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90_HB0110sam001
LRB9000902EGfgam21
1 AMENDMENT TO HOUSE BILL 110
2 AMENDMENT NO. . Amend House Bill 110 by replacing
3 the title with the following:
4 "AN ACT in relation to public employees, amending named
5 Acts."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The State Employees Group Insurance Act of
9 1971 is amended by changing Sections 3 and 10 as follows:
10 (5 ILCS 375/3) (from Ch. 127, par. 523)
11 (Text of Section before amendment by P.A. 89-507)
12 Sec. 3. Definitions. Unless the context otherwise
13 requires, the following words and phrases as used in this Act
14 shall have the following meanings. The Department may define
15 these and other words and phrases separately for the purpose
16 of implementing specific programs providing benefits under
17 this Act.
18 (a) "Administrative service organization" means any
19 person, firm or corporation experienced in the handling of
20 claims which is fully qualified, financially sound and
21 capable of meeting the service requirements of a contract of
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1 administration executed with the Department.
2 (b) "Annuitant" means (1) an employee who retires, or
3 has retired, on or after January 1, 1966 on an immediate
4 annuity under the provisions of Articles 2, 14, 15 (including
5 an employee who has retired and is receiving a retirement
6 annuity under an optional program established under Section
7 15-158.2 and who would also be eligible for a retirement
8 annuity had that person been a participant in the State
9 University Retirement System), paragraphs (b) or (c) of
10 Section 16-106, or Article 18 of the Illinois Pension Code;
11 (2) any person who was receiving group insurance coverage
12 under this Act as of March 31, 1978 by reason of his status
13 as an annuitant, even though the annuity in relation to which
14 such coverage was provided is a proportional annuity based on
15 less than the minimum period of service required for a
16 retirement annuity in the system involved; (3) any person not
17 otherwise covered by this Act who has retired as a
18 participating member under Article 2 of the Illinois Pension
19 Code but is ineligible for the retirement annuity under
20 Section 2-119 of the Illinois Pension Code; (4) the spouse of
21 any person who is receiving a retirement annuity under
22 Article 18 of the Illinois Pension Code and who is covered
23 under a group health insurance program sponsored by a
24 governmental employer other than the State of Illinois and
25 who has irrevocably elected to waive his or her coverage
26 under this Act and to have his or her spouse considered as
27 the "annuitant" under this Act and not as a "dependent"; or
28 (5) an employee who retires, or has retired, from a qualified
29 position, as determined according to rules promulgated by the
30 Director, under a qualified local government or a qualified
31 rehabilitation facility or a qualified domestic violence
32 shelter or service. (For definition of "retired employee",
33 see (p) post).
34 (b-5) "New SERS annuitant" means a person who, on or
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1 after January 1, 1998, becomes an annuitant, as defined in
2 subsection (b), by virtue of beginning to receive a
3 retirement annuity under Article 14 of the Illinois Pension
4 Code, and is eligible to participate in the basic program of
5 group health benefits provided for annuitants under this Act.
6 (b-6) "New SURS annuitant" means a person who, on or
7 after January 1, 1998, becomes an annuitant, as defined in
8 subsection (b), by virtue of beginning to receive a
9 retirement annuity under Article 15 of the Illinois Pension
10 Code, and is eligible to participate in the basic program of
11 group health benefits provided for annuitants under this Act.
12 (c) "Carrier" means (1) an insurance company, a
13 corporation organized under the Limited Health Service
14 Organization Act or the Voluntary Health Services Plan Act, a
15 partnership, or other nongovernmental organization, which is
16 authorized to do group life or group health insurance
17 business in Illinois, or (2) the State of Illinois as a
18 self-insurer.
19 (d) "Compensation" means salary or wages payable on a
20 regular payroll by the State Treasurer on a warrant of the
21 State Comptroller out of any State, trust or federal fund, or
22 by the Governor of the State through a disbursing officer of
23 the State out of a trust or out of federal funds, or by any
24 Department out of State, trust, federal or other funds held
25 by the State Treasurer or the Department, to any person for
26 personal services currently performed, and ordinary or
27 accidental disability benefits under Articles 2, 14, 15
28 (including ordinary or accidental disability benefits under
29 an optional program established under Section 15-158.2),
30 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
31 Illinois Pension Code, for disability incurred after January
32 1, 1966, or benefits payable under the Workers' Compensation
33 or Occupational Diseases Act or benefits payable under a sick
34 pay plan established in accordance with Section 36 of the
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1 State Finance Act. "Compensation" also means salary or wages
2 paid to an employee of any qualified local government or
3 qualified rehabilitation facility or a qualified domestic
4 violence shelter or service.
5 (e) "Commission" means the State Employees Group
6 Insurance Advisory Commission authorized by this Act.
7 Commencing July 1, 1984, "Commission" as used in this Act
8 means the Illinois Economic and Fiscal Commission as
9 established by the Legislative Commission Reorganization Act
10 of 1984.
11 (f) "Contributory", when referred to as contributory
12 coverage, shall mean optional coverages or benefits elected
13 by the member toward the cost of which such member makes
14 contribution, or which are funded in whole or in part through
15 the acceptance of a reduction in earnings or the foregoing of
16 an increase in earnings by an employee, as distinguished from
17 noncontributory coverage or benefits which are paid entirely
18 by the State of Illinois without reduction of the member's
19 salary.
20 (g) "Department" means any department, institution,
21 board, commission, officer, court or any agency of the State
22 government receiving appropriations and having power to
23 certify payrolls to the Comptroller authorizing payments of
24 salary and wages against such appropriations as are made by
25 the General Assembly from any State fund, or against trust
26 funds held by the State Treasurer and includes boards of
27 trustees of the retirement systems created by Articles 2, 14,
28 15, 16 and 18 of the Illinois Pension Code. "Department"
29 also includes the Illinois Comprehensive Health Insurance
30 Board and the Illinois Rural Bond Bank.
31 (h) "Dependent", when the term is used in the context of
32 the health and life plan, means a member's spouse and any
33 unmarried child (1) from birth to age 19 including an adopted
34 child, a child who lives with the member from the time of the
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1 filing of a petition for adoption until entry of an order of
2 adoption, a stepchild or recognized child who lives with the
3 member in a parent-child relationship, or a child who lives
4 with the member if such member is a court appointed guardian
5 of the child, or (2) age 19 to 23 enrolled as a full-time
6 student in any accredited school, financially dependent upon
7 the member, and eligible as a dependent for Illinois State
8 income tax purposes, or (3) age 19 or over who is mentally or
9 physically handicapped as defined in the Illinois Insurance
10 Code. For the health plan only, the term "dependent" also
11 includes any person enrolled prior to the effective date of
12 this Section who is dependent upon the member to the extent
13 that the member may claim such person as a dependent for
14 Illinois State income tax deduction purposes; no other such
15 person may be enrolled.
16 (i) "Director" means the Director of the Illinois
17 Department of Central Management Services.
18 (j) "Eligibility period" means the period of time a
19 member has to elect enrollment in programs or to select
20 benefits without regard to age, sex or health.
21 (k) "Employee" means and includes each officer or
22 employee in the service of a department who (1) receives his
23 compensation for service rendered to the department on a
24 warrant issued pursuant to a payroll certified by a
25 department or on a warrant or check issued and drawn by a
26 department upon a trust, federal or other fund or on a
27 warrant issued pursuant to a payroll certified by an elected
28 or duly appointed officer of the State or who receives
29 payment of the performance of personal services on a warrant
30 issued pursuant to a payroll certified by a Department and
31 drawn by the Comptroller upon the State Treasurer against
32 appropriations made by the General Assembly from any fund or
33 against trust funds held by the State Treasurer, and (2) is
34 employed full-time or part-time in a position normally
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1 requiring actual performance of duty during not less than 1/2
2 of a normal work period, as established by the Director in
3 cooperation with each department, except that persons elected
4 by popular vote will be considered employees during the
5 entire term for which they are elected regardless of hours
6 devoted to the service of the State, and (3) except that
7 "employee" does not include any person who is not eligible by
8 reason of such person's employment to participate in one of
9 the State retirement systems under Articles 2, 14, 15 (either
10 the regular Article 15 system or an optional program
11 established under Section 15-158.2) or 18, or under paragraph
12 (b) or (c) of Section 16-106, of the Illinois Pension Code,
13 but such term does include persons who are employed during
14 the 6 month qualifying period under Article 14 of the
15 Illinois Pension Code. Such term also includes any person
16 who (1) after January 1, 1966, is receiving ordinary or
17 accidental disability benefits under Articles 2, 14, 15
18 (including ordinary or accidental disability benefits under
19 an optional program established under Section 15-158.2),
20 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
21 Illinois Pension Code, for disability incurred after January
22 1, 1966, (2) receives total permanent or total temporary
23 disability under the Workers' Compensation Act or
24 Occupational Disease Act as a result of injuries sustained or
25 illness contracted in the course of employment with the State
26 of Illinois, or (3) is not otherwise covered under this Act
27 and has retired as a participating member under Article 2 of
28 the Illinois Pension Code but is ineligible for the
29 retirement annuity under Section 2-119 of the Illinois
30 Pension Code. However, a person who satisfies the criteria
31 of the foregoing definition of "employee" except that such
32 person is made ineligible to participate in the State
33 Universities Retirement System by clause (4) of subsection
34 (a) the first paragraph of Section 15-107 of the Illinois
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1 Pension Code is also an "employee" for the purposes of this
2 Act. "Employee" also includes any person receiving or
3 eligible for benefits under a sick pay plan established in
4 accordance with Section 36 of the State Finance Act.
5 "Employee" also includes each officer or employee in the
6 service of a qualified local government, including persons
7 appointed as trustees of sanitary districts regardless of
8 hours devoted to the service of the sanitary district, and
9 each employee in the service of a qualified rehabilitation
10 facility and each full-time employee in the service of a
11 qualified domestic violence shelter or service, as determined
12 according to rules promulgated by the Director.
13 (l) "Member" means an employee, annuitant, retired
14 employee or survivor.
15 (m) "Optional coverages or benefits" means those
16 coverages or benefits available to the member on his or her
17 voluntary election, and at his or her own expense.
18 (n) "Program" means the group life insurance, health
19 benefits and other employee benefits designed and contracted
20 for by the Director under this Act.
21 (o) "Health plan" means a self-insured health insurance
22 program offered by the State of Illinois for the purposes of
23 benefiting employees by means of providing, among others,
24 wellness programs, utilization reviews, second opinions and
25 medical fee reviews, as well as for paying for hospital and
26 medical care up to the maximum coverage provided by the plan,
27 to its members and their dependents.
28 (p) "Retired employee" means any person who would be an
29 annuitant as that term is defined herein but for the fact
30 that such person retired prior to January 1, 1966. Such term
31 also includes any person formerly employed by the University
32 of Illinois in the Cooperative Extension Service who would be
33 an annuitant but for the fact that such person was made
34 ineligible to participate in the State Universities
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1 Retirement System by clause (4) of subsection (a) the first
2 paragraph of Section 15-107 of the Illinois Pension Code.
