Bill Text: IL HB3258 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the State Employees Group Insurance Act of 1971. In the definition Section, provides that the term "annuitant" includes an employee who retires from one of the specified retirement systems on a form of authorized retirement benefit distribution other than an immediate annuity; specifies that this includes an employee who retires under the SURS self-managed plan and chooses a form of distribution other than an immediate retirement annuity. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB3258 Detail]

Download: Illinois-2017-HB3258-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3258

Introduced , by Rep. Sara Wojcicki Jimenez

SYNOPSIS AS INTRODUCED:
5 ILCS 375/3 from Ch. 127, par. 523

Amends the State Employees Group Insurance Act of 1971. In the definition Section, provides that the term "annuitant" includes an employee who retires from one of the specified retirement systems on a form of authorized retirement benefit distribution other than an immediate annuity; specifies that this includes an employee who retires under the SURS self-managed plan and chooses a form of distribution other than an immediate retirement annuity. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Section 3 as follows:
6 (5 ILCS 375/3) (from Ch. 127, par. 523)
7 Sec. 3. Definitions. Unless the context otherwise
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13 (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18 (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20(or other form of authorized retirement benefit distribution in
21lieu of an immediate annuity) under the provisions of Articles
222, 14 (including an employee who has elected to receive an
23alternative retirement cancellation payment under Section

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114-108.5 of the Illinois Pension Code in lieu of an annuity),
215 (including an employee who has retired under the optional
3retirement program established under Section 15-158.2,
4regardless of whether the retired employee chooses under that
5program a form of distribution other than an immediate
6retirement annuity), paragraphs (2), (3), or (5) of Section
716-106, or Article 18 of the Illinois Pension Code; (2) any
8person who was receiving group insurance coverage under this
9Act as of March 31, 1978 by reason of his status as an
10annuitant, even though the annuity in relation to which such
11coverage was provided is a proportional annuity based on less
12than the minimum period of service required for a retirement
13annuity in the system involved; (3) any person not otherwise
14covered by this Act who has retired as a participating member
15under Article 2 of the Illinois Pension Code but is ineligible
16for the retirement annuity under Section 2-119 of the Illinois
17Pension Code; (4) the spouse of any person who is receiving a
18retirement annuity under Article 18 of the Illinois Pension
19Code and who is covered under a group health insurance program
20sponsored by a governmental employer other than the State of
21Illinois and who has irrevocably elected to waive his or her
22coverage under this Act and to have his or her spouse
23considered as the "annuitant" under this Act and not as a
24"dependent"; or (5) an employee who retires, or has retired,
25from a qualified position, as determined according to rules
26promulgated by the Director, under a qualified local

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1government, a qualified rehabilitation facility, a qualified
2domestic violence shelter or service, or a qualified child
3advocacy center. (For definition of "retired employee", see (p)
4post).
5 (b-5) (Blank).
6 (b-6) (Blank).
7 (b-7) (Blank).
8 (c) "Carrier" means (1) an insurance company, a corporation
9organized under the Limited Health Service Organization Act or
10the Voluntary Health Services Plan Act, a partnership, or other
11nongovernmental organization, which is authorized to do group
12life or group health insurance business in Illinois, or (2) the
13State of Illinois as a self-insurer.
14 (d) "Compensation" means salary or wages payable on a
15regular payroll by the State Treasurer on a warrant of the
16State Comptroller out of any State, trust or federal fund, or
17by the Governor of the State through a disbursing officer of
18the State out of a trust or out of federal funds, or by any
19Department out of State, trust, federal or other funds held by
20the State Treasurer or the Department, to any person for
21personal services currently performed, and ordinary or
22accidental disability benefits under Articles 2, 14, 15
23(including ordinary or accidental disability benefits under
24the optional retirement program established under Section
2515-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
26Article 18 of the Illinois Pension Code, for disability

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1incurred after January 1, 1966, or benefits payable under the
2Workers' Compensation or Occupational Diseases Act or benefits
3payable under a sick pay plan established in accordance with
4Section 36 of the State Finance Act. "Compensation" also means
5salary or wages paid to an employee of any qualified local
6government, qualified rehabilitation facility, qualified
7domestic violence shelter or service, or qualified child
8advocacy center.
9 (e) "Commission" means the State Employees Group Insurance
10Advisory Commission authorized by this Act. Commencing July 1,
111984, "Commission" as used in this Act means the Commission on
12Government Forecasting and Accountability as established by
13the Legislative Commission Reorganization Act of 1984.
14 (f) "Contributory", when referred to as contributory
15coverage, shall mean optional coverages or benefits elected by
16the member toward the cost of which such member makes
17contribution, or which are funded in whole or in part through
18the acceptance of a reduction in earnings or the foregoing of
19an increase in earnings by an employee, as distinguished from
20noncontributory coverage or benefits which are paid entirely by
21the State of Illinois without reduction of the member's salary.
22 (g) "Department" means any department, institution, board,
23commission, officer, court or any agency of the State
24government receiving appropriations and having power to
25certify payrolls to the Comptroller authorizing payments of
26salary and wages against such appropriations as are made by the

