97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2087

 

Introduced 2/22/2011, by Rep. Darlene J. Senger

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-101  from Ch. 108 1/2, par. 2-101
40 ILCS 5/2-105  from Ch. 108 1/2, par. 2-105
40 ILCS 5/2-110  from Ch. 108 1/2, par. 2-110

    Amends the General Assembly Retirement System (GARS) Article of the Illinois Pension Code. Provides that current participants cannot establish service credit in the system after the effective date of the amendatory Act. Prohibits persons from becoming a member of GARS after the effective date of the amendatory Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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, and 2-110 as follows:
 
6    (40 ILCS 5/2-101)  (from Ch. 108 1/2, par. 2-101)
7    Sec. 2-101. Creation of system. A retirement system is
8created to provide retirement annuities, survivor's annuities,
9and other benefits for certain members of the General Assembly,
10certain elected state officials, and their beneficiaries.
11    The system shall be known as the "General Assembly
12Retirement System". All its funds and property shall be a trust
13separate from all other entities, maintained for the purpose of
14securing payment of annuities and benefits under this Article.
15(Source: P.A. 83-1440.)
 
16    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
17    Sec. 2-105. Member. "Member": Members of the General
18Assembly of this State who are elected before the effective
19date of this amendatory Act of the 97th General Assembly,
20including persons who enter military service while a member of
21the General Assembly, and any person serving as Governor,
22Lieutenant Governor, Secretary of State, Treasurer,

 

 

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1Comptroller, or Attorney General but only for service before
2the effective date of this amendatory Act of the 97th General
3Assembly for the period of service in such office.
4    Any person who has served for 10 or more years as Clerk or
5Assistant Clerk of the House of Representatives, Secretary or
6Assistant Secretary of the Senate, or any combination thereof ,
7may elect to become a member of this system while thenceforth
8engaged in such service by filing a written election with the
9board before the effective date of this amendatory Act of the
1097th General Assembly. Any person so electing shall be deemed
11an active member of the General Assembly for the purpose of
12validating and transferring any service credits earned under
13any of the funds and systems established under Articles 3
14through 18 of this Code.
15(Source: P.A. 85-1008.)
 
16    (40 ILCS 5/2-110)  (from Ch. 108 1/2, par. 2-110)
17    Sec. 2-110. Service.
18    (A) "Service" means the period beginning on the day when a
19person first became a member, and ending on the earlier of
20either (i) the date under consideration, excluding all
21intervening periods of nonmembership following resignation or
22expiration of any term of office (ii) the effective date of
23this amendatory Act of the 97th General Assembly.
24    (B) "Service" includes:
25        (a) Military service during war by a person who entered

 

 

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1    such service while a member, whether rendered before or
2    after the expiration of any term of office; plus up to 2
3    years of military service that need not have immediately
4    followed service as a member, and need not have been served
5    during wartime, provided that the member makes
6    contributions to the System for such service (1) at the
7    rates provided in Section 2-126 based upon the member's
8    rate of compensation on the last date as a participant
9    prior to such military service, or on the first date as a
10    participant after such military service, whichever is
11    greater, plus (2) if payment is made on or after May 1,
12    1993, an amount determined by the Board to be equal to the
13    employer's normal cost of the benefits accrued for such
14    military service, plus (3) interest at the effective rate
15    from the date of first membership in the System to the date
16    of payment.
17        The amendment to this subdivision (B)(a) made by this
18    amendatory Act of 1993 shall apply to persons who are
19    active contributors to the System on or after November 30,
20    1992. A person who was an active contributor to the System
21    on November 30, 1992 but is no longer an active contributor
22    may apply to purchase military credit under this
23    subdivision (B)(a) within 60 days after the effective date
24    of this amendatory Act of 1993; if the person is an
25    annuitant, the resulting increase in annuity shall begin to
26    accrue on the first day of the month following the month in

 

 

