State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ House Amendment 002 ]


92_SB1174enr

 
SB1174 Enrolled                                LRB9207962TAtm

 1        AN ACT concerning government employee benefits.

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

 4        Section  5.   The  State Employees Group Insurance Act of
 5    1971 is amended by changing Sections 6.5 and 6.6 as follows:

 6        (5 ILCS 375/6.5)
 7        (Section scheduled to be repealed on July 1, 2004)
 8        Sec. 6.5. Health benefits for TRS benefit recipients  and
 9    TRS dependent beneficiaries.
10        (a)  Purpose.   It  is the purpose of this amendatory Act
11    of 1995 to transfer the  administration  of  the  program  of
12    health  benefits established for benefit recipients and their
13    dependent beneficiaries under  Article  16  of  the  Illinois
14    Pension   Code   to  the  Department  of  Central  Management
15    Services.
16        (b)  Transition provisions.  The Board of Trustees of the
17    Teachers' Retirement System shall continue to administer  the
18    health  benefit  program  established under Article 16 of the
19    Illinois Pension Code through December 31,  1995.   Beginning
20    January   1,  1996,  the  Department  of  Central  Management
21    Services shall be responsible for administering a program  of
22    health  benefits for TRS benefit recipients and TRS dependent
23    beneficiaries under this Section.  The Department of  Central
24    Management Services and the Teachers' Retirement System shall
25    cooperate   in  this  endeavor  and  shall  coordinate  their
26    activities  so  as  to  ensure  a   smooth   transition   and
27    uninterrupted health benefit coverage.
28        (c)  Eligibility.   All  persons who were enrolled in the
29    Article 16 program at the  time  of  the  transfer  shall  be
30    eligible to participate in the program established under this
31    Section  without  any  interruption  or  delay in coverage or
 
SB1174 Enrolled            -2-                 LRB9207962TAtm
 1    limitation   as   to   pre-existing    medical    conditions.
 2    Eligibility   to  participate  shall  be  determined  by  the
 3    Teachers' Retirement System.  Eligibility  information  shall
 4    be  communicated  to  the  Department  of  Central Management
 5    Services in a format acceptable to the Department.
 6        (d)  Coverage.  The level  of  health  benefits  provided
 7    under  this Section shall be similar to the level of benefits
 8    provided by the program previously established under  Article
 9    16 of the Illinois Pension Code.
10        Group  life  insurance  benefits  are not included in the
11    benefits to be provided to TRS  benefit  recipients  and  TRS
12    dependent beneficiaries under this Act.
13        The  program  of  health  benefits under this Section may
14    include any or all of the benefit limitations, including  but
15    not  limited  to a reduction in benefits based on eligibility
16    for  federal  medicare  benefits,  that  are  provided  under
17    subsection (a) of Section 6 of  this  Act  for  other  health
18    benefit programs under this Act.
19        (e)  Insurance  rates  and  premiums.  The Director shall
20    determine the insurance rates and premiums  for  TRS  benefit
21    recipients and TRS dependent beneficiaries, and shall present
22    to  the Teachers' Retirement System of the State of Illinois,
23    by  April  15  of  each  calendar  year,   the   rate-setting
24    methodology  (including but not limited to utilization levels
25    and costs) used to determine the amount of  the  health  care
26    premiums.
27        For  Fiscal  Year 1996, the premium shall be equal to the
28    premium actually charged in Fiscal Year 1995;. in  subsequent
29    years,  the  premium  shall  never  be lower than the premium
30    charged in Fiscal Year  1995.   For  Fiscal  Year  2003,  the
31    premium shall not exceed 110% of the premium actually charged
32    in Fiscal Year 2002.  For Fiscal Year 2004, the premium shall
33    not  exceed  112%  of  the premium actually charged in Fiscal
34    Year 2003.
 
