be  construed  to  be  pension  or
 
SB1701 Enrolled            -5-       LRB093 02819 LRD 02835 b
 1    retirement benefits for purposes of Section 5 of Article XIII
 2    of the Illinois Constitution of 1970.
 3        (g)  For  each  annuitant  plan  offered by the city, the
 4    aggregate cost of claims, as reflected in the  claim  records
 5    of  the  plan  administrator, shall be estimated by the city,
 6    based upon a written determination by a qualified independent
 7    actuary to be appointed and paid by the city and  the  board.
 8    If  the estimated annual cost for each annuitant plan offered
 9    by  the  city  is  more  than  the  estimated  amount  to  be
10    contributed by the city for that plan pursuant to subsections
11    (b) and (c) during that year plus the estimated amounts to be
12    paid pursuant to subsection (d)  and  by  the  other  pension
13    boards  on  behalf  of  other  participating  annuitants, the
14    difference shall be paid by all annuitants  participating  in
15    the  plan,  except  as provided in subsection (b).  The city,
16    based upon the  determination  of  the  independent  actuary,
17    shall set the monthly amounts to be paid by the participating
18    annuitants.    The board may deduct the amounts to be paid by
19    its annuitants from  the  participating  annuitants'  monthly
20    annuities.
21        If it is determined from the city's annual audit, or from
22    audited  experience  data,  that the total amount paid by all
23    participating annuitants was more or less than the difference
24    between (1) the cost  of  providing  the  group  health  care
25    plans,  and  (2) the sum of the amount to be paid by the city
26    as determined under subsection (c) and the  amounts  paid  by
27    all  the pension boards, then the independent actuary and the
28    city shall account for the excess or shortfall  in  the  next
29    year's   payments   by  annuitants,  except  as  provided  in
30    subsection (b).
31        (h)  An annuitant may elect to terminate  coverage  in  a
32    plan  at the end of any month, which election shall terminate
33    the annuitant's obligation to contribute  toward  payment  of
34    the excess described in subsection (g).
 
SB1701 Enrolled            -6-       LRB093 02819 LRD 02835 b
 1        (i)  The  city  shall  advise  the  board of all proposed
 2    premium increases for health care at least 75 days  prior  to
 3    the  effective  date of the change, and any increase shall be
 4    prospective only.
 5    (Source: P.A. 92-599, eff. 6-28-02.)

 6        (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
 7        Sec. 6-164.2.  Payments to city Group health benefit.
 8        (a)  For the purposes of this Section,  "city  annuitant"
 9    means  a  person  receiving  an  age  and  service annuity, a
10    widow's annuity, a child's  annuity,  or  a  minimum  annuity
11    under  this Article as a direct result of previous employment
12    by the City of Chicago ("the city").
13        (b)  The board shall pay to the city, on  behalf  of  the
14    board's  city annuitants who participate in any of the city's
15    health care plans, the following amounts:
16             (1)  From July 1, 2003 through June  30,  2008,  $85
17        per  month for each such annuitant who is not eligible to
18        receive Medicare benefits and $55 per month for each such
19        annuitant who is eligible to receive Medicare benefits.
20             (2)  From July 1, 2008 through June  30,  2013,  $95
21        per  month for each such annuitant who is not eligible to
22        receive Medicare benefits and $65 per month for each such
23        annuitant who is eligible to receive Medicare benefits.
24        The payments described in this subsection shall  be  paid
25    from  the  tax  levy  authorized  under  Section  6-165; such
26    amounts shall be credited to the reserve for  group  hospital
27    care  and  group  medical and surgical plan benefits, and all
28    payments to the city required under this subsection shall  be
29    charged against it.
30        (c)  The  city  health  care  plans  referred  to in this
31    Section and the board's  payments  to  the  city  under  this
32    Section  are  not and shall not be construed to be pension or
33    retirement benefits for the purposes of Section 5 of  Article
 
