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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The State Employees Group Insurance Act of 1971 | |||||||||||||||||||
5 | is amended by changing Sections 3 and 10 as follows:
| |||||||||||||||||||
6 | (5 ILCS 375/3) (from Ch. 127, par. 523)
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7 | Sec. 3. Definitions. Unless the context otherwise | |||||||||||||||||||
8 | requires, the
following words and phrases as used in this Act | |||||||||||||||||||
9 | shall have the following
meanings. The Department may define | |||||||||||||||||||
10 | these and other words and phrases
separately for the purpose of | |||||||||||||||||||
11 | implementing specific programs providing benefits
under this | |||||||||||||||||||
12 | Act.
| |||||||||||||||||||
13 | (a) "Administrative service organization" means any | |||||||||||||||||||
14 | person, firm or
corporation experienced in the handling of | |||||||||||||||||||
15 | claims which is
fully qualified, financially sound and capable | |||||||||||||||||||
16 | of meeting the service
requirements of a contract of | |||||||||||||||||||
17 | administration executed with the Department.
| |||||||||||||||||||
18 | (b) "Annuitant" means (1) an employee who retires, or has | |||||||||||||||||||
19 | retired,
on or after January 1, 1966 on an immediate annuity | |||||||||||||||||||
20 | under the provisions
of Articles 2 (including an employee who, | |||||||||||||||||||
21 | in lieu of receiving an annuity under that Article, has elected | |||||||||||||||||||
22 | to receive an accelerated pension benefit payment under Section | |||||||||||||||||||
23 | 2-154.5 of that Article) , 14 (including an employee who has |
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| |||||||
1 | elected to receive an alternative retirement cancellation | ||||||
2 | payment under Section 14-108.5 of the Illinois Pension Code in | ||||||
3 | lieu of an annuity or who, in lieu of receiving an annuity | ||||||
4 | under that Article, has elected to receive an accelerated | ||||||
5 | pension benefit payment under Section 14-147.5 of that | ||||||
6 | Article ), 15 (including an employee who has retired under the | ||||||
7 | optional
retirement program established under Section 15-158.2 | ||||||
8 | or who, in lieu of receiving an annuity under that Article, has | ||||||
9 | elected to receive an accelerated pension benefit payment under | ||||||
10 | Section 15-185.5 of the Article ),
paragraphs (2), (3), or (5) | ||||||
11 | of Section 16-106 (including an employee who, in lieu of | ||||||
12 | receiving an annuity under that Article, has elected to receive | ||||||
13 | an accelerated pension benefit payment under Section 16-190.5 | ||||||
14 | of the Illinois Pension Code) , or
Article 18 (including an | ||||||
15 | employee who, in lieu of receiving an annuity under that | ||||||
16 | Article, has elected to receive an accelerated pension benefit | ||||||
17 | payment under Section 18-161.5 of that Article) of the Illinois | ||||||
18 | Pension Code; (2) any person who was receiving
group insurance | ||||||
19 | coverage under this Act as of March 31, 1978 by
reason of his | ||||||
20 | status as an annuitant, even though the annuity in relation
to | ||||||
21 | which such coverage was provided is a proportional annuity | ||||||
22 | based on less
than the minimum period of service required for a | ||||||
23 | retirement annuity in
the system involved; (3) any person not | ||||||
24 | otherwise covered by this Act
who has retired as a | ||||||
25 | participating member under Article 2 of the Illinois
Pension | ||||||
26 | Code but is ineligible for the retirement annuity under Section
|
| |||||||
| |||||||
1 | 2-119 of the Illinois Pension Code; (4) the spouse of any | ||||||
2 | person who
is receiving a retirement annuity under Article 18 | ||||||
3 | of the Illinois Pension
Code and who is covered under a group | ||||||
4 | health insurance program sponsored
by a governmental employer | ||||||
5 | other than the State of Illinois and who has
irrevocably | ||||||
6 | elected to waive his or her coverage under this Act and to have
| ||||||
7 | his or her spouse considered as the "annuitant" under this Act | ||||||
8 | and not as
a "dependent"; or (5) an employee who retires, or | ||||||
9 | has retired, from a
qualified position, as determined according | ||||||
10 | to rules promulgated by the
Director, under a qualified local | ||||||
11 | government, a qualified rehabilitation
facility, a qualified | ||||||
12 | domestic violence shelter or service, or a qualified child | ||||||
13 | advocacy center. (For definition
of "retired employee", see (p) | ||||||
14 | post).
| ||||||
15 | (b-5) (Blank).
| ||||||
16 | (b-6) (Blank).
| ||||||
17 | (b-7) (Blank).
| ||||||
18 | (c) "Carrier" means (1) an insurance company, a corporation | ||||||
19 | organized
under the Limited Health Service Organization Act or | ||||||
20 | the Voluntary Health
Services Plan Act, a partnership, or other | ||||||
21 | nongovernmental organization,
which is authorized to do group | ||||||
22 | life or group health insurance business in
Illinois, or (2) the | ||||||
23 | State of Illinois as a self-insurer.
| ||||||
24 | (d) "Compensation" means salary or wages payable on a | ||||||
25 | regular
payroll by the State Treasurer on a warrant of the | ||||||
26 | State Comptroller out
of any State, trust or federal fund, or |
| |||||||
| |||||||
1 | by the Governor of the State
through a disbursing officer of | ||||||
2 | the State out of a trust or out of
federal funds, or by any | ||||||
3 | Department out of State, trust, federal or
other funds held by | ||||||
4 | the State Treasurer or the Department, to any person
for | ||||||
5 | personal services currently performed, and ordinary or | ||||||
6 | accidental
disability benefits under Articles 2, 14, 15 | ||||||
7 | (including ordinary or accidental
disability benefits under | ||||||
8 | the optional retirement program established under
Section | ||||||
9 | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or | ||||||
10 | Article 18 of the Illinois Pension Code, for disability
| ||||||
11 | incurred after January 1, 1966, or benefits payable under the | ||||||
12 | Workers'
Compensation or Occupational Diseases Act or benefits | ||||||
13 | payable under a sick
pay plan established in accordance with | ||||||
14 | Section 36 of the State Finance Act.
"Compensation" also means | ||||||
15 | salary or wages paid to an employee of any
qualified local | ||||||
16 | government, qualified rehabilitation facility,
qualified | ||||||
17 | domestic violence shelter or service, or qualified child | ||||||
18 | advocacy center.
| ||||||
19 | (e) "Commission" means the State Employees Group Insurance | ||||||
20 | Advisory
Commission authorized by this Act. Commencing July 1, | ||||||
21 | 1984, "Commission"
as used in this Act means the Commission on | ||||||
22 | Government Forecasting and Accountability as
established by | ||||||
23 | the Legislative Commission Reorganization Act of 1984.
| ||||||
24 | (f) "Contributory", when referred to as contributory | ||||||
25 | coverage, shall
mean optional coverages or benefits elected by | ||||||
26 | the member toward the cost of
which such member makes |
| |||||||
| |||||||
1 | contribution, or which are funded in whole or in part
through | ||||||
2 | the acceptance of a reduction in earnings or the foregoing of | ||||||
3 | an
increase in earnings by an employee, as distinguished from | ||||||
4 | noncontributory
coverage or benefits which are paid entirely by | ||||||
5 | the State of Illinois
without reduction of the member's salary.
| ||||||
6 | (g) "Department" means any department, institution, board,
| ||||||
7 | commission, officer, court or any agency of the State | ||||||
8 | government
receiving appropriations and having power to | ||||||
9 | certify payrolls to the
Comptroller authorizing payments of | ||||||
10 | salary and wages against such
appropriations as are made by the | ||||||
11 | General Assembly from any State fund, or
against trust funds | ||||||
12 | held by the State Treasurer and includes boards of
trustees of | ||||||
13 | the retirement systems created by Articles 2, 14, 15, 16 and
18 | ||||||
14 | of the Illinois Pension Code. "Department" also includes the | ||||||
15 | Illinois
Comprehensive Health Insurance Board, the Board of | ||||||
16 | Examiners established under
the Illinois Public Accounting | ||||||
17 | Act, and the Illinois Finance Authority.
| ||||||
18 | (h) "Dependent", when the term is used in the context of | ||||||
19 | the health
and life plan, means a member's spouse and any child | ||||||
20 | (1) from
birth to age 26 including an adopted child, a child | ||||||
21 | who lives with the
member from the time of the filing of a | ||||||
22 | petition for adoption until entry
of an order of adoption, a | ||||||
23 | stepchild or adjudicated child, or a child who lives with the | ||||||
24 | member
if such member is a court appointed guardian of the | ||||||
25 | child or (2)
age 19 or over who has a mental or physical | ||||||
26 | disability from a cause originating prior to the age of 19 (age |
| |||||||
| |||||||
1 | 26 if enrolled as an adult child dependent). For
the health | ||||||
2 | plan only, the term "dependent" also includes (1) any person
| ||||||
3 | enrolled prior to the effective date of this Section who is | ||||||
4 | dependent upon
the member to the extent that the member may | ||||||
5 | claim such person as a
dependent for income tax deduction | ||||||
6 | purposes and (2) any person who
has received after June 30, | ||||||
7 | 2000 an organ transplant and who is financially
dependent upon | ||||||
8 | the member and eligible to be claimed as a dependent for income
| ||||||
9 | tax purposes. A member requesting to cover any dependent must | ||||||
10 | provide documentation as requested by the Department of Central | ||||||
11 | Management Services and file with the Department any and all | ||||||
12 | forms required by the Department.
| ||||||
13 | (i) "Director" means the Director of the Illinois | ||||||
14 | Department of Central
Management Services.
| ||||||
15 | (j) "Eligibility period" means the period of time a member | ||||||
16 | has to
elect enrollment in programs or to select benefits | ||||||
17 | without regard to
age, sex or health.
| ||||||
18 | (k) "Employee" means and includes each officer or employee | ||||||
19 | in the
service of a department who (1) receives his | ||||||
20 | compensation for
service rendered to the department on a | ||||||
21 | warrant issued pursuant to a payroll
certified by a department | ||||||
22 | or on a warrant or check issued and drawn by a
department upon | ||||||
23 | a trust, federal or other fund or on a warrant issued
pursuant | ||||||
24 | to a payroll certified by an elected or duly appointed officer
| ||||||
25 | of the State or who receives payment of the performance of | ||||||
26 | personal
services on a warrant issued pursuant to a payroll |
| |||||||
| |||||||
1 | certified by a
Department and drawn by the Comptroller upon the | ||||||
2 | State Treasurer against
appropriations made by the General | ||||||
3 | Assembly from any fund or against
trust funds held by the State | ||||||
4 | Treasurer, and (2) is employed full-time or
part-time in a | ||||||
5 | position normally requiring actual performance of duty
during | ||||||
6 | not less than 1/2 of a normal work period, as established by | ||||||
7 | the
Director in cooperation with each department, except that | ||||||
8 | persons elected
by popular vote will be considered employees | ||||||
9 | during the entire
term for which they are elected regardless of | ||||||
10 | hours devoted to the
service of the State, and (3) except that | ||||||
11 | "employee" does not include any
person who is not eligible by | ||||||
12 | reason of such person's employment to
participate in one of the | ||||||
13 | State retirement systems under Articles 2, 14, 15
(either the | ||||||
14 | regular Article 15 system or the optional retirement program
| ||||||
15 | established under Section 15-158.2) or 18, or under paragraph | ||||||
16 | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension | ||||||
17 | Code, but such term does include persons who are employed | ||||||
18 | during
the 6 month qualifying period under Article 14 of the | ||||||
19 | Illinois Pension
Code. Such term also includes any person who | ||||||
20 | (1) after January 1, 1966,
is receiving ordinary or accidental | ||||||
21 | disability benefits under Articles
2, 14, 15 (including | ||||||
22 | ordinary or accidental disability benefits under the
optional | ||||||
23 | retirement program established under Section 15-158.2), | ||||||
24 | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of | ||||||
25 | the
Illinois Pension Code, for disability incurred after | ||||||
26 | January 1, 1966, (2)
receives total permanent or total |
| |||||||
| |||||||
1 | temporary disability under the Workers'
Compensation Act or | ||||||
2 | Occupational Disease Act as a result of injuries
sustained or | ||||||
3 | illness contracted in the course of employment with the
State | ||||||
4 | of Illinois, or (3) is not otherwise covered under this Act and | ||||||
5 | has
retired as a participating member under Article 2 of the | ||||||
6 | Illinois Pension
Code but is ineligible for the retirement | ||||||
7 | annuity under Section 2-119 of
the Illinois Pension Code. | ||||||
8 | However, a person who satisfies the criteria
of the foregoing | ||||||
9 | definition of "employee" except that such person is made
| ||||||
10 | ineligible to participate in the State Universities Retirement | ||||||
11 | System by
clause (4) of subsection (a) of Section 15-107 of the | ||||||
12 | Illinois Pension
Code is also an "employee" for the purposes of | ||||||
13 | this Act. "Employee" also
includes any person receiving or | ||||||
14 | eligible for benefits under a sick pay
plan established in | ||||||
15 | accordance with Section 36 of the State Finance Act.