SB1174 Enrolled            -3-                 LRB9207962TAtm
 1        Rates and premiums may  be  based  in  part  on  age  and
 2    eligibility for federal medicare coverage.
 3        The  cost  of  health benefits under the program shall be
 4    paid as follows:
 5             (1)  For a TRS benefit recipient selecting a managed
 6        care program, up to 75% of the total insurance rate shall
 7        be paid from the Teacher Health Insurance Security Fund.
 8             (2)  For a TRS benefit recipient selecting the major
 9        medical  coverage  program,  up  to  50%  of  the   total
10        insurance  rate  shall  be  paid  from the Teacher Health
11        Insurance Security Fund if  a  managed  care  program  is
12        accessible,  as  determined  by  the Teachers' Retirement
13        System.
14             (3)  For a TRS benefit recipient selecting the major
15        medical  coverage  program,  up  to  75%  of  the   total
16        insurance  rate  shall  be  paid  from the Teacher Health
17        Insurance Security Fund if a managed care program is  not
18        accessible,  as  determined  by  the Teachers' Retirement
19        System.
20             (4)  The balance of the rate of insurance, including
21        the entire premium of  any  coverage  for  TRS  dependent
22        beneficiaries  that  has  been  elected, shall be paid by
23        deductions authorized by the TRS benefit recipient to  be
24        withheld  from  his  or  her  monthly  annuity or benefit
25        payment from the Teachers' Retirement System; except that
26        (i) if the balance of the cost of  coverage  exceeds  the
27        amount  of  the  monthly  annuity or benefit payment, the
28        difference  shall  be  paid  directly  to  the  Teachers'
29        Retirement System by the TRS benefit recipient, and  (ii)
30        all  or  part of the balance of the cost of coverage may,
31        at the school  board's option, be paid to  the  Teachers'
32        Retirement  System  by  the  school  board  of the school
33        district from which the TRS benefit recipient retired, in
34        accordance with Section 10-22.3b of the School Code.  The
 
SB1174 Enrolled            -4-                 LRB9207962TAtm
 1        Teachers' Retirement System shall  promptly  deposit  all
 2        moneys  withheld  by or paid to it under this subdivision
 3        (e)(4) into the Teacher Health Insurance  Security  Fund.
 4        These  moneys  shall  not  be  considered  assets  of the
 5        Retirement System.
 6        (f)  Financing.  Beginning July  1,  1995,  all  revenues
 7    arising   from  the  administration  of  the  health  benefit
 8    programs established under Article 16 of the Illinois Pension
 9    Code or this Section shall  be  deposited  into  the  Teacher
10    Health  Insurance Security Fund, which is hereby created as a
11    nonappropriated trust fund  to  be  held  outside  the  State
12    Treasury,   with  the  State  Treasurer  as  custodian.   Any
13    interest earned on moneys in  the  Teacher  Health  Insurance
14    Security Fund shall be deposited into the Fund.
15        Moneys  in  the  Teacher  Health  Insurance Security Fund
16    shall be used only to pay the costs  of  the  health  benefit
17    program  established under this Section, including associated
18    administrative costs,  and  the  costs  associated  with  the
19    health  benefit  program  established under Article 16 of the
20    Illinois  Pension  Code,  as  authorized  in  this   Section.
21    Beginning  July 1, 1995, the Department of Central Management
22    Services  may  make  expenditures  from  the  Teacher  Health
23    Insurance Security Fund for those costs.
24        After other funds authorized for the payment of the costs
25    of the health benefit program established under Article 16 of
26    the Illinois Pension Code are exhausted and until January  1,
27    1996  (or  such  later  date  as  may  be  agreed upon by the
28    Director of Central Management Services and the Secretary  of
29    the  Teachers'  Retirement  System),  the  Secretary  of  the
30    Teachers'  Retirement  System  may make expenditures from the
31    Teacher Health Insurance Security Fund as necessary to pay up
32    to 75% of the cost of providing health coverage  to  eligible
33    benefit  recipients  (as  defined  in  Sections  16-153.1 and
34    16-153.3 of the Illinois Pension Code) who  are  enrolled  in
 
SB1174 Enrolled            -5-                 LRB9207962TAtm
 1    the  Article  16 health benefit program and to facilitate the
 2    transfer of administration of the health benefit  program  to
 3    the Department of Central Management Services.
 4        (g)  Contract   for  benefits.   The  Director  shall  by
 5    contract, self-insurance, or  otherwise  make  available  the
 6    program  of  health  benefits  for TRS benefit recipients and
 7    their TRS dependent beneficiaries that  is  provided  for  in
 8    this  Section.   The  contract  or  other arrangement for the
 9    provision of these health benefits shall be on  terms  deemed
10    by  the  Director  to be in the best interest of the State of
11    Illinois and the TRS benefit recipients  based  on,  but  not
12    limited  to,  such  criteria  as administrative cost, service
13    capabilities of the carrier  or  other  contractor,  and  the
14    costs of the benefits.
15        (h)  Continuation  and termination of program.  It is the
16    intention of the General Assembly that the program of  health
17    benefits  provided  under  this  Section  be maintained on an
18    ongoing, affordable basis through June 30, 2004.  The program
19    of health benefits provided under this Section is  terminated
20    on July 1, 2004.
21        The  program  of  health  benefits  provided  under  this
22    Section may be amended by the State and is not intended to be
23    a  pension  or retirement benefit subject to protection under
24    Article XIII, Section 5 of the Illinois Constitution.
25        (i)  Repeal.  This Section is repealed on July 1, 2004.
26    (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)