SB1701 Enrolled            -7-       LRB093 02819 LRD 02835 b
 1    XIII of the Illinois Constitution of 1970.
 2        (a)  For  the  purposes  of this Section: (1) "annuitant"
 3    means a person receiving an age and service annuity, a  prior
 4    service  annuity,  a widow's annuity, a widow's prior service
 5    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
 6    by  reason  of  previous  employment  by  the City of Chicago
 7    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
 8    Plan  annuitant" means an annuitant described in item (1) who
 9    is eligible for Medicare benefits; and (3) "non-Medicare Plan
10    annuitant" means an annuitant described in item  (1)  who  is
11    not eligible for Medicare benefits.
12        (b)  The  city  shall  offer  group  health  benefits  to
13    annuitants  and  their  eligible  dependents through June 30,
14    2003. The basic city health care plan available  as  of  June
15    30, 1988 (hereinafter called the basic city plan) shall cease
16    to  be  a  plan  offered  by the city, except as specified in
17    subparagraphs (4) and (5) below, and shall be closed  to  new
18    enrollment  or transfer of coverage for any non-Medicare Plan
19    annuitant  as  of  June  27,  1997.   The  city  shall  offer
20    non-Medicare Plan annuitants and  their  eligible  dependents
21    the  option  of enrolling in its Annuitant Preferred Provider
22    Plan and may offer additional plans for any  annuitant.   The
23    city  may  amend,  modify, or terminate any of its additional
24    plans at its sole discretion.  If the city offers  more  than
25    one  annuitant  plan,  the  city  shall  allow  annuitants to
26    convert coverage from one city  annuitant  plan  to  another,
27    except  the  basic  city plan, during times designated by the
28    city, which periods of time shall occur  at  least  annually.
29    For  the  period  dating  from June 27, 1997 through June 30,
30    2003, monthly premium rates may be increased  for  annuitants
31    during the time of their participation in non-Medicare plans,
32    except  as  provided in subparagraphs (1) through (4) of this
33    subsection.
34             (1)  For non-Medicare Plan  annuitants  who  retired
 
SB1701 Enrolled            -8-       LRB093 02819 LRD 02835 b
 1        prior  to  January  1,  1988,  the  annuitant's  share of
 2        monthly premium for non-Medicare Plan coverage only shall
 3        not exceed the highest premium rate chargeable under  any
 4        city  non-Medicare Plan annuitant coverage as of December
 5        1, 1996.
 6             (2)  For non-Medicare Plan annuitants who retire  on
 7        or  after  January  1,  1988,  the  annuitant's  share of
 8        monthly premium for non-Medicare Plan coverage only shall
 9        be the rate in effect on December 1, 1996,  with  monthly
10        premium  increases to take effect no sooner than April 1,
11        1998 at the lower of  (i)  the  premium  rate  determined
12        pursuant to subsection (g) or (ii) 10% of the immediately
13        previous month's rate for similar coverage.
14             (3)  In   no   event  shall  any  non-Medicare  Plan
15        annuitant's share of  monthly  premium  for  non-Medicare
16        Plan  coverage  exceed  10%  of  the  annuitant's monthly
17        annuity.
18             (4)  Non-Medicare Plan annuitants who  are  enrolled
19        in  the  basic city plan as of July 1, 1998 may remain in
20        the basic city plan, if they so choose, on the  condition
21        that they are not entitled to the caps on rates set forth
22        in  subparagraphs (1) through (3), and their premium rate
23        shall  be  the  rate  determined   in   accordance   with
24        subsections (c) and (g).
25             (5)  Medicare  Plan  annuitants  who  are  currently
26        enrolled  in  the  basic  city plan for Medicare eligible
27        annuitants may remain in that plan, if  they  so  choose,
28        through  June  30, 2003.  Annuitants shall not be allowed
29        to enroll in or transfer into the  basic  city  plan  for
30        Medicare  eligible  annuitants  on or after July 1, 1999.
31        The  city  shall   continue   to   offer   annuitants   a
32        supplemental   Medicare   Plan   for   Medicare  eligible
33        annuitants through June 30, 2003, and the city may  offer
34        additional  plans  to Medicare eligible annuitants in its
 
