Bill Text: IL HB1298 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the State Employees Group Insurance Act of 1971. Provides that, notwithstanding any other law to the contrary, the Teachers Health Insurance Security Fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Teachers Health Insurance Security Fund into any other fund of the State. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB1298 Detail]

Download: Illinois-2013-HB1298-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB1298 Introduced , by Rep. Pam Roth SYNOPSIS AS INTRODUCED:
5 ILCS 375/6.6
Amends the State Employees Group Insurance Act of 1971. Provides that, notwithstanding any other law to the contrary, the Teachers Health Insurance Security Fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Teachers Health Insurance Security Fund into any other fund of the State. Effective immediately
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A BILL FOR
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AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Section 6.6 as follows:
(5 ILCS 375/6.6)
Sec. 6.6. Contributions to the Teacher Health Insurance
Security Fund.
(a) Beginning July 1, 1995, all active contributors of the
Teachers' Retirement System (established under Article 16 of
the Illinois Pension Code) who are not employees of a
department as defined in Section 3 of this Act shall make
contributions toward the cost of annuitant and survivor health
benefits. These contributions shall be at the following rates:
until January 1, 2002, 0.5% of salary; beginning January 1,
2002, 0.65% of salary; beginning July 1, 2003, 0.75% of salary;
beginning July 1, 2005, 0.80% of salary; beginning July 1,
2007, a percentage of salary to be determined by the Department
of Central Management Services by rule, which in each fiscal
year shall not exceed 105% of the percentage of salary actually
required to be paid in the previous fiscal year.
These contributions shall be deducted by the employer and
paid to the System as service agent for the Department of

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Central Management Services. The System may use the same
processes for collecting the contributions required by this
subsection that it uses to collect contributions received from
school districts and other covered employers under Sections
16-154 and 16-155 of the Illinois Pension Code.
An employer may agree to pick up or pay the contributions
required under this subsection on behalf of the teacher; such
contributions shall be deemed to have to have been paid by the
teacher. Beginning January 1, 2002, if the employer does not
directly pay the required member contribution, then the
employer shall reduce the member's salary by an amount equal to
the required contribution and shall then pay the contribution
on behalf of the member. This reduction shall not change the
amounts reported as creditable earnings to the Teachers'
Retirement System.
A person who purchases optional service credit under
Article 16 of the Illinois Pension Code for a period after June
30, 1995 must also make a contribution under this subsection
for that optional credit, at the rate provided in subsection
(a), based on the salary used in computing the optional service
credit, plus interest on this employee contribution. This
contribution shall be collected by the System as service agent
for the Department of Central Management Services. The
contribution required under this subsection for the optional
service credit must be paid in full before any annuity based on
that credit begins.

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(a-5) Beginning January 1, 2002, every employer of a
teacher (other than an employer that is a department as defined
in Section 3 of this Act) shall pay an employer contribution
toward the cost of annuitant and survivor health benefits.
These contributions shall be computed as follows:
(1) Beginning January 1, 2002 through June 30, 2003,
the employer contribution shall be equal to 0.4% of each
teacher's salary.
(2) Beginning July 1, 2003, the employer contribution
shall be equal to 0.5% of each teacher's salary.
(3) Beginning July 1, 2005, the employer contribution
shall be equal to 0.6% of each teacher's salary.
(4) Beginning July 1, 2007, the employer contribution
shall be a percentage of each teacher's salary to be
determined by the Department of Central Management
Services by rule, which in each fiscal year shall not
exceed 105% of the percentage of each teacher's salary
actually required to be paid in the previous fiscal year.
These contributions shall be paid by the employer to the
System as service agent for the Department of Central
Management Services. The System may use the same processes for
collecting the contributions required by this subsection that
it uses to collect contributions received from school districts
and other covered employers under the Illinois Pension Code.
The school district or other employing unit may pay these
employer contributions out of any source of funding available

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for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
(b) The Teachers' Retirement System shall promptly deposit
all moneys collected under subsections (a) and (a-5) of this
Section into the Teacher Health Insurance Security Fund created
in Section 6.5 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.5 of this Act and shall not be considered to be
assets of the Teachers' Retirement System. Contributions made
under this Section are not transferable to other pension funds
or retirement systems and are not refundable upon termination
of service.
(c) On or before November 15 of each year, the Board of
Trustees of the Teachers' Retirement System shall certify to
the Governor, the Director of Central Management Services, and
the State Comptroller its estimate of the total amount of
contributions to be paid under subsection (a) of this Section
6.6 for the next fiscal year. The amount certified shall be
decreased or increased each year by the amount that the actual
active teacher contributions either fell short of or exceeded
the estimate used by the Board in making the certification for
the previous fiscal year. The certification shall include a
detailed explanation of the methods and information that the
Board relied upon in preparing its estimate. As soon as
possible after the effective date of this amendatory Act of the

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92nd General Assembly, the Board shall recalculate and
recertify its certifications for fiscal years 2002 and 2003.
(d) Beginning in fiscal year 1996, on the first day of each
month, or as soon thereafter as may be practical, the State
Treasurer and the State Comptroller shall transfer from the
General Revenue Fund to the Teacher Health Insurance Security
Fund 1/12 of the annual amount appropriated for that fiscal
year to the State Comptroller for deposit into the Teacher
Health Insurance Security Fund under Section 1.3 of the State
Pension Funds Continuing Appropriation Act.
(e) Except where otherwise specified in this Section, the
definitions that apply to Article 16 of the Illinois Pension
Code apply to this Section.
(f) (Blank).
(g) Notwithstanding any other law to the contrary, the
Teachers Health Insurance Security Fund is not subject to
sweeps, administrative charge-backs, or any other fiscal or
budgetary maneuver that would in any way transfer any amounts
from the Teachers Health Insurance Security Fund into any other
fund of the State.
(Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)
Section 99. Effective date. This Act takes effect upon
becoming law.