97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3119

 

Introduced 2/23/2011, by Rep. Lou Lang

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-160
30 ILCS 805/8.35 new

    Amends the Illinois Pension Code. In provisions that are applicable to new hires, provides that the alternative retirement annuity in the State Employees Article of the Code is available to any person employed in a title or position by a State agency or the Office of Secretary of State and vested with such investigative, law enforcement, or peace officer duties as render him or her ineligible for coverage under the Social Security Act (instead of only to a person who is a State policeman, fire fighter in the fire protection service of a department, or security employee of the Department of Corrections or the Department of Juvenile Justice). Amends the State Mandates Act to require implementation without reimbursement.


LRB097 10552 JDS 50895 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3119LRB097 10552 JDS 50895 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
5Section 1-160 as follows:
 
6    (40 ILCS 5/1-160)
7    Sec. 1-160. Provisions applicable to new hires.
8    (a) The provisions of this Section apply to a person who,
9on or after January 1, 2011, first becomes a member or a
10participant under any reciprocal retirement system or pension
11fund established under this Code, other than a retirement
12system or pension fund established under Article 2, 3, 4, 5, 6,
13or 18 of this Code, notwithstanding any other provision of this
14Code to the contrary, but do not apply to any self-managed plan
15established under this Code, to any person with respect to
16service as a sheriff's law enforcement employee under Article
177, or to any participant of the retirement plan established
18under Section 22-101.
19    (b) "Final average salary" means the average monthly (or
20annual) salary obtained by dividing the total salary or
21earnings calculated under the Article applicable to the member
22or participant during the 96 consecutive months (or 8
23consecutive years) of service within the last 120 months (or 10

 

 

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1years) of service in which the total salary or earnings
2calculated under the applicable Article was the highest by the
3number of months (or years) of service in that period. For the
4purposes of a person who first becomes a member or participant
5of any retirement system or pension fund to which this Section
6applies on or after January 1, 2011, in this Code, "final
7average salary" shall be substituted for the following:
8        (1) In Articles 7 (except for service as sheriff's law
9    enforcement employees) and 15, "final rate of earnings".
10        (2) In Articles 8, 9, 10, 11, and 12, "highest average
11    annual salary for any 4 consecutive years within the last
12    10 years of service immediately preceding the date of
13    withdrawal".
14        (3) In Article 13, "average final salary".
15        (4) In Article 14, "final average compensation".
16        (5) In Article 17, "average salary".
17        (6) In Section 22-207, "wages or salary received by him
18    at the date of retirement or discharge".
19    (b-5) Beginning on January 1, 2011, for all purposes under
20this Code (including without limitation the calculation of
21benefits and employee contributions), the annual earnings,
22salary, or wages (based on the plan year) of a member or
23participant to whom this Section applies shall not exceed
24$106,800; however, that amount shall annually thereafter be
25increased by the lesser of (i) 3% of that amount, including all
26previous adjustments, or (ii) one-half the annual unadjusted

 

 

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1percentage increase (but not less than zero) in the consumer
2price index-u for the 12 months ending with the September
3preceding each November 1, including all previous adjustments.
4    For the purposes of this Section, "consumer price index-u"
5means the index published by the Bureau of Labor Statistics of
6the United States Department of Labor that measures the average
7change in prices of goods and services purchased by all urban
8consumers, United States city average, all items, 1982-84 =
9100. The new amount resulting from each annual adjustment shall
10be determined by the Public Pension Division of the Department
11of Insurance and made available to the boards of the retirement
12systems and pension funds by November 1 of each year.
13    (c) A member or participant is entitled to a retirement
14annuity upon written application if he or she has attained age
1567 and has at least 10 years of service credit and is otherwise
16eligible under the requirements of the applicable Article.
17    A member or participant who has attained age 62 and has at
18least 10 years of service credit and is otherwise eligible
19under the requirements of the applicable Article may elect to
20receive the lower retirement annuity provided in subsection (d)
21of this Section.
22    (d) The retirement annuity of a member or participant who
23is retiring after attaining age 62 with at least 10 years of
24service credit shall be reduced by one-half of 1% for each full
25month that the member's age is under age 67.
26    (e) Any retirement annuity or supplemental annuity shall be

