100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1763

 

Introduced 2/9/2017, by Sen. William E. Brady - Neil Anderson - Tom Rooney - Sue Rezin, Paul Schimpf, et al.

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the General Assembly Article of the Illinois Pension Code. Requires active Tier 1 employees to elect either to (i) have automatic annual increases in retirement annuity and survivor's annuity delayed and reduced or (ii) maintain the current benefit package with additional limitations on pensionable salary. Provides that a Tier 1 employee who elects item (i) is entitled to have future increases in income treated as pensionable income, have contributions reduced to a specified rate, and receive a consideration payment of 10% of contributions made prior to the election. Provides that a Tier 1 employee who elects item (ii) is not eligible to have future increases in income treated as pensionable income. Makes funding changes and requires recertification of State contributions for fiscal years 2018 and 2019. Establishes a voluntary defined contribution plan for certain eligible Tier 1 participants and repeals provisions concerning the defined contribution plan added by Public Act 98-599, which has been held unconstitutional. Makes conforming changes in the Retirement Systems Reciprocal Act (Article 20 of the Code). Restricts participation in the System to persons who became participants before the effective date. Amends the State Pension Funds Continuing Appropriation Act to provide a continuing appropriation for the amounts of the consideration payments. Effective immediately.


LRB100 11311 RPS 21675 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1763LRB100 11311 RPS 21675 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 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124, 2-126,
62-134, 2-162, 20-121, 20-123, 20-124, and 20-125 and by adding
7Sections 2-105.3, 2-107.9, 2-107.10, 2-110.3, 2-165.1, and
82-166.1 as follows:
 
9    (40 ILCS 5/2-101)  (from Ch. 108 1/2, par. 2-101)
10    Sec. 2-101. Creation of system. A retirement system is
11created to provide retirement annuities, survivor's annuities
12and other benefits for certain members of the General Assembly,
13certain elected state officials, and their beneficiaries.
14    The system shall be known as the "General Assembly
15Retirement System". All its funds and property shall be a trust
16separate from all other entities, maintained for the purpose of
17securing payment of annuities and benefits under this Article.
18    Participation in the retirement system created under this
19Article is restricted to persons who became participants before
20the effective date of this amendatory Act of the 100th General
21Assembly. Beginning on that date, the System shall not accept
22any new participants.
23(Source: P.A. 83-1440.)
 

 

 

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1    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
2    Sec. 2-105. Member. "Member": Members of the General
3Assembly of this State, including persons who enter military
4service while a member of the General Assembly, and any person
5serving as Governor, Lieutenant Governor, Secretary of State,
6Treasurer, Comptroller, or Attorney General for the period of
7service in such office.
8    Any person who has served for 10 or more years as Clerk or
9Assistant Clerk of the House of Representatives, Secretary or
10Assistant Secretary of the Senate, or any combination thereof,
11may elect to become a member of this system while thenceforth
12engaged in such service by filing a written election with the
13board. Any person so electing shall be deemed an active member
14of the General Assembly for the purpose of validating and
15transferring any service credits earned under any of the funds
16and systems established under Articles 3 through 18 of this
17Code.
18    However, notwithstanding any other provision of this
19Article, a person shall not be deemed a member for the purposes
20of this Article unless he or she became a participant of the
21System before the effective date of this amendatory Act of the
22100th General Assembly.
23(Source: P.A. 85-1008.)
 
24    (40 ILCS 5/2-105.3 new)

 

 

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1    Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A
2participant who first became a participant before January 1,
32011.
 
4    (40 ILCS 5/2-107)  (from Ch. 108 1/2, par. 2-107)
5    Sec. 2-107. Participant. "Participant": Any member who
6elects to participate; and any former member who elects to
7continue participation under Section 2-117.1, for the duration
8of such continued participation. However, notwithstanding any
9other provision of this Article, a person shall not be deemed a
10participant for the purposes of this Article unless he or she
11became a participant of the System before the effective date of
12this amendatory Act of the 100th General Assembly.
13(Source: P.A. 86-1488.)
 
14    (40 ILCS 5/2-107.9 new)
15    Sec. 2-107.9. Future increase in income. "Future increase
16in income" means an increase to a Tier 1 employee's base pay
17that is offered to the Tier 1 employee for service under this
18Article after June 30, 2018 that qualifies as "salary", as
19defined in Section 2-108, or would qualify as "salary" but for
20the fact that it was offered to and accepted by the Tier 1
21employee under the condition set forth in subsection (c) of
22Section 2-110.3.
 
23    (40 ILCS 5/2-107.10 new)

 

 

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1    Sec. 2-107.10. Base pay. As used in Section 2-107.9 of
2this Code, "base pay" means the Tier 1 employee's annualized
3rate of salary as of June 30, 2018. For a person returning to
4active service as a Tier 1 employee after June 30, 2018,
5however, "base pay" means the employee's annualized rate of
6salary as of the employee's last date of service prior to July
71, 2018. The System shall calculate the base pay of each Tier 1
8employee pursuant to this Section.
 
9    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
10    (Text of Section WITHOUT the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 2-108. Salary. "Salary":
13    (1) For members of the General Assembly, the total
14compensation paid to the member by the State for one year of
15service, including the additional amounts, if any, paid to the
16member as an officer pursuant to Section 1 of "An Act in
17relation to the compensation and emoluments of the members of
18the General Assembly", approved December 6, 1907, as now or
19hereafter amended.
20    (2) For the State executive officers specified in Section
212-105, the total compensation paid to the member for one year
22of service.
23    (3) For members of the System who are participants under
24Section 2-117.1, or who are serving as Clerk or Assistant Clerk
25of the House of Representatives or Secretary or Assistant

 

 

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1Secretary of the Senate, the total compensation paid to the
2member for one year of service, but not to exceed the salary of
3the highest salaried officer of the General Assembly.
4    However, in the event that federal law results in any
5participant receiving imputed income based on the value of
6group term life insurance provided by the State, such imputed
7income shall not be included in salary for the purposes of this
8Article.
9    Notwithstanding any other provision of this Section,
10"salary" does not include any future increase in income that is
11offered for service to a Tier 1 employee under this Article
12pursuant to the condition set forth in subsection (c) of
13Section 2-110.3 and accepted under that condition by a Tier 1
14employee who has made the election under paragraph (2) of
15subsection (a) of Section 2-110.3.
16    Notwithstanding any other provision of this Section,
17"salary" does not include any consideration payment made to a
18Tier 1 employee.
19(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
20    (40 ILCS 5/2-110.3 new)
21    Sec. 2-110.3. Election by Tier 1 employees.
22    (a) Each active Tier 1 employee shall make an irrevocable
23election either:
24        (1) to agree to delay his or her eligibility for
25    automatic annual increases in retirement annuity as