3 (p-6) "New SURS retired employee" means a person who, on
4 or after January 1, 1998, becomes a retired employee, as
5 defined in subsection (p), by virtue of being a person
6 formerly employed by the University of Illinois in the
7 Cooperative Extension Service who would be an annuitant but
8 for the fact that he or she was made ineligible to
9 participate in the State Universities Retirement System by
10 clause (4) of subsection (a) of Section 15-107 of the
11 Illinois Pension Code, and who is eligible to participate in
12 the basic program of group health benefits provided for
13 retired employees under this Act.
14 (q) "Survivor" means a person receiving an annuity as a
15 survivor of an employee or of an annuitant. "Survivor" also
16 includes: (1) the surviving dependent of a person who
17 satisfies the definition of "employee" except that such
18 person is made ineligible to participate in the State
19 Universities Retirement System by clause (4) of subsection
20 (a) the first paragraph of Section 15-107 of the Illinois
21 Pension Code; and (2) the surviving dependent of any person
22 formerly employed by the University of Illinois in the
23 Cooperative Extension Service who would be an annuitant
24 except for the fact that such person was made ineligible to
25 participate in the State Universities Retirement System by
26 clause (4) of subsection (a) the first paragraph of Section
27 15-107 of the Illinois Pension Code.
28 (q-5) "New SERS survivor" means a survivor, as defined
29 in subsection (q), whose annuity is paid under Article 14 of
30 the Illinois Pension Code and is based on the death of (i) an
31 employee whose death occurs on or after January 1, 1998, or
32 (ii) a new SERS annuitant as defined in subsection (b-5).
33 (q-6) "New SURS survivor" means a survivor, as defined
34 in subsection (q), whose annuity is paid under Article 15 of
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1 the Illinois Pension Code and is based on the death of (i) an
2 employee whose death occurs on or after January 1, 1998, (ii)
3 a new SURS annuitant as defined in subsection (b-6), or (iii)
4 a new SURS retired employee as defined in subsection (p-6).
5 (r) "Medical services" means the services provided
6 within the scope of their licenses by practitioners in all
7 categories licensed under the Medical Practice Act of 1987.
8 (s) "Unit of local government" means any county,
9 municipality, township, school district, special district or
10 other unit, designated as a unit of local government by law,
11 which exercises limited governmental powers or powers in
12 respect to limited governmental subjects, any not-for-profit
13 association with a membership that primarily includes
14 townships and township officials, that has duties that
15 include provision of research service, dissemination of
16 information, and other acts for the purpose of improving
17 township government, and that is funded wholly or partly in
18 accordance with Section 85-15 of the Township Code; any
19 not-for-profit corporation or association, with a membership
20 consisting primarily of municipalities, that operates its own
21 utility system, and provides research, training,
22 dissemination of information, or other acts to promote
23 cooperation between and among municipalities that provide
24 utility services and for the advancement of the goals and
25 purposes of its membership; and the Illinois Association of
26 Park Districts. "Qualified local government" means a unit of
27 local government approved by the Director and participating
28 in a program created under subsection (i) of Section 10 of
29 this Act.
30 (t) "Qualified rehabilitation facility" means any
31 not-for-profit organization that is accredited by the
32 Commission on Accreditation of Rehabilitation Facilities or
33 certified by the Department of Mental Health and
34 Developmental Disabilities to provide services to persons
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1 with 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 Illinois Department
8 of Public Aid, approved by the Director and participating in
9 a program created under subsection (k) of Section 10.
10 (v) "TRS benefit recipient" means a person who:
11 (1) is not a "member" as defined in this Section;
12 and
13 (2) is receiving a monthly benefit or retirement
14 annuity under Article 16 of the Illinois Pension Code;
15 and
16 (3) either (i) has at least 8 years of creditable
17 service under Article 16 of the Illinois Pension Code, or
18 (ii) was enrolled in the health insurance program offered
19 under that Article on January 1, 1996, or (iii) is the
20 survivor of a benefit recipient who had at least 8 years
21 of creditable service under Article 16 of the Illinois
22 Pension Code or was enrolled in the health insurance
23 program offered under that Article on the effective date
24 of this amendatory Act of 1995, or (iv) is a recipient or
25 survivor of a recipient of a disability benefit under
26 Article 16 of the Illinois Pension Code.
27 (w) "TRS dependent beneficiary" means a person who:
28 (1) is not a "member" or "dependent" as defined in
29 this Section; and
30 (2) is a TRS benefit recipient's: (A) spouse, (B)
31 dependent parent who is receiving at least half of his or
32 her support from the TRS benefit recipient, or (C)
33 unmarried natural or adopted child who is (i) under age
34 19, or (ii) enrolled as a full-time student in an
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1 accredited school, financially dependent upon the TRS
2 benefit recipient, eligible as a dependent for Illinois
3 State income tax purposes, and either is under age 24 or
4 was, on January 1, 1996, participating as a dependent
5 beneficiary in the health insurance program offered under
6 Article 16 of the Illinois Pension Code, or (iii) age 19
7 or over who is mentally or physically handicapped as
8 defined in the Illinois Insurance Code.
9 (x) "Military leave with pay and benefits" refers to
10 individuals in basic training for reserves, special/advanced
11 training, annual training, emergency call up, or activation
12 by the President of the United States with approved pay and
13 benefits.
14 (y) "Military leave without pay and benefits" refers to
15 individuals who enlist for active duty in a regular component
16 of the U.S. Armed Forces or other duty not specified or
17 authorized under military leave with pay and benefits.
18 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
19 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
20 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
21 eff. 8-9-96; revised 8-23-96.)
22 (Text of Section after amendment by P.A. 89-507)
23 Sec. 3. Definitions. Unless the context otherwise
24 requires, the following words and phrases as used in this Act
25 shall have the following meanings. The Department may define
26 these and other words and phrases separately for the purpose
27 of implementing specific programs providing benefits under
28 this Act.
29 (a) "Administrative service organization" means any
30 person, firm or corporation experienced in the handling of
31 claims which is fully qualified, financially sound and
32 capable of meeting the service requirements of a contract of
33 administration executed with the Department.
34 (b) "Annuitant" means (1) an employee who retires, or
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1 has retired, on or after January 1, 1966 on an immediate
2 annuity under the provisions of Articles 2, 14, 15 (including
3 an employee who has retired and is receiving a retirement
4 annuity under an optional program established under Section
5 15-158.2 and who would also be eligible for a retirement
6 annuity had that person been a participant in the State
7 University Retirement System), paragraphs (b) or (c) of
8 Section 16-106, or Article 18 of the Illinois Pension Code;
9 (2) any person who was receiving group insurance coverage
10 under this Act as of March 31, 1978 by reason of his status
11 as an annuitant, even though the annuity in relation to which
12 such coverage was provided is a proportional annuity based on
13 less than the minimum period of service required for a
14 retirement annuity in the system involved; (3) any person not
15 otherwise covered by this Act who has retired as a
16 participating member under Article 2 of the Illinois Pension
17 Code but is ineligible for the retirement annuity under
18 Section 2-119 of the Illinois Pension Code; (4) the spouse of
19 any person who is receiving a retirement annuity under
20 Article 18 of the Illinois Pension Code and who is covered
21 under a group health insurance program sponsored by a
22 governmental employer other than the State of Illinois and
23 who has irrevocably elected to waive his or her coverage
24 under this Act and to have his or her spouse considered as
25 the "annuitant" under this Act and not as a "dependent"; or
26 (5) an employee who retires, or has retired, from a qualified
27 position, as determined according to rules promulgated by the
28 Director, under a qualified local government or a qualified
29 rehabilitation facility or a qualified domestic violence
30 shelter or service. (For definition of "retired employee",
31 see (p) post).
32 (b-5) "New SERS annuitant" means a person who, on or
33 after January 1, 1998, becomes an annuitant, as defined in
34 subsection (b), by virtue of beginning to receive a
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1 retirement annuity under Article 14 of the Illinois Pension
2 Code, and is eligible to participate in the basic program of
3 group health benefits provided for annuitants under this Act.
4 (b-6) "New SURS annuitant" means a person who, on or
5 after January 1, 1998, becomes an annuitant, as defined in
6 subsection (b), by virtue of beginning to receive a
7 retirement annuity under Article 15 of the Illinois Pension
8 Code, and is eligible to participate in the basic program of
9 group health benefits provided for annuitants under this Act.
10 (c) "Carrier" means (1) an insurance company, a
11 corporation organized under the Limited Health Service
12 Organization Act or the Voluntary Health Services Plan Act, a
13 partnership, or other nongovernmental organization, which is
14 authorized to do group life or group health insurance
15 business in Illinois, or (2) the State of Illinois as a
16 self-insurer.
17 (d) "Compensation" means salary or wages payable on a
18 regular payroll by the State Treasurer on a warrant of the
19 State Comptroller out of any State, trust or federal fund, or
20 by the Governor of the State through a disbursing officer of
21 the State out of a trust or out of federal funds, or by any
22 Department out of State, trust, federal or other funds held
23 by the State Treasurer or the Department, to any person for
24 personal services currently performed, and ordinary or
25 accidental disability benefits under Articles 2, 14, 15
26 (including ordinary or accidental disability benefits under
27 an optional program established under Section 15-158.2),
28 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
29 Illinois Pension Code, for disability incurred after January
30 1, 1966, or benefits payable under the Workers' Compensation
31 or Occupational Diseases Act or benefits payable under a sick
32 pay plan established in accordance with Section 36 of the
33 State Finance Act. "Compensation" also means salary or wages
34 paid to an employee of any qualified local government or
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1 qualified rehabilitation facility or a qualified domestic
2 violence shelter or service.
3 (e) "Commission" means the State Employees Group
4 Insurance Advisory Commission authorized by this Act.
5 Commencing July 1, 1984, "Commission" as used in this Act
6 means the Illinois Economic and Fiscal Commission as
7 established by the Legislative Commission Reorganization Act
8 of 1984.
9 (f) "Contributory", when referred to as contributory
10 coverage, shall mean optional coverages or benefits elected
11 by the member toward the cost of which such member makes
12 contribution, or which are funded in whole or in part through
13 the acceptance of a reduction in earnings or the foregoing of
14 an increase in earnings by an employee, as distinguished from
15 noncontributory coverage or benefits which are paid entirely
16 by the State of Illinois without reduction of the member's
17 salary.