"Employee" | ||||||
16 | also includes (i) each officer or employee in the service of a
| ||||||
17 | qualified local government, including persons appointed as | ||||||
18 | trustees of
sanitary districts regardless of hours devoted to | ||||||
19 | the service of the
sanitary district, (ii) each employee in the | ||||||
20 | service of a qualified
rehabilitation facility, (iii) each | ||||||
21 | full-time employee in the service of a
qualified domestic | ||||||
22 | violence shelter or service, and (iv) each full-time employee | ||||||
23 | in the service of a qualified child advocacy center, as | ||||||
24 | determined according to
rules promulgated by the Director.
| ||||||
25 | (l) "Member" means an employee, annuitant, retired | ||||||
26 | employee or survivor. In the case of an annuitant or retired |
| |||||||
| |||||||
1 | employee who first becomes an annuitant or retired employee on | ||||||
2 | or after the effective date of this amendatory Act of the 97th | ||||||
3 | General Assembly, the individual must meet the minimum vesting | ||||||
4 | requirements of the applicable retirement system in order to be | ||||||
5 | eligible for group insurance benefits under that system. In the | ||||||
6 | case of a survivor who first becomes a survivor on or after the | ||||||
7 | effective date of this amendatory Act of the 97th General | ||||||
8 | Assembly, the deceased employee, annuitant, or retired | ||||||
9 | employee upon whom the annuity is based must have been eligible | ||||||
10 | to participate in the group insurance system under the | ||||||
11 | applicable retirement system in order for the survivor to be | ||||||
12 | eligible for group insurance benefits under that system.
| ||||||
13 | (m) "Optional coverages or benefits" means those coverages | ||||||
14 | or
benefits available to the member on his or her voluntary | ||||||
15 | election, and at
his or her own expense.
| ||||||
16 | (n) "Program" means the group life insurance, health | ||||||
17 | benefits and other
employee benefits designed and contracted | ||||||
18 | for by the Director under this Act.
| ||||||
19 | (o) "Health plan" means a health benefits
program offered
| ||||||
20 | by the State of Illinois for persons eligible for the plan.
| ||||||
21 | (p) "Retired employee" means any person who would be an | ||||||
22 | annuitant as
that term is defined herein but for the fact that | ||||||
23 | such person retired prior to
January 1, 1966. Such term also | ||||||
24 | includes any person formerly employed by
the University of | ||||||
25 | Illinois in the Cooperative Extension Service who would
be an | ||||||
26 | annuitant but for the fact that such person was made ineligible |
| |||||||
| |||||||
1 | to
participate in the State Universities Retirement System by | ||||||
2 | clause (4) of
subsection (a) of Section 15-107 of the Illinois
| ||||||
3 | Pension Code.
| ||||||
4 | (q) "Survivor" means a person receiving an annuity as a | ||||||
5 | survivor of an
employee or of an annuitant. "Survivor" also | ||||||
6 | includes: (1) the surviving
dependent of a person who satisfies | ||||||
7 | the definition of "employee" except that
such person is made | ||||||
8 | ineligible to participate in the State Universities
Retirement | ||||||
9 | System by clause (4) of subsection (a)
of Section 15-107 of the | ||||||
10 | Illinois Pension Code; (2) the surviving
dependent of any | ||||||
11 | person formerly employed by the University of Illinois in
the | ||||||
12 | Cooperative Extension Service who would be an annuitant except | ||||||
13 | for the
fact that such person was made ineligible to | ||||||
14 | participate in the State
Universities Retirement System by | ||||||
15 | clause (4) of subsection (a) of Section
15-107 of the Illinois | ||||||
16 | Pension Code; and (3) the surviving dependent of a person who | ||||||
17 | was an annuitant under this Act by virtue of receiving an | ||||||
18 | alternative retirement cancellation payment under Section | ||||||
19 | 14-108.5 of the Illinois Pension Code.
| ||||||
20 | (q-2) "SERS" means the State Employees' Retirement System | ||||||
21 | of Illinois, created under Article 14 of the Illinois Pension | ||||||
22 | Code.
| ||||||
23 | (q-3) "SURS" means the State Universities Retirement | ||||||
24 | System, created under Article 15 of the Illinois Pension Code.
| ||||||
25 | (q-4) "TRS" means the Teachers' Retirement System of the | ||||||
26 | State of Illinois, created under Article 16 of the Illinois |
| |||||||
| |||||||
1 | Pension Code.
| ||||||
2 | (q-5) (Blank).
| ||||||
3 | (q-6) (Blank).
| ||||||
4 | (q-7) (Blank).
| ||||||
5 | (r) "Medical services" means the services provided within | ||||||
6 | the scope
of their licenses by practitioners in all categories | ||||||
7 | licensed under the
Medical Practice Act of 1987.
| ||||||
8 | (s) "Unit of local government" means any county, | ||||||
9 | municipality,
township, school district (including a | ||||||
10 | combination of school districts under
the Intergovernmental | ||||||
11 | Cooperation Act), special district or other unit,
designated as | ||||||
12 | a
unit of local government by law, which exercises limited | ||||||
13 | governmental
powers or powers in respect to limited | ||||||
14 | governmental subjects, any
not-for-profit association with a | ||||||
15 | membership that primarily includes
townships and township | ||||||
16 | officials, that has duties that include provision of
research | ||||||
17 | service, dissemination of information, and other acts for the
| ||||||
18 | purpose of improving township government, and that is funded | ||||||
19 | wholly or
partly in accordance with Section 85-15 of the | ||||||
20 | Township Code; any
not-for-profit corporation or association, | ||||||
21 | with a membership consisting
primarily of municipalities, that | ||||||
22 | operates its own utility system, and
provides research, | ||||||
23 | training, dissemination of information, or other acts to
| ||||||
24 | promote cooperation between and among municipalities that | ||||||
25 | provide utility
services and for the advancement of the goals | ||||||
26 | and purposes of its
membership;
the Southern Illinois |
| |||||||
| |||||||
1 | Collegiate Common Market, which is a consortium of higher
| ||||||
2 | education institutions in Southern Illinois; the Illinois | ||||||
3 | Association of
Park Districts; and any hospital provider that | ||||||
4 | is owned by a county that has 100 or fewer hospital beds and | ||||||
5 | has not already joined the program. "Qualified
local | ||||||
6 | government" means a unit of local government approved by the | ||||||
7 | Director and
participating in a program created under | ||||||
8 | subsection (i) of Section 10 of this
Act.
| ||||||
9 | (t) "Qualified rehabilitation facility" means any | ||||||
10 | not-for-profit
organization that is accredited by the | ||||||
11 | Commission on Accreditation of
Rehabilitation Facilities or | ||||||
12 | certified by the Department
of Human Services (as successor to | ||||||
13 | the Department of Mental Health
and Developmental | ||||||
14 | Disabilities) to provide services to persons with
disabilities
| ||||||
15 | and which receives funds from the State of Illinois for | ||||||
16 | providing those
services, approved by the Director and | ||||||
17 | participating in a program created
under subsection (j) of | ||||||
18 | Section 10 of this Act.
| ||||||
19 | (u) "Qualified domestic violence shelter or service" means | ||||||
20 | any Illinois
domestic violence shelter or service and its | ||||||
21 | administrative offices funded
by the Department of Human | ||||||
22 | Services (as successor to the Illinois Department of
Public | ||||||
23 | Aid),
approved by the Director and
participating in a program | ||||||
24 | created under subsection (k) of Section 10.
| ||||||
25 | (v) "TRS benefit recipient" means a person who:
| ||||||
26 | (1) is not a "member" as defined in this Section; and
|
| |||||||
| |||||||
1 | (2) is receiving a monthly benefit or retirement | ||||||
2 | annuity
under Article 16 of the Illinois Pension Code; 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 of | ||||||
8 | creditable service under Article 16 of the Illinois Pension | ||||||
9 | Code or
was enrolled in the health insurance program | ||||||
10 | offered under that Article on
the effective date of this | ||||||
11 | amendatory Act of 1995, or (iv) is a recipient or
survivor | ||||||
12 | of a recipient of a disability benefit under Article 16 of | ||||||
13 | the
Illinois Pension Code.
| ||||||
14 | (w) "TRS dependent beneficiary" means a person who:
| ||||||
15 | (1) is not a "member" or "dependent" as defined in this | ||||||
16 | 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) natural, | ||||||
20 | step, adjudicated, or adopted child who is (i) under age | ||||||
21 | 26, (ii) was, on January 1, 1996, participating as a | ||||||
22 | dependent
beneficiary in the health insurance program | ||||||
23 | offered under Article 16 of the
Illinois Pension Code, or | ||||||
24 | (iii) age 19 or over who has a mental or physical | ||||||
25 | disability from a cause originating prior to the age of 19 | ||||||
26 | (age 26 if enrolled as an adult child).
|
| |||||||
| |||||||
1 | "TRS dependent beneficiary" does not include, as indicated | ||||||
2 | under paragraph (2) of this subsection (w), a dependent of the | ||||||
3 | survivor of a TRS benefit recipient who first becomes a | ||||||
4 | dependent of a survivor of a TRS benefit recipient on or after | ||||||
5 | the effective date of this amendatory Act of the 97th General | ||||||
6 | Assembly unless that dependent would have been eligible for | ||||||
7 | coverage as a dependent of the deceased TRS benefit recipient | ||||||
8 | upon whom the survivor benefit is based. | ||||||
9 | (x) "Military leave" refers to individuals in basic
| ||||||
10 | training for reserves, special/advanced training, annual | ||||||
11 | training, emergency
call up, activation by the President of the | ||||||
12 | United States, or any other training or duty in service to the | ||||||
13 | United States Armed Forces.
| ||||||
14 | (y) (Blank).
| ||||||
15 | (z) "Community college benefit recipient" means a person | ||||||
16 | who:
| ||||||
17 | (1) is not a "member" as defined in this Section; and
| ||||||
18 | (2) is receiving a monthly survivor's annuity or | ||||||
19 | retirement annuity
under Article 15 of the Illinois Pension | ||||||
20 | Code; and
| ||||||
21 | (3) either (i) was a full-time employee of a community | ||||||
22 | college district or
an association of community college | ||||||
23 | boards created under the Public Community
College Act | ||||||
24 | (other than an employee whose last employer under Article | ||||||
25 | 15 of the
Illinois Pension Code was a community college | ||||||
26 | district subject to Article VII
of the Public Community |
| |||||||
| |||||||
1 | College Act) and was eligible to participate in a group
| ||||||
2 | health benefit plan as an employee during the time of | ||||||
3 | employment with a
community college district (other than a | ||||||
4 | community college district subject to
Article VII of the | ||||||
5 | Public Community College Act) or an association of | ||||||
6 | community
college boards, or (ii) is the survivor of a | ||||||
7 | person described in item (i).
| ||||||
8 | (aa) "Community college dependent beneficiary" means a | ||||||
9 | person who:
| ||||||
10 | (1) is not a "member" or "dependent" as defined in this | ||||||
11 | Section; and
| ||||||
12 | (2) is a community college benefit recipient's: (A) | ||||||
13 | spouse, (B) dependent
parent who is receiving at least half | ||||||
14 | of his or her support from the community
college benefit | ||||||
15 | recipient, or (C) natural, step, adjudicated, or adopted | ||||||
16 | child who is (i)
under age 26, or (ii)
age 19 or over and | ||||||
17 | has a mental or physical disability from a cause | ||||||
18 | originating prior to the age of 19 (age 26 if enrolled as | ||||||
19 | an adult child).
| ||||||
20 | "Community college dependent beneficiary" does not | ||||||
21 | include, as indicated under paragraph (2) of this subsection | ||||||
22 | (aa), a dependent of the survivor of a community college | ||||||
23 | benefit recipient who first becomes a dependent of a survivor | ||||||
24 | of a community college benefit recipient on or after the | ||||||
25 | effective date of this amendatory Act of the 97th General | ||||||
26 | Assembly unless that dependent would have been eligible for |
| |||||||
| |||||||
1 | coverage as a dependent of the deceased community college | ||||||
2 | benefit recipient upon whom the survivor annuity is based. | ||||||
3 | (bb) "Qualified child advocacy center" means any Illinois | ||||||
4 | child advocacy center and its administrative offices funded by | ||||||
5 | the Department of Children and Family Services, as defined by | ||||||
6 | the Children's Advocacy Center Act (55 ILCS 80/), approved by | ||||||
7 | the Director and participating in a program created under | ||||||
8 | subsection (n) of Section 10.
| ||||||
9 | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
| ||||||
10 | (5 ILCS 375/10) (from Ch. 127, par. 530)
| ||||||
11 | Sec. 10. Contributions by the State and members.
| ||||||
12 | (a) The State shall pay the cost of basic non-contributory | ||||||
13 | group life
insurance and, subject to member paid contributions | ||||||
14 | set by the Department or
required by this Section and except as | ||||||
15 | provided in this Section, the basic program of group health | ||||||
16 | benefits on each
eligible member, except a member, not | ||||||
17 | otherwise
covered by this Act, who has retired as a | ||||||
18 | participating member under Article 2
of the Illinois Pension | ||||||
19 | Code but is ineligible for the retirement annuity under
Section | ||||||
20 | 2-119 of the Illinois Pension Code, and part of each eligible | ||||||
21 | member's
and retired member's premiums for health insurance | ||||||
22 | coverage for enrolled
dependents as provided by Section 9. The | ||||||
23 | State shall pay the cost of the basic
program of group health | ||||||
24 | benefits only after benefits are reduced by the amount
of | ||||||
25 | benefits covered by Medicare for all members and dependents
who |
| |||||||
| |||||||
1 | are eligible for benefits under Social Security or
the Railroad | ||||||
2 | Retirement system or who had sufficient Medicare-covered
| ||||||
3 | government employment, except that such reduction in benefits | ||||||
4 | shall apply only
to those members and dependents who (1) first | ||||||
5 | become eligible
for such Medicare coverage on or after July 1, | ||||||
6 | 1992; or (2) are
Medicare-eligible members or dependents of a | ||||||
7 | local government unit which began
participation in the program | ||||||
8 | on or after July 1, 1992; or (3) remain eligible
for, but no | ||||||
9 | longer receive Medicare coverage which they had been receiving | ||||||
10 | on
or after July 1, 1992. The Department may determine the | ||||||
11 | aggregate level of the
State's contribution on the basis of | ||||||
12 | actual cost of medical services adjusted
for age, sex or | ||||||
13 | geographic or other demographic characteristics which affect
| ||||||
14 | the costs of such programs.
| ||||||
15 | The cost of participation in the basic program of group | ||||||
16 | health benefits
for the dependent or survivor of a living or | ||||||
17 | deceased retired employee who was
formerly employed by the | ||||||
18 | University of Illinois in the Cooperative Extension
Service and | ||||||
19 | would be an annuitant but for the fact that he or she was made
| ||||||
20 | ineligible to participate in the State Universities Retirement | ||||||
21 | System by clause
(4) of subsection (a) of Section 15-107 of the | ||||||
22 | Illinois Pension Code shall not
be greater than the cost of | ||||||
23 | participation that would otherwise apply to that
dependent or | ||||||
24 | survivor if he or she were the dependent or survivor of an
| ||||||
25 | annuitant under the State Universities Retirement System.
| ||||||
26 | (a-1) (Blank).
|
| |||||||
| |||||||
1 | (a-2) (Blank).
| ||||||
2 | (a-3) (Blank).
| ||||||
3 | (a-4) (Blank).
| ||||||
4 | (a-5) (Blank).
| ||||||
5 | (a-6) (Blank).
| ||||||
6 | (a-7) (Blank).
| ||||||
7 | (a-8) Any annuitant, survivor, or retired employee may | ||||||
8 | waive or terminate coverage in
the program of group health | ||||||
9 | benefits. Any such annuitant, survivor, or retired employee
who | ||||||
10 | has waived or terminated coverage may enroll or re-enroll in | ||||||
11 | the
program of group health benefits only during the annual | ||||||
12 | benefit choice period,
as determined by the Director; except | ||||||
13 | that in the event of termination of
coverage due to nonpayment | ||||||
14 | of premiums, the annuitant, survivor, or retired employee
may | ||||||
15 | not re-enroll in the program.