 

 

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1    provided in subsection (a-1) of Section 2-119.1 and to have
2    the amount of the automatic annual increases in his or her
3    retirement annuity and survivor's annuity that are
4    otherwise provided for in this Article calculated,
5    instead, as provided in subsection (a-1) of Section
6    2-119.1; or
7        (2) to not agree to paragraph (1) of this subsection.
8    The election required under this subsection (a) shall be
9made by each active Tier 1 employee no earlier than January 1,
102018 and no later than March 31, 2018, except that a person who
11returns to active service as a Tier 1 employee under this
12Article on or after January 1, 2018 and has not yet made an
13election under this Section must make the election under this
14subsection (a) within 60 days after returning to active service
15as a Tier 1 employee.
16    If a Tier 1 employee fails for any reason to make a
17required election under this subsection within the time
18specified, then the employee shall be deemed to have made the
19election under paragraph (2) of this subsection.
20    (a-5) If this Section is enjoined or stayed by an Illinois
21court or a court of competent jurisdiction pending the entry of
22a final and unappealable decision, and this Section is
23determined to be constitutional or otherwise valid by a final
24unappealable decision of an Illinois court or a court of
25competent jurisdiction, then the election procedure set forth
26in subsection (a) of this Section shall commence on the 180th

 

 

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1calendar day after the date of the issuance of the final
2unappealable decision and shall conclude at the end of the
3270th calendar day after that date.
4    (a-10) All elections under subsection (a) that are made or
5deemed to be made before July 1, 2018 shall take effect on July
61, 2018. Elections that are made or deemed to be made on or
7after July 1, 2018 shall take effect on the first day of the
8month following the month in which the election is made or
9deemed to be made.
10    (b) As adequate and legal consideration provided under this
11amendatory Act of the 100th General Assembly for making an
12election under paragraph (1) of subsection (a) of this Section,
13the State of Illinois shall be expressly and irrevocably
14prohibited from offering any future increases in income to a
15Tier 1 employee who has made an election under paragraph (1) of
16subsection (a) of this Section on the condition of not
17constituting salary under Section 2-108.
18    As adequate and legal consideration provided under this
19amendatory Act of the 100th General Assembly for making an
20election under paragraph (1) of subsection (a) of this Section,
21each Tier 1 employee who has made an election under paragraph
22(1) of subsection (a) of this Section shall receive a
23consideration payment equal to 10% of the contributions made by
24or on behalf of the employee under Section 2-126 before the
25effective date of that election. The State Comptroller shall
26pay the consideration payment to the Tier 1 employee out of

 

 

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1funds appropriated for that purpose under Section 1.9 of the
2State Pension Funds Continuing Appropriation Act. The System
3shall calculate the amount of each consideration payment and,
4by July 1, 2018, shall certify to the State Comptroller the
5amount of the consideration payment, together with the name,
6address, and any other available payment information of the
7Tier 1 employee as found in the records of the System. The
8System shall make additional calculations and certifications
9of consideration payments to the State Comptroller as the
10System deems necessary.
11    (c) A Tier 1 employee who makes the election under
12paragraph (2) of subsection (a) of this Section shall not be
13subject to paragraph (1) of subsection (a) of this Section.
14However, each future increase in income offered for service as
15a member under this Article to a Tier 1 employee who has made
16the election under paragraph (2) of subsection (a) of this
17Section shall be offered expressly and irrevocably on the
18condition of not constituting salary under Section 2-108 and
19that the Tier 1 employee's acceptance of the offered future
20increase in income shall constitute his or her agreement to
21that condition.
22    (d) The System shall make a good faith effort to contact
23each Tier 1 employee subject to this Section. The System shall
24mail information describing the required election to each Tier
251 employee by United States Postal Service mail to his or her
26last known address on file with the System. If the Tier 1

 

 

SB1763- 9 -LRB100 11311 RPS 21675 b

1employee is not responsive to other means of contact, it is
2sufficient for the System to publish the details of any
3required elections on its website or to publish those details
4in a regularly published newsletter or other existing public
5forum.
6    Tier 1 employees who are subject to this Section shall be
7provided with an election packet containing information
8regarding their options, as well as the forms necessary to make
9the required election. Upon request, the System shall offer
10Tier 1 employees an opportunity to receive information from the
11System before making the required election. The information may
12be provided through video materials, group presentations,
13individual consultation with a member or authorized
14representative of the System in person or by telephone or other
15electronic means, or any combination of those methods. The
16System shall not provide advice or counseling with respect to
17which election a Tier 1 employee should make or specific to the
18legal or tax circumstances of or consequences to the Tier 1
19employee.
20    The System shall inform Tier 1 employees in the election
21packet required under this subsection that the Tier 1 employee
22may also wish to obtain information and counsel relating to the
23election required under this Section from any other available
24source, including, but not limited to, labor organizations and
25private counsel.
26    In no event shall the System, its staff, or the Board be

 

 

SB1763- 10 -LRB100 11311 RPS 21675 b

1held liable for any information given to a member regarding the
2elections under this Section. The System shall coordinate with
3the Illinois Department of Central Management Services and each
4other retirement system administering an election in
5accordance with this amendatory Act of the 100th General
6Assembly to provide information concerning the impact of the
7election set forth in this Section.
8    (e) Notwithstanding any other provision of law, each future
9increase in income offered by the State of Illinois for service
10as a member must be offered expressly and irrevocably on the
11condition of not constituting "salary" under Section 2-108 to
12any Tier 1 employee who has made an election under paragraph
13(2) of subsection (a) of this Section. The offer shall also
14provide that the Tier 1 employee's acceptance of the offered
15future increase in income shall constitute his or her agreement
16to the condition set forth in this subsection.
17    For purposes of legislative intent, the condition set forth
18in this subsection shall be construed in a manner that ensures
19that the condition is not violated or circumvented through any
20contrivance of any kind.
21    (f) A member's election under this Section is not a
22prohibited election under subdivision (j)(1) of Section 1-119
23of this Code.
24    (g) No provision of this Section shall be interpreted in a
25way that would cause the System to cease to be a qualified plan
26under Section 401(a) of the Internal Revenue Code of 1986. The

 

 

SB1763- 11 -LRB100 11311 RPS 21675 b

1provisions of this Section shall be subject to and implemented
2in a manner that complies with Section 11 of Article IV of the
3Illinois Constitution.
4    (h) If an election created by this amendatory Act in any
5other Article of this Code or any change deriving from that
6election is determined to be unconstitutional or otherwise
7invalid by a final unappealable decision of an Illinois court
8or a court of competent jurisdiction, the invalidity of that
9provision shall not in any way affect the validity of this
10Section or the changes deriving from the election required
11under this Section.
 