18 (g) "Department" means any department, institution,
19 board, commission, officer, court or any agency of the State
20 government receiving appropriations and having power to
21 certify payrolls to the Comptroller authorizing payments of
22 salary and wages against such appropriations as are made by
23 the General Assembly from any State fund, or against trust
24 funds held by the State Treasurer and includes boards of
25 trustees of the retirement systems created by Articles 2, 14,
26 15, 16 and 18 of the Illinois Pension Code. "Department"
27 also includes the Illinois Comprehensive Health Insurance
28 Board and the Illinois Rural Bond Bank.
29 (h) "Dependent", when the term is used in the context of
30 the health and life plan, means a member's spouse and any
31 unmarried child (1) from birth to age 19 including an adopted
32 child, a child who lives with the member from the time of the
33 filing of a petition for adoption until entry of an order of
34 adoption, a stepchild or recognized child who lives with the
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1 member in a parent-child relationship, or a child who lives
2 with the member if such member is a court appointed guardian
3 of the child, or (2) age 19 to 23 enrolled as a full-time
4 student in any accredited school, financially dependent upon
5 the member, and eligible as a dependent for Illinois State
6 income tax purposes, or (3) age 19 or over who is mentally or
7 physically handicapped as defined in the Illinois Insurance
8 Code. For the health plan only, the term "dependent" also
9 includes any person enrolled prior to the effective date of
10 this Section who is dependent upon the member to the extent
11 that the member may claim such person as a dependent for
12 Illinois State income tax deduction purposes; no other such
13 person may be enrolled.
14 (i) "Director" means the Director of the Illinois
15 Department of Central Management Services.
16 (j) "Eligibility period" means the period of time a
17 member has to elect enrollment in programs or to select
18 benefits without regard to age, sex or health.
19 (k) "Employee" means and includes each officer or
20 employee in the service of a department who (1) receives his
21 compensation for service rendered to the department on a
22 warrant issued pursuant to a payroll certified by a
23 department or on a warrant or check issued and drawn by a
24 department upon a trust, federal or other fund or on a
25 warrant issued pursuant to a payroll certified by an elected
26 or duly appointed officer of the State or who receives
27 payment of the performance of personal services on a warrant
28 issued pursuant to a payroll certified by a Department and
29 drawn by the Comptroller upon the State Treasurer against
30 appropriations made by the General Assembly from any fund or
31 against trust funds held by the State Treasurer, and (2) is
32 employed full-time or part-time in a position normally
33 requiring actual performance of duty during not less than 1/2
34 of a normal work period, as established by the Director in
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1 cooperation with each department, except that persons elected
2 by popular vote will be considered employees during the
3 entire term for which they are elected regardless of hours
4 devoted to the service of the State, and (3) except that
5 "employee" does not include any person who is not eligible by
6 reason of such person's employment to participate in one of
7 the State retirement systems under Articles 2, 14, 15 (either
8 the regular Article 15 system or an optional program
9 established under Section 15-158.2) or 18, or under paragraph
10 (b) or (c) of Section 16-106, of the Illinois Pension Code,
11 but such term does include persons who are employed during
12 the 6 month qualifying period under Article 14 of the
13 Illinois Pension Code. Such term also includes any person
14 who (1) after January 1, 1966, is receiving ordinary or
15 accidental disability benefits under Articles 2, 14, 15
16 (including ordinary or accidental disability benefits under
17 an optional program established under Section 15-158.2),
18 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
19 Illinois Pension Code, for disability incurred after January
20 1, 1966, (2) receives total permanent or total temporary
21 disability under the Workers' Compensation Act or
22 Occupational Disease Act as a result of injuries sustained or
23 illness contracted in the course of employment with the State
24 of Illinois, or (3) is not otherwise covered under this Act
25 and has retired as a participating member under Article 2 of
26 the Illinois Pension Code but is ineligible for the
27 retirement annuity under Section 2-119 of the Illinois
28 Pension Code. However, a person who satisfies the criteria
29 of the foregoing definition of "employee" except that such
30 person is made ineligible to participate in the State
31 Universities Retirement System by clause (4) of subsection
32 (a) the first paragraph of Section 15-107 of the Illinois
33 Pension Code is also an "employee" for the purposes of this
34 Act. "Employee" also includes any person receiving or
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1 eligible for benefits under a sick pay plan established in
2 accordance with Section 36 of the State Finance Act.
3 "Employee" also includes each officer or employee in the
4 service of a qualified local government, including persons
5 appointed as trustees of sanitary districts regardless of
6 hours devoted to the service of the sanitary district, and
7 each employee in the service of a qualified rehabilitation
8 facility and each full-time employee in the service of a
9 qualified domestic violence shelter or service, as determined
10 according to rules promulgated by the Director.
11 (l) "Member" means an employee, annuitant, retired
12 employee or survivor.
13 (m) "Optional coverages or benefits" means those
14 coverages or benefits available to the member on his or her
15 voluntary election, and at his or her own expense.
16 (n) "Program" means the group life insurance, health
17 benefits and other employee benefits designed and contracted
18 for by the Director under this Act.
19 (o) "Health plan" means a self-insured health insurance
20 program offered by the State of Illinois for the purposes of
21 benefiting employees by means of providing, among others,
22 wellness programs, utilization reviews, second opinions and
23 medical fee reviews, as well as for paying for hospital and
24 medical care up to the maximum coverage provided by the plan,
25 to its members and their dependents.
26 (p) "Retired employee" means any person who would be an
27 annuitant as that term is defined herein but for the fact
28 that such person retired prior to January 1, 1966. Such term
29 also includes any person formerly employed by the University
30 of Illinois in the Cooperative Extension Service who would be
31 an annuitant but for the fact that such person was made
32 ineligible to participate in the State Universities
33 Retirement System by clause (4) of subsection (a) the first
34 paragraph of Section 15-107 of the Illinois Pension Code.
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1 (p-6) "New SURS retired employee" means a person who, on
2 or after January 1, 1998, becomes a retired employee, as
3 defined in subsection (p), by virtue of being a person
4 formerly employed by the University of Illinois in the
5 Cooperative Extension Service who would be an annuitant but
6 for the fact that he or she was made ineligible to
7 participate in the State Universities Retirement System by
8 clause (4) of subsection (a) of Section 15-107 of the
9 Illinois Pension Code, and who is eligible to participate in
10 the basic program of group health benefits provided for
11 retired employees under this Act.
12 (q) "Survivor" means a person receiving an annuity as a
13 survivor of an employee or of an annuitant. "Survivor" also
14 includes: (1) the surviving dependent of a person who
15 satisfies the definition of "employee" except that such
16 person is made ineligible to participate in the State
17 Universities Retirement System by clause (4) of subsection
18 (a) the first paragraph of Section 15-107 of the Illinois
19 Pension Code; and (2) the surviving dependent of any person
20 formerly employed by the University of Illinois in the
21 Cooperative Extension Service who would be an annuitant
22 except for the fact that such person was made ineligible to
23 participate in the State Universities Retirement System by
24 clause (4) of subsection (a) the first paragraph of Section
25 15-107 of the Illinois Pension Code.
26 (q-5) "New SERS survivor" means a survivor, as defined
27 in subsection (q), whose annuity is paid under Article 14 of
28 the Illinois Pension Code and is based on the death of (i) an
29 employee whose death occurs on or after January 1, 1998, or
30 (ii) a new SERS annuitant as defined in subsection (b-5).
31 (q-6) "New SURS survivor" means a survivor, as defined
32 in subsection (q), whose annuity is paid under Article 15 of
33 the Illinois Pension Code and is based on the death of (i) an
34 employee whose death occurs on or after January 1, 1998, (ii)
-19- LRB9000902EGfgam21
1 a new SURS annuitant as defined in subsection (b-6), or (iii)
2 a new SURS retired employee as defined in subsection (p-6).
3 (r) "Medical services" means the services provided
4 within the scope of their licenses by practitioners in all
5 categories licensed under the Medical Practice Act of 1987.
6 (s) "Unit of local government" means any county,
7 municipality, township, school district, special district or
8 other unit, designated as a unit of local government by law,
9 which exercises limited governmental powers or powers in
10 respect to limited governmental subjects, any not-for-profit
11 association with a membership that primarily includes
12 townships and township officials, that has duties that
13 include provision of research service, dissemination of
14 information, and other acts for the purpose of improving
15 township government, and that is funded wholly or partly in
16 accordance with Section 85-15 of the Township Code; any
17 not-for-profit corporation or association, with a membership
18 consisting primarily of municipalities, that operates its own
19 utility system, and provides research, training,
20 dissemination of information, or other acts to promote
21 cooperation between and among municipalities that provide
22 utility services and for the advancement of the goals and
23 purposes of its membership; and the Illinois Association of
24 Park Districts. "Qualified local government" means a unit of
25 local government approved by the Director and participating
26 in a program created under subsection (i) of Section 10 of
27 this Act.
28 (t) "Qualified rehabilitation facility" means any
29 not-for-profit organization that is accredited by the
30 Commission on Accreditation of Rehabilitation Facilities or
31 certified by the Department of Human Services (as successor
32 to the Department of Mental Health and Developmental
33 Disabilities) to provide services to persons with
34 disabilities and which receives funds from the State of
-20- LRB9000902EGfgam21
1 Illinois for providing those services, approved by the
2 Director and participating in a program created under
3 subsection (j) of Section 10 of this Act.
4 (u) "Qualified domestic violence shelter or service"
5 means any Illinois domestic violence shelter or service and
6 its administrative offices funded by the Department of Human
7 Services (as successor to the Illinois Department of Public
8 Aid), approved by the Director and participating in a program
9 created under subsection (k) of Section 10.
10 (v) "TRS benefit recipient" means a person who:
11 (1) is not a "member" as defined in this Section;
12 and
13 (2) is receiving a monthly benefit or retirement
14 annuity under Article 16 of the Illinois Pension Code;
15 and
16 (3) either (i) has at least 8 years of creditable
17 service under Article 16 of the Illinois Pension Code, or
18 (ii) was enrolled in the health insurance program offered
19 under that Article on January 1, 1996, or (iii) is the
20 survivor of a benefit recipient who had at least 8 years
21 of creditable service under Article 16 of the Illinois
22 Pension Code or was enrolled in the health insurance
23 program offered under that Article on the effective date
24 of this amendatory Act of 1995, or (iv) is a recipient or
25 survivor of a recipient of a disability benefit under
26 Article 16 of the Illinois Pension Code.
27 (w) "TRS dependent beneficiary" means a person who:
28 (1) is not a "member" or "dependent" as defined in
29 this Section; and
30 (2) is a TRS benefit recipient's: (A) spouse, (B)
31 dependent parent who is receiving at least half of his or
32 her support from the TRS benefit recipient, or (C)
33 unmarried natural or adopted child who is (i) under age
34 19, or (ii) enrolled as a full-time student in an
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1 accredited school, financially dependent upon the TRS
2 benefit recipient, eligible as a dependent for Illinois
3 State income tax purposes, and either is under age 24 or
4 was, on January 1, 1996, participating as a dependent
5 beneficiary in the health insurance program offered under
6 Article 16 of the Illinois Pension Code, or (iii) age 19
7 or over who is mentally or physically handicapped as
8 defined in the Illinois Insurance Code.
9 (x) "Military leave with pay and benefits" refers to
10 individuals in basic training for reserves, special/advanced
11 training, annual training, emergency call up, or activation
12 by the President of the United States with approved pay and
13 benefits.
14 (y) "Military leave without pay and benefits" refers to
15 individuals who enlist for active duty in a regular component
16 of the U.S. Armed Forces or other duty not specified or
17 authorized under military leave with pay and benefits.
