Bill Text: IL SB1711 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the State Employees Group Insurance Act of 1971. Increases, beginning April 1, 2011, the required contributions for every active contributor of the State Universities Retirement System (established under Article 15 of the Illinois Pension Code) who (1) is a full-time employee of a community college district (other than a community college district subject to Article VII of the Public Community College Act) or an association of community college boards and (2) is not an employee as defined in a separate provision of the Act. Increases, beginning April 1, 2011, the required contribution every community college district (other than a community college district subject to Article VII of the Public Community College Act) or association of community college boards that is an employer under the State Universities Retirement System must contribute toward the cost of community college health benefits. Amends the State Pension Funds Continuing Appropriation Act. In provisions concerning the Community College Health Insurance Security Fund, prohibits the transfer of funds from the Community College Health Insurance Security Fund by any constitutional officer or legislative body for any other purpose or program. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB1711 Detail]

Download: Illinois-2011-SB1711-Amended.html

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Sen. William R. Haine

Filed: 3/8/2011

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AMENDMENT TO SENATE BILL 1711
AMENDMENT NO. ______. Amend Senate Bill 1711 by replacing
everything after the enacting clause with the following:
"Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Section 6.10 as follows:
(5 ILCS 375/6.10)
Sec. 6.10. Contributions to the Community College Health
Insurance Security Fund.
(a) Beginning January 1, 1999, every active contributor of
the the State Universities Retirement System (established
under Article 15 of the Illinois Pension Code) who (1) is a
full-time employee of a community college district (other than
a community college district subject to Article VII of the
Public Community College Act) or an association of community
college boards and (2) is not an employee as defined in Section
3 of this Act shall make contributions toward the cost of

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community college annuitant and survivor health benefits at the
rate of 0.50% of salary.
These contributions shall be deducted by the employer and
paid to the State Universities Retirement 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 the contributions received from those employees under
Section 15-157 of the Illinois Pension Code. An employer may
agree to pick up or pay the contributions required under this
subsection on behalf of the employee; such contributions shall
be deemed to have been paid by the employee.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (a) into the
Community College Health Insurance Security Fund created in
Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities 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.
(b) Beginning January 1, 1999, every community college
district (other than a community college district subject to
Article VII of the Public Community College Act) or association
of community college boards that is an employer under the State

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Universities Retirement System shall contribute toward the
cost of the community college health benefits provided under
Section 6.9 of this Act an amount equal to 0.50% of the salary
paid to its full-time employees who participate in the State
Universities Retirement System and are not members as defined
in Section 3 of this Act.
These contributions shall be paid by the employer to the
State Universities Retirement 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 the contributions
received from those employers under Section 15-155 of the
Illinois Pension Code.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (b) into the
Community College Health Insurance Security Fund created in
Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities 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.
The Department of Healthcare and Family Services, or any
successor agency designated to procure healthcare contracts
pursuant to this Act, is authorized to establish funds,

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separate accounts provided by any bank or banks as defined by
the Illinois Banking Act, or separate accounts provided by any
savings and loan association or associations as defined by the
Illinois Savings and Loan Act of 1985 to be held by the
Director, outside the State treasury, for the purpose of
receiving the transfer of moneys from the Community College
Health Insurance Security Fund. The Department may promulgate
rules further defining the methodology for the transfers. Any
interest earned by moneys in the funds or accounts shall inure
to the Community College Health Insurance Security Fund. The
transferred moneys, and interest accrued thereon, shall be used
exclusively for transfers to administrative service
organizations or their financial institutions for payments of
claims to claimants and providers under the self-insurance
health plan. The transferred moneys, and interest accrued
thereon, shall not be used for any other purpose including, but
not limited to, reimbursement of administration fees due the
administrative service organization pursuant to its contract
or contracts with the Department.
(c) On or before November 15 of each year, the Board of
Trustees of the State Universities 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 for the next fiscal year. Beginning in fiscal year
2008, the amount certified shall be decreased or increased each

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year by the amount that the actual active employee
contributions either fell short of or exceeded the estimate
used by the Board in making the certification for the previous
fiscal year. The State Universities Retirement System shall
calculate the amount of actual active employee contributions in
fiscal years 1999 through 2005. Based upon this calculation,
the fiscal year 2008 certification shall include an amount
equal to the cumulative amount that the actual active employee
contributions either fell short of or exceeded the estimate
used by the Board in making the certification for those fiscal
years. 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 Section, the Board shall submit its estimate for
fiscal year 1999.
(d) Beginning in fiscal year 1999, 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 Community College Health Insurance
Security Fund 1/12 of the annual amount appropriated for that
fiscal year to the State Comptroller for deposit into the
Community College Health Insurance Security Fund under Section
1.4 of the State Pension Funds Continuing Appropriation Act.
(e) Except where otherwise specified in this Section, the
definitions that apply to Article 15 of the Illinois Pension
Code apply to this Section.

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(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)".