Bill Text: IL HB2029 | 2019-2020 | 101st General Assembly | Enrolled


Bill Title: Amends the State Employees Group Insurance Act of 1971. Provides that "survivor" includes a person who would be receiving an annuity as a survivor of an annuitant except that the annuitant elected to receive an accelerated pension benefit payment. Provides that "TRS benefit recipient" includes a person who would be receiving a monthly benefit or retirement annuity under the Downstate Teacher Article of the Illinois Pension Code except that the benefit recipient elected to receive an accelerated pension benefit payment under that Article in lieu of receiving an annuity. Provides that "community college benefit recipient" includes a person who would be receiving a monthly survivor's annuity or retirement annuity under the State Universities Article of the Illinois Pension Code except that the benefit recipient elected to receive an accelerated pension benefit payment under that Article in lieu of receiving an annuity. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled) 2019-06-27 - Sent to the Governor [HB2029 Detail]

Download: Illinois-2019-HB2029-Enrolled.html



HB2029 EnrolledLRB101 05013 RPS 50022 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Section 3 as follows:
6 (5 ILCS 375/3) (from Ch. 127, par. 523)
7 Sec. 3. Definitions. Unless the context otherwise
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13 (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18 (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2, 14 (including an employee
21who has elected to receive an alternative retirement
22cancellation payment under Section 14-108.5 of the Illinois
23Pension Code in lieu of an annuity or who meets the criteria

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1for retirement, but in lieu of receiving an annuity under that
2Article has elected to receive an accelerated pension benefit
3payment under Section 14-147.5 of that Article), 15 (including
4an employee who has retired under the optional retirement
5program established under Section 15-158.2 or who meets the
6criteria for retirement but in lieu of receiving an annuity
7under that Article has elected to receive an accelerated
8pension benefit payment under Section 15-185.5 of the Article),
9paragraphs (2), (3), or (5) of Section 16-106 (including an
10employee who meets the criteria for retirement, but in lieu of
11receiving an annuity under that Article has elected to receive
12an accelerated pension benefit payment under Section 16-190.5
13of the Illinois Pension Code), or Article 18 of the Illinois
14Pension Code; (2) any person who was receiving group insurance
15coverage under this Act as of March 31, 1978 by reason of his
16status as an annuitant, even though the annuity in relation to
17which such coverage was provided is a proportional annuity
18based on less than the minimum period of service required for a
19retirement annuity in the system involved; (3) any person not
20otherwise covered by this Act who has retired as a
21participating member under Article 2 of the Illinois Pension
22Code but is ineligible for the retirement annuity under Section
232-119 of the Illinois Pension Code; (4) the spouse of any
24person who is receiving a retirement annuity under Article 18
25of the Illinois Pension Code and who is covered under a group
26health insurance program sponsored by a governmental employer

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1other than the State of Illinois and who has irrevocably
2elected to waive his or her coverage under this Act and to have
3his or her spouse considered as the "annuitant" under this Act
4and not as a "dependent"; or (5) an employee who retires, or
5has retired, from a qualified position, as determined according
6to rules promulgated by the Director, under a qualified local
7government, a qualified rehabilitation facility, a qualified
8domestic violence shelter or service, or a qualified child
9advocacy center. (For definition of "retired employee", see (p)
10post).
11 (b-5) (Blank).
12 (b-6) (Blank).
13 (b-7) (Blank).
14 (c) "Carrier" means (1) an insurance company, a corporation
15organized under the Limited Health Service Organization Act or
16the Voluntary Health Services Plan Act, a partnership, or other
17nongovernmental organization, which is authorized to do group
18life or group health insurance business in Illinois, or (2) the
19State of Illinois as a self-insurer.
20 (d) "Compensation" means salary or wages payable on a
21regular payroll by the State Treasurer on a warrant of the
22State Comptroller out of any State, trust or federal fund, or
23by the Governor of the State through a disbursing officer of
24the State out of a trust or out of federal funds, or by any
25Department out of State, trust, federal or other funds held by
26the State Treasurer or the Department, to any person for

