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90_SB1369
5 ILCS 375/3 from Ch. 127, par. 523
5 ILCS 375/10 from Ch. 127, par. 530
40 ILCS 5/16-129.1 new
40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
40 ILCS 5/16-152 from Ch. 108 1/2, par. 16-152
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
Amends the Downstate Teacher Article of the Pension Code.
Increases the retirement formula to 2.2% of final average
salary for each year of service earned after June 30, 1998.
Allows members to elect to have the new rate apply to their
existing service, by making an additional contribution. Also
raises the rate to 2.3% for certain members who already have
30 years of service. Beginning July 1, 1998, requires school
districts and other employers to make an employer
contribution to the System. Increases the employee
contribution by 0.85% of salary, but provides for a refund of
the increase in certain cases. Amends the State Employees
Group Insurance Act of 1971. Requires certain retired State
employees who participate in the Teachers' Retirement System
and have less than 20 years of service (and their survivors)
to pay for a portion of the cost of their group insurance.
In certain definitions relating to eligibility to participate
in the State group insurance program, updates obsolete cross
references to certain State employees who participate in the
Teachers' Retirement System and adds to those references
certain employees of that System. Effective immediately.
LRB9011288EGfg
LRB9011288EGfg
1 AN ACT in relation to public employee benefits, amending
2 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 (2),
24 (3), or (5) (b) or (c) of Section 16-106, or Article 18 of
25 the Illinois Pension Code; (2) any person who was receiving
26 group insurance coverage under this Act as of March 31, 1978
27 by reason of his status as an annuitant, even though the
28 annuity 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, 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, and is eligible to participate in the basic program of
28 group health benefits provided for annuitants under this Act.
29 (b-7) "New TRS State annuitant" means a person who, on
30 or after July 1, 1998, becomes an annuitant, as defined in
31 subsection (b), by virtue of beginning to receive a
32 retirement annuity under Article 16 of the Illinois Pension
33 Code based on service as a teacher as defined in paragraph
34 (2), (3), or (5) of Section 16-106 of that Code, and is
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1 eligible to participate in the basic program of group health
2 benefits provided for annuitants under this Act.
3 (c) "Carrier" means (1) an insurance company, a
4 corporation organized under the Limited Health Service
5 Organization Act or the Voluntary Health Services Plan Act, a
6 partnership, or other nongovernmental organization, which is
7 authorized to do group life or group health insurance
8 business in Illinois, or (2) the State of Illinois as a
9 self-insurer.
10 (d) "Compensation" means salary or wages payable on a
11 regular payroll by the State Treasurer on a warrant of the
12 State Comptroller out of any State, trust or federal fund, or
13 by the Governor of the State through a disbursing officer of
14 the State out of a trust or out of federal funds, or by any
15 Department out of State, trust, federal or other funds held
16 by the State Treasurer or the Department, to any person for
17 personal services currently performed, and ordinary or
18 accidental disability benefits under Articles 2, 14, 15
19 (including ordinary or accidental disability benefits under
20 the optional retirement program established under Section
21 15-158.2), paragraphs (2), (3), or (5) (b) or (c) of Section
22 16-106, or Article 18 of the Illinois Pension Code, for
23 disability incurred after January 1, 1966, or benefits
24 payable under the Workers' Compensation or Occupational
25 Diseases Act or benefits payable under a sick pay plan
26 established in accordance with Section 36 of the State
27 Finance Act. "Compensation" also means salary or wages paid
28 to an employee of any qualified local government or qualified
29 rehabilitation facility or a qualified domestic violence
30 shelter or service.
31 (e) "Commission" means the State Employees Group
32 Insurance Advisory Commission authorized by this Act.
33 Commencing July 1, 1984, "Commission" as used in this Act
34 means the Illinois Economic and Fiscal Commission as
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1 established by the Legislative Commission Reorganization Act
2 of 1984.
3 (f) "Contributory", when referred to as contributory
4 coverage, shall mean optional coverages or benefits elected
5 by the member toward the cost of which such member makes
6 contribution, or which are funded in whole or in part through
7 the acceptance of a reduction in earnings or the foregoing of
8 an increase in earnings by an employee, as distinguished from
9 noncontributory coverage or benefits which are paid entirely
10 by the State of Illinois without reduction of the member's
11 salary.
12 (g) "Department" means any department, institution,
13 board, commission, officer, court or any agency of the State
14 government receiving appropriations and having power to
15 certify payrolls to the Comptroller authorizing payments of
16 salary and wages against such appropriations as are made by
17 the General Assembly from any State fund, or against trust
18 funds held by the State Treasurer and includes boards of
19 trustees of the retirement systems created by Articles 2, 14,
20 15, 16 and 18 of the Illinois Pension Code. "Department"
21 also includes the Illinois Comprehensive Health Insurance
22 Board, the Board of Examiners established under the Illinois
23 Public Accounting Act, and the Illinois Rural Bond Bank.
24 (h) "Dependent", when the term is used in the context of
25 the health and life plan, means a member's spouse and any
26 unmarried child (1) from birth to age 19 including an adopted
27 child, a child who lives with the member from the time of the
28 filing of a petition for adoption until entry of an order of
29 adoption, a stepchild or recognized child who lives with the
30 member in a parent-child relationship, or a child who lives
31 with the member if such member is a court appointed guardian
32 of the child, or (2) age 19 to 23 enrolled as a full-time
33 student in any accredited school, financially dependent upon
34 the member, and eligible as a dependent for Illinois State
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1 income tax purposes, or (3) age 19 or over who is mentally or
2 physically handicapped as defined in the Illinois Insurance
3 Code. For the health plan only, the term "dependent" also
4 includes any person enrolled prior to the effective date of
5 this Section who is dependent upon the member to the extent
6 that the member may claim such person as a dependent for
7 Illinois State income tax deduction purposes; no other such
8 person may be enrolled.
9 (i) "Director" means the Director of the Illinois
10 Department of Central Management Services.
11 (j) "Eligibility period" means the period of time a
12 member has to elect enrollment in programs or to select
13 benefits without regard to age, sex or health.