18 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
19 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
20 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
21 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
22 (5 ILCS 375/10) (from Ch. 127, par. 530)
23 Sec. 10. Payments by State; premiums.
24 (a) The State shall pay the cost of basic
25 non-contributory group life insurance and, subject to member
26 paid contributions set by the Department or required by this
27 Section, the basic program of group health benefits on each
28 eligible member, except a member, not otherwise covered by
29 this Act, who has retired as a participating member under
30 Article 2 of the Illinois Pension Code but is ineligible for
31 the retirement annuity under Section 2-119 of the Illinois
32 Pension Code, and part of each eligible member's and retired
33 member's premiums for health insurance coverage for enrolled
-22- LRB9000902EGfgam21
1 dependents as provided by Section 9. The State shall pay the
2 cost of the basic program of group health benefits only after
3 benefits are reduced by the amount of benefits covered by
4 Medicare for all retired members and retired dependents aged
5 65 years or older who are entitled to benefits under Social
6 Security or the Railroad Retirement system or who had
7 sufficient Medicare-covered government employment except that
8 such reduction in benefits shall apply only to those retired
9 members or retired dependents who (1) first become eligible
10 for such Medicare coverage on or after July 1, 1992; or (2)
11 remain eligible for, but no longer receive Medicare coverage
12 which they had been receiving on or after July 1, 1992. The
13 Department may determine the aggregate level of the State's
14 contribution on the basis of actual cost of medical services
15 adjusted for age, sex or geographic or other demographic
16 characteristics which affect the costs of such programs.
17 (a-1) Beginning January 1, 1998, for each person who
18 becomes a new SERS annuitant and participates in the basic
19 program of group health benefits, the State shall contribute
20 toward the cost of the annuitant's coverage under the basic
21 program of group health benefits an amount equal to 5% of
22 that cost for each full year of creditable service upon which
23 the annuitant's retirement annuity is based, up to a maximum
24 of 100% for an annuitant with 20 or more years of creditable
25 service. The remainder of the cost of a new SERS annuitant's
26 coverage under the basic program of group health benefits
27 shall be the responsibility of the annuitant.
28 (a-2) Beginning January 1, 1998, for each person who
29 becomes a new SERS survivor and participates in the basic
30 program of group health benefits, the State shall contribute
31 toward the cost of the survivor's coverage under the basic
32 program of group health benefits an amount equal to 5% of
33 that cost for each full year of the deceased employee's or
34 deceased annuitant's creditable service in the State
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1 Employees' Retirement System of Illinois on the date of
2 death, up to a maximum of 100% for a survivor of an employee
3 or annuitant with 20 or more years of creditable service.
4 The remainder of the cost of the new SERS survivor's coverage
5 under the basic program of group health benefits shall be the
6 responsibility of the survivor.
7 (a-3) Beginning January 1, 1998, for each person who
8 becomes a new SURS annuitant and participates in the basic
9 program of group health benefits, the State shall contribute
10 toward the cost of the annuitant's coverage under the basic
11 program of group health benefits an amount equal to 5% of
12 that cost for each full year of creditable service upon which
13 the annuitant's retirement annuity is based, up to a maximum
14 of 100% for an annuitant with 20 or more years of creditable
15 service. The remainder of the cost of a new SURS annuitant's
16 coverage under the basic program of group health benefits
17 shall be the responsibility of the annuitant.
18 (a-4) Beginning January 1, 1998, for each person who
19 becomes a new SURS retired employee and participates in the
20 basic program of group health benefits, the State shall
21 contribute toward the cost of the retired employee's coverage
22 under the basic program of group health benefits an amount
23 equal to 5% of that cost for each full year that the retired
24 employee was an employee as defined in Section 3, up to a
25 maximum of 100% for a retired employee who was an employee
26 for 20 or more years. The remainder of the cost of a new
27 SURS retired employee's coverage under the basic program of
28 group health benefits shall be the responsibility of the
29 retired employee.
30 (a-5) Beginning January 1, 1998, for each person who
31 becomes a new SURS survivor and participates in the basic
32 program of group health benefits, the State shall contribute
33 toward the cost of the survivor's coverage under the basic
34 program of group health benefits an amount equal to 5% of
-24- LRB9000902EGfgam21
1 that cost for each full year of the deceased employee's or
2 deceased annuitant's creditable service in the State
3 Employees' Retirement System of Illinois on the date of
4 death, up to a maximum of 100% for a survivor of an employee
5 or annuitant with 20 or more years of creditable service.
6 The remainder of the cost of the new SURS survivor's coverage
7 under the basic program of group health benefits shall be the
8 responsibility of the survivor.
9 (a-6) A new SERS annuitant, new SERS survivor, new SURS
10 annuitant, new SURS retired employee, or new SURS survivor
11 may waive or terminate coverage in the program of group
12 health benefits. Any such annuitant, survivor, or retired
13 employee who has waived or terminated coverage may enroll or
14 re-enroll in the program of group health benefits only during
15 the annual benefit choice period, as determined by the
16 Director; except that in the event of termination of coverage
17 due to nonpayment of premiums, the annuitant, survivor, or
18 retired employee may not re-enroll in the program.
19 (a-7) No later than May 1 of each calendar year, the
20 Director of Central Management Services shall certify in
21 writing to the Executive Secretary of the State Employees'
22 Retirement System of Illinois the amounts of the medicare
23 supplement health care premiums and the amounts of the health
24 care premiums for all other retirees who are not eligible for
25 medicare. The certification shall include a separate
26 calculation of each premium amount, based on the actual cost
27 of the health care plan, and shall be accompanied by all
28 information necessary to verify the certified premium
29 amounts. The Director shall provide the Executive Secretary
30 with any additional information relating to the premiums that
31 the Executive Secretary may request.
32 The Executive Secretary of the State Employees'
33 Retirement System of Illinois shall review and verify each of
34 the certified premium amounts and shall report in writing to
-25- LRB9000902EGfgam21
1 the Director of Central Management Services the results of
2 this review. If the Executive Secretary questions or
3 disagrees with any certified premium amount, the Executive
4 Secretary shall include in this report his or her questions
5 or reasons for disagreement.
6 (b) State employees who become eligible for this program
7 on or after January 1, 1980 in positions, normally requiring
8 actual performance of duty not less than 1/2 of a normal work
9 period but not equal to that of a normal work period, shall
10 be given the option of participating in the available
11 program. If the employee elects coverage, the State shall
12 contribute on behalf of such employee to the cost of the
13 employee's benefit and any applicable dependent supplement,
14 that sum which bears the same percentage as that percentage
15 of time the employee regularly works when compared to normal
16 work period.
17 (c) The basic non-contributory coverage from the basic
18 program of group health benefits shall be continued for each
19 employee not in pay status or on active service by reason of
20 (1) leave of absence due to illness or injury, (2) authorized
21 educational leave of absence or sabbatical leave, or (3)
22 military leave with pay and benefits. This coverage shall
23 continue until expiration of authorized leave and return to
24 active service, but not to exceed 24 months for leaves under
25 item (1) or (2). This 24-month limitation and the requirement
26 of returning to active service shall not apply to persons
27 receiving ordinary or accidental disability benefits or
28 retirement benefits through the appropriate State retirement
29 system or benefits under the Workers' Compensation or
30 Occupational Disease Act.
31 (d) The basic group life insurance coverage shall
32 continue, with full State contribution, where such person is
33 (1) absent from active service by reason of disability
34 arising from any cause other than self-inflicted, (2) on
-26- LRB9000902EGfgam21
1 authorized educational leave of absence or sabbatical leave,
2 or (3) on military leave with pay and benefits.
3 (e) Where the person is in non-pay status for a period
4 in excess of 30 days or on leave of absence, other than by
5 reason of disability, educational or sabbatical leave, or
6 military leave with pay and benefits, such person may
7 continue coverage only by making personal payment equal to
8 the amount normally contributed by the State on such person's
9 behalf. Such payments and coverage may be continued: (1)
10 until such time as the person returns to a status eligible
11 for coverage at State expense, but not to exceed 24 months,
12 (2) until such person's employment or annuitant status with
13 the State is terminated, or (3) for a maximum period of 4
14 years for members on military leave with pay and benefits and
15 military leave without pay and benefits (exclusive of any
16 additional service imposed pursuant to law).
17 (f) The Department shall establish by rule the extent
18 to which other employee benefits will continue for persons in
19 non-pay status or who are not in active service.
20 (g) The State shall not pay the cost of the basic
21 non-contributory group life insurance, program of health
22 benefits and other employee benefits for members who are
23 survivors as defined by paragraphs (1) and (2) of subsection
24 (q) of Section 3 of this Act. The costs of benefits for
25 these survivors shall be paid by the survivors or by the
26 University of Illinois Cooperative Extension Service, or any
27 combination thereof.
28 (h) Those persons occupying positions with any
29 department as a result of emergency appointments pursuant to
30 Section 8b.8 of the Personnel Code who are not considered
31 employees under this Act shall be given the option of
32 participating in the programs of group life insurance, health
33 benefits and other employee benefits. Such persons electing
34 coverage may participate only by making payment equal to the
-27- LRB9000902EGfgam21
1 amount normally contributed by the State for similarly
2 situated employees. Such amounts shall be determined by the
3 Director. Such payments and coverage may be continued until
4 such time as the person becomes an employee pursuant to this
5 Act or such person's appointment is terminated.
6 (i) Any unit of local government within the State of
7 Illinois may apply to the Director to have its employees,
8 annuitants, and their dependents provided group health
9 coverage under this Act on a non-insured basis. To
10 participate, a unit of local government must agree to enroll
11 all of its employees, who may select coverage under either
12 the State group health insurance plan or a health maintenance
13 organization that has contracted with the State to be
14 available as a health care provider for employees as defined
15 in this Act. A unit of local government must remit the
16 entire cost of providing coverage under the State group
17 health insurance plan or, for coverage under a health
18 maintenance organization, an amount determined by the
19 Director based on an analysis of the sex, age, geographic
20 location, or other relevant demographic variables for its
21 employees, except that the unit of local government shall not
22 be required to enroll those of its employees who are covered
23 spouses or dependents under this plan or another group policy
24 or plan providing health benefits as long as (1) an
25 appropriate official from the unit of local government
26 attests that each employee not enrolled is a covered spouse
27 or dependent under this plan or another group policy or plan,
28 and (2) at least 85% of the employees are enrolled and the
29 unit of local government remits the entire cost of providing
30 coverage to those employees. Employees of a participating
31 unit of local government who are not enrolled due to coverage
32 under another group health policy or plan may enroll at a
33 later date subject to submission of satisfactory evidence of
34 insurability and provided that no benefits shall be payable
-28- LRB9000902EGfgam21
1 for services incurred during the first 6 months of coverage
2 to the extent the services are in connection with any
3 pre-existing condition. A participating unit of local
4 government may also elect to cover its annuitants. Dependent
5 coverage shall be offered on an optional basis, with the
6 costs paid by the unit of local government, its employees, or
7 some combination of the two as determined by the unit of
8 local government. The unit of local government shall be
9 responsible for timely collection and transmission of
10 dependent premiums.
