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91_SB0211enr SB211 Enrolled LRB9102763EGfg 1 AN ACT in relation to public employee benefits, amending 2 named Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The State Employees Group Insurance Act of 6 1971 is amended by changing Sections 3 and 10 as follows: 7 (5 ILCS 375/3) (from Ch. 127, par. 523) 8 Sec. 3. Definitions. Unless the context otherwise 9 requires, the following words and phrases as used in this Act 10 shall have the following meanings. The Department may define 11 these and other words and phrases separately for the purpose 12 of implementing specific programs providing benefits under 13 this Act. 14 (a) "Administrative service organization" means any 15 person, firm or corporation experienced in the handling of 16 claims which is fully qualified, financially sound and 17 capable of meeting the service requirements of a contract of 18 administration executed with the Department. 19 (b) "Annuitant" means (1) an employee who retires, or 20 has retired, on or after January 1, 1966 on an immediate 21 annuity under the provisions of Articles 2, 14, 15 (including 22 an employee who has retired under the optional retirement 23 program established under Section 15-158.2), paragraphs (2), 24 (3), or (5) of Section 16-106, or Article 18 of the Illinois 25 Pension Code; (2) any person who was receiving group 26 insurance coverage under this Act as of March 31, 1978 by 27 reason of his status as an annuitant, even though the annuity 28 in relation to which such coverage was provided is a 29 proportional annuity based on less than the minimum period of 30 service required for a retirement annuity in the system 31 involved; (3) any person not otherwise covered by this Act SB211 Enrolled -2- LRB9102763EGfg 1 who has retired as a participating member under Article 2 of 2 the Illinois Pension Code but is ineligible for the 3 retirement annuity under Section 2-119 of the Illinois 4 Pension Code; (4) the spouse of any person who is receiving a 5 retirement annuity under Article 18 of the Illinois Pension 6 Code and who is covered under a group health insurance 7 program sponsored by a governmental employer other than the 8 State of Illinois and who has irrevocably elected to waive 9 his or her coverage under this Act and to have his or her 10 spouse considered as the "annuitant" under this Act and not 11 as a "dependent"; or (5) an employee who retires, or has 12 retired, from a qualified position, as determined according 13 to rules promulgated by the Director, under a qualified local 14 government or a qualified rehabilitation facility or a 15 qualified domestic violence shelter or service. (For 16 definition of "retired employee", see (p) post). 17 (b-5) "New SERS annuitant" means a person who, on or 18 after January 1, 1998, becomes an annuitant, as defined in 19 subsection (b), by virtue of beginning to receive a 20 retirement annuity under Article 14 of the Illinois Pension 21 Code, and is eligible to participate in the basic program of 22 group health benefits provided for annuitants under this Act. 23 (b-6) "New SURS annuitant" means a person who (1),on or 24 after January 1, 1998, becomes an annuitant, as defined in 25 subsection (b), by virtue of beginning to receive a 26 retirement annuity under Article 15 of the Illinois Pension 27 Code, (2) has not made the election authorized under Section 28 15-135.1 of the Illinois Pension Code, and (3) is eligible to 29 participate in the basic program of group health benefits 30 provided for annuitants under this Act. 31 (b-7) "New TRS State annuitant" means a person who, on 32 or after July 1, 1998, becomes an annuitant, as defined in 33 subsection (b), by virtue of beginning to receive a 34 retirement annuity under Article 16 of the Illinois Pension SB211 Enrolled -3- LRB9102763EGfg 1 Code based on service as a teacher as defined in paragraph 2 (2), (3), or (5) of Section 16-106 of that Code, and is 3 eligible to participate in the basic program of group health 4 benefits provided for annuitants under this Act. 5 (c) "Carrier" means (1) an insurance company, a 6 corporation organized under the Limited Health Service 7 Organization Act or the Voluntary Health Services Plan Act, a 8 partnership, or other nongovernmental organization, which is 9 authorized to do group life or group health insurance 10 business in Illinois, or (2) the State of Illinois as a 11 self-insurer. 12 (d) "Compensation" means salary or wages payable on a 13 regular payroll by the State Treasurer on a warrant of the 14 State Comptroller out of any State, trust or federal fund, or 15 by the Governor of the State through a disbursing officer of 16 the State out of a trust or out of federal funds, or by any 17 Department out of State, trust, federal or other funds held 18 by the State Treasurer or the Department, to any person for 19 personal services currently performed, and ordinary or 20 accidental disability benefits under Articles 2, 14, 15 21 (including ordinary or accidental disability benefits under 22 the optional retirement program established under Section 23 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 24 Article 18 of the Illinois Pension Code, for disability 25 incurred after January 1, 1966, or benefits payable under the 26 Workers' Compensation or Occupational Diseases Act or 27 benefits payable under a sick pay plan established in 28 accordance with Section 36 of the State Finance Act. 29 "Compensation" also means salary or wages paid to an employee 30 of any qualified local government or qualified rehabilitation 31 facility or a qualified domestic violence shelter or service. 32 (e) "Commission" means the State Employees Group 33 Insurance Advisory Commission authorized by this Act. 34 Commencing July 1, 1984, "Commission" as used in this Act SB211 Enrolled -4- LRB9102763EGfg 1 means the Illinois Economic and Fiscal Commission as 2 established by the Legislative Commission Reorganization Act 3 of 1984. 