SB1701 Enrolled            -9-       LRB093 02819 LRD 02835 b
 1        sole discretion.  All  Medicare  Plan  annuitant  monthly
 2        rates  shall be determined in accordance with subsections
 3        (c) and (g).
 4        (c)  The city shall pay 50% of the  aggregated  costs  of
 5    the   claims   or   premiums,  whichever  is  applicable,  as
 6    determined in accordance with subsection (g),  of  annuitants
 7    and  their  dependents under all health care plans offered by
 8    the city.  The city may reduce its obligation by  application
 9    of  price  reductions  obtained  as  a  result  of  financial
10    arrangements with providers or plan administrators.
11        (d)  From  January 1, 1993 until June 30, 2003, the board
12    shall pay to the city  on  behalf  of  each  of  the  board's
13    annuitants  who  chooses  to participate in any of the city's
14    plans the following amounts: up to a maximum of $75 per month
15    for each such annuitant  who  is  not  qualified  to  receive
16    medicare  benefits,  and up to a maximum of $45 per month for
17    each such annuitant who  is  qualified  to  receive  medicare
18    benefits.
19        The  payments  described in this subsection shall be paid
20    from the  tax  levy  authorized  under  Section  6-165;  such
21    amounts  shall  be credited to the reserve for group hospital
22    care and group medical and surgical plan  benefits,  and  all
23    payments  to the city required under this subsection shall be
24    charged against it.
25        (e)  The city's obligations under subsections (b) and (c)
26    shall terminate on June  30,  2003,  except  with  regard  to
27    covered expenses incurred but not paid as of that date.  This
28    subsection  shall  not  affect  other obligations that may be
29    imposed by law.
30        (f)  The group coverage plans described in  this  Section
31    are  not  and  shall  not  be  construed  to  be  pension  or
32    retirement benefits for purposes of Section 5 of Article XIII
33    of the Illinois Constitution of 1970.
34        (g)  For  each  annuitant  plan  offered by the city, the
 
SB1701 Enrolled            -10-      LRB093 02819 LRD 02835 b
 1    aggregate cost of claims, as reflected in the  claim  records
 2    of  the  plan  administrator, shall be estimated by the city,
 3    based upon a written determination by a qualified independent
 4    actuary to be appointed and paid by the city and  the  board.
 5    If  the estimated annual cost for each annuitant plan offered
 6    by  the  city  is  more  than  the  estimated  amount  to  be
 7    contributed by the city for that plan pursuant to subsections
 8    (b) and (c) during that year plus the estimated amounts to be
 9    paid pursuant to subsection (d)  and  by  the  other  pension
10    boards  on  behalf  of  other  participating  annuitants, the
11    difference shall be paid by all annuitants  participating  in
12    the  plan,  except  as provided in subsection (b).  The city,
13    based upon the  determination  of  the  independent  actuary,
14    shall set the monthly amounts to be paid by the participating
15    annuitants.    The board may deduct the amounts to be paid by
16    its annuitants from  the  participating  annuitants'  monthly
17    annuities.
18        If it is determined from the city's annual audit, or from
19    audited  experience  data,  that the total amount paid by all
20    participating annuitants was more or less than the difference
21    between (1) the cost  of  providing  the  group  health  care
22    plans,  and  (2) the sum of the amount to be paid by the city
23    as determined under subsection (c) and the  amounts  paid  by
24    all  the pension boards, then the independent actuary and the
25    city shall account for the excess or shortfall  in  the  next
26    year's   payments   by  annuitants,  except  as  provided  in
27    subsection (b).
28        (h)  An annuitant may elect to terminate  coverage  in  a
29    plan  at the end of any month, which election shall terminate
30    the annuitant's obligation to contribute  toward  payment  of
31    the excess described in subsection (g).
32        (i)  The  city  shall  advise  the  board of all proposed
33    premium increases for health care at least 75 days  prior  to
34    the  effective  date of the change, and any increase shall be
 
SB1701 Enrolled            -11-      LRB093 02819 LRD 02835 b
 1    prospective only.
 2    (Source: P.A. 92-599, eff. 6-28-02.)

 3        (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
 4        Sec. 8-164.1. Payments to city Group health benefit.
 5        (a)  For the purposes of this Section,  "city  annuitant"
 6    means  a  person  receiving  an  age  and  service annuity, a
 7    widow's annuity, a child's  annuity,  or  a  minimum  annuity
 8    under  this Article as a direct result of previous employment
 9    by the City of Chicago ("the city").
10        (b)  The board shall pay to the city, on  behalf  of  the
11    board's  city annuitants who participate in any of the city's
12    health care plans, the following amounts:
13             (1)  From July 1, 2003 through June  30,  2008,  $85
14        per  month for each such annuitant who is not eligible to
15        receive Medicare benefits and $55 per month for each such
16        annuitant who is eligible to receive Medicare benefits.
17             (2)  From July 1, 2008 through June  30,  2013,  $95
18        per  month for each such annuitant who is not eligible to
19        receive Medicare benefits and $65 per month for each such
20        annuitant who is eligible to receive Medicare benefits.
21        The payments described in this subsection shall  be  paid
22    from  the  tax  levy  authorized  under  Section  8-173; such
23    amounts shall be credited to the reserve for  group  hospital
24    care  and  group  medical and surgical plan benefits, and all
25    payments to the city required under this subsection shall  be
26    charged against it.
27        (c)  The  city  health  care  plans  referred  to in this
28    Section and the board's  payments  to  the  city  under  this
29    Section  are  not and shall not be construed to be pension or
30    retirement benefits for the purposes of Section 5 of  Article
31    XIII of the Illinois Constitution of 1970.
32        (a)  For  the  purposes  of this Section: (1) "annuitant"
33    means a person receiving an age and service annuity, a  prior
 