14 (k) "Employee" means and includes each officer or
15 employee in the service of a department who (1) receives his
16 compensation for service rendered to the department on a
17 warrant issued pursuant to a payroll certified by a
18 department or on a warrant or check issued and drawn by a
19 department upon a trust, federal or other fund or on a
20 warrant issued pursuant to a payroll certified by an elected
21 or duly appointed officer of the State or who receives
22 payment of the performance of personal services on a warrant
23 issued pursuant to a payroll certified by a Department and
24 drawn by the Comptroller upon the State Treasurer against
25 appropriations made by the General Assembly from any fund or
26 against trust funds held by the State Treasurer, and (2) is
27 employed full-time or part-time in a position normally
28 requiring actual performance of duty during not less than 1/2
29 of a normal work period, as established by the Director in
30 cooperation with each department, except that persons elected
31 by popular vote will be considered employees during the
32 entire term for which they are elected regardless of hours
33 devoted to the service of the State, and (3) except that
34 "employee" does not include any person who is not eligible by
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1 reason of such person's employment to participate in one of
2 the State retirement systems under Articles 2, 14, 15 (either
3 the regular Article 15 system or the optional retirement
4 program established under Section 15-158.2) or 18, or under
5 paragraph (2), (3), or (5) (b) or (c) of Section 16-106, of
6 the Illinois Pension Code, but such term does include persons
7 who are employed during the 6 month qualifying period under
8 Article 14 of the Illinois Pension Code. Such term also
9 includes any person who (1) after January 1, 1966, is
10 receiving ordinary or accidental disability benefits under
11 Articles 2, 14, 15 (including ordinary or accidental
12 disability benefits under the optional retirement program
13 established under Section 15-158.2), paragraphs (2), (3), or
14 (5) (b) or (c) of Section 16-106, or Article 18 of the
15 Illinois Pension Code, for disability incurred after January
16 1, 1966, (2) receives total permanent or total temporary
17 disability under the Workers' Compensation Act or
18 Occupational Disease Act as a result of injuries sustained or
19 illness contracted in the course of employment with the State
20 of Illinois, or (3) is not otherwise covered under this Act
21 and has retired as a participating member under Article 2 of
22 the Illinois Pension Code but is ineligible for the
23 retirement annuity under Section 2-119 of the Illinois
24 Pension Code. However, a person who satisfies the criteria
25 of the foregoing definition of "employee" except that such
26 person is made ineligible to participate in the State
27 Universities Retirement System by clause (4) of subsection
28 (a) of Section 15-107 of the Illinois Pension Code is also an
29 "employee" for the purposes of this Act. "Employee" also
30 includes any person receiving or eligible for benefits under
31 a sick pay plan established in accordance with Section 36 of
32 the State Finance Act. "Employee" also includes each officer
33 or employee in the service of a qualified local government,
34 including persons appointed as trustees of sanitary districts
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1 regardless of hours devoted to the service of the sanitary
2 district, and each employee in the service of a qualified
3 rehabilitation facility and each full-time employee in the
4 service of a qualified domestic violence shelter or service,
5 as determined according to rules promulgated by the Director.
6 (l) "Member" means an employee, annuitant, retired
7 employee or survivor.
8 (m) "Optional coverages or benefits" means those
9 coverages or benefits available to the member on his or her
10 voluntary election, and at his or her own expense.
11 (n) "Program" means the group life insurance, health
12 benefits and other employee benefits designed and contracted
13 for by the Director under this Act.
14 (o) "Health plan" means a self-insured health insurance
15 program offered by the State of Illinois for the purposes of
16 benefiting employees by means of providing, among others,
17 wellness programs, utilization reviews, second opinions and
18 medical fee reviews, as well as for paying for hospital and
19 medical care up to the maximum coverage provided by the plan,
20 to its members and their dependents.
21 (p) "Retired employee" means any person who would be an
22 annuitant as that term is defined herein but for the fact
23 that such person retired prior to January 1, 1966. Such term
24 also includes any person formerly employed by the University
25 of Illinois in the Cooperative Extension Service who would be
26 an annuitant but for the fact that such person was made
27 ineligible to participate in the State Universities
28 Retirement System by clause (4) of subsection (a) of Section
29 15-107 of the Illinois Pension Code.
30 (p-6) "New SURS retired employee" means a person who, on
31 or after January 1, 1998, becomes a retired employee, as
32 defined in subsection (p), by virtue of being a person
33 formerly employed by the University of Illinois in the
34 Cooperative Extension Service who would be an annuitant but
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1 for the fact that he or she was made ineligible to
2 participate in the State Universities Retirement System by
3 clause (4) of subsection (a) of Section 15-107 of the
4 Illinois Pension Code, and who is eligible to participate in
5 the basic program of group health benefits provided for
6 retired employees under this Act.
7 (q) "Survivor" means a person receiving an annuity as a
8 survivor of an employee or of an annuitant. "Survivor" also
9 includes: (1) the surviving dependent of a person who
10 satisfies the definition of "employee" except that such
11 person is made ineligible to participate in the State
12 Universities Retirement System by clause (4) of subsection
13 (a) of Section 15-107 of the Illinois Pension Code; and (2)
14 the surviving dependent of any person formerly employed by
15 the University of Illinois in the Cooperative Extension
16 Service who would be an annuitant except for the fact that
17 such person was made ineligible to participate in the State
18 Universities Retirement System by clause (4) of subsection
19 (a) of Section 15-107 of the Illinois Pension Code.
20 (q-5) "New SERS survivor" means a survivor, as defined
21 in subsection (q), whose annuity is paid under Article 14 of
22 the Illinois Pension Code and is based on the death of (i) an
23 employee whose death occurs on or after January 1, 1998, or
24 (ii) a new SERS annuitant as defined in subsection (b-5).
25 (q-6) "New SURS survivor" means a survivor, as defined
26 in subsection (q), whose annuity is paid under Article 15 of
27 the Illinois Pension Code and is based on the death of (i) an
28 employee whose death occurs on or after January 1, 1998, (ii)
29 a new SURS annuitant as defined in subsection (b-6), or (iii)
30 a new SURS retired employee as defined in subsection (p-6).
31 (q-7) "New TRS State survivor" means a survivor, as
32 defined in subsection (q), whose annuity is paid under
33 Article 16 of the Illinois Pension Code and is based on the
34 death of (i) an employee who is a teacher as defined in
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1 paragraph (2), (3), or (5) of Section 16-106 of that Code and
2 whose death occurs on or after July 1, 1998, or (ii) a new
3 TRS State annuitant as defined in subsection (b-7).
4 (r) "Medical services" means the services provided
5 within the scope of their licenses by practitioners in all
6 categories licensed under the Medical Practice Act of 1987.
