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90_HB1421eng
55 ILCS 5/5-1069.7 new
65 ILCS 5/10-4-2.7 new
215 ILCS 5/367f from Ch. 73, par. 979f
215 ILCS 5/367g from Ch. 73, par. 979g
215 ILCS 5/367h from Ch. 73, par. 979h
30 ILCS 805/8.21 new
Amends the Counties Code, Illinois Municipal Code, and
Illinois Insurance Code. Provides that a municipality or
county must pay the full amount of the cost of health care
benefits or insurance on behalf of surviving spouses and
dependents of firefighters, police officers, and deputies
whose death results from the performance of a duty. Amends
the State Mandates Act to require implementation without
reimbursement with respect to the continuation of insurance
benefits. Effective immediately.
LRB9004056JSgc
HB1421 Engrossed LRB9004056JSgc
1 AN ACT concerning insurance benefits for certain
2 firefighters and police officers.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Counties Code is amended by adding
6 Section 5-1069.7 as follows:
7 (55 ILCS 5/5-1069.7 new)
8 Sec. 5-1069.7. Health benefit continuation; death of
9 deputy as a result of the performance of a duty.
10 (a) A county that provides health care benefits or
11 insurance for deputies in accordance with Section 367h of the
12 Illinois Insurance Code must pay the full amount of the
13 charges for those benefits for the surviving spouse and
14 dependent children of deputies whose death is a result of a
15 performance of a duty.
16 (b) The requirement that a county pay for the benefits
17 subject to subsection (a) for a surviving spouse shall
18 terminate upon the earliest to happen of the following:
19 (1) the date on which the surviving spouse first
20 becomes an insured employee under any other group health
21 plan;
22 (2) the date on which the surviving spouse
23 remarries; or
24 (3) the date the surviving spouse reaches the
25 qualifying age or otherwise establishes eligibility under
26 the Medicare Program pursuant to Title XVIII of the
27 federal Social Security Act.
28 (c) This Section is a denial and limitation of home rule
29 powers and functions under subsection (h) of Section 6 of
30 Article VII of the Illinois Constitution.
HB1421 Engrossed -2- LRB9004056JSgc
1 Section 10. The Illinois Municipal Code is amended by
2 adding Section 10-4-2.7 as follows:
3 (65 ILCS 5/10-4-2.7 new)
4 Sec. 10-4-2.7. Health benefit continuation; death of
5 police officer, firefighter, or deputy as a result of the
6 performance of a duty.
7 (a) A municipality that provides health care benefits or
8 insurance for police officers, firefighters, or deputies in
9 accordance with Section 367f, 367g, or 367h of the Illinois
10 Insurance Code must pay the full amount of the charges for
11 those benefits for the surviving spouse and dependent
12 children of police officers, firefighters, and deputies whose
13 death is a result of a performance of a duty.
14 (b) The requirement that a municipality pay for the
15 benefits subject to subsection (a) for a surviving spouse
16 shall terminate upon the earliest to happen of the following:
17 (1) the date on which the surviving spouse first
18 becomes an insured employee under any other group health
19 plan;
20 (2) the date on which the surviving spouse
21 remarries; or
22 (3) the date the surviving spouse reaches the
23 qualifying age or otherwise establishes eligibility under
24 the Medicare Program pursuant to Title XVIII of the
25 federal Social Security Act.
26 (c) This Section is a denial and limitation of home rule
27 powers and functions under subsection (h) of Section 6 of
28 Article VII of the Illinois Constitution.
29 Section 15. The Illinois Insurance Code is amended by
30 changing Sections 367f, 367g, and 367h as follows:
31 (215 ILCS 5/367f) (from Ch. 73, par. 979f)
HB1421 Engrossed -3- LRB9004056JSgc
1 Sec. 367f. Firemen's continuance privilege. As used in
2 this Section:
3 1. The terms "municipality", "deferred pensioner" and
4 "creditable service" shall have the meaning ascribed to such
5 terms by Sections 4-103, 4-105a and 4-108, respectively, of
6 the Illinois Pension Code, as now or hereafter amended.