SB1701 Enrolled            -12-      LRB093 02819 LRD 02835 b
 1    service  annuity,  a widow's annuity, a widow's prior service
 2    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
 3    by  reason  of  previous  employment  by  the City of Chicago
 4    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
 5    Plan  annuitant" means an annuitant described in item (1) who
 6    is eligible for Medicare benefits; and (3) "non-Medicare Plan
 7    annuitant" means an annuitant described in item  (1)  who  is
 8    not eligible for Medicare benefits.
 9        (b)  The  city  shall  offer  group  health  benefits  to
10    annuitants  and  their  eligible  dependents through June 30,
11    2003. The basic city health care plan available  as  of  June
12    30, 1988 (hereinafter called the basic city plan) shall cease
13    to  be  a  plan  offered  by the city, except as specified in
14    subparagraphs (4) and (5) below, and shall be closed  to  new
15    enrollment  or transfer of coverage for any non-Medicare Plan
16    annuitant  as  of  June  27,  1997.   The  city  shall  offer
17    non-Medicare Plan annuitants and  their  eligible  dependents
18    the  option  of enrolling in its Annuitant Preferred Provider
19    Plan and may offer additional plans for any  annuitant.   The
20    city  may  amend,  modify, or terminate any of its additional
21    plans at its sole discretion.  If the city offers  more  than
22    one  annuitant  plan,  the  city  shall  allow  annuitants to
23    convert coverage from one city  annuitant  plan  to  another,
24    except  the  basic  city plan, during times designated by the
25    city, which periods of time shall occur  at  least  annually.
26    For  the  period  dating  from June 27, 1997 through June 30,
27    2003, monthly premium rates may be increased  for  annuitants
28    during the time of their participation in non-Medicare plans,
29    except  as  provided in subparagraphs (1) through (4) of this
30    subsection.
31             (1)  For non-Medicare Plan  annuitants  who  retired
32        prior  to  January  1,  1988,  the  annuitant's  share of
33        monthly premium for non-Medicare Plan coverage only shall
34        not exceed the highest premium rate chargeable under  any
 
SB1701 Enrolled            -13-      LRB093 02819 LRD 02835 b
 1        city  non-Medicare Plan annuitant coverage as of December
 2        1, 1996.
 3             (2)  For non-Medicare Plan annuitants who retire  on
 4        or  after  January  1,  1988,  the  annuitant's  share of
 5        monthly premium for non-Medicare Plan coverage only shall
 6        be the rate in effect on December 1, 1996,  with  monthly
 7        premium  increases to take effect no sooner than April 1,
 8        1998 at the lower of  (i)  the  premium  rate  determined
 9        pursuant to subsection (g) or (ii) 10% of the immediately
10        previous month's rate for similar coverage.
11             (3)  In   no   event  shall  any  non-Medicare  Plan
12        annuitant's share of  monthly  premium  for  non-Medicare
13        Plan  coverage  exceed  10%  of  the  annuitant's monthly
14        annuity.
15             (4)  Non-Medicare Plan annuitants who  are  enrolled
16        in  the  basic city plan as of July 1, 1998 may remain in
17        the basic city plan, if they so choose, on the  condition
18        that they are not entitled to the caps on rates set forth
19        in  subparagraphs (1) through (3), and their premium rate
20        shall  be  the  rate  determined   in   accordance   with
21        subsections (c) and (g).
22             (5)  Medicare  Plan  annuitants  who  are  currently
23        enrolled  in  the  basic  city plan for Medicare eligible
24        annuitants may remain in that plan, if  they  so  choose,
25        through  June  30, 2003.  Annuitants shall not be allowed
26        to enroll in or transfer into the  basic  city  plan  for
27        Medicare  eligible  annuitants  on or after July 1, 1999.
28        The  city  shall   continue   to   offer   annuitants   a
29        supplemental   Medicare   Plan   for   Medicare  eligible
30        annuitants through June 30, 2003, and the city may  offer
31        additional  plans  to Medicare eligible annuitants in its
32        sole discretion.  All  Medicare  Plan  annuitant  monthly
33        rates  shall be determined in accordance with subsections
34        (c) and (g).
 