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1personal services currently performed, and ordinary or
2accidental disability benefits under Articles 2, 14, 15
3(including ordinary or accidental disability benefits under
4the optional retirement program established under Section
515-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
6Article 18 of the Illinois Pension Code, for disability
7incurred after January 1, 1966, or benefits payable under the
8Workers' Compensation or Occupational Diseases Act or benefits
9payable under a sick pay plan established in accordance with
10Section 36 of the State Finance Act. "Compensation" also means
11salary or wages paid to an employee of any qualified local
12government, qualified rehabilitation facility, qualified
13domestic violence shelter or service, or qualified child
14advocacy center.
15 (e) "Commission" means the State Employees Group Insurance
16Advisory Commission authorized by this Act. Commencing July 1,
171984, "Commission" as used in this Act means the Commission on
18Government Forecasting and Accountability as established by
19the Legislative Commission Reorganization Act of 1984.
20 (f) "Contributory", when referred to as contributory
21coverage, shall mean optional coverages or benefits elected by
22the member toward the cost of which such member makes
23contribution, or which are funded in whole or in part through
24the acceptance of a reduction in earnings or the foregoing of
25an increase in earnings by an employee, as distinguished from
26noncontributory coverage or benefits which are paid entirely by

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1the State of Illinois without reduction of the member's salary.
2 (g) "Department" means any department, institution, board,
3commission, officer, court or any agency of the State
4government receiving appropriations and having power to
5certify payrolls to the Comptroller authorizing payments of
6salary and wages against such appropriations as are made by the
7General Assembly from any State fund, or against trust funds
8held by the State Treasurer and includes boards of trustees of
9the retirement systems created by Articles 2, 14, 15, 16 and 18
10of the Illinois Pension Code. "Department" also includes the
11Illinois Comprehensive Health Insurance Board, the Board of
12Examiners established under the Illinois Public Accounting
13Act, and the Illinois Finance Authority.
14 (h) "Dependent", when the term is used in the context of
15the health and life plan, means a member's spouse and any child
16(1) from birth to age 26 including an adopted child, a child
17who lives with the member from the time of the placement for
18adoption until entry of an order of adoption, a stepchild or
19adjudicated child, or a child who lives with the member if such
20member is a court appointed guardian of the child or (2) age 19
21or over who has a mental or physical disability from a cause
22originating prior to the age of 19 (age 26 if enrolled as an
23adult child dependent). For the health plan only, the term
24"dependent" also includes (1) any person enrolled prior to the
25effective date of this Section who is dependent upon the member
26to the extent that the member may claim such person as a

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1dependent for income tax deduction purposes and (2) any person
2who has received after June 30, 2000 an organ transplant and
3who is financially dependent upon the member and eligible to be
4claimed as a dependent for income tax purposes. A member
5requesting to cover any dependent must provide documentation as
6requested by the Department of Central Management Services and
7file with the Department any and all forms required by the
8Department.
9 (i) "Director" means the Director of the Illinois
10Department of Central Management Services.
11 (j) "Eligibility period" means the period of time a member
12has to elect enrollment in programs or to select benefits
13without regard to age, sex or health.
14 (k) "Employee" means and includes each officer or employee
15in the service of a department who (1) receives his
16compensation for service rendered to the department on a
17warrant issued pursuant to a payroll certified by a department
18or on a warrant or check issued and drawn by a department upon
19a trust, federal or other fund or on a warrant issued pursuant
20to a payroll certified by an elected or duly appointed officer
21of the State or who receives payment of the performance of
22personal services on a warrant issued pursuant to a payroll
23certified by a Department and drawn by the Comptroller upon the
24State Treasurer against appropriations made by the General
25Assembly from any fund or against trust funds held by the State
26Treasurer, and (2) is employed full-time or part-time in a