27        (5 ILCS 375/6.6)
28        (Section scheduled to be repealed on July 1, 2004)
29        Sec. 6.6. Contributions to the Teacher  Health  Insurance
30    Security Fund.
31        (a)  Beginning  July  1, 1995, all active contributors of
32    the Teachers' Retirement System (established under Article 16
33    of the Illinois Pension Code) who  are  not  employees  of  a
 
SB1174 Enrolled            -6-                 LRB9207962TAtm
 1    department  as  defined  in  Section 3 of this Act shall make
 2    contributions toward  the  cost  of  annuitant  and  survivor
 3    health   benefits.   These  contributions  shall  be  at  the
 4    following rates: until January  1,  2002,  rate  of  0.5%  of
 5    salary; beginning January 1, 2002, 0.65% of salary; beginning
 6    July 1, 2003, 0.75% of salary.
 7        These contributions shall be deducted by the employer and
 8    paid  to  the  System  as service agent for the Department of
 9    Central Management Services.  The System  may  use  the  same
10    processes  for  collecting the contributions required by this
11    subsection that it uses  to  collect  contributions  received
12    from  school  districts  and  other  covered  employers under
13    Sections 16-154 and 16-155 of the Illinois Pension Code.
14        An employer may agree to pick up or pay the contributions
15    required under this subsection on behalf of the teacher; such
16    contributions shall be deemed to have to have  been  paid  by
17    the teacher.  Beginning January 1, 2002, if the employer does
18    not  directly  pay the required member contribution, then the
19    employer shall reduce the member's salary by an amount  equal
20    to   the   required  contribution  and  shall  then  pay  the
21    contribution on behalf of the member.  This  reduction  shall
22    not change the amounts reported as creditable earnings to the
23    Teachers' Retirement System.
24        A  person  who  purchases  optional  service credit under
25    Article 16 of the Illinois Pension Code for  a  period  after
26    June  30,  1995  must  also  make  a  contribution under this
27    subsection for that optional credit, at the rate provided  in
28    subsection  (a),  based  on  of  0.5%  of  the salary used in
29    computing the optional service credit, plus interest on  this
30    employee  contribution.  This contribution shall be collected
31    by the System as service agent for the Department of  Central
32    Management  Services.   The  contribution required under this
33    subsection for the optional service credit must  be  paid  in
34    full before any annuity based on that credit begins.
 
SB1174 Enrolled            -7-                 LRB9207962TAtm
 1        (a-5)  Beginning  January  1,  2002,  every employer of a
 2    teacher (other than an  employer  that  is  a  department  as
 3    defined  in  Section  3  of  this  Act) shall pay an employer
 4    contribution toward the cost of annuitant and survivor health
 5    benefits.  These contributions shall be computed as follows:
 6             (1)  Beginning January  1,  2002  through  June  30,
 7        2003, the employer contribution shall be equal to 0.4% of
 8        each teacher's salary.
 9             (2)  Beginning    July   1,   2003,   the   employer
10        contribution shall be equal to  0.5%  of  each  teacher's
11        salary.
12        These  contributions shall be paid by the employer to the
13    System  as  service  agent  for  the  Department  of  Central
14    Management Services.  The System may use the  same  processes
15    for  collecting the contributions required by this subsection
16    that it uses to collect contributions  received  from  school
17    districts  and  other  covered  employers  under the Illinois
18    Pension Code.
19        The school district or other employing unit may pay these
20    employer contributions out of any source of funding available
21    for that purpose and shall forward the contributions  to  the
22    System  on the schedule established for the payment of member
23    contributions.
24        (b)  The  Teachers'  Retirement  System  shall   promptly
25    deposit all moneys collected under subsections subsection (a)
26    and  (a-5)  of this Section into the Teacher Health Insurance
27    Security Fund created in Section 6.5 of this Act.  The moneys
28    collected under this Section  shall  be  used  only  for  the
29    purposes  authorized in Section 6.5 of this Act and shall not
30    be considered  to  be  assets  of  the  Teachers'  Retirement
31    System.   Contributions  made  under  this  Section  are  not
32    transferable to other pension funds or retirement systems and
33    are not refundable upon termination of service.
34        (c)  On  or before November 15 of each year, the Board of
 