SB1701 Enrolled            -14-      LRB093 02819 LRD 02835 b
 1        (c)  The city shall pay 50% of the  aggregated  costs  of
 2    the   claims   or   premiums,  whichever  is  applicable,  as
 3    determined in accordance with subsection (g),  of  annuitants
 4    and  their  dependents under all health care plans offered by
 5    the city.  The city may reduce its obligation by  application
 6    of  price  reductions  obtained  as  a  result  of  financial
 7    arrangements with providers or plan administrators.
 8        (d)  From  January 1, 1993 until June 30, 2003, the board
 9    shall pay to the city  on  behalf  of  each  of  the  board's
10    annuitants  who  chooses  to participate in any of the city's
11    plans the following amounts: up to a maximum of $75 per month
12    for each such annuitant  who  is  not  qualified  to  receive
13    medicare  benefits,  and up to a maximum of $45 per month for
14    each such annuitant who  is  qualified  to  receive  medicare
15    benefits.
16        Commencing on August 23, 1989, the board is authorized to
17    pay  to  the  board of education on behalf of each person who
18    chooses to participate in the board of education's  plan  the
19    amounts  specified  in  this  subsection (d) during the years
20    indicated.  For the period January 1, 1988 through August 23,
21    1989,  the  board  shall  pay  to  the  board  of   education
22    annuitants who participate in the board of education's health
23    benefits  plan  for annuitants the following amounts: $10 per
24    month to each annuitant  who  is  not  qualified  to  receive
25    medicare benefits, and $14 per month to each annuitant who is
26    qualified to receive medicare benefits.
27        The  payments  described in this subsection shall be paid
28    from the  tax  levy  authorized  under  Section  8-189;  such
29    amounts  shall  be credited to the reserve for group hospital
30    care and group medical and surgical plan  benefits,  and  all
31    payments  to the city required under this subsection shall be
32    charged against it.
33        (e)  The city's obligations under subsections (b) and (c)
34    shall terminate on June  30,  2003,  except  with  regard  to
 
SB1701 Enrolled            -15-      LRB093 02819 LRD 02835 b
 1    covered expenses incurred but not paid as of that date.  This
 2    subsection  shall  not  affect  other obligations that may be
 3    imposed by law.
 4        (f)  The group coverage plans described in  this  Section
 5    are  not  and  shall  not  be  construed  to  be  pension  or
 6    retirement benefits for purposes of Section 5 of Article XIII
 7    of the Illinois Constitution of 1970.
 8        (g)  For  each  annuitant  plan  offered by the city, the
 9    aggregate cost of claims, as reflected in the  claim  records
10    of  the  plan  administrator, shall be estimated by the city,
11    based upon a written determination by a qualified independent
12    actuary to be appointed and paid by the city and  the  board.
13    If  the estimated annual cost for each annuitant plan offered
14    by  the  city  is  more  than  the  estimated  amount  to  be
15    contributed by the city for that plan pursuant to subsections
16    (b) and (c) during that year plus the estimated amounts to be
17    paid pursuant to subsection (d)  and  by  the  other  pension
18    boards  on  behalf  of  other  participating  annuitants, the
19    difference shall be paid by all annuitants  participating  in
20    the  plan,  except  as provided in subsection (b).  The city,
21    based upon the  determination  of  the  independent  actuary,
22    shall set the monthly amounts to be paid by the participating
23    annuitants.    The board may deduct the amounts to be paid by
24    its annuitants from  the  participating  annuitants'  monthly
25    annuities.
26        If it is determined from the city's annual audit, or from
27    audited  experience  data,  that the total amount paid by all
28    participating annuitants was more or less than the difference
29    between (1) the cost  of  providing  the  group  health  care
30    plans,  and  (2) the sum of the amount to be paid by the city
31    as determined under subsection (c) and the  amounts  paid  by
32    all  the pension boards, then the independent actuary and the
33    city shall account for the excess or shortfall  in  the  next
34    year's   payments   by  annuitants,  except  as  provided  in
 
SB1701 Enrolled            -16-      LRB093 02819 LRD 02835 b
 1    subsection (b).
 2        (h)  An annuitant may elect to terminate  coverage  in  a
 3    plan  at the end of any month, which election shall terminate
 4    the annuitant's obligation to contribute  toward  payment  of
 5    the excess described in subsection (g).
 6        (i)  The  city  shall  advise  the  board of all proposed
 7    premium increases for health care at least 75 days  prior  to
 8    the  effective  date of the change, and any increase shall be
 9    prospective only.
10    (Source: P.A. 92-599, eff. 6-28-02.)