| ||||||
16 | (a-8.5) Beginning on the effective date of this amendatory | ||||||
17 | Act of the 97th General Assembly, the Director of Central | ||||||
18 | Management Services shall, on an annual basis, determine the | ||||||
19 | amount that the State shall contribute toward the basic program | ||||||
20 | of group health benefits on behalf of annuitants (including | ||||||
21 | individuals who (i) participated in the General Assembly | ||||||
22 | Retirement System, the State Employees' Retirement System of | ||||||
23 | Illinois, the State Universities Retirement System, the | ||||||
24 | Teachers' Retirement System of the State of Illinois, or the | ||||||
25 | Judges Retirement System of Illinois and (ii) qualify as | ||||||
26 | annuitants under subsection (b) of Section 3 of this Act), |
| |||||||
| |||||||
1 | survivors (including individuals who (i) receive an annuity as | ||||||
2 | a survivor of an individual who participated in the General | ||||||
3 | Assembly Retirement System, the State Employees' Retirement | ||||||
4 | System of Illinois, the State Universities Retirement System, | ||||||
5 | the Teachers' Retirement System of the State of Illinois, or | ||||||
6 | the Judges Retirement System of Illinois and (ii) qualify as | ||||||
7 | survivors under subsection (q) of Section 3 of this Act), and | ||||||
8 | retired employees (as defined in subsection (p) of Section 3 of | ||||||
9 | this Act). The remainder of the cost of coverage for each | ||||||
10 | annuitant, survivor, or retired employee, as determined by the | ||||||
11 | Director of Central Management Services, shall be the | ||||||
12 | responsibility of that annuitant, survivor, or retired | ||||||
13 | employee. | ||||||
14 | Contributions required of annuitants, survivors, and | ||||||
15 | retired employees shall be the same for all retirement systems | ||||||
16 | and shall also be based on whether an individual has made an | ||||||
17 | election under Section 15-135.1 of the Illinois Pension Code. | ||||||
18 | Contributions may be based on annuitants', survivors', or | ||||||
19 | retired employees' Medicare eligibility, but may not be based | ||||||
20 | on Social Security eligibility. | ||||||
21 | (a-9) No later than May 1 of each calendar year, the | ||||||
22 | Director
of Central Management Services shall certify in | ||||||
23 | writing to the Executive
Secretary of the State Employees' | ||||||
24 | Retirement System of Illinois the amounts
of the Medicare | ||||||
25 | supplement health care premiums and the amounts of the
health | ||||||
26 | care premiums for all other retirees who are not Medicare |
| |||||||
| |||||||
1 | eligible.
| ||||||
2 | A separate calculation of the premiums based upon the | ||||||
3 | actual cost of each
health care plan shall be so certified.
| ||||||
4 | The Director of Central Management Services shall provide | ||||||
5 | to the
Executive Secretary of the State Employees' Retirement | ||||||
6 | System of
Illinois such information, statistics, and other data | ||||||
7 | as he or she
may require to review the premium amounts | ||||||
8 | certified by the Director
of Central Management Services.
| ||||||
9 | The Department of Central Management Services, or any | ||||||
10 | successor agency designated to procure healthcare contracts | ||||||
11 | pursuant to this Act, is authorized to establish funds, | ||||||
12 | separate accounts provided by any bank or banks as defined by | ||||||
13 | the Illinois Banking Act, or separate accounts provided by any | ||||||
14 | savings and loan association or associations as defined by the | ||||||
15 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
16 | Director, outside the State treasury, for the purpose of | ||||||
17 | receiving the transfer of moneys from the Local Government | ||||||
18 | Health Insurance Reserve Fund. The Department may promulgate | ||||||
19 | rules further defining the methodology for the transfers. Any | ||||||
20 | interest earned by moneys in the funds or accounts shall inure | ||||||
21 | to the Local Government Health Insurance Reserve Fund. The | ||||||
22 | transferred moneys, and interest accrued thereon, shall be used | ||||||
23 | exclusively for transfers to administrative service | ||||||
24 | organizations or their financial institutions for payments of | ||||||
25 | claims to claimants and providers under the self-insurance | ||||||
26 | health plan. The transferred moneys, and interest accrued |
| |||||||
| |||||||
1 | thereon, shall not be used for any other purpose including, but | ||||||
2 | not limited to, reimbursement of administration fees due the | ||||||
3 | administrative service organization pursuant to its contract | ||||||
4 | or contracts with the Department.
| ||||||
5 | (a-10) To the extent that participation, benefits, or | ||||||
6 | premiums under this Act are based on a person's service credit | ||||||
7 | under an Article of the Illinois Pension Code, service credit | ||||||
8 | terminated in exchange for an accelerated pension benefit | ||||||
9 | payment under Section 2-154.5, 14-147.5, 15-185.5, 16-190.5, | ||||||
10 | or 18-161.5 of that Code shall be included in determining a | ||||||
11 | person's service credit for the purposes of this Act. | ||||||
12 | (b) State employees who become eligible for this program on | ||||||
13 | or after January
1, 1980 in positions normally requiring actual | ||||||
14 | performance of duty not less
than 1/2 of a normal work period | ||||||
15 | but not equal to that of a normal work period,
shall be given | ||||||
16 | the option of participating in the available program. If the
| ||||||
17 | employee elects coverage, the State shall contribute on behalf | ||||||
18 | of such employee
to the cost of the employee's benefit and any | ||||||
19 | applicable dependent supplement,
that sum which bears the same | ||||||
20 | percentage as that percentage of time the
employee regularly | ||||||
21 | works when compared to normal work period.
| ||||||
22 | (c) The basic non-contributory coverage from the basic | ||||||
23 | program of
group health benefits shall be continued for each | ||||||
24 | employee not in pay status or
on active service by reason of | ||||||
25 | (1) leave of absence due to illness or injury,
(2) authorized | ||||||
26 | educational leave of absence or sabbatical leave, or (3)
|
| |||||||
| |||||||
1 | military leave. This coverage shall continue until
expiration | ||||||
2 | of authorized leave and return to active service, but not to | ||||||
3 | exceed
24 months for leaves under item (1) or (2). This | ||||||
4 | 24-month limitation and the
requirement of returning to active | ||||||
5 | service shall not apply to persons receiving
ordinary or | ||||||
6 | accidental disability benefits or retirement benefits through | ||||||
7 | the
appropriate State retirement system or benefits under the | ||||||
8 | Workers' Compensation
or Occupational Disease Act.
| ||||||
9 | (d) The basic group life insurance coverage shall continue, | ||||||
10 | with
full State contribution, where such person is (1) absent | ||||||
11 | from active
service by reason of disability arising from any | ||||||
12 | cause other than
self-inflicted, (2) on authorized educational | ||||||
13 | leave of absence or
sabbatical leave, or (3) on military leave.
| ||||||
14 | (e) Where the person is in non-pay status for a period in | ||||||
15 | excess of
30 days or on leave of absence, other than by reason | ||||||
16 | of disability,
educational or sabbatical leave, or military | ||||||
17 | leave, such
person may continue coverage only by making | ||||||
18 | personal
payment equal to the amount normally contributed by | ||||||
19 | the State on such person's
behalf. Such payments and coverage | ||||||
20 | may be continued: (1) until such time as
the person returns to | ||||||
21 | a status eligible for coverage at State expense, but not
to | ||||||
22 | exceed 24 months or (2) until such person's employment or | ||||||
23 | annuitant status
with the State is terminated (exclusive of any | ||||||
24 | additional service imposed pursuant to law).
| ||||||
25 | (f) The Department shall establish by rule the extent to | ||||||
26 | which other
employee benefits will continue for persons in |
| |||||||
| |||||||
1 | non-pay status or who are
not in active service.
| ||||||
2 | (g) The State shall not pay the cost of the basic | ||||||
3 | non-contributory
group life insurance, program of health | ||||||
4 | benefits and other employee benefits
for members who are | ||||||
5 | survivors as defined by paragraphs (1) and (2) of
subsection | ||||||
6 | (q) of Section 3 of this Act. The costs of benefits for these
| ||||||
7 | survivors shall be paid by the survivors or by the University | ||||||
8 | of Illinois
Cooperative Extension Service, or any combination | ||||||
9 | thereof.
However, the State shall pay the amount of the | ||||||
10 | reduction in the cost of
participation, if any, resulting from | ||||||
11 | the amendment to subsection (a) made
by this amendatory Act of | ||||||
12 | the 91st General Assembly.
| ||||||
13 | (h) Those persons occupying positions with any department | ||||||
14 | as a result
of emergency appointments pursuant to Section 8b.8 | ||||||
15 | of the Personnel Code
who are not considered employees under | ||||||
16 | this Act shall be given the option
of participating in the | ||||||
17 | programs of group life insurance, health benefits and
other | ||||||
18 | employee benefits. Such persons electing coverage may | ||||||
19 | participate only
by making payment equal to the amount normally | ||||||
20 | contributed by the State for
similarly situated employees. Such | ||||||
21 | amounts shall be determined by the
Director. Such payments and | ||||||
22 | coverage may be continued until such time as the
person becomes | ||||||
23 | an employee pursuant to this Act or such person's appointment | ||||||
24 | is
terminated.
| ||||||
25 | (i) Any unit of local government within the State of | ||||||
26 | Illinois
may apply to the Director to have its employees, |
| |||||||
| |||||||
1 | annuitants, and their
dependents provided group health | ||||||
2 | coverage under this Act on a non-insured
basis. To participate, | ||||||
3 | a unit of local government must agree to enroll
all of its | ||||||
4 | employees, who may select coverage under either the State group
| ||||||
5 | health benefits plan or a health maintenance organization that | ||||||
6 | has
contracted with the State to be available as a health care | ||||||
7 | provider for
employees as defined in this Act. A unit of local | ||||||
8 | government must remit the
entire cost of providing coverage | ||||||
9 | under the State group health benefits plan
or, for coverage | ||||||
10 | under a health maintenance organization, an amount determined
| ||||||
11 | by the Director based on an analysis of the sex, age, | ||||||
12 | geographic location, or
other relevant demographic variables | ||||||
13 | for its employees, except that the unit of
local government | ||||||
14 | shall not be required to enroll those of its employees who are
| ||||||
15 | covered spouses or dependents under this plan or another group | ||||||
16 | policy or plan
providing health benefits as long as (1) an | ||||||
17 | appropriate official from the unit
of local government attests | ||||||
18 | that each employee not enrolled is a covered spouse
or | ||||||
19 | dependent under this plan or another group policy or plan, and | ||||||
20 | (2) at least
50% of the employees are enrolled and the unit of | ||||||
21 | local government remits
the entire cost of providing coverage | ||||||
22 | to those employees, except that a
participating school district | ||||||
23 | must have enrolled at least 50% of its full-time
employees who | ||||||
24 | have not waived coverage under the district's group health
plan | ||||||
25 | by participating in a component of the district's cafeteria | ||||||
26 | plan. A
participating school district is not required to enroll |
| |||||||
| |||||||
1 | a full-time employee
who has waived coverage under the | ||||||
2 | district's health plan, provided that an
appropriate official | ||||||
3 | from the participating school district attests that the
| ||||||
4 | full-time employee has waived coverage by participating in a | ||||||
5 | component of the
district's cafeteria plan. For the purposes of | ||||||
6 | this subsection, "participating
school district" includes a | ||||||
7 | unit of local government whose primary purpose is
education as | ||||||
8 | defined by the Department's rules.
| ||||||
9 | Employees of a participating unit of local government who | ||||||
10 | are not enrolled
due to coverage under another group health | ||||||
11 | policy or plan may enroll in
the event of a qualifying change | ||||||
12 | in status, special enrollment, special
circumstance as defined | ||||||
13 | by the Director, or during the annual Benefit Choice
Period. A | ||||||
14 | participating unit of local government may also elect to cover | ||||||
15 | its
annuitants. Dependent coverage shall be offered on an | ||||||
16 | optional basis, with the
costs paid by the unit of local | ||||||
17 | government, its employees, or some combination
of the two as | ||||||
18 | determined by the unit of local government. The unit of local
| ||||||
19 | government shall be responsible for timely collection and | ||||||
20 | transmission of
dependent premiums.
| ||||||
21 | The Director shall annually determine monthly rates of | ||||||
22 | payment, subject
to the following constraints:
| ||||||
23 | (1) In the first year of coverage, the rates shall be | ||||||
24 | equal to the
amount normally charged to State employees for | ||||||
25 | elected optional coverages
or for enrolled dependents | ||||||
26 | coverages or other contributory coverages, or
contributed |
| |||||||
| |||||||
1 | by the State for basic insurance coverages on behalf of its
| ||||||
2 | employees, adjusted for differences between State | ||||||
3 | employees and employees
of the local government in age, | ||||||
4 | sex, geographic location or other relevant
demographic | ||||||
5 | variables, plus an amount sufficient to pay for the | ||||||
6 | additional
administrative costs of providing coverage to | ||||||
7 | employees of the unit of
local government and their | ||||||
8 | dependents.
| ||||||
9 | (2) In subsequent years, a further adjustment shall be | ||||||
10 | made to reflect
the actual prior years' claims experience | ||||||
11 | of the employees of the unit of
local government.
| ||||||
12 | In the case of coverage of local government employees under | ||||||
13 | a health
maintenance organization, the Director shall annually | ||||||
14 | determine for each
participating unit of local government the | ||||||
15 | maximum monthly amount the unit
may contribute toward that | ||||||
16 | coverage, based on an analysis of (i) the age,
sex, geographic | ||||||
17 | location, and other relevant demographic variables of the
| ||||||
18 | unit's employees and (ii) the cost to cover those employees | ||||||
19 | under the State
group health benefits plan. The Director may | ||||||
20 | similarly determine the
maximum monthly amount each unit of | ||||||
21 | local government may contribute toward
coverage of its | ||||||
22 | employees' dependents under a health maintenance organization.
| ||||||
23 | Monthly payments by the unit of local government or its | ||||||
24 | employees for
group health benefits plan or health maintenance | ||||||
25 | organization coverage shall
be deposited in the Local | ||||||
26 | Government Health Insurance Reserve Fund.