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1General Assembly from any State fund, or against trust funds
2held by the State Treasurer and includes boards of trustees of
3the retirement systems created by Articles 2, 14, 15, 16 and 18
4of the Illinois Pension Code. "Department" also includes the
5Illinois Comprehensive Health Insurance Board, the Board of
6Examiners established under the Illinois Public Accounting
7Act, and the Illinois Finance Authority.
8 (h) "Dependent", when the term is used in the context of
9the health and life plan, means a member's spouse and any child
10(1) from birth to age 26 including an adopted child, a child
11who lives with the member from the time of the filing of a
12petition for adoption until entry of an order of adoption, a
13stepchild or adjudicated child, or a child who lives with the
14member if such member is a court appointed guardian of the
15child or (2) age 19 or over who has a mental or physical
16disability from a cause originating prior to the age of 19 (age
1726 if enrolled as an adult child dependent). For the health
18plan only, the term "dependent" also includes (1) any person
19enrolled prior to the effective date of this Section who is
20dependent upon the member to the extent that the member may
21claim such person as a dependent for income tax deduction
22purposes and (2) any person who has received after June 30,
232000 an organ transplant and who is financially dependent upon
24the member and eligible to be claimed as a dependent for income
25tax purposes. A member requesting to cover any dependent must
26provide documentation as requested by the Department of Central

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1Management Services and file with the Department any and all
2forms required by the Department.
3 (i) "Director" means the Director of the Illinois
4Department of Central Management Services.
5 (j) "Eligibility period" means the period of time a member
6has to elect enrollment in programs or to select benefits
7without regard to age, sex or health.
8 (k) "Employee" means and includes each officer or employee
9in the service of a department who (1) receives his
10compensation for service rendered to the department on a
11warrant issued pursuant to a payroll certified by a department
12or on a warrant or check issued and drawn by a department upon
13a trust, federal or other fund or on a warrant issued pursuant
14to a payroll certified by an elected or duly appointed officer
15of the State or who receives payment of the performance of
16personal services on a warrant issued pursuant to a payroll
17certified by a Department and drawn by the Comptroller upon the
18State Treasurer against appropriations made by the General
19Assembly from any fund or against trust funds held by the State
20Treasurer, and (2) is employed full-time or part-time in a
21position normally requiring actual performance of duty during
22not less than 1/2 of a normal work period, as established by
23the Director in cooperation with each department, except that
24persons elected by popular vote will be considered employees
25during the entire term for which they are elected regardless of
26hours devoted to the service of the State, and (3) except that

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1"employee" does not include any person who is not eligible by
2reason of such person's employment to participate in one of the
3State retirement systems under Articles 2, 14, 15 (either the
4regular Article 15 system or the optional retirement program
5established under Section 15-158.2) or 18, or under paragraph
6(2), (3), or (5) of Section 16-106, of the Illinois Pension
7Code, but such term does include persons who are employed
8during the 6 month qualifying period under Article 14 of the
9Illinois Pension Code. Such term also includes any person who
10(1) after January 1, 1966, is receiving ordinary or accidental
11disability benefits under Articles 2, 14, 15 (including
12ordinary or accidental disability benefits under the optional
13retirement program established under Section 15-158.2),
14paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
15the Illinois Pension Code, for disability incurred after
16January 1, 1966, (2) receives total permanent or total
17temporary disability under the Workers' Compensation Act or
18Occupational Disease Act as a result of injuries sustained or
19illness contracted in the course of employment with the State
20of Illinois, or (3) is not otherwise covered under this Act and
21has retired as a participating member under Article 2 of the
22Illinois Pension Code but is ineligible for the retirement
23annuity under Section 2-119 of the Illinois Pension Code.
24However, a person who satisfies the criteria of the foregoing
25definition of "employee" except that such person is made
26ineligible to participate in the State Universities Retirement

