Bill Text: IL HB2378 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the State Employees Group Insurance Act of 1971. Adds to the definition of "community college benefit recipient" a person who is receiving retirement income from a self-managed plan account under the State Universities Article of the Illinois Pension Code and who meets other requirements. Amends the State Universities Article of the Illinois Pension Code. In the definition of "retire" and "retirement", provides that a participant in the self-managed plan retires, and the participant's retirement begins, when the participant is eligible for retirement under the Article, and the Retirement System Reciprocal Act (Article 20 of the Code) if applicable, and the participant begins receiving retirement income from the participant's self-managed plan account.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-31 - Filed with the Clerk by Rep. Stephanie A. Kifowit [HB2378 Detail]

Download: Illinois-2025-HB2378-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2378 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
5 ILCS 375/3 from Ch. 127, par. 523
40 ILCS 5/15-132.2
Amends the State Employees Group Insurance Act of 1971. Adds to the definition of "community college benefit recipient" a person who is receiving retirement income from a self-managed plan account under the State Universities Article of the Illinois Pension Code and who meets other requirements. Amends the State Universities Article of the Illinois Pension Code. In the definition of "retire" and "retirement", provides that a participant in the self-managed plan retires, and the participant's retirement begins, when the participant is eligible for retirement under the Article, and the Retirement System Reciprocal Act (Article 20 of the Code) if applicable, and the participant begins receiving retirement income from the participant's self-managed plan account.
LRB104 08928 RPS 18983 b
A BILL FOR
HB2378 LRB104 08928 RPS 18983 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Section 3 as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm, or corporation experienced in the handling of
claims which is fully qualified, financially sound, and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(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 or who meets the criteria

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for retirement, but in lieu of receiving an annuity under that
Article has elected to receive an accelerated pension benefit
payment under Section 14-147.5 of that Article), 15 (including
an employee who has retired under the optional retirement
program established under Section 15-158.2 or who meets the
criteria for retirement but in lieu of receiving an annuity
under that Article has elected to receive an accelerated
pension benefit payment under Section 15-185.5 of the
Article), paragraph (2), (3), or (5) of Section 16-106
(including an employee who meets the criteria for retirement,
but in lieu of receiving an annuity under that Article has
elected to receive an accelerated pension benefit payment
under Section 16-190.5 of the Illinois Pension Code), or
Article 18 of the Illinois Pension Code; (2) any person who was
receiving group insurance coverage under this Act as of March
31, 1978 by reason of his status as an annuitant, even though
the annuity in relation to which such coverage was provided is
a proportional annuity based on less than the minimum period
of service required for a retirement annuity in the system
involved; (3) any person not otherwise covered by this Act who
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; (4)
the spouse of any person who is receiving a retirement annuity
under Article 18 of the Illinois Pension Code and who is
covered under a group health insurance program sponsored by a

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governmental employer other than the State of Illinois and who
has irrevocably elected to waive his or her coverage under
this Act and to have his or her spouse considered as the
"annuitant" under this Act and not as a "dependent"; or (5) an
employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government, a qualified
rehabilitation facility, a qualified domestic violence shelter
or service, or a qualified child advocacy center. (For
definition of "retired employee", see subsection (p) post).
(b-5) (Blank).
(b-6) (Blank).
(b-7) (Blank).
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plans 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.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal, or other funds held
by the State Treasurer or the Department, to any person for

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

HB2378 - 5 - LRB104 08928 RPS 18983 b
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution, board,
commission, officer, court, or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16, and 18 of the Illinois Pension Code. "Department" also
includes the Illinois Comprehensive Health Insurance Board,
the Board of Examiners established under the Illinois Public
Accounting Act, and the Illinois Finance Authority.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any child
(1) from birth to age 26, including an adopted child, a child
who lives with the member from the time of the placement for
adoption until entry of an order of adoption, a stepchild or
adjudicated child, or a child who lives with the member if such
member is a court appointed guardian of the child or (2) age 19
or over who has a mental or physical disability from a cause
originating prior to the age of 19 (age 26 if enrolled as an
adult child dependent). For the health plan only, the term
"dependent" also includes (1) any person enrolled prior to the
effective date of this Section who is dependent upon the

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member to the extent that the member may claim such person as a
dependent for income tax deduction purposes and (2) any person
who has received after June 30, 2000 an organ transplant and
who is financially dependent upon the member and eligible to
be claimed as a dependent for income tax purposes. A member
requesting to cover any dependent must provide documentation
as requested by the Department of Central Management Services
and file with the Department any and all forms required by the
Department.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a member
has to elect enrollment in programs or to select benefits
without regard to age, sex, or health.
(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

HB2378 - 7 - LRB104 08928 RPS 18983 b
Treasurer, and (2) is employed full-time or part-time in a
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), paragraph (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 the Workers' Occupational
Diseases Disease Act as a result of injuries sustained or

