SB 2595 — ST GROUP INS-COMMUNITY COLLEGE

*LRB09516877JAM42920b* SB2595 95THEngrossed GENERALLRB095 ASSEMBLY16877 StateJAM of42920 Illinoisb andAN 2008ACT SB2595concerning Introducedgovernment. 2/15/2008, by Sen.

Donne E.

Trotter SYNOPSIS AS INTRODUCED:

ILCS 375/3 from Ch.

127, par.

523 ILCS 375/6.9 ILCS 375/6.10 ILCS 15/1.4 ILCS 805/8.32 new Amends the State Employees Group Insurance Act of 1971 and the State Pension Funds Continuing Appropriation Act.

Beginning July 1, 2009, requires the Department of Central Management Services to administer a program of health benefits coverage for retirees, and their dependents, of certain community college districts previously not participating in the Community College Health Insurance Security Fund.

Provides for the collection and use of contributions.

Establishes a committee to advise the State on the program and necessary adjustments in funding sources.

Amends the State Mandates Act to require implementation without reimbursement.

Effective immediately.

LRB095 16877 JAM 42920 b FISCAL NOTE ACT STATE MANDATES MAY APPLY ACT MAY REQUIRE REIMBURSEMENT A BILL FOR SB2595 LRB095 16877 JAM 42920 b AN ACT concerning government.

(b) "Annuitant" means (1) an employee who retires, or has retired, on or after January 1, 1966 on an immediate annuity under the provisions of Articles 2, 14 (including an employee who has elected to receive an alternative retirement cancellation payment under Section 14-108.5 of the Illinois Pension Code in lieu of an annuity), 15 (including an employee SB2595 Engrossed - 2 - LRB095 16877 JAM 42920 b who has retired under the optional retirement program established under Section 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of the Illinois Pension Code;

SB2595 Engrossed - 3 - LRB095 16877 JAM 42920 b (b-5) "New SERS annuitant" means a person who, on or after January 1, 1998, becomes an annuitant, as defined in subsection (b), by virtue of beginning to receive a retirement annuity under Article 14 of the Illinois Pension Code (including an employee who has elected to receive an alternative retirement cancellation payment under Section 14-108.5 of that Code in lieu of an annuity), and is eligible to participate in the basic program of group health benefits provided for annuitants under this Act.

(c) "Carrier" means (1) an insurance company, a corporation SB2595 Engrossed - 4 - LRB095 16877 JAM 42920 b organized under the Limited Health Service Organization Act or the Voluntary Health Services Plan Act, a partnership, or other nongovernmental organization, which is authorized to do group life or group health insurance business in Illinois, or (2) the State of Illinois as a self-insurer.

SB2595 Engrossed - 5 - LRB095 16877 JAM 42920 b (e) "Commission" means the State Employees Group Insurance Advisory Commission authorized by this Act.

(h) "Dependent", when the term is used in the context of SB2595 Engrossed - 6 - LRB095 16877 JAM 42920 b the health and life plan, means a member’s spouse and any unmarried child (1) from birth to age 19 including an adopted child, a child who lives with the member from the time of the filing of a petition for adoption until entry of an order of adoption, a stepchild or recognized child who lives with the member in a parent-child relationship, or a child who lives with the member if such member is a court appointed guardian of the child, or (2) age 19 to 23 enrolled as a full-time student in any accredited school, financially dependent upon the member, and eligible to be claimed as a dependent for income tax purposes, or (3) age 19 or over who is mentally or physically handicapped.