11 The Director shall annually determine monthly rates of
12 payment, subject to the following constraints:
13 (1) In the first year of coverage, the rates shall
14 be equal to the amount normally charged to State
15 employees for elected optional coverages or for enrolled
16 dependents coverages or other contributory coverages, or
17 contributed by the State for basic insurance coverages on
18 behalf of its employees, adjusted for differences between
19 State employees and employees of the local government in
20 age, sex, geographic location or other relevant
21 demographic variables, plus an amount sufficient to pay
22 for the additional administrative costs of providing
23 coverage to employees of the unit of local government and
24 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 unit of local
28 government.
29 In the case of coverage of local government employees
30 under a health maintenance organization, the Director shall
31 annually determine for each participating unit of local
32 government the maximum monthly amount the unit may contribute
33 toward that coverage, based on an analysis of (i) the age,
34 sex, geographic location, and other relevant demographic
-29- LRB9000902EGfgam21
1 variables of the unit's employees and (ii) the cost to cover
2 those employees under the State group health insurance plan.
3 The Director may similarly determine the maximum monthly
4 amount each unit of local government may contribute toward
5 coverage of its employees' dependents under a health
6 maintenance organization.
7 Monthly payments by the unit of local government or its
8 employees for group health insurance or health maintenance
9 organization coverage shall be deposited in the Local
10 Government Health Insurance Reserve Fund. The Local
11 Government Health Insurance Reserve Fund shall be a
12 continuing fund not subject to fiscal year limitations. All
13 expenditures from this fund shall be used for payments for
14 health care benefits for local government and rehabilitation
15 facility employees, annuitants, and dependents, and to
16 reimburse the Department or its administrative service
17 organization for all expenses incurred in the administration
18 of benefits. No other State funds may be used for these
19 purposes.
20 A local government employer's participation or desire to
21 participate in a program created under this subsection shall
22 not limit that employer's duty to bargain with the
23 representative of any collective bargaining unit of its
24 employees.
25 (j) Any rehabilitation facility within the State of
26 Illinois may apply to the Director to have its employees,
27 annuitants, and their dependents provided group health
28 coverage under this Act on a non-insured basis. To
29 participate, a rehabilitation facility must agree to enroll
30 all of its employees and remit the entire cost of providing
31 such coverage for its employees, except that the
32 rehabilitation facility shall not be required to enroll those
33 of its employees who are covered spouses or dependents under
34 this plan or another group policy or plan providing health
-30- LRB9000902EGfgam21
1 benefits as long as (1) an appropriate official from the
2 rehabilitation facility attests that each employee not
3 enrolled is a covered spouse or dependent under this plan or
4 another group policy or plan, and (2) at least 85% of the
5 employees are enrolled and the rehabilitation facility remits
6 the entire cost of providing coverage to those employees.
7 Employees of a participating rehabilitation facility who are
8 not enrolled due to coverage under another group health
9 policy or plan may enroll at a later date subject to
10 submission of satisfactory evidence of insurability and
11 provided that no benefits shall be payable for services
12 incurred during the first 6 months of coverage to the extent
13 the services are in connection with any pre-existing
14 condition. A participating rehabilitation facility may also
15 elect to cover its annuitants. Dependent coverage shall be
16 offered on an optional basis, with the costs paid by the
17 rehabilitation facility, its employees, or some combination
18 of the 2 as determined by the rehabilitation facility. The
19 rehabilitation facility shall be responsible for timely
20 collection and transmission of dependent premiums.
21 The Director shall annually determine quarterly rates of
22 payment, subject to the following constraints:
23 (1) In the first year of coverage, the rates shall
24 be equal to the amount normally charged to State
25 employees for elected optional coverages or for enrolled
26 dependents coverages or other contributory coverages on
27 behalf of its employees, adjusted for differences between
28 State employees and employees of the rehabilitation
29 facility in age, sex, geographic location or other
30 relevant demographic variables, plus an amount sufficient
31 to pay for the additional administrative costs of
32 providing coverage to employees of the rehabilitation
33 facility and their dependents.
34 (2) In subsequent years, a further adjustment shall
-31- LRB9000902EGfgam21
1 be made to reflect the actual prior years' claims
2 experience of the employees of the rehabilitation
3 facility.
4 Monthly payments by the rehabilitation facility or its
5 employees for group health insurance shall be deposited in
6 the Local Government Health Insurance Reserve Fund.
7 (k) Any domestic violence shelter or service within the
8 State of Illinois may apply to the Director to have its
9 employees, annuitants, and their dependents provided group
10 health coverage under this Act on a non-insured basis. To
11 participate, a domestic violence shelter or service must
12 agree to enroll all of its employees and pay the entire cost
13 of providing such coverage for its employees. A
14 participating domestic violence shelter may also elect to
15 cover its annuitants. Dependent coverage shall be offered on
16 an optional basis, with employees, or some combination of the
17 2 as determined by the domestic violence shelter or service.
18 The domestic violence shelter or service shall be responsible
19 for timely collection and transmission of dependent premiums.
20 The Director shall annually determine quarterly rates of
21 payment, subject to the following constraints:
22 (1) In the first year of coverage, the rates shall
23 be equal to the amount normally charged to State
24 employees for elected optional coverages or for enrolled
25 dependents coverages or other contributory coverages on
26 behalf of its employees, adjusted for differences between
27 State employees and employees of the domestic violence
28 shelter or service in age, sex, geographic location or
29 other relevant demographic variables, plus an amount
30 sufficient to pay for the additional administrative costs
31 of providing coverage to employees of the domestic
32 violence shelter or service and their dependents.
33 (2) In subsequent years, a further adjustment shall
34 be made to reflect the actual prior years' claims
-32- LRB9000902EGfgam21
1 experience of the employees of the domestic violence
2 shelter or service.
3 (3) In no case shall the rate be less than the
4 amount normally charged to State employees or contributed
5 by the State on behalf of its employees.
6 Monthly payments by the domestic violence shelter or
7 service or its employees for group health insurance shall be
8 deposited in the Local Government Health Insurance Reserve
9 Fund.
10 (l) A public community college or entity organized
11 pursuant to the Public Community College Act may apply to the
12 Director initially to have only annuitants not covered prior
13 to July 1, 1992 by the district's health plan provided health
14 coverage under this Act on a non-insured basis. The
15 community college must execute a 2-year contract to
16 participate in the Local Government Health Plan. Those
17 annuitants enrolled initially under this contract shall have
18 no benefits payable for services incurred during the first 6
19 months of coverage to the extent the services are in
20 connection with any pre-existing condition. Any annuitant
21 who may enroll after this initial enrollment period shall be
22 subject to submission of satisfactory evidence of
23 insurability and to the pre-existing conditions limitation.
24 The Director shall annually determine monthly rates of
25 payment subject to the following constraints: for those
26 community colleges with annuitants only enrolled, first year
27 rates shall be equal to the average cost to cover claims for
28 a State member adjusted for demographics, Medicare
29 participation, and other factors; and in the second year, a
30 further adjustment of rates shall be made to reflect the
31 actual first year's claims experience of the covered
32 annuitants.
33 (m) The Director shall adopt any rules deemed necessary
34 for implementation of this amendatory Act of 1989 (Public Act
-33- LRB9000902EGfgam21
1 86-978).
2 (Source: P.A. 88-45; 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
3 89-324, eff. 8-13-95; 89-626, eff. 8-9-96.)
4 Section 10. The State Finance Act is amended by changing
5 Section 14a as follows:
6 (30 ILCS 105/14a) (from Ch. 127, par. 150a)
7 Sec. 14a. Payments for unused benefits; use of sick
8 leave.
9 (a) Upon the death of a State employee, his or her
10 estate is entitled to receive from the appropriation for
11 personal services available for payment of his or her
12 compensation such sum for any accrued vacation period,
13 accrued overtime, and accrued qualifying sick leave as would
14 have been paid or allowed to such employee had he or she
15 survived and terminated his or her employment.
16 The State Comptroller shall draw a his warrant or
17 warrants against the appropriation, upon receipt of a proper
18 death certificate, payable to decedent's estate, or if no
19 estate is opened, to the person or persons entitled thereto
20 under Section 25-1 of the Probate Act of 1975 upon receipt of
21 the affidavit referred to in that Section, for the sum due.
22 (b) The Department of Central Management Services shall
23 prescribe by rule the method of computing the accrued
24 vacation period and accrued overtime for all employees,
25 including those not otherwise subject to its jurisdiction,
26 and for the purposes of this Act the Department of Central
27 Management Services may require such reports as it deems
28 necessary. Accrued sick leave shall be computed as provided
29 in subsection (f) by multiplying 1/2 of the number of days of
30 accumulated sick leave by the daily rate of compensation
31 applicable to the employee at the time of his death,
32 retirement, resignation or other termination of service
-34- LRB9000902EGfgam21
1 described in this Section.
2 (c) Upon the retirement or resignation of a State
3 employee from State service, his or her accrued vacation,
4 overtime and qualifying sick leave shall be payable to the
5 employee in a single lump sum payment. However, if the
6 employee returns to employment in any capacity with the same
7 agency or department within 30 days of the termination of his
8 or her previous State employment, the employee must, as a
9 condition of his or her new State employment, repay the lump
10 sum amount within 30 days after his or her new State
11 employment commences. The amount repaid shall be deposited
12 into the fund from which the payment was made or the General
13 Revenue Fund, and the accrued vacation, overtime and sick
14 leave upon which the lump sum payment was based shall be
15 credited to the account of the employee in accordance with
16 the rules of the jurisdiction under which he or she is
17 employed.
18 (d) Upon the movement of a State employee from a
19 position subject to the Personnel Code to another State
20 position not subject to the Personnel Code, or to a position
21 subject to the Personnel Code from a State position not
22 subject to the Personnel Code, or upon the movement of a
23 State employee of an institution or agency subject to the
24 State Universities Civil Service System from one such
25 institution or agency to another such institution or agency,
26 his or her accrued vacation, overtime and sick leave shall be
27 credited to the employee's account in accordance with the
28 rules of the jurisdiction to which the State employee moved.
29 However, if the rules preclude crediting the State employee's
30 total accrued vacation, overtime or sick leave to his or her
31 account at the jurisdiction to which he or she is to move,
32 the nontransferable nontransferrable accrued vacation,
33 overtime, and qualifying or sick leave shall be payable to
34 the employee in a single lump sum payment by the jurisdiction
-35- LRB9000902EGfgam21
1 from which he or she moved.
2 (e) Upon the death of a State employee or the
3 retirement, indeterminate layoff or resignation of a State
4 employee from State service, the employee's retirement or
5 disability benefits shall be computed as if the employee had
6 remained in the State employment at his or her most recent
7 rate of compensation until his or her accumulated unused
8 leave for vacation, overtime, sickness and personal business
9 would have been exhausted. The employing agency shall
10 certify, in writing to the employee, the unused leaves the
11 employee has accrued. This certification may be held by the
12 employee or forwarded to the retirement fund. Employing
13 agencies not covered by the Personnel Code shall certify, in
14 writing to the employee, the unused leaves the employee has
15 accrued.