|
| |||||||
| |||||||
1 | The Local Government Health Insurance Reserve Fund is | ||||||
2 | hereby created as a nonappropriated trust fund to be held | ||||||
3 | outside the State Treasury, with the State Treasurer as | ||||||
4 | custodian. The Local Government Health Insurance Reserve Fund | ||||||
5 | shall be a continuing
fund not subject to fiscal year | ||||||
6 | limitations. The Local Government Health Insurance Reserve | ||||||
7 | Fund is not subject to administrative charges or charge-backs, | ||||||
8 | including but not limited to those authorized under Section 8h | ||||||
9 | of the State Finance Act. All revenues arising from the | ||||||
10 | administration of the health benefits program established | ||||||
11 | under this Section shall be deposited into the Local Government | ||||||
12 | Health Insurance Reserve Fund. Any interest earned on moneys in | ||||||
13 | the Local Government Health Insurance Reserve Fund shall be | ||||||
14 | deposited into the Fund. All expenditures from this Fund
shall | ||||||
15 | be used for payments for health care benefits for local | ||||||
16 | government and rehabilitation facility
employees, annuitants, | ||||||
17 | and dependents, and to reimburse the Department or
its | ||||||
18 | administrative service organization for all expenses incurred | ||||||
19 | in the
administration of benefits. No other State funds may be | ||||||
20 | used for these
purposes.
| ||||||
21 | A local government employer's participation or desire to | ||||||
22 | participate
in a program created under this subsection shall | ||||||
23 | not limit that employer's
duty to bargain with the | ||||||
24 | representative of any collective bargaining unit
of its | ||||||
25 | employees.
| ||||||
26 | (j) Any rehabilitation facility within the State of |
| |||||||
| |||||||
1 | Illinois may apply
to the Director to have its employees, | ||||||
2 | annuitants, and their eligible
dependents provided group | ||||||
3 | health coverage under this Act on a non-insured
basis. To | ||||||
4 | participate, a rehabilitation facility must agree to enroll all
| ||||||
5 | of its employees and remit the entire cost of providing such | ||||||
6 | coverage for
its employees, except that the rehabilitation | ||||||
7 | facility shall not be
required to enroll those of its employees | ||||||
8 | who are covered spouses or
dependents under this plan or | ||||||
9 | another group policy or plan providing health
benefits as long | ||||||
10 | as (1) an appropriate official from the rehabilitation
facility | ||||||
11 | attests that each employee not enrolled is a covered spouse or
| ||||||
12 | dependent under this plan or another group policy or plan, and | ||||||
13 | (2) at least
50% of the employees are enrolled and the | ||||||
14 | rehabilitation facility remits
the entire cost of providing | ||||||
15 | coverage to those employees. Employees of a
participating | ||||||
16 | rehabilitation facility who are not enrolled due to coverage
| ||||||
17 | under another group health policy or plan may enroll
in the | ||||||
18 | event of a qualifying change in status, special enrollment, | ||||||
19 | special
circumstance as defined by the Director, or during the | ||||||
20 | annual Benefit Choice
Period. A participating rehabilitation | ||||||
21 | facility may also elect
to cover its annuitants. Dependent | ||||||
22 | coverage shall be offered on an optional
basis, with the costs | ||||||
23 | paid by the rehabilitation facility, its employees, or
some | ||||||
24 | combination of the 2 as determined by the rehabilitation | ||||||
25 | facility. The
rehabilitation facility shall be responsible for | ||||||
26 | timely collection and
transmission of dependent premiums.
|
| |||||||
| |||||||
1 | The Director shall annually determine quarterly rates of | ||||||
2 | payment, subject
to the following constraints:
| ||||||
3 | (1) In the first year of coverage, the rates shall be | ||||||
4 | equal to the amount
normally charged to State employees for | ||||||
5 | elected optional coverages or for
enrolled dependents | ||||||
6 | coverages or other contributory coverages on behalf of
its | ||||||
7 | employees, adjusted for differences between State | ||||||
8 | employees and
employees of the rehabilitation facility in | ||||||
9 | age, sex, geographic location
or other relevant | ||||||
10 | demographic variables, plus an amount sufficient to pay
for | ||||||
11 | the additional administrative costs of providing coverage | ||||||
12 | to employees
of the rehabilitation facility and their | ||||||
13 | dependents.
| ||||||
14 | (2) In subsequent years, a further adjustment shall be | ||||||
15 | made to reflect
the actual prior years' claims experience | ||||||
16 | of the employees of the
rehabilitation facility.
| ||||||
17 | Monthly payments by the rehabilitation facility or its | ||||||
18 | employees for
group health benefits shall be deposited in the | ||||||
19 | Local Government Health
Insurance Reserve Fund.
| ||||||
20 | (k) Any domestic violence shelter or service within the | ||||||
21 | State of Illinois
may apply to the Director to have its | ||||||
22 | employees, annuitants, and their
dependents provided group | ||||||
23 | health coverage under this Act on a non-insured
basis. To | ||||||
24 | participate, a domestic violence shelter or service must agree | ||||||
25 | to
enroll all of its employees and pay the entire cost of | ||||||
26 | providing such coverage
for its employees. The domestic |
| |||||||
| |||||||
1 | violence shelter shall not be required to enroll those of its | ||||||
2 | employees who are covered spouses or dependents under this plan | ||||||
3 | or another group policy or plan providing health benefits as | ||||||
4 | long as (1) an appropriate official from the domestic violence | ||||||
5 | shelter attests that each employee not enrolled is a covered | ||||||
6 | spouse or dependent under this plan or another group policy or | ||||||
7 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
8 | domestic violence shelter remits the entire cost of providing | ||||||
9 | coverage to those employees. Employees of a participating | ||||||
10 | domestic violence shelter who are not enrolled due to coverage | ||||||
11 | under another group health policy or plan may enroll in the | ||||||
12 | event of a qualifying change in status, special enrollment, or | ||||||
13 | special circumstance as defined by the Director or during the | ||||||
14 | annual Benefit Choice Period. A participating domestic | ||||||
15 | violence shelter may also elect
to cover its annuitants. | ||||||
16 | Dependent coverage shall be offered on an optional
basis, with
| ||||||
17 | employees, or some combination of the 2 as determined by the | ||||||
18 | domestic violence
shelter or service. The domestic violence | ||||||
19 | shelter or service shall be
responsible for timely collection | ||||||
20 | and transmission of dependent premiums.
| ||||||
21 | The Director shall annually determine rates of payment,
| ||||||
22 | subject to the following constraints:
| ||||||
23 | (1) In the first year of coverage, the rates shall be | ||||||
24 | equal to the
amount normally charged to State employees for | ||||||
25 | elected optional coverages
or for enrolled dependents | ||||||
26 | coverages or other contributory coverages on
behalf of its |
| |||||||
| |||||||
1 | employees, adjusted for differences between State | ||||||
2 | employees and
employees of the domestic violence shelter or | ||||||
3 | service in age, sex, geographic
location or other relevant | ||||||
4 | demographic variables, plus an amount sufficient
to pay for | ||||||
5 | the additional administrative costs of providing coverage | ||||||
6 | to
employees of the domestic violence shelter or service | ||||||
7 | and their dependents.
| ||||||
8 | (2) In subsequent years, a further adjustment shall be | ||||||
9 | made to reflect
the actual prior years' claims experience | ||||||
10 | of the employees of the domestic
violence shelter or | ||||||
11 | service.
| ||||||
12 | Monthly payments by the domestic violence shelter or | ||||||
13 | service or its employees
for group health insurance shall be | ||||||
14 | deposited in the Local Government Health
Insurance Reserve | ||||||
15 | Fund.
| ||||||
16 | (l) A public community college or entity organized pursuant | ||||||
17 | to the
Public Community College Act may apply to the Director | ||||||
18 | initially to have
only annuitants not covered prior to July 1, | ||||||
19 | 1992 by the district's health
plan provided health coverage | ||||||
20 | under this Act on a non-insured basis. The
community college | ||||||
21 | must execute a 2-year contract to participate in the
Local | ||||||
22 | Government Health Plan.
Any annuitant may enroll in the event | ||||||
23 | of a qualifying change in status, special
enrollment, special | ||||||
24 | circumstance as defined by the Director, or during the
annual | ||||||
25 | Benefit Choice Period.
| ||||||
26 | The Director shall annually determine monthly rates of |
| |||||||
| |||||||
1 | payment subject to
the following constraints: for those | ||||||
2 | community colleges with annuitants
only enrolled, first year | ||||||
3 | rates shall be equal to the average cost to cover
claims for a | ||||||
4 | State member adjusted for demographics, Medicare
| ||||||
5 | participation, and other factors; and in the second year, a | ||||||
6 | further adjustment
of rates shall be made to reflect the actual | ||||||
7 | first year's claims experience
of the covered annuitants.
| ||||||
8 | (l-5) The provisions of subsection (l) become inoperative | ||||||
9 | on July 1, 1999.
| ||||||
10 | (m) The Director shall adopt any rules deemed necessary for
| ||||||
11 | implementation of this amendatory Act of 1989 (Public Act | ||||||
12 | 86-978).
| ||||||
13 | (n) Any child advocacy center within the State of Illinois | ||||||
14 | may apply to the Director to have its employees, annuitants, | ||||||
15 | and their dependents provided group health coverage under this | ||||||
16 | Act on a non-insured basis. To participate, a child advocacy | ||||||
17 | center must agree to enroll all of its employees and pay the | ||||||
18 | entire cost of providing coverage for its employees. The child
| ||||||
19 | advocacy center shall not be required to enroll those of its
| ||||||
20 | employees who are covered spouses or dependents under this plan
| ||||||
21 | or another group policy or plan providing health benefits as
| ||||||
22 | long as (1) an appropriate official from the child advocacy
| ||||||
23 | center attests that each employee not enrolled is a covered
| ||||||
24 | spouse or dependent under this plan or another group policy or
| ||||||
25 | plan and (2) at least 50% of the employees are enrolled and the | ||||||
26 | child advocacy center remits the entire cost of providing |
| |||||||
| |||||||
1 | coverage to those employees. Employees of a participating child | ||||||
2 | advocacy center who are not enrolled due to coverage under | ||||||
3 | another group health policy or plan may enroll in the event of | ||||||
4 | a qualifying change in status, special enrollment, or special | ||||||
5 | circumstance as defined by the Director or during the annual | ||||||
6 | Benefit Choice Period. A participating child advocacy center | ||||||
7 | may also elect to cover its annuitants. Dependent coverage | ||||||
8 | shall be offered on an optional basis, with the costs paid by | ||||||
9 | the child advocacy center, its employees, or some combination | ||||||
10 | of the 2 as determined by the child advocacy center. The child | ||||||
11 | advocacy center shall be responsible for timely collection and | ||||||
12 | transmission of dependent premiums. | ||||||
13 | The Director shall annually determine rates of payment, | ||||||
14 | subject to the following constraints: | ||||||
15 | (1) In the first year of coverage, the rates shall be | ||||||
16 | equal to the amount normally charged to State employees for | ||||||
17 | elected optional coverages or for enrolled dependents | ||||||
18 | coverages or other contributory coverages on behalf of its | ||||||
19 | employees, adjusted for differences between State | ||||||
20 | employees and employees of the child advocacy center in | ||||||
21 | age, sex, geographic location, or other relevant | ||||||
22 | demographic variables, plus an amount sufficient to pay for | ||||||
23 | the additional administrative costs of providing coverage | ||||||
24 | to employees of the child advocacy center and their | ||||||
25 | dependents. | ||||||
26 | (2) In subsequent years, a further adjustment shall be |
| |||||||
| |||||||
1 | made to reflect the actual prior years' claims experience | ||||||
2 | of the employees of the child advocacy center. | ||||||
3 | Monthly payments by the child advocacy center or its | ||||||
4 | employees for group health insurance shall be deposited into | ||||||
5 | the Local Government Health Insurance Reserve Fund. | ||||||
6 | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
| ||||||
7 | Section 10. The Illinois Pension Code is amended by adding | ||||||
8 | Sections 2-154.5, 2-154.6, 14-147.5, 14-147.6, 15-185.5, | ||||||
9 | 15-185.6, 16-190.5, 16-190.6, 18-161.5, and 18-161.6 and | ||||||
10 | amending Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169 | ||||||
11 | as follows:
| ||||||
12 | (40 ILCS 5/2-154.5 new) | ||||||
13 | Sec. 2-154.5. Accelerated pension benefit payment. | ||||||
14 | (a) To be eligible for an accelerated pension benefit | ||||||
15 | payment provided in this Section, a person must: | ||||||
16 | (1) have terminated service; | ||||||
17 | (2) be eligible to receive a retirement annuity under | ||||||
18 | this Article; | ||||||
19 | (3) not have received any retirement annuity under this | ||||||
20 | Article; | ||||||
21 | (4) not have a QILDRO in effect against him or her | ||||||
22 | under this Article; and | ||||||
23 | (5) not have elected to receive a partial accelerated | ||||||
24 | pension benefit payment under Section 2-154.6. |
| |||||||
| |||||||
1 | Beginning January 1, 2017, an eligible person may make a | ||||||
2 | written election with the System to receive an accelerated | ||||||
3 | pension benefit payment in lieu of a retirement annuity. | ||||||
4 | A person who elects to receive an accelerated pension | ||||||
5 | benefit payment under this Section may not elect to proceed | ||||||
6 | under the Retirement Systems Reciprocal Act with respect to | ||||||
7 | service under this Article. | ||||||
8 | (b) The accelerated pension benefit payment under this | ||||||
9 | Section shall be a one-time lump sum payment in an amount equal | ||||||
10 | to 75% of the present value of the greatest retirement annuity | ||||||
11 | to which the eligible person is entitled at the date of the | ||||||
12 | election (including any anticipated annual increases but | ||||||
13 | disregarding any survivor benefits), as calculated by the | ||||||
14 | System using the actuarial tables and other assumptions adopted | ||||||
15 | by the Board. | ||||||
16 | (c) A person's credits and creditable service under this | ||||||
17 | Article shall be terminated upon the person's receipt of an | ||||||
18 | accelerated pension benefit payment under this Section, and no | ||||||
19 | other benefit shall be paid under this Article based on those | ||||||
20 | terminated credits and creditable service, including any | ||||||
21 | retirement, survivor, or other benefit; except that to the | ||||||
22 | extent that participation, benefits, or premiums under the | ||||||
23 | State Employees Group Insurance Act of 1971 are based on the | ||||||
24 | amount of service credit, the terminated service credit shall | ||||||
25 | be used for that purpose. | ||||||
26 | (d) If a person who has received an accelerated pension |
| |||||||
| |||||||
1 | benefit payment under this Section returns to active service | ||||||
2 | under this Article, then: | ||||||
3 | (1) Any benefits under the System earned as a result of | ||||||
4 | that return to active service shall be based solely on the | ||||||
5 | person's credits and creditable service arising from the | ||||||
6 | return to active service. | ||||||
7 | (2) The accelerated pension benefit payment may not be | ||||||
8 | repaid to the System, and the terminated credits and | ||||||
9 | creditable service may not under any circumstances be | ||||||
10 | reinstated. | ||||||
11 | (e) The accelerated pension benefit payment under this | ||||||
12 | Section may be subject to withholding or payment of applicable | ||||||
13 | taxes, but to the extent permitted by federal law, a person who | ||||||
14 | receives an accelerated pension benefit payment under this | ||||||
15 | Section may direct the System to pay all or a portion of that | ||||||
16 | payment as a rollover into another retirement plan or account | ||||||
17 | qualified under the Internal Revenue Code of 1986, as amended. | ||||||
18 | (f) The Board shall adopt any rules necessary to implement | ||||||
19 | this Section. | ||||||