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1position normally requiring actual performance of duty during
2not less than 1/2 of a normal work period, as established by
3the Director in cooperation with each department, except that
4persons elected by popular vote will be considered employees
5during the entire term for which they are elected regardless of
6hours devoted to the service of the State, and (3) except that
7"employee" does not include any person who is not eligible by
8reason of such person's employment to participate in one of the
9State retirement systems under Articles 2, 14, 15 (either the
10regular Article 15 system or the optional retirement program
11established under Section 15-158.2) or 18, or under paragraph
12(2), (3), or (5) of Section 16-106, of the Illinois Pension
13Code, but such term does include persons who are employed
14during the 6 month qualifying period under Article 14 of the
15Illinois Pension Code. Such term also includes any person who
16(1) after January 1, 1966, is receiving ordinary or accidental
17disability benefits under Articles 2, 14, 15 (including
18ordinary or accidental disability benefits under the optional
19retirement program established under Section 15-158.2),
20paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
21the Illinois Pension Code, for disability incurred after
22January 1, 1966, (2) receives total permanent or total
23temporary disability under the Workers' Compensation Act or
24Occupational Disease Act as a result of injuries sustained or
25illness contracted in the course of employment with the State
26of Illinois, or (3) is not otherwise covered under this Act and

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1has retired as a participating member under Article 2 of the
2Illinois Pension Code but is ineligible for the retirement
3annuity under Section 2-119 of the Illinois Pension Code.
4However, a person who satisfies the criteria of the foregoing
5definition of "employee" except that such person is made
6ineligible to participate in the State Universities Retirement
7System by clause (4) of subsection (a) of Section 15-107 of the
8Illinois Pension Code is also an "employee" for the purposes of
9this Act. "Employee" also includes any person receiving or
10eligible for benefits under a sick pay plan established in
11accordance with Section 36 of the State Finance Act. "Employee"
12also includes (i) each officer or employee in the service of a
13qualified local government, including persons appointed as
14trustees of sanitary districts regardless of hours devoted to
15the service of the sanitary district, (ii) each employee in the
16service of a qualified rehabilitation facility, (iii) each
17full-time employee in the service of a qualified domestic
18violence shelter or service, and (iv) each full-time employee
19in the service of a qualified child advocacy center, as
20determined according to rules promulgated by the Director.
21 (l) "Member" means an employee, annuitant, retired
22employee or survivor. In the case of an annuitant or retired
23employee who first becomes an annuitant or retired employee on
24or after the effective date of this amendatory Act of the 97th
25General Assembly, the individual must meet the minimum vesting
26requirements of the applicable retirement system in order to be

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1eligible for group insurance benefits under that system. In the
2case of a survivor who first becomes a survivor on or after the
3effective date of this amendatory Act of the 97th General
4Assembly, the deceased employee, annuitant, or retired
5employee upon whom the annuity is based must have been eligible
6to participate in the group insurance system under the
7applicable retirement system in order for the survivor to be
8eligible for group insurance benefits under that system.
9 (m) "Optional coverages or benefits" means those coverages
10or benefits available to the member on his or her voluntary
11election, and at his or her own expense.
12 (n) "Program" means the group life insurance, health
13benefits and other employee benefits designed and contracted
14for by the Director under this Act.
15 (o) "Health plan" means a health benefits program offered
16by the State of Illinois for persons eligible for the plan.
17 (p) "Retired employee" means any person who would be an
18annuitant as that term is defined herein but for the fact that
19such person retired prior to January 1, 1966. Such term also
20includes any person formerly employed by the University of
21Illinois in the Cooperative Extension Service who would be an
22annuitant but for the fact that such person was made ineligible
23to participate in the State Universities Retirement System by
24clause (4) of subsection (a) of Section 15-107 of the Illinois
25Pension Code.
26 (q) "Survivor" means a person receiving an annuity as a