11        (40 ILCS 5/8-164.2 new)
12        Sec. 8-164.2.  Payments to board of education  for  group
13    health benefits.
14        (a)  Should  the Board of Education continue to sponsor a
15    retiree health plan, the board is authorized to  pay  to  the
16    Board  of Education, on behalf of each eligible annuitant who
17    chooses to participate in the Board  of  Education's  retiree
18    health benefit plan, the following amounts:
19             (1)  From  July  1,  2003 through June 30, 2008, $85
20        per month for each such annuitant who is not eligible  to
21        receive Medicare benefits and $55 per month for each such
22        annuitant who is eligible to receive Medicare benefits.
23             (2)  From  July  1,  2008 through June 30, 2013, $95
24        per month for each such annuitant who is not eligible  to
25        receive Medicare benefits and $65 per month for each such
26        annuitant who is eligible to receive Medicare benefits.
27        The  payments  described in this subsection shall be paid
28    from the  tax  levy  authorized  under  Section  8-173;  such
29    amounts  shall  be credited to the reserve for group hospital
30    care and group medical and surgical plan  benefits,  and  all
31    payments  to  the  Board  of  Education under this subsection
32    shall be charged against it.
33        (b)  The Board of Education health benefit plan  referred
 
SB1701 Enrolled            -17-      LRB093 02819 LRD 02835 b
 1    to  in  this Section and the board's payments to the Board of
 2    Education under  this  Section  are  not  and  shall  not  be
 3    construed  to  be  pension  or  retirement  benefits  for the
 4    purposes of  Section  5  of  Article  XIII  of  the  Illinois
 5    Constitution of 1970.

 6        (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
 7        Sec. 11-160.1.  Payments to city Group health benefit.
 8        (a)  For  the  purposes of this Section, "city annuitant"
 9    means a person  receiving  an  age  and  service  annuity,  a
10    widow's  annuity,  a  child's  annuity,  or a minimum annuity
11    under this Article as a direct result of previous  employment
12    by the City of Chicago ("the city").
13        (b)  The  board  shall  pay to the city, on behalf of the
14    board's city annuitants who participate in any of the  city's
15    health care plans, the following amounts:
16             (1)  From  July  1,  2003 through June 30, 2008, $85
17        per month for each such annuitant who is not eligible  to
18        receive Medicare benefits and $55 per month for each such
19        annuitant who is eligible to receive Medicare benefits.
20             (2)  From  July  1,  2008 through June 30, 2013, $95
21        per month for each such annuitant who is not eligible  to
22        receive Medicare benefits and $65 per month for each such
23        annuitant who is eligible to receive Medicare benefits.
24        The  payments  described in this subsection shall be paid
25    from the tax  levy  authorized  under  Section  11-169;  such
26    amounts  shall  be credited to the reserve for group hospital
27    care and group medical and surgical plan  benefits,  and  all
28    payments  to the city required under this subsection shall be
29    charged against it.
30        (c)  The city health  care  plans  referred  to  in  this
31    Section  and  the  board's  payments  to  the city under this
32    Section are not and shall not be construed to be  pension  or
33    retirement  benefits for the purposes of Section 5 of Article
 
SB1701 Enrolled            -18-      LRB093 02819 LRD 02835 b
 1    XIII of the Illinois Constitution of 1970.
 2        (a)  For the purposes of this  Section:  (1)  "annuitant"
 3    means  a person receiving an age and service annuity, a prior
 4    service annuity, a widow's annuity, a widow's  prior  service
 5    annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
 6    by reason of previous  employment  by  the  City  of  Chicago
 7    (hereinafter,  in  this  Section,  "the city"); (2) "Medicare
 8    Plan annuitant" means an annuitant described in item (1)  who
 9    is eligible for Medicare benefits; and (3) "non-Medicare Plan
10    annuitant"  means  an  annuitant described in item (1) who is
11    not eligible for Medicare benefits.
12        (b)  The  city  shall  offer  group  health  benefits  to
13    annuitants and their eligible  dependents  through  June  30,
14    2003.   The  basic city health care plan available as of June
15    30, 1988 (hereinafter called the basic city plan) shall cease
16    to be a plan offered by the  city,  except  as  specified  in
17    subparagraphs  (4)  and (5) below, and shall be closed to new
18    enrollment or transfer of coverage for any non-Medicare  Plan
19    annuitant  as  of  June  27,  1997.   The  city  shall  offer
20    non-Medicare  Plan  annuitants  and their eligible dependents
21    the option of enrolling in its Annuitant  Preferred  Provider
22    Plan  and  may offer additional plans for any annuitant.  The
23    city may amend, modify, or terminate any  of  its  additional
24    plans  at  its sole discretion.  If the city offers more than
25    one annuitant  plan,  the  city  shall  allow  annuitants  to
26    convert  coverage  from  one  city annuitant plan to another,
27    except the basic city plan, during times  designated  by  the
28    city,  which  periods  of time shall occur at least annually.
29    For the period dating from June 27,  1997  through  June  30,
30    2003,  monthly  premium rates may be increased for annuitants
31    during the time of their participation in non-Medicare plans,
32    except as provided in subparagraphs (1) through (4)  of  this
33    subsection.
34             (1)  For  non-Medicare  Plan  annuitants who retired
 