7 (s) "Unit of local government" means any county,
8 municipality, township, school district, special district or
9 other unit, designated as a unit of local government by law,
10 which exercises limited governmental powers or powers in
11 respect to limited governmental subjects, any not-for-profit
12 association with a membership that primarily includes
13 townships and township officials, that has duties that
14 include provision of research service, dissemination of
15 information, and other acts for the purpose of improving
16 township government, and that is funded wholly or partly in
17 accordance with Section 85-15 of the Township Code; any
18 not-for-profit corporation or association, with a membership
19 consisting primarily of municipalities, that operates its own
20 utility system, and provides research, training,
21 dissemination of information, or other acts to promote
22 cooperation between and among municipalities that provide
23 utility services and for the advancement of the goals and
24 purposes of its membership; and the Illinois Association of
25 Park Districts. "Qualified local government" means a unit of
26 local government approved by the Director and participating
27 in a program created under subsection (i) of Section 10 of
28 this Act.
29 (t) "Qualified rehabilitation facility" means any
30 not-for-profit organization that is accredited by the
31 Commission on Accreditation of Rehabilitation Facilities or
32 certified by the Department of Human Services (as successor
33 to the Department of Mental Health and Developmental
34 Disabilities) to provide services to persons with
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1 disabilities and which receives funds from the State of
2 Illinois for providing those services, approved by the
3 Director and participating in a program created under
4 subsection (j) of Section 10 of this Act.
5 (u) "Qualified domestic violence shelter or service"
6 means any Illinois domestic violence shelter or service and
7 its administrative offices funded by the Department of Human
8 Services (as successor to the Illinois Department of Public
9 Aid), approved by the Director and participating in a program
10 created under subsection (k) of Section 10.
11 (v) "TRS benefit recipient" means a person who:
12 (1) is not a "member" as defined in this Section;
13 and
14 (2) is receiving a monthly benefit or retirement
15 annuity under Article 16 of the Illinois Pension Code;
16 and
17 (3) either (i) has at least 8 years of creditable
18 service under Article 16 of the Illinois Pension Code, or
19 (ii) was enrolled in the health insurance program offered
20 under that Article on January 1, 1996, or (iii) is the
21 survivor of a benefit recipient who had at least 8 years
22 of creditable service under Article 16 of the Illinois
23 Pension Code or was enrolled in the health insurance
24 program offered under that Article on the effective date
25 of this amendatory Act of 1995, or (iv) is a recipient or
26 survivor of a recipient of a disability benefit under
27 Article 16 of the Illinois Pension Code.
28 (w) "TRS dependent beneficiary" means a person who:
29 (1) is not a "member" or "dependent" as defined in
30 this Section; and
31 (2) is a TRS benefit recipient's: (A) spouse, (B)
32 dependent parent who is receiving at least half of his or
33 her support from the TRS benefit recipient, or (C)
34 unmarried natural or adopted child who is (i) under age
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1 19, or (ii) enrolled as a full-time student in an
2 accredited school, financially dependent upon the TRS
3 benefit recipient, eligible as a dependent for Illinois
4 State income tax purposes, and either is under age 24 or
5 was, on January 1, 1996, participating as a dependent
6 beneficiary in the health insurance program offered under
7 Article 16 of the Illinois Pension Code, or (iii) age 19
8 or over who is mentally or physically handicapped as
9 defined in the Illinois Insurance Code.
10 (x) "Military leave with pay and benefits" refers to
11 individuals in basic training for reserves, special/advanced
12 training, annual training, emergency call up, or activation
13 by the President of the United States with approved pay and
14 benefits.
15 (y) "Military leave without pay and benefits" refers to
16 individuals who enlist for active duty in a regular component
17 of the U.S. Armed Forces or other duty not specified or
18 authorized under military leave with pay and benefits.
19 (z) "Community college benefit recipient" means a person
20 who:
21 (1) is not a "member" as defined in this Section;
22 and
23 (2) is receiving a monthly survivor's annuity or
24 retirement annuity under Article 15 of the Illinois
25 Pension Code; and
26 (3) either (i) was a full-time employee of a
27 community college district or an association of community
28 college boards created under the Public Community College
29 Act (other than an employee whose last employer under
30 Article 15 of the Illinois Pension Code was a community
31 college district subject to Article VII of the Public
32 Community College Act) and was eligible to participate in
33 a group health benefit plan as an employee during the
34 time of employment with a community college district
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1 (other than a community college district subject to
2 Article VII of the Public Community College Act) or an
3 association of community college boards, or (ii) is the
4 survivor of a person described in item (i).
5 (aa) "Community college dependent beneficiary" means a
6 person who:
7 (1) is not a "member" or "dependent" as defined in
8 this Section; and
9 (2) is a community college benefit recipient's: (A)
10 spouse, (B) dependent parent who is receiving at least
11 half of his or her support from the community college
12 benefit recipient, or (C) unmarried natural or adopted
13 child who is (i) under age 19, or (ii) enrolled as a
14 full-time student in an accredited school, financially
15 dependent upon the community college benefit recipient,
16 eligible as a dependent for Illinois State income tax
17 purposes and under age 23, or (iii) age 19 or over and
18 mentally or physically handicapped as defined in the
19 Illinois Insurance Code.
20 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95;
21 89-76, eff. 7-1-95; 89-324, eff. 8-13-95; 89-430, eff.
22 12-15-95; 89-502, eff. 7-1-96; 89-507, eff. 7-1-97; 89-628,
23 eff. 8-9-96; 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
24 eff. 8-16-97; 90-497, eff. 8-18-97; 90-511, eff. 8-22-97;
25 revised 10-13-97.)
26 (5 ILCS 375/10) (from Ch. 127, par. 530)
27 Sec. 10. Payments by State; premiums.
28 (a) The State shall pay the cost of basic
29 non-contributory group life insurance and, subject to member
30 paid contributions set by the Department or required by this
31 Section, the basic program of group health benefits on each
32 eligible member, except a member, not otherwise covered by
33 this Act, who has retired as a participating member under
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1 Article 2 of the Illinois Pension Code but is ineligible for
2 the retirement annuity under Section 2-119 of the Illinois
3 Pension Code, and part of each eligible member's and retired
4 member's premiums for health insurance coverage for enrolled
5 dependents as provided by Section 9. The State shall pay the
6 cost of the basic program of group health benefits only after
7 benefits are reduced by the amount of benefits covered by
8 Medicare for all retired members and retired dependents aged
9 65 years or older who are entitled to benefits under Social
10 Security or the Railroad Retirement system or who had
11 sufficient Medicare-covered government employment except that
12 such reduction in benefits shall apply only to those retired
13 members or retired dependents who (1) first become eligible
14 for such Medicare coverage on or after July 1, 1992; or (2)
15 remain eligible for, but no longer receive Medicare coverage
16 which they had been receiving on or after July 1, 1992. The
17 Department may determine the aggregate level of the State's
18 contribution on the basis of actual cost of medical services
19 adjusted for age, sex or geographic or other demographic
20 characteristics which affect the costs of such programs.