16 (f) Accrued sick leave shall be computed by multiplying
17 1/2 of the number of days of accumulated sick leave by the
18 daily rate of compensation applicable to the employee at the
19 time of his or her death, retirement, resignation, or other
20 termination of service described in this Section.
21 The payment for qualifying accrued sick leave after the
22 employee's death, retirement, resignation, or other
23 termination of service provided by Public Act 83-976 shall be
24 for sick leave days earned on or after January 1, 1984 and
25 before January 1, 1998. Sick leave accumulated on or after
26 January 1, 1998 is not compensable under this Section at the
27 time of the employee's death, retirement, resignation, or
28 other termination of service, but may be used to establish
29 retirement system service credit as provided in the Illinois
30 Pension Code.
31 The Department of Central Management Services shall
32 prescribe by rule the method of computing the accrued sick
33 leave days for all employees, including those not otherwise
34 subject to its jurisdiction. Beginning January 1, 1998, sick
-36- LRB9000902EGfgam21
1 leave used by an employee shall be charged against his or her
2 accumulated sick leave in the following order: first, sick
3 leave accumulated before January 1, 1984; then sick leave
4 accumulated on or after January 1, 1998; and finally sick
5 leave accumulated on or after January 1, 1984 but before
6 January 1, 1998.
7 (Source: P.A. 87-384; 87-721; 87-895; 87-1234.)
8 Section 15. The Illinois Pension Code is amended by
9 changing Sections 14-103.12, 14-108, 14-431, 15-134, 15-135,
10 and 15-136 as follows:
11 (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
12 Sec. 14-103.12. Final average compensation.
13 (a) For retirement and survivor annuities, "final
14 average compensation" means the monthly compensation obtained
15 by dividing the total compensation of an employee during the
16 period of: (1) the 48 consecutive months of service within
17 the last 120 months of service in which the total
18 compensation was the highest, or (2) the total period of
19 service, if less than 48 months, by the number of months of
20 service in such period; provided that for purposes of a
21 retirement annuity the average compensation for the last 12
22 months of the 48-month period shall not exceed the final
23 average compensation by more than 25%.
24 (b) For death and disability benefits, in the case of a
25 full-time employee, "final average compensation" means the
26 greater of (1) the rate of compensation of the employee at
27 the date of death or disability multiplied by 1 in the case
28 of a salaried employee, by 174 in the case of an hourly
29 employee, and by 22 in the case of a per diem employee, or
30 (2) for benefits commencing on or after January 1, 1991,
31 final average compensation as determined under subsection
32 (a).
-37- LRB9000902EGfgam21
1 For purposes of this paragraph, full or part-time status
2 shall be certified by the employing agency. Final rate of
3 compensation for a part-time employee shall be the total
4 compensation earned during the last full calendar month prior
5 to the date of death or disability.
6 (c) Notwithstanding the provisions of subsection (a),
7 for the purpose of calculating retirement and survivor
8 annuities of persons with at least 20 years of eligible
9 creditable service as defined in Section 14-110 a State
10 policeman, "final average compensation" means the monthly
11 rate of compensation received by the person on the last day
12 of eligible creditable service (but not to exceed 115% of the
13 average monthly compensation received by the person for the
14 last 24 months of service, unless the person was in service
15 as a State policeman before the effective date of this
16 amendatory Act of 1997), or the average monthly compensation
17 received by the person for the last 48 months of service
18 prior to retirement, whichever is greater.
19 (d) Notwithstanding the provisions of subsection (a),
20 for a person who was receiving, on the date of retirement or
21 death, a disability benefit calculated under subdivision
22 (b)(2) of this Section, the final average compensation used
23 to calculate the disability benefit may be used for purposes
24 of calculating the retirement and survivor annuities.
25 (e) In computing the final average compensation, periods
26 of military leave shall not be considered.
27 (f) The changes to this Section made by this amendatory
28 Act of 1997 (redefining final average compensation for
29 members under the alternative formula) apply to members who
30 retire on or after January 1, 1998, without regard to whether
31 employment terminated before the effective date of this
32 amendatory Act of 1997.
33 (Source: P.A. 86-273; 86-1488.)
-38- LRB9000902EGfgam21
1 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
2 (Text of Section before amendment by P.A. 89-507)
3 Sec. 14-108. Amount of retirement annuity. A member who
4 has contributed to the System for at least 12 months, shall
5 be entitled to a prior service annuity for each year of
6 certified prior service credited to him, except that a member
7 shall receive 1/3 of the prior service annuity for each year
8 of service for which contributions have been made and all of
9 such annuity shall be payable after the member has made
10 contributions for a period of 3 years. Proportionate amounts
11 shall be payable for service of less than a full year after
12 completion of at least 12 months.
13 The total period of service to be considered in
14 establishing the measure of prior service annuity shall
15 include service credited in the Teachers' Retirement System
16 of the State of Illinois and the State Universities
17 Retirement System for which contributions have been made by
18 the member to such systems; provided that at least 1 year of
19 the total period of 3 years prescribed for the allowance of a
20 full measure of prior service annuity shall consist of
21 membership service in this System for which credit has been
22 granted.
23 (a) In the case of a member who retires on or after
24 January 1, 1998 and is a noncovered employee, the retirement
25 annuity for membership service and prior service shall be
26 2.2% 1.67% of final average compensation for each of the
27 first 10 years of service; 1.90% for each of the next 10
28 years of service; 2.10% for each year of service in excess of
29 20 but not exceeding 30; and 2.30% for each year in excess of
30 30. Any service credit established as a covered employee
31 shall be considered in determining the applicable percentages
32 and computed as stated in paragraph (b).
33 (b) In the case of a member who retires on or after
34 January 1, 1998 and is a covered employee, the retirement
-39- LRB9000902EGfgam21
1 annuity for membership service and prior service shall be
2 computed as stated in paragraph (a) for all service credit
3 established as a noncovered employee; for service credit
4 established as a covered employee it shall be 1.67% of final
5 average compensation 1% for each of the first 10 years of
6 service; 1.10% for each of the next 10 years of service;
7 1.30% for each year of service in excess of 20 but not
8 exceeding 30; and 1.50% for each year of service in excess of
9 30. Any service credit established as a noncovered employee
10 shall be considered in determining the applicable
11 percentages.
12 (c) For a member with 30 but less than 35 years of
13 creditable service retiring after attaining age 55 but before
14 age 60, the retirement annuity shall be reduced by 1/2 of 1%
15 for each month that the member's age is under age 60 at the
16 time of retirement.
17 (d) A retirement annuity shall not exceed 75% of final
18 average compensation, subject to such extension as may result
19 from the application of Section 14-114 or Section 14-115.
20 (e) The retirement annuity payable to any covered
21 employee who is a member of the System and in service on
22 January 1, 1969, or in service thereafter in 1969 as a result
23 of legislation enacted by the Illinois General Assembly
24 transferring the member to State employment from county
25 employment in a county Department of Public Aid in counties
26 of 3,000,000 or more population, under a plan of coordination
27 with the Old Age, Survivors and Disability provisions
28 thereof, if not fully insured for Old Age Insurance payments
29 under the Federal Old Age, Survivors and Disability Insurance
30 provisions at the date of acceptance of a retirement annuity,
31 shall not be less than the amount for which the member would
32 have been eligible if coordination were not applicable.
33 (f) The retirement annuity payable to any covered
34 employee who is a member of the System and in service on
-40- LRB9000902EGfgam21
1 January 1, 1969, or in service thereafter in 1969 as a result
2 of the legislation designated in the immediately preceding
3 paragraph, if fully insured for Old Age Insurance payments
4 under the federal Social Security Act at the date of
5 acceptance of a retirement annuity, shall not be less than an
6 amount which when added to the Primary Insurance Benefit
7 payable to the member upon attainment of age 65 under such
8 federal Act, will equal the annuity which would otherwise be
9 payable if the coordinated plan of coverage were not
10 applicable.
11 (g) In the case of a member who is a noncovered
12 employee, the retirement annuity for membership service as a
13 full-time security employee of the Department of Corrections
14 or security employee of the Department of Mental Health and
15 Developmental Disabilities shall be 1.9% of final average
16 compensation for each of the first 10 years of service; 2.1%
17 for each of the next 10 years of service; 2.25% for each year
18 of service in excess of 20 but not exceeding 30; and 2.5% for
19 each year in excess of 30; except that the annuity may be
20 calculated under subsection (a) rather than this subsection
21 (g) if the resulting annuity is greater.
22 (h) In the case of a member who is a covered employee,
23 the retirement annuity for membership service as a full-time
24 security employee of the Department of Corrections or
25 security employee of the Department of Mental Health and
26 Developmental Disabilities shall be 1.67% of final average
27 compensation for each of the first 10 years of service; 1.90%
28 for each of the next 10 years of service; 2.10% for each year
29 of service in excess of 20 but not exceeding 30; and 2.30%
30 for each year in excess of 30.
31 (i) For the purposes of this Section and Section 14-133
32 of this Act, the term "security employee of the Department of
33 Corrections" and the term "security employee of the
34 Department of Mental Health and Developmental Disabilities"
-41- LRB9000902EGfgam21
1 shall have the meanings ascribed to them in subsection (c) of
2 Section 14-110.
3 (j) The retirement annuity computed pursuant to
4 paragraphs (g) or (h) shall be applicable only to those
5 security employees of the Department of Corrections and
6 security employees of the Department of Mental Health and
7 Developmental Disabilities who have at least 20 years of
8 membership service and who are not eligible for the
9 alternative retirement annuity provided under Section 14-110.
10 However, persons transferring to this System under Section
11 14-108.2 who have service credit under Article 16 of this
12 Code may count such service toward establishing their
13 eligibility under the 20-year service requirement of this
14 subsection; but such service may be used only for
15 establishing such eligibility, and not for the purpose of
16 increasing or calculating any benefit.
17 (k) (Blank). In the case of a member who has at least 10
18 years of creditable service as a court reporter, the
19 retirement annuity for service as a court reporter shall be
20 2.2% of final average compensation for each year of such
21 service as a noncovered employee, and 1.5% of final average
22 compensation for each year of such service as a covered
23 employee.
24 (l) The changes to this Section made by this amendatory
25 Act of 1997 (changing certain retirement annuity formulas
26 from a stepped rate to a flat rate) apply to members who
27 retire on or after January 1, 1998, without regard to whether
28 employment terminated before the effective date of this
29 amendatory Act of 1997. An annuity shall not be calculated
30 in steps by using the new flat rate for some steps and the
31 superseded stepped rate for other steps of the same type of
32 service.
33 (Source: P.A. 86-272; 86-273; 86-1028.)