20 | (g) No provision of this Section shall be interpreted in a | ||||||
21 | way that would cause the applicable System to cease to be a | ||||||
22 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
23 | (40 ILCS 5/2-154.6 new) | ||||||
24 | Sec. 2-154.6. Partial accelerated pension benefit payment. | ||||||
25 | (a) To be eligible for a partial accelerated pension |
| |||||||
| |||||||
1 | benefit payment provided in this Section, a person must: | ||||||
2 | (1) have terminated service; | ||||||
3 | (2) be eligible to receive a retirement annuity under | ||||||
4 | this Article; | ||||||
5 | (3) not have received any retirement annuity under this | ||||||
6 | Article; | ||||||
7 | (4) not have a QILDRO in effect against him or her | ||||||
8 | under this Article; and | ||||||
9 | (5) not have elected to receive an accelerated pension | ||||||
10 | benefit payment under Section 2-154.5. | ||||||
11 | Beginning January 1, 2017, an eligible person may make a | ||||||
12 | written election with the System to receive a partial | ||||||
13 | accelerated pension benefit payment in exchange for a reduction | ||||||
14 | in his or her retirement annuity and all other benefits under | ||||||
15 | this Article, including, but not limited to, survivors | ||||||
16 | benefits. In the written election, the eligible person shall | ||||||
17 | specify the percentage by which the retirement annuity shall be | ||||||
18 | reduced; however, a person may not elect a percentage reduction | ||||||
19 | of his or her retirement annuity and all other benefits under | ||||||
20 | this Article that would result in a partial accelerated pension | ||||||
21 | benefit payment of less than $50,000. | ||||||
22 | Before providing the partial accelerated pension benefit | ||||||
23 | payment under this Section to a person, the System shall notify | ||||||
24 | that person if the percentage elected for the reduction in his | ||||||
25 | or her retirement annuity and all other benefits under this | ||||||
26 | Article would result in any applicable benefit being less than |
| |||||||
| |||||||
1 | the minimum amount specified for that benefit in this Article, | ||||||
2 | and the eligible person shall be provided the opportunity to | ||||||
3 | change the amount of his or her election. | ||||||
4 | A person who elects to receive a partial accelerated | ||||||
5 | pension benefit payment under this Section may not elect to | ||||||
6 | proceed under the Retirement Systems Reciprocal Act with | ||||||
7 | respect to service under this Article. | ||||||
8 | (b) The partial accelerated pension benefit payment under | ||||||
9 | this Section shall be a one-time lump sum payment in an amount | ||||||
10 | equal to 75% of the elected percentage. For the purposes of | ||||||
11 | this Section, "elected percentage" means the percentage, as | ||||||
12 | specified in the eligible person's written election, of the | ||||||
13 | present value of the greatest retirement annuity to which the | ||||||
14 | eligible person is entitled at the date of the election | ||||||
15 | (including any anticipated annual increases but disregarding | ||||||
16 | any survivor benefits), which shall be calculated by the System | ||||||
17 | using the actuarial tables and other assumptions adopted by the | ||||||
18 | Board. | ||||||
19 | A person who receives the partial accelerated pension | ||||||
20 | benefit payment shall have the amount of his or her retirement | ||||||
21 | annuity and all other benefits under this Article, including, | ||||||
22 | but not limited to, survivors benefits, reduced by the | ||||||
23 | percentage specified in that person's written election. | ||||||
24 | (c) The percentage reduction in retirement annuity and all | ||||||
25 | other benefits under this Article may not under any | ||||||
26 | circumstances be modified after the partial accelerated |
| |||||||
| |||||||
1 | pension benefit payment under this Section is received. | ||||||
2 | Notwithstanding any provision of this Article to the contrary, | ||||||
3 | a person who elects to receive a partial accelerated pension | ||||||
4 | benefit payment that results in an applicable benefit being | ||||||
5 | less than the minimum amount specified for that benefit in this | ||||||
6 | Article shall not be entitled to receive that minimum amount. | ||||||
7 | (d) If a person who has received a partial accelerated | ||||||
8 | pension benefit payment under this Section returns to active | ||||||
9 | service under this Article, then: | ||||||
10 | (1) Any benefits under the System earned as a result of | ||||||
11 | that return to active service shall be reduced by the | ||||||
12 | amount specified in that person's written election. | ||||||
13 | (2) The partial accelerated pension benefit payment | ||||||
14 | may not be repaid to the System. | ||||||
15 | (3) That person is not eligible to elect or receive any | ||||||
16 | additional partial accelerated pension benefit payment. | ||||||
17 | (e) The partial accelerated pension benefit payment under | ||||||
18 | this Section may be subject to withholding or payment of | ||||||
19 | applicable taxes, but to the extent permitted by federal law, a | ||||||
20 | person who receives a partial accelerated pension benefit | ||||||
21 | payment under this Section may direct the System to pay all or | ||||||
22 | a portion of that payment as a rollover into another retirement | ||||||
23 | plan or account qualified under the Internal Revenue Code of | ||||||
24 | 1986, as amended. | ||||||
25 | (f) The Board shall adopt any rules necessary to implement | ||||||
26 | this Section. |
| |||||||
| |||||||
1 | (g) No provision of this Section shall be interpreted in a | ||||||
2 | way that would cause the applicable System to cease to be a | ||||||
3 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
4 | (40 ILCS 5/2-162) | ||||||
5 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
6 | which has been
held unconstitutional)
| ||||||
7 | Sec. 2-162. Application and expiration of new benefit | ||||||
8 | increases. | ||||||
9 | (a) As used in this Section, "new benefit increase" means | ||||||
10 | an increase in the amount of any benefit provided under this | ||||||
11 | Article, or an expansion of the conditions of eligibility for | ||||||
12 | any benefit under this Article, that results from an amendment | ||||||
13 | to this Code that takes effect after June 1, 2005 (the | ||||||
14 | effective date of Public Act 94-4). "New benefit increase", | ||||||
15 | however, does not include any benefit increase resulting from | ||||||
16 | the changes made to this Article by this amendatory Act of the | ||||||
17 | 99th General Assembly the effective date of this amendatory Act | ||||||
18 | of the 94th General Assembly . | ||||||
19 | (b) Notwithstanding any other provision of this Code or any | ||||||
20 | subsequent amendment to this Code, every new benefit increase | ||||||
21 | is subject to this Section and shall be deemed to be granted | ||||||
22 | only in conformance with and contingent upon compliance with | ||||||
23 | the provisions of this Section.
| ||||||
24 | (c) The Public Act enacting a new benefit increase must | ||||||
25 | identify and provide for payment to the System of additional |
| |||||||
| |||||||
1 | funding at least sufficient to fund the resulting annual | ||||||
2 | increase in cost to the System as it accrues. | ||||||
3 | Every new benefit increase is contingent upon the General | ||||||
4 | Assembly providing the additional funding required under this | ||||||
5 | subsection. The Commission on Government Forecasting and | ||||||
6 | Accountability shall analyze whether adequate additional | ||||||
7 | funding has been provided for the new benefit increase and | ||||||
8 | shall report its analysis to the Public Pension Division of the | ||||||
9 | Department of Financial and Professional Regulation. A new | ||||||
10 | benefit increase created by a Public Act that does not include | ||||||
11 | the additional funding required under this subsection is null | ||||||
12 | and void. If the Public Pension Division determines that the | ||||||
13 | additional funding provided for a new benefit increase under | ||||||
14 | this subsection is or has become inadequate, it may so certify | ||||||
15 | to the Governor and the State Comptroller and, in the absence | ||||||
16 | of corrective action by the General Assembly, the new benefit | ||||||
17 | increase shall expire at the end of the fiscal year in which | ||||||
18 | the certification is made.
| ||||||
19 | (d) Every new benefit increase shall expire 5 years after | ||||||
20 | its effective date or on such earlier date as may be specified | ||||||
21 | in the language enacting the new benefit increase or provided | ||||||
22 | under subsection (c). This does not prevent the General | ||||||
23 | Assembly from extending or re-creating a new benefit increase | ||||||
24 | by law. | ||||||
25 | (e) Except as otherwise provided in the language creating | ||||||
26 | the new benefit increase, a new benefit increase that expires |
| |||||||
| |||||||
1 | under this Section continues to apply to persons who applied | ||||||
2 | and qualified for the affected benefit while the new benefit | ||||||
3 | increase was in effect and to the affected beneficiaries and | ||||||
4 | alternate payees of such persons, but does not apply to any | ||||||
5 | other person, including without limitation a person who | ||||||
6 | continues in service after the expiration date and did not | ||||||
7 | apply and qualify for the affected benefit while the new | ||||||
8 | benefit increase was in effect.
| ||||||
9 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
10 | (40 ILCS 5/14-147.5 new) | ||||||
11 | Sec. 14-147.5. Accelerated pension benefit payment. | ||||||
12 | (a) To be eligible for an accelerated pension benefit | ||||||
13 | payment provided in this Section, a person must: | ||||||
14 | (1) have terminated service; | ||||||
15 | (2) be eligible to receive a retirement annuity under | ||||||
16 | this Article; | ||||||
17 | (3) not have received any retirement annuity under this | ||||||
18 | Article; | ||||||
19 | (4) not have a QILDRO in effect against him or her | ||||||
20 | under this Article; and | ||||||
21 | (5) not have elected to receive a partial accelerated | ||||||
22 | pension benefit payment under Section 14-147.6. | ||||||
23 | Beginning January 1, 2017, an eligible person may make a | ||||||
24 | written election with the System to receive an accelerated | ||||||
25 | pension benefit payment in lieu of a retirement annuity. |
| |||||||
| |||||||
1 | A person who elects to receive an accelerated pension | ||||||
2 | benefit payment under this Section may not elect to proceed | ||||||
3 | under the Retirement Systems Reciprocal Act with respect to | ||||||
4 | service under this Article. | ||||||
5 | (b) The accelerated pension benefit payment under this | ||||||
6 | Section shall be a one-time lump sum payment in an amount equal | ||||||
7 | to 75% of the present value of the greatest retirement annuity | ||||||
8 | to which the eligible person is entitled at the date of the | ||||||
9 | election (including any anticipated annual increases but | ||||||
10 | disregarding any survivor benefits), as calculated by the | ||||||
11 | System using the actuarial tables and other assumptions adopted | ||||||
12 | by the Board. | ||||||
13 | (c) A person's credits and creditable service under this | ||||||
14 | Article shall be terminated upon the person's receipt of an | ||||||
15 | accelerated pension benefit payment under this Section, and no | ||||||
16 | other benefit shall be paid under this Article based on those | ||||||
17 | terminated credits and creditable service, including any | ||||||
18 | retirement, survivor, or other benefit; except that to the | ||||||
19 | extent that participation, benefits, or premiums under the | ||||||
20 | State Employees Group Insurance Act of 1971 are based on the | ||||||
21 | amount of service credit, the terminated service credit shall | ||||||
22 | be used for that purpose. | ||||||
23 | (d) If a person who has received an accelerated pension | ||||||
24 | benefit payment under this Section returns to active service | ||||||
25 | under this Article, then: | ||||||
26 | (1) Any benefits under the System earned as a result of |
| |||||||
| |||||||
1 | that return to active service shall be based solely on the | ||||||
2 | person's credits and creditable service arising from the | ||||||
3 | return to active service. | ||||||
4 | (2) The accelerated pension benefit payment may not be | ||||||
5 | repaid to the System, and the terminated credits and | ||||||
6 | creditable service may not under any circumstances be | ||||||
7 | reinstated. | ||||||
8 | (e) The accelerated pension benefit payment under this | ||||||
9 | Section may be subject to withholding or payment of applicable | ||||||
10 | taxes, but to the extent permitted by federal law, a person who | ||||||
11 | receives an accelerated pension benefit payment under this | ||||||
12 | Section may direct the System to pay all or a portion of that | ||||||
13 | payment as a rollover into another retirement plan or account | ||||||
14 | qualified under the Internal Revenue Code of 1986, as amended. | ||||||
15 | (f) The Board shall adopt any rules necessary to implement | ||||||
16 | this Section. | ||||||
17 | (g) No provision of this Section shall be interpreted in a | ||||||
18 | way that would cause the applicable System to cease to be a | ||||||
19 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
20 | (40 ILCS 5/14-147.6 new) | ||||||
21 | Sec. 14-147.6. Partial accelerated pension benefit | ||||||
22 | payment. | ||||||
23 | (a) To be eligible for a partial accelerated pension | ||||||
24 | benefit payment provided in this Section, a person must: | ||||||
25 | (1) have terminated service; |
| |||||||
| |||||||
1 | (2) be eligible to receive a retirement annuity under | ||||||
2 | this Article; | ||||||
3 | (3) not have received any retirement annuity under this | ||||||
4 | Article; | ||||||
5 | (4) not have a QILDRO in effect against him or her | ||||||
6 | under this Article; and | ||||||
7 | (5) not have elected to receive an accelerated pension | ||||||
8 | benefit payment under Section 14-147.5. | ||||||
9 | Beginning January 1, 2017, an eligible person may make a | ||||||
10 | written election with the System to receive a partial | ||||||
11 | accelerated pension benefit payment in exchange for a reduction | ||||||
12 | in his or her retirement annuity and all other benefits under | ||||||
13 | this Article, including, but not limited to, survivors | ||||||
14 | benefits. In the written election, the eligible person shall | ||||||
15 | specify the percentage by which the retirement annuity shall be | ||||||
16 | reduced; however, a person may not elect a percentage reduction | ||||||
17 | of his or her retirement annuity and all other benefits under | ||||||
18 | this Article that would result in a partial accelerated pension | ||||||
19 | benefit payment of less than $50,000. | ||||||
20 | Before providing the partial accelerated pension benefit | ||||||
21 | payment under this Section to a person, the System shall notify | ||||||
22 | that person if the percentage elected for the reduction in his | ||||||
23 | or her retirement annuity and all other benefits under this | ||||||
24 | Article would result in any applicable benefit being less than | ||||||
25 | the minimum amount specified for that benefit in this Article, | ||||||
26 | and the eligible person shall be provided the opportunity to |
| |||||||
| |||||||
1 | change the amount of his or her election. | ||||||
2 | A person who elects to receive a partial accelerated | ||||||
3 | pension benefit payment under this Section may not elect to | ||||||
4 | proceed under the Retirement Systems Reciprocal Act with | ||||||
5 | respect to service under this Article. | ||||||
6 | (b) The partial accelerated pension benefit payment under | ||||||
7 | this Section shall be a one-time lump sum payment in an amount | ||||||
8 | equal to 75% of the elected percentage. For the purposes of | ||||||
9 | this Section, "elected percentage" means the percentage, as | ||||||
10 | specified in the eligible person's written election, of the | ||||||
11 | present value of the greatest retirement annuity to which the | ||||||
12 | eligible person is entitled at the date of the election | ||||||
13 | (including any anticipated annual increases but disregarding | ||||||
14 | any survivor benefits), which shall be calculated by the System | ||||||
15 | using the actuarial tables and other assumptions adopted by the | ||||||
16 | Board. | ||||||
17 | A person who receives the partial accelerated pension | ||||||
18 | benefit payment shall have the amount of his or her retirement | ||||||
19 | annuity and all other benefits under this Article, including, | ||||||
20 | but not limited to, survivors benefits, reduced by the | ||||||
21 | percentage specified in that person's written election. | ||||||