12    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
13    (Text of Section WITHOUT the changes made by P.A. 98-599,
14which has been held unconstitutional)
15    Sec. 2-119.1. Automatic increase in retirement annuity.
16    (a) Except as provided in subsection (a-1), a A participant
17who retires after June 30, 1967, and who has not received an
18initial increase under this Section before the effective date
19of this amendatory Act of 1991, shall, in January or July next
20following the first anniversary of retirement, whichever
21occurs first, and in the same month of each year thereafter,
22but in no event prior to age 60, have the amount of the
23originally granted retirement annuity increased as follows:
24for each year through 1971, 1 1/2%; for each year from 1972
25through 1979, 2%; and for 1980 and each year thereafter, 3%.

 

 

SB1763- 12 -LRB100 11311 RPS 21675 b

1Annuitants who have received an initial increase under this
2subsection prior to the effective date of this amendatory Act
3of 1991 shall continue to receive their annual increases in the
4same month as the initial increase.
5    (a-1) Notwithstanding any other provision of this Article,
6for a Tier 1 employee who made the election under paragraph (1)
7of subsection (a) of Section 2-110.3:
8        (1) The initial increase in retirement annuity under
9    this Section shall occur on the January 1 occurring either
10    on or after the attainment of age 67 or the fifth
11    anniversary of the annuity start date, whichever is
12    earlier.
13        (2) The amount of each automatic annual increase in
14    retirement annuity or survivor's annuity occurring on or
15    after the effective date of that election shall be
16    calculated as a percentage of the originally granted
17    retirement annuity or survivor's annuity, equal to 3% or
18    one-half the annual unadjusted percentage increase (but
19    not less than zero) in the consumer price index-u for the
20    12 months ending with the September preceding each November
21    1, whichever is less. If the annual unadjusted percentage
22    change in the consumer price index-u for the 12 months
23    ending with the September preceding each November 1 is zero
24    or there is a decrease, then the annuity shall not be
25    increased.
26    For the purposes of this Section, "consumer price index-u"

 

 

SB1763- 13 -LRB100 11311 RPS 21675 b

1means the index published by the Bureau of Labor Statistics of
2the United States Department of Labor that measures the average
3change in prices of goods and services purchased by all urban
4consumers, United States city average, all items, 1982-84 =
5100. The new amount resulting from each annual adjustment shall
6be determined by the Public Pension Division of the Department
7of Insurance and made available to the board of the retirement
8system by November 1 of each year.
9    (b) Beginning January 1, 1990, for eligible participants
10who remain in service after attaining 20 years of creditable
11service, the 3% increases provided under subsection (a) shall
12begin to accrue on the January 1 next following the date upon
13which the participant (1) attains age 55, or (2) attains 20
14years of creditable service, whichever occurs later, and shall
15continue to accrue while the participant remains in service;
16such increases shall become payable on January 1 or July 1,
17whichever occurs first, next following the first anniversary of
18retirement. For any person who has service credit in the System
19for the entire period from January 15, 1969 through December
2031, 1992, regardless of the date of termination of service, the
21reference to age 55 in clause (1) of this subsection (b) shall
22be deemed to mean age 50.
23    This subsection (b) does not apply to any person who first
24becomes a member of the System after August 8, 2003 (the
25effective date of Public Act 93-494) this amendatory Act of the
2693rd General Assembly.

 

 

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1    (b-5) Notwithstanding any other provision of this Article,
2a participant who first becomes a participant on or after
3January 1, 2011 (the effective date of Public Act 96-889)
4shall, in January or July next following the first anniversary
5of retirement, whichever occurs first, and in the same month of
6each year thereafter, but in no event prior to age 67, have the
7amount of the retirement annuity then being paid increased by
83% or the annual unadjusted percentage increase in the Consumer
9Price Index for All Urban Consumers as determined by the Public
10Pension Division of the Department of Insurance under
11subsection (a) of Section 2-108.1, whichever is less.
12    (c) The foregoing provisions relating to automatic
13increases are not applicable to a participant who retires
14before having made contributions (at the rate prescribed in
15Section 2-126) for automatic increases for less than the
16equivalent of one full year. However, in order to be eligible
17for the automatic increases, such a participant may make
18arrangements to pay to the system the amount required to bring
19the total contributions for the automatic increase to the
20equivalent of one year's contributions based upon his or her
21last salary.
22    (d) A participant who terminated service prior to July 1,
231967, with at least 14 years of service is entitled to an
24increase in retirement annuity beginning January, 1976, and to
25additional increases in January of each year thereafter.
26    The initial increase shall be 1 1/2% of the originally

 

 

SB1763- 15 -LRB100 11311 RPS 21675 b

1granted retirement annuity multiplied by the number of full
2years that the annuitant was in receipt of such annuity prior
3to January 1, 1972, plus 2% of the originally granted
4retirement annuity for each year after that date. The
5subsequent annual increases shall be at the rate of 2% of the
6originally granted retirement annuity for each year through
71979 and at the rate of 3% for 1980 and thereafter.
8    (e) Beginning January 1, 1990, and except as provided in
9subsection (a-1), all automatic annual increases payable under
10this Section shall be calculated as a percentage of the total
11annuity payable at the time of the increase, including previous
12increases granted under this Article.
13(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
14    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
15    (Text of Section WITHOUT the changes made by P.A. 98-599,
16which has been held unconstitutional)
17    Sec. 2-124. Contributions by State.
18    (a) The State shall make contributions to the System by
19appropriations of amounts which, together with the
20contributions of participants, interest earned on investments,
21and other income will meet the cost of maintaining and
22administering the System on a 90% funded basis in accordance
23with actuarial recommendations.
24    (b) The Board shall determine the amount of State
25contributions required for each fiscal year on the basis of the

 

 