 

 

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1subject to annual increases on the January 1 occurring either
2on or after the attainment of age 67 or the first anniversary
3of the annuity start date, whichever is later. Each annual
4increase shall be calculated at 3% or one-half the annual
5unadjusted percentage increase (but not less than zero) in the
6consumer price index-u for the 12 months ending with the
7September preceding each November 1, whichever is less, of the
8originally granted retirement annuity. If the annual
9unadjusted percentage change in the consumer price index-u for
10the 12 months ending with the September preceding each November
111 is zero or there is a decrease, then the annuity shall not be
12increased.
13    (f) The initial survivor's or widow's annuity of an
14otherwise eligible survivor or widow of a retired member or
15participant who first became a member or participant on or
16after January 1, 2011 shall be in the amount of 66 2/3% of the
17retired member's or participant's retirement annuity at the
18date of death. In the case of the death of a member or
19participant who has not retired and who first became a member
20or participant on or after January 1, 2011, eligibility for a
21survivor's or widow's annuity shall be determined by the
22applicable Article of this Code. The initial benefit shall be
2366 2/3% of the earned annuity without a reduction due to age. A
24child's annuity of an otherwise eligible child shall be in the
25amount prescribed under each Article if applicable. Any
26survivor's or widow's annuity shall be increased (1) on each

 

 

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1January 1 occurring on or after the commencement of the annuity
2if the deceased member died while receiving a retirement
3annuity or (2) in other cases, on each January 1 occurring
4after the first anniversary of the commencement of the annuity.
5Each annual increase shall be calculated at 3% or one-half the
6annual unadjusted percentage increase (but not less than zero)
7in the consumer price index-u for the 12 months ending with the
8September preceding each November 1, whichever is less, of the
9originally granted survivor's annuity. If the annual
10unadjusted percentage change in the consumer price index-u for
11the 12 months ending with the September preceding each November
121 is zero or there is a decrease, then the annuity shall not be
13increased.
14    (g) The benefits in Section 14-110 apply only if the person
15is employed in a title or position by any State agency or the
16Office of Secretary of State and vested with such
17investigative, law enforcement, or peace officer duties as
18render him or her ineligible for coverage under the Social
19Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D),
20and 218(l)(1) of that Act, including a State policeman, a fire
21fighter in the fire protection service of a department, or a
22security employee of the Department of Corrections or the
23Department of Juvenile Justice, as those terms are defined in
24subsection (b) of Section 14-110. A person who meets the
25requirements of this Section is entitled to an annuity
26calculated under the provisions of Section 14-110, in lieu of

 

 

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1the regular or minimum retirement annuity, only if the person
2has withdrawn from service with not less than 20 years of
3eligible creditable service and has attained age 60, regardless
4of whether the attainment of age 60 occurs while the person is
5still in service.
6    (h) If a person who first becomes a member or a participant
7of a retirement system or pension fund subject to this Section
8on or after January 1, 2011 is receiving a retirement annuity
9or retirement pension under that system or fund and becomes a
10member or participant under any other system or fund created by
11this Code and is employed on a full-time basis, except for
12those members or participants exempted from the provisions of
13this Section under subsection (a) of this Section, then the
14person's retirement annuity or retirement pension under that
15system or fund shall be suspended during that employment. Upon
16termination of that employment, the person's retirement
17annuity or retirement pension payments shall resume and be
18recalculated if recalculation is provided for under the
19applicable Article of this Code.
20    (i) Notwithstanding any other provision of this Section, a
21person who first becomes a participant of the retirement system
22established under Article 15 on or after January 1, 2011 shall
23have the option to enroll in the self-managed plan created
24under Section 15-158.2 of this Code.
25    (j) In the case of a conflict between the provisions of
26this Section and any other provision of this Code, the

 

 

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1provisions of this Section shall control.
2(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
3    Section 90. The State Mandates Act is amended by adding
4Section 8.35 as follows:
 
5    (30 ILCS 805/8.35 new)
6    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
7of this Act, no reimbursement by the State is required for the
8implementation of any mandate created by this amendatory Act of
9the 97th General Assembly.