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1    which the required payment is received by the System. The
2    change in the required contribution for purchased military
3    credit made by this amendatory Act of 1993 shall not
4    entitle any person to a refund of contributions already
5    paid.
6        (b) Service as a judge of a court of this State, but
7    credit for such service is subject to the following
8    conditions: (1) such person shall have been a member for at
9    least 4 years and contributed to the system for service as
10    a judge subsequent to July 8, 1947, at the rates herein
11    provided, including interest at 2% per annum to the date of
12    payment based on the salary in effect during such service;
13    (2) the member was not an eligible member of nor entitled
14    to credit for such service in any other retirement system
15    in the State maintained in whole or in part by public
16    contributions; and (3) the last 4 years of service prior to
17    retirement on annuity was rendered while a member.
18        (c) Service as a participating employee under Articles
19    3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 or 18 of
20    the Illinois Pension Code. Credit for such service may be
21    established by a member and, if permitted by the credit
22    transfer Section of the appropriate Article, by a former
23    member who is not yet an annuitant, and is subject to the
24    following conditions: (1) that the credits accrued under
25    the above mentioned Articles have been transferred to this
26    system; and (2) that the member has contributed to this

 

 

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1    system an amount equal to (i) the contribution rate in
2    effect for participants at the date of membership in this
3    system multiplied by the salary then in effect for members
4    of the General Assembly for each year of service for which
5    credit is being transferred, plus (ii) the State's share of
6    the normal cost of benefits under this system expressed as
7    a percent of payroll, as determined by the system's actuary
8    as of the date of the participant's membership in this
9    system, multiplied by the salary then in effect for members
10    of the General Assembly, for each year of service for which
11    credit is being transferred, plus (iii) interest on items
12    (i) and (ii) above at 6% per annum compounded annually,
13    from the date of membership to the date of payment by the
14    participant, less (iv) the amount transferred to this
15    system on behalf of the participant on account of service
16    rendered while a participant under the above mentioned
17    Articles.
18        (d) Service, before October 1, 1975, as an officer
19    elected by the people of Illinois, for which creditable
20    service is required to be transferred from the State
21    Employees' Retirement System to this system by this
22    amendatory Act of 1975.
23        (e) Service rendered prior to January 1, 1964, as a
24    justice of the peace or police magistrate or as a civil
25    referee in the Municipal Court of Chicago, but credit for
26    such service may not be granted until the member has paid

 

 

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1    to the system an amount equal to (1) the contribution rate
2    for participants at the date of membership in this system
3    multiplied by the salary then in effect for members of the
4    General Assembly for each year of service for which credit
5    is being transferred, plus (2) the State's share of the
6    normal cost of benefits under this system expressed as a
7    percent of payroll, as determined by the system's actuary
8    as of the date of the participant's membership in this
9    system, multiplied by the salary then in effect for members
10    of the General Assembly, for each year of service for which
11    credit is allowed, plus, (3) interest on (1) and (2) above
12    at 6% per annum compounded annually from the date of
13    membership to the date of payment by the member. However, a
14    participant may not receive more than 6 years of credit for
15    such service nor may any member receive credit under this
16    paragraph for service for which credit has been granted in
17    any other public pension fund or retirement system in the
18    State.
19        (f) Service before January 16, 1981, as an officer
20    elected by the people of Illinois, for which creditable
21    service is transferred from the State Employees'
22    Retirement System to this system.
23    (B-5) Notwithstanding any other provision of this Article,
24"service" excludes service rendered on or after the effective
25date of this amendatory Act of the 97th General Assembly.
26    (C) Service during any fraction of a month shall be

 

 

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1considered as a month of service.
2     Service includes the total period of time for which a
3participant is elected as a member or officer, even though he
4or she does not complete the term because of death,
5resignation, judicial decision, or operation of law, provided
6that the contributions required under this Article for such
7entire period of office have been made by or on behalf of the
8participant. In the case of a participant appointed or elected
9to fill a vacancy, service includes the total period from
10January 1 of the year in which his or her service commences to
11the end of the term in which the vacancy occurs, provided the
12participant contributes in the year of appointment an amount
13equal to the contributions that would have been required had
14the participant received salary for the entire year. The
15foregoing provisions relating to a participant appointed or
16elected to fill a vacancy shall not apply if the participant
17was a member of the other legislative chamber at the time of
18appointment or election.
19    (D) Notwithstanding the other provisions of this Section,
20if application to transfer or establish service credit under
21paragraph (c) or (e) of subsection (B) of this Section is made
22between January 1, 1992 and February 1, 1993, the contribution
23required for such credit shall be an amount equal to (1) the
24contribution rate in effect for participants at the date of
25membership in this system multiplied by the salary then in
26effect for members of the General Assembly for each year of

 

 

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1service for which credit is being granted, plus (2) interest
2thereon at 6% per annum compounded annually, from the date of
3membership to the date of payment by the member, less (3) any
4amount transferred to this system on behalf of the member on
5account of such service credit.
6(Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.