SB1174 Enrolled            -8-                 LRB9207962TAtm
 1    Trustees of the Teachers' Retirement System shall certify  to
 2    the  Governor,  the  Director of Central Management Services,
 3    and the State Comptroller its estimate of the total amount of
 4    contributions to be paid under subsection (a) of this Section
 5    6.6 for the next fiscal year.  The amount certified shall  be
 6    decreased  or  increased  each  year  by  the amount that the
 7    actual active teacher contributions either fell short  of  or
 8    exceeded  the  estimate  used  by  the  Board  in  making the
 9    certification   for   the   previous   fiscal   year.     The
10    certification  shall  include  a  detailed explanation of the
11    methods  and  information  that  the  Board  relied  upon  in
12    preparing its  estimate.   As  soon  as  possible  after  the
13    effective  date  of  this  amendatory Act of the 92nd General
14    Assembly Section, the Board shall recalculate  and  recertify
15    its  certifications for fiscal years 2002 and 2003 submit its
16    estimate for fiscal year 1996.
17        (d)  Beginning in fiscal year 1996, on the first  day  of
18    each  month,  or  as soon thereafter as may be practical, the
19    State Treasurer and the State Comptroller shall transfer from
20    the General Revenue Fund  to  the  Teacher  Health  Insurance
21    Security Fund 1/12 of the annual amount appropriated for that
22    fiscal  year  to  the  State Comptroller for deposit into the
23    Teacher Health Insurance Security Fund under Section  1.3  of
24    the State Pension Funds Continuing Appropriation Act.
25        (e)  Except  where  otherwise  specified in this Section,
26    the definitions that apply to  Article  16  of  the  Illinois
27    Pension Code apply to this Section.
28        (f)  This Section is repealed on July 1, 2004.
29    (Source:  P.A.  89-21,  eff.  6-21-95;  89-25,  eff. 6-21-95;
30    90-448, eff. 8-16-97.)

31        Section  10.   The  Department  of   Central   Management
32    Services  Law of the Civil Administrative Code of Illinois is
33    amended by adding Section 405-22 as follows:
 
SB1174 Enrolled            -9-                 LRB9207962TAtm
 1        (20 ILCS 405/405-22 new)
 2        (Section scheduled to be repealed on July 1, 2002)
 3        Sec.  405-22.  Teacher  Health  Insurance  Funding   Task
 4    Force.
 5        (a)  A  Teacher  Health  Insurance  Funding Task Force is
 6    hereby created within the Department  of  Central  Management
 7    Services.   The  Task  Force  shall  consist  of  23  members
 8    appointed as follows:
 9             (1)  Three members appointed by the President of the
10        Senate.
11             (2)  Three  members appointed by the Minority Leader
12        of the Senate.
13             (3)  Three members appointed by the Speaker  of  the
14        House of Representatives.
15             (4)  Three  members appointed by the Minority Leader
16        of the House of Representatives.
17             (5)  One member appointed by  the  Illinois  Retired
18        Teachers Association.
19             (6)  One  member appointed by the Illinois Education
20        Association.
21             (7)  One member appointed by the Illinois Federation
22        of Teachers.
23             (8)  One   member   appointed   by   the    Illinois
24        Association of School Boards.
25             (9)  One    member   appointed   by   the   Illinois
26        Association of School Administrators.
27             (10)  One   member   appointed   by   the   Illinois
28        Association of School Business Officials.
29             (11)  Three  members  appointed  by  the   Governor,
30        including   one  who  has  experience  in  the  insurance
31        industry.
32             (12)  The Director of Central  Management  Services,
33        ex officio, or a person designated by the Director.
34             (13)  The   Executive   Director  of  the  Teachers'
 
SB1174 Enrolled            -10-                LRB9207962TAtm
 1        Retirement System of Illinois, ex officio,  or  a  person
 2        designated by the Executive Director.
 3        Entities  making appointments shall do so by filing their
 4    respective designations, in writing,  with  the  Director  of
 5    Central Management Services.
 6        One  of the members appointed by the Governor shall serve
 7    as the Chair of the Task Force.
 8        (b)  The Task Force shall convene on December 1, 2001 and
 9    thereafter meet at the call of the  chair.   Members  of  the
10    Task Force shall not be compensated for their service.
11        (c)  The  Task  Force  shall  study  the  funding  of the
12    Teacher Health Insurance Security Fund and the health benefit
13    programs that receive funding from that Fund.
14        The  Task   Force   shall   report   its   findings   and
15    recommendations  to  the Governor and the General Assembly on
16    or before April 1, 2002.
17        (d)  The Task Force is  abolished  and  this  Section  is
18    repealed on July 1, 2002.