4 (f) "Contributory", when referred to as contributory 5 coverage, shall mean optional coverages or benefits elected 6 by the member toward the cost of which such member makes 7 contribution, or which are funded in whole or in part through 8 the acceptance of a reduction in earnings or the foregoing of 9 an increase in earnings by an employee, as distinguished from 10 noncontributory coverage or benefits which are paid entirely 11 by the State of Illinois without reduction of the member's 12 salary. 13 (g) "Department" means any department, institution, 14 board, commission, officer, court or any agency of the State 15 government receiving appropriations and having power to 16 certify payrolls to the Comptroller authorizing payments of 17 salary and wages against such appropriations as are made by 18 the General Assembly from any State fund, or against trust 19 funds held by the State Treasurer and includes boards of 20 trustees of the retirement systems created by Articles 2, 14, 21 15, 16 and 18 of the Illinois Pension Code. "Department" 22 also includes the Illinois Comprehensive Health Insurance 23 Board, the Board of Examiners established under the Illinois 24 Public Accounting Act, and the Illinois Rural Bond Bank. 25 (h) "Dependent", when the term is used in the context of 26 the health and life plan, means a member's spouse and any 27 unmarried child (1) from birth to age 19 including an adopted 28 child, a child who lives with the member from the time of the 29 filing of a petition for adoption until entry of an order of 30 adoption, a stepchild or recognized child who lives with the 31 member in a parent-child relationship, or a child who lives 32 with the member if such member is a court appointed guardian 33 of the child, or (2) age 19 to 23 enrolled as a full-time 34 student in any accredited school, financially dependent upon SB211 Enrolled -5- LRB9102763EGfg 1 the member, and eligible as a dependent for Illinois State 2 income tax purposes, or (3) age 19 or over who is mentally or 3 physically handicapped as defined in the Illinois Insurance 4 Code. For the health plan only, the term "dependent" also 5 includes any person enrolled prior to the effective date of 6 this Section who is dependent upon the member to the extent 7 that the member may claim such person as a dependent for 8 Illinois State income tax deduction purposes; no other such 9 person may be enrolled. 10 (i) "Director" means the Director of the Illinois 11 Department of Central Management Services. 12 (j) "Eligibility period" means the period of time a 13 member has to elect enrollment in programs or to select 14 benefits without regard to age, sex or health. 15 (k) "Employee" means and includes each officer or 16 employee in the service of a department who (1) receives his 17 compensation for service rendered to the department on a 18 warrant issued pursuant to a payroll certified by a 19 department or on a warrant or check issued and drawn by a 20 department upon a trust, federal or other fund or on a 21 warrant issued pursuant to a payroll certified by an elected 22 or duly appointed officer of the State or who receives 23 payment of the performance of personal services on a warrant 24 issued pursuant to a payroll certified by a Department and 25 drawn by the Comptroller upon the State Treasurer against 26 appropriations made by the General Assembly from any fund or 27 against trust funds held by the State Treasurer, and (2) is 28 employed full-time or part-time in a position normally 29 requiring actual performance of duty during not less than 1/2 30 of a normal work period, as established by the Director in 31 cooperation with each department, except that persons elected 32 by popular vote will be considered employees during the 33 entire term for which they are elected regardless of hours 34 devoted to the service of the State, and (3) except that SB211 Enrolled -6- LRB9102763EGfg 1 "employee" does not include any person who is not eligible by 2 reason of such person's employment to participate in one of 3 the State retirement systems under Articles 2, 14, 15 (either 4 the regular Article 15 system or the optional retirement 5 program established under Section 15-158.2) or 18, or under 6 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 7 Pension Code, but such term does include persons who are 8 employed during the 6 month qualifying period under Article 9 14 of the Illinois Pension Code. Such term also includes any 10 person who (1) after January 1, 1966, is receiving ordinary 11 or accidental disability benefits under Articles 2, 14, 15 12 (including ordinary or accidental disability benefits under 13 the optional retirement program established under Section 14 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 15 Article 18 of the Illinois Pension Code, for disability 16 incurred after January 1, 1966, (2) receives total permanent 17 or total temporary disability under the Workers' Compensation 18 Act or Occupational Disease Act as a result of injuries 19 sustained or illness contracted in the course of employment 20 with the State of Illinois, or (3) is not otherwise covered 21 under this Act and has retired as a participating member 22 under Article 2 of the Illinois Pension Code but is 23 ineligible for the retirement annuity under Section 2-119 of 24 the Illinois Pension Code. However, a person who satisfies 25 the criteria of the foregoing definition of "employee" except 26 that such person is made ineligible to participate in the 27 State Universities Retirement System by clause (4) of 28 subsection (a) of Section 15-107 of the Illinois Pension Code 29 is also an "employee" for the purposes of this Act. 30 "Employee" also includes any person receiving or eligible for 31 benefits under a sick pay plan established in accordance with 32 Section 36 of the State Finance Act. "Employee" also includes 33 each officer or employee in the service of a qualified local 34 government, including persons appointed as trustees of SB211 Enrolled -7- LRB9102763EGfg 1 sanitary districts regardless of hours devoted to the service 2 of the sanitary district, and each employee in the service of 3 a qualified rehabilitation facility and each full-time 4 employee in the service of a qualified domestic violence 5 shelter or service, as determined according to rules 6 promulgated by the Director. 