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1System by clause (4) of subsection (a) of Section 15-107 of the
2Illinois Pension Code is also an "employee" for the purposes of
3this Act. "Employee" also includes any person receiving or
4eligible for benefits under a sick pay plan established in
5accordance with Section 36 of the State Finance Act. "Employee"
6also includes (i) each officer or employee in the service of a
7qualified local government, including persons appointed as
8trustees of sanitary districts regardless of hours devoted to
9the service of the sanitary district, (ii) each employee in the
10service of a qualified rehabilitation facility, (iii) each
11full-time employee in the service of a qualified domestic
12violence shelter or service, and (iv) each full-time employee
13in the service of a qualified child advocacy center, as
14determined according to rules promulgated by the Director.
15 (l) "Member" means an employee, annuitant, retired
16employee or survivor. In the case of an annuitant or retired
17employee who first becomes an annuitant or retired employee on
18or after the effective date of this amendatory Act of the 97th
19General Assembly, the individual must meet the minimum vesting
20requirements of the applicable retirement system in order to be
21eligible for group insurance benefits under that system. In the
22case of a survivor who first becomes a survivor on or after the
23effective date of this amendatory Act of the 97th General
24Assembly, the deceased employee, annuitant, or retired
25employee upon whom the annuity is based must have been eligible
26to participate in the group insurance system under the

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1applicable retirement system in order for the survivor to be
2eligible for group insurance benefits under that system.
3 (m) "Optional coverages or benefits" means those coverages
4or benefits available to the member on his or her voluntary
5election, and at his or her own expense.
6 (n) "Program" means the group life insurance, health
7benefits and other employee benefits designed and contracted
8for by the Director under this Act.
9 (o) "Health plan" means a health benefits program offered
10by the State of Illinois for persons eligible for the plan.
11 (p) "Retired employee" means any person who would be an
12annuitant as that term is defined herein but for the fact that
13such person retired prior to January 1, 1966. Such term also
14includes any person formerly employed by the University of
15Illinois in the Cooperative Extension Service who would be an
16annuitant but for the fact that such person was made ineligible
17to participate in the State Universities Retirement System by
18clause (4) of subsection (a) of Section 15-107 of the Illinois
19Pension Code.
20 (q) "Survivor" means a person receiving an annuity as a
21survivor of an employee or of an annuitant. "Survivor" also
22includes: (1) the surviving dependent of a person who satisfies
23the definition of "employee" except that such person is made
24ineligible to participate in the State Universities Retirement
25System by clause (4) of subsection (a) of Section 15-107 of the
26Illinois Pension Code; (2) the surviving dependent of any

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1person formerly employed by the University of Illinois in the
2Cooperative Extension Service who would be an annuitant except
3for the fact that such person was made ineligible to
4participate in the State Universities Retirement System by
5clause (4) of subsection (a) of Section 15-107 of the Illinois
6Pension Code; and (3) the surviving dependent of a person who
7was an annuitant under this Act by virtue of receiving an
8alternative retirement cancellation payment under Section
914-108.5 of the Illinois Pension Code.
10 (q-2) "SERS" means the State Employees' Retirement System
11of Illinois, created under Article 14 of the Illinois Pension
12Code.
13 (q-3) "SURS" means the State Universities Retirement
14System, created under Article 15 of the Illinois Pension Code.
15 (q-4) "TRS" means the Teachers' Retirement System of the
16State of Illinois, created under Article 16 of the Illinois
17Pension Code.
18 (q-5) (Blank).
19 (q-6) (Blank).
20 (q-7) (Blank).
21 (r) "Medical services" means the services provided within
22the scope of their licenses by practitioners in all categories
23licensed under the Medical Practice Act of 1987.
24 (s) "Unit of local government" means any county,
25municipality, township, school district (including a
26combination of school districts under the Intergovernmental

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1Cooperation Act), special district or other unit, designated as
2a unit of local government by law, which exercises limited
3governmental powers or powers in respect to limited
4governmental subjects, any not-for-profit association with a
5membership that primarily includes townships and township
6officials, that has duties that include provision of research
7service, dissemination of information, and other acts for the
8purpose of improving township government, and that is funded
9wholly or partly in accordance with Section 85-15 of the
10Township Code; any not-for-profit corporation or association,
11with a membership consisting primarily of municipalities, that
12operates its own utility system, and provides research,
13training, dissemination of information, or other acts to
14promote cooperation between and among municipalities that
15provide utility services and for the advancement of the goals
16and purposes of its membership; the Southern Illinois
17Collegiate Common Market, which is a consortium of higher
18education institutions in Southern Illinois; the Illinois
19Association of Park Districts; and any hospital provider that
20is owned by a county that has 100 or fewer hospital beds and
21has not already joined the program. "Qualified local
22government" means a unit of local government approved by the
23Director and participating in a program created under
24subsection (i) of Section 10 of this Act.
25 (t) "Qualified rehabilitation facility" means any
26not-for-profit organization that is accredited by the