7 2. The terms "fireman" and "firemen" shall have the
8 meaning ascribed to the term "firefighter" by Section 4-106
9 of the Illinois Pension Code, and include those persons under
10 the coverage of Article 4 of that Code, as heretofore or
11 hereafter amended.
12 3. The "retirement or disability period" of a fireman
13 means the period:
14 a. which begins on the day the fireman is removed
15 from a municipality's fire department payroll because of
16 the occurrence of any of the following events, to wit:
17 (i) the fireman retires as a deferred pensioner under
18 Section 4-105a of the Illinois Pension Code, (ii) the
19 fireman retires from active service as a fireman with an
20 attained age and accumulated creditable service which
21 together qualify the fireman for immediate receipt of
22 retirement pension benefits under Section 4-109 of the
23 Illinois Pension Code, or (iii) the fireman's disability
24 is established under Section 4-112 of the Illinois
25 Pension Code, or (iv) the death of the fireman as a
26 result of performance of duty; and
27 b. which ends on the first to occur of any of the
28 following events, to wit: (i) the fireman's
29 reinstatement or reentry into active service on the
30 municipality's fire department as provided for under
31 Article 4 of the Illinois Pension Code, (ii) the
32 fireman's exercise of any refund option available under
33 Section 4-116 of the Illinois Pension Code, (iii) the
34 fireman's loss pursuant to Section 4-138 of the Illinois
HB1421 Engrossed -4- LRB9004056JSgc
1 Pension Code of any benefits provided for in Article 4 of
2 that Code, or (iv) the fireman's death or -- if at the
3 time of the fireman's death the fireman is survived by a
4 spouse who, in that capacity, is entitled to receive a
5 surviving spouse's monthly pension pursuant to Article 4
6 of the Illinois Pension Code -- then the death or
7 remarriage of that spouse, or (v) if the death of the
8 fireman resulted from the performance of a duty and the
9 fireman is survived by a spouse or dependent child
10 eligible to receive benefits under Section 4-110 of the
11 Illinois Pension Code (whether or not those benefits are
12 subject to reduction), the cessation of eligibility for
13 those benefits.
14 No policy of group accident and health insurance under
15 which firemen employed by a municipality are insured for
16 their individual benefit shall be issued or delivered in this
17 State to any municipality unless such group policy provides
18 for the election of continued group insurance coverage for
19 the retirement or disability period of each fireman who is
20 insured under the provisions of the group policy on the day
21 immediately preceding the day on which the retirement or
22 disability period of such fireman begins. So long as any
23 required premiums for continued group insurance coverage are
24 paid in accordance with the provisions of the group policy,
25 an election made pursuant to this Section shall provide
26 continued group insurance coverage for a fireman throughout
27 the retirement or disability period of the fireman and,
28 unless the fireman otherwise elects and subject to any other
29 provisions of the group policy which relate either to the
30 provision or to the termination of dependents' coverage and
31 which are not inconsistent with this Section, for any
32 dependents of the fireman who are insured under the group
33 policy on the day immediately preceding the day on which the
34 retirement or disability period of the fireman begins;
HB1421 Engrossed -5- LRB9004056JSgc
1 provided, however, that when such continued group insurance
2 coverage is in effect with respect to a fireman on the date
3 of the fireman's death but the retirement or disability
4 period of the fireman does not end with such fireman's death,
5 then the deceased fireman's surviving spouse upon whose death
6 or remarriage such retirement or disability period will end
7 shall be entitled, without further election and upon payment
8 of any required premiums in accordance with the provisions of
9 the group policy, to maintain such continued group insurance
10 coverage in effect until the end of such retirement or
11 disability period. Continued group insurance coverage shall
12 be provided in accordance with this Section at the same
13 premium rate from time to time charged for equivalent
14 coverage provided under the group policy with respect to
15 covered firemen whose retirement or disability period has not
16 begun, and no distinction or discrimination in the amount or
17 rate of premiums or in any waiver of premium or other benefit
18 provision shall be made between continued group insurance
19 coverage elected pursuant to this Section and equivalent
20 coverage provided to firemen under the group policy other
21 than pursuant to the provisions of this Section; provided
22 that no municipality shall be required by reason of any
23 provision of this Section to pay any group insurance premium
24 other than one that may be negotiated in a collective
25 bargaining agreement. If a person electing continued coverage
26 under this Section becomes eligible for medicare coverage,
27 benefits under the group policy may continue as a supplement
28 to the medicare coverage upon payment of any required
29 premiums to maintain the benefits of the group policy as
30 supplemental coverage.