22 | (c) The percentage reduction in retirement annuity and all | ||||||
23 | other benefits under this Article may not under any | ||||||
24 | circumstances be modified after the partial accelerated | ||||||
25 | pension benefit payment under this Section is received. | ||||||
26 | Notwithstanding any provision of this Article to the contrary, |
| |||||||
| |||||||
1 | a person who elects to receive a partial accelerated pension | ||||||
2 | benefit payment that results in an applicable benefit being | ||||||
3 | less than the minimum amount specified for that benefit in this | ||||||
4 | Article shall not be entitled to receive that minimum amount. | ||||||
5 | (d) If a person who has received a partial accelerated | ||||||
6 | pension benefit payment under this Section returns to active | ||||||
7 | service under this Article, then: | ||||||
8 | (1) Any benefits under the System earned as a result of | ||||||
9 | that return to active service shall be reduced by the | ||||||
10 | amount specified in that person's written election. | ||||||
11 | (2) The partial accelerated pension benefit payment | ||||||
12 | may not be repaid to the System. | ||||||
13 | (3) That person is not eligible to elect or receive any | ||||||
14 | additional partial accelerated pension benefit payment. | ||||||
15 | (e) The partial accelerated pension benefit payment under | ||||||
16 | this Section may be subject to withholding or payment of | ||||||
17 | applicable taxes, but to the extent permitted by federal law, a | ||||||
18 | person who receives a partial accelerated pension benefit | ||||||
19 | payment under this Section may direct the System to pay all or | ||||||
20 | a portion of that payment as a rollover into another retirement | ||||||
21 | plan or account qualified under the Internal Revenue Code of | ||||||
22 | 1986, as amended. | ||||||
23 | (f) The Board shall adopt any rules necessary to implement | ||||||
24 | this Section. | ||||||
25 | (g) No provision of this Section shall be interpreted in a | ||||||
26 | way that would cause the applicable System to cease to be a |
| |||||||
| |||||||
1 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
2 | (40 ILCS 5/14-152.1) | ||||||
3 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
4 | which has been held unconstitutional)
| ||||||
5 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
6 | increases. | ||||||
7 | (a) As used in this Section, "new benefit increase" means | ||||||
8 | an increase in the amount of any benefit provided under this | ||||||
9 | Article, or an expansion of the conditions of eligibility for | ||||||
10 | any benefit under this Article, that results from an amendment | ||||||
11 | to this Code that takes effect after June 1, 2005 (the | ||||||
12 | effective date of Public Act 94-4). "New benefit increase", | ||||||
13 | however, does not include any benefit increase resulting from | ||||||
14 | the changes made to this Article by Public Act 96-37 or by this | ||||||
15 | amendatory Act of the 99th General Assembly this amendatory Act | ||||||
16 | of the 96th General Assembly .
| ||||||
17 | (b) Notwithstanding any other provision of this Code or any | ||||||
18 | subsequent amendment to this Code, every new benefit increase | ||||||
19 | is subject to this Section and shall be deemed to be granted | ||||||
20 | only in conformance with and contingent upon compliance with | ||||||
21 | the provisions of this Section.
| ||||||
22 | (c) The Public Act enacting a new benefit increase must | ||||||
23 | identify and provide for payment to the System of additional | ||||||
24 | funding at least sufficient to fund the resulting annual | ||||||
25 | increase in cost to the System as it accrues. |
| |||||||
| |||||||
1 | Every new benefit increase is contingent upon the General | ||||||
2 | Assembly providing the additional funding required under this | ||||||
3 | subsection. The Commission on Government Forecasting and | ||||||
4 | Accountability shall analyze whether adequate additional | ||||||
5 | funding has been provided for the new benefit increase and | ||||||
6 | shall report its analysis to the Public Pension Division of the | ||||||
7 | Department of Financial and Professional Regulation. A new | ||||||
8 | benefit increase created by a Public Act that does not include | ||||||
9 | the additional funding required under this subsection is null | ||||||
10 | and void. If the Public Pension Division determines that the | ||||||
11 | additional funding provided for a new benefit increase under | ||||||
12 | this subsection is or has become inadequate, it may so certify | ||||||
13 | to the Governor and the State Comptroller and, in the absence | ||||||
14 | of corrective action by the General Assembly, the new benefit | ||||||
15 | increase shall expire at the end of the fiscal year in which | ||||||
16 | the certification is made.
| ||||||
17 | (d) Every new benefit increase shall expire 5 years after | ||||||
18 | its effective date or on such earlier date as may be specified | ||||||
19 | in the language enacting the new benefit increase or provided | ||||||
20 | under subsection (c). This does not prevent the General | ||||||
21 | Assembly from extending or re-creating a new benefit increase | ||||||
22 | by law. | ||||||
23 | (e) Except as otherwise provided in the language creating | ||||||
24 | the new benefit increase, a new benefit increase that expires | ||||||
25 | under this Section continues to apply to persons who applied | ||||||
26 | and qualified for the affected benefit while the new benefit |
| |||||||
| |||||||
1 | increase was in effect and to the affected beneficiaries and | ||||||
2 | alternate payees of such persons, but does not apply to any | ||||||
3 | other person, including without limitation a person who | ||||||
4 | continues in service after the expiration date and did not | ||||||
5 | apply and qualify for the affected benefit while the new | ||||||
6 | benefit increase was in effect.
| ||||||
7 | (Source: P.A. 96-37, eff. 7-13-09.)
| ||||||
8 | (40 ILCS 5/15-185.5 new) | ||||||
9 | Sec. 15-185.5. Accelerated pension benefit payment. | ||||||
10 | (a) To be eligible for an accelerated pension benefit | ||||||
11 | payment provided in this Section, a person must: | ||||||
12 | (1) have terminated service; | ||||||
13 | (2) be eligible to receive a retirement annuity under | ||||||
14 | this Article; | ||||||
15 | (3) not have received any retirement annuity under this | ||||||
16 | Article; | ||||||
17 | (4) not have a QILDRO in effect against him or her | ||||||
18 | under this Article; | ||||||
19 | (5) not have elected to receive a partial accelerated | ||||||
20 | pension benefit payment under Section 15-185.6; and | ||||||
21 | (6) not be a participant in the self-managed plan | ||||||
22 | created in Section 15-158.2. | ||||||
23 | Beginning January 1, 2017, an eligible person may make a | ||||||
24 | written election with the System to receive an accelerated | ||||||
25 | pension benefit payment in lieu of a retirement annuity. |
| |||||||
| |||||||
1 | A person who elects to receive an accelerated pension | ||||||
2 | benefit payment under this Section may not elect to proceed | ||||||
3 | under the Retirement Systems Reciprocal Act with respect to | ||||||
4 | service under this Article. | ||||||
5 | (b) The accelerated pension benefit payment under this | ||||||
6 | Section shall be a one-time lump sum payment in an amount equal | ||||||
7 | to 75% of the present value of the greatest retirement annuity | ||||||
8 | to which the eligible person is entitled at the date of the | ||||||
9 | election (including any anticipated annual increases but | ||||||
10 | disregarding any survivor benefits), as calculated by the | ||||||
11 | System using the actuarial tables and other assumptions adopted | ||||||
12 | by the Board. | ||||||
13 | (c) A person's credits and creditable service under this | ||||||
14 | Article shall be terminated upon the person's receipt of an | ||||||
15 | accelerated pension benefit payment under this Section, and no | ||||||
16 | other benefit shall be paid under this Article based on those | ||||||
17 | terminated credits and creditable service, including any | ||||||
18 | retirement, survivor, or other benefit; except that to the | ||||||
19 | extent that participation, benefits, or premiums under the | ||||||
20 | State Employees Group Insurance Act of 1971 are based on the | ||||||
21 | amount of service credit, the terminated service credit shall | ||||||
22 | be used for that purpose. | ||||||
23 | (d) If a person who has received an accelerated pension | ||||||
24 | benefit payment under this Section returns to active service | ||||||
25 | under this Article, then: | ||||||
26 | (1) Any benefits under the System earned as a result of |
| |||||||
| |||||||
1 | that return to active service shall be based solely on the | ||||||
2 | person's credits and creditable service arising from the | ||||||
3 | return to active service. | ||||||
4 | (2) The accelerated pension benefit payment may not be | ||||||
5 | repaid to the System, and the terminated credits and | ||||||
6 | creditable service may not under any circumstances be | ||||||
7 | reinstated. | ||||||
8 | (e) The accelerated pension benefit payment under this | ||||||
9 | Section may be subject to withholding or payment of applicable | ||||||
10 | taxes, but to the extent permitted by federal law, a person who | ||||||
11 | receives an accelerated pension benefit payment under this | ||||||
12 | Section may direct the System to pay all or a portion of that | ||||||
13 | payment as a rollover into another retirement plan or account | ||||||
14 | qualified under the Internal Revenue Code of 1986, as amended. | ||||||
15 | (f) The Board shall adopt any rules necessary to implement | ||||||
16 | this Section. | ||||||
17 | (g) No provision of this Section shall be interpreted in a | ||||||
18 | way that would cause the applicable System to cease to be a | ||||||
19 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
20 | (40 ILCS 5/15-185.6 new) | ||||||
21 | Sec. 15-185.6. Partial accelerated pension benefit | ||||||
22 | payment. | ||||||
23 | (a) To be eligible for a partial accelerated pension | ||||||
24 | benefit payment provided in this Section, a person must: | ||||||
25 | (1) have terminated service; |
| |||||||
| |||||||
1 | (2) be eligible to receive a retirement annuity under | ||||||
2 | this Article; | ||||||
3 | (3) not have received any retirement annuity under this | ||||||
4 | Article; | ||||||
5 | (4) not have a QILDRO in effect against him or her | ||||||
6 | under this Article; | ||||||
7 | (5) not have elected to receive an accelerated pension | ||||||
8 | benefit payment under Section 15-185.5; and | ||||||
9 | (6) not be a participant in the self-managed plan | ||||||
10 | created in Section 15-158.2. | ||||||
11 | Beginning January 1, 2017, an eligible person may make a | ||||||
12 | written election with the System to receive a partial | ||||||
13 | accelerated pension benefit payment in exchange for a reduction | ||||||
14 | in his or her retirement annuity and all other benefits under | ||||||
15 | this Article, including, but not limited to, survivors | ||||||
16 | benefits. In the written election, the eligible person shall | ||||||
17 | specify the percentage by which the retirement annuity shall be | ||||||
18 | reduced; however, a person may not elect a percentage reduction | ||||||
19 | of his or her retirement annuity and all other benefits under | ||||||
20 | this Article that would result in a partial accelerated pension | ||||||
21 | benefit payment of less than $50,000. | ||||||
22 | Before providing the partial accelerated pension benefit | ||||||
23 | payment under this Section to a person, the System shall notify | ||||||
24 | that person if the percentage elected for the reduction in his | ||||||
25 | or her retirement annuity and all other benefits under this | ||||||
26 | Article would result in any applicable benefit being less than |
| |||||||
| |||||||
1 | the minimum amount specified for that benefit in this Article, | ||||||
2 | and the eligible person shall be provided the opportunity to | ||||||
3 | change the amount of his or her election. | ||||||
4 | A person who elects to receive a partial accelerated | ||||||
5 | pension benefit payment under this Section may not elect to | ||||||
6 | proceed under the Retirement Systems Reciprocal Act with | ||||||
7 | respect to service under this Article. | ||||||
8 | (b) The partial accelerated pension benefit payment under | ||||||
9 | this Section shall be a one-time lump sum payment in an amount | ||||||
10 | equal to 75% of the elected percentage. For the purposes of | ||||||
11 | this Section, "elected percentage" means the percentage, as | ||||||
12 | specified in the eligible person's written election, of the | ||||||
13 | present value of the greatest retirement annuity to which the | ||||||
14 | eligible person is entitled at the date of the election | ||||||
15 | (including any anticipated annual increases but disregarding | ||||||
16 | any survivor benefits), which shall be calculated by the System | ||||||
17 | using the actuarial tables and other assumptions adopted by the | ||||||
18 | Board. | ||||||
19 | A person who receives the partial accelerated pension | ||||||
20 | benefit payment shall have the amount of his or her retirement | ||||||
21 | annuity and all other benefits under this Article, including, | ||||||
22 | but not limited to, survivors benefits, reduced by the | ||||||
23 | percentage specified in that person's written election. | ||||||
24 | (c) The percentage reduction in retirement annuity and all | ||||||
25 | other benefits under this Article may not under any | ||||||
26 | circumstances be modified after the partial accelerated |
| |||||||
| |||||||
1 | pension benefit payment under this Section is received. | ||||||
2 | Notwithstanding any provision of this Article to the contrary, | ||||||
3 | a person who elects to receive a partial accelerated pension | ||||||
4 | benefit payment that results in an applicable benefit being | ||||||
5 | less than the minimum amount specified for that benefit in this | ||||||
6 | Article shall not be entitled to receive that minimum amount. | ||||||
7 | (d) If a person who has received a partial accelerated | ||||||
8 | pension benefit payment under this Section returns to active | ||||||
9 | service under this Article, then: | ||||||
10 | (1) Any benefits under the System earned as a result of | ||||||
11 | that return to active service shall be reduced by the | ||||||
12 | amount specified in that person's written election. | ||||||
13 | (2) The partial accelerated pension benefit payment | ||||||
14 | may not be repaid to the System. | ||||||
15 | (3) That person is not eligible to elect or receive any | ||||||
16 | additional partial accelerated pension benefit payment. | ||||||
17 | (e) The partial accelerated pension benefit payment under | ||||||
18 | this Section may be subject to withholding or payment of | ||||||
19 | applicable taxes, but to the extent permitted by federal law, a | ||||||
20 | person who receives a partial accelerated pension benefit | ||||||
21 | payment under this Section may direct the System to pay all or | ||||||
22 | a portion of that payment as a rollover into another retirement | ||||||
23 | plan or account qualified under the Internal Revenue Code of | ||||||
24 | 1986, as amended. | ||||||
25 | (f) The Board shall adopt any rules necessary to implement | ||||||
26 | this Section. |
| |||||||
| |||||||
1 | (g) No provision of this Section shall be interpreted in a | ||||||
2 | way that would cause the applicable System to cease to be a | ||||||
3 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
4 | (40 ILCS 5/15-198) | ||||||
5 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
6 | which has been held unconstitutional)
| ||||||
7 | Sec. 15-198. Application and expiration of new benefit | ||||||
8 | increases. | ||||||
9 | (a) As used in this Section, "new benefit increase" means | ||||||
10 | an increase in the amount of any benefit provided under this | ||||||
11 | Article, or an expansion of the conditions of eligibility for | ||||||
12 | any benefit under this Article, that results from an amendment | ||||||
13 | to this Code that takes effect after June 1, 2005 (the | ||||||
14 | effective date of Public Act 94-4). "New benefit increase", | ||||||
15 | however, does not include any benefit increase resulting from | ||||||
16 | the changes made to this Article by this amendatory Act of the | ||||||
17 | 99th General Assembly the effective date of this amendatory Act | ||||||
18 | of the 94th General Assembly . | ||||||
19 | (b) Notwithstanding any other provision of this Code or any | ||||||
20 | subsequent amendment to this Code, every new benefit increase | ||||||
21 | is subject to this Section and shall be deemed to be granted | ||||||
22 | only in conformance with and contingent upon compliance with | ||||||
23 | the provisions of this Section.