19        Section 15.  The State Finance Act is amended by changing
20    Section 8g as follows:

21        (30 ILCS 105/8g)
22        Sec. 8g. Transfers from General Revenue Fund.
23        (a)  In  addition  to  any  other  transfers  that may be
24    provided for by law, as soon as may be  practical  after  the
25    effective  date  of  this  amendatory Act of the 91st General
26    Assembly, the State Comptroller shall direct  and  the  State
27    Treasurer  shall  transfer  the  sum  of $10,000,000 from the
28    General Revenue Fund to the Motor Vehicle License Plate  Fund
29    created by Senate Bill 1028 of the 91st General Assembly.
30        (b)  In  addition  to  any  other  transfers  that may be
31    provided for by law, as soon as may be  practical  after  the
32    effective  date  of  this  amendatory Act of the 91st General
 
SB1174 Enrolled            -11-                LRB9207962TAtm
 1    Assembly, the State Comptroller shall direct  and  the  State
 2    Treasurer  shall  transfer  the  sum  of $25,000,000 from the
 3    General Revenue Fund to the Fund for Illinois' Future created
 4    by Senate Bill 1066 of the 91st General Assembly.
 5        (c)  In addition to  any  other  transfers  that  may  be
 6    provided  for  by  law,  on  August  30 of each fiscal year's
 7    license period, the Illinois Liquor Control Commission  shall
 8    direct  and  the  State Comptroller and State Treasurer shall
 9    transfer  from  the  General  Revenue  Fund  to   the   Youth
10    Alcoholism  and  Substance  Abuse  Prevention  Fund an amount
11    equal to the number of retail liquor licenses issued for that
12    fiscal year multiplied by $50.
13        (d)  The payments to programs required  under  subsection
14    (d)  of Section 28.1 of the Horse Racing Act of 1975 shall be
15    made, pursuant  to  appropriation,  from  the  special  funds
16    referred  to in the statutes cited in that subsection, rather
17    than directly from the General Revenue Fund.
18        Beginning January 1, 2000,  on  the  first  day  of  each
19    month,  or  as soon as may be practical thereafter, the State
20    Comptroller  shall  direct  and  the  State  Treasurer  shall
21    transfer from the General Revenue Fund to each of the special
22    funds from which  payments  are  to  be  made  under  Section
23    28.1(d)  of  the  Horse Racing Act of 1975 an amount equal to
24    1/12 of the annual amount required for  those  payments  from
25    that  special  fund, which annual amount shall not exceed the
26    annual amount for those payments from that special  fund  for
27    the calendar year 1998.  The special funds to which transfers
28    shall  be made under this subsection (d) include, but are not
29    necessarily limited to, the Agricultural  Premium  Fund;  the
30    Metropolitan  Exposition Auditorium and Office Building Fund;
31    the Fair and Exposition Fund; the Standardbred Breeders Fund;
32    the Thoroughbred Breeders Fund; and  the  Illinois  Veterans'
33    Rehabilitation Fund.
34        (e)  In  addition  to  any  other  transfers  that may be
 
SB1174 Enrolled            -12-                LRB9207962TAtm
 1    provided for by law, as soon as may be  practical  after  the
 2    effective  date  of  this  amendatory Act of the 91st General
 3    Assembly, but in no event later than June 30, 2000, the State
 4    Comptroller  shall  direct  and  the  State  Treasurer  shall
 5    transfer the sum of $15,000,000 from the General Revenue Fund
 6    to the Fund for Illinois' Future.
 7        (f)  In addition to  any  other  transfers  that  may  be
 8    provided  for  by  law, as soon as may be practical after the
 9    effective date of this amendatory Act  of  the  91st  General
10    Assembly, but in no event later than June 30, 2000, the State
11    Comptroller  shall  direct  and  the  State  Treasurer  shall
12    transfer the sum of $70,000,000 from the General Revenue Fund
13    to the Long-Term Care Provider Fund.
14        (f-1)  In  fiscal  year  2002,  in  addition to any other
15    transfers that may be provided for by law, at  the  direction
16    of  and  upon  notification  from  the  Governor,  the  State
17    Comptroller  shall  direct  and  the  State  Treasurer  shall
18    transfer  amounts  not exceeding a total of $160,000,000 from
19    the General Revenue Fund to the Long-Term Care Provider Fund.
20        (g)  In addition to  any  other  transfers  that  may  be
21    provided  for  by law, on July 1, 2001, or as soon thereafter
22    as may be practical, the State Comptroller shall  direct  and
23    the State Treasurer shall transfer the sum of $1,200,000 from
24    the General Revenue Fund to the Violence Prevention Fund.
25        (h)  In  each  of fiscal years 2002 through 2007, but not
26    thereafter, in addition to any other transfers  that  may  be
27    provided  for  by law, the State Comptroller shall direct and
28    the  State  Treasurer  shall  transfer  $5,000,000  from  the
29    General Revenue Fund to the Tourism Promotion Fund.
30        (i)  On or after July 1, 2001 and until May 1,  2002,  in
31    addition  to  any other transfers that may be provided for by
32    law, at the direction  of  and  upon  notification  from  the
33    Governor,  the  State  Comptroller shall direct and the State
34    Treasurer shall transfer amounts not  exceeding  a  total  of
 