34 (Text of Section after amendment by P.A. 89-507)
-42- LRB9000902EGfgam21
1 Sec. 14-108. Amount of retirement annuity. A member who
2 has contributed to the System for at least 12 months, shall
3 be entitled to a prior service annuity for each year of
4 certified prior service credited to him, except that a member
5 shall receive 1/3 of the prior service annuity for each year
6 of service for which contributions have been made and all of
7 such annuity shall be payable after the member has made
8 contributions for a period of 3 years. Proportionate amounts
9 shall be payable for service of less than a full year after
10 completion of at least 12 months.
11 The total period of service to be considered in
12 establishing the measure of prior service annuity shall
13 include service credited in the Teachers' Retirement System
14 of the State of Illinois and the State Universities
15 Retirement System for which contributions have been made by
16 the member to such systems; provided that at least 1 year of
17 the total period of 3 years prescribed for the allowance of a
18 full measure of prior service annuity shall consist of
19 membership service in this system for which credit has been
20 granted.
21 (a) In the case of a member who retires on or after
22 January 1, 1998 and is a noncovered employee, the retirement
23 annuity for membership service and prior service shall be
24 2.2% 1.67% of final average compensation for each of the
25 first 10 years of service; 1.90% for each of the next 10
26 ears of service; 2.10% for each year of service in excess of
27 20 but not exceeding 30; and 2.30% for each year in excess of
28 30. Any service credit established as a covered employee
29 shall be considered in determining the applicable percentages
30 and computed as stated in paragraph (b).
31 (b) In the case of a member who retires on or after
32 January 1, 1998 and is a covered employee, the retirement
33 annuity for membership service and prior service shall be
34 computed as stated in paragraph (a) for all service credit
-43- LRB9000902EGfgam21
1 established as a noncovered employee; for service credit
2 established as a covered employee it shall be 1.67% of final
3 average compensation 1% for each of the first 10 years of
4 service; 1.10% for each of the next 10 years of service;
5 1.30% for each year of service in excess of 20 but not
6 exceeding 30; and 1.50% for each year of service in excess of
7 30. Any service credit established as a noncovered employee
8 shall be considered in determining the applicable
9 percentages.
10 (c) For a member with 30 but less than 35 years of
11 creditable service retiring after attaining age 55 but before
12 age 60, the retirement annuity shall be reduced by 1/2 of 1%
13 for each month that the member's age is under age 60 at the
14 time of retirement.
15 (d) A retirement annuity shall not exceed 75% of final
16 average compensation, subject to such extension as may result
17 from the application of Section 14-114 or Section 14-115.
18 (e) The retirement annuity payable to any covered
19 employee who is a member of the System and in service on
20 January 1, 1969, or in service thereafter in 1969 as a result
21 of legislation enacted by the Illinois General Assembly
22 transferring the member to State employment from county
23 employment in a county Department of Public Aid in counties
24 of 3,000,000 or more population, under a plan of coordination
25 with the Old Age, Survivors and Disability provisions
26 thereof, if not fully insured for Old Age Insurance payments
27 under the Federal Old Age, Survivors and Disability Insurance
28 provisions at the date of acceptance of a retirement annuity,
29 shall not be less than the amount for which the member would
30 have been eligible if coordination were not applicable.
31 (f) The retirement annuity payable to any covered
32 employee who is a member of the System and in service on
33 January 1, 1969, or in service thereafter in 1969 as a result
34 of the legislation designated in the immediately preceding
-44- LRB9000902EGfgam21
1 paragraph, if fully insured for Old Age Insurance payments
2 under the Federal Social Security Act at the date of
3 acceptance of a retirement annuity, shall not be less than an
4 amount which when added to the Primary Insurance Benefit
5 payable to the member upon attainment of age 65 under such
6 Federal Act, will equal the annuity which would otherwise be
7 payable if the coordinated plan of coverage were not
8 applicable.
9 (g) In the case of a member who is a noncovered
10 employee, the retirement annuity for membership service as a
11 full-time security employee of the Department of Corrections
12 or security employee of the Department of Human Services
13 shall be 1.9% of final average compensation for each of the
14 first 10 years of service; 2.1% for each of the next 10 years
15 of service; 2.25% for each year of service in excess of 20
16 but not exceeding 30; and 2.5% for each year in excess of 30;
17 except that the annuity may be calculated under subsection
18 (a) rather than this subsection (g) if the resulting annuity
19 is greater.
20 (h) In the case of a member who is a covered employee,
21 the retirement annuity for membership service as a full-time
22 security employee of the Department of Corrections or
23 security employee of the Department of Human Services shall
24 be 1.67% of final average compensation for each of the first
25 10 years of service; 1.90% for each of the next 10 years of
26 service; 2.10% for each year of service in excess of 20 but
27 not exceeding 30; and 2.30% for each year in excess of 30.
28 (i) For the purposes of this Section and Section 14-133
29 of this Act, the term "security employee of the Department of
30 Corrections" and the term "security employee of the
31 Department of Human Services" shall have the meanings
32 ascribed to them in subsection (c) of Section 14-110.
33 (j) The retirement annuity computed pursuant to
34 paragraphs (g) or (h) shall be applicable only to those
-45- LRB9000902EGfgam21
1 security employees of the Department of Corrections and
2 security employees of the Department of Human Services who
3 have at least 20 years of membership service and who are not
4 eligible for the alternative retirement annuity provided
5 under Section 14-110. However, persons transferring to this
6 System under Section 14-108.2 who have service credit under
7 Article 16 of this Code may count such service toward
8 establishing their eligibility under the 20-year service
9 requirement of this subsection; but such service may be used
10 only for establishing such eligibility, and not for the
11 purpose of increasing or calculating any benefit.
12 (k) (Blank). In the case of a member who has at least 10
13 years of creditable service as a court reporter, the
14 retirement annuity for service as a court reporter shall be
15 2.2% of final average compensation for each year of such
16 service as a noncovered employee, and 1.5% of final average
17 compensation for each year of such service as a covered
18 employee.
19 (l) The changes to this Section made by this amendatory
20 Act of 1997 (changing certain retirement annuity formulas
21 from a stepped rate to a flat rate) apply to members who
22 retire on or after January 1, 1998, without regard to whether
23 employment terminated before the effective date of this
24 amendatory Act of 1997. An annuity shall not be calculated
25 in steps by using the new flat rate for some steps and the
26 superseded stepped rate for other steps of the same type of
27 service.
28 (Source: P.A. 89-507, eff. 7-1-97.)
29 (40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
30 Sec. 14-131. Contributions by State.
31 (a) The State shall make contributions to the System by
32 appropriations of amounts which, together with other employer
33 contributions from trust, federal, and other funds, employee
-46- LRB9000902EGfgam21
1 contributions, investment income, and other income, will be
2 sufficient to meet the cost of maintaining and administering
3 the System on a 90% funded basis in accordance with actuarial
4 recommendations.
5 For the purposes of this Section and Section 14-135.08,
6 references to State contributions refer only to employer
7 contributions and do not include employee contributions that
8 are picked up or otherwise paid by the State or a department
9 on behalf of the employee.
10 (b) The Board shall determine the total amount of State
11 contributions required for each fiscal year on the basis of
12 the actuarial tables and other assumptions adopted by the
13 Board, using the formula in subsection (e).
14 The Board shall also determine a State contribution rate
15 for each fiscal year, expressed as a percentage of payroll,
16 based on the total required State contribution for that
17 fiscal year (less the amount received by the System from
18 appropriations under Section 8.12 of the State Finance Act
19 and Section 1 of the State Pension Funds Continuing
20 Appropriation Act, if any, for the fiscal year ending on the
21 June 30 immediately preceding the applicable November 15
22 certification deadline), the estimated payroll (including all
23 forms of compensation) for personal services rendered by
24 eligible employees, and the recommendations of the actuary.
25 For the purposes of this Section and Section 14.1 of the
26 State Finance Act, the term "eligible employees" includes
27 employees who participate in the System, persons who may
28 elect to participate in the System but have not so elected,
29 persons who are serving a qualifying period that is required
30 for participation, and annuitants employed by a department as
31 described in subdivision (a)(1) or (a)(2) of Section 14-111.
32 (c) Contributions shall be made by the several
33 departments for each pay period by warrants drawn by the
34 State Comptroller against their respective funds or
-47- LRB9000902EGfgam21
1 appropriations based upon vouchers stating the amount to be
2 so contributed. These amounts shall be based on the full
3 rate certified by the Board under Section 14-135.08 for that
4 fiscal year.
5 (d) If an employee is paid from trust funds or federal
6 funds, the department or other employer shall pay employer
7 contributions from those funds to the System at the certified
8 rate, unless the terms of the trust or the federal-State
9 agreement preclude the use of the funds for that purpose, in
10 which case the required employer contributions shall be paid
11 by the State.
12 (e) For State fiscal years 2011 through 2045, the
13 minimum contribution to the System to be made by the State
14 for each fiscal year shall be an amount determined by the
15 System to be sufficient to bring the total assets of the
16 System up to 90% of the total actuarial liabilities of the
17 System by the end of State fiscal year 2045. In making these
18 determinations, the required State contribution shall be
19 calculated each year as a level percentage of payroll over
20 the years remaining to and including fiscal year 2045 and
21 shall be determined under the projected unit credit actuarial
22 cost method.
23 For State fiscal years 1996 through 2010, the State
24 contribution to the System, as a percentage of the applicable
25 employee payroll, shall be increased in equal annual
26 increments so that by State fiscal year 2011, the State is
27 contributing at the rate required under this Section; except
28 that (i) for State fiscal year 1998, for all purposes of this
29 Code and any other law of this State, the certified
30 percentage of the applicable employee payroll shall be 5.052%
31 for employees earning eligible creditable service under
32 Section 14-110 and 6.500% for all other employees,
33 notwithstanding any contrary certification made under Section
34 14-135.08 before the effective date of this amendatory Act of
-48- LRB9000902EGfgam21
1 1997, and (ii) in the following specified State fiscal years,
2 the State contribution to the System shall not be less than
3 the following indicated percentages of the applicable
4 employee payroll, even if the indicated percentage will
5 produce a State contribution in excess of the amount
6 otherwise required under this subsection and subsection (a):
7 9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in
8 FY 2002; 10.6% in FY 2003; 10.8% in FY 2004; 11.0% in FY
9 2005; 11.2% in FY 2006; 11.4% in FY 2007; 11.6% in FY 2008;
10 and 11.8% in FY 2009.
11 Beginning in State fiscal year 2046, the minimum State
12 contribution for each fiscal year shall be the amount needed
13 to maintain the total assets of the System at 90% of the
14 total actuarial liabilities of the System.
15 (Source: P.A. 88-593, eff. 8-22-94; 89-136, eff. 7-14-95.)
16 (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
17 Sec. 15-134. Participant.
18 (a) Each person shall, as a condition of employment,
19 become a participant and be subject to this Article on the
20 date that he or she becomes an employee.
21 An employee who becomes a participant shall continue to
22 be a participant until he or she becomes an annuitant, dies
23 or accepts a refund of contributions, except that a person
24 shall not be deemed a participant while participating in an
25 optional program for part-time workers established under
26 Section 15-158.1 or participating in an optional program for
27 employees established under Section 15-158.2.