7 (l) "Member" means an employee, annuitant, retired 8 employee or survivor. 9 (m) "Optional coverages or benefits" means those 10 coverages or benefits available to the member on his or her 11 voluntary election, and at his or her own expense. 12 (n) "Program" means the group life insurance, health 13 benefits and other employee benefits designed and contracted 14 for by the Director under this Act. 15 (o) "Health plan" means a self-insured health insurance 16 program offered by the State of Illinois for the purposes of 17 benefiting employees by means of providing, among others, 18 wellness programs, utilization reviews, second opinions and 19 medical fee reviews, as well as for paying for hospital and 20 medical care up to the maximum coverage provided by the plan, 21 to its members and their dependents. 22 (p) "Retired employee" means any person who would be an 23 annuitant as that term is defined herein but for the fact 24 that such person retired prior to January 1, 1966. Such term 25 also includes any person formerly employed by the University 26 of Illinois in the Cooperative Extension Service who would be 27 an annuitant but for the fact that such person was made 28 ineligible to participate in the State Universities 29 Retirement System by clause (4) of subsection (a) of Section 30 15-107 of the Illinois Pension Code. 31(p-6) "New SURS retired employee" means a person who, on32or after January 1, 1998, becomes a retired employee, as33defined in subsection (p), by virtue of being a person34formerly employed by the University of Illinois in theSB211 Enrolled -8- LRB9102763EGfg 1Cooperative Extension Service who would be an annuitant but2for the fact that he or she was made ineligible to3participate in the State Universities Retirement System by4clause (4) of subsection (a) of Section 15-107 of the5Illinois Pension Code, and who is eligible to participate in6the basic program of group health benefits provided for7retired employees under this Act.8 (q) "Survivor" means a person receiving an annuity as a 9 survivor of an employee or of an annuitant. "Survivor" also 10 includes: (1) the surviving dependent of a person who 11 satisfies the definition of "employee" except that such 12 person is made ineligible to participate in the State 13 Universities Retirement System by clause (4) of subsection 14 (a) of Section 15-107 of the Illinois Pension Code; and (2) 15 the surviving dependent of any person formerly employed by 16 the University of Illinois in the Cooperative Extension 17 Service who would be an annuitant except for the fact that 18 such person was made ineligible to participate in the State 19 Universities Retirement System by clause (4) of subsection 20 (a) of Section 15-107 of the Illinois Pension Code. 21 (q-5) "New SERS survivor" means a survivor, as defined 22 in subsection (q), whose annuity is paid under Article 14 of 23 the Illinois Pension Code and is based on the death of (i) an 24 employee whose death occurs on or after January 1, 1998, or 25 (ii) a new SERS annuitant as defined in subsection (b-5). 26 (q-6) "New SURS survivor" means a survivor, as defined 27 in subsection (q), whose annuity is paid under Article 15 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 SURS annuitant as defined in subsection (b-6), or31(iii) a new SURS retired employee as defined in subsection32(p-6). 33 (q-7) "New TRS State survivor" means a survivor, as 34 defined in subsection (q), whose annuity is paid under SB211 Enrolled -9- LRB9102763EGfg 1 Article 16 of the Illinois Pension Code and is based on the 2 death of (i) an employee who is a teacher as defined in 3 paragraph (2), (3), or (5) of Section 16-106 of that Code and 4 whose death occurs on or after July 1, 1998, or (ii) a new 5 TRS State annuitant as defined in subsection (b-7). 6 (r) "Medical services" means the services provided 7 within the scope of their licenses by practitioners in all 8 categories licensed under the Medical Practice Act of 1987. 9 (s) "Unit of local government" means any county, 10 municipality, township, school district, special district or 11 other unit, designated as a unit of local government by law, 12 which exercises limited governmental powers or powers in 13 respect to limited governmental subjects, any not-for-profit 14 association with a membership that primarily includes 15 townships and township officials, that has duties that 16 include provision of research service, dissemination of 17 information, and other acts for the purpose of improving 18 township government, and that is funded wholly or partly in 19 accordance with Section 85-15 of the Township Code; any 20 not-for-profit corporation or association, with a membership 21 consisting primarily of municipalities, that operates its own 22 utility system, and provides research, training, 23 dissemination of information, or other acts to promote 24 cooperation between and among municipalities that provide 25 utility services and for the advancement of the goals and 26 purposes of its membership; and the Illinois Association of 27 Park Districts. "Qualified local government" means a unit of 28 local government approved by the Director and participating 29 in a program created under subsection (i) of Section 10 of 30 this Act. 31 (t) "Qualified rehabilitation facility" means any 32 not-for-profit organization that is accredited by the 33 Commission on Accreditation of Rehabilitation Facilities or 34 certified by the Department of Human Services (as successor SB211 Enrolled -10- LRB9102763EGfg 1 to the Department of Mental Health and Developmental 2 Disabilities) to provide services to persons with 3 disabilities and which receives funds from the State of 4 Illinois for providing those services, approved by the 5 Director and participating in a program created under 6 subsection (j) of Section 10 of this Act. 7 (u) "Qualified domestic violence shelter or service" 8 means any Illinois domestic violence shelter or service and 9 its administrative offices funded by the Department of Human 10 Services (as successor to the Illinois Department of Public 11 Aid), approved by the Director and participating in a program 12 created under subsection (k) of Section 10. 