21 (a-1) Beginning January 1, 1998, for each person who
22 becomes a new SERS annuitant and participates in the basic
23 program of group health benefits, the State shall contribute
24 toward the cost of the annuitant'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 creditable service upon which
27 the annuitant's retirement annuity is based, up to a maximum
28 of 100% for an annuitant with 20 or more years of creditable
29 service. The remainder of the cost of a new SERS annuitant's
30 coverage under the basic program of group health benefits
31 shall be the responsibility of the annuitant.
32 (a-2) Beginning January 1, 1998, for each person who
33 becomes a new SERS survivor 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 survivor'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 the deceased employee's or
4 deceased annuitant's creditable service in the State
5 Employees' Retirement System of Illinois on the date of
6 death, up to a maximum of 100% for a survivor of an employee
7 or annuitant with 20 or more years of creditable service.
8 The remainder of the cost of the new SERS survivor's coverage
9 under the basic program of group health benefits shall be the
10 responsibility of the survivor.
11 (a-3) Beginning January 1, 1998, for each person who
12 becomes a new SURS annuitant and participates in the basic
13 program of group health benefits, the State shall contribute
14 toward the cost of the annuitant's coverage under the basic
15 program of group health benefits an amount equal to 5% of
16 that cost for each full year of creditable service upon which
17 the annuitant's retirement annuity is based, up to a maximum
18 of 100% for an annuitant with 20 or more years of creditable
19 service. The remainder of the cost of a new SURS annuitant's
20 coverage under the basic program of group health benefits
21 shall be the responsibility of the annuitant.
22 (a-4) Beginning January 1, 1998, for each person who
23 becomes a new SURS retired employee and participates in the
24 basic program of group health benefits, the State shall
25 contribute toward the cost of the retired employee's coverage
26 under the basic program of group health benefits an amount
27 equal to 5% of that cost for each full year that the retired
28 employee was an employee as defined in Section 3, up to a
29 maximum of 100% for a retired employee who was an employee
30 for 20 or more years. The remainder of the cost of a new
31 SURS retired employee's coverage under the basic program of
32 group health benefits shall be the responsibility of the
33 retired employee.
34 (a-5) Beginning January 1, 1998, for each person who
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1 becomes a new SURS survivor and participates in the basic
2 program of group health benefits, the State shall contribute
3 toward the cost of the survivor's coverage under the basic
4 program of group health benefits an amount equal to 5% of
5 that cost for each full year of the deceased employee's or
6 deceased annuitant's creditable service in the State
7 Universities Employees' Retirement System of Illinois on the
8 date of death, up to a maximum of 100% for a survivor of an
9 employee or annuitant with 20 or more years of creditable
10 service. The remainder of the cost of the new SURS
11 survivor's coverage under the basic program of group health
12 benefits shall be the responsibility of the survivor.
13 (a-6) Beginning July 1, 1998, for each person who
14 becomes a new TRS State annuitant and participates in the
15 basic program of group health benefits, the State shall
16 contribute toward the cost of the annuitant's coverage under
17 the basic program of group health benefits an amount equal to
18 5% of that cost for each full year of creditable service as a
19 teacher as defined in paragraph (2), (3), or (5) of Section
20 16-106 of the Illinois Pension Code upon which the
21 annuitant's retirement annuity is based, up to a maximum of
22 100% for an annuitant with 20 or more years of such
23 creditable service. The remainder of the cost of a new TRS
24 State annuitant's coverage under the basic program of group
25 health benefits shall be the responsibility of the annuitant.
26 (a-7) Beginning July 1, 1998, for each person who
27 becomes a new TRS State survivor and participates in the
28 basic program of group health benefits, the State shall
29 contribute toward the cost of the survivor's coverage under
30 the basic program of group health benefits an amount equal to
31 5% of that cost for each full year of the deceased employee's
32 or deceased annuitant's creditable service as a teacher as
33 defined in paragraph (2), (3), or (5) of Section 16-106 of
34 the Illinois Pension Code on the date of death, up to a
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1 maximum of 100% for a survivor of an employee or annuitant
2 with 20 or more years of such creditable service. The
3 remainder of the cost of the new TRS State survivor's
4 coverage under the basic program of group health benefits
5 shall be the responsibility of the survivor.
6 (a-8) (a-6) A new SERS annuitant, new SERS survivor, new
7 SURS annuitant, new SURS retired employee, or new SURS
8 survivor, new TRS State annuitant, or new TRS State survivor
9 may waive or terminate coverage in the program of group
10 health benefits. Any such annuitant, survivor, or retired
11 employee who has waived or terminated coverage may enroll or
12 re-enroll in the program of group health benefits only during
13 the annual benefit choice period, as determined by the
14 Director; except that in the event of termination of coverage
15 due to nonpayment of premiums, the annuitant, survivor, or
16 retired employee may not re-enroll in the program.
17 (a-9) (a-7) No later than May 1 of each calendar year,
18 the Director of Central Management Services shall certify in
19 writing to the Executive Secretary of the State Employees'
20 Employee's Retirement System of Illinois the amounts of the
21 Medicare supplement health care premiums and the amounts of
22 the health care premiums for all other retirees who are not
23 Medicare eligible.
24 A separate calculation of the premiums based upon the
25 actual cost of each health care plan shall be so certified.
26 The Director of Central Management Services shall provide
27 to the Executive Secretary of the State Employees' Employee's
28 Retirement System of Illinois such information, statistics,
29 and other data as he or she he/she may require to review the
30 premium amounts certified by the Director of Central
31 Management Services.
32 (b) State employees who become eligible for this program
33 on or after January 1, 1980 in positions, normally requiring
34 actual performance of duty not less than 1/2 of a normal work
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1 period but not equal to that of a normal work period, shall
2 be given the option of participating in the available
3 program. If the employee elects coverage, the State shall
4 contribute on behalf of such employee to the cost of the
5 employee's benefit and any applicable dependent supplement,
6 that sum which bears the same percentage as that percentage
7 of time the employee regularly works when compared to normal
8 work period.