SB1174 Enrolled            -13-                LRB9207962TAtm
 1    $80,000,000  from  the  General  Revenue  Fund to the Tobacco
 2    Settlement Recovery Fund.  Any amounts so  transferred  shall
 3    be  re-transferred  by  the  State  Comptroller and the State
 4    Treasurer from the Tobacco Settlement Recovery  Fund  to  the
 5    General   Revenue   Fund   at   the  direction  of  and  upon
 6    notification from the Governor, but in any event on or before
 7    June 30, 2002.
 8        (j)  On or after July 1, 2001 and no later than June  30,
 9    2002, in addition to any other transfers that may be provided
10    for  by  law,  at the direction of and upon notification from
11    the Governor, the State  Comptroller  shall  direct  and  the
12    State  Treasurer  shall  transfer  amounts  not to exceed the
13    following sums into the Statistical Services Revolving Fund:
14        From the General Revenue Fund...............   $8,450,000
15        From the Public Utility Fund................    1,700,000
16        From the Transportation Regulatory Fund.....    2,650,000
17        From the Title III Social Security and
18          Employment Fund...........................    3,700,000
19        From the Professions Indirect Cost Fund.....    4,050,000
20        From the Underground Storage Tank Fund......      550,000
21        From the Agricultural Premium Fund..........      750,000
22        From the State Pensions Fund................      200,000
23        From the Road Fund..........................    2,000,000
24        From the Health Facilities
25          Planning Fund.............................    1,000,000
26        From the Savings and Residential Finance
27          Regulatory Fund...........................      130,800
28        From the Appraisal Administration Fund......       28,600
29        From the Pawnbroker Regulation Fund.........        3,600
30        From the Auction Regulation
31          Administration Fund.......................       35,800
32        From the Bank and Trust Company Fund........      634,800
33        From the Real Estate License
34          Administration Fund.......................      313,600
 
SB1174 Enrolled            -14-                LRB9207962TAtm
 1        (k)  In addition to  any  other  transfers  that  may  be
 2    provided  for  by  law, as soon as may be practical after the
 3    effective date of this amendatory Act  of  the  92nd  General
 4    Assembly,  the  State  Comptroller shall direct and the State
 5    Treasurer shall transfer  the  sum  of  $2,000,000  from  the
 6    General   Revenue  Fund  to  the  Teachers  Health  Insurance
 7    Security Fund.
 8        (k-1)  In addition to any other  transfers  that  may  be
 9    provided  for  by  law, on July 1, 2002, or as soon as may be
10    practical thereafter, the State Comptroller shall direct  and
11    the State Treasurer shall transfer the sum of $2,000,000 from
12    the  General  Revenue  Fund  to the Teachers Health Insurance
13    Security Fund.
14        (k-2)  In addition to any other  transfers  that  may  be
15    provided  for  by  law, on July 1, 2003, or as soon as may be
16    practical thereafter, the State Comptroller shall direct  and
17    the State Treasurer shall transfer the sum of $2,000,000 from
18    the  General  Revenue  Fund  to the Teachers Health Insurance
19    Security Fund.
20    (Source: P.A.  91-25,  eff.  6-9-99;  91-704,  eff.  5-17-00;
21    92-11, eff. 6-11-01.)