SB1701 Enrolled            -19-      LRB093 02819 LRD 02835 b
 1        prior to  January  1,  1988,  the  annuitant's  share  of
 2        monthly premium for non-Medicare Plan coverage only shall
 3        not  exceed the highest premium rate chargeable under any
 4        city non-Medicare Plan annuitant coverage as of  December
 5        1, 1996.
 6             (2)  For  non-Medicare Plan annuitants who retire on
 7        or after  January  1,  1988,  the  annuitant's  share  of
 8        monthly premium for non-Medicare Plan coverage only shall
 9        be  the  rate in effect on December 1, 1996, with monthly
10        premium increases to take effect no sooner than April  1,
11        1998  at  the  lower  of  (i) the premium rate determined
12        pursuant to subsection (g) or (ii) 10% of the immediately
13        previous month's rate for similar coverage.
14             (3)  In  no  event  shall  any   non-Medicare   Plan
15        annuitant's  share  of  monthly  premium for non-Medicare
16        Plan coverage  exceed  10%  of  the  annuitant's  monthly
17        annuity.
18             (4)  Non-Medicare  Plan  annuitants who are enrolled
19        in the basic city plan as of July 1, 1998 may  remain  in
20        the  basic city plan, if they so choose, on the condition
21        that they are not entitled to the caps on rates set forth
22        in subparagraphs (1) through (3), and their premium  rate
23        shall   be   the   rate  determined  in  accordance  with
24        subsections (c) and (g).
25             (5)  Medicare  Plan  annuitants  who  are  currently
26        enrolled in the basic city  plan  for  Medicare  eligible
27        annuitants  may  remain  in that plan, if they so choose,
28        through June 30, 2003.  Annuitants shall not  be  allowed
29        to  enroll  in  or  transfer into the basic city plan for
30        Medicare eligible annuitants on or after  July  1,  1999.
31        The   city   shall   continue   to   offer  annuitants  a
32        supplemental  Medicare   Plan   for   Medicare   eligible
33        annuitants  through June 30, 2003, and the city may offer
34        additional plans to Medicare eligible annuitants  in  its
 
SB1701 Enrolled            -20-      LRB093 02819 LRD 02835 b
 1        sole  discretion.   All  Medicare  Plan annuitant monthly
 2        rates shall be determined in accordance with  subsections
 3        (c) and (g).
 4        (c)  The  city  shall  pay 50% of the aggregated costs of
 5    the  claims  or  premiums,  whichever   is   applicable,   as
 6    determined  in  accordance with subsection (g), of annuitants
 7    and their dependents under all health care plans  offered  by
 8    the  city.  The city may reduce its obligation by application
 9    of  price  reductions  obtained  as  a  result  of  financial
10    arrangements with providers or plan administrators.
11        (d)   From January 1, 1993 until June 30, 2003, the board
12    shall pay to the city  on  behalf  of  each  of  the  board's
13    annuitants  who  chooses  to participate in any of the city's
14    plans the following amounts: up to a maximum of $75 per month
15    for each such annuitant  who  is  not  qualified  to  receive
16    medicare  benefits,  and up to a maximum of $45 per month for
17    each such annuitant who  is  qualified  to  receive  medicare
18    benefits.
19        The  payments  described in this subsection shall be paid
20    from the tax  levy  authorized  under  Section  11-178;  such
21    amounts  shall  be credited to the reserve for group hospital
22    care and group medical and surgical plan  benefits,  and  all
23    payments  to the city required under this subsection shall be
24    charged against it.
25        (e)  The city's obligations under subsections (b) and (c)
26    shall terminate on June  30,  2003,  except  with  regard  to
27    covered expenses incurred but not paid as of that date.  This
28    subsection  shall  not  affect  other obligations that may be
29    imposed by law.
30        (f)  The group coverage plans described in  this  Section
31    are  not  and  shall  not  be  construed  to  be  pension  or
32    retirement benefits for purposes of Section 5 of Article XIII
33    of the Illinois Constitution of 1970.
34        (g)  For  each  annuitant  plan  offered by the city, the
 