9 (c) The basic non-contributory coverage from the basic
10 program of group health benefits shall be continued for each
11 employee not in pay status or on active service by reason of
12 (1) leave of absence due to illness or injury, (2) authorized
13 educational leave of absence or sabbatical leave, or (3)
14 military leave with pay and benefits. This coverage shall
15 continue until expiration of authorized leave and return to
16 active service, but not to exceed 24 months for leaves under
17 item (1) or (2). This 24-month limitation and the requirement
18 of returning to active service shall not apply to persons
19 receiving ordinary or accidental disability benefits or
20 retirement benefits through the appropriate State retirement
21 system or benefits under the Workers' Compensation or
22 Occupational Disease Act.
23 (d) The basic group life insurance coverage shall
24 continue, with full State contribution, where such person is
25 (1) absent from active service by reason of disability
26 arising from any cause other than self-inflicted, (2) on
27 authorized educational leave of absence or sabbatical leave,
28 or (3) on military leave with pay and benefits.
29 (e) Where the person is in non-pay status for a period
30 in excess of 30 days or on leave of absence, other than by
31 reason of disability, educational or sabbatical leave, or
32 military leave with pay and benefits, such person may
33 continue coverage only by making personal payment equal to
34 the amount normally contributed by the State on such person's
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1 behalf. Such payments and coverage may be continued: (1)
2 until such time as the person returns to a status eligible
3 for coverage at State expense, but not to exceed 24 months,
4 (2) until such person's employment or annuitant status with
5 the State is terminated, or (3) for a maximum period of 4
6 years for members on military leave with pay and benefits and
7 military leave without pay and benefits (exclusive of any
8 additional service imposed pursuant to law).
9 (f) The Department shall establish by rule the extent
10 to which other employee benefits will continue for persons in
11 non-pay status or who are not in active service.
12 (g) The State shall not pay the cost of the basic
13 non-contributory group life insurance, program of health
14 benefits and other employee benefits for members who are
15 survivors as defined by paragraphs (1) and (2) of subsection
16 (q) of Section 3 of this Act. The costs of benefits for
17 these survivors shall be paid by the survivors or by the
18 University of Illinois Cooperative Extension Service, or any
19 combination thereof.
20 (h) Those persons occupying positions with any
21 department as a result of emergency appointments pursuant to
22 Section 8b.8 of the Personnel Code who are not considered
23 employees under this Act shall be given the option of
24 participating in the programs of group life insurance, health
25 benefits and other employee benefits. Such persons electing
26 coverage may participate only by making payment equal to the
27 amount normally contributed by the State for similarly
28 situated employees. Such amounts shall be determined by the
29 Director. Such payments and coverage may be continued until
30 such time as the person becomes an employee pursuant to this
31 Act or such person's appointment is terminated.
32 (i) Any unit of local government within the State of
33 Illinois may apply to the Director to have its employees,
34 annuitants, and their dependents provided group health
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1 coverage under this Act on a non-insured basis. To
2 participate, a unit of local government must agree to enroll
3 all of its employees, who may select coverage under either
4 the State group health insurance plan or a health maintenance
5 organization that has contracted with the State to be
6 available as a health care provider for employees as defined
7 in this Act. A unit of local government must remit the
8 entire cost of providing coverage under the State group
9 health insurance plan or, for coverage under a health
10 maintenance organization, an amount determined by the
11 Director based on an analysis of the sex, age, geographic
12 location, or other relevant demographic variables for its
13 employees, except that the unit of local government shall not
14 be required to enroll those of its employees who are covered
15 spouses or dependents under this plan or another group policy
16 or plan providing health benefits as long as (1) an
17 appropriate official from the unit of local government
18 attests that each employee not enrolled is a covered spouse
19 or dependent under this plan or another group policy or plan,
20 and (2) at least 85% of the employees are enrolled and the
21 unit of local government remits the entire cost of providing
22 coverage to those employees. Employees of a participating
23 unit of local government who are not enrolled due to coverage
24 under another group health policy or plan may enroll at a
25 later date subject to submission of satisfactory evidence of
26 insurability and provided that no benefits shall be payable
27 for services incurred during the first 6 months of coverage
28 to the extent the services are in connection with any
29 pre-existing condition. A participating unit of local
30 government may also elect to cover its annuitants. Dependent
31 coverage shall be offered on an optional basis, with the
32 costs paid by the unit of local government, its employees, or
33 some combination of the two as determined by the unit of
34 local government. The unit of local government shall be
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1 responsible for timely collection and transmission of
2 dependent premiums.
3 The Director shall annually determine monthly rates of
4 payment, subject to the following constraints:
5 (1) In the first year of coverage, the rates shall
6 be equal to the amount normally charged to State
7 employees for elected optional coverages or for enrolled
8 dependents coverages or other contributory coverages, or
9 contributed by the State for basic insurance coverages on
10 behalf of its employees, adjusted for differences between
11 State employees and employees of the local government in
12 age, sex, geographic location or other relevant
13 demographic variables, plus an amount sufficient to pay
14 for the additional administrative costs of providing
15 coverage to employees of the unit of local government and
16 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 unit of local
20 government.
21 In the case of coverage of local government employees
22 under a health maintenance organization, the Director shall
23 annually determine for each participating unit of local
24 government the maximum monthly amount the unit may contribute
25 toward that coverage, based on an analysis of (i) the age,
26 sex, geographic location, and other relevant demographic
27 variables of the unit's employees and (ii) the cost to cover
28 those employees under the State group health insurance plan.
29 The Director may similarly determine the maximum monthly
30 amount each unit of local government may contribute toward
31 coverage of its employees' dependents under a health
32 maintenance organization.
33 Monthly payments by the unit of local government or its
34 employees for group health insurance or health maintenance
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1 organization coverage shall be deposited in the Local
2 Government Health Insurance Reserve Fund. The Local
3 Government Health Insurance Reserve Fund shall be a
4 continuing fund not subject to fiscal year limitations. All
5 expenditures from this fund shall be used for payments for
6 health care benefits for local government and rehabilitation
7 facility employees, annuitants, and dependents, and to
8 reimburse the Department or its administrative service
9 organization for all expenses incurred in the administration
10 of benefits. No other State funds may be used for these
11 purposes.