22        Section  20.   The  Illinois  Pension  Code is amended by
23    changing Section 16-158 as follows:

24        (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
25        Sec. 16-158.  Contributions by State and other  employing
26    units.
27        (a)  The  State shall make contributions to the System by
28    means of appropriations from the Common School Fund and other
29    State funds of amounts which, together  with  other  employer
30    contributions, employee contributions, investment income, and
31    other  income,  will  be  sufficient  to  meet  the  cost  of
32    maintaining  and  administering  the  System  on a 90% funded
 
SB1174 Enrolled            -15-                LRB9207962TAtm
 1    basis in accordance with actuarial recommendations.
 2        The  Board  shall   determine   the   amount   of   State
 3    contributions  required  for each fiscal year on the basis of
 4    the actuarial tables and other  assumptions  adopted  by  the
 5    Board  and  the  recommendations  of  the  actuary, using the
 6    formula in subsection (b-3).
 7        (a-1)  Annually, on or  before  November  15,  the  board
 8    shall  certify  to  the  Governor  the amount of the required
 9    State  contribution  for  the  coming   fiscal   year.    The
10    certification   shall   include   a  copy  of  the  actuarial
11    recommendations upon which it is based.
12        (b)  Through  State   fiscal   year   1995,   the   State
13    contributions  shall be paid to the System in accordance with
14    Section 18-7 of the School Code.
15        (b-1)  Beginning in State fiscal year 1996, on  the  15th
16    day   of  each  month,  or  as  soon  thereafter  as  may  be
17    practicable, the Board shall submit vouchers for  payment  of
18    State  contributions to the System, in a total monthly amount
19    of one-twelfth of  the  required  annual  State  contribution
20    certified  under  subsection  (a-1).  These vouchers shall be
21    paid by the State Comptroller and Treasurer by warrants drawn
22    on the funds appropriated to the System for that fiscal year.
23        If in any month the amount remaining unexpended from  all
24    other  appropriations to the System for the applicable fiscal
25    year  (including  the  appropriations  to  the  System  under
26    Section 8.12 of the State Finance Act and Section  1  of  the
27    State  Pension  Funds  Continuing  Appropriation Act) is less
28    than the amount lawfully vouchered under this subsection, the
29    difference shall be paid from the Common  School  Fund  under
30    the  continuing  appropriation  authority provided in Section
31    1.1 of the State Pension Funds Continuing Appropriation Act.
32        (b-2)  Allocations   from   the   Common   School    Fund
33    apportioned  to school districts not coming under this System
34    shall not be diminished or affected by the provisions of this
 
SB1174 Enrolled            -16-                LRB9207962TAtm
 1    Article.
 2        (b-3)  For State fiscal  years  2011  through  2045,  the
 3    minimum  contribution  to  the System to be made by the State
 4    for each fiscal year shall be an  amount  determined  by  the
 5    System  to  be  sufficient  to  bring the total assets of the
 6    System up to 90% of the total actuarial  liabilities  of  the
 7    System by the end of State fiscal year 2045.  In making these
 8    determinations,  the  required  State  contribution  shall be
 9    calculated each year as a level percentage  of  payroll  over
10    the  years  remaining  to  and including fiscal year 2045 and
11    shall be determined under the projected unit credit actuarial
12    cost method.
13        For State fiscal  years  1996  through  2010,  the  State
14    contribution to the System, as a percentage of the applicable
15    employee   payroll,   shall  be  increased  in  equal  annual
16    increments so that by State fiscal year 2011,  the  State  is
17    contributing  at the rate required under this Section; except
18    that in the following specified State fiscal years, the State
19    contribution to  the  System  shall  not  be  less  than  the
20    following  indicated  percentages  of the applicable employee
21    payroll, even if the  indicated  percentage  will  produce  a
22    State contribution in excess of the amount otherwise required
23    under this subsection and subsection (a), and notwithstanding
24    any contrary certification made under subsection (a-1) before
25    the effective date of this amendatory Act of 1998:  10.02% in
26    FY  1999;  10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
27    2002; 12.86% in FY 2003; 13.56% in  FY  2004;  14.25%  in  FY
28    2005;  14.95%  in  FY  2006;  15.65% in FY 2007; 16.34% in FY
29    2008; 17.04% in FY 2009; and 17.74% in FY 2010.
30        Beginning in State fiscal year 2046,  the  minimum  State
31    contribution  for each fiscal year shall be the amount needed
32    to maintain the total assets of the  System  at  90%  of  the
33    total actuarial liabilities of the System.
34        (c)  Payment  of  the required State contributions and of
 