31 Within 15 days of the beginning of the retirement or
32 disability period of any fireman entitled to elect continued
33 group insurance coverage under any group policy affected by
34 this Section or, with respect to an individual whose
HB1421 Engrossed -6- LRB9004056JSgc
1 eligibility is dependent upon this amendatory Act of 1997,
2 within 30 days after the effective date of this amendatory
3 Act of 1997, whichever is later, the municipality last
4 employing such fireman shall give written notice of such
5 beginning by certified mail, return receipt requested to the
6 insurance company issuing such policy. The notice shall
7 include the fireman's name and last known place of residence
8 and the beginning date of the fireman's retirement or
9 disability period.
10 Within 15 days of the date of receipt of such notice from
11 the municipality, the insurance company by certified mail,
12 return receipt requested, shall give written notice to the
13 fireman at the fireman's last known place of residence that
14 coverage under the group policy may be continued for the
15 retirement or disability period of the fireman as provided in
16 this Section. Such notice shall set forth: (i) a statement
17 of election to be filed by the fireman if the fireman wishes
18 to continue such group insurance coverage, (ii) the amount of
19 monthly premium, including a statement of the portion of such
20 monthly premium attributable to any dependents' coverage
21 which the fireman may elect, and (iii) instructions as to the
22 return of the election form to the insurance company issuing
23 such policy. Election shall be made, if at all, by returning
24 the statement of election to the insurance company by
25 certified mail, return receipt requested within 15 days after
26 having received it.
27 If the fireman elects to continue coverage, it shall be
28 the obligation of the fireman to pay the monthly premium
29 directly to the municipality which shall forward it to the
30 insurance company issuing the group insurance policy, or as
31 otherwise directed by the insurance company; provided,
32 however, that the fireman shall be entitled to designate on
33 the statement of election required to be filed with the
34 insurance company that the total monthly premium, or such
HB1421 Engrossed -7- LRB9004056JSgc
1 portion thereof as is not contributed by a municipality, be
2 deducted by a Firefighter's Pension Fund from any monthly
3 pension payment otherwise payable to or on behalf of the
4 fireman pursuant to Article 4 of the Illinois Pension Code,
5 and be remitted by such Pension Fund to the insurance
6 company. The portion, if any, of the monthly premium
7 contributed by a municipality for such continued group
8 insurance coverage shall be paid by the municipality directly
9 to the insurance company issuing the group insurance policy,
10 or as otherwise directed by the insurance company. Such
11 continued group insurance coverage shall relate back to the
12 beginning of the fireman's retirement or disability period.
13 The amendment, renewal or extension of any group
14 insurance policy affected by this Section shall be deemed to
15 be the issuance of a new policy of insurance for purposes of
16 this Section.
17 In the event that a municipality makes a program of
18 accident, health, hospital or medical benefits available to
19 its firemen through self-insurance, or by participation in a
20 pool or reciprocal insurer, or by contract in a form other
21 than a policy of group insurance with one or more medical
22 service plans, health care service corporations, health
23 maintenance organizations, or any other professional
24 corporations or plans under which health care or
25 reimbursement for the costs thereof is provided, whether the
26 cost of such benefits is borne by the municipality or the
27 firemen or both, such firemen and their surviving spouses
28 shall have the same right to elect continued coverage under
29 such program of benefits as they would have if such benefits
30 were provided by a policy of group accident and health
31 insurance. In such cases, the notice of right to elect
32 continued coverage shall be sent by the municipality; the
33 statement of election shall be sent to the municipality; and
34 references to the required premium shall refer to that
HB1421 Engrossed -8- LRB9004056JSgc
1 portion of the cost of such benefits which is not borne by
2 the municipality, either voluntarily or pursuant to the
3 provisions of a collective bargaining agreement. In the case
4 of a municipality providing such benefits through
5 self-insurance or participation in a pool or reciprocal
6 insurer, the right to elect continued coverage which is
7 provided by this paragraph shall be implemented and made
8 available to the firemen of the municipality and qualifying
9 surviving spouses not later than July 1, 1985.
10 The amendment, renewal or extension of any such contract
11 in a form other than a policy of group insurance policy shall
12 be deemed the formation of a new contract for the purposes of
13 this Section.
14 This Section shall not limit the exercise of any
15 conversion privileges available under Section 367e.
16 Pursuant to paragraphs (h) and (i) of Section 6 of
17 Article VII of the Illinois Constitution, this Section
18 specifically denies and limits the exercise by a home rule
19 unit of any power which is inconsistent with this Section and
20 all existing laws and ordinances which are inconsistent with
21 this Section are hereby superseded. This Section does not
22 preempt the concurrent exercise by home rule units of powers
23 consistent herewith.
24 (Source: P.A. 86-1444.)
25 (215 ILCS 5/367g) (from Ch. 73, par. 979g)
26 Sec. 367g. Police officer's continuance privilege. As
27 used in this Section:
28 1. The terms "municipality" and "creditable service"
29 shall have the meaning ascribed to such terms by Sections
30 3-103 and 3-110, respectively, of the Illinois Pension Code,
31 as now or hereafter amended.
32 The term "deferred pensioner" means a police officer who
33 has retired, having accumulated enough creditable service to
HB1421 Engrossed -9- LRB9004056JSgc
1 qualify for a pension, but who has not attained the required
2 age.
3 2. The term "police officer" shall have the meaning
4 ascribed to it by Section 3-106 of the Illinois Pension Code,
5 and include those persons under the coverage of Article 3 of
6 that Code, as heretofore or hereafter amended.
7 3. The "retirement or disability period" of a police
8 officer means the period:
9 a. which begins on the day the police officer is removed
10 from a municipality's police department payroll because of
11 the occurrence of any of the following events, to wit: (i)
12 the police officer retires as a deferred pensioner, (ii) the
13 police officer retires from active service as a police
14 officer with an attained age and accumulated creditable
15 service which together qualify the police officer for
16 immediate receipt of retirement pension benefits under
17 Section 3-111 of the Illinois Pension Code, or (iii) the
18 police officer's disability is established under Section
19 3-115 of the Illinois Pension Code, or (iv) the death of the
20 police officer as a result of the performance of duty; and
21 b. which ends on the first to occur of any of the
22 following events, to wit: (i) the police officer's
23 reinstatement or reentry into active service on the
24 municipality's police department as provided for under
25 Article 3 of the Illinois Pension Code, (ii) the police
26 officer's exercise of any refund option available under
27 Section 3-124 of the Illinois Pension Code, (iii) the police
28 officer's loss pursuant to Section 3-147 of the Illinois
29 Pension Code of any benefits provided for in Article 3 of
30 that Code, or (iv) the police officer's death or -- if at the
31 time of the police officer's death the police officer is
32 survived by a spouse who, in that capacity, is entitled to
33 receive a surviving spouse's monthly pension pursuant to
34 Article 3 of the Illinois Pension Code -- the death or
HB1421 Engrossed -10- LRB9004056JSgc
1 remarriage of that spouse, or (v) if the death of the police
2 officer resulted from the performance of a duty and the
3 police officer is survived by a spouse or dependent child
4 eligible to receive benefits under Section 3-114.1 of the
5 Illinois Pension Code (whether or not those benefits are
6 subject to reduction), the cessation of eligibility for those
7 benefits.
8 No policy of group accident and health insurance under
9 which policemen employed by a municipality are insured for
10 their individual benefit shall be issued or delivered in this
11 State to any municipality unless such group policy provides
12 for the election of continued group insurance coverage for
13 the retirement or disability period of each police officer
14 who is insured under the provisions of the group policy on
15 the day immediately preceding the day on which the retirement
16 or disability period of such police officer begins. So long
17 as any required premiums for continued group insurance
18 coverage are paid in accordance with the provisions of the
19 group policy, an election made pursuant to this Section shall
20 provide continued group insurance coverage for a police
21 officer throughout the retirement or disability period of the
22 police officer and, unless the police officer otherwise
23 elects and subject to any other provisions of the group
24 policy which relate either to the provision or to the
25 termination of dependents' coverage and which are not
26 inconsistent with this Section, for any dependents of the
27 police officer who are insured under the group policy on the
28 day immediately preceding the day on which the retirement or
29 disability period of the police officer begins; provided,
30 however, that when such continued group insurance coverage is
31 in effect with respect to a police officer on the date of the
32 police officer's death but the retirement or disability
33 period of the police officer does not end with such police
34 officer's death, then the deceased police officer's surviving
HB1421 Engrossed -11- LRB9004056JSgc
1 spouse upon whose death or remarriage such retirement or
2 disability period will end shall be entitled, without further
3 election and upon payment of any required premiums in
4 accordance with the provisions of the group policy, to
5 maintain such continued group insurance coverage in effect
6 until the end of such retirement or disability period.
7 Continued group insurance coverage shall be provided in
8 accordance with this Section at the same premium rate from
9 time to time charged for equivalent coverage provided under
10 the group policy with respect to covered policemen whose
11 retirement or disability period has not begun, and no
12 distinction or discrimination in the amount or rate of
13 premiums or in any waiver of premium or other benefit
14 provision shall be made between continued group insurance
15 coverage elected pursuant to this Section and equivalent
16 coverage provided to policemen under the group policy other
17 than pursuant to the provisions of this Section; provided
18 that no municipality shall be required by reason of any
19 provision of this Section to pay any group insurance premium
20 other than one that may be negotiated in a collective
21 bargaining agreement. If the group policy provides for a
22 reduction in benefits and premium for insureds who become
23 eligible for medicare, such provision shall apply to persons
24 electing continued coverage under this Section.
25 Within 15 days of the beginning of the retirement or
26 disability period of any police officer entitled to elect
27 continued group insurance coverage under any group policy
28 affected by this Section or, with respect to an individual
29 whose eligibility is dependent upon this amendatory Act of
30 1997, within 30 days after the effective date of this
31 amendatory Act of 1997, whichever is later, the municipality
32 last employing such police officer shall give written notice
33 of such beginning by certified mail, return receipt requested
34 to the insurance company issuing such policy. The notice
HB1421 Engrossed -12- LRB9004056JSgc
1 shall include the police officer's name and last known place
2 of residence and the beginning date of the police officer's
3 retirement or disability period.
4 Within 15 days of the date of receipt of such notice from
5 the municipality, the insurance company by certified mail,
6 return receipt requested, shall give written notice to the
7 police officer at the police officer's last known place of
8 residence that coverage under the group policy may be
9 continued for the retirement or disability period of the
10 police officer as provided in this Section. Such notice
11 shall set forth: (i) a statement of election to be filed by
12 the police officer if the police officer wishes to continue
13 such group insurance coverage, (ii) the amount of monthly
14 premium, including a statement of the portion of such monthly
15 premium attributable to any dependents' coverage which the
16 police officer may elect, and (iii) instructions as to the
17 return of the election form to the insurance company issuing
18 such policy. Election shall be made, if at all, by returning
19 the statement of election to the insurance company by
20 certified mail, return receipt requested within 15 days after
21 having received it.
22 If the police officer elects to continue coverage, it
23 shall be the obligation of the police officer to pay the
24 monthly premium directly to the municipality which shall
25 forward it to the insurance company issuing the group
26 insurance policy, or as otherwise directed by the insurance
27 company; provided, however, that the police officer shall be
28 entitled to designate on the statement of election required
29 to be filed with the insurance company that the total monthly
30 premium, or such portion thereof as is not contributed by a
31 municipality, be deducted by a Police Pension Fund from any
32 monthly pension payment otherwise payable to or on behalf of
33 the police officer pursuant to Article 3 of the Illinois
34 Pension Code, and be remitted by such Pension Fund to the
HB1421 Engrossed -13- LRB9004056JSgc
1 insurance company. The portion, if any, of the monthly
2 premium contributed by a municipality for such continued
3 group insurance coverage shall be paid by the municipality
4 directly to the insurance company issuing the group insurance
5 policy, or as otherwise directed by the insurance company.
6 Such continued group insurance coverage shall relate back to
7 the beginning of the police officer's retirement or
8 disability period.
9 The amendment, renewal or extension of any group
10 insurance policy affected by this Section shall be deemed to
11 be the issuance of a new policy of insurance for purposes of
12 this Section.
13 In the event that a municipality makes a program of
14 accident, health, hospital or medical benefits available to
15 its police officers through self-insurance, or by
16 participation in a pool or reciprocal insurer, or by contract
17 in a form other than a policy of group insurance with one or
18 more medical service plans, health care service corporations,
19 health maintenance organizations, or any other professional
20 corporations or plans under which health care or
21 reimbursement for the costs thereof is provided, whether the
22 cost of such benefits is borne by the municipality or the
23 police officers or both, such police officers and their
24 surviving spouses shall have the same right to elect
25 continued coverage under such program of benefits as they
26 would have if such benefits were provided by a policy of
27 group accident and health insurance. In such cases, the
28 notice of right to elect continued coverage shall be sent by
29 the municipality; the statement of election shall be sent to
30 the municipality; and references to the required premium
31 shall refer to that portion of the cost of such benefits
32 which is not borne by the municipality, either voluntarily or
33 pursuant to the provisions of a collective bargaining
34 agreement. In the case of a municipality providing such
HB1421 Engrossed -14- LRB9004056JSgc
1 benefits through self-insurance or participation in a pool or
2 reciprocal insurer, the right to elect continued coverage
3 which is provided by this paragraph shall be implemented and
4 made available to the police officers of the municipality and
5 qualifying surviving spouses not later than July 1, 1986.
6 The amendment, renewal or extension of any such contract
7 in a form other than a policy of group insurance policy shall
8 be deemed the formation of a new contract for the purposes of
9 this Section.
10 This Section shall not limit the exercise of any
11 conversion privileges available under Section 367e.
12 (Source: P.A. 84-1010.)
13 (215 ILCS 5/367h) (from Ch. 73, par. 979h)
14 Sec. 367h. Deputy's continuance privilege. As used in
15 this Section:
16 1. The terms "municipality" and "creditable service"
17 shall have the meaning ascribed to such terms by Sections
18 7-105 and 7-113, respectively, of the Illinois Pension Code,
19 as now or hereafter amended.
20 The term "deferred pensioner" means a deputy who has
21 retired, having accumulated enough creditable service to
22 qualify for a pension, but who has not attained the required
23 age.
24 2. The term "deputy" shall mean a "sheriff's law
25 enforcement employee" as defined in Section 7-109.3 of the
26 Illinois Pension Code, and include only persons under the
27 coverage of Article 7 of that Code, as heretofore or
28 hereafter amended.
29 3. The "retirement or disability period" of a deputy
30 means the period:
31 a. which begins on the day the deputy is removed from a
32 sheriff's police department payroll because of the occurrence
33 of any of the following events, to wit: (i) the deputy
HB1421 Engrossed -15- LRB9004056JSgc
1 retires as a deferred pensioner, (ii) the deputy retires from
2 active service as a deputy with an attained age and
3 accumulated creditable service which together qualify the
4 deputy for immediate receipt of retirement pension benefits
5 under Section 7-142.1 of the Illinois Pension Code, or (iii)
6 the deputy's disability is established under Article 7 of the
7 Illinois Pension Code, or (iv) the death of the deputy as the
8 result of the performance of a duty; and
9 b. which ends on the first to occur of any of the
10 following events, to wit: (i) the deputy's reinstatement or
11 reentry into active service in the sheriff's police
12 department as provided for under Article 7 of the Illinois
13 Pension Code, (ii) the deputy's exercise of any refund option
14 or acceptance of any separation benefit available under
15 Article 7 of the Illinois Pension Code, (iii) the deputy's
16 loss pursuant to Section 7-219 of the Illinois Pension Code
17 of any benefits provided for in Article 7 of that Code, or
18 (iv) the deputy's death or -- if at the time of the deputy's
19 death the deputy is survived by a spouse who, in that
20 capacity, is entitled to receive a surviving spouse's monthly
21 pension pursuant to Article 7 of the Illinois Pension Code --
22 the death or remarriage of that spouse, or (v) if the death
23 of the deputy resulted from the performance of a duty and the
24 deputy is survived by a spouse or dependent child eligible to
25 receive benefits under Article 7 of the Illinois Pension Code
26 (whether or not those benefits are subject to reduction), the
27 cessation of eligibility for those benefits.
28 No policy of group accident and health insurance under
29 which deputies employed by a municipality are insured for
30 their individual benefit shall be issued or delivered in this
31 State to any municipality unless such group policy provides
32 for the election of continued group insurance coverage for
33 the retirement or disability period of each deputy who is
34 insured under the provisions of the group policy on the day
HB1421 Engrossed -16- LRB9004056JSgc
1 immediately preceding the day on which the retirement or
2 disability period of such deputy begins. So long as any
3 required premiums for continued group insurance coverage are
4 paid in accordance with the provisions of the group policy,
5 an election made pursuant to this Section shall provide
6 continued group insurance coverage for a deputy throughout
7 the retirement or disability period of the deputy and, unless
8 the deputy otherwise elects and subject to any other
9 provisions of the group policy which relate either to the
10 provision or to the termination of dependents' coverage and
11 which are not inconsistent with this Section, for any
12 dependents of the deputy who are insured under the group
13 policy on the day immediately preceding the day on which the
14 retirement or disability period of the deputy begins;
15 provided, however, that when such continued group insurance
16 coverage is in effect with respect to a deputy on the date of
17 the deputy's death but the retirement or disability period of
18 the deputy does not end with such deputy's death, then the
19 deceased deputy's surviving spouse upon whose death or
20 remarriage such retirement or disability period will end
21 shall be entitled, without further election and upon payment
22 of any required premiums in accordance with the provisions of
23 the group policy, to maintain such continued group insurance
24 coverage in effect until the end of such retirement or
25 disability period. Continued group insurance coverage shall
26 be provided in accordance with this Section at the same
27 premium rate from time to time charged for equivalent
28 coverage provided under the group policy with respect to
29 covered deputies whose retirement or disability period has
30 not begun, and no distinction or discrimination in the amount
31 or rate of premiums or in any waiver of premium or other
32 benefit provision shall be made between continued group
33 insurance coverage elected pursuant to this Section and
34 equivalent coverage provided to deputies under the group
HB1421 Engrossed -17- LRB9004056JSgc
1 policy other than pursuant to the provisions of this Section;
2 provided that no municipality shall be required by reason of
3 any provision of this Section to pay any group insurance
4 premium other than one that may be negotiated in a collective
5 bargaining agreement. If the group policy provides for a
6 reduction in benefits and premium for insureds who become
7 eligible for medicare, such provision shall apply to persons
8 electing continued coverage under this Section.
9 Within 15 days of the beginning of the retirement or
10 disability period of any deputy entitled to elect continued
11 group insurance coverage under any group policy affected by
12 this Section or, with respect to an individual whose
13 eligibility is dependent upon this amendatory Act of 1997,
14 within 30 days after the effective date of this amendatory
15 Act of 1997, whichever is later, the municipality last
16 employing such deputy shall give written notice of such
17 beginning by certified mail, return receipt requested, to the
18 insurance company issuing such policy. The notice shall
19 include the deputy's name and last known place of residence
20 and the beginning date of the deputy's retirement or
21 disability period.
22 Within 15 days of the date of receipt of such notice from
23 the municipality, the insurance company by certified mail,
24 return receipt requested, shall give written notice to the
25 deputy at the deputy's last known place of residence that
26 coverage under the group policy may be continued for the
27 retirement or disability period of the deputy as provided in
28 this Section. Such notice shall set forth: (i) a statement
29 of election to be filed by the deputy if the deputy wishes to
30 continue such group insurance coverage, (ii) the amount of
31 monthly premium, including a statement of the portion of such
32 monthly premium attributable to any dependents' coverage
33 which the deputy may elect, and (iii) instructions as to the
34 return of the election form to the insurance company issuing
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1 such policy. Election shall be made, if at all, by returning
2 the statement of election to the insurance company by
3 certified mail, return receipt requested, within 15 days
4 after having received it.
5 If the deputy elects to continue coverage, it shall be
6 the obligation of the deputy to pay the monthly premium
7 directly to the municipality which shall forward it to the
8 insurance company issuing the group insurance policy, or as
9 otherwise directed by the insurance company; provided,
10 however, that the deputy shall be entitled to designate on
11 the statement of election required to be filed with the
12 insurance company that the total monthly premium, or such
13 portion thereof as is not contributed by a municipality, be
14 deducted by the Illinois Municipal Retirement Fund from the
15 monthly pension payment otherwise payable to or on behalf of
16 the deputy pursuant to Article 7 of the the Illinois Pension
17 Code, and be remitted by such Fund to the insurance company.
18 The portion, if any, of the monthly premium contributed by a
19 municipality for such continued group insurance coverage
20 shall be paid by the directly to the insurance company
21 issuing the group insurance policy, or as directed by the
22 insurance company. Such continued group insurance coverage
23 shall relate back to the beginning of the deputy's retirement
24 or disability period.
25 The amendment, renewal or extension of any group
26 insurance policy affected by this Section shall be deemed to
27 be the issuance of a new policy of insurance for purposes of
28 this Section.
29 In the event that a municipality makes a program of
30 accident, health, hospital or medical benefits available to
31 its deputies through self-insurance, or by participation in a
32 pool or reciprocal insurer, or by contract in a form other
33 than a policy of group insurance with one or more medical
34 service plans, health care service corporations, health
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1 maintenance organizations, or any other professional
2 corporations or plans under which health care or
3 reimbursement for the costs thereof is provided, whether the
4 cost of such benefits is borne by the municipality or the
5 deputies or both, such deputies and their surviving spouses
6 shall have the same right to elect continued coverage under
7 such program of benefits as they would have if such benefits
8 were provided by a policy of group accident and health
9 insurance. In such cases, the notice of right to elect
10 continued coverage shall be sent by the municipality; the
11 statement of election shall be sent to the municipality; and
12 references to the required premium shall refer to that
13 portion of the cost of such benefits which is not borne by
14 the municipality, either voluntarily or pursuant to the
15 provisions of a collective bargaining agreement. In the case
16 of a municipality providing such benefits through
17 self-insurance or participation in a pool or reciprocal
18 insurer, the right to elect continued coverage which is
19 provided by this paragraph shall be implemented and made
20 available to the deputies of the municipality and qualifying
21 surviving spouses not later than July 1, 1986.
22 The amendment, renewal or extension of any such contract
23 in a form other than a policy of group insurance policy shall
24 be deemed the formation of a new contract for the purposes of
25 this Section.
26 This Section shall not limit the exercise of any
27 conversion privileges available under Section 367e.
28 (Source: P.A. 84-1010.)
29 Section 20. The State Mandates Act is amended by adding
30 Section 8.21 as follows:
31 (30 ILCS 805/8.21 new)
32 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
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1 and 8 of this Act, no reimbursement by the State is required
2 for the implementation of any mandate created by this
3 amendatory Act of 1997.
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.