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1actuarial tables and other assumptions adopted by the Board and
2the prescribed rate of interest, using the formula in
3subsection (c).
4    (c) For State fiscal years 2018 through 2045 (except as
5otherwise provided for fiscal year 2019), the minimum
6contribution to the System to be made by the State for each
7fiscal year shall be an amount determined by the System to be
8sufficient to bring the total assets of the System up to 90% of
9the total actuarial liabilities of the System by the end of
10State fiscal year 2045. In making these determinations, the
11required State contribution shall be calculated each year as a
12level percentage of total payroll, including payroll that is
13not deemed pensionable, but excluding payroll attributable to
14participants in the defined contribution plan under Section
152-165.1, over the years remaining to and including fiscal year
162045 and shall be determined under the projected unit credit
17actuarial cost method.
18    For State fiscal year 2019:
19        (1) The initial calculation and certification shall be
20    based on the amount determined above.
21        (2) For purposes of the recertification due on or
22    before May 1, 2018, the recalculation of the required State
23    contribution for fiscal year 2019 shall take into account
24    the effect on the System's liabilities of the elections
25    made under Section 2-110.3.
26        (3) For purposes of the recertification due on or

 

 

SB1763- 17 -LRB100 11311 RPS 21675 b

1    before October 1, 2018, the total required State
2    contribution for fiscal year 2019 shall be reduced by the
3    amount of the consideration payments made to Tier 1
4    employees who made the election under paragraph (1) of
5    subsection (a) of Section 2-110.3.
6    Beginning in State fiscal year 2018, any increase or
7decrease in State contribution over the prior fiscal year due
8exclusively to changes in actuarial or investment assumptions
9adopted by the Board shall be included in the State
10contribution to the System, as a percentage of the applicable
11employee payroll, and shall be increased in equal annual
12increments so that by the State fiscal year occurring 5 years
13after the adoption of the actuarial or investment assumptions,
14the State is contributing at the rate otherwise required under
15this Section.
16    If Section 2-110.3 is determined to be unconstitutional or
17otherwise invalid by a final unappealable decision of an
18Illinois court or a court of competent jurisdiction, then the
19changes made to this Section by this amendatory Act of the
20100th General Assembly shall not take effect and are repealed
21by operation of law.
22    For State fiscal years 2012 through 2017 2045, the minimum
23contribution to the System to be made by the State for each
24fiscal year shall be an amount determined by the System to be
25sufficient to bring the total assets of the System up to 90% of
26the total actuarial liabilities of the System by the end of

 

 

SB1763- 18 -LRB100 11311 RPS 21675 b

1State fiscal year 2045. In making these determinations, the
2required State contribution shall be calculated each year as a
3level percentage of payroll over the years remaining to and
4including fiscal year 2045 and shall be determined under the
5projected unit credit actuarial cost method.
6    For State fiscal years 1996 through 2005, the State
7contribution to the System, as a percentage of the applicable
8employee payroll, shall be increased in equal annual increments
9so that by State fiscal year 2011, the State is contributing at
10the rate required under this Section.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2006 is
13$4,157,000.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2007 is
16$5,220,300.
17    For each of State fiscal years 2008 through 2009, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20from the required State contribution for State fiscal year
212007, so that by State fiscal year 2011, the State is
22contributing at the rate otherwise required under this Section.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2010 is
25$10,454,000 and shall be made from the proceeds of bonds sold
26in fiscal year 2010 pursuant to Section 7.2 of the General

 

 

SB1763- 19 -LRB100 11311 RPS 21675 b

1Obligation Bond Act, less (i) the pro rata share of bond sale
2expenses determined by the System's share of total bond
3proceeds, (ii) any amounts received from the General Revenue
4Fund in fiscal year 2010, and (iii) any reduction in bond
5proceeds due to the issuance of discounted bonds, if
6applicable.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2011 is
9the amount recertified by the System on or before April 1, 2011
10pursuant to Section 2-134 and shall be made from the proceeds
11of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
12the General Obligation Bond Act, less (i) the pro rata share of
13bond sale expenses determined by the System's share of total
14bond proceeds, (ii) any amounts received from the General
15Revenue Fund in fiscal year 2011, and (iii) any reduction in
16bond proceeds due to the issuance of discounted bonds, if
17applicable.
18    Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 90% of the total
21actuarial liabilities of the System.
22    Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

 

 

SB1763- 20 -LRB100 11311 RPS 21675 b

1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 90%. A reference in this Article to
5the "required State contribution" or any substantially similar
6term does not include or apply to any amounts payable to the
7System under Section 25 of the Budget Stabilization Act.
8    Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter, as calculated
11under this Section and certified under Section 2-134, shall not
12exceed an amount equal to (i) the amount of the required State
13contribution that would have been calculated under this Section
14for that fiscal year if the System had not received any
15payments under subsection (d) of Section 7.2 of the General
16Obligation Bond Act, minus (ii) the portion of the State's
17total debt service payments for that fiscal year on the bonds
18issued in fiscal year 2003 for the purposes of that Section
197.2, as determined and certified by the Comptroller, that is
20the same as the System's portion of the total moneys
21distributed under subsection (d) of Section 7.2 of the General
22Obligation Bond Act. In determining this maximum for State
23fiscal years 2008 through 2010, however, the amount referred to
24in item (i) shall be increased, as a percentage of the
25applicable employee payroll, in equal increments calculated
26from the sum of the required State contribution for State

 

 

SB1763- 21 -LRB100 11311 RPS 21675 b

1fiscal year 2007 plus the applicable portion of the State's
2total debt service payments for fiscal year 2007 on the bonds
3issued in fiscal year 2003 for the purposes of Section 7.2 of
4the General Obligation Bond Act, so that, by State fiscal year
52011, the State is contributing at the rate otherwise required
6under this Section.
7    (d) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (e) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
247-13-12.)
 
25    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)

 

 

SB1763- 22 -LRB100 11311 RPS 21675 b

1    (Text of Section WITHOUT the changes made by P.A. 98-599,
2which has been held unconstitutional)
3    Sec. 2-126. Contributions by participants.
4    (a) Each participant shall contribute toward the cost of
5his or her retirement annuity a percentage of each payment of
6salary received by him or her for service as a member as
7follows: for service between October 31, 1947 and January 1,
81959, 5%; for service between January 1, 1959 and June 30,
91969, 6%; for service between July 1, 1969 and January 10,
101973, 6 1/2%; for service after January 10, 1973, 7%; for
11service after December 31, 1981, 8 1/2%.
12    (b) Beginning August 2, 1949, each male participant, and
13from July 1, 1971, each female participant shall contribute
14towards the cost of the survivor's annuity 2% of salary.
15    A participant who has no eligible survivor's annuity
16beneficiary may elect to cease making contributions for
17survivor's annuity under this subsection. A survivor's annuity
18shall not be payable upon the death of a person who has made
19this election, unless prior to that death the election has been
20revoked and the amount of the contributions that would have
21been paid under this subsection in the absence of the election
22is paid to the System, together with interest at the rate of 4%
23per year from the date the contributions would have been made
24to the date of payment.
25    (c) Beginning July 1, 1967, each participant shall
26contribute 1% of salary towards the cost of automatic increase