13 (v) "TRS benefit recipient" means a person who: 14 (1) is not a "member" as defined in this Section; 15 and 16 (2) is receiving a monthly benefit or retirement 17 annuity under Article 16 of the Illinois Pension Code; 18 and 19 (3) either (i) has at least 8 years of creditable 20 service under Article 16 of the Illinois Pension Code, or 21 (ii) was enrolled in the health insurance program offered 22 under that Article on January 1, 1996, or (iii) is the 23 survivor of a benefit recipient who had at least 8 years 24 of creditable service under Article 16 of the Illinois 25 Pension Code or was enrolled in the health insurance 26 program offered under that Article on the effective date 27 of this amendatory Act of 1995, or (iv) is a recipient or 28 survivor of a recipient of a disability benefit under 29 Article 16 of the Illinois Pension Code. 30 (w) "TRS dependent beneficiary" means a person who: 31 (1) is not a "member" or "dependent" as defined in 32 this Section; and 33 (2) is a TRS benefit recipient's: (A) spouse, (B) 34 dependent parent who is receiving at least half of his or SB211 Enrolled -11- LRB9102763EGfg 1 her support from the TRS benefit recipient, or (C) 2 unmarried natural or adopted child who is (i) under age 3 19, or (ii) enrolled as a full-time student in an 4 accredited school, financially dependent upon the TRS 5 benefit recipient, eligible as a dependent for Illinois 6 State income tax purposes, and either is under age 24 or 7 was, on January 1, 1996, participating as a dependent 8 beneficiary in the health insurance program offered under 9 Article 16 of the Illinois Pension Code, or (iii) age 19 10 or over who is mentally or physically handicapped as 11 defined in the Illinois Insurance Code. 12 (x) "Military leave with pay and benefits" refers to 13 individuals in basic training for reserves, special/advanced 14 training, annual training, emergency call up, or activation 15 by the President of the United States with approved pay and 16 benefits. 17 (y) "Military leave without pay and benefits" refers to 18 individuals who enlist for active duty in a regular component 19 of the U.S. Armed Forces or other duty not specified or 20 authorized under military leave with pay and benefits. 21 (z) "Community college benefit recipient" means a person 22 who: 23 (1) is not a "member" as defined in this Section; 24 and 25 (2) is receiving a monthly survivor's annuity or 26 retirement annuity under Article 15 of the Illinois 27 Pension Code; and 28 (3) either (i) was a full-time employee of a 29 community college district or an association of community 30 college boards created under the Public Community College 31 Act (other than an employee whose last employer under 32 Article 15 of the Illinois Pension Code was a community 33 college district subject to Article VII of the Public 34 Community College Act) and was eligible to participate in SB211 Enrolled -12- LRB9102763EGfg 1 a group health benefit plan as an employee during the 2 time of employment with a community college district 3 (other than a community college district subject to 4 Article VII of the Public Community College Act) or an 5 association of community college boards, or (ii) is the 6 survivor of a person described in item (i). 7 (aa) "Community college dependent beneficiary" means a 8 person who: 9 (1) is not a "member" or "dependent" as defined in 10 this Section; and 11 (2) is a community college benefit recipient's: (A) 12 spouse, (B) dependent parent who is receiving at least 13 half of his or her support from the community college 14 benefit recipient, or (C) unmarried natural or adopted 15 child who is (i) under age 19, or (ii) enrolled as a 16 full-time student in an accredited school, financially 17 dependent upon the community college benefit recipient, 18 eligible as a dependent for Illinois State income tax 19 purposes and under age 23, or (iii) age 19 or over and 20 mentally or physically handicapped as defined in the 21 Illinois Insurance Code. 22 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95; 23 89-76, eff. 7-1-95; 89-324, eff. 8-13-95; 89-430, eff. 24 12-15-95; 89-502, eff. 7-1-96; 89-507, eff. 7-1-97; 89-628, 25 eff. 8-9-96; 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448, 26 eff. 8-16-97; 90-497, eff. 8-18-97; 90-511, eff. 8-22-97; 27 90-582, eff. 5-27-98; 90-655, eff. 7-30-98.) 28 (5 ILCS 375/10) (from Ch. 127, par. 530) 29 Sec. 10. Payments by State; premiums. 30 (a) The State shall pay the cost of basic 31 non-contributory group life insurance and, subject to member 32 paid contributions set by the Department or required by this 33 Section, the basic program of group health benefits on each SB211 Enrolled -13- LRB9102763EGfg 1 eligible member, except a member, not otherwise covered by 2 this Act, who has retired as a participating member under 3 Article 2 of the Illinois Pension Code but is ineligible for 4 the retirement annuity under Section 2-119 of the Illinois 5 Pension Code, and part of each eligible member's and retired 6 member's premiums for health insurance coverage for enrolled 7 dependents as provided by Section 9. The State shall pay the 8 cost of the basic program of group health benefits only after 9 benefits are reduced by the amount of benefits covered by 10 Medicare for all retired members and retired dependents aged 11 65 years or older who are entitled to benefits under Social 12 Security or the Railroad Retirement system or who had 13 sufficient Medicare-covered government employment except that 14 such reduction in benefits shall apply only to those retired 15 members or retired dependents who (1) first become eligible 16 for such Medicare coverage on or after July 1, 1992; or (2) 17 remain eligible for, but no longer receive Medicare coverage 18 which they had been receiving on or after July 1, 1992. The 19 Department may determine the aggregate level of the State's 20 contribution on the basis of actual cost of medical services 21 adjusted for age, sex or geographic or other demographic 22 characteristics which affect the costs of such programs. 