SB1701 Enrolled            -21-      LRB093 02819 LRD 02835 b
 1    aggregate cost of claims, as reflected in the  claim  records
 2    of  the  plan  administrator, shall be estimated by the city,
 3    based upon a written determination by a qualified independent
 4    actuary to be appointed and paid by the city and  the  board.
 5    If  the estimated annual cost for each annuitant plan offered
 6    by  the  city  is  more  than  the  estimated  amount  to  be
 7    contributed by the city for that plan pursuant to subsections
 8    (b) and (c) during that year plus the estimated amounts to be
 9    paid pursuant to subsection (d)  and  by  the  other  pension
10    boards  on  behalf  of  other  participating  annuitants, the
11    difference shall be paid by all annuitants  participating  in
12    the  plan,  except  as provided in subsection (b).  The city,
13    based upon the  determination  of  the  independent  actuary,
14    shall set the monthly amounts to be paid by the participating
15    annuitants.   The  board may deduct the amounts to be paid by
16    its annuitants from  the  participating  annuitants'  monthly
17    annuities.
18        If it is determined from the city's annual audit, or from
19    audited  experience  data,  that the total amount paid by all
20    participating annuitants was more or less than the difference
21    between (1) the cost  of  providing  the  group  health  care
22    plans,  and  (2) the sum of the amount to be paid by the city
23    as determined under subsection (c) and the  amounts  paid  by
24    all  the pension boards, then the independent actuary and the
25    city shall account for the excess or shortfall  in  the  next
26    year's   payments   by  annuitants,  except  as  provided  in
27    subsection (b).
28        (h)  An annuitant may elect to terminate  coverage  in  a
29    plan  at the end of any month, which election shall terminate
30    the annuitant's obligation to contribute  toward  payment  of
31    the excess described in subsection (g).
32        (i)  The  city  shall  advise  the  board of all proposed
33    premium increases for health care at least 75 days  prior  to
34    the  effective  date of the change, and any increase shall be
 
SB1701 Enrolled            -22-      LRB093 02819 LRD 02835 b
 1    prospective only.
 2    (Source: P.A. 92-599, eff. 6-28-02.)

 3        (40 ILCS 5/11-160.2 new)
 4        Sec. 11-160.2.  Payments to board of education for  group
 5    health benefits.
 6        (a)  Should  the Board of Education continue to sponsor a
 7    retiree health plan, the board is authorized to  pay  to  the
 8    Board  of Education, on behalf of each eligible annuitant who
 9    chooses to participate in the Board  of  Education's  retiree
10    health benefit plan, the following amounts:
11             (1)  From  July  1,  2003 through June 30, 2008, $85
12        per month for each such annuitant who is not eligible  to
13        receive Medicare benefits and $55 per month for each such
14        annuitant who is eligible to receive Medicare benefits.
15             (2)  From  July  1,  2008 through June 30, 2013, $95
16        per month for each such annuitant who is not eligible  to
17        receive Medicare benefits and $65 per month for each such
18        annuitant who is eligible to receive Medicare benefits.
19        The  payments  described in this subsection shall be paid
20    from the tax  levy  authorized  under  Section  11-169;  such
21    amounts  shall  be credited to the reserve for group hospital
22    care and group medical and surgical plan  benefits,  and  all
23    payments  to  the  Board  of  Education under this subsection
24    shall be charged against it.
25        (b)  The Board of Education health benefit plan  referred
26    to  in  this Section and the board's payments to the Board of
27    Education under  this  Section  are  not  and  shall  not  be
28    construed  to  be  pension  or  retirement  benefits  for the
29    purposes of  Section  5  of  Article  XIII  of  the  Illinois
30    Constitution of 1970.

31        Section  90.  The State Mandates Act is amended by adding
32    Section 8.27 as follows:
 
SB1701 Enrolled            -23-      LRB093 02819 LRD 02835 b
 1        (30 ILCS 805/8.27 new)
 2        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
 3    and  8 of this Act, no reimbursement by the State is required
 4    for  the  implementation  of  any  mandate  created  by  this
 5    amendatory Act of the 93rd General Assembly.

 6        Section 99. Effective date.  This Act takes  effect  July
 7    1, 2003.