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1survivor of an employee or of an annuitant. "Survivor" also
2includes: (1) the surviving dependent of a person who satisfies
3the definition of "employee" except that such person is made
4ineligible to participate in the State Universities Retirement
5System by clause (4) of subsection (a) of Section 15-107 of the
6Illinois Pension Code; (2) the surviving dependent of any
7person formerly employed by the University of Illinois in the
8Cooperative Extension Service who would be an annuitant except
9for the fact that such person was made ineligible to
10participate in the State Universities Retirement System by
11clause (4) of subsection (a) of Section 15-107 of the Illinois
12Pension Code; and (3) the surviving dependent of a person who
13was an annuitant under this Act by virtue of receiving an
14alternative retirement cancellation payment under Section
1514-108.5 of the Illinois Pension Code; and (4) a person who
16would be receiving an annuity as a survivor of an annuitant
17except that the annuitant elected on or after June 4, 2018 to
18receive an accelerated pension benefit payment under Section
1914-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code in
20lieu of receiving an annuity.
21 (q-2) "SERS" means the State Employees' Retirement System
22of Illinois, created under Article 14 of the Illinois Pension
23Code.
24 (q-3) "SURS" means the State Universities Retirement
25System, created under Article 15 of the Illinois Pension Code.
26 (q-4) "TRS" means the Teachers' Retirement System of the

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1State of Illinois, created under Article 16 of the Illinois
2Pension Code.
3 (q-5) (Blank).
4 (q-6) (Blank).
5 (q-7) (Blank).
6 (r) "Medical services" means the services provided within
7the scope of their licenses by practitioners in all categories
8licensed under the Medical Practice Act of 1987.
9 (s) "Unit of local government" means any county,
10municipality, township, school district (including a
11combination of school districts under the Intergovernmental
12Cooperation Act), special district or other unit, designated as
13a unit of local government by law, which exercises limited
14governmental powers or powers in respect to limited
15governmental subjects, any not-for-profit association with a
16membership that primarily includes townships and township
17officials, that has duties that include provision of research
18service, dissemination of information, and other acts for the
19purpose of improving township government, and that is funded
20wholly or partly in accordance with Section 85-15 of the
21Township Code; any not-for-profit corporation or association,
22with a membership consisting primarily of municipalities, that
23operates its own utility system, and provides research,
24training, dissemination of information, or other acts to
25promote cooperation between and among municipalities that
26provide utility services and for the advancement of the goals

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1and purposes of its membership; the Southern Illinois
2Collegiate Common Market, which is a consortium of higher
3education institutions in Southern Illinois; the Illinois
4Association of Park Districts; and any hospital provider that
5is owned by a county that has 100 or fewer hospital beds and
6has not already joined the program. "Qualified local
7government" means a unit of local government approved by the
8Director and participating in a program created under
9subsection (i) of Section 10 of this Act.
10 (t) "Qualified rehabilitation facility" means any
11not-for-profit organization that is accredited by the
12Commission on Accreditation of Rehabilitation Facilities or
13certified by the Department of Human Services (as successor to
14the Department of Mental Health and Developmental
15Disabilities) to provide services to persons with disabilities
16and which receives funds from the State of Illinois for
17providing those services, approved by the Director and
18participating in a program created under subsection (j) of
19Section 10 of this Act.
20 (u) "Qualified domestic violence shelter or service" means
21any Illinois domestic violence shelter or service and its
22administrative offices funded by the Department of Human
23Services (as successor to the Illinois Department of Public
24Aid), approved by the Director and participating in a program
25created under subsection (k) of Section 10.
26 (v) "TRS benefit recipient" means a person who:

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1 (1) is not a "member" as defined in this Section; and
2 (2) is receiving a monthly benefit or retirement
3 annuity under Article 16 of the Illinois Pension Code or
4 would be receiving such monthly benefit or retirement
5 annuity except that the benefit recipient elected on or
6 after June 4, 2018 to receive an accelerated pension
7 benefit payment under Section 16-190.5 of the Illinois
8 Pension Code in lieu of receiving an annuity; and
9 (3) either (i) has at least 8 years of creditable
10 service under Article 16 of the Illinois Pension Code, or
11 (ii) was enrolled in the health insurance program offered
12 under that Article on January 1, 1996, or (iii) is the
13 survivor of a benefit recipient who had at least 8 years of
14 creditable service under Article 16 of the Illinois Pension
15 Code or was enrolled in the health insurance program
16 offered under that Article on the effective date of this
17 amendatory Act of 1995, or (iv) is a recipient or survivor
18 of a recipient of a disability benefit under Article 16 of
19 the Illinois Pension Code.
20 (w) "TRS dependent beneficiary" means a person who:
21 (1) is not a "member" or "dependent" as defined in this
22 Section; and
23 (2) is a TRS benefit recipient's: (A) spouse, (B)
24 dependent parent who is receiving at least half of his or
25 her support from the TRS benefit recipient, or (C) natural,
26 step, adjudicated, or adopted child who is (i) under age

