HB5137 EngrossedLRB100 20023 RPS 35305 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 Illinois Pension Code is amended by changing
5Sections 15-198 and 16-203 and by adding Sections 15-202 and
616-204 as follows:
 
7    (40 ILCS 5/15-198)
8    Sec. 15-198. Application and expiration of new benefit
9increases.
10    (a) As used in this Section, "new benefit increase" means
11an increase in the amount of any benefit provided under this
12Article, or an expansion of the conditions of eligibility for
13any benefit under this Article, that results from an amendment
14to this Code that takes effect after the effective date of this
15amendatory Act of the 94th General Assembly. "New benefit
16increase", however, does not include any benefit increase
17resulting from the changes made to Article 1 or this Article by
18Public Act 100-23 or this amendatory Act of the 100th General
19Assembly this amendatory Act of the 100th General Assembly.
20    (b) Notwithstanding any other provision of this Code or any
21subsequent amendment to this Code, every new benefit increase
22is subject to this Section and shall be deemed to be granted
23only in conformance with and contingent upon compliance with

 

 

HB5137 Engrossed- 2 -LRB100 20023 RPS 35305 b

1the provisions of this Section.
2    (c) The Public Act enacting a new benefit increase must
3identify and provide for payment to the System of additional
4funding at least sufficient to fund the resulting annual
5increase in cost to the System as it accrues.
6    Every new benefit increase is contingent upon the General
7Assembly providing the additional funding required under this
8subsection. The Commission on Government Forecasting and
9Accountability shall analyze whether adequate additional
10funding has been provided for the new benefit increase and
11shall report its analysis to the Public Pension Division of the
12Department of Insurance. A new benefit increase created by a
13Public Act that does not include the additional funding
14required under this subsection is null and void. If the Public
15Pension Division determines that the additional funding
16provided for a new benefit increase under this subsection is or
17has become inadequate, it may so certify to the Governor and
18the State Comptroller and, in the absence of corrective action
19by the General Assembly, the new benefit increase shall expire
20at the end of the fiscal year in which the certification is
21made.
22    (d) Every new benefit increase shall expire 5 years after
23its effective date or on such earlier date as may be specified
24in the language enacting the new benefit increase or provided
25under subsection (c). This does not prevent the General
26Assembly from extending or re-creating a new benefit increase

 

 

HB5137 Engrossed- 3 -LRB100 20023 RPS 35305 b

1by law.
2    (e) Except as otherwise provided in the language creating
3the new benefit increase, a new benefit increase that expires
4under this Section continues to apply to persons who applied
5and qualified for the affected benefit while the new benefit
6increase was in effect and to the affected beneficiaries and
7alternate payees of such persons, but does not apply to any
8other person, including without limitation a person who
9continues in service after the expiration date and did not
10apply and qualify for the affected benefit while the new
11benefit increase was in effect.
12(Source: P.A. 100-23, eff. 7-6-17.)
 
13    (40 ILCS 5/15-202 new)
14    Sec. 15-202. Optional defined contribution benefit. As
15soon as practicable after the effective date of this amendatory
16Act of the 100th General Assembly, the System shall offer a
17defined contribution benefit to active members of the System.
18The defined contribution benefit shall be an optional benefit
19to any member who chooses to participate. The defined
20contribution benefit shall collect optional employee and
21optional employer contributions into an account and shall offer
22investment options to the participant. The benefit under this
23Section shall be operated in full compliance with any
24applicable State and federal laws, and the System shall utilize
25generally accepted practices in creating and maintaining the

 

 

HB5137 Engrossed- 4 -LRB100 20023 RPS 35305 b

1benefit for the best interest of the participants. The System
2may use funds from the employee and employer contributions to
3defray any and all costs of creating and maintaining the
4benefit. The System shall produce an annual report on the
5participation in the benefit and shall make the report public.
 
6    (40 ILCS 5/16-203)
7    Sec. 16-203. Application and expiration of new benefit
8increases.
9    (a) As used in this Section, "new benefit increase" means
10an increase in the amount of any benefit provided under this
11Article, or an expansion of the conditions of eligibility for
12any benefit under this Article, that results from an amendment
13to this Code that takes effect after June 1, 2005 (the
14effective date of Public Act 94-4). "New benefit increase",
15however, does not include any benefit increase resulting from
16the changes made to Article 1 or this Article by Public Act
1795-910, Public Act 100-23, or this amendatory Act of the 100th
18General Assembly or this amendatory Act of the 100th General
19Assembly.
20    (b) Notwithstanding any other provision of this Code or any
21subsequent amendment to this Code, every new benefit increase
22is subject to this Section and shall be deemed to be granted
23only in conformance with and contingent upon compliance with
24the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

HB5137 Engrossed- 5 -LRB100 20023 RPS 35305 b

1identify and provide for payment to the System of additional
2funding at least sufficient to fund the resulting annual
3increase in cost to the System as it accrues.
4    Every new benefit increase is contingent upon the General
5Assembly providing the additional funding required under this
6subsection. The Commission on Government Forecasting and
7Accountability shall analyze whether adequate additional
8funding has been provided for the new benefit increase and
9shall report its analysis to the Public Pension Division of the
10Department of Insurance. A new benefit increase created by a
11Public Act that does not include the additional funding
12required under this subsection is null and void. If the Public
13Pension Division determines that the additional funding
14provided for a new benefit increase under this subsection is or
15has become inadequate, it may so certify to the Governor and
16the State Comptroller and, in the absence of corrective action
17by the General Assembly, the new benefit increase shall expire
18at the end of the fiscal year in which the certification is
19made.
20    (d) Every new benefit increase shall expire 5 years after
21its effective date or on such earlier date as may be specified
22in the language enacting the new benefit increase or provided
23under subsection (c). This does not prevent the General
24Assembly from extending or re-creating a new benefit increase
25by law.
26    (e) Except as otherwise provided in the language creating

 

 

HB5137 Engrossed- 6 -LRB100 20023 RPS 35305 b

1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including without limitation a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 100-23, eff. 7-6-17.)
 
11    (40 ILCS 5/16-204 new)
12    Sec. 16-204. Optional defined contribution benefit. As
13soon as practicable after the effective date of this amendatory
14Act of the 100th General Assembly, the System shall offer a
15defined contribution benefit to active members of the System.
16The defined contribution benefit shall be an optional benefit
17to any member who chooses to participate. The defined
18contribution benefit shall collect optional employee and
19optional employer contributions into an account and shall offer
20investment options to the participant. The benefit under this
21Section shall be operated in full compliance with any
22applicable State and federal laws, and the System shall utilize
23generally accepted practices in creating and maintaining the
24benefit for the best interest of the participants. The System
25may use funds from the employee and employer contributions to

 

 

HB5137 Engrossed- 7 -LRB100 20023 RPS 35305 b

1defray any and all costs of creating and maintaining the
2benefit. The System shall produce an annual report on the
3participation in the benefit and shall make the report public.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.