HB2378 - 8 - LRB104 08928 RPS 18983 b
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under this Act and
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.
However, a person who satisfies the criteria of the foregoing
definition of "employee" except that such person is made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code is also an "employee" for the purposes
of this Act. "Employee" also includes any person receiving or
eligible for benefits under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Employee" also includes (i) each officer or employee in the
service of a qualified local government, including persons
appointed as trustees of sanitary districts regardless of
hours devoted to the service of the sanitary district, (ii)
each employee in the service of a qualified rehabilitation
facility, (iii) each full-time employee in the service of a
qualified domestic violence shelter or service, and (iv) each
full-time employee in the service of a qualified child
advocacy center, as determined according to rules promulgated
by the Director.
(l) "Member" means an employee, annuitant, retired
employee, or survivor. In the case of an annuitant or retired
employee who first becomes an annuitant or retired employee on

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or after January 13, 2012 (the effective date of Public Act
97-668), the individual must meet the minimum vesting
requirements of the applicable retirement system in order to
be eligible for group insurance benefits under that system. In
the case of a survivor who is not entitled to occupational
death benefits pursuant to an applicable retirement system or
death benefits pursuant to the Illinois Workers' Compensation
Act, and who first becomes a survivor on or after January 13,
2012 (the effective date of Public Act 97-668), the deceased
employee, annuitant, or retired employee upon whom the annuity
is based must have been eligible to participate in the group
insurance system under the applicable retirement system in
order for the survivor to be eligible for group insurance
benefits under that system.
In the case of a survivor who is entitled to occupational
death benefits pursuant to the deceased employee's applicable
retirement system or death benefits pursuant to the Illinois
Workers' Compensation Act, and first becomes a survivor on or
after January 1, 2022, the survivor is eligible for group
health insurance benefits regardless of the deceased
employee's minimum vesting requirements under the applicable
retirement system, with a State contribution rate of 100%,
until an unmarried child dependent reaches the age of 18, or
the age of 22 if the dependent child is a full-time student, or
until the adult survivor becomes eligible for benefits under
the federal Medicare health insurance program (Title XVIII of

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the Social Security Act, as added by Public Law 89-97). In the
case of a survivor currently receiving occupational death
benefits pursuant to the deceased employee's applicable
retirement system or has received death benefits pursuant to
the Illinois Workers' Compensation Act, who first became a
survivor prior to January 1, 2022, the survivor is eligible
for group health insurance benefits regardless of the deceased
employee's minimum vesting requirements under the applicable
retirement system, with a State contribution rate of 100%,
until an unmarried child dependent reaches the age of 18, or
the age of 22 if the dependent child is a full-time student, or
until the adult survivor becomes eligible for benefits under
the federal Medicare health insurance program (Title XVIII of
the Social Security Act, as added by Public Law 89-97). The
changes made by Public Act 102-714 this amendatory Act of the
102nd General Assembly with respect to survivors who first
became survivors prior to January 1, 2022 shall apply upon
request of the survivor on or after April 29, 2022 (the
effective date of Public Act 102-714) this amendatory Act of
the 102nd General Assembly.
(m) "Optional coverages or benefits" means those coverages
or benefits available to the member on his or her voluntary
election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits, and other employee benefits designed and contracted
for by the Director under this Act.

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(o) "Health plan" means a health benefits program offered
by the State of Illinois for persons eligible for the plan.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact that
such person retired prior to January 1, 1966. Such term also
includes any person formerly employed by the University of
Illinois in the Cooperative Extension Service who would be an
annuitant but for the fact that such person was made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such person
is made ineligible to participate in the State Universities
Retirement System by clause (4) of subsection (a) of Section
15-107 of the Illinois Pension Code; (2) the surviving
dependent of any person formerly employed by the University of
Illinois in the Cooperative Extension Service who would be an
annuitant except for the fact that such person was made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code; (3) the surviving dependent of a person
who was an annuitant under this Act by virtue of receiving an
alternative retirement cancellation payment under Section

HB2378 - 12 - LRB104 08928 RPS 18983 b
14-108.5 of the Illinois Pension Code; and (4) a person who
would be receiving an annuity as a survivor of an annuitant
except that the annuitant elected on or after June 4, 2018 to
receive an accelerated pension benefit payment under Section
14-147.5, 15-185.5, or 16-190.5 of the Illinois Pension Code
in lieu of receiving an annuity.
(q-2) "SERS" means the State Employees' Retirement System
of Illinois, created under Article 14 of the Illinois Pension
Code.
(q-3) "SURS" means the State Universities Retirement
System, created under Article 15 of the Illinois Pension Code.
(q-4) "TRS" means the Teachers' Retirement System of the
State of Illinois, created under Article 16 of the Illinois
Pension Code.
(q-5) (Blank).
(q-6) (Blank).
(q-7) (Blank).
(r) "Medical services" means the services provided within
the scope of their licenses by practitioners in all categories
licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district (including a
combination of school districts under the Intergovernmental
Cooperation Act), special district or other unit, designated
as a unit of local government by law, which exercises limited
governmental powers or powers in respect to limited