23 (a-1) Beginning January 1, 1998, for each person who 24 becomes a new SERS annuitant and participates in the basic 25 program of group health benefits, the State shall contribute 26 toward the cost of the annuitant's coverage under the basic 27 program of group health benefits an amount equal to 5% of 28 that cost for each full year of creditable service upon which 29 the annuitant's retirement annuity is based, up to a maximum 30 of 100% for an annuitant with 20 or more years of creditable 31 service. The remainder of the cost of a new SERS annuitant's 32 coverage under the basic program of group health benefits 33 shall be the responsibility of the annuitant. 34 (a-2) Beginning January 1, 1998, for each person who SB211 Enrolled -14- LRB9102763EGfg 1 becomes a new SERS survivor and participates in the basic 2 program of group health benefits, the State shall contribute 3 toward the cost of the survivor's coverage under the basic 4 program of group health benefits an amount equal to 5% of 5 that cost for each full year of the deceased employee's or 6 deceased annuitant's creditable service in the State 7 Employees' Retirement System of Illinois on the date of 8 death, up to a maximum of 100% for a survivor of an employee 9 or annuitant with 20 or more years of creditable service. 10 The remainder of the cost of the new SERS survivor's coverage 11 under the basic program of group health benefits shall be the 12 responsibility of the survivor. 13 (a-3) Beginning January 1, 1998, for each person who 14 becomes a new SURS annuitant and participates in the basic 15 program of group health benefits, the State shall contribute 16 toward the cost of the annuitant's coverage under the basic 17 program of group health benefits an amount equal to 5% of 18 that cost for each full year of creditable service upon which 19 the annuitant's retirement annuity is based, up to a maximum 20 of 100% for an annuitant with 20 or more years of creditable 21 service. The remainder of the cost of a new SURS annuitant's 22 coverage under the basic program of group health benefits 23 shall be the responsibility of the annuitant. 24 (a-4) (Blank).Beginning January 1, 1998, for each25person who becomes a new SURS retired employee and26participates in the basic program of group health benefits,27the State shall contribute toward the cost of the retired28employee's coverage under the basic program of group health29benefits an amount equal to 5% of that cost for each full30year that the retired employee was an employee as defined in31Section 3, up to a maximum of 100% for a retired employee who32was an employee for 20 or more years. The remainder of the33cost of a new SURS retired employee's coverage under the34basic program of group health benefits shall be theSB211 Enrolled -15- LRB9102763EGfg 1responsibility of the retired employee.2 (a-5) Beginning January 1, 1998, for each person who 3 becomes a new SURS survivor and participates in the basic 4 program of group health benefits, the State shall contribute 5 toward the cost of the survivor's coverage under the basic 6 program of group health benefits an amount equal to 5% of 7 that cost for each full year of the deceased employee's or 8 deceased annuitant's creditable service in the State 9 Universities Retirement System on the date of death, up to a 10 maximum of 100% for a survivor of an employee or annuitant 11 with 20 or more years of creditable service. The remainder 12 of the cost of the new SURS survivor's coverage under the 13 basic program of group health benefits shall be the 14 responsibility of the survivor. 15 (a-6) Beginning July 1, 1998, for each person who 16 becomes a new TRS State annuitant and participates in the 17 basic program of group health benefits, the State shall 18 contribute toward the cost of the annuitant's coverage under 19 the basic program of group health benefits an amount equal to 20 5% of that cost for each full year of creditable service as a 21 teacher as defined in paragraph (2), (3), or (5) of Section 22 16-106 of the Illinois Pension Code upon which the 23 annuitant's retirement annuity is based, up to a maximum of 24 100% for an annuitant with 20 or more years of such 25 creditable service. The remainder of the cost of a new TRS 26 State annuitant's coverage under the basic program of group 27 health benefits shall be the responsibility of the annuitant. 28 (a-7) Beginning July 1, 1998, for each person who 29 becomes a new TRS State survivor and participates in the 30 basic program of group health benefits, the State shall 31 contribute toward the cost of the survivor's coverage under 32 the basic program of group health benefits an amount equal to 33 5% of that cost for each full year of the deceased employee's 34 or deceased annuitant's creditable service as a teacher as SB211 Enrolled -16- LRB9102763EGfg 1 defined in paragraph (2), (3), or (5) of Section 16-106 of 2 the Illinois Pension Code on the date of death, up to a 3 maximum of 100% for a survivor of an employee or annuitant 4 with 20 or more years of such creditable service. The 5 remainder of the cost of the new TRS State survivor's 6 coverage under the basic program of group health benefits 7 shall be the responsibility of the survivor. 8 (a-8) A new SERS annuitant, new SERS survivor, new SURS 9 annuitant,new SURS retired employee,new SURS survivor, new 10 TRS State annuitant, or new TRS State survivor may waive or 11 terminate coverage in the program of group health benefits. 