12 A local government employer's participation or desire to
13 participate in a program created under this subsection shall
14 not limit that employer's duty to bargain with the
15 representative of any collective bargaining unit of its
16 employees.
17 (j) Any rehabilitation facility within the State of
18 Illinois may apply to the Director to have its employees,
19 annuitants, and their dependents provided group health
20 coverage under this Act on a non-insured basis. To
21 participate, a rehabilitation facility must agree to enroll
22 all of its employees and remit the entire cost of providing
23 such coverage for its employees, except that the
24 rehabilitation facility shall not be required to enroll those
25 of its employees who are covered spouses or dependents under
26 this plan or another group policy or plan providing health
27 benefits as long as (1) an appropriate official from the
28 rehabilitation facility attests that each employee not
29 enrolled is a covered spouse or dependent under this plan or
30 another group policy or plan, and (2) at least 85% of the
31 employees are enrolled and the rehabilitation facility remits
32 the entire cost of providing coverage to those employees.
33 Employees of a participating rehabilitation facility who are
34 not enrolled due to coverage under another group health
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1 policy or plan may enroll at a later date subject to
2 submission of satisfactory evidence of insurability and
3 provided that no benefits shall be payable for services
4 incurred during the first 6 months of coverage to the extent
5 the services are in connection with any pre-existing
6 condition. A participating rehabilitation facility may also
7 elect to cover its annuitants. Dependent coverage shall be
8 offered on an optional basis, with the costs paid by the
9 rehabilitation facility, its employees, or some combination
10 of the 2 as determined by the rehabilitation facility. The
11 rehabilitation facility shall be responsible for timely
12 collection and transmission of dependent premiums.
13 The Director shall annually determine quarterly rates of
14 payment, subject to the following constraints:
15 (1) In the first year of coverage, the rates shall
16 be equal to the amount normally charged to State
17 employees for elected optional coverages or for enrolled
18 dependents coverages or other contributory coverages on
19 behalf of its employees, adjusted for differences between
20 State employees and employees of the rehabilitation
21 facility in age, sex, geographic location or other
22 relevant demographic variables, plus an amount sufficient
23 to pay for the additional administrative costs of
24 providing coverage to employees of the rehabilitation
25 facility and their dependents.
26 (2) In subsequent years, a further adjustment shall
27 be made to reflect the actual prior years' claims
28 experience of the employees of the rehabilitation
29 facility.
30 Monthly payments by the rehabilitation facility or its
31 employees for group health insurance shall be deposited in
32 the Local Government Health Insurance Reserve Fund.
33 (k) Any domestic violence shelter or service within the
34 State of Illinois may apply to the Director to have its
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1 employees, annuitants, and their dependents provided group
2 health coverage under this Act on a non-insured basis. To
3 participate, a domestic violence shelter or service must
4 agree to enroll all of its employees and pay the entire cost
5 of providing such coverage for its employees. A
6 participating domestic violence shelter may also elect to
7 cover its annuitants. Dependent coverage shall be offered on
8 an optional basis, with employees, or some combination of the
9 2 as determined by the domestic violence shelter or service.
10 The domestic violence shelter or service shall be responsible
11 for timely collection and transmission of dependent premiums.
12 The Director shall annually determine quarterly rates of
13 payment, subject to the following constraints:
14 (1) In the first year of coverage, the rates shall
15 be equal to the amount normally charged to State
16 employees for elected optional coverages or for enrolled
17 dependents coverages or other contributory coverages on
18 behalf of its employees, adjusted for differences between
19 State employees and employees of the domestic violence
20 shelter or service in age, sex, geographic location or
21 other relevant demographic variables, plus an amount
22 sufficient to pay for the additional administrative costs
23 of providing coverage to employees of the domestic
24 violence shelter or service and their dependents.
25 (2) In subsequent years, a further adjustment shall
26 be made to reflect the actual prior years' claims
27 experience of the employees of the domestic violence
28 shelter or service.
29 (3) In no case shall the rate be less than the
30 amount normally charged to State employees or contributed
31 by the State on behalf of its employees.
32 Monthly payments by the domestic violence shelter or
33 service or its employees for group health insurance shall be
34 deposited in the Local Government Health Insurance Reserve
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1 Fund.
2 (l) A public community college or entity organized
3 pursuant to the Public Community College Act may apply to the
4 Director initially to have only annuitants not covered prior
5 to July 1, 1992 by the district's health plan provided health
6 coverage under this Act on a non-insured basis. The
7 community college must execute a 2-year contract to
8 participate in the Local Government Health Plan. Those
9 annuitants enrolled initially under this contract shall have
10 no benefits payable for services incurred during the first 6
11 months of coverage to the extent the services are in
12 connection with any pre-existing condition. Any annuitant
13 who may enroll after this initial enrollment period shall be
14 subject to submission of satisfactory evidence of
15 insurability and to the pre-existing conditions limitation.
16 The Director shall annually determine monthly rates of
17 payment subject to the following constraints: for those
18 community colleges with annuitants only enrolled, first year
19 rates shall be equal to the average cost to cover claims for
20 a State member adjusted for demographics, Medicare
21 participation, and other factors; and in the second year, a
22 further adjustment of rates shall be made to reflect the
23 actual first year's claims experience of the covered
24 annuitants.
25 (m) The Director shall adopt any rules deemed necessary
26 for implementation of this amendatory Act of 1989 (Public Act
27 86-978).
28 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
29 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff.
30 7-7-97; revised 1-13-98.)
31 Section 10. The Illinois Pension Code is amended by
32 changing Sections 16-133, 16-152, and 16-158 and adding
33 Section 16-129.1 as follows:
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1 (40 ILCS 5/16-129.1 new)
2 Sec. 16-129.1. Optional increase in retirement annuity.
3 (a) A member of the System may qualify for the augmented
4 rate under subdivision (a)(B)(1) of Section 16-133 for all
5 years of creditable service earned before July 1, 1998 by
6 making the optional contribution specified in subsection (b).
7 A member may not elect to qualify for the augmented rate for
8 only a portion of his or her creditable service earned before
9 July 1, 1998.
10 (b) The contribution shall be an amount equal to 0.85%
11 of the member's highest salary rate in the 4 consecutive
12 years of service immediately prior to the date of
13 application, multiplied by the number of years by which the
14 amount of creditable service earned by the member before July
15 1, 1998 exceeds the amount of creditable service earned by
16 the member after June 30, 1998; subject to a maximum
17 contribution of 17% of that salary rate.
