Rep. Michael J. Madigan

Filed: 3/6/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1154

2    AMENDMENT NO. ______. Amend House Bill 1154, AS AMENDED, by
3inserting after the end of Section 1 the following:
 
4    "Section 6. The Illinois Pension Code is amended by
5changing Sections 2-108, 14-103.10, 15-111, and 16-121 and by
6adding Sections 2-105.1, 14-103.40, 15-107.1, and 16-106.4 as
7follows:
 
8    (40 ILCS 5/2-105.1 new)
9    Sec. 2-105.1. Tier I participant."Tier I participant": A
10participant who first became a participant before January 1,
112011.
 
12    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
13    Sec. 2-108. Salary. "Salary": (1) For members of the
14General Assembly, the total compensation paid to the member by
15the State for one year of service, including the additional

 

 

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1amounts, if any, paid to the member as an officer pursuant to
2Section 1 of "An Act in relation to the compensation and
3emoluments of the members of the General Assembly", approved
4December 6, 1907, as now or hereafter amended.
5    (2) For the State executive officers specified in Section
62-105, the total compensation paid to the member for one year
7of service.
8    (3) For members of the System who are participants under
9Section 2-117.1, or who are serving as Clerk or Assistant Clerk
10of the House of Representatives or Secretary or Assistant
11Secretary of the Senate, the total compensation paid to the
12member for one year of service, but not to exceed the salary of
13the highest salaried officer of the General Assembly.
14    However, in the event that federal law results in any
15participant receiving imputed income based on the value of
16group term life insurance provided by the State, such imputed
17income shall not be included in salary for the purposes of this
18Article.
19    Notwithstanding any other provision of this Code, the
20salary of a Tier I participant for the purposes of this Code
21shall not exceed, for periods of service in a term of office
22beginning on or after the effective date of this amendatory Act
23of the 98th General Assembly, the greater of (i) the annual
24contribution and benefit base established for the applicable
25year by the Commissioner of Social Security under the federal
26Social Security Act or (ii) the annual salary of the

 

 

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1participant during the 365 days immediately preceding that
2effective date.
3(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
4    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
5    Sec. 14-103.10. Compensation.
6    (a) For periods of service prior to January 1, 1978, the
7full rate of salary or wages payable to an employee for
8personal services performed if he worked the full normal
9working period for his position, subject to the following
10maximum amounts: (1) prior to July 1, 1951, $400 per month or
11$4,800 per year; (2) between July 1, 1951 and June 30, 1957
12inclusive, $625 per month or $7,500 per year; (3) beginning
13July 1, 1957, no limitation.
14    In the case of service of an employee in a position
15involving part-time employment, compensation shall be
16determined according to the employees' earnings record.
17    (b) For periods of service on and after January 1, 1978,
18all remuneration for personal services performed defined as
19"wages" under the Social Security Enabling Act, including that
20part of such remuneration which is in excess of any maximum
21limitation provided in such Act, and including any benefits
22received by an employee under a sick pay plan in effect before
23January 1, 1981, but excluding lump sum salary payments:
24        (1) for vacation,
25        (2) for accumulated unused sick leave,

 

 

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1        (3) upon discharge or dismissal,
2        (4) for approved holidays.
3    (c) For periods of service on or after December 16, 1978,
4compensation also includes any benefits, other than lump sum
5salary payments made at termination of employment, which an
6employee receives or is eligible to receive under a sick pay
7plan authorized by law.
8    (d) For periods of service after September 30, 1985,
9compensation also includes any remuneration for personal
10services not included as "wages" under the Social Security
11Enabling Act, which is deducted for purposes of participation
12in a program established pursuant to Section 125 of the
13Internal Revenue Code or its successor laws.
14    (e) For members for which Section 1-160 applies for periods
15of service on and after January 1, 2011, all remuneration for
16personal services performed defined as "wages" under the Social
17Security Enabling Act, excluding remuneration that is in excess
18of the annual earnings, salary, or wages of a member or
19participant, as provided in subsection (b-5) of Section 1-160,
20but including any benefits received by an employee under a sick
21pay plan in effect before January 1, 1981. Compensation shall
22exclude lump sum salary payments:
23        (1) for vacation;
24        (2) for accumulated unused sick leave;
25        (3) upon discharge or dismissal; and
26        (4) for approved holidays.

 

 

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1    (f) Notwithstanding any other provision of this Code, the
2compensation of a Tier I member for the purposes of this Code
3shall not exceed, for periods of service on or after the
4effective date of this amendatory Act of the 98th General
5Assembly, the greater of (i) the annual contribution and
6benefit base established for the applicable year by the
7Commissioner of Social Security under the federal Social
8Security Act or (ii) the annual compensation of the member
9during the 365 days immediately preceding that effective date;
10except that this limitation does not apply to a member's
11compensation that is determined under an employment contract or
12collective bargaining agreement that is in effect on the
13effective date of this amendatory Act of the 98th General
14Assembly and has not been amended or renewed after that date.
15(Source: P.A. 96-1490, eff. 1-1-11.)
 
16    (40 ILCS 5/14-103.40 new)
17    Sec. 14-103.40. Tier I member. "Tier I member": A member of
18this System who first became a member or participant before
19January 1, 2011 under any reciprocal retirement system or
20pension fund established under this Code other than a
21retirement system or pension fund established under Article 2,
223, 4, 5, 6, or 18 of this Code.
 
23    (40 ILCS 5/15-107.1 new)
24    Sec. 15-107.1. Tier I participant. "Tier I participant": A

 

 

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1participant under this Article, other than a participant in the
2self-managed plan under Section 15-158.2, who first became a
3member or participant before January 1, 2011 under any
4reciprocal retirement system or pension fund established under
5this Code other than a retirement system or pension fund
6established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
7    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
8    Sec. 15-111. Earnings. "Earnings": An amount paid for
9personal services equal to the sum of the basic compensation
10plus extra compensation for summer teaching, overtime or other
11extra service. For periods for which an employee receives
12service credit under subsection (c) of Section 15-113.1 or
13Section 15-113.2, earnings are equal to the basic compensation
14on which contributions are paid by the employee during such
15periods. Compensation for employment which is irregular,
16intermittent and temporary shall not be considered earnings,
17unless the participant is also receiving earnings from the
18employer as an employee under Section 15-107.
19    With respect to transition pay paid by the University of
20Illinois to a person who was a participating employee employed
21in the fire department of the University of Illinois's
22Champaign-Urbana campus immediately prior to the elimination
23of that fire department:
24        (1) "Earnings" includes transition pay paid to the
25    employee on or after the effective date of this amendatory

 

 

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1    Act of the 91st General Assembly.
2        (2) "Earnings" includes transition pay paid to the
3    employee before the effective date of this amendatory Act
4    of the 91st General Assