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90_HB2388
5 ILCS 375/3 from Ch. 127, par. 523
5 ILCS 375/10 from Ch. 127, par. 530
40 ILCS 5/15-135.1 new
Amends the State Employees Group Insurance Act of 1971
and the Illinois Pension Code. Allows certain participants
in the State Universities Retirement System to elect to forgo
certain changes in the retirement annuity formula made by
Public Act 90-65 and thereby avoid the additional cost of
group health insurance imposed under that Public Act.
Eliminates provisions relating to "new SURS retired
employees". Also makes technical corrections. Effective
immediately.
LRB9007293EGfg
LRB9007293EGfg
1 AN ACT relating to members of the State Universities
2 Retirement System, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Employees Group Insurance Act of
6 1971 is amended by changing Sections 3 and 10 as follows:
7 (5 ILCS 375/3) (from Ch. 127, par. 523)
8 Sec. 3. Definitions. Unless the context otherwise
9 requires, the following words and phrases as used in this Act
10 shall have the following meanings. The Department may define
11 these and other words and phrases separately for the purpose
12 of implementing specific programs providing benefits under
13 this Act.
14 (a) "Administrative service organization" means any
15 person, firm or corporation experienced in the handling of
16 claims which is fully qualified, financially sound and
17 capable of meeting the service requirements of a contract of
18 administration executed with the Department.
19 (b) "Annuitant" means (1) an employee who retires, or
20 has retired, on or after January 1, 1966 on an immediate
21 annuity under the provisions of Articles 2, 14, 15 (including
22 an employee who has retired under the optional retirement
23 program established under Section 15-158.2), paragraphs (b)
24 or (c) of Section 16-106, or Article 18 of the Illinois
25 Pension Code; (2) any person who was receiving group
26 insurance coverage under this Act as of March 31, 1978 by
27 reason of his status as an annuitant, even though the annuity
28 in relation to which such coverage was provided is a
29 proportional annuity based on less than the minimum period of
30 service required for a retirement annuity in the system
31 involved; (3) any person not otherwise covered by this Act
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1 who has retired as a participating member under Article 2 of
2 the Illinois Pension Code but is ineligible for the
3 retirement annuity under Section 2-119 of the Illinois
4 Pension Code; (4) the spouse of any person who is receiving a
5 retirement annuity under Article 18 of the Illinois Pension
6 Code and who is covered under a group health insurance
7 program sponsored by a governmental employer other than the
8 State of Illinois and who has irrevocably elected to waive
9 his or her coverage under this Act and to have his or her
10 spouse considered as the "annuitant" under this Act and not
11 as a "dependent"; or (5) an employee who retires, or has
12 retired, from a qualified position, as determined according
13 to rules promulgated by the Director, under a qualified local
14 government or a qualified rehabilitation facility or a
15 qualified domestic violence shelter or service. (For
16 definition of "retired employee", see (p) post).
17 (b-5) "New SERS annuitant" means a person who, on or
18 after January 1, 1998, becomes an annuitant, as defined in
19 subsection (b), by virtue of beginning to receive a
20 retirement annuity under Article 14 of the Illinois Pension
21 Code, and is eligible to participate in the basic program of
22 group health benefits provided for annuitants under this Act.
23 (b-6) "New SURS annuitant" means a person who (1), on or
24 after January 1, 1998, becomes an annuitant, as defined in
25 subsection (b), by virtue of beginning to receive a
26 retirement annuity under Article 15 of the Illinois Pension
27 Code, (2) has not made the election authorized under Section
28 15-135.1 of the Illinois Pension Code, and (3) is eligible to
29 participate in the basic program of group health benefits
30 provided for annuitants under this Act.
31 (c) "Carrier" means (1) an insurance company, a
32 corporation organized under the Limited Health Service
33 Organization Act or the Voluntary Health Services Plan Act, a
34 partnership, or other nongovernmental organization, which is
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1 authorized to do group life or group health insurance
2 business in Illinois, or (2) the State of Illinois as a
3 self-insurer.
4 (d) "Compensation" means salary or wages payable on a
5 regular payroll by the State Treasurer on a warrant of the
6 State Comptroller out of any State, trust or federal fund, or
7 by the Governor of the State through a disbursing officer of
8 the State out of a trust or out of federal funds, or by any
9 Department out of State, trust, federal or other funds held
10 by the State Treasurer or the Department, to any person for
11 personal services currently performed, and ordinary or
12 accidental disability benefits under Articles 2, 14, 15
13 (including ordinary or accidental disability benefits under
14 the optional retirement program established under Section
15 15-158.2), paragraphs (b) or (c) of Section 16-106, or
16 Article 18 of the Illinois Pension Code, for disability
17 incurred after January 1, 1966, or benefits payable under the
18 Workers' Compensation or Occupational Diseases Act or
19 benefits payable under a sick pay plan established in
20 accordance with Section 36 of the State Finance Act.
21 "Compensation" also means salary or wages paid to an employee
22 of any qualified local government or qualified rehabilitation
23 facility or a qualified domestic violence shelter or service.
24 (e) "Commission" means the State Employees Group
25 Insurance Advisory Commission authorized by this Act.
26 Commencing July 1, 1984, "Commission" as used in this Act
27 means the Illinois Economic and Fiscal Commission as
28 established by the Legislative Commission Reorganization Act
29 of 1984.
30 (f) "Contributory", when referred to as contributory
31 coverage, shall mean optional coverages or benefits elected
32 by the member toward the cost of which such member makes
33 contribution, or which are funded in whole or in part through
34 the acceptance of a reduction in earnings or the foregoing of
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1 an increase in earnings by an employee, as distinguished from
2 noncontributory coverage or benefits which are paid entirely
3 by the State of Illinois without reduction of the member's
4 salary.
5 (g) "Department" means any department, institution,
6 board, commission, officer, court or any agency of the State
7 government receiving appropriations and having power to
8 certify payrolls to the Comptroller authorizing payments of
9 salary and wages against such appropriations as are made by
10 the General Assembly from any State fund, or against trust
11 funds held by the State Treasurer and includes boards of
12 trustees of the retirement systems created by Articles 2, 14,
13 15, 16 and 18 of the Illinois Pension Code. "Department"
14 also includes the Illinois Comprehensive Health Insurance
15 Board, the Board of Examiners established under the Illinois
16 Public Accounting Act, and the Illinois Rural Bond Bank.
17 (h) "Dependent", when the term is used in the context of
18 the health and life plan, means a member's spouse and any
19 unmarried child (1) from birth to age 19 including an adopted
20 child, a child who lives with the member from the time of the
21 filing of a petition for adoption until entry of an order of
22 adoption, a stepchild or recognized child who lives with the
23 member in a parent-child relationship, or a child who lives
24 with the member if such member is a court appointed guardian
25 of the child, or (2) age 19 to 23 enrolled as a full-time
26 student in any accredited school, financially dependent upon
27 the member, and eligible as a dependent for Illinois State
28 income tax purposes, or (3) age 19 or over who is mentally or
29 physically handicapped as defined in the Illinois Insurance
30 Code. For the health plan only, the term "dependent" also
31 includes any person enrolled prior to the effective date of
32 this Section who is dependent upon the member to the extent
33 that the member may claim such person as a dependent for
34 Illinois State income tax deduction purposes; no other such
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1 person may be enrolled.
2 (i) "Director" means the Director of the Illinois
3 Department of Central Management Services.
4 (j) "Eligibility period" means the period of time a
5 member has to elect enrollment in programs or to select
6 benefits without regard to age, sex or health.
7 (k) "Employee" means and includes each officer or
8 employee in the service of a department who (1) receives his
9 compensation for service rendered to the department on a
10 warrant issued pursuant to a payroll certified by a
11 department or on a warrant or check issued and drawn by a
12 department upon a trust, federal or other fund or on a
13 warrant issued pursuant to a payroll certified by an elected
14 or duly appointed officer of the State or who receives
15 payment of the performance of personal services on a warrant
16 issued pursuant to a payroll certified by a Department and
17 drawn by the Comptroller upon the State Treasurer against
18 appropriations made by the General Assembly from any fund or
19 against trust funds held by the State Treasurer, and (2) is
20 employed full-time or part-time in a position normally
21 requiring actual performance of duty during not less than 1/2
22 of a normal work period, as established by the Director in
23 cooperation with each department, except that persons elected
24 by popular vote will be considered employees during the
25 entire term for which they are elected regardless of hours
26 devoted to the service of the State, and (3) except that
27 "employee" does not include any person who is not eligible by
28 reason of such person's employment to participate in one of
29 the State retirement systems under Articles 2, 14, 15 (either
30 the regular Article 15 system or the optional retirement
31 program established under Section 15-158.2) or 18, or under
32 paragraph (b) or (c) of Section 16-106, of the Illinois
33 Pension Code, but such term does include persons who are
34 employed during the 6 month qualifying period under Article
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1 14 of the Illinois Pension Code. Such term also includes any
2 person who (1) after January 1, 1966, is receiving ordinary
3 or accidental disability benefits under Articles 2, 14, 15
4 (including ordinary or accidental disability benefits under
5 the optional retirement program established under Section
6 15-158.2), paragraphs (b) or (c) of Section 16-106, or
7 Article 18 of the Illinois Pension Code, for disability
8 incurred after January 1, 1966, (2) receives total permanent
9 or total temporary disability under the Workers' Compensation
10 Act or Occupational Disease Act as a result of injuries
11 sustained or illness contracted in the course of employment
12 with the State of Illinois, or (3) is not otherwise covered
13 under this Act and has retired as a participating member
14 under Article 2 of the Illinois Pension Code but is
15 ineligible for the retirement annuity under Section 2-119 of
16 the Illinois Pension Code. However, a person who satisfies
17 the criteria of the foregoing definition of "employee" except
18 that such person is made ineligible to participate in the
19 State Universities Retirement System by clause (4) of
20 subsection (a) of Section 15-107 of the Illinois Pension Code
21 is also an "employee" for the purposes of this Act.
22 "Employee" also includes any person receiving or eligible for
23 benefits under a sick pay plan established in accordance with
24 Section 36 of the State Finance Act. "Employee" also includes
25 each officer or employee in the service of a qualified local
26 government, including persons appointed as trustees of
27 sanitary districts regardless of hours devoted to the service
28 of the sanitary district, and each employee in the service of
29 a qualified rehabilitation facility and each full-time
30 employee in the service of a qualified domestic violence
31 shelter or service, as determined according to rules
32 promulgated by the Director.
33 (l) "Member" means an employee, annuitant, retired
34 employee or survivor.
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1 (m) "Optional coverages or benefits" means those
2 coverages or benefits available to the member on his or her
3 voluntary election, and at his or her own expense.
4 (n) "Program" means the group life insurance, health
5 benefits and other employee benefits designed and contracted
6 for by the Director under this Act.
7 (o) "Health plan" means a self-insured health insurance
8 program offered by the State of Illinois for the purposes of
9 benefiting employees by means of providing, among others,
10 wellness programs, utilization reviews, second opinions and
11 medical fee reviews, as well as for paying for hospital and
12 medical care up to the maximum coverage provided by the plan,
13 to its members and their dependents.
14 (p) "Retired employee" means any person who would be an
15 annuitant as that term is defined herein but for the fact
16 that such person retired prior to January 1, 1966. Such term
17 also includes any person formerly employed by the University
18 of Illinois in the Cooperative Extension Service who would be
19 an annuitant but for the fact that such person was made
20 ineligible to participate in the State Universities
21 Retirement System by clause (4) of subsection (a) of Section
22 15-107 of the Illinois Pension Code.
23 (p-6) "New SURS retired employee" means a person who, on
24 or after January 1, 1998, becomes a retired employee, as
25 defined in subsection (p), by virtue of being a person
26 formerly employed by the University of Illinois in the
27 Cooperative Extension Service who would be an annuitant but
28 for the fact that he or she was made ineligible to
29 participate in the State Universities Retirement System by
30 clause (4) of subsection (a) of Section 15-107 of the
31 Illinois Pension Code, and who is eligible to participate in
32 the basic program of group health benefits provided for
33 retired employees under this Act.
34 (q) "Survivor" means a person receiving an annuity as a
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1 survivor of an employee or of an annuitant. "Survivor" also
2 includes: (1) the surviving dependent of a person who
3 satisfies the definition of "employee" except that such
4 person is made ineligible to participate in the State
5 Universities Retirement System by clause (4) of subsection
6 (a) of Section 15-107 of the Illinois Pension Code; and (2)
7 the surviving dependent of any person formerly employed by
8 the University of Illinois in the Cooperative Extension
9 Service who would be an annuitant except for the fact that
10 such person was made ineligible to participate in the State
11 Universities Retirement System by clause (4) of subsection
12 (a) of Section 15-107 of the Illinois Pension Code.
13 (q-5) "New SERS survivor" means a survivor, as defined
14 in subsection (q), whose annuity is paid under Article 14 of
15 the Illinois Pension Code and is based on the death of (i) an
16 employee whose death occurs on or after January 1, 1998, or
17 (ii) a new SERS annuitant as defined in subsection (b-5).
18 (q-6) "New SURS survivor" means a survivor, as defined
19 in subsection (q), whose annuity is paid under Article 15 of
20 the Illinois Pension Code and is based on the death of (i) an
21 employee whose death occurs on or after January 1, 1998, or
22 (ii) a new SURS annuitant as defined in subsection (b-6), or
23 (iii) a new SURS retired employee as defined in subsection
24 (p-6).
25 (r) "Medical services" means the services provided
26 within the scope of their licenses by practitioners in all
27 categories licensed under the Medical Practice Act of 1987.
28 (s) "Unit of local government" means any county,
29 municipality, township, school district, special district or
30 other unit, designated as a unit of local government by law,
31 which exercises limited governmental powers or powers in
32 respect to limited governmental subjects, any not-for-profit
33 association with a membership that primarily includes
34 townships and township officials, that has duties that
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1 include provision of research service, dissemination of
2 information, and other acts for the purpose of improving
3 township government, and that is funded wholly or partly in
4 accordance with Section 85-15 of the Township Code; any
5 not-for-profit corporation or association, with a membership
6 consisting primarily of municipalities, that operates its own
7 utility system, and provides research, training,
8 dissemination of information, or other acts to promote
9 cooperation between and among municipalities that provide
10 utility services and for the advancement of the goals and
11 purposes of its membership; and the Illinois Association of
12 Park Districts. "Qualified local government" means a unit of
13 local government approved by the Director and participating
14 in a program created under subsection (i) of Section 10 of
15 this Act.
16 (t) "Qualified rehabilitation facility" means any
17 not-for-profit organization that is accredited by the
18 Commission on Accreditation of Rehabilitation Facilities or
19 certified by the Department of Human Services (as successor
20 to the Department of Mental Health and Developmental
21 Disabilities) to provide services to persons with
22 disabilities and which receives funds from the State of
23 Illinois for providing those services, approved by the
24 Director and participating in a program created under
25 subsection (j) of Section 10 of this Act.
26 (u) "Qualified domestic violence shelter or service"
27 means any Illinois domestic violence shelter or service and
28 its administrative offices funded by the Department of Human
29 Services (as successor to the Illinois Department of Public
30 Aid), approved by the Director and participating in a program
31 created under subsection (k) of Section 10.
32 (v) "TRS benefit recipient" means a person who:
33 (1) is not a "member" as defined in this Section;
34 and
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1 (2) is receiving a monthly benefit or retirement
2 annuity under Article 16 of the Illinois Pension Code;
3 and
4 (3) either (i) has at least 8 years of creditable
5 service under Article 16 of the Illinois Pension Code, or
6 (ii) was enrolled in the health insurance program offered
7 under that Article on January 1, 1996, or (iii) is the
8 survivor of a benefit recipient who had at least 8 years
9 of creditable service under Article 16 of the Illinois
10 Pension Code or was enrolled in the health insurance
11 program offered under that Article on the effective date
12 of this amendatory Act of 1995, or (iv) is a recipient or
13 survivor of a recipient of a disability benefit under
14 Article 16 of the Illinois Pension Code.
15 (w) "TRS dependent beneficiary" means a person who:
16 (1) is not a "member" or "dependent" as defined in
17 this Section; and
18 (2) is a TRS benefit recipient's: (A) spouse, (B)
19 dependent parent who is receiving at least half of his or
20 her support from the TRS benefit recipient, or (C)
21 unmarried natural or adopted child who is (i) under age
22 19, or (ii) enrolled as a full-time student in an
23 accredited school, financially dependent upon the TRS
24 benefit recipient, eligible as a dependent for Illinois
25 State income tax purposes, and either is under age 24 or
26 was, on January 1, 1996, participating as a dependent
27 beneficiary in the health insurance program offered under
28 Article 16 of the Illinois Pension Code, or (iii) age 19
29 or over who is mentally or physically handicapped as
30 defined in the Illinois Insurance Code.
31 (x) "Military leave with pay and benefits" refers to
32 individuals in basic training for reserves, special/advanced
33 training, annual training, emergency call up, or activation
34 by the President of the United States with approved pay and
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1 benefits.
2 (y) "Military leave without pay and benefits" refers to
3 individuals who enlist for active duty in a regular component
4 of the U.S. Armed Forces or other duty not specified or
5 authorized under military leave with pay and benefits.
6 (z) "Community college benefit recipient" means a person
7 who:
8 (1) is not a "member" as defined in this Section;
9 and
10 (2) is receiving a monthly survivor's annuity or
11 retirement annuity under Article 15 of the Illinois
12 Pension Code; and
13 (3) either (i) was a full-time employee of a
14 community college district or an association of community
15 college boards created under the Public Community College
16 Act (other than an employee whose last employer under
17 Article 15 of the Illinois Pension Code was a community
18 college district subject to Article VII of the Public
19 Community College Act) and was eligible to participate in
20 a group health benefit plan as an employee during the
21 time of employment with a community college district
22 (other than a community college district subject to
23 Article VII of the Public Community College Act) or an
24 association of community college boards, or (ii) is the
25 survivor of a person described in item (i).
26 (aa) "Community college dependent beneficiary" means a
27 person who:
28 (1) is not a "member" or "dependent" as defined in
29 this Section; and
30 (2) is a community college benefit recipient's: (A)
31 spouse, (B) dependent parent who is receiving at least
32 half of his or her support from the community college
33 benefit recipient, or (C) unmarried natural or adopted
34 child who is (i) under age 19, or (ii) enrolled as a
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1 full-time student in an accredited school, financially
2 dependent upon the community college benefit recipient,
3 eligible as a dependent for Illinois State income tax
4 purposes and under age 23, or (iii) age 19 or over and
5 mentally or physically handicapped as defined in the
6 Illinois Insurance Code.
7 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95;
8 89-76, eff. 7-1-95; 89-324, eff. 8-13-95; 89-430, eff.
9 12-15-95; 89-502, eff. 7-1-96; 89-507, eff. 7-1-97; 89-628,
10 eff. 8-9-96; 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
11 eff. 8-16-97; 90-497, eff. 8-18-97; 90-511, eff. 8-22-97;
12 revised 10-13-97.)
13 (5 ILCS 375/10) (from Ch. 127, par. 530)
14 Sec. 10. Payments by State; premiums.
15 (a) The State shall pay the cost of basic
16 non-contributory group life insurance and, subject to member
17 paid contributions set by the Department or required by this
18 Section, the basic program of group health benefits on each
19 eligible member, except a member, not otherwise covered by
20 this Act, who has retired as a participating member under
21 Article 2 of the Illinois Pension Code but is ineligible for
22 the retirement annuity under Section 2-119 of the Illinois
23 Pension Code, and part of each eligible member's and retired
24 member's premiums for health insurance coverage for enrolled
25 dependents as provided by Section 9. The State shall pay the
26 cost of the basic program of group health benefits only after
27 benefits are reduced by the amount of benefits covered by
28 Medicare for all retired members and retired dependents aged
29 65 years or older who are entitled to benefits under Social
30 Security or the Railroad Retirement system or who had
31 sufficient Medicare-covered government employment except that
32 such reduction in benefits shall apply only to those retired
33 members or retired dependents who (1) first become eligible
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1 for such Medicare coverage on or after July 1, 1992; or (2)
2 remain eligible for, but no longer receive Medicare coverage
3 which they had been receiving on or after July 1, 1992. The
4 Department may determine the aggregate level of the State's
5 contribution on the basis of actual cost of medical services
6 adjusted for age, sex or geographic or other demographic
7 characteristics which affect the costs of such programs.
8 (a-1) Beginning January 1, 1998, for each person who
9 becomes a new SERS annuitant and participates in the basic
10 program of group health benefits, the State shall contribute
11 toward the cost of the annuitant's coverage under the basic
12 program of group health benefits an amount equal to 5% of
13 that cost for each full year of creditable service upon which
14 the annuitant's retirement annuity is based, up to a maximum
15 of 100% for an annuitant with 20 or more years of creditable
16 service. The remainder of the cost of a new SERS annuitant's
17 coverage under the basic program of group health benefits
18 shall be the responsibility of the annuitant.
19 (a-2) Beginning January 1, 1998, for each person who
20 becomes a new SERS survivor and participates in the basic
21 program of group health benefits, the State shall contribute
22 toward the cost of the survivor's coverage under the basic
23 program of group health benefits an amount equal to 5% of
24 that cost for each full year of the deceased employee's or
25 deceased annuitant's creditable service in the State
26 Employees' Retirement System of Illinois on the date of
27 death, up to a maximum of 100% for a survivor of an employee
28 or annuitant with 20 or more years of creditable service.
29 The remainder of the cost of the new SERS survivor's coverage
30 under the basic program of group health benefits shall be the
31 responsibility of the survivor.
32 (a-3) Beginning January 1, 1998, for each person who
33 becomes a new SURS annuitant and participates in the basic
34 program of group health benefits, the State shall contribute
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1 toward the cost of the annuitant's coverage under the basic
2 program of group health benefits an amount equal to 5% of
3 that cost for each full year of creditable service upon which
4 the annuitant's retirement annuity is based, up to a maximum
5 of 100% for an annuitant with 20 or more years of creditable
6 service. The remainder of the cost of a new SURS annuitant's
7 coverage under the basic program of group health benefits
8 shall be the responsibility of the annuitant.
9 (a-4) (Blank). Beginning January 1, 1998, for each
10 person who becomes a new SURS retired employee and
11 participates in the basic program of group health benefits,
12 the State shall contribute toward the cost of the retired
13 employee's coverage under the basic program of group health
14 benefits an amount equal to 5% of that cost for each full
15 year that the retired employee was an employee as defined in
16 Section 3, up to a maximum of 100% for a retired employee who
17 was an employee for 20 or more years. The remainder of the
18 cost of a new SURS retired employee's coverage under the
19 basic program of group health benefits shall be the
20 responsibility of the retired employee.
21 (a-5) Beginning January 1, 1998, for each person who
22 becomes a new SURS survivor and participates in the basic
23 program of group health benefits, the State shall contribute
24 toward the cost of the survivor's coverage under the basic
25 program of group health benefits an amount equal to 5% of
26 that cost for each full year of the deceased employee's or
27 deceased annuitant's creditable service in the State
28 Universities Employees' Retirement System of Illinois on the
29 date of death, up to a maximum of 100% for a survivor of an
30 employee or annuitant with 20 or more years of creditable
31 service. The remainder of the cost of the new SURS
32 survivor's coverage under the basic program of group health
33 benefits shall be the responsibility of the survivor.
34 (a-6) A new SERS annuitant, new SERS survivor, new SURS
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1 annuitant, new SURS retired employee, or new SURS survivor
2 may waive or terminate coverage in the program of group
3 health benefits. Any such annuitant or, survivor, or retired
4 employee who has waived or terminated coverage may enroll or
5 re-enroll in the program of group health benefits only during
6 the annual benefit choice period, as determined by the
7 Director; except that in the event of termination of coverage
8 due to nonpayment of premiums, the annuitant or, survivor, or
9 retired employee may not re-enroll in the program.
10 (a-7) No later than May 1 of each calendar year, the
11 Director of Central Management Services shall certify in
12 writing to the Executive Secretary of the State Employee's
13 Retirement System the amounts of the Medicare supplement
14 health care premiums and the amounts of the health care
15 premiums for all other retirees who are not Medicare
16 eligible.
17 A separate calculation of the premiums based upon the
18 actual cost of each health care plan shall be so certified.
19 The Director of Central Management Services shall provide
20 to the Executive Secretary of the State Employee's Retirement
21 System such information, statistics, and other data as he or
22 she he/she may require to review the premium amounts
23 certified by the Director of Central Management Services.
24 (b) State employees who become eligible for this program
25 on or after January 1, 1980 in positions, normally requiring
26 actual performance of duty not less than 1/2 of a normal work
27 period but not equal to that of a normal work period, shall
28 be given the option of participating in the available
29 program. If the employee elects coverage, the State shall
30 contribute on behalf of such employee to the cost of the
31 employee's benefit and any applicable dependent supplement,
32 that sum which bears the same percentage as that percentage
33 of time the employee regularly works when compared to normal
34 work period.
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1 (c) The basic non-contributory coverage from the basic
2 program of group health benefits shall be continued for each
3 employee not in pay status or on active service by reason of
4 (1) leave of absence due to illness or injury, (2) authorized
5 educational leave of absence or sabbatical leave, or (3)
6 military leave with pay and benefits. This coverage shall
7 continue until expiration of authorized leave and return to
8 active service, but not to exceed 24 months for leaves under
9 item (1) or (2). This 24-month limitation and the requirement
10 of returning to active service shall not apply to persons
11 receiving ordinary or accidental disability benefits or
12 retirement benefits through the appropriate State retirement
13 system or benefits under the Workers' Compensation or
14 Occupational Disease Act.
15 (d) The basic group life insurance coverage shall
16 continue, with full State contribution, where such person is
17 (1) absent from active service by reason of disability
18 arising from any cause other than self-inflicted, (2) on
19 authorized educational leave of absence or sabbatical leave,
20 or (3) on military leave with pay and benefits.
21 (e) Where the person is in non-pay status for a period
22 in excess of 30 days or on leave of absence, other than by
23 reason of disability, educational or sabbatical leave, or
24 military leave with pay and benefits, such person may
25 continue coverage only by making personal payment equal to
26 the amount normally contributed by the State on such person's
27 behalf. Such payments and coverage may be continued: (1)
28 until such time as the person returns to a status eligible
29 for coverage at State expense, but not to exceed 24 months,
30 (2) until such person's employment or annuitant status with
31 the State is terminated, or (3) for a maximum period of 4
32 years for members on military leave with pay and benefits and
33 military leave without pay and benefits (exclusive of any
34 additional service imposed pursuant to law).
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1 (f) The Department shall establish by rule the extent
2 to which other employee benefits will continue for persons in
3 non-pay status or who are not in active service.
4 (g) The State shall not pay the cost of the basic
5 non-contributory group life insurance, program of health
6 benefits and other employee benefits for members who are
7 survivors as defined by paragraphs (1) and (2) of subsection
8 (q) of Section 3 of this Act. The costs of benefits for
9 these survivors shall be paid by the survivors or by the
10 University of Illinois Cooperative Extension Service, or any
11 combination thereof.
12 (h) Those persons occupying positions with any
13 department as a result of emergency appointments pursuant to
14 Section 8b.8 of the Personnel Code who are not considered
15 employees under this Act shall be given the option of
16 participating in the programs of group life insurance, health
17 benefits and other employee benefits. Such persons electing
18 coverage may participate only by making payment equal to the
19 amount normally contributed by the State for similarly
20 situated employees. Such amounts shall be determined by the
21 Director. Such payments and coverage may be continued until
22 such time as the person becomes an employee pursuant to this
23 Act or such person's appointment is terminated.
24 (i) Any unit of local government within the State of
25 Illinois may apply to the Director to have its employees,
26 annuitants, and their dependents provided group health
27 coverage under this Act on a non-insured basis. To
28 participate, a unit of local government must agree to enroll
29 all of its employees, who may select coverage under either
30 the State group health insurance plan or a health maintenance
31 organization that has contracted with the State to be
32 available as a health care provider for employees as defined
33 in this Act. A unit of local government must remit the
34 entire cost of providing coverage under the State group
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1 health insurance plan or, for coverage under a health
2 maintenance organization, an amount determined by the
3 Director based on an analysis of the sex, age, geographic
4 location, or other relevant demographic variables for its
5 employees, except that the unit of local government shall not
6 be required to enroll those of its employees who are covered
7 spouses or dependents under this plan or another group policy
8 or plan providing health benefits as long as (1) an
9 appropriate official from the unit of local government
10 attests that each employee not enrolled is a covered spouse
11 or dependent under this plan or another group policy or plan,
12 and (2) at least 85% of the employees are enrolled and the
13 unit of local government remits the entire cost of providing
14 coverage to those employees. Employees of a participating
15 unit of local government who are not enrolled due to coverage
16 under another group health policy or plan may enroll at a
17 later date subject to submission of satisfactory evidence of
18 insurability and provided that no benefits shall be payable
19 for services incurred during the first 6 months of coverage
20 to the extent the services are in connection with any
21 pre-existing condition. A participating unit of local
22 government may also elect to cover its annuitants. Dependent
23 coverage shall be offered on an optional basis, with the
24 costs paid by the unit of local government, its employees, or
25 some combination of the two as determined by the unit of
26 local government. The unit of local government shall be
27 responsible for timely collection and transmission of
28 dependent premiums.
29 The Director shall annually determine monthly rates of
30 payment, subject to the following constraints:
31 (1) In the first year of coverage, the rates shall
32 be equal to the amount normally charged to State
33 employees for elected optional coverages or for enrolled
34 dependents coverages or other contributory coverages, or
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1 contributed by the State for basic insurance coverages on
2 behalf of its employees, adjusted for differences between
3 State employees and employees of the local government in
4 age, sex, geographic location or other relevant
5 demographic variables, plus an amount sufficient to pay
6 for the additional administrative costs of providing
7 coverage to employees of the unit of local government and
8 their dependents.
9 (2) In subsequent years, a further adjustment shall
10 be made to reflect the actual prior years' claims
11 experience of the employees of the unit of local
12 government.
13 In the case of coverage of local government employees
14 under a health maintenance organization, the Director shall
15 annually determine for each participating unit of local
16 government the maximum monthly amount the unit may contribute
17 toward that coverage, based on an analysis of (i) the age,
18 sex, geographic location, and other relevant demographic
19 variables of the unit's employees and (ii) the cost to cover
20 those employees under the State group health insurance plan.
21 The Director may similarly determine the maximum monthly
22 amount each unit of local government may contribute toward
23 coverage of its employees' dependents under a health
24 maintenance organization.
25 Monthly payments by the unit of local government or its
26 employees for group health insurance or health maintenance
27 organization coverage shall be deposited in the Local
28 Government Health Insurance Reserve Fund. The Local
29 Government Health Insurance Reserve Fund shall be a
30 continuing fund not subject to fiscal year limitations. All
31 expenditures from this fund shall be used for payments for
32 health care benefits for local government and rehabilitation
33 facility employees, annuitants, and dependents, and to
34 reimburse the Department or its administrative service
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1 organization for all expenses incurred in the administration
2 of benefits. No other State funds may be used for these
3 purposes.
4 A local government employer's participation or desire to
5 participate in a program created under this subsection shall
6 not limit that employer's duty to bargain with the
7 representative of any collective bargaining unit of its
8 employees.
9 (j) Any rehabilitation facility within the State of
10 Illinois may apply to the Director to have its employees,
11 annuitants, and their dependents provided group health
12 coverage under this Act on a non-insured basis. To
13 participate, a rehabilitation facility must agree to enroll
14 all of its employees and remit the entire cost of providing
15 such coverage for its employees, except that the
16 rehabilitation facility shall not be required to enroll those
17 of its employees who are covered spouses or dependents under
18 this plan or another group policy or plan providing health
19 benefits as long as (1) an appropriate official from the
20 rehabilitation facility attests that each employee not
21 enrolled is a covered spouse or dependent under this plan or
22 another group policy or plan, and (2) at least 85% of the
23 employees are enrolled and the rehabilitation facility remits
24 the entire cost of providing coverage to those employees.
25 Employees of a participating rehabilitation facility who are
26 not enrolled due to coverage under another group health
27 policy or plan may enroll at a later date subject to
28 submission of satisfactory evidence of insurability and
29 provided that no benefits shall be payable for services
30 incurred during the first 6 months of coverage to the extent
31 the services are in connection with any pre-existing
32 condition. A participating rehabilitation facility may also
33 elect to cover its annuitants. Dependent coverage shall be
34 offered on an optional basis, with the costs paid by the
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1 rehabilitation facility, its employees, or some combination
2 of the 2 as determined by the rehabilitation facility. The
3 rehabilitation facility shall be responsible for timely
4 collection and transmission of dependent premiums.
5 The Director shall annually determine quarterly rates of
6 payment, subject to the following constraints:
7 (1) In the first year of coverage, the rates shall
8 be equal to the amount normally charged to State
9 employees for elected optional coverages or for enrolled
10 dependents coverages or other contributory coverages on
11 behalf of its employees, adjusted for differences between
12 State employees and employees of the rehabilitation
13 facility in age, sex, geographic location or other
14 relevant demographic variables, plus an amount sufficient
15 to pay for the additional administrative costs of
16 providing coverage to employees of the rehabilitation
17 facility and their dependents.
18 (2) In subsequent years, a further adjustment shall
19 be made to reflect the actual prior years' claims
20 experience of the employees of the rehabilitation
21 facility.
22 Monthly payments by the rehabilitation facility or its
23 employees for group health insurance shall be deposited in
24 the Local Government Health Insurance Reserve Fund.
25 (k) Any domestic violence shelter or service within the
26 State of Illinois may apply to the Director to have its
27 employees, annuitants, and their dependents provided group
28 health coverage under this Act on a non-insured basis. To
29 participate, a domestic violence shelter or service must
30 agree to enroll all of its employees and pay the entire cost
31 of providing such coverage for its employees. A
32 participating domestic violence shelter may also elect to
33 cover its annuitants. Dependent coverage shall be offered on
34 an optional basis, with employees, or some combination of the
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1 2 as determined by the domestic violence shelter or service.
2 The domestic violence shelter or service shall be responsible
3 for timely collection and transmission of dependent premiums.
4 The Director shall annually determine quarterly rates of
5 payment, subject to the following constraints:
6 (1) In the first year of coverage, the rates shall
7 be equal to the amount normally charged to State
8 employees for elected optional coverages or for enrolled
9 dependents coverages or other contributory coverages on
10 behalf of its employees, adjusted for differences between
11 State employees and employees of the domestic violence
12 shelter or service in age, sex, geographic location or
13 other relevant demographic variables, plus an amount
14 sufficient to pay for the additional administrative costs
15 of providing coverage to employees of the domestic
16 violence shelter or service and their dependents.
17 (2) In subsequent years, a further adjustment shall
18 be made to reflect the actual prior years' claims
19 experience of the employees of the domestic violence
20 shelter or service.
21 (3) In no case shall the rate be less than the
22 amount normally charged to State employees or contributed
23 by the State on behalf of its employees.
24 Monthly payments by the domestic violence shelter or
25 service or its employees for group health insurance shall be
26 deposited in the Local Government Health Insurance Reserve
27 Fund.
28 (l) A public community college or entity organized
29 pursuant to the Public Community College Act may apply to the
30 Director initially to have only annuitants not covered prior
31 to July 1, 1992 by the district's health plan provided health
32 coverage under this Act on a non-insured basis. The
33 community college must execute a 2-year contract to
34 participate in the Local Government Health Plan. Those
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1 annuitants enrolled initially under this contract shall have
2 no benefits payable for services incurred during the first 6
3 months of coverage to the extent the services are in
4 connection with any pre-existing condition. Any annuitant
5 who may enroll after this initial enrollment period shall be
6 subject to submission of satisfactory evidence of
7 insurability and to the pre-existing conditions limitation.
8 The Director shall annually determine monthly rates of
9 payment subject to the following constraints: for those
10 community colleges with annuitants only enrolled, first year
11 rates shall be equal to the average cost to cover claims for
12 a State member adjusted for demographics, Medicare
13 participation, and other factors; and in the second year, a
14 further adjustment of rates shall be made to reflect the
15 actual first year's claims experience of the covered
16 annuitants.
17 (m) The Director shall adopt any rules deemed necessary
18 for implementation of this amendatory Act of 1989 (Public Act
19 86-978).
20 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
21 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff.
22 7-7-97.)
23 Section 10. The Illinois Pension Code is amended by
24 adding Section 15-135.1 as follows:
25 (40 ILCS 5/15-135.1 new)
26 Sec. 15-135.1. Election to avoid application of P.A.
27 90-65.
28 (a) A participant who was an employee on July 7, 1997
29 and retires on or after January 1, 1998 may elect in writing
30 at the time of retirement to have the retirement annuity
31 calculated in accordance with the provisions of Sections
32 15-135 and 15-136 as they existed immediately prior to
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1 amendment by Public Act 90-65. This election, once made, is
2 irrevocable.
3 (b) The System shall promptly notify the Department of
4 Central Management Services of each election made under this
5 Section.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.