State of Illinois
92nd General Assembly
Legislation

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92_SB0716

 
                                               LRB9206265EGfg

 1        AN ACT in relation to group insurance.

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

 4        Section  5.   The  State Employees Group Insurance Act of
 5    1971 is amended by changing Sections  3,  6.9,  and  6.10  as
 6    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
 
                            -2-                LRB9206265EGfg
 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
 
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 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
 
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 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
 
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 1    the  member,  and  eligible  to be claimed as a dependent for
 2    income tax purposes, or (3) age 19 or over who is mentally or
 3    physically handicapped. For the health plan  only,  the  term
 4    "dependent"  also  includes  any person enrolled prior to the
 5    effective date of this Section  who  is  dependent  upon  the
 6    member to the extent that the member may claim such person as
 7    a  dependent for income tax deduction purposes; no other such
 8    person may be enrolled.
 9        (i)  "Director"  means  the  Director  of  the   Illinois
10    Department of Central Management Services.
11        (j)  "Eligibility  period"  means  the  period  of time a
12    member has to elect  enrollment  in  programs  or  to  select
13    benefits without regard to age, sex or health.
14        (k)  "Employee"   means  and  includes  each  officer  or
15    employee in the service of a department who (1) receives  his
16    compensation  for  service  rendered  to  the department on a
17    warrant  issued  pursuant  to  a  payroll  certified   by   a
18    department  or  on  a  warrant or check issued and drawn by a
19    department upon a trust,  federal  or  other  fund  or  on  a
20    warrant  issued pursuant to a payroll certified by an elected
21    or duly appointed  officer  of  the  State  or  who  receives
22    payment  of the performance of personal services on a warrant
23    issued pursuant to a payroll certified by  a  Department  and
24    drawn  by  the  Comptroller  upon the State Treasurer against
25    appropriations made by the General Assembly from any fund  or
26    against  trust  funds held by the State Treasurer, and (2) is
27    employed  full-time  or  part-time  in  a  position  normally
28    requiring actual performance of duty during not less than 1/2
29    of a normal work period, as established by  the  Director  in
30    cooperation with each department, except that persons elected
31    by  popular  vote  will  be  considered  employees during the
32    entire term for which they are elected  regardless  of  hours
33    devoted  to  the  service  of  the State, and (3) except that
34    "employee" does not include any person who is not eligible by
 
                            -6-                LRB9206265EGfg
 1    reason of such person's employment to participate in  one  of
 2    the State retirement systems under Articles 2, 14, 15 (either
 3    the  regular  Article  15  system  or the optional retirement
 4    program established under Section 15-158.2) or 18,  or  under
 5    paragraph (2), (3), or (5) of Section 16-106, of the Illinois
 6    Pension  Code,  but  such  term  does include persons who are
 7    employed during the 6 month qualifying period  under  Article
 8    14 of the Illinois Pension Code.  Such term also includes any
 9    person  who  (1) after January 1, 1966, is receiving ordinary
10    or accidental disability benefits under Articles  2,  14,  15
11    (including  ordinary  or accidental disability benefits under
12    the optional retirement  program  established  under  Section
13    15-158.2),  paragraphs (2), (3), or (5) of Section 16-106, or
14    Article 18 of  the  Illinois  Pension  Code,  for  disability
15    incurred  after January 1, 1966, (2) receives total permanent
16    or total temporary disability under the Workers' Compensation
17    Act or Occupational Disease  Act  as  a  result  of  injuries
18    sustained  or  illness contracted in the course of employment
19    with the State of Illinois, or (3) is not  otherwise  covered
20    under  this  Act  and  has  retired as a participating member
21    under  Article  2  of  the  Illinois  Pension  Code  but   is
22    ineligible  for the retirement annuity under Section 2-119 of
23    the Illinois Pension Code.  However, a person  who  satisfies
24    the criteria of the foregoing definition of "employee" except
25    that  such  person  is  made ineligible to participate in the
26    State  Universities  Retirement  System  by  clause  (4)   of
27    subsection (a) of Section 15-107 of the Illinois Pension Code
28    is   also  an  "employee"  for  the  purposes  of  this  Act.
29    "Employee" also includes any person receiving or eligible for
30    benefits under a sick pay plan established in accordance with
31    Section 36 of the State Finance Act. "Employee" also includes
32    each officer or employee in the service of a qualified  local
33    government,   including  persons  appointed  as  trustees  of
34    sanitary districts regardless of hours devoted to the service
 