HB2378 - 13 - LRB104 08928 RPS 18983 b
governmental subjects, any not-for-profit association with a
membership that primarily includes townships and township
officials, that has duties that include provision of research
service, dissemination of information, and other acts for the
purpose of improving township government, and that is funded
wholly or partly in accordance with Section 85-15 of the
Township Code; 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
provide utility services and for the advancement of the goals
and purposes of its membership; the Southern Illinois
Collegiate Common Market, which is a consortium of higher
education institutions in Southern Illinois; the Illinois
Association of Park Districts; and any hospital provider that
is owned by a county that has 100 or fewer hospital beds and
has not already joined the program. "Qualified local
government" means a unit of local government approved by the
Director and participating in a program created under
subsection (i) of Section 10 of this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor to
the Department of Mental Health and Developmental

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Disabilities) to provide services to persons with disabilities
and which receives funds from the State of Illinois for
providing those services, approved by the Director and
participating in a program created under subsection (j) of
Section 10 of this Act.
(u) "Qualified domestic violence shelter or service" means
any Illinois domestic violence shelter or service and its
administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section; and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code or
would be receiving such monthly benefit or retirement
annuity except that the benefit recipient elected on or
after June 4, 2018 to receive an accelerated pension
benefit payment under Section 16-190.5 of the Illinois
Pension Code in lieu of receiving an annuity; and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years of
creditable service under Article 16 of the Illinois

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Pension Code or was enrolled in the health insurance
program offered under that Article on June 21, 1995 (the
effective date of Public Act 89-25), or (iv) is a
recipient or survivor of a recipient of a disability
benefit under Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
natural, step, adjudicated, or adopted child who is (i)
under age 26, (ii) was, on January 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 has a mental or physical
disability from a cause originating prior to the age of 19
(age 26 if enrolled as an adult child).
"TRS dependent beneficiary" does not include, as indicated
under paragraph (2) of this subsection (w), a dependent of the
survivor of a TRS benefit recipient who first becomes a
dependent of a survivor of a TRS benefit recipient on or after
January 13, 2012 (the effective date of Public Act 97-668)
unless that dependent would have been eligible for coverage as
a dependent of the deceased TRS benefit recipient upon whom
the survivor benefit is based.

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(x) "Military leave" refers to individuals in basic
training for reserves, special/advanced training, annual
training, emergency call up, activation by the President of
the United States, or any other training or duty in service to
the United States Armed Forces.
(y) (Blank).
(z) "Community college benefit recipient" means a person
who:
(1) is not a "member" as defined in this Section; and
(2) is receiving retirement income from a self-managed
plan account under Section 15-158.2 of the Illinois
Pension Code or is receiving a monthly survivor's annuity
or retirement annuity under Article 15 of the Illinois
Pension Code or would be receiving such monthly survivor's
annuity or retirement annuity except that the benefit
recipient elected on or after June 4, 2018 to receive an
accelerated pension benefit payment under Section 15-185.5
of the Illinois Pension Code in lieu of receiving an
annuity; 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

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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).
(aa) "Community college dependent beneficiary" means a
person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a community college benefit recipient's: (A)
spouse, (B) dependent parent who is receiving at least
half of his or her support from the community college
benefit recipient, or (C) natural, step, adjudicated, or
adopted child who is (i) under age 26, or (ii) age 19 or
over and has a mental or physical disability from a cause
originating prior to the age of 19 (age 26 if enrolled as
an adult child).
"Community college dependent beneficiary" does not
include, as indicated under paragraph (2) of this subsection
(aa), a dependent of the survivor of a community college
benefit recipient who first becomes a dependent of a survivor
of a community college benefit recipient on or after January
13, 2012 (the effective date of Public Act 97-668) unless that
dependent would have been eligible for coverage as a dependent
of the deceased community college benefit recipient upon whom

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the survivor annuity is based.
(bb) "Qualified child advocacy center" means any Illinois
child advocacy center and its administrative offices funded by
the Department of Children and Family Services, as defined by
the Children's Advocacy Center Act (55 ILCS 80/), approved by
the Director and participating in a program created under
subsection (n) of Section 10.
(cc) "Placement for adoption" means the assumption and
retention by a member of a legal obligation for total or
partial support of a child in anticipation of adoption of the
child. The child's placement with the member terminates upon
the termination of such legal obligation.
(Source: P.A. 101-242, eff. 8-9-19; 102-558, eff. 8-20-21;
102-714, eff. 4-29-22; 102-813, eff 5-13-22; revised 7-23-24.)
Section 10. The Illinois Pension Code is amended by
changing Section 15-132.2 as follows:
(40 ILCS 5/15-132.2)
Sec. 15-132.2. Retire and retirement. A participant
"retires", and his or her "retirement" begins, when his or her
annuity payment period begins. A participant in the
self-managed plan "retires", and the participant's
"retirement" begins, when the participant is eligible for
retirement under this Article, and Article 20 if applicable,
and the participant begins receiving retirement income from

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