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Full Text of HB4396
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HB4396 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4396
Introduced 1/14/2026, by Rep. Stephanie A. Kifowit
SYNOPSIS AS INTRODUCED:
40 ILCS 5/17-142.1
from Ch. 108 1/2, par. 17-142.1
Amends the Chicago Teacher Article of Illinois Pension Code. Provides
that the total payments under a provision concerning the Board providing
partial reimbursement of health insurance costs may not exceed
$100,000,000 (instead of $65,000,000) in any year. Provides that the
amount shall annually thereafter be increased by the annual unadjusted
percentage increase (but not less than zero) in the consumer price index
for the 12 months ending with the September preceding each November 1,
including all previous adjustments. Defines "consumer price index".
LRB104 18083 RPS 31522 b
A BILL FOR
HB4396
LRB104 18083 RPS 31522 b
1
AN ACT concerning public employee benefits.
2
Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:
4
Section 5.
The Illinois Pension Code is amended by
5
changing Section 17-142.1 as follows:
6
(40 ILCS 5/17-142.1)
(from Ch. 108 1/2, par. 17-142.1)
7
Sec. 17-142.1.
To defray health insurance costs. To
8
provide for the partial reimbursement of health insurance
9
costs.
10
(1) On the first day of September of each year, beginning
11
in 1988, the Board may, by separate warrant, pay to each
12
recipient of a service retirement, disability retirement or
13
survivor's pension an amount to be determined by the Board,
14
which shall represent partial reimbursement for the cost of
15
the recipient's health insurance coverage.
16
(2) In lieu of the annual payment authorized in
17
subdivision (1), for pensioners enrolled in the Fund's regular
18
health care deduction plans, the Fund may pay the health
19
insurance premium reimbursement on a monthly rather than
20
annual basis, at the percentage rate established from time to
21
time by the Board. If the Board so directs, these monthly
22
payments may be made in the form of a direct payment of premium
23
and a reduction in the amount deducted from the annuity,
HB4396
- 2 -
LRB104 18083 RPS 31522 b
1
rather than in the form of reimbursement by separate warrant.
2
(3) Total payments under this Section in any year may not
3
exceed
$100,000,000
$65,000,000
plus any amount that was
4
authorized to be paid under this Section in the preceding year
5
but was not actually paid by the Board, including any interest
6
earned thereon.
However, that amount shall annually thereafter
7
be increased by the annual unadjusted percentage increase (but
8
not less than zero) in the consumer price index for the 12
9
months ending with the September preceding each November 1,
10
including all previous adjustments.
11
For the purposes of this Section, "consumer price index"
12
means the index published by the Bureau of Labor Statistics of
13
the United States Department of Labor that measures the
14
average change in prices of goods and services purchased by
15
All Urban Consumers (CPI-U), Medical Care in
16
Chicago-Naperville-Elgin, IL-IN-WI. The new amount resulting
17
from each annual adjustment shall be determined by the Public
18
Pension Division of the Department of Insurance and made
19
available to the boards of the retirement systems and pension
20
funds by November 1 of each year.
21
(4) The total amount of payments under this Section in any
22
year may not exceed 75% of the total cost of health insurance
23
coverage in that year for all the recipients who receive
24
payments authorized by this Section in that year.
25
(Source: P.A. 93-677, eff. 6-28-04.)
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