 

 

SB1763- 23 -LRB100 11311 RPS 21675 b

1in annuity provided in Section 2-119.1. These contributions
2shall be made concurrently with contributions for retirement
3annuity purposes.
4    (d) In addition, each participant serving as an officer of
5the General Assembly shall contribute, for the same purposes
6and at the same rates as are required of a regular participant,
7on each additional payment received as an officer. If the
8participant serves as an officer for at least 2 but less than 4
9years, he or she shall contribute an amount equal to the amount
10that would have been contributed had the participant served as
11an officer for 4 years. Persons who serve as officers in the
1287th General Assembly but cannot receive the additional payment
13to officers because of the ban on increases in salary during
14their terms may nonetheless make contributions based on those
15additional payments for the purpose of having the additional
16payments included in their highest salary for annuity purposes;
17however, persons electing to make these additional
18contributions must also pay an amount representing the
19corresponding employer contributions, as calculated by the
20System.
21    (e) Notwithstanding any other provision of this Article,
22the required contribution of a participant who first becomes a
23participant on or after January 1, 2011 shall not exceed the
24contribution that would be due under this Article if that
25participant's highest salary for annuity purposes were
26$106,800, plus any increases in that amount under Section

 

 

SB1763- 24 -LRB100 11311 RPS 21675 b

12-108.1.
2    (f) Beginning July 1, 2018 or the effective date of the
3Tier 1 employee's election under paragraph (1) of subsection
4(a) of Section 2-110.3, whichever is later, in lieu of the
5contributions otherwise required under this Section, each Tier
61 employee who made the election under paragraph (1) of
7subsection (a) of Section 2-110.3 shall contribute 8.5% of each
8payment of salary toward the cost of his or her retirement
9annuity and 1.85% of each payment of salary toward the cost of
10the survivor's annuity.
11    (g) Notwithstanding subsection (f) of this Section,
12beginning July 1, 2018 or the effective date of the Tier 1
13employee's election under paragraph (1) of subsection (a) of
14Section 2-110.3, whichever is later, in lieu of the
15contributions otherwise required under this Section, each Tier
161 employee who made the election under paragraph (1) of
17subsection (a) of Section 2-110.3 and has elected to cease
18making contributions for survivor's annuity under subsection
19(b) of this Section, shall contribute 8.55% of each payment of
20salary toward the cost of his or her retirement annuity.
21(Source: P.A. 96-1490, eff. 1-1-11.)
 
22    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
23    (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25    Sec. 2-134. To certify required State contributions and

 

 

SB1763- 25 -LRB100 11311 RPS 21675 b

1submit vouchers.
2    (a) The Board shall certify to the Governor on or before
3December 15 of each year until December 15, 2011 the amount of
4the required State contribution to the System for the next
5fiscal year and shall specifically identify the System's
6projected State normal cost for that fiscal year. The
7certification shall include a copy of the actuarial
8recommendations upon which it is based and shall specifically
9identify the System's projected State normal cost for that
10fiscal year.
11    On or before November 1 of each year, beginning November 1,
122012, the Board shall submit to the State Actuary, the
13Governor, and the General Assembly a proposed certification of
14the amount of the required State contribution to the System for
15the next fiscal year, along with all of the actuarial
16assumptions, calculations, and data upon which that proposed
17certification is based. On or before January 1 of each year
18beginning January 1, 2013, the State Actuary shall issue a
19preliminary report concerning the proposed certification and
20identifying, if necessary, recommended changes in actuarial
21assumptions that the Board must consider before finalizing its
22certification of the required State contributions. On or before
23January 15, 2013 and every January 15 thereafter, the Board
24shall certify to the Governor and the General Assembly the
25amount of the required State contribution for the next fiscal
26year. The Board's certification must note any deviations from

 

 

SB1763- 26 -LRB100 11311 RPS 21675 b

1the State Actuary's recommended changes, the reason or reasons
2for not following the State Actuary's recommended changes, and
3the fiscal impact of not following the State Actuary's
4recommended changes on the required State contribution.
5    On or before May 1, 2004, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2005, taking
8into account the amounts appropriated to and received by the
9System under subsection (d) of Section 7.2 of the General
10Obligation Bond Act.
11    On or before July 1, 2005, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2006, taking
14into account the changes in required State contributions made
15by this amendatory Act of the 94th General Assembly.
16    On or before April 1, 2011, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2011, applying
19the changes made by Public Act 96-889 to the System's assets
20and liabilities as of June 30, 2009 as though Public Act 96-889
21was approved on that date.
22    As soon as practical after the effective date of this
23amendatory Act of the 100th General Assembly, the State Actuary
24and the Board shall recalculate and recertify to the Governor
25and the General Assembly the amount of the State contribution
26to the System for State fiscal year 2018, taking into account

 

 

SB1763- 27 -LRB100 11311 RPS 21675 b

1the changes in required State contributions made by this
2amendatory Act of the 100th General Assembly.
3    On or before May 1, 2018, the Board shall recalculate and
4recertify to the Governor and the General Assembly the amount
5of the required State contribution to the System for State
6fiscal year 2019, taking into account the effect on the
7System's liabilities of the elections made under Section
82-110.3.
9    On or before October 1, 2018, the Board shall recalculate
10and recertify to the Governor and the General Assembly the
11amount of the required State contribution to the System for
12State fiscal year 2019, taking into account the reduction
13specified under item (3) of subsection (c) of Section 2-124.
14    (b) Beginning in State fiscal year 1996, on or as soon as
15possible after the 15th day of each month the Board shall
16submit vouchers for payment of State contributions to the
17System, in a total monthly amount of one-twelfth of the
18required annual State contribution certified under subsection
19(a). From the effective date of this amendatory Act of the 93rd
20General Assembly through June 30, 2004, the Board shall not
21submit vouchers for the remainder of fiscal year 2004 in excess
22of the fiscal year 2004 certified contribution amount
23determined under this Section after taking into consideration
24the transfer to the System under subsection (d) of Section
256z-61 of the State Finance Act. These vouchers shall be paid by
26the State Comptroller and Treasurer by warrants drawn on the

 

 

SB1763- 28 -LRB100 11311 RPS 21675 b

1funds appropriated to the System for that fiscal year. If in
2any month the amount remaining unexpended from all other
3appropriations to the System for the applicable fiscal year
4(including the appropriations to the System under Section 8.12
5of the State Finance Act and Section 1 of the State Pension
6Funds Continuing Appropriation Act) is less than the amount
7lawfully vouchered under this Section, the difference shall be
8paid from the General Revenue Fund under the continuing
9appropriation authority provided in Section 1.1 of the State
10Pension Funds Continuing Appropriation Act.
11    (c) The full amount of any annual appropriation for the
12System for State fiscal year 1995 shall be transferred and made
13available to the System at the beginning of that fiscal year at
14the request of the Board. Any excess funds remaining at the end
15of any fiscal year from appropriations shall be retained by the
16System as a general reserve to meet the System's accrued
17liabilities.
18(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1997-694, eff. 6-18-12.)
 