18 The member shall pay to the System the amount of the
19 contribution as calculated at the time of application under
20 this Section. The amount of the contribution determined
21 under this subsection shall be recalculated at the time of
22 retirement, and if the System determines that the amount paid
23 by the member exceeds the recalculated amount, the System
24 shall refund the difference to the member with regular
25 interest from the date of payment to the date of refund.
26 The contribution required by this subsection shall be
27 paid in one of the following ways or in a combination of the
28 following ways that does not extend over more than 5 years:
29 (i) in a lump sum on or before the date of
30 retirement;
31 (ii) in substantially equal installments over a
32 period of time not to exceed 5 years, as a deduction from
33 salary in accordance with subsection (b) of Section
34 16-154;
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1 (iii) if the member becomes an annuitant before
2 June 30, 2003, in substantially equal monthly
3 installments over a 24-month period, by a deduction from
4 the annuitant's monthly benefit.
5 (c) If the member fails to make the full contribution
6 under this Section in a timely fashion, the payments made
7 under this Section shall be refunded to the member, without
8 interest. If the member dies before making the full
9 contribution, the payments made under this Section, together
10 with regular interest thereon, shall be refunded to the
11 member's estate.
12 (d) For purposes of this Section and subdivision
13 (a)(B)(1) of Section 16-133, optional creditable service
14 established by a member shall be deemed to have been earned
15 at the time of the employment or other qualifying event upon
16 which the service is based, rather than at the time the
17 credit was established in this System.
18 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
19 Sec. 16-133. Retirement annuity; amount.
20 (a) The amount of the retirement annuity shall be the
21 larger of the amounts determined under paragraphs (A) and (B)
22 below:
23 (A) An amount consisting of the sum of the
24 following:
25 (1) An amount that can be provided on an
26 actuarially equivalent basis by the member's
27 accumulated contributions at the time of retirement;
28 and
29 (2) The sum of (i) the amount that can be
30 provided on an actuarially equivalent basis by the
31 member's accumulated contributions representing
32 service prior to July 1, 1947, and (ii) the amount
33 that can be provided on an actuarially equivalent
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1 basis by the amount obtained by multiplying 1.4
2 times the member's accumulated contributions
3 covering service subsequent to June 30, 1947; and
4 (3) If there is prior service, 2 times the
5 amount that would have been determined under
6 subparagraph (2) of paragraph (A) above on account
7 of contributions which would have been made during
8 the period of prior service creditable to the member
9 had the System been in operation and had the member
10 made contributions at the contribution rate in
11 effect prior to July 1, 1947.
12 (B) An amount consisting of the greater of the
13 following:
14 (1) For creditable service earned before July
15 1, 1998 that has not been augmented under Section
16 16-129.1: 1.67% of final average salary for each of
17 the first 10 years of creditable service, 1.90% of
18 final average salary for each year in excess of 10
19 but not exceeding 20, 2.10% of final average salary
20 for each year in excess of 20 but not exceeding 30,
21 and 2.30% of final average salary for each year in
22 excess of 30; and
23 For creditable service earned on or after July
24 1, 1998 by a member who has at least 30 years of
25 creditable service on July 1, 1998 and who does not
26 elect to augment service under Section 16-129.1:
27 2.3% of final average salary for each year of
28 creditable service earned on or after July 1, 1998;
29 and
30 For all other creditable service: 2.2% of
31 final average salary for each year of creditable
32 service; or
33 (2) 1.5% 1 1/2% of final average salary for
34 each year of creditable service plus the sum $7.50
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1 for each of the first 20 years of creditable
2 service.
3 The amount of the retirement annuity determined under
4 this paragraph (B) shall be reduced by 1/2 of 1% for each
5 month that the member is less than age 60 at the time the
6 retirement annuity begins. However, this reduction shall
7 not apply (i) if the member has at least 35 years of
8 creditable service, or (ii) if the member retires on
9 account of disability under Section 16-149.2 of this
10 Article with at least 20 years of creditable service.
11 (b) For purposes of this Section, final average salary
12 shall be the average salary for the highest 4 consecutive
13 years within the last 10 years of creditable service as
14 determined under rules of the board. The minimum final
15 average salary shall be considered to be $2,400 per year.
16 In the determination of final average salary for members
17 other than elected officials and their appointees when such
18 appointees are allowed by statute, that part of a member's
19 salary for any year beginning after June 30, 1979 which
20 exceeds the member's annual full-time salary rate with the
21 same employer for the preceding year by more than 20% shall
22 be excluded.
23 (c) In determining the amount of the retirement annuity
24 under paragraph (B) of this Section, a fractional year shall
25 be granted proportional credit.
26 (d) The retirement annuity determined under paragraph
27 (B) of this Section shall be available only to members who
28 render teaching service after July 1, 1947 for which member
29 contributions are required, and to annuitants who re-enter
30 under the provisions of Section 16-150.
31 (e) The maximum retirement annuity provided under
32 paragraph (B) of this Section shall be 75% of final average
33 salary.
34 (Source: P.A. 86-273; 87-794; 87-1265.)
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1 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
2 Sec. 16-152. Contributions by members.
3 (a) Each member shall make contributions for membership
4 service to this System as follows:
5 (1) Effective July 1, 1998 1971, contributions of 7.35%
6 6 1/2% of salary towards the cost of the retirement annuity.
7 Such contributions shall be deemed "normal contributions".
8 (2) Effective July 1, 1969, contributions of 1/2 of 1%
9 of salary toward the cost of the automatic annual increase in
10 retirement annuity provided under Section 16-133.1.
11 (3) Effective July 24, 1959, contributions of 1% of
12 salary towards the cost of survivor benefits. Such
13 contributions shall not be credited to the individual account
14 of the member and shall not be subject to refund except as
15 provided under Section 16-143.2.
16 (b) The minimum required contribution for any year of
17 full-time teaching service shall be $192.
18 (c) Contributions shall not be required of any annuitant
19 receiving a retirement annuity who is given temporary
20 employment not exceeding that permitted under Section 16-118.
21 (d) A person who (i) was a member before July 1, 1998,
22 (ii) retires with more than 34 years of creditable service,
23 and (iii) does not elect to qualify for the augmented rate
24 under Section 16-129.1 shall be entitled, at the time of
25 retirement, to receive a partial refund of contributions made
26 under this Section for service occurring after the later of
27 June 30, 1998 or attainment of 34 years of creditable
28 service, in an amount equal to 0.85% of the salary upon which
29 those contributions were based.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
32 Sec. 16-158. Contributions by State and other employing
33 units.