12 Any such annuitant or,survivor, or retired employeewho has 13 waived or terminated coverage may enroll or re-enroll in the 14 program of group health benefits only during the annual 15 benefit choice period, as determined by the Director; except 16 that in the event of termination of coverage due to 17 nonpayment of premiums, the annuitant or,survivor, or18retired employeemay not re-enroll in the program. 19 (a-9) 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 Medicare 25 eligible. 26 A separate calculation of the premiums based upon the 27 actual cost of each health care plan shall be so certified. 28 The Director of Central Management Services shall provide 29 to the Executive Secretary of the State Employees' Retirement 30 System of Illinois such information, statistics, and other 31 data as he or she may require to review the premium amounts 32 certified by the Director of Central Management Services. 33 (b) State employees who become eligible for this program 34 on or after January 1, 1980 in positions normally requiring SB211 Enrolled -17- LRB9102763EGfg 1 actual performance of duty not less than 1/2 of a normal work 2 period but not equal to that of a normal work period, shall 3 be given the option of participating in the available 4 program. If the employee elects coverage, the State shall 5 contribute on behalf of such employee to the cost of the 6 employee's benefit and any applicable dependent supplement, 7 that sum which bears the same percentage as that percentage 8 of time the employee regularly works when compared to normal 9 work period. 10 (c) The basic non-contributory coverage from the basic 11 program of group health benefits shall be continued for each 12 employee not in pay status or on active service by reason of 13 (1) leave of absence due to illness or injury, (2) authorized 14 educational leave of absence or sabbatical leave, or (3) 15 military leave with pay and benefits. This coverage shall 16 continue until expiration of authorized leave and return to 17 active service, but not to exceed 24 months for leaves under 18 item (1) or (2). This 24-month limitation and the requirement 19 of returning to active service shall not apply to persons 20 receiving ordinary or accidental disability benefits or 21 retirement benefits through the appropriate State retirement 22 system or benefits under the Workers' Compensation or 23 Occupational Disease Act. 24 (d) The basic group life insurance coverage shall 25 continue, with full State contribution, where such person is 26 (1) absent from active service by reason of disability 27 arising from any cause other than self-inflicted, (2) on 28 authorized educational leave of absence or sabbatical leave, 29 or (3) on military leave with pay and benefits. 30 (e) Where the person is in non-pay status for a period 31 in excess of 30 days or on leave of absence, other than by 32 reason of disability, educational or sabbatical leave, or 33 military leave with pay and benefits, such person may 34 continue coverage only by making personal payment equal to SB211 Enrolled -18- LRB9102763EGfg 1 the amount normally contributed by the State on such person's 2 behalf. Such payments and coverage may be continued: (1) 3 until such time as the person returns to a status eligible 4 for coverage at State expense, but not to exceed 24 months, 5 (2) until such person's employment or annuitant status with 6 the State is terminated, or (3) for a maximum period of 4 7 years for members on military leave with pay and benefits and 8 military leave without pay and benefits (exclusive of any 9 additional service imposed pursuant to law). 10 (f) The Department shall establish by rule the extent 11 to which other employee benefits will continue for persons in 12 non-pay status or who are not in active service. 13 (g) The State shall not pay the cost of the basic 14 non-contributory group life insurance, program of health 15 benefits and other employee benefits for members who are 16 survivors as defined by paragraphs (1) and (2) of subsection 17 (q) of Section 3 of this Act. The costs of benefits for 18 these survivors shall be paid by the survivors or by the 19 University of Illinois Cooperative Extension Service, or any 20 combination thereof. 21 (h) Those persons occupying positions with any 22 department as a result of emergency appointments pursuant to 23 Section 8b.8 of the Personnel Code who are not considered 24 employees under this Act shall be given the option of 25 participating in the programs of group life insurance, health 26 benefits and other employee benefits. Such persons electing 27 coverage may participate only by making payment equal to the 28 amount normally contributed by the State for similarly 29 situated employees. Such amounts shall be determined by the 30 Director. Such payments and coverage may be continued until 31 such time as the person becomes an employee pursuant to this 32 Act or such person's appointment is terminated. 33 (i) Any unit of local government within the State of 34 Illinois may apply to the Director to have its employees, SB211 Enrolled -19- LRB9102763EGfg 1 annuitants, and their dependents provided group health 2 coverage under this Act on a non-insured basis. To 3 participate, a unit of local government must agree to enroll 4 all of its employees, who may select coverage under either 5 the State group health insurance plan or a health maintenance 6 organization that has contracted with the State to be 7 available as a health care provider for employees as defined 8 in this Act. A unit of local government must remit the 9 entire cost of providing coverage under the State group 10 health insurance plan or, for coverage under a health 11 maintenance organization, an amount determined by the 12 Director based on an analysis of the sex, age, geographic 13 location, or other relevant demographic variables for its 14 employees, except that the unit of local government shall not 15 be required to