20    (40 ILCS 5/2-162)
21    (Text of Section WITHOUT the changes made by P.A. 98-599,
22which has been held unconstitutional)
23    Sec. 2-162. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

SB1763- 29 -LRB100 11311 RPS 21675 b

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after the effective date of this
5amendatory Act of the 94th General Assembly. "New benefit
6increase", however, does not include any benefit increase
7resulting from the changes made to this Article by this
8amendatory Act of the 100th General Assembly.
9    (b) Notwithstanding any other provision of this Code or any
10subsequent amendment to this Code, every new benefit increase
11is subject to this Section and shall be deemed to be granted
12only in conformance with and contingent upon compliance with
13the provisions of this Section.
14    (c) The Public Act enacting a new benefit increase must
15identify and provide for payment to the System of additional
16funding at least sufficient to fund the resulting annual
17increase in cost to the System as it accrues.
18    Every new benefit increase is contingent upon the General
19Assembly providing the additional funding required under this
20subsection. The Commission on Government Forecasting and
21Accountability shall analyze whether adequate additional
22funding has been provided for the new benefit increase and
23shall report its analysis to the Public Pension Division of the
24Department of Insurance Financial and Professional Regulation.
25A new benefit increase created by a Public Act that does not
26include the additional funding required under this subsection

 

 

SB1763- 30 -LRB100 11311 RPS 21675 b

1is null and void. If the Public Pension Division determines
2that the additional funding provided for a new benefit increase
3under this subsection is or has become inadequate, it may so
4certify to the Governor and the State Comptroller and, in the
5absence of corrective action by the General Assembly, the new
6benefit increase shall expire at the end of the fiscal year in
7which the certification is made.
8    (d) Every new benefit increase shall expire 5 years after
9its effective date or on such earlier date as may be specified
10in the language enacting the new benefit increase or provided
11under subsection (c). This does not prevent the General
12Assembly from extending or re-creating a new benefit increase
13by law.
14    (e) Except as otherwise provided in the language creating
15the new benefit increase, a new benefit increase that expires
16under this Section continues to apply to persons who applied
17and qualified for the affected benefit while the new benefit
18increase was in effect and to the affected beneficiaries and
19alternate payees of such persons, but does not apply to any
20other person, including without limitation a person who
21continues in service after the expiration date and did not
22apply and qualify for the affected benefit while the new
23benefit increase was in effect.
24(Source: P.A. 94-4, eff. 6-1-05.)
 
25    (40 ILCS 5/2-165.1 new)

 

 

SB1763- 31 -LRB100 11311 RPS 21675 b

1    Sec. 2-165.1. Defined contribution plan.
2    (a) By July 1, 2018, the System shall prepare and implement
3a voluntary defined contribution plan for up to 5% of eligible
4active Tier 1 employees. The System shall determine the 5% cap
5by the number of active Tier 1 employees on the effective date
6of this Section. The defined contribution plan developed under
7this Section shall be a plan that aggregates employer and
8employee contributions in individual participant accounts
9which, after meeting any other requirements, are used for
10payouts after retirement in accordance with this Section and
11any other applicable laws.
12    As used in this Section, "defined benefit plan" means the
13retirement plan available under this Article to Tier 1
14employees who have not made the election authorized under this
15Section.
16        (1) Under the defined contribution plan, an active Tier
17    1 employee of this System could elect to cease accruing
18    benefits in the defined benefit plan under this Article and
19    begin accruing benefits for future service in the defined
20    contribution plan. Service credit under the defined
21    contribution plan may be used for determining retirement
22    eligibility under the defined benefit plan.
23        (2) Participants in the defined contribution plan
24    shall pay employee contributions at the same rate as Tier 1
25    employees in this System who do not participate in the
26    defined contribution plan.

 

 

SB1763- 32 -LRB100 11311 RPS 21675 b

1        (3) State contributions shall be paid into the accounts
2    of all participants in the defined contribution plan at a
3    uniform rate, expressed as a percentage of compensation and
4    determined for each year. This rate shall be no higher than
5    the employer's normal cost for Tier 1 employees in the
6    defined benefit plan for that year, as determined by the
7    System and expressed as a percentage of compensation, and
8    shall be no lower than 3% of compensation. The State shall
9    adjust this rate annually.
10        (4) The defined contribution plan shall require 5 years
11    of participation in the defined contribution plan before
12    vesting in State contributions. If the participant fails to
13    vest in them, the State contributions, and the earnings
14    thereon, shall be forfeited.
15        (5) The defined contribution plan may provide for
16    participants in the plan to be eligible for defined
17    disability benefits. If it does, the System shall reduce
18    the employee contributions credited to the participant's
19    defined contribution plan account by an amount determined
20    by the System to cover the cost of offering such benefits.
21        (6) The defined contribution plan shall provide a
22    variety of options for investments. These options shall
23    include investments handled by the Illinois State Board of
24    Investment as well as private sector investment options.
25        (7) The defined contribution plan shall provide a
26    variety of options for payouts to retirees and their

 

 

SB1763- 33 -LRB100 11311 RPS 21675 b

1    survivors.
2        (8) To the extent authorized under federal law and as
3    authorized by the System, the plan shall allow former
4    participants in the plan to transfer or roll over employee
5    and vested State contributions, and the earnings thereon,
6    into other qualified retirement plans.
7        (9) The System shall reduce the employee contributions
8    credited to the participant's defined contribution plan
9    account by an amount determined by the System to cover the
10    cost of offering these benefits and any applicable
11    administrative fees.
12    (b) Only persons who are active Tier 1 employees of the
13System on the effective date of this Section are eligible to
14participate in the defined contribution plan. Participation in
15the defined contribution plan shall be limited to the first 5%
16of eligible persons who elect to participate. The election to
17participate in the defined contribution plan is voluntary and
18irrevocable.
19    (c) An eligible active Tier 1 employee may irrevocably
20elect to participate in the defined contribution plan by filing
21with the System a written application to participate that is
22received by the System prior to its determination that 5% of
23eligible persons have elected to participate in the defined
24contribution plan.
25    When the System first determines that 5% of eligible
26persons have elected to participate in the defined contribution