SB1174 Enrolled            -17-                LRB9207962TAtm
 1    all pensions, retirement annuities, death benefits,  refunds,
 2    and  other  benefits granted under or assumed by this System,
 3    and all expenses in connection with  the  administration  and
 4    operation thereof, are obligations of the State.
 5        If  members  are paid from special trust or federal funds
 6    which are administered by the employing unit, whether  school
 7    district  or  other unit, the employing unit shall pay to the
 8    System from such funds the  full  accruing  retirement  costs
 9    based  upon  that  service,  as  determined  by  the  System.
10    Employer  contributions, based on salary paid to members from
11    federal funds, may be forwarded by the distributing agency of
12    the State of Illinois to the System prior to  allocation,  in
13    an   amount   determined   in   accordance   with  guidelines
14    established by such agency and the System.
15        (d)  Effective July 1, 1986, any employer of a teacher as
16    defined in paragraph (8) of  Section  16-106  shall  pay  the
17    employer's  normal  cost of benefits based upon the teacher's
18    service, in addition to employee contributions, as determined
19    by  the  System.   Such  employer  contributions   shall   be
20    forwarded  monthly  in accordance with guidelines established
21    by the System.
22        However, with respect to benefits granted  under  Section
23    16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
24    of  Section  16-106, the employer's contribution shall be 12%
25    (rather than 20%) of the member's highest annual salary  rate
26    for each year of creditable service granted, and the employer
27    shall  also  pay the required employee contribution on behalf
28    of the teacher.  For the purposes of  Sections  16-133.4  and
29    16-133.5,  a  teacher  as defined in paragraph (8) of Section
30    16-106 who is serving in that  capacity  while  on  leave  of
31    absence from another employer under this Article shall not be
32    considered an employee of the employer from which the teacher
33    is on leave.
34        (e)  Beginning  July 1, 1998, every employer of a teacher
 
SB1174 Enrolled            -18-                LRB9207962TAtm
 1    shall pay to the System an employer contribution computed  as
 2    follows:
 3             (1)  Beginning  July  1, 1998 through June 30, 1999,
 4        the employer contribution shall be equal to 0.3% of  each
 5        teacher's salary.
 6             (2)  Beginning  July  1,  1999  and  thereafter, the
 7        employer contribution shall be equal  to  0.58%  of  each
 8        teacher's salary.
 9    The  school  district  or  other employing unit may pay these
10    employer contributions out of any source of funding available
11    for that purpose and shall forward the contributions  to  the
12    System  on the schedule established for the payment of member
13    contributions.
14        These employer contributions are  intended  to  offset  a
15    portion  of  the  cost  to  the  System  of  the increases in
16    retirement benefits resulting from  this  amendatory  Act  of
17    1998.
18        Each employer of teachers is entitled to a credit against
19    the  contributions  required  under  this subsection (e) with
20    respect to salaries paid to teachers for the  period  January
21    1,  2002  through  June 30, 2003, equal to the amount paid by
22    that employer under subsection (a-5) of Section  6.6  of  the
23    State  Employees  Group Insurance Act of 1971 with respect to
24    salaries paid to teachers for that period.
25        The additional 1% employee  contribution  required  under
26    Section  16-152  by  this  amendatory  Act  of  1998  is  the
27    responsibility of the teacher and not the teacher's employer,
28    unless  the employer agrees, through collective bargaining or
29    otherwise, to make the contribution on behalf of the teacher.
30        If an employer is required by a contract in effect on May
31    1, 1998 between the employer and an employee organization  to
32    pay, on behalf of all its full-time employees covered by this
33    Article,  all mandatory employee contributions required under
34    this Article, then the employer shall be excused from  paying
 
SB1174 Enrolled            -19-                LRB9207962TAtm
 1    the  employer contribution required under this subsection (e)
 2    for the balance of the term of that contract.   The  employer
 3    and  the  employee  organization shall jointly certify to the
 4    System the existence of the contractual requirement, in  such
 5    form as the System may prescribe.  This exclusion shall cease
 6    upon  the  termination, extension, or renewal of the contract
 7    at any time after May 1, 1998.
 8    (Source: P.A. 90-582, eff. 5-27-98.)

 9        Section 90.  The State Mandates Act is amended by  adding
10    Section 8.26 as follows:

11        (30 ILCS 805/8.26 new)
12        Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
13    and 8 of this Act, no reimbursement by the State is  required
14    for  the  implementation  of  any  mandate  created  by  this
15    amendatory Act of the 92nd General Assembly.

16        Section  99.  Effective date.  This Act takes effect upon
17    becoming law.

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