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 1    of the sanitary district, and each employee in the service of
 2    a  qualified  rehabilitation  facility  and  each   full-time
 3    employee  in  the  service  of  a qualified domestic violence
 4    shelter  or  service,  as  determined  according   to   rules
 5    promulgated by the Director.
 6        (l)  "Member"   means  an  employee,  annuitant,  retired
 7    employee or survivor.
 8        (m)  "Optional  coverages  or   benefits"   means   those
 9    coverages  or  benefits available to the member on his or her
10    voluntary election, and at his or her own expense.
11        (n)  "Program" means the  group  life  insurance,  health
12    benefits  and other employee benefits designed and contracted
13    for by the Director under this Act.
14        (o)  "Health  plan"  means  a  health  benefits   program
15    offered by the State of Illinois for persons eligible for the
16    plan.
17        (p)  "Retired  employee" means any person who would be an
18    annuitant as that term is defined herein  but  for  the  fact
19    that such person retired prior to January 1, 1966.  Such term
20    also  includes any person formerly employed by the University
21    of Illinois in the Cooperative Extension Service who would be
22    an annuitant but for the  fact  that  such  person  was  made
23    ineligible   to   participate   in   the  State  Universities
24    Retirement System by clause (4) of subsection (a) of  Section
25    15-107 of the Illinois Pension Code.
26        (q)  "Survivor"  means a person receiving an annuity as a
27    survivor of an employee or of an annuitant.  "Survivor"  also
28    includes:  (1)  the  surviving  dependent  of  a  person  who
29    satisfies  the  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)  of  Section 15-107 of the Illinois Pension Code; and (2)
33    the surviving dependent of any person  formerly  employed  by
34    the  University  of  Illinois  in  the  Cooperative Extension
 
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 1    Service who would be an annuitant except for  the  fact  that
 2    such  person  was made ineligible to participate in the State
 3    Universities Retirement System by clause  (4)  of  subsection
 4    (a) of Section 15-107 of the Illinois Pension Code.
 5        (q-5)  "New  SERS  survivor" means a survivor, as defined
 6    in subsection (q), whose annuity is paid under Article 14  of
 7    the Illinois Pension Code and is based on the death of (i) an
 8    employee  whose  death occurs on or after January 1, 1998, or
 9    (ii) a new SERS annuitant as defined in subsection (b-5).
10        (q-6)  "New SURS survivor" means a survivor,  as  defined
11    in  subsection (q), whose annuity is paid under Article 15 of
12    the Illinois Pension Code and is based on the death of (i) an
13    employee whose death occurs on or after January 1,  1998,  or
14    (ii) a new SURS annuitant as defined in subsection (b-6).
15        (q-7)  "New  TRS  State  survivor"  means  a survivor, as
16    defined in  subsection  (q),  whose  annuity  is  paid  under
17    Article  16  of the Illinois Pension Code and is based on the
18    death of (i) an employee who  is  a  teacher  as  defined  in
19    paragraph (2), (3), or (5) of Section 16-106 of that Code and
20    whose  death  occurs  on or after July 1, 1998, or (ii) a new
21    TRS State annuitant as defined in subsection (b-7).
22        (r)  "Medical  services"  means  the  services   provided
23    within  the  scope  of their licenses by practitioners in all
24    categories licensed under the Medical Practice Act of 1987.
25        (s)  "Unit  of  local  government"  means   any   county,
26    municipality,  township, school district, special district or
27    other unit, designated as a unit of local government by  law,
28    which  exercises  limited  governmental  powers  or powers in
29    respect to limited governmental subjects, any  not-for-profit
30    association   with   a  membership  that  primarily  includes
31    townships  and  township  officials,  that  has  duties  that
32    include  provision  of  research  service,  dissemination  of
33    information, and other acts  for  the  purpose  of  improving
34    township  government,  and that is funded wholly or partly in
 
