HB 4972 — CMS POSTING REQUIREMENTS

*LRB10337243MXP67363b* HB4972 103RDEngrossed GENERALLRB103 ASSEMBLY37243 StateMXP of67363 Illinoisb andAN 2024ACT HB4972concerning IntroducedState 2/7/2024,government. by Rep.

Brandun Schweizer SYNOPSIS AS INTRODUCED:

ILCS 375/6.5 ILCS 375/6.6 Amends the State Employees Group Insurance Act of 1971.

Provides for TRS benefit recipients, the Department of Central Management Servicess shall post those changes on its website and shall submit the planned changes to the Commission on Government Forecasting and Accountability.

Provides that at least 120 days prior to making any changes to funding for the Teacher Health Insurance Security Fund, the Department shall post those changes on its website and shall submit the planned changes to the Commission on Government Forecasting and Accountability.

LRB103 37243 MXP 67363 b A BILL FOR HB4972 LRB103 37243 MXP 67363 b AN ACT concerning State government.

The State Employees Group Insurance Act of 1971 is amended by changing SectionsSection 6.5 and 6.6 as follows:

The Department of Central Management Services and the Teachers' Retirement System shall cooperate in this endeavor and shall coordinate their HB4972 Engrossed - 2 - LRB103 37243 MXP 67363 b activities so as to ensure a smooth transition and uninterrupted health benefit coverage.

HB4972 Engrossed - 3 - LRB103 37243 MXP 67363 b (d) Coverage.

For Fiscal Year 2003, the premium shall not exceed HB4972 Engrossed - 4 - LRB103 37243 MXP 67363 b 110% of the premium actually charged in Fiscal Year 2002.

(1) For a TRS benefit recipient selecting a managed HB4972 Engrossed - 5 - LRB103 37243 MXP 67363 b care program, up to 75% of the total insurance rate shall be paid from the Teacher Health Insurance Security Fund.

Effective with Fiscal Year 2007 and thereafter, for a TRS benefit recipient selecting the major medical coverage program, 75% of the total insurance rate shall be paid from the Teacher Health Insurance Security Fund if a HB4972 Engrossed - 6 - LRB103 37243 MXP 67363 b managed care program is not accessible, as determined by the Department of Central Management Services.

except that (i) if the balance of the cost of coverage exceeds the amount of the monthly annuity or benefit payment, the difference shall be paid directly to the Teachers' Retirement System by the TRS benefit recipient, and (ii) all or part of the balance of the cost of coverage may, at the school board's option, be paid to the Teachers' Retirement System by the school board of the school district from which the TRS benefit recipient retired, in accordance with Section 10-22.3b of HB4972 Engrossed - 7 - LRB103 37243 MXP 67363 b the School Code.

Beginning July 1, 1995, all revenues arising from the administration of the health benefit programs established under Article 16 of the Illinois Pension Code or HB4972 Engrossed - 8 - LRB103 37243 MXP 67363 b this Section shall be deposited into the Teacher Health Insurance Security Fund, which is hereby created as a nonappropriated trust fund to be held outside the State Treasury, with the State Treasurer as custodian.

After other funds authorized for the payment of the costs of the health benefit program established under Article 16 of the Illinois Pension Code are exhausted and until January 1, 1996 (or such later date as may be agreed upon by the Director of Central Management Services and the Secretary of the Teachers' Retirement System), the Secretary of the Teachers' Retirement System may make expenditures from the Teacher Health Insurance Security Fund as necessary to pay up to 75% of the cost of providing health coverage to eligible benefit recipients (as defined in Sections 16-153.1 and 16-153.3 of the Illinois Pension Code) who are enrolled in the Article 16 HB4972 Engrossed - 9 - LRB103 37243 MXP 67363 b health benefit program and to facilitate the transfer of administration of the health benefit program to the Department of Central Management Services.

The Director shall by contract, HB4972 Engrossed - 10 - LRB103 37243 MXP 67363 b self-insurance, or otherwise make available the program of health benefits for TRS benefit recipients and their TRS dependent beneficiaries that is provided for in this Section.

In addition, the Committee shall identify proposed solutions to the funding shortfalls that are affecting the Teacher Health Insurance Security Fund, and it shall report HB4972 Engrossed - 11 - LRB103 37243 MXP 67363 b those solutions to the Governor and the General Assembly within 6 months after August 15, 2011 (the effective date of Public Act 97-386).

(j) At least 12060 days prior to makingthe effective date of any changes to the benefitscoverage or benefit recipient cost share allowed under this Section, the Department shall post those changes on its website and shall submit the planned changes to the Commission on Government Forecasting and Accountability.

7-30-21.) (5 ILCS 375/6.6) Sec.

6.6.

Contributions to the Teacher Health Insurance Security Fund.

(a) Beginning July 1, 1995, all active contributors of the Teachers' Retirement System (established under Article 16 of the Illinois Pension Code) who are not employees of a department as defined in Section 3 of this Act shall make HB4972 - 12 - LRB103 37243 MXP 67363 b contributions toward the cost of annuitant and survivor health benefits.

These contributions shall be at the following rates:

until January 1, 2002, 0.5% of salary;

beginning January 1, 2002, 0.65% of salary;

beginning July 1, 2003, 0.75% of salary;

beginning July 1, 2005, 0.80% of salary;

beginning July 1, 2007, a percentage of salary to be determined by the Department of Central Management Services by rule, which in each fiscal year shall not exceed 105% of the percentage of salary actually required to be paid in the previous fiscal year.

These contributions shall be deducted by the employer and paid to the System as service agent for the Department of Central Management Services.

The System may use the same processes for collecting the contributions required by this subsection that it uses to collect contributions received from school districts and other covered employers under Sections 16-154 and 16-155 of the Illinois Pension Code.

An employer may agree to pick up or pay the contributions required under this subsection on behalf of the teacher;

such contributions shall be deemed to have to have been paid by the teacher.

Beginning January 1, 2002, if the employer does not directly pay the required member contribution, then the employer shall reduce the member's salary by an amount equal to the required contribution and shall then pay the contribution on behalf of the member.

This reduction shall not change the amounts reported as creditable earnings to the HB4972 - 13 - LRB103 37243 MXP 67363 b Teachers' Retirement System.

A person who purchases optional service credit under Article 16 of the Illinois Pension Code for a period after June 30, 1995 must also make a contribution under this subsection for that optional credit, at the rate provided in subsection (a), based on the salary used in computing the optional service credit, plus interest on this employee contribution.

This contribution shall be collected by the System as service agent for the Department of Central Management Services.

The contribution required under this subsection for the optional service credit must be paid in full before any annuity based on that credit begins.

(a-5) Beginning January 1, 2002, every employer of a teacher (other than an employer that is a department as defined in Section 3 of this Act) shall pay an employer contribution toward the cost of annuitant and survivor health benefits.

These contributions shall be computed as follows:

(1) Beginning January 1, 2002 through June 30, 2003, the employer contribution shall be equal to 0.4% of each teacher's salary.