| ||||||
24 | (c) The Public Act enacting a new benefit increase must | ||||||
25 | identify and provide for payment to the System of additional |
| |||||||
| |||||||
1 | funding at least sufficient to fund the resulting annual | ||||||
2 | increase in cost to the System as it accrues. | ||||||
3 | Every new benefit increase is contingent upon the General | ||||||
4 | Assembly providing the additional funding required under this | ||||||
5 | subsection. The Commission on Government Forecasting and | ||||||
6 | Accountability shall analyze whether adequate additional | ||||||
7 | funding has been provided for the new benefit increase and | ||||||
8 | shall report its analysis to the Public Pension Division of the | ||||||
9 | Department of Financial and Professional Regulation. A new | ||||||
10 | benefit increase created by a Public Act that does not include | ||||||
11 | the additional funding required under this subsection is null | ||||||
12 | and void. If the Public Pension Division determines that the | ||||||
13 | additional funding provided for a new benefit increase under | ||||||
14 | this subsection is or has become inadequate, it may so certify | ||||||
15 | to the Governor and the State Comptroller and, in the absence | ||||||
16 | of corrective action by the General Assembly, the new benefit | ||||||
17 | increase shall expire at the end of the fiscal year in which | ||||||
18 | the certification is made.
| ||||||
19 | (d) Every new benefit increase shall expire 5 years after | ||||||
20 | its effective date or on such earlier date as may be specified | ||||||
21 | in the language enacting the new benefit increase or provided | ||||||
22 | under subsection (c). This does not prevent the General | ||||||
23 | Assembly from extending or re-creating a new benefit increase | ||||||
24 | by law. | ||||||
25 | (e) Except as otherwise provided in the language creating | ||||||
26 | the new benefit increase, a new benefit increase that expires |
| |||||||
| |||||||
1 | under this Section continues to apply to persons who applied | ||||||
2 | and qualified for the affected benefit while the new benefit | ||||||
3 | increase was in effect and to the affected beneficiaries and | ||||||
4 | alternate payees of such persons, but does not apply to any | ||||||
5 | other person, including without limitation a person who | ||||||
6 | continues in service after the expiration date and did not | ||||||
7 | apply and qualify for the affected benefit while the new | ||||||
8 | benefit increase was in effect.
| ||||||
9 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
10 | (40 ILCS 5/16-190.5 new) | ||||||
11 | Sec. 16-190.5. Accelerated pension benefit payment. | ||||||
12 | (a) To be eligible for an accelerated pension benefit | ||||||
13 | payment provided in this Section, a person must: | ||||||
14 | (1) have terminated service; | ||||||
15 | (2) be eligible to receive a retirement annuity under | ||||||
16 | this Article; | ||||||
17 | (3) not have received any retirement annuity under this | ||||||
18 | Article; | ||||||
19 | (4) not have a QILDRO in effect against him or her | ||||||
20 | under this Article; and | ||||||
21 | (5) not have elected to receive a partial accelerated | ||||||
22 | pension benefit payment under Section 16-190.6. | ||||||
23 | Beginning January 1, 2017, an eligible person may make a | ||||||
24 | written election with the System to receive an accelerated | ||||||
25 | pension benefit payment in lieu of a retirement annuity. |
| |||||||
| |||||||
1 | A person who elects to receive an accelerated pension | ||||||
2 | benefit payment under this Section may not elect to proceed | ||||||
3 | under the Retirement Systems Reciprocal Act with respect to | ||||||
4 | service under this Article. | ||||||
5 | (b) The accelerated pension benefit payment under this | ||||||
6 | Section shall be a one-time lump sum payment in an amount equal | ||||||
7 | to 75% of the present value of the greatest retirement annuity | ||||||
8 | to which the eligible person is entitled at the date of the | ||||||
9 | election (including any anticipated annual increases but | ||||||
10 | disregarding any survivor benefits), as calculated by the | ||||||
11 | System using the actuarial tables and other assumptions adopted | ||||||
12 | by the Board. | ||||||
13 | (c) A person's credits and creditable service under this | ||||||
14 | Article shall be terminated upon the person's receipt of an | ||||||
15 | accelerated pension benefit payment under this Section, and no | ||||||
16 | other benefit shall be paid under this Article based on those | ||||||
17 | terminated credits and creditable service, including any | ||||||
18 | retirement, survivor, or other benefit; except that to the | ||||||
19 | extent that participation, benefits, or premiums under the | ||||||
20 | State Employees Group Insurance Act of 1971 are based on the | ||||||
21 | amount of service credit, the terminated service credit shall | ||||||
22 | be used for that purpose. | ||||||
23 | (d) If a person who has received an accelerated pension | ||||||
24 | benefit payment under this Section returns to active service | ||||||
25 | under this Article, then: | ||||||
26 | (1) Any benefits under the System earned as a result of |
| |||||||
| |||||||
1 | that return to active service shall be based solely on the | ||||||
2 | person's credits and creditable service arising from the | ||||||
3 | return to active service. | ||||||
4 | (2) The accelerated pension benefit payment may not be | ||||||
5 | repaid to the System, and the terminated credits and | ||||||
6 | creditable service may not under any circumstances be | ||||||
7 | reinstated. | ||||||
8 | (e) The accelerated pension benefit payment under this | ||||||
9 | Section may be subject to withholding or payment of applicable | ||||||
10 | taxes, but to the extent permitted by federal law, a person who | ||||||
11 | receives an accelerated pension benefit payment under this | ||||||
12 | Section may direct the System to pay all or a portion of that | ||||||
13 | payment as a rollover into another retirement plan or account | ||||||
14 | qualified under the Internal Revenue Code of 1986, as amended. | ||||||
15 | (f) The Board shall adopt any rules necessary to implement | ||||||
16 | this Section. | ||||||
17 | (g) No provision of this Section shall be interpreted in a | ||||||
18 | way that would cause the applicable System to cease to be a | ||||||
19 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
20 | (40 ILCS 5/16-190.6 new) | ||||||
21 | Sec. 16-190.6. Partial accelerated pension benefit | ||||||
22 | payment. | ||||||
23 | (a) To be eligible for a partial accelerated pension | ||||||
24 | benefit payment provided in this Section, a person must: | ||||||
25 | (1) have terminated service; |
| |||||||
| |||||||
1 | (2) be eligible to receive a retirement annuity under | ||||||
2 | this Article; | ||||||
3 | (3) not have received any retirement annuity under this | ||||||
4 | Article; | ||||||
5 | (4) not have a QILDRO in effect against him or her | ||||||
6 | under this Article; and | ||||||
7 | (5) not have elected to receive an accelerated pension | ||||||
8 | benefit payment under Section 16-190.5. | ||||||
9 | Beginning January 1, 2017, an eligible person may make a | ||||||
10 | written election with the System to receive a partial | ||||||
11 | accelerated pension benefit payment in exchange for a reduction | ||||||
12 | in his or her retirement annuity and all other benefits under | ||||||
13 | this Article, including, but not limited to, survivors | ||||||
14 | benefits. In the written election, the eligible person shall | ||||||
15 | specify the percentage by which the retirement annuity shall be | ||||||
16 | reduced; however, a person may not elect a percentage reduction | ||||||
17 | of his or her retirement annuity and all other benefits under | ||||||
18 | this Article that would result in a partial accelerated pension | ||||||
19 | benefit payment of less than $50,000. | ||||||
20 | Before providing the partial accelerated pension benefit | ||||||
21 | payment under this Section to a person, the System shall notify | ||||||
22 | that person if the percentage elected for the reduction in his | ||||||
23 | or her retirement annuity and all other benefits under this | ||||||
24 | Article would result in any applicable benefit being less than | ||||||
25 | the minimum amount specified for that benefit in this Article, | ||||||
26 | and the eligible person shall be provided the opportunity to |
| |||||||
| |||||||
1 | change the amount of his or her election. | ||||||
2 | A person who elects to receive a partial accelerated | ||||||
3 | pension benefit payment under this Section may not elect to | ||||||
4 | proceed under the Retirement Systems Reciprocal Act with | ||||||
5 | respect to service under this Article. | ||||||
6 | (b) The partial accelerated pension benefit payment under | ||||||
7 | this Section shall be a one-time lump sum payment in an amount | ||||||
8 | equal to 75% of the elected percentage. For the purposes of | ||||||
9 | this Section, "elected percentage" means the percentage, as | ||||||
10 | specified in the eligible person's written election, of the | ||||||
11 | present value of the greatest retirement annuity to which the | ||||||
12 | eligible person is entitled at the date of the election | ||||||
13 | (including any anticipated annual increases but disregarding | ||||||
14 | any survivor benefits), which shall be calculated by the System | ||||||
15 | using the actuarial tables and other assumptions adopted by the | ||||||
16 | Board. | ||||||
17 | A person who receives the partial accelerated pension | ||||||
18 | benefit payment shall have the amount of his or her retirement | ||||||
19 | annuity and all other benefits under this Article, including, | ||||||
20 | but not limited to, survivors benefits, reduced by the | ||||||
21 | percentage specified in that person's written election. | ||||||
22 | (c) The percentage reduction in retirement annuity and all | ||||||
23 | other benefits under this Article may not under any | ||||||
24 | circumstances be modified after the partial accelerated | ||||||
25 | pension benefit payment under this Section is received. | ||||||
26 | Notwithstanding any provision of this Article to the contrary, |
| |||||||
| |||||||
1 | a person who elects to receive a partial accelerated pension | ||||||
2 | benefit payment that results in an applicable benefit being | ||||||
3 | less than the minimum amount specified for that benefit in this | ||||||
4 | Article shall not be entitled to receive that minimum amount. | ||||||
5 | (d) If a person who has received a partial accelerated | ||||||
6 | pension benefit payment under this Section returns to active | ||||||
7 | service under this Article, then: | ||||||
8 | (1) Any benefits under the System earned as a result of | ||||||
9 | that return to active service shall be reduced by the | ||||||
10 | amount specified in that person's written election. | ||||||
11 | (2) The partial accelerated pension benefit payment | ||||||
12 | may not be repaid to the System. | ||||||
13 | (3) That person is not eligible to elect or receive any | ||||||
14 | additional partial accelerated pension benefit payment. | ||||||
15 | (e) The partial accelerated pension benefit payment under | ||||||
16 | this Section may be subject to withholding or payment of | ||||||
17 | applicable taxes, but to the extent permitted by federal law, a | ||||||
18 | person who receives a partial accelerated pension benefit | ||||||
19 | payment under this Section may direct the System to pay all or | ||||||
20 | a portion of that payment as a rollover into another retirement | ||||||
21 | plan or account qualified under the Internal Revenue Code of | ||||||
22 | 1986, as amended. | ||||||
23 | (f) The Board shall adopt any rules necessary to implement | ||||||
24 | this Section. | ||||||
25 | (g) No provision of this Section shall be interpreted in a | ||||||
26 | way that would cause the applicable System to cease to be a |
| |||||||
| |||||||
1 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
2 | (40 ILCS 5/16-203) | ||||||
3 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
4 | which has been held unconstitutional)
| ||||||
5 | Sec. 16-203. Application and expiration of new benefit | ||||||
6 | increases. | ||||||
7 | (a) As used in this Section, "new benefit increase" means | ||||||
8 | an increase in the amount of any benefit provided under this | ||||||
9 | Article, or an expansion of the conditions of eligibility for | ||||||
10 | any benefit under this Article, that results from an amendment | ||||||
11 | to this Code that takes effect after June 1, 2005 (the | ||||||
12 | effective date of Public Act 94-4). "New benefit increase", | ||||||
13 | however, does not include any benefit increase resulting from | ||||||
14 | the changes made to this Article by Public Act 95-910 or by | ||||||
15 | this amendatory Act of the 99th General Assembly this | ||||||
16 | amendatory Act of the 95th General Assembly . | ||||||
17 | (b) Notwithstanding any other provision of this Code or any | ||||||
18 | subsequent amendment to this Code, every new benefit increase | ||||||
19 | is subject to this Section and shall be deemed to be granted | ||||||
20 | only in conformance with and contingent upon compliance with | ||||||
21 | the provisions of this Section.