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 1    accordance with Section  85-15  of  the  Township  Code;  any
 2    not-for-profit  corporation or association, with a membership
 3    consisting primarily of municipalities, that operates its own
 4    utility   system,   and    provides    research,    training,
 5    dissemination  of  information,  or  other  acts  to  promote
 6    cooperation  between  and  among  municipalities that provide
 7    utility services and for the advancement  of  the  goals  and
 8    purposes  of its membership; the Southern Illinois Collegiate
 9    Common Market, which is  a  consortium  of  higher  education
10    institutions   in   Southern   Illinois;   and  the  Illinois
11    Association of Park Districts.  "Qualified local  government"
12    means a unit of local government approved by the Director and
13    participating  in  a  program created under subsection (i) of
14    Section 10 of this Act.
15        (t)  "Qualified  rehabilitation   facility"   means   any
16    not-for-profit   organization   that  is  accredited  by  the
17    Commission on Accreditation of Rehabilitation  Facilities  or
18    certified  by  the Department of Human Services (as successor
19    to  the  Department  of  Mental  Health   and   Developmental
20    Disabilities)   to   provide   services   to   persons   with
21    disabilities  and  which  receives  funds  from  the State of
22    Illinois  for  providing  those  services,  approved  by  the
23    Director  and  participating  in  a  program  created   under
24    subsection (j) of Section 10 of this Act.
25        (u)  "Qualified  domestic  violence  shelter  or service"
26    means any Illinois domestic violence shelter or  service  and
27    its  administrative offices funded by the Department of Human
28    Services (as successor to the Illinois Department  of  Public
29    Aid), approved by the Director and participating in a program
30    created under subsection (k) of Section 10.
31        (v)  "TRS benefit recipient" means a person who:
32             (1)  is  not  a "member" as defined in this Section;
33        and
34             (2)  is receiving a monthly  benefit  or  retirement
 
                            -10-               LRB9206265EGfg
 1        annuity  under  Article  16 of the Illinois Pension Code;
 2        and
 3             (3)  either (i) has at least 8 years  of  creditable
 4        service under Article 16 of the Illinois Pension Code, or
 5        (ii) was enrolled in the health insurance program offered
 6        under  that  Article  on January 1, 1996, or (iii) is the
 7        survivor of a benefit recipient who had at least 8  years
 8        of  creditable  service  under Article 16 of the Illinois
 9        Pension Code or was  enrolled  in  the  health  insurance
10        program  offered under that Article on the effective date
11        of this amendatory Act of 1995, or (iv) is a recipient or
12        survivor of a recipient of  a  disability  benefit  under
13        Article 16 of the Illinois Pension Code.
14        (w)  "TRS dependent beneficiary" means a person who:
15             (1)  is  not a "member" or "dependent" as defined in
16        this Section; and
17             (2)  is a TRS benefit recipient's: (A)  spouse,  (B)
18        dependent parent who is receiving at least half of his or
19        her  support  from  the  TRS  benefit  recipient,  or (C)
20        unmarried natural or adopted child who is (i)  under  age
21        19,  or  (ii)  enrolled  as  a  full-time  student  in an
22        accredited school, financially  dependent  upon  the  TRS
23        benefit  recipient, eligible to be claimed as a dependent
24        for income tax purposes, and either is under  age  24  or
25        was,  on  January  1,  1996, participating as a dependent
26        beneficiary in the health insurance program offered under
27        Article 16 of the Illinois Pension Code, or (iii) age  19
28        or over who is mentally or physically handicapped.
29        (x)  "Military  leave  with  pay  and benefits" refers to
30    individuals in basic training for reserves,  special/advanced
31    training,  annual  training, emergency call up, or activation
32    by the President of the United States with approved  pay  and
33    benefits.
34        (y)  "Military  leave without pay and benefits" refers to
 