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1 26, (ii) was, on January 1, 1996, participating as a
2 dependent beneficiary in the health insurance program
3 offered under Article 16 of the Illinois Pension Code, or
4 (iii) age 19 or over who has a mental or physical
5 disability from a cause originating prior to the age of 19
6 (age 26 if enrolled as an adult child).
7 "TRS dependent beneficiary" does not include, as indicated
8under paragraph (2) of this subsection (w), a dependent of the
9survivor of a TRS benefit recipient who first becomes a
10dependent of a survivor of a TRS benefit recipient on or after
11the effective date of this amendatory Act of the 97th General
12Assembly unless that dependent would have been eligible for
13coverage as a dependent of the deceased TRS benefit recipient
14upon whom the survivor benefit is based.
15 (x) "Military leave" refers to individuals in basic
16training for reserves, special/advanced training, annual
17training, emergency call up, activation by the President of the
18United States, or any other training or duty in service to the
19United States Armed Forces.
20 (y) (Blank).
21 (z) "Community college benefit recipient" means a person
22who:
23 (1) is not a "member" as defined in this Section; and
24 (2) is receiving a monthly survivor's annuity or
25 retirement annuity under Article 15 of the Illinois Pension
26 Code or would be receiving such monthly survivor's annuity

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1 or retirement annuity except that the benefit recipient
2 elected on or after June 4, 2018 to receive an accelerated
3 pension benefit payment under Section 15-185.5 of the
4 Illinois Pension Code in lieu of receiving an annuity; and
5 (3) either (i) was a full-time employee of a community
6 college district or an association of community college
7 boards created under the Public Community College Act
8 (other than an employee whose last employer under Article
9 15 of the Illinois Pension Code was a community college
10 district subject to Article VII of the Public Community
11 College Act) and was eligible to participate in a group
12 health benefit plan as an employee during the time of
13 employment with a community college district (other than a
14 community college district subject to Article VII of the
15 Public Community College Act) or an association of
16 community college boards, or (ii) is the survivor of a
17 person described in item (i).
18 (aa) "Community college dependent beneficiary" means a
19person who:
20 (1) is not a "member" or "dependent" as defined in this
21 Section; and
22 (2) is a community college benefit recipient's: (A)
23 spouse, (B) dependent parent who is receiving at least half
24 of his or her support from the community college benefit
25 recipient, or (C) natural, step, adjudicated, or adopted
26 child who is (i) under age 26, or (ii) age 19 or over and

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1 has a mental or physical disability from a cause
2 originating prior to the age of 19 (age 26 if enrolled as
3 an adult child).
4 "Community college dependent beneficiary" does not
5include, as indicated under paragraph (2) of this subsection
6(aa), a dependent of the survivor of a community college
7benefit recipient who first becomes a dependent of a survivor
8of a community college benefit recipient on or after the
9effective date of this amendatory Act of the 97th General
10Assembly unless that dependent would have been eligible for
11coverage as a dependent of the deceased community college
12benefit recipient upon whom the survivor annuity is based.
13 (bb) "Qualified child advocacy center" means any Illinois
14child advocacy center and its administrative offices funded by
15the Department of Children and Family Services, as defined by
16the Children's Advocacy Center Act (55 ILCS 80/), approved by
17the Director and participating in a program created under
18subsection (n) of Section 10.
19 (cc) "Placement for adoption" means the assumption and
20retention by a member of a legal obligation for total or
21partial support of a child in anticipation of adoption of the
22child. The child's placement with the member terminates upon
23the termination of such legal obligation.
24(Source: P.A. 99-143, eff. 7-27-15; 100-355, eff. 1-1-18;
25100-587, eff. 6-4-18.)
26 Section 99. Effective date. This Act takes effect upon

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1becoming law.
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