| ||||||
22 | (c) The Public Act enacting a new benefit increase must | ||||||
23 | identify and provide for payment to the System of additional | ||||||
24 | funding at least sufficient to fund the resulting annual | ||||||
25 | increase in cost to the System as it accrues. |
| |||||||
| |||||||
1 | Every new benefit increase is contingent upon the General | ||||||
2 | Assembly providing the additional funding required under this | ||||||
3 | subsection. The Commission on Government Forecasting and | ||||||
4 | Accountability shall analyze whether adequate additional | ||||||
5 | funding has been provided for the new benefit increase and | ||||||
6 | shall report its analysis to the Public Pension Division of the | ||||||
7 | Department of Financial and Professional Regulation. A new | ||||||
8 | benefit increase created by a Public Act that does not include | ||||||
9 | the additional funding required under this subsection is null | ||||||
10 | and void. If the Public Pension Division determines that the | ||||||
11 | additional funding provided for a new benefit increase under | ||||||
12 | this subsection is or has become inadequate, it may so certify | ||||||
13 | to the Governor and the State Comptroller and, in the absence | ||||||
14 | of corrective action by the General Assembly, the new benefit | ||||||
15 | increase shall expire at the end of the fiscal year in which | ||||||
16 | the certification is made.
| ||||||
17 | (d) Every new benefit increase shall expire 5 years after | ||||||
18 | its effective date or on such earlier date as may be specified | ||||||
19 | in the language enacting the new benefit increase or provided | ||||||
20 | under subsection (c). This does not prevent the General | ||||||
21 | Assembly from extending or re-creating a new benefit increase | ||||||
22 | by law. | ||||||
23 | (e) Except as otherwise provided in the language creating | ||||||
24 | the new benefit increase, a new benefit increase that expires | ||||||
25 | under this Section continues to apply to persons who applied | ||||||
26 | and qualified for the affected benefit while the new benefit |
| |||||||
| |||||||
1 | increase was in effect and to the affected beneficiaries and | ||||||
2 | alternate payees of such persons, but does not apply to any | ||||||
3 | other person, including without limitation a person who | ||||||
4 | continues in service after the expiration date and did not | ||||||
5 | apply and qualify for the affected benefit while the new | ||||||
6 | benefit increase was in effect.
| ||||||
7 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
| ||||||
8 | (40 ILCS 5/18-161.5 new) | ||||||
9 | Sec. 18-161.5. Accelerated pension benefit payment. | ||||||
10 | (a) To be eligible for an accelerated pension benefit | ||||||
11 | payment provided in this Section, a person must: | ||||||
12 | (1) have terminated service; | ||||||
13 | (2) be eligible to receive a retirement annuity under | ||||||
14 | this Article; | ||||||
15 | (3) not have received any retirement annuity under this | ||||||
16 | Article; | ||||||
17 | (4) not have a QILDRO in effect against him or her | ||||||
18 | under this Article; and | ||||||
19 | (5) not have elected to receive a partial accelerated | ||||||
20 | pension benefit payment under Section 18-161.6. | ||||||
21 | Beginning January 1, 2017, an eligible person may make a | ||||||
22 | written election with the System to receive an accelerated | ||||||
23 | pension benefit payment in lieu of a retirement annuity. | ||||||
24 | A person who elects to receive an accelerated pension | ||||||
25 | benefit payment under this Section may not elect to proceed |
| |||||||
| |||||||
1 | under the Retirement Systems Reciprocal Act with respect to | ||||||
2 | service under this Article. | ||||||
3 | (b) The accelerated pension benefit payment under this | ||||||
4 | Section shall be a one-time lump sum payment in an amount equal | ||||||
5 | to 75% of the present value of the greatest retirement annuity | ||||||
6 | to which the eligible person is entitled at the date of the | ||||||
7 | election (including any anticipated annual increases but | ||||||
8 | disregarding any survivor benefits), as calculated by the | ||||||
9 | System using the actuarial tables and other assumptions adopted | ||||||
10 | by the Board. | ||||||
11 | (c) A person's credits and creditable service under this | ||||||
12 | Article shall be terminated upon the person's receipt of an | ||||||
13 | accelerated pension benefit payment under this Section, and no | ||||||
14 | other benefit shall be paid under this Article based on those | ||||||
15 | terminated credits and creditable service, including any | ||||||
16 | retirement, survivor, or other benefit; except that to the | ||||||
17 | extent that participation, benefits, or premiums under the | ||||||
18 | State Employees Group Insurance Act of 1971 are based on the | ||||||
19 | amount of service credit, the terminated service credit shall | ||||||
20 | be used for that purpose. | ||||||
21 | (d) If a person who has received a partial accelerated | ||||||
22 | pension benefit payment under this Section returns to active | ||||||
23 | service under this Article, then: | ||||||
24 | (1) Any benefits under the System earned as a result of | ||||||
25 | that return to active service shall be based solely on the | ||||||
26 | person's credits and creditable service arising from the |
| |||||||
| |||||||
1 | return to active service. | ||||||
2 | (2) The accelerated pension benefit payment may not be | ||||||
3 | repaid to the System, and the terminated credits and | ||||||
4 | creditable service may not under any circumstances be | ||||||
5 | reinstated. | ||||||
6 | (e) The accelerated pension benefit payment under this | ||||||
7 | Section may be subject to withholding or payment of applicable | ||||||
8 | taxes, but to the extent permitted by federal law, a person who | ||||||
9 | receives an accelerated pension benefit payment under this | ||||||
10 | Section may direct the System to pay all or a portion of that | ||||||
11 | payment as a rollover into another retirement plan or account | ||||||
12 | qualified under the Internal Revenue Code of 1986, as amended. | ||||||
13 | (f) The Board shall adopt any rules necessary to implement | ||||||
14 | this Section. | ||||||
15 | (g) No provision of this Section shall be interpreted in a | ||||||
16 | way that would cause the applicable System to cease to be a | ||||||
17 | qualified plan under the Internal Revenue Code of 1986.
| ||||||
18 | (40 ILCS 5/18-161.6 new) | ||||||
19 | Sec. 18-161.6. Partial accelerated pension benefit | ||||||
20 | payment. | ||||||
21 | (a) To be eligible for a partial accelerated pension | ||||||
22 | benefit payment provided in this Section, a person must: | ||||||
23 | (1) have terminated service; | ||||||
24 | (2) be eligible to receive a retirement annuity under | ||||||
25 | this Article; |
| |||||||
| |||||||
1 | (3) not have received any retirement annuity under this | ||||||
2 | Article; | ||||||
3 | (4) not have a QILDRO in effect against him or her | ||||||
4 | under this Article; and | ||||||
5 | (5) not have elected to receive an accelerated pension | ||||||
6 | benefit payment under Section 18-161.5. | ||||||
7 | Beginning January 1, 2017, an eligible person may make a | ||||||
8 | written election with the System to receive a partial | ||||||
9 | accelerated pension benefit payment in exchange for a reduction | ||||||
10 | in his or her retirement annuity and all other benefits under | ||||||
11 | this Article, including, but not limited to, survivors | ||||||
12 | benefits. In the written election, the eligible person shall | ||||||
13 | specify the percentage by which the retirement annuity shall be | ||||||
14 | reduced; however, a person may not elect a percentage reduction | ||||||
15 | of his or her retirement annuity and all other benefits under | ||||||
16 | this Article that would result in a partial accelerated pension | ||||||
17 | benefit payment of less than $50,000. | ||||||
18 | Before providing the partial accelerated pension benefit | ||||||
19 | payment under this Section to a person, the System shall notify | ||||||
20 | that person if the percentage elected for the reduction in his | ||||||
21 | or her retirement annuity and all other benefits under this | ||||||
22 | Article would result in any applicable benefit being less than | ||||||
23 | the minimum amount specified for that benefit in this Article, | ||||||
24 | and the eligible person shall be provided the opportunity to | ||||||
25 | change the amount of his or her election. | ||||||
26 | A person who elects to receive a partial accelerated |
| |||||||
| |||||||
1 | pension benefit payment under this Section may not elect to | ||||||
2 | proceed under the Retirement Systems Reciprocal Act with | ||||||
3 | respect to service under this Article. | ||||||
4 | (b) The partial accelerated pension benefit payment under | ||||||
5 | this Section shall be a one-time lump sum payment in an amount | ||||||
6 | equal to 75% of the elected percentage. For the purposes of | ||||||
7 | this Section, "elected percentage" means the percentage, as | ||||||
8 | specified in the eligible person's written election, of the | ||||||
9 | present value of the greatest retirement annuity to which the | ||||||
10 | eligible person is entitled at the date of the election | ||||||
11 | (including any anticipated annual increases but disregarding | ||||||
12 | any survivor benefits), which shall be calculated by the System | ||||||
13 | using the actuarial tables and other assumptions adopted by the | ||||||
14 | Board. | ||||||
15 | A person who receives the partial accelerated pension | ||||||
16 | benefit payment shall have the amount of his or her retirement | ||||||
17 | annuity and all other benefits under this Article, including, | ||||||
18 | but not limited to, survivors benefits, reduced by the | ||||||
19 | percentage specified in that person's written election. | ||||||
20 | (c) The percentage reduction in retirement annuity and all | ||||||
21 | other benefits under this Article may not under any | ||||||
22 | circumstances be modified after the partial accelerated | ||||||
23 | pension benefit payment under this Section is received. | ||||||
24 | Notwithstanding any provision of this Article to the contrary, | ||||||
25 | a person who elects to receive a partial accelerated pension | ||||||
26 | benefit payment that results in an applicable benefit being |
| |||||||
| |||||||
1 | less than the minimum amount specified for that benefit in this | ||||||
2 | Article shall not be entitled to receive that minimum amount. | ||||||
3 | (d) If a person who has received an accelerated pension | ||||||
4 | benefit payment under this Section returns to active service | ||||||
5 | under this Article, then: | ||||||
6 | (1) Any benefits under the System earned as a result of | ||||||
7 | that return to active service shall be reduced by the | ||||||
8 | amount specified in that person's written election. | ||||||
9 | (2) The partial accelerated pension benefit payment | ||||||
10 | may not be repaid to the System. | ||||||
11 | (3) That person is not eligible to elect or receive any | ||||||
12 | additional partial accelerated pension benefit payment. | ||||||
13 | (e) The partial accelerated pension benefit payment under | ||||||
14 | this Section may be subject to withholding or payment of | ||||||
15 | applicable taxes, but to the extent permitted by federal law, a | ||||||
16 | person who receives a partial accelerated pension benefit | ||||||
17 | payment under this Section may direct the System to pay all or | ||||||
18 | a portion of that payment as a rollover into another retirement | ||||||
19 | plan or account qualified under the Internal Revenue Code of | ||||||
20 | 1986, as amended. | ||||||
21 | (f) The Board shall adopt any rules necessary to implement | ||||||
22 | this Section. | ||||||
23 | (g) No provision of this Section shall be interpreted in a | ||||||
24 | way that would cause the applicable System to cease to be a | ||||||
25 | qualified plan under the Internal Revenue Code of 1986.
|
| |||||||
| |||||||
1 | (40 ILCS 5/18-169)
| ||||||
2 | Sec. 18-169. Application and expiration of new benefit | ||||||
3 | increases. | ||||||
4 | (a) As used in this Section, "new benefit increase" means | ||||||
5 | an increase in the amount of any benefit provided under this | ||||||
6 | Article, or an expansion of the conditions of eligibility for | ||||||
7 | any benefit under this Article, that results from an amendment | ||||||
8 | to this Code that takes effect after June 1, 2005 (the | ||||||
9 | effective date of Public Act 94-4). "New benefit increase", | ||||||
10 | however, does not include any benefit increase resulting from | ||||||
11 | the changes made to this Article by this amendatory Act of the | ||||||
12 | 99th General Assembly the effective date of this amendatory Act | ||||||
13 | of the 94th General Assembly . | ||||||
14 | (b) Notwithstanding any other provision of this Code or any | ||||||
15 | subsequent amendment to this Code, every new benefit increase | ||||||
16 | is subject to this Section and shall be deemed to be granted | ||||||
17 | only in conformance with and contingent upon compliance with | ||||||
18 | the provisions of this Section.
| ||||||
19 | (c) The Public Act enacting a new benefit increase must | ||||||
20 | identify and provide for payment to the System of additional | ||||||
21 | funding at least sufficient to fund the resulting annual | ||||||
22 | increase in cost to the System as it accrues. | ||||||
23 | Every new benefit increase is contingent upon the General | ||||||
24 | Assembly providing the additional funding required under this | ||||||
25 | subsection. The Commission on Government Forecasting and | ||||||
26 | Accountability shall analyze whether adequate additional |
| |||||||
| |||||||
1 | funding has been provided for the new benefit increase and | ||||||
2 | shall report its analysis to the Public Pension Division of the | ||||||
3 | Department of Financial and Professional Regulation. A new | ||||||
4 | benefit increase created by a Public Act that does not include | ||||||
5 | the additional funding required under this subsection is null | ||||||
6 | and void. If the Public Pension Division determines that the | ||||||
7 | additional funding provided for a new benefit increase under | ||||||
8 | this subsection is or has become inadequate, it may so certify | ||||||
9 | to the Governor and the State Comptroller and, in the absence | ||||||
10 | of corrective action by the General Assembly, the new benefit | ||||||
11 | increase shall expire at the end of the fiscal year in which | ||||||
12 | the certification is made.
| ||||||
13 | (d) Every new benefit increase shall expire 5 years after | ||||||
14 | its effective date or on such earlier date as may be specified | ||||||
15 | in the language enacting the new benefit increase or provided | ||||||
16 | under subsection (c). This does not prevent the General | ||||||
17 | Assembly from extending or re-creating a new benefit increase | ||||||
18 | by law. | ||||||
19 | (e) Except as otherwise provided in the language creating | ||||||
20 | the new benefit increase, a new benefit increase that expires | ||||||
21 | under this Section continues to apply to persons who applied | ||||||
22 | and qualified for the affected benefit while the new benefit | ||||||
23 | increase was in effect and to the affected beneficiaries and | ||||||
24 | alternate payees of such persons, but does not apply to any | ||||||
25 | other person, including without limitation a person who | ||||||
26 | continues in service after the expiration date and did not |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | apply and qualify for the affected benefit while the new | |||||||||||||||||||||||||
2 | benefit increase was in effect.
| |||||||||||||||||||||||||
3 | (Source: P.A. 94-4, eff. 6-1-05.)
| |||||||||||||||||||||||||
4 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||
5 | becoming law.
| |||||||||||||||||||||||||
|