 

 

SB1763- 34 -LRB100 11311 RPS 21675 b

1plan, the System shall provide notice to previously eligible
2employees that the plan is no longer available and shall cease
3accepting applications to participate.
4    (d) The System shall make a good faith effort to contact
5each active Tier 1 employee who is eligible to participate in
6the defined contribution plan. The System shall mail
7information describing the option to join the defined
8contribution plan to each of these employees to his or her last
9known address on file with the System. If the employee is not
10responsive to other means of contact, it is sufficient for the
11System to publish the details of the option on its website.
12    Upon request for further information describing the
13option, the System shall provide employees with information
14from the System before exercising the option to join the plan,
15including information on the impact to their vested benefits or
16non-vested service. The individual consultation shall include
17projections of the participant's defined benefits at
18retirement or earlier termination of service and the value of
19the participant's account at retirement or earlier termination
20of service. The System shall not provide advice or counseling
21with respect to whether the employee should exercise the
22option. The System shall inform Tier 1 employees who are
23eligible to participate in the defined contribution plan that
24they may also wish to obtain information and counsel relating
25to their option from any other available source, including but
26not limited to labor organizations, private counsel, and

 

 

SB1763- 35 -LRB100 11311 RPS 21675 b

1financial advisors.
2    (e) In no event shall the System, its staff, its authorized
3representatives, or the Board be liable for any information
4given to an employee under this Section. The System may
5coordinate with the Illinois Department of Central Management
6Services and other retirement systems administering a defined
7contribution plan in accordance with this amendatory Act of the
8100th General Assembly to provide information concerning the
9impact of the option set forth in this Section.
10    (f) Notwithstanding any other provision of this Section, no
11person shall begin participating in the defined contribution
12plan until it has attained qualified plan status and received
13all necessary approvals from the U.S. Internal Revenue Service.
14    (g) The System shall report on its progress under this
15Section, including the available details of the defined
16contribution plan and the System's plans for informing eligible
17Tier 1 employees about the plan, to the Governor and the
18General Assembly on or before January 15, 2018.
19    (h) The Illinois State Board of Investments shall be the
20plan sponsor for the defined contribution plan established
21under this Section.
22    (i) The intent of this amendatory Act of the 100th General
23Assembly is to ensure that the State's normal cost of
24participation in the defined contribution plan is similar, and
25if possible equal, to the State's normal cost of participation
26in the defined benefit plan, unless a lower State's normal cost

 

 

SB1763- 36 -LRB100 11311 RPS 21675 b

1is necessary to ensure cost neutrality.
2    (j) If Section 2-110.3 is determined to be unconstitutional
3or otherwise invalid by a final unappealable decision of an
4Illinois court or a court of competent jurisdiction, then this
5Section shall not take effect and is repealed by operation of
6law.
 
7    (40 ILCS 5/2-166.1 new)
8    Sec. 2-166.1. Defined contribution plan; termination. If
9the defined contribution plan is terminated or becomes
10inoperative pursuant to law, then each participant in the plan
11shall automatically be deemed to have been a contributing Tier
121 employee in the System's defined benefit plan during the time
13in which he or she participated in the defined contribution
14plan, and for that purpose the System shall be entitled to
15recover the amounts in the participant's defined contribution
16accounts.
 
17    (40 ILCS 5/20-121)  (from Ch. 108 1/2, par. 20-121)
18    (Text of Section WITHOUT the changes made by P.A. 98-599,
19which has been held unconstitutional)
20    Sec. 20-121. Calculation of proportional retirement
21annuities.
22    (a) Upon retirement of the employee, a proportional
23retirement annuity shall be computed by each participating
24system in which pension credit has been established on the

 

 

SB1763- 37 -LRB100 11311 RPS 21675 b

1basis of pension credits under each system. The computation
2shall be in accordance with the formula or method prescribed by
3each participating system which is in effect at the date of the
4employee's latest withdrawal from service covered by any of the
5systems in which he has pension credits which he elects to have
6considered under this Article. However, the amount of any
7retirement annuity payable under the self-managed plan
8established under Section 15-158.2 of this Code or under the
9defined contribution plan established under Article 2 of this
10Code depends solely on the value of the participant's vested
11account balances and is not subject to any proportional
12adjustment under this Section.
13    (a-5) For persons who participate in a defined contribution
14plan established under Article 2 of this Code to whom the
15provisions of this Article apply, the pension credits
16established under the defined contribution plan may be
17considered in determining eligibility for or the amount of the
18defined benefit retirement annuity that is payable by any other
19participating system.
20    (b) Combined pension credit under all retirement systems
21subject to this Article shall be considered in determining
22whether the minimum qualification has been met and the formula
23or method of computation which shall be applied, except as may
24be otherwise provided with respect to vesting in State or
25employer contributions in a defined contribution plan. If a
26system has a step-rate formula for calculation of the

 

 

SB1763- 38 -LRB100 11311 RPS 21675 b

1retirement annuity, pension credits covering previous service
2which have been established under another system shall be
3considered in determining which range or ranges of the
4step-rate formula are to be applicable to the employee.
5    (c) Interest on pension credit shall continue to accumulate
6in accordance with the provisions of the law governing the
7retirement system in which the same has been established during
8the time an employee is in the service of another employer, on
9the assumption such employee, for interest purposes for pension
10credit, is continuing in the service covered by such retirement
11system.
12(Source: P.A. 91-887, eff. 7-6-00.)
 
13    (40 ILCS 5/20-123)  (from Ch. 108 1/2, par. 20-123)
14    (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16    Sec. 20-123. Survivor's annuity. The provisions governing
17a retirement annuity shall be applicable to a survivor's
18annuity. Appropriate credits shall be established for
19survivor's annuity purposes in those participating systems
20which provide survivor's annuities, according to the same
21conditions and subject to the same limitations and restrictions
22herein prescribed for a retirement annuity. If a participating
23system has no survivor's annuity benefit, or if the survivor's
24annuity benefit under that system is waived, pension credit
25established in that system shall not be considered in

 

 

SB1763- 39 -LRB100 11311 RPS 21675 b

1determining eligibility for or the amount of the survivor's
2annuity which may be payable by any other participating system.
3    For persons who participate in the self-managed plan
4established under Section 15-158.2 or the portable benefit
5package established under Section 15-136.4, pension credit
6established under Article 15 may be considered in determining
7eligibility for or the amount of the survivor's annuity that is
8payable by any other participating system, but pension credit
9established in any other system shall not result in any right
10to a survivor's annuity under the Article 15 system.
11    For persons who participate in a defined contribution plan
12established under Article 2 of this Code to whom the provisions
13of this Article apply, the pension credits established under
14the defined contribution plan may be considered in determining
15eligibility for or the amount of the defined benefit survivor's
16annuity that is payable by any other participating system, but
17pension credits established in any other system shall not
18result in any right to or increase in the value of a survivor's
19annuity under the defined contribution plan, which depends
20solely on the options chosen and the value of the participant's
21vested account balances and is not subject to any proportional
22adjustment under this Section.
23(Source: P.A. 91-887, eff. 7-6-00.)
 