                            -11-               LRB9206265EGfg
 1    individuals who enlist for active duty in a regular component
 2    of the U.S. Armed Forces  or  other  duty  not  specified  or
 3    authorized under military leave with pay and benefits.
 4        (z)  "Community college benefit recipient" means a person
 5    who:
 6             (1)  is  not  a "member" as defined in this Section;
 7        and
 8             (2)  is receiving a monthly  survivor's  annuity  or
 9        retirement  annuity  under  Article  15  of  the Illinois
10        Pension Code; and
11             (3)  either  (i)  was  a  full-time  employee  of  a
12        community college district or an association of community
13        college boards created under the Public Community College
14        Act (other than an employee  whose  last  employer  under
15        Article  15  of the Illinois Pension Code was a community
16        college district subject to Article  VII  of  the  Public
17        Community College Act) and was eligible to participate in
18        a  group  health  benefit  plan as an employee during the
19        time of that employment with a community college district
20        (other than  a  community  college  district  subject  to
21        Article  VII  of  the Public Community College Act) or an
22        association of community college boards, or  a  part-time
23        employee  of  a  community college district (other than a
24        community college district subject to Article VII of  the
25        Public   Community  College  Act)  who  was  eligible  to
26        participate in a group health benefit plan as an employee
27        during the time of that employment  and  who  elected  to
28        participate  in the program established under Section 6.9
29        as provided in subsection (c) of that Section; or (ii) is
30        the survivor of a person described in item (i).
31        (aa)  "Community college dependent beneficiary"  means  a
32    person who:
33             (1)  is  not a "member" or "dependent" as defined in
34        this Section; and
 
                            -12-               LRB9206265EGfg
 1             (2)  is a community college benefit recipient's: (A)
 2        spouse, (B) dependent parent who is  receiving  at  least
 3        half  of  his  or  her support from the community college
 4        benefit recipient, or (C) unmarried  natural  or  adopted
 5        child  who  is  (i)  under  age 19, or (ii) enrolled as a
 6        full-time student in an  accredited  school,  financially
 7        dependent  upon  the community college benefit recipient,
 8        eligible to be claimed as  a  dependent  for  income  tax
 9        purposes  and  under  age 23, or (iii) age 19 or over and
10        mentally or physically handicapped.
11    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
12    eff. 8-16-97; 90-497, eff.  8-18-97;  90-511,  eff.  8-22-97;
13    90-582,  eff.  5-27-98;  90-655,  eff.  7-30-98; 91-390, eff.
14    7-30-99; 91-395, eff. 7-30-99; 91-617, eff, 8-19-99;  revised
15    10-19-99.)

16        (5 ILCS 375/6.9)
17        Sec.  6.9.  Health benefits for community college benefit
18    recipients and community college dependent beneficiaries.
19        (a)  Purpose.  It is the purpose of this  amendatory  Act
20    of 1997 to establish a uniform program of health benefits for
21    community  college  benefit  recipients  and  their dependent
22    beneficiaries under the administration of the  Department  of
23    Central Management Services.
24        (b)  Creation  of  program.   Beginning July 1, 1999, the
25    Department  of   Central   Management   Services   shall   be
26    responsible  for  administering  a program of health benefits
27    for  community  college  benefit  recipients  and   community
28    college  dependent  beneficiaries  under  this  Section.  The
29    State  Universities  Retirement  System  and  the  boards  of
30    trustees of the various  community  college  districts  shall
31    cooperate with the Department in this endeavor.
32        (c)  Eligibility.     All   community   college   benefit
33    recipients  and  community  college  dependent  beneficiaries
 