enroll those of its employees who are covered 16 spouses or dependents under this plan or another group policy 17 or plan providing health benefits as long as (1) an 18 appropriate official from the unit of local government 19 attests that each employee not enrolled is a covered spouse 20 or dependent under this plan or another group policy or plan, 21 and (2) at least 85% of the employees are enrolled and the 22 unit of local government remits the entire cost of providing 23 coverage to those employees. Employees of a participating 24 unit of local government who are not enrolled due to coverage 25 under another group health policy or plan may enroll at a 26 later date subject to submission of satisfactory evidence of 27 insurability and provided that no benefits shall be payable 28 for services incurred during the first 6 months of coverage 29 to the extent the services are in connection with any 30 pre-existing condition. A participating unit of local 31 government may also elect to cover its annuitants. Dependent 32 coverage shall be offered on an optional basis, with the 33 costs paid by the unit of local government, its employees, or 34 some combination of the two as determined by the unit of SB211 Enrolled -20- LRB9102763EGfg 1 local government. The unit of local government shall be 2 responsible for timely collection and transmission of 3 dependent premiums. 4 The Director shall annually determine monthly rates of 5 payment, subject to the following constraints: 6 (1) In the first year of coverage, the rates shall 7 be equal to the amount normally charged to State 8 employees for elected optional coverages or for enrolled 9 dependents coverages or other contributory coverages, or 10 contributed by the State for basic insurance coverages on 11 behalf of its employees, adjusted for differences between 12 State employees and employees of the local government in 13 age, sex, geographic location or other relevant 14 demographic variables, plus an amount sufficient to pay 15 for the additional administrative costs of providing 16 coverage to employees of the unit of local government and 17 their dependents. 18 (2) In subsequent years, a further adjustment shall 19 be made to reflect the actual prior years' claims 20 experience of the employees of the unit of local 21 government. 22 In the case of coverage of local government employees 23 under a health maintenance organization, the Director shall 24 annually determine for each participating unit of local 25 government the maximum monthly amount the unit may contribute 26 toward that coverage, based on an analysis of (i) the age, 27 sex, geographic location, and other relevant demographic 28 variables of the unit's employees and (ii) the cost to cover 29 those employees under the State group health insurance plan. 30 The Director may similarly determine the maximum monthly 31 amount each unit of local government may contribute toward 32 coverage of its employees' dependents under a health 33 maintenance organization. 34 Monthly payments by the unit of local government or its SB211 Enrolled -21- LRB9102763EGfg 1 employees for group health insurance or health maintenance 2 organization coverage shall be deposited in the Local 3 Government Health Insurance Reserve Fund. The Local 4 Government Health Insurance Reserve Fund shall be a 5 continuing fund not subject to fiscal year limitations. All 6 expenditures from this fund shall be used for payments for 7 health care benefits for local government and rehabilitation 8 facility employees, annuitants, and dependents, and to 9 reimburse the Department or its administrative service 10 organization for all expenses incurred in the administration 11 of benefits. No other State funds may be used for these 12 purposes. 13 A local government employer's participation or desire to 14 participate in a program created under this subsection shall 15 not limit that employer's duty to bargain with the 16 representative of any collective bargaining unit of its 17 employees. 18 (j) Any rehabilitation facility within the State of 19 Illinois may apply to the Director to have its employees, 20 annuitants, and their dependents provided group health 21 coverage under this Act on a non-insured basis. To 22 participate, a rehabilitation facility must agree to enroll 23 all of its employees and remit the entire cost of providing 24 such coverage for its employees, except that the 25 rehabilitation facility shall not be required to enroll those 26 of its employees who are covered spouses or dependents under 27 this plan or another group policy or plan providing health 28 benefits as long as (1) an appropriate official from the 29 rehabilitation facility attests that each employee not 30 enrolled is a covered spouse or dependent under this plan or 31 another group policy or plan, and (2) at least 85% of the 32 employees are enrolled and the rehabilitation facility remits 33 the entire cost of providing coverage to those employees. 34 Employees of a participating rehabilitation facility who are SB211 Enrolled -22- LRB9102763EGfg 1 not enrolled due to coverage under another group health 2 policy or plan may enroll at a later date subject to 3 submission of satisfactory evidence of insurability and 4 provided that no benefits shall be payable for services 5 incurred during the first 6 months of coverage to the extent 6 the services are in connection with any pre-existing 7 condition. A participating rehabilitation facility may also 8 elect to cover its annuitants. Dependent coverage shall be 9 offered on an optional basis, with the costs paid by the 10 rehabilitation facility, its employees, or some combination 11 of the 2 as determined by the rehabilitation facility. The 12 rehabilitation facility shall be responsible for timely 13 collection and transmission of dependent premiums. 