28 (b) A person employed concurrently by 2 or more
29 employers is eligible to participate in the system on
30 compensation received from all employers; however, his or her
31 combined basic compensation and combined earnings shall not
32 exceed the basic compensation and earnings which would have
33 been payable for full-time employment by the employer under
-49- LRB9000902EGfgam21
1 which the employee's basic compensation is the highest.
2 However, effective for all employment on or after July 1,
3 1991, where a person is employed to render service to one
4 employer during an academic or summer term and is employed by
5 another employer to render service to it during the
6 succeeding, nonoverlapping academic or summer term, then
7 exclusively for the purposes of this Section, the person
8 shall be considered to be successively employed by more than
9 one employer, rather than concurrently employed by 2 or more
10 employers.
11 (Source: P.A. 89-430, eff. 12-15-95.)
12 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
13 Sec. 15-135. Retirement annuities - Conditions.
14 (a) A participant who retires in one of the following
15 specified years with the specified amount of 35 or more years
16 of service is entitled to a retirement annuity at any age:
17 35 years if retirement is in 1997 or before;
18 34 years if retirement is in 1998;
19 33 years if retirement is in 1999;
20 32 years if retirement is in 2000;
21 31 years if retirement is in 2001;
22 30 years if retirement is in 2002;
23 35 years if retirement is in 2003 or later.
24 A participant with 8 or more years of service after
25 September 1, 1941, is entitled to a retirement annuity on or
26 after attainment of age 55.
27 A participant with at least 5 but less than 8 years of
28 service after September 1, 1941, is entitled to a retirement
29 annuity on or after attainment of age 62.
30 A participant who has at least 25 years of service in
31 this system as a police officer or firefighter is entitled to
32 a retirement annuity on or after the attainment of age 50, if
33 Rule 4 of Section 15-136 is applicable to the participant.
-50- LRB9000902EGfgam21
1 (b) The annuity payment period shall begin on the date
2 specified by the participant submitting a written
3 application, which date shall not be prior to termination of
4 employment or more than one year before the application is
5 received by the board; however, if the participant is not an
6 employee on April 1 following the attainment of age 70 1/2,
7 the annuity payment period shall begin on that date.
8 (c) An annuity is not payable if the amount provided
9 under Section 15-136 is less than $10 per month.
10 (Source: P.A. 86-273.)
11 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
12 Sec. 15-136. Retirement annuities - Amount.
13 (a) The amount of the retirement annuity shall be
14 determined by whichever of the following rules is applicable
15 and provides the largest annuity:
16 Rule 1: The retirement annuity shall be 1.67% of final
17 rate of earnings for each of the first 10 years of service,
18 1.90% for each of the next 10 years of service, 2.10% for
19 each year of service in excess of 20 but not exceeding 30,
20 and 2.30% for each year in excess of 30; or for persons who
21 retire on or after January 1, 1998, 2.2% of the final rate of
22 earnings for each year of service.
23 Rule 2: The retirement annuity shall be the sum of the
24 following, determined from amounts credited to the
25 participant in accordance with the actuarial tables and the
26 prescribed rate of interest in effect at the time the
27 retirement annuity begins:
28 (i) The normal annuity which can be provided on an
29 actuarially actuarial equivalent basis, by the
30 accumulated normal contributions as of the date the
31 annuity begins; and
32 (ii) an annuity from employer contributions of an
33 amount which can be provided on an actuarially equivalent
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1 basis from the accumulated normal contributions made by
2 the participant under Section 15-113.6 and Section
3 15-113.7 plus 1.4 times all other accumulated normal
4 contributions made by the participant.
5 Rule 3: The retirement annuity of a participant who is
6 employed at least one-half time during the period on which
7 his or her final rate of earnings is based, shall be equal to
8 the participant's years of service not to exceed 30,
9 multiplied by (1) $96 if the participant's final rate of
10 earnings is less than $3,500, (2) $108 if the final rate of
11 earnings is at least $3,500 but less than $4,500, (3) $120 if
12 the final rate of earnings is at least $4,500 but less than
13 $5,500, (4) $132 if the final rate of earnings is at least
14 $5,500 but less than $6,500, (5) $144 if the final rate of
15 earnings is at least $6,500 but less than $7,500, (6) $156 if
16 the final rate of earnings is at least $7,500 but less than
17 $8,500, (7) $168 if the final rate of earnings is at least
18 $8,500 but less than $9,500, and (8) $180 if the final rate
19 of earnings is $9,500 or more.
20 Rule 4: A participant who is at least age 50 and has 25
21 or more years of service as a police officer or firefighter,
22 and a participant who is age 55 or over and has at least 20
23 but less than 25 years of service as a police officer or
24 firefighter, shall be entitled to a retirement annuity of
25 2 1/4% of the final rate of earnings for each of the first 10
26 years of service as a police officer or firefighter, 2 1/2%
27 for each of the next 10 years of service as a police officer
28 or firefighter, and 2 3/4% for each year of service as a
29 police officer or firefighter in excess of 20. The
30 retirement annuity for all other service shall be computed
31 under Rule 1.
32 (b) The retirement annuity provided under Rules 1 and 3
33 above shall be reduced by 1/2 of 1% for each month the
34 participant is under age 60 at the time of retirement.
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1 However, this reduction shall not apply in the following
2 cases:
3 (1) For a disabled participant whose disability
4 benefits have been discontinued because he or she has
5 exhausted eligibility for disability benefits under
6 clause (6) (5) of Section 15-152;
7 (2) For a participant who has at least the number
8 of 35 years of service required to retire at any age
9 under subsection (a) of Section 15-135; or
10 (3) For that portion of a retirement annuity which
11 has been provided on account of service of the
12 participant during periods when he or she performed the
13 duties of a police officer or firefighter, if these
14 duties were performed for at least 5 years immediately
15 preceding the date the retirement annuity is to begin.
16 (c) The maximum retirement annuity provided under Rules
17 1, 2, and 4 shall be the lesser of (1) the annual limit of
18 benefits as specified in Section 415 of the Internal Revenue
19 Code of 1986, as such Section may be amended from time to
20 time and as such benefit limits shall be adjusted by the
21 Commissioner of Internal Revenue, and (2) 80% 75% of final
22 rate of earnings; however, this limitation of 75% of final
23 rate of earnings shall not apply to a person who is a
24 participant or annuitant on September 15, 1977 if it results
25 in a retirement annuity less than that which is payable to
26 the annuitant or which would have been payable to the
27 participant under the provisions of this Article in effect on
28 June 30, 1977.
29 (d) An annuitant whose status as an employee terminates
30 after August 14, 1969 shall receive automatic increases in
31 his or her retirement annuity as follows:
32 Effective January 1 immediately following the date the
33 retirement annuity begins, the annuitant shall receive an
34 increase in his or her monthly retirement annuity of 0.125%
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1 of the monthly retirement annuity provided under Rule 1, Rule
2 2, Rule 3, or Rule 4, contained in this Section, multiplied
3 by the number of full months which elapsed from the date the
4 retirement annuity payments began to January 1, 1972, plus
5 0.1667% of such annuity, multiplied by the number of full
6 months which elapsed from January 1, 1972, or the date the
7 retirement annuity payments began, whichever is later, to
8 January 1, 1978, plus 0.25% of such annuity multiplied by the
9 number of full months which elapsed from January 1, 1978, or
10 the date the retirement annuity payments began, whichever is
11 later, to the effective date of the increase.
12 The annuitant shall receive an increase in his or her
13 monthly retirement annuity on each January 1 thereafter
14 during the annuitant's life of 3% of the monthly annuity
15 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
16 this Section. The change made under this subsection by P.A.
17 81-970 is effective January 1, 1980 and applies to each
18 annuitant whose status as an employee terminates before or
19 after that date.
20 Beginning January 1, 1990, all automatic annual increases
21 payable under this Section shall be calculated as a
22 percentage of the total annuity payable at the time of the
23 increase, including all increases previously granted under
24 this Article. The change made in this subsection by P.A.
25 85-1008 is effective January 26, 1988, and is applicable
26 without regard to whether status as an employee terminated
27 before that date.
28 (e) If, on January 1, 1987, or the date the retirement
29 annuity payment period begins, whichever is later, the sum of
30 the retirement annuity provided under Rule 1 or Rule 2 of
31 this Section and the automatic annual increases provided
32 under the preceding subsection or Section 15-136.1, amounts
33 to less than the retirement annuity which would be provided
34 by Rule 3, the retirement annuity shall be increased as of
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1 January 1, 1987, or the date the retirement annuity payment
2 period begins, whichever is later, to the amount which would
3 be provided by Rule 3 of this Section. Such increased amount
4 shall be considered as the retirement annuity in determining
5 benefits provided under other Sections of this Article. This
6 paragraph applies without regard to whether status as an
7 employee terminated before the effective date of this
8 amendatory Act of 1987, provided that the annuitant was
9 employed at least one-half time during the period on which
10 the final rate of earnings was based.
11 (f) A participant is entitled to such additional annuity
12 as may be provided on an actuarial equivalent basis, by any
13 accumulated additional contributions to his or her credit.
14 However, the additional contributions made by the participant
15 toward the automatic increases in annuity provided under this
16 Section shall not be taken into account in determining the
17 amount of such additional annuity.
18 (g) If, (1) by law, a function of a governmental unit,
19 as defined by Section 20-107 of this Code, is transferred in
20 whole or in part to an employer, and (2) a participant
21 transfers employment from such governmental unit to such
22 employer within 6 months after the transfer of the function,
23 and (3) the sum of (A) the annuity payable to the participant
24 under Rule 1, 2, or 3 of this Section (B) all proportional
25 annuities payable to the participant by all other retirement
26 systems covered by Article 20, and (C) the initial primary
27 insurance amount to which the participant is entitled under
28 the Social Security Act, is less than the retirement annuity
29 which would have been payable if all of the participant's
30 pension credits validated under Section 20-109 had been
31 validated under this system, a supplemental annuity equal to
32 the difference in such amounts shall be payable to the
33 participant.
34 (h) On January 1, 1981, an annuitant who was receiving a
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1 retirement annuity on or before January 1, 1971 shall have
2 his or her retirement annuity then being paid increased $1
3 per month for each year of creditable service. On January 1,
4 1982, an annuitant whose retirement annuity began on or
5 before January 1, 1977, shall have his or her retirement
6 annuity then being paid increased $1 per month for each year
7 of creditable service.
8 (i) On January 1, 1987, any annuitant whose retirement
9 annuity began on or before January 1, 1977, shall have the
10 monthly retirement annuity increased by an amount equal to 8¢
11 per year of creditable service times the number of years that
12 have elapsed since the annuity began.
13 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
14 Section 95. No acceleration or delay. Where this Act
15 makes changes in a statute that is represented in this Act by
16 text that is not yet or no longer in effect (for example, a
17 Section represented by multiple versions), the use of that
18 text does not accelerate or delay the taking effect of (i)
19 the changes made by this Act or (ii) provisions derived from
20 any other Public Act.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.".