                            -13-               LRB9206265EGfg
 1    shall be eligible to participate in the  program  established
 2    under  this  Section,  without  any  interruption or delay in
 3    coverage or limitation as to pre-existing medical conditions.
 4    Eligibility to participate shall be determined by  the  State
 5    Universities  Retirement  System.    Eligibility  information
 6    shall be communicated to the Department of Central Management
 7    Services in a format acceptable to the Department.
 8        Beginning  January  1,  2001,  a  part-time employee of a
 9    community college district (other than  a  community  college
10    district  subject  to  Article  VII  of  the Public Community
11    College Act) who is eligible to participate in a group health
12    benefit plan as an employee may elect to participate  in  the
13    program established under this Section.  The election must be
14    in  writing  and  filed  with  the  employer  and  the  State
15    Universities   Retirement   System.   A  person  making  this
16    election  and  the  employer  must  make  the   contributions
17    specified in Section 6.10.
18        (d)  Coverage.   The  health  benefit  coverage  provided
19    under  this Section shall be a program of health, dental, and
20    vision benefits.
21        The program of health benefits  under  this  Section  may
22    include  any or all of the benefit limitations, including but
23    not limited to a reduction in benefits based  on  eligibility
24    for  federal  medicare  benefits,  that  are  provided  under
25    subsection  (a)  of  Section  6  of this Act for other health
26    benefit programs under this Act.
27        (e)  Insurance rates and premiums.   The  Director  shall
28    determine  the  insurance  rates  and  premiums for community
29    college benefit recipients and  community  college  dependent
30    beneficiaries.   Rates  and  premiums may be based in part on
31    age  and  eligibility  for  federal  Medicare  coverage.  The
32    Director shall also determine premiums that  will  allow  for
33    the  establishment  of  an actuarially sound reserve for this
34    program.
 
                            -14-               LRB9206265EGfg
 1        The cost of health benefits under the  program  shall  be
 2    paid as follows:
 3             (1)  For  a  community college benefit recipient, up
 4        to 75% of the total insurance rate shall be paid from the
 5        Community College Health Insurance Security Fund.
 6             (2)  The balance of the rate of insurance, including
 7        the entire premium for any coverage for community college
 8        dependent beneficiaries that has been elected,  shall  be
 9        paid  by  deductions  authorized by the community college
10        benefit recipient to be withheld from his or her  monthly
11        annuity  or  benefit  payment from the State Universities
12        Retirement System; except that (i) if the balance of  the
13        cost  of  coverage  exceeds  the  amount  of  the monthly
14        annuity or benefit payment, the difference shall be  paid
15        directly  to  the State Universities Retirement System by
16        the community college benefit recipient, and (ii) all  or
17        part  of  the balance of the cost of coverage may, at the
18        option of the board of trustees of the community  college
19        district,  be  paid  to the State Universities Retirement
20        System by the board of  the  community  college  district
21        from   which  the  community  college  benefit  recipient
22        retired.  The State Universities Retirement System  shall
23        promptly  deposit  all  moneys  withheld by or paid to it
24        under this subdivision (e)(2) into the Community  College
25        Health  Insurance  Security Fund.  These moneys shall not
26        be considered assets of the State Universities Retirement
27        System.
28        (f)  Financing.    All   revenues   arising   from    the
29    administration  of  the  health  benefit  program established
30    under this Section shall  be  deposited  into  the  Community
31    College  Health  Insurance  Security  Fund,  which  is hereby
32    created as a nonappropriated trust fund to  be  held  outside
33    the  State  Treasury,  with the State Treasurer as custodian.
34    Any interest earned on moneys in the Community College Health
 
