215 ILCS 5/367j
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XX - Accident And Health Insurance

 (from Ch. 73, par. 979j)Sec. 367j.     Municipal employee's continuance privilege.(a) As used in this Section:(1) The term "creditable service" shall have the     meaning ascribed to it by Section 7-113 of the Illinois Pension Code.(2) The term "municipality" means any municipality,     instrumentality, or participating instrumentality (as those terms are defined in Sections 7-105, 7-107 and 7-108, respectively, of the Illinois Pension Code) that participates in the Illinois Municipal Retirement Fund pursuant to Section 7-132 of the Illinois Pension Code.(3) The term "employee" shall mean an employee as     defined in Section 7-109 of the Illinois Pension Code, but does not include any person who is a deputy as defined in Section 367h of this Code.(4) The "retirement or disability period" of an     employee means the period:(A) which begins on the day the employee is         removed from the municipality payroll because of the occurrence of either of the following events:  (i) the employee retires from active service as an employee with an attained age and accumulated creditable service which together qualify the employee for immediate receipt of retirement pension benefits under Article 7 of the Illinois Pension Code, or (ii) the employee's disability is established under Article 7 of the Illinois Pension Code; and(B) which ends on the first to occur of any of         the following events: (i) the employee's reinstatement or reentry into active service as provided for under Article 7 of the Illinois Pension Code, (ii) the employee's exercise of any refund option or acceptance of any separation benefit available under Article 7 of the Illinois Pension Code, (iii) the employee's loss pursuant to Section 7-219 of the Illinois Pension Code of any benefits provided for in Article 7 of that Code, or (iv) the employee's death or, if at the time of the employee's death the employee is survived by a spouse who, in that capacity, is entitled to receive a surviving spouse's monthly pension pursuant to Article 7 of the Illinois Pension Code, the death or remarriage of that spouse.(b) No policy of group accident and health insurance under which  employees of a municipality are insured for their individual benefit shall  be issued or delivered in this State to a municipality unless such group  policy provides for the election of continued group insurance coverage for  the retirement or disability period of each employee who is insured under  the provisions of the group policy on the day immediately preceding the day  on which the retirement or disability period of such employee begins.  So  long as any required premiums for continued group insurance coverage are  paid in accordance with the provisions of the group policy, an election  made pursuant to this Section shall provide continued group insurance  coverage for an employee throughout the retirement or disability period of  the employee and, unless the employee otherwise elects and subject to any  other provisions of the group policy which relate either to the provision  or to the termination of dependents' coverage and which are not  inconsistent with this Section, for any dependents of the employee who are  insured under the group policy on the day immediately preceding the day on  which the retirement or disability period of the employee begins; provided,  however, that when such continued group insurance coverage is in effect  with respect to an employee on the date of the employee's death but the  retirement or disability period of the employee does not end with the  employee's death, then the deceased employee's surviving spouse upon whose  death or remarriage such retirement or disability period will end shall be  entitled, without further election and upon payment of any required  premiums in accordance with the provisions of the group policy, to maintain  such continued group insurance coverage in effect until the end of the  retirement or disability period.  Continued group insurance coverage shall  be provided in accordance with this Section at the same premium rate from  time to time charged for equivalent coverage provided under the group  policy with respect to covered employees whose retirement or disability  period has not begun, and no distinction or discrimination in the amount or  rate of premiums or in any waiver of premium or other benefit provision  shall be made between continued group insurance coverage elected pursuant  to this Section and equivalent coverage provided to employees under the  group policy other than pursuant to the provisions of this Section;  provided that no municipality shall be required by reason of any provision  of this Section to pay any group insurance premium other than one that may  be negotiated in a collective bargaining agreement. If the group policy  provides for a reduction in benefits and premium for insureds who become  eligible for medicare, such provision shall apply to persons electing  continued coverage under this Section.Within 15 days of the beginning of the retirement or disability period of  any employee entitled to elect continued group insurance coverage under any  group policy affected by this Section, the municipality last employing such  employee shall give written notice of such beginning by certified mail,  return receipt requested, to the insurance company issuing such policy.  The notice shall include the employee's name and last known place of  residence and the beginning date of the employee's retirement or disability  period.Within 15 days of the date of receipt of such notice from the municipality,  the insurance company by certified mail, return receipt requested, shall  give written notice to the employee at the employee's last known place of  residence that coverage under the group policy may be continued for the  retirement or disability period of the employee as provided in this  Section.  Such notice shall set forth:  (i) a statement of election to be  filed by the employee if the employee wishes to continue such group  insurance coverage, (ii) the amount of monthly premium, including a  statement of the portion of such monthly premium attributable to any  dependents' coverage which the employee may elect, and (iii) instructions  as to the return of the election form to the insurance company issuing such  policy.  Election shall be made, if at all, by returning the statement of  election to the insurance company by certified mail, return receipt  requested, within 15 days after having received it.If the employee elects to continue coverage, it shall be the obligation  of the employee to pay the monthly premium directly to the municipality  which shall forward it to the insurance company issuing the group insurance  policy, or as otherwise directed by the insurance company; provided,  however, that the employee shall be entitled to designate on the statement  of election required to be filed with the insurance company that the total  monthly premium, or such portion thereof as is not contributed by a  municipality, be deducted by the Illinois Municipal Retirement Fund from  the monthly pension payment otherwise payable to or on behalf of the  employee pursuant to Article 7 of the Illinois Pension Code, and be  remitted by such Fund to the insurance company.  The portion, if any, of  the monthly premium contributed by a municipality for such continued group  insurance coverage shall be paid by the municipality directly to the  insurance company issuing the group insurance policy, or as directed by the  insurance company.  Such continued group insurance coverage shall relate  back to the beginning of the employee's retirement or disability period.The amendment, renewal or extension of any group insurance policy affected  by this Section shall be deemed to be the issuance of a new policy of insurance  for purposes of this Section.(c) In the event that a municipality makes a program of accident,  health, hospital or medical benefits available to its employees through  self-insurance, or by participation in a pool or reciprocal insurer, or by  contract in a form other than a policy of group insurance with one or more  medical service plans, health care service corporations, health maintenance  organizations, or any other professional corporations or plans under which  health care or reimbursement for the costs thereof is provided, whether the  cost of such benefits is borne by the municipality or the employees or  both, such employees and their surviving spouses shall have the same  right to elect continued coverage under such program of benefits  as they would have if such benefits were provided by a policy of group  accident and health insurance.  In such cases, the notice of right to elect  continued coverage shall be sent by the municipality; the statement of  election shall be sent to the municipality; and references to the required  premium shall refer to that portion of the cost of such benefits which is not  borne by the municipality, either voluntarily or pursuant to the provisions  of a collective bargaining agreement.  In the case of a municipality  providing such benefits through self-insurance or participation in a pool or  reciprocal insurer, the right to elect continued coverage which is provided  by this paragraph shall be implemented and made available to the employees  of the municipality and qualifying surviving spouses not later than July 1,  1991.The amendment, renewal or extension of any such contract in a form other  than a policy of group insurance policy shall be deemed the formation of a  new contract for the purposes of this Section.(d) This Section shall not limit the exercise of any conversion  privileges available under Section 367e.    (Source: P.A. 86-1444; 87-435.)