For the health plan only, the term "dependent" also includes any person enrolled prior to the effective date of this Section who is SB2595 Engrossed - 7 - LRB095 16877 JAM 42920 b dependent upon the member to the extent that the member may claim such person as a dependent for income tax deduction purposes;

(k) "Employee" means and includes each officer or employee in the service of a department who (1) receives his compensation for service rendered to the department on a warrant issued pursuant to a payroll certified by a department or on a warrant or check issued and drawn by a department upon a trust, federal or other fund or on a warrant issued pursuant to a payroll certified by an elected or duly appointed officer of the State or who receives payment of the performance of personal services on a warrant issued pursuant to a payroll certified by a Department and drawn by the Comptroller upon the State Treasurer against appropriations made by the General Assembly from any fund or against trust funds held by the State Treasurer, and (2) is employed full-time or part-time in a SB2595 Engrossed - 8 - LRB095 16877 JAM 42920 b position normally requiring actual performance of duty during not less than 1/2 of a normal work period, as established by the Director in cooperation with each department, except that persons elected by popular vote will be considered employees during the entire term for which they are elected regardless of hours devoted to the service of the State, and (3) except that "employee" does not include any person who is not eligible by reason of such person’s employment to participate in one of the State retirement systems under Articles 2, 14, 15 (either the regular Article 15 system or the optional retirement program established under Section 15-158.2) or 18, or under paragraph (2), (3), or (5) of Section 16-106, of the Illinois Pension Code, but such term does include persons who are employed during the 6 month qualifying period under Article 14 of the Illinois Pension Code.

Such term also includes any person who (1) after January 1, 1966, is receiving ordinary or accidental disability benefits under Articles 2, 14, 15 (including ordinary or accidental disability benefits under the optional retirement program established under Section 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of the Illinois Pension Code, for disability incurred after January 1, 1966, (2) receives total permanent or total temporary disability under the Workers’ Compensation Act or Occupational Disease Act as a result of injuries sustained or illness contracted in the course of employment with the State of Illinois, or (3) is not otherwise covered under this Act and SB2595 Engrossed - 9 - LRB095 16877 JAM 42920 b has retired as a participating member under Article 2 of the Illinois Pension Code but is ineligible for the retirement annuity under Section 2-119 of the Illinois Pension Code.

(n) "Program" means the group life insurance, health SB2595 Engrossed - 10 - LRB095 16877 JAM 42920 b benefits and other employee benefits designed and contracted for by the Director under this Act.

and (3) the surviving dependent of a person who SB2595 Engrossed - 11 - LRB095 16877 JAM 42920 b was an annuitant under this Act by virtue of receiving an alternative retirement cancellation payment under Section 14-108.5 of the Illinois Pension Code.

(q-7) "New TRS State survivor" means a survivor, as defined SB2595 Engrossed - 12 - LRB095 16877 JAM 42920 b in subsection (q), whose annuity is paid under Article 16 of the Illinois Pension Code and is based on the death of (i) an employee who is a teacher as defined in paragraph (2), (3), or (5) of Section 16-106 of that Code and whose death occurs on or after July 1, 1998, or (ii) a new TRS State annuitant as defined in subsection (b-7).

any not-for-profit corporation or association, with a membership consisting primarily of municipalities, that operates its own utility system, and provides research, training, dissemination of information, or other acts to promote cooperation between and among municipalities that SB2595 Engrossed - 13 - LRB095 16877 JAM 42920 b provide utility services and for the advancement of the goals and purposes of its membership;

SB2595 Engrossed - 14 - LRB095 16877 JAM 42920 b (v) "TRS benefit recipient" means a person who:

(A) spouse, (B) dependent parent who is receiving at least half of his or her support from the TRS benefit recipient, or (C) unmarried natural or adopted child who is (i) under age 19, or (ii) enrolled as a full-time student in an accredited school, financially dependent upon the TRS benefit recipient, eligible to be claimed as a dependent for income tax purposes, and either is under age 24 or was, on January SB2595 Engrossed - 15 - LRB095 16877 JAM 42920 b 1, 1996, participating as a dependent beneficiary in the health insurance program offered under Article 16 of the Illinois Pension Code, or (iii) age 19 or over who is mentally or physically handicapped.

and (3) either (i) was a full-time employee of a community college district or an association of community college boards created under the Public Community College Act (other than an employee whose last employer under Article 15 of the Illinois Pension Code was a community college district subject to Article VII of the Public Community College Act) and was eligible to participate in a group SB2595 Engrossed - 16 - LRB095 16877 JAM 42920 b health benefit plan as an employee during the time of employment with a community college district (other than a community college district subject to Article VII of the Public Community College Act) or an association of community college boards, or (ii) is the survivor of a person described in item (i).