                            -15-               LRB9206265EGfg
 1    Insurance Security Fund shall be deposited into the Fund.
 2        Moneys in the Community College Health Insurance Security
 3    Fund shall be used only  to  pay  the  costs  of  the  health
 4    benefit  program  established  under  this Section, including
 5    associated administrative costs and the  establishment  of  a
 6    program  reserve.   Beginning January 1, 1999, the Department
 7    of Central Management Services may make expenditures from the
 8    Community College Health Insurance Security  Fund  for  those
 9    costs.
10        (g)  Contract   for  benefits.   The  Director  shall  by
11    contract, self-insurance, or  otherwise  make  available  the
12    program  of  health  benefits  for  community college benefit
13    recipients   and   their    community    college    dependent
14    beneficiaries  that  is  provided  for  in this Section.  The
15    contract or other arrangement  for  the  provision  of  these
16    health  benefits  shall be on terms deemed by the Director to
17    be in the best interest of the  State  of  Illinois  and  the
18    community  college  benefit  recipients  based  on,  but  not
19    limited  to,  such  criteria  as administrative cost, service
20    capabilities of the carrier  or  other  contractor,  and  the
21    costs of the benefits.
22        (h)  Continuation of program.  It is the intention of the
23    General Assembly that the program of health benefits provided
24    under  this  Section  be maintained on an ongoing, affordable
25    basis.  The program of health benefits  provided  under  this
26    Section may be amended by the State and is not intended to be
27    a  pension  or retirement benefit subject to protection under
28    Article XIII, Section 5 of the Illinois Constitution.
29        (i)  Other health benefit plans.  A health  benefit  plan
30    provided  by  a  community  college  district  (other  than a
31    community college district subject  to  Article  VII  of  the
32    Public Community College Act) under the terms of a collective
33    bargaining  agreement  in effect on or prior to the effective
34    date of this amendatory Act of 1997 shall continue  in  force
 
                            -16-               LRB9206265EGfg
 1    according  to  the  terms of that agreement, unless otherwise
 2    mutually agreed by the parties  to  that  agreement  and  the
 3    affected  retiree.   A community college benefit recipient or
 4    community college dependent beneficiary whose coverage  under
 5    such  a plan expires shall be eligible to begin participating
 6    in the program established under  this  Section  without  any
 7    interruption  or  delay  in  coverage  or  limitation  as  to
 8    pre-existing medical conditions.
 9        This Act does not prohibit any community college district
10    from  offering additional health benefits for its retirees or
11    their dependents or survivors.
12    (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)

13        (5 ILCS 375/6.10)
14        Sec. 6.10.  Contributions to the Community College Health
15    Insurance Security Fund.
16        (a)  Beginning January 1, 1999, every active  contributor
17    of  the  State  Universities  Retirement  System (established
18    under Article 15 of the Illinois Pension Code) who (1)  is  a
19    full-time  employee  of  a  community college district (other
20    than a community college district subject to Article  VII  of
21    the  Public  Community  College  Act)  or  an  association of
22    community college boards, or a  part-time  employee  who  has
23    elected  to  participate  under subsection (c) of Section 6.9
24    and (2) is not an employee as defined in Section  3  of  this
25    Act  shall  make  contributions  toward the cost of community
26    college annuitant and survivor health benefits at the rate of
27    0.50% of salary.
28        These contributions shall be deducted by the employer and
29    paid to the State Universities Retirement System  as  service
30    agent for the Department of Central Management Services.  The
31    System   may  use  the  same  processes  for  collecting  the
32    contributions required by this subsection  that  it  uses  to
33    collect the contributions received from those employees under
 