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1 (a) The State shall make contributions to the System by
2 means of appropriations from the Common School Fund and other
3 State funds of amounts which, together with other employer
4 contributions, employee contributions, investment income, and
5 other income, will be sufficient to meet the cost of
6 maintaining and administering the System on a 90% funded
7 basis in accordance with actuarial recommendations.
8 The Board shall determine the amount of State
9 contributions required for each fiscal year on the basis of
10 the actuarial tables and other assumptions adopted by the
11 Board and the recommendations of the actuary, using the
12 formula in subsection (b-3).
13 (a-1) Annually, on or before November 15, the board
14 shall certify to the Governor the amount of the required
15 State contribution for the coming fiscal year. The
16 certification shall include a copy of the actuarial
17 recommendations upon which it is based.
18 (b) Through State fiscal year 1995, the State
19 contributions shall be paid to the System in accordance with
20 Section 18-7 of the School Code.
21 (b-1) Beginning in State fiscal year 1996, on the 15th
22 day of each month, or as soon thereafter as may be
23 practicable, the Board shall submit vouchers for payment of
24 State contributions to the System, in a total monthly amount
25 of one-twelfth of the required annual State contribution
26 certified under subsection (a-1). These vouchers shall be
27 paid by the State Comptroller and Treasurer by warrants drawn
28 on the funds appropriated to the System for that fiscal year.
29 If in any month the amount remaining unexpended from all
30 other appropriations to the System for the applicable fiscal
31 year (including the appropriations to the System under
32 Section 8.12 of the State Finance Act and Section 1 of the
33 State Pension Funds Continuing Appropriation Act) is less
34 than the amount lawfully vouchered under this subsection, the
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1 difference shall be paid from the Common School Fund under
2 the continuing appropriation authority provided in Section
3 1.1 of the State Pension Funds Continuing Appropriation Act.
4 (b-2) Allocations from the Common School Fund
5 apportioned to school districts not coming under this System
6 shall not be diminished or affected by the provisions of this
7 Article.
8 (b-3) For State fiscal years 2011 through 2045, the
9 minimum contribution to the System to be made by the State
10 for each fiscal year shall be an amount determined by the
11 System to be sufficient to bring the total assets of the
12 System up to 90% of the total actuarial liabilities of the
13 System by the end of State fiscal year 2045. In making these
14 determinations, the required State contribution shall be
15 calculated each year as a level percentage of payroll over
16 the years remaining to and including fiscal year 2045 and
17 shall be determined under the projected unit credit actuarial
18 cost method.
19 For State fiscal years 1996 through 2010, the State
20 contribution to the System, as a percentage of the applicable
21 employee payroll, shall be increased in equal annual
22 increments so that by State fiscal year 2011, the State is
23 contributing at the rate required under this Section; except
24 that in the following specified State fiscal years, the State
25 contribution to the System shall not be less than the
26 following indicated percentages of the applicable employee
27 payroll, even if the indicated percentage will produce a
28 State contribution in excess of the amount otherwise required
29 under this subsection and subsection (a), and notwithstanding
30 any contrary certification made under subsection (a-1) before
31 the effective date of this amendatory Act of 1998: 9.932% in
32 FY 1999; 10.632% in FY 2000; 11.332% in FY 2001; 12.022% in
33 FY 2002; 12.722% in FY 2003; 13.422% in FY 2004; 14.112% in
34 FY 2005; 14.812% in FY 2006; 15.512% in FY 2007; 16.202% in
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1 FY 2008; 16.902% in FY 2009; and 17.602% in FY 2010.
2 Beginning in State fiscal year 2046, the minimum State
3 contribution for each fiscal year shall be the amount needed
4 to maintain the total assets of the System at 90% of the
5 total actuarial liabilities of the System.
6 (c) Payment of the required State contributions and of
7 all pensions, retirement annuities, death benefits, refunds,
8 and other benefits granted under or assumed by this System,
9 and all expenses in connection with the administration and
10 operation thereof, are obligations of the State.
11 If members are paid from special trust or federal funds
12 which are administered by the employing unit, whether school
13 district or other unit, the employing unit shall pay to the
14 System from such funds the full accruing retirement costs
15 based upon that service, as determined by the System.
16 Employer contributions, based on salary paid to members from
17 federal funds, may be forwarded by the distributing agency of
18 the State of Illinois to the System prior to allocation, in
19 an amount determined in accordance with guidelines
20 established by such agency and the System.
21 (d) Effective July 1, 1986, any employer of a teacher as
22 defined in paragraph (8) of Section 16-106 shall pay the
23 employer's normal cost of benefits based upon the teacher's
24 service, in addition to employee contributions, as determined
25 by the System. Such employer contributions shall be
26 forwarded monthly in accordance with guidelines established
27 by the System.
28 However, with respect to benefits granted under Section
29 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
30 of Section 16-106, the employer's contribution shall be 12%
31 (rather than 20%) of the member's highest annual salary rate
32 for each year of creditable service granted, and the employer
33 shall also pay the required employee contribution on behalf
34 of the teacher. For the purposes of Sections 16-133.4 and
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1 16-133.5, a teacher as defined in paragraph (8) of Section
2 16-106 who is serving in that capacity while on leave of
3 absence from another employer under this Article shall not be
4 considered an employee of the employer from which the teacher
5 is on leave.
6 (e) Beginning July 1, 1998, every employer of a teacher
7 shall pay to the System an employer contribution computed as
8 follows:
9 (1) Beginning July 1, 1998 through June 30, 1999,
10 the employer contribution shall be equal to 0.3% of each
11 teacher's salary.
12 (2) Beginning July 1, 1999 through June 30, 2000,
13 the employer contribution shall be equal to 0.6% of each
14 teacher's salary.
15 (3) Beginning July 1, 2000 and thereafter, the
16 employer contribution shall be equal to 0.9% of each
17 teacher's salary.
18 The school district or other employing unit may pay these
19 employer contributions out of any source of funding available
20 for that purpose and shall forward the contributions to the
21 System on the schedule established for the payment of member
22 contributions.
23 These employer contributions are intended to offset a
24 portion of the cost to the System of the increases in
25 retirement benefits resulting from this amendatory Act of
26 1998.
27 (Source: P.A. 87-1265; 88-593, eff. 8-22-94.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.