SB2595 Engrossed - 17 - LRB095 16877 JAM 42920 b (Source:

The State Universities Retirement System and the boards of trustees of the community college districts shall cooperate with the SB2595 Engrossed - 18 - LRB095 16877 JAM 42920 b Department in this endeavor.

SB2595 Engrossed - 19 - LRB095 16877 JAM 42920 b The cost of health benefits under the program shall be paid as follows:

SB2595 Engrossed - 20 - LRB095 16877 JAM 42920 b (f) Financing.

SB2595 Engrossed - 21 - LRB095 16877 JAM 42920 b (h) Continuation of program.

A health benefit plan provided by a community college district subject to Article VII of the Public Community College Act under the terms of a collective bargaining agreement in effect on or prior to the effective date of this amendatory Act of 2008 shall continue in force according to the terms of that SB2595 Engrossed - 22 - LRB095 16877 JAM 42920 b agreement, unless otherwise mutually agreed by the parties to that agreement and the affected retiree.

(7) One member appointed by and representing an education labor organization in the counties of DuPage, SB2595 Engrossed - 23 - LRB095 16877 JAM 42920 b Lake, Kane, and Will.

If the Community College Health Insurance Security Fund experiences a deficit balance based upon the contribution and subsidy rates established in Section 6.10 of this Act and Section 1.4 of the State Pension Funds Continuing Appropriation Act for fiscal year 2009 and thereafter, the Committee shall SB2595 Engrossed - 24 - LRB095 16877 JAM 42920 b make recommendations for adjustments to the funding sources established under those Sections.

(a) Beginning January 1, 1999, every active contributor of the State Universities Retirement System (established under Article 15 of the Illinois Pension Code) who (1) is a full-time employee of a community college district (other than a community college district subject to Article VII of the Public Community College Act) or an association of community college boards and (2) is not an employee as defined in Section 3 of this Act shall make contributions toward the cost of community college annuitant and survivor health benefits at the rate of 0.75% 0.50% of salary.

TheseBeginning contributionsJanuary shall1, be2009, deductedevery byactive contributor of the employerState andUniversities paidRetirement System established under Article 15 of the Illinois Pension Code who (1) is a full-time employee of a community college district, including a community college district subject to Article VII of the StatePublic UniversitiesCommunity RetirementCollege SystemAct, or an association of community college boards and (2) is not an employee as servicedefined agentin forSection 3 of this Act shall make contributions toward the Departmentcost of Centralcommunity Managementcollege Services.annuitant and survivor health benefits at the rate of 0.75% of salary.

SB2595 Engrossed - 25 - LRB095 16877 JAM 42920 b These contributions shall be deducted by the employer and paid to the State Universities Retirement System as service agent for the Department of Central Management Services.

such contributions shall SB2595 - 25 - LRB095 16877 JAM 42920 b be deemed to have been paid by the employee.

(a-5)(b) Beginning January 1, 2009,1999, every activecommunity contributorcollege ofdistrict the(other Statethan Universitiesa Retirementcommunity Systemcollege (establisheddistrict undersubject to Article 15VII of the IllinoisPublic PensionCommunity Code)College whoAct) (1)or association of community college boards that is aan full-timeemployer employeeunder ofthe aState communityUniversities collegeRetirement districtSystem subjectshall tocontribute Articletoward VIIthe cost of the Publiccommunity Communitycollege Collegehealth Actbenefits andprovided (2)under isSB2595 notEngrossed an- employee26 as- definedLRB095 in16877 JAM 42920 b Section 36.9 of this Act shallan makeamount contributionsequal towardto 0.50% of the costsalary ofpaid communityto collegeits annuitantfull-time employees who participate in the State Universities Retirement System and survivorare healthnot benefitsmembers atas thedefined ratein ofSection 0.50%3 of salary.this Act.