24    (40 ILCS 5/20-124)  (from Ch. 108 1/2, par. 20-124)
25    (Text of Section WITHOUT the changes made by P.A. 98-599,

 

 

SB1763- 40 -LRB100 11311 RPS 21675 b

1which has been held unconstitutional)
2    Sec. 20-124. Maximum benefits.
3    (a) In no event shall the combined retirement or survivors
4annuities exceed the highest annuity which would have been
5payable by any participating system in which the employee has
6pension credits, if all of his pension credits had been
7validated in that system.
8    If the combined annuities should exceed the highest maximum
9as determined in accordance with this Section, the respective
10annuities shall be reduced proportionately according to the
11ratio which the amount of each proportional annuity bears to
12the aggregate of all such annuities.
13    (b) In the case of a participant in the self-managed plan
14established under Section 15-158.2 of this Code to whom the
15provisions of this Article apply:
16        (i) For purposes of calculating the combined
17    retirement annuity and the proportionate reduction, if
18    any, in a retirement annuity other than one payable under
19    the self-managed plan, the amount of the Article 15
20    retirement annuity shall be deemed to be the highest
21    annuity to which the annuitant would have been entitled if
22    he or she had participated in the traditional benefit
23    package as defined in Section 15-103.1 rather than the
24    self-managed plan.
25        (ii) For purposes of calculating the combined
26    survivor's annuity and the proportionate reduction, if

 

 

SB1763- 41 -LRB100 11311 RPS 21675 b

1    any, in a survivor's annuity other than one payable under
2    the self-managed plan, the amount of the Article 15
3    survivor's annuity shall be deemed to be the highest
4    survivor's annuity to which the survivor would have been
5    entitled if the deceased employee had participated in the
6    traditional benefit package as defined in Section 15-103.1
7    rather than the self-managed plan.
8        (iii) Benefits payable under the self-managed plan are
9    not subject to proportionate reduction under this Section.
10    (c) In the case of a participant in a defined contribution
11plan established under Article 2 of this Code to whom the
12provisions of this Article apply:
13        (i) For purposes of calculating the combined
14    retirement annuity and the proportionate reduction, if
15    any, in a defined benefit retirement annuity, any benefit
16    payable under the defined contribution plan shall not be
17    considered.
18        (ii) For purposes of calculating the combined
19    survivor's annuity and the proportionate reduction, if
20    any, in a defined benefit survivor's annuity, any benefit
21    payable under the defined contribution plan shall not be
22    considered.
23        (iii) Benefits payable under a defined contribution
24    plan established under Article 2 of this Code are not
25    subject to proportionate reduction under this Section.
26(Source: P.A. 91-887, eff. 7-6-00.)
 

 

 

SB1763- 42 -LRB100 11311 RPS 21675 b

1    (40 ILCS 5/20-125)  (from Ch. 108 1/2, par. 20-125)
2    (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 20-125. Return to employment - suspension of benefits.
5If a retired employee returns to employment which is covered by
6a system from which he is receiving a proportional annuity
7under this Article, his proportional annuity from all
8participating systems shall be suspended during the period of
9re-employment, except that this suspension does not apply to
10any distributions payable under the self-managed plan
11established under Section 15-158.2 or under a defined
12contribution plan established under Article 2 of this Code.
13    The provisions of the Article under which such employment
14would be covered shall govern the determination of whether the
15employee has returned to employment, and if applicable the
16exemption of temporary employment or employment not exceeding a
17specified duration or frequency, for all participating systems
18from which the retired employee is receiving a proportional
19annuity under this Article, notwithstanding any contrary
20provisions in the other Articles governing such systems.
21(Source: P.A. 91-887, eff. 7-6-00.)
 
22    (40 ILCS 5/2-165 rep.)
23    (40 ILCS 5/2-166 rep.)
24    Section 10. The Illinois Pension Code is amended by

 

 

SB1763- 43 -LRB100 11311 RPS 21675 b

1repealing Sections 2-165 and 2-166.
 
2    Section 15. The State Pension Funds Continuing
3Appropriation Act is amended by adding Section 1.9 as follows:
 
4    (40 ILCS 15/1.9 new)
5    Sec. 1.9. Appropriation for consideration payment. There
6is hereby appropriated from the General Revenue Fund to the
7State Comptroller, on a continuing basis, all amounts necessary
8for the payment of consideration payments under subsection (b)
9of Section 2-110.3 of the Illinois Pension Code, in the amounts
10certified to the State Comptroller by the retirement system.
 
11    Section 97. Severability. Except as otherwise provided in
12this Act, the provisions of this Act are severable under
13Section 1.31 of the Statute on Statutes.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.

 

 

SB1763- 44 -LRB100 11311 RPS 21675 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/2-101from Ch. 108 1/2, par. 2-101
4    40 ILCS 5/2-105from Ch. 108 1/2, par. 2-105
5    40 ILCS 5/2-105.3 new
6    40 ILCS 5/2-107from Ch. 108 1/2, par. 2-107
7    40 ILCS 5/2-107.9 new
8    40 ILCS 5/2-107.10 new
9    40 ILCS 5/2-108from Ch. 108 1/2, par. 2-108
10    40 ILCS 5/2-110.3 new
11    40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
12    40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
13    40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
14    40 ILCS 5/2-134from Ch. 108 1/2, par. 2-134
15    40 ILCS 5/2-162
16    40 ILCS 5/2-165.1 new
17    40 ILCS 5/2-166.1 new
18    40 ILCS 5/20-121from Ch. 108 1/2, par. 20-121
19    40 ILCS 5/20-123from Ch. 108 1/2, par. 20-123
20    40 ILCS 5/20-124from Ch. 108 1/2, par. 20-124
21    40 ILCS 5/20-125from Ch. 108 1/2, par. 20-125
22    40 ILCS 5/2-165 rep.
23    40 ILCS 5/2-166 rep.
24    40 ILCS 15/1.9 new