IL HB4972

Amends the State Employees Group Insurance Act of 1971 to transfer administration of the Teachers' Retirement System (TRS) health benefits program from the TRS Board of Trustees to the Department of Central Management Services, effective January 1, 1996.

Establishes the Teacher Health Insurance Security Fund as a nonappropriated trust fund held outside the State Treasury to receive all revenues from TRS health benefit programs and pay program costs and administrative expenses.

Sets premium rate limitations: FY 1996 premium equals FY 1995 rates; FY 2003-2007 have specified growth caps (110%-109.1%); FY 2008 and later capped at 105% annually of the previous year's rate.

Establishes cost-sharing structure where the Teacher Health Insurance Security Fund pays 50%-75% of managed care or major medical premiums for TRS benefit recipients depending on plan type and Medicare eligibility, with recipients paying the remainder through annuity deductions.

Creates a 10-member Teacher Retirement Insurance Program Committee appointed by the Governor to meet at least quarterly and make recommendations on program issues and funding adjustments if the Fund experiences deficit balances.