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1Commission on Accreditation of Rehabilitation Facilities or
2certified by the Department of Human Services (as successor to
3the Department of Mental Health and Developmental
4Disabilities) to provide services to persons with disabilities
5and which receives funds from the State of Illinois for
6providing those services, approved by the Director and
7participating in a program created under subsection (j) of
8Section 10 of this Act.
9 (u) "Qualified domestic violence shelter or service" means
10any Illinois domestic violence shelter or service and its
11administrative offices funded by the Department of Human
12Services (as successor to the Illinois Department of Public
13Aid), approved by the Director and participating in a program
14created under subsection (k) of Section 10.
15 (v) "TRS benefit recipient" means a person who:
16 (1) is not a "member" as defined in this Section; and
17 (2) is receiving a monthly benefit or retirement
18 annuity under Article 16 of the Illinois Pension Code; 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 of
24 creditable service under Article 16 of the Illinois Pension
25 Code or was enrolled in the health insurance program
26 offered under that Article on the effective date of this

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1 amendatory Act of 1995, or (iv) is a recipient or survivor
2 of a recipient of a disability benefit under Article 16 of
3 the Illinois Pension Code.
4 (w) "TRS dependent beneficiary" means a person who:
5 (1) is not a "member" or "dependent" as defined in this
6 Section; and
7 (2) is a TRS benefit recipient's: (A) spouse, (B)
8 dependent parent who is receiving at least half of his or
9 her support from the TRS benefit recipient, or (C) natural,
10 step, adjudicated, or adopted child who is (i) under age
11 26, (ii) was, on January 1, 1996, participating as a
12 dependent beneficiary in the health insurance program
13 offered under Article 16 of the Illinois Pension Code, or
14 (iii) age 19 or over who has a mental or physical
15 disability from a cause originating prior to the age of 19
16 (age 26 if enrolled as an adult child).
17 "TRS dependent beneficiary" does not include, as indicated
18under paragraph (2) of this subsection (w), a dependent of the
19survivor of a TRS benefit recipient who first becomes a
20dependent of a survivor of a TRS benefit recipient on or after
21the effective date of this amendatory Act of the 97th General
22Assembly unless that dependent would have been eligible for
23coverage as a dependent of the deceased TRS benefit recipient
24upon whom the survivor benefit is based.
25 (x) "Military leave" refers to individuals in basic
26training for reserves, special/advanced training, annual

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1training, emergency call up, activation by the President of the
2United States, or any other training or duty in service to the
3United States Armed Forces.
4 (y) (Blank).
5 (z) "Community college benefit recipient" means a person
6who:
7 (1) is not a "member" as defined in this Section; and
8 (2) is receiving a monthly survivor's annuity or
9 retirement annuity under Article 15 of the Illinois Pension
10 Code; and
11 (3) either (i) was a full-time employee of a community
12 college district or an association of community college
13 boards created under the Public Community College Act
14 (other than an employee whose last employer under Article
15 15 of the Illinois Pension Code was a community college
16 district subject to Article VII of the Public Community
17 College Act) and was eligible to participate in a group
18 health benefit plan as an employee during the time of
19 employment with a community college district (other than a
20 community college district subject to Article VII of the
21 Public Community College Act) or an association of
22 community college boards, or (ii) is the survivor of a
23 person described in item (i).
24 (aa) "Community college dependent beneficiary" means a
25person who:
26 (1) is not a "member" or "dependent" as defined in this

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1 Section; and
2 (2) is a community college benefit recipient's: (A)
3 spouse, (B) dependent parent who is receiving at least half
4 of his or her support from the community college benefit
5 recipient, or (C) natural, step, adjudicated, or adopted
6 child who is (i) under age 26, or (ii) age 19 or over and
7 has a mental or physical disability from a cause
8 originating prior to the age of 19 (age 26 if enrolled as
9 an adult child).
10 "Community college dependent beneficiary" does not
11include, as indicated under paragraph (2) of this subsection
12(aa), a dependent of the survivor of a community college
13benefit recipient who first becomes a dependent of a survivor
14of a community college benefit recipient on or after the
15effective date of this amendatory Act of the 97th General
16Assembly unless that dependent would have been eligible for
17coverage as a dependent of the deceased community college
18benefit recipient upon whom the survivor annuity is based.
19 (bb) "Qualified child advocacy center" means any Illinois
20child advocacy center and its administrative offices funded by
21the Department of Children and Family Services, as defined by
22the Children's Advocacy Center Act (55 ILCS 80/), approved by
23the Director and participating in a program created under
24subsection (n) of Section 10.
25(Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
26 Section 99. Effective date. This Act takes effect upon

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1becoming law.
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