Full Text of HB3177 95th General Assembly
HB3177eng 95TH GENERAL ASSEMBLY
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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| AN ACT concerning government.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The State Employees Group Insurance Act of 1971 | 5 |
| is amended by changing Section 6.6 as follows:
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| (5 ILCS 375/6.6)
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| Sec. 6.6. Contributions to the Teacher Health Insurance | 8 |
| Security Fund.
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| (a) Beginning July 1, 1995, all active contributors of the | 10 |
| Teachers'
Retirement System (established under Article 16 of | 11 |
| the Illinois Pension Code)
who are not employees of a | 12 |
| department as defined in Section 3 of this Act
shall make | 13 |
| contributions toward the cost of annuitant and survivor health
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| benefits. These contributions shall be at the following rates:
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| until January 1, 2002, 0.5% of salary;
beginning January 1, | 16 |
| 2002, 0.65% of salary;
beginning July 1, 2003, 0.75% of salary; | 17 |
| beginning July 1, 2005, 0.80% of salary;
beginning July 1, | 18 |
| 2007, a percentage of salary to be determined by the Department | 19 |
| of Central Management Services by rule, which in each fiscal | 20 |
| year shall not exceed 105% of the percentage of salary actually | 21 |
| required to be paid in the previous fiscal year.
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| These contributions shall be deducted by the employer and | 23 |
| paid to the System
as service agent for the Department of |
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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| Central Management Services. The System
may use the same | 2 |
| processes for collecting the contributions required by this
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| subsection that it uses to collect contributions received from | 4 |
| school districts
and other covered employers under Sections | 5 |
| 16-154 and 16-155 of the Illinois
Pension Code.
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| An employer may agree to pick up or pay the contributions | 7 |
| required under
this subsection on behalf of the teacher; such | 8 |
| contributions shall be deemed
to have to have been paid by the | 9 |
| teacher. Beginning January 1, 2002, if
the employer does not | 10 |
| directly pay the required member contribution, then the
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| employer shall reduce the member's salary by an amount equal to | 12 |
| the required
contribution and shall then pay the contribution | 13 |
| on behalf of the member.
This reduction shall not change the | 14 |
| amounts reported as creditable earnings
to the Teachers' | 15 |
| Retirement System.
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| A person who purchases optional service credit under | 17 |
| Article 16 of the
Illinois Pension Code for a period after June | 18 |
| 30, 1995 must also make a
contribution under this subsection | 19 |
| for that optional credit, at the rate
provided in subsection | 20 |
| (a), based on the salary used in
computing the optional service | 21 |
| credit, plus interest on this employee
contribution. This | 22 |
| contribution shall be collected by the System as service
agent | 23 |
| for the Department of Central Management Services. The | 24 |
| contribution
required under this subsection for the optional | 25 |
| service credit must be paid
in full before any annuity based on | 26 |
| that credit begins.
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HB3177 Engrossed |
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LRB095 09186 JAM 29379 b |
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| (a-5) Beginning January 1, 2002, every employer of a | 2 |
| teacher (other than
an employer that is a department as defined | 3 |
| in Section 3 of this Act) shall
pay an employer contribution | 4 |
| toward the cost of annuitant and survivor health
benefits. | 5 |
| These contributions shall be computed as follows:
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| (1) Beginning January 1, 2002 through June 30, 2003, | 7 |
| the employer
contribution shall be equal to 0.4% of each | 8 |
| teacher's salary.
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| (2) Beginning July 1, 2003, the employer contribution | 10 |
| shall be equal to
0.5% of each teacher's salary.
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| (3) Beginning July 1, 2005, the employer contribution | 12 |
| shall be equal to
0.6% of each teacher's salary.
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| (4) Beginning July 1, 2007, the employer contribution | 14 |
| shall be a percentage of each teacher's salary to be | 15 |
| determined by the Department of Central Management | 16 |
| Services by rule, which in each fiscal year shall not | 17 |
| exceed 105% of the percentage of each teacher's salary | 18 |
| actually required to be paid in the previous fiscal year.
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| These contributions shall be paid by the employer to the | 20 |
| System as service
agent for the Department of Central | 21 |
| Management Services. The System may use
the same processes for | 22 |
| collecting the contributions required by this subsection
that | 23 |
| it uses to collect contributions received from school districts | 24 |
| and other
covered employers under the Illinois Pension Code.
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| The school district or other employing unit may pay these | 26 |
| employer
contributions out of any source of funding available |
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| for that purpose and
shall forward the contributions to the | 2 |
| System on the schedule established
for the payment of member | 3 |
| contributions.
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| (b) The Teachers' Retirement System shall promptly deposit | 5 |
| all moneys
collected under subsections (a) and (a-5) of this
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| Section into the Teacher Health Insurance Security Fund created | 7 |
| in Section 6.5
of this Act. The moneys collected under this | 8 |
| Section shall be used only for
the purposes authorized in | 9 |
| Section 6.5 of this Act and shall not be considered
to be | 10 |
| assets of the Teachers' Retirement System. Contributions made | 11 |
| under this
Section are not transferable to other pension funds | 12 |
| or retirement systems and
are not refundable upon termination | 13 |
| of service.
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| (c) On or before November 15 of each year, the Board of | 15 |
| Trustees of the
Teachers' Retirement System shall certify to | 16 |
| the Governor, the Director of
Central Management Services, and | 17 |
| the State Comptroller its estimate of the
total amount of | 18 |
| contributions to be paid under subsection (a) of this Section
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| 6.6 for the next fiscal year. The amount certified shall be | 20 |
| decreased or
increased each year by the amount that the actual | 21 |
| active teacher contributions
either fell short of or exceeded | 22 |
| the estimate used by the Board in making the
certification for | 23 |
| the previous fiscal year. The certification shall include
a | 24 |
| detailed explanation of the methods and information that the | 25 |
| Board relied
upon in preparing its estimate. As soon as | 26 |
| possible after the effective date
of this amendatory Act of the |
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| 92nd General Assembly, the Board
shall recalculate and | 2 |
| recertify its certifications for fiscal years 2002 and
2003.
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| (d) Beginning in fiscal year 1996, on the first day of each | 4 |
| month, or
as soon thereafter as may be practical, the State | 5 |
| Treasurer and the State
Comptroller shall transfer from the | 6 |
| General Revenue Fund to the Teacher Health
Insurance Security | 7 |
| Fund 1/12 of the annual amount appropriated for that fiscal
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| year to the State Comptroller for deposit into the Teacher | 9 |
| Health Insurance
Security Fund under Section 1.3 of the State | 10 |
| Pension Funds Continuing
Appropriation Act.
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| (e) Except where otherwise specified in this Section, the | 12 |
| definitions
that apply to Article 16 of the Illinois Pension | 13 |
| Code apply to this Section.
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| (f) Notwithstanding any other law to the contrary, the | 15 |
| Teachers Health Insurance Security Fund is not subject to | 16 |
| sweeps, administrative charge-backs, or any other fiscal or | 17 |
| budgetary maneuver that would in any way transfer any amounts | 18 |
| from the Teachers Health Insurance Security Fund into any other | 19 |
| fund of the State. (Blank).
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| (Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)
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| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.
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