14 The Director shall annually determine quarterly rates of 15 payment, subject to the following constraints: 16 (1) In the first year of coverage, the rates shall 17 be equal to the amount normally charged to State 18 employees for elected optional coverages or for enrolled 19 dependents coverages or other contributory coverages on 20 behalf of its employees, adjusted for differences between 21 State employees and employees of the rehabilitation 22 facility in age, sex, geographic location or other 23 relevant demographic variables, plus an amount sufficient 24 to pay for the additional administrative costs of 25 providing coverage to employees of the rehabilitation 26 facility and their dependents. 27 (2) In subsequent years, a further adjustment shall 28 be made to reflect the actual prior years' claims 29 experience of the employees of the rehabilitation 30 facility. 31 Monthly payments by the rehabilitation facility or its 32 employees for group health insurance shall be deposited in 33 the Local Government Health Insurance Reserve Fund. 34 (k) Any domestic violence shelter or service within the SB211 Enrolled -23- LRB9102763EGfg 1 State of Illinois may apply to the Director to have its 2 employees, annuitants, and their dependents provided group 3 health coverage under this Act on a non-insured basis. To 4 participate, a domestic violence shelter or service must 5 agree to enroll all of its employees and pay the entire cost 6 of providing such coverage for its employees. A 7 participating domestic violence shelter may also elect to 8 cover its annuitants. Dependent coverage shall be offered on 9 an optional basis, with employees, or some combination of the 10 2 as determined by the domestic violence shelter or service. 11 The domestic violence shelter or service shall be responsible 12 for timely collection and transmission of dependent premiums. 13 The Director shall annually determine quarterly rates of 14 payment, subject to the following constraints: 15 (1) In the first year of coverage, the rates shall 16 be equal to the amount normally charged to State 17 employees for elected optional coverages or for enrolled 18 dependents coverages or other contributory coverages on 19 behalf of its employees, adjusted for differences between 20 State employees and employees of the domestic violence 21 shelter or service in age, sex, geographic location or 22 other relevant demographic variables, plus an amount 23 sufficient to pay for the additional administrative costs 24 of providing coverage to employees of the domestic 25 violence shelter or service and their dependents. 26 (2) In subsequent years, a further adjustment shall 27 be made to reflect the actual prior years' claims 28 experience of the employees of the domestic violence 29 shelter or service. 30 (3) In no case shall the rate be less than the 31 amount normally charged to State employees or contributed 32 by the State on behalf of its employees. 33 Monthly payments by the domestic violence shelter or 34 service or its employees for group health insurance shall be SB211 Enrolled -24- LRB9102763EGfg 1 deposited in the Local Government Health Insurance Reserve 2 Fund. 3 (l) A public community college or entity organized 4 pursuant to the Public Community College Act may apply to the 5 Director initially to have only annuitants not covered prior 6 to July 1, 1992 by the district's health plan provided health 7 coverage under this Act on a non-insured basis. The 8 community college must execute a 2-year contract to 9 participate in the Local Government Health Plan. Those 10 annuitants enrolled initially under this contract shall have 11 no benefits payable for services incurred during the first 6 12 months of coverage to the extent the services are in 13 connection with any pre-existing condition. Any annuitant 14 who may enroll after this initial enrollment period shall be 15 subject to submission of satisfactory evidence of 16 insurability and to the pre-existing conditions limitation. 17 The Director shall annually determine monthly rates of 18 payment subject to the following constraints: for those 19 community colleges with annuitants only enrolled, first year 20 rates shall be equal to the average cost to cover claims for 21 a State member adjusted for demographics, Medicare 22 participation, and other factors; and in the second year, a 23 further adjustment of rates shall be made to reflect the 24 actual first year's claims experience of the covered 25 annuitants. 26 (m) The Director shall adopt any rules deemed necessary 27 for implementation of this amendatory Act of 1989 (Public Act 28 86-978). 29 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95; 30 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff. 31 7-7-97; 90-582, eff. 5-27-98; 90-655, eff. 7-30-98; revised 32 8-3-98.) 33 Section 10. The Illinois Pension Code is amended by SB211 Enrolled -25- LRB9102763EGfg 1 adding Section 15-135.1 as follows: 2 (40 ILCS 5/15-135.1 new) 3 Sec. 15-135.1. Election to avoid application of P.A. 4 90-65. 5 (a) A participant who was an employee on July 7, 1997 6 and retires on or after the effective date of this amendatory 7 Act of the 91st General Assembly may elect in writing at the 8 time of retirement to have the retirement annuity calculated 9 in accordance with the provisions of Sections 15-135 and 10 15-136 as they existed immediately prior to amendment by 11 Public Act 90-65. This election, once made, is irrevocable. 12 (b) The fact that a person has elected to participate in 13 the optional retirement program under Section 15-158.2 or has 14 elected the portability option under subsection (a-1) of 15 Section 15-154 does not prevent the person from making an 16 election under subsection (a) of this Section; the fact that 17 such a person makes an election under subsection (a) does not 18 allow the person to change the irrevocable election that he 19 or she made under Section 15-158.2 or subsection (a-1) of 20 Section 15-154. 21 (c) The System shall promptly notify the Department of 22 Central Management Services of each election made under this 23 Section. 24 Section 99. Effective date. This Act takes effect upon 25 becoming law.