                            -17-               LRB9206265EGfg
 1    Section 15-157 of the Illinois Pension Code.  An employer may
 2    agree to pick up or pay the contributions required under this
 3    subsection  on  behalf  of  the  employee; such contributions
 4    shall be deemed to have been paid by the employee.
 5        The State Universities Retirement System  shall  promptly
 6    deposit  all  moneys collected under this subsection (a) into
 7    the Community College Health Insurance Security Fund  created
 8    in  Section 6.9 of this Act.  The moneys collected under this
 9    Section shall be used only for  the  purposes  authorized  in
10    Section  6.9  of  this  Act and shall not be considered to be
11    assets  of  the   State   Universities   Retirement   System.
12    Contributions made under this Section are not transferable to
13    other  pension  funds  or  retirement  systems  and  are  not
14    refundable upon termination of service.
15        (b)  Beginning  January  1, 1999, every community college
16    district (other than a community college district subject  to
17    Article   VII   of  the  Public  Community  College  Act)  or
18    association of community college boards that is  an  employer
19    under   the   State   Universities  Retirement  System  shall
20    contribute toward the cost of the  community  college  health
21    benefits  provided  under  Section  6.9 of this Act an amount
22    equal to 0.50% of the salary paid to its full-time  employees
23    who  participate  in the State Universities Retirement System
24    and are not members as defined in Section 3 of this  Act  and
25    each   of   its  part-time  employees  who  have  elected  to
26    participate under subsection (c) of Section 6.9.
27        These contributions shall be paid by the employer to  the
28    State Universities Retirement System as service agent for the
29    Department  of  Central  Management Services.  The System may
30    use the  same  processes  for  collecting  the  contributions
31    required  by  this  subsection  that  it  uses to collect the
32    contributions received from  those  employers  under  Section
33    15-155 of the Illinois Pension Code.
34        The  State  Universities Retirement System shall promptly
 
                            -18-               LRB9206265EGfg
 1    deposit all moneys collected under this subsection  (b)  into
 2    the  Community College Health Insurance Security Fund created
 3    in Section 6.9 of this Act.  The moneys collected under  this
 4    Section  shall  be  used  only for the purposes authorized in
 5    Section 6.9 of this Act and shall not  be  considered  to  be
 6    assets   of   the   State   Universities  Retirement  System.
 7    Contributions made under this Section are not transferable to
 8    other  pension  funds  or  retirement  systems  and  are  not
 9    refundable upon termination of service.
10        (c)  On or before November 15 of each year, the Board  of
11    Trustees  of  the  State Universities Retirement System shall
12    certify to the Governor, the Director of  Central  Management
13    Services, and the State Comptroller its estimate of the total
14    amount  of  contributions  to be paid under subsection (a) of
15    this Section for the next  fiscal  year.   The  certification
16    shall  include  a  detailed  explanation  of  the methods and
17    information that the  Board  relied  upon  in  preparing  its
18    estimate.   As  soon  as possible after the effective date of
19    this Section, the Board shall submit its estimate for  fiscal
20    year 1999.
21        (d)  Beginning  in  fiscal year 1999, on the first day of
22    each month, or as soon thereafter as may  be  practical,  the
23    State Treasurer and the State Comptroller shall transfer from
24    the  General  Revenue  Fund  to  the Community College Health
25    Insurance  Security  Fund   1/12   of   the   annual   amount
26    appropriated  for  that  fiscal year to the State Comptroller
27    for deposit  into  the  Community  College  Health  Insurance
28    Security  Fund  under  Section 1.4 of the State Pension Funds
29    Continuing Appropriation Act.
30        (e)  Except where otherwise specified  in  this  Section,
31    the  definitions  that  apply  to  Article 15 of the Illinois
32    Pension Code apply to this Section.
33    (Source: P.A. 90-497, eff. 8-18-97; 91-887, eff. 7-6-00.)
 
                            -19-               LRB9206265EGfg
 1        Section 90.  The State Mandates Act is amended by  adding
 2    Section 8.25 as follows:

 3        (30 ILCS 805/8.25 new)
 4        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
 5    and 8 of this Act, no reimbursement by the State is  required
 6    for  the  implementation  of  any  mandate  created  by  this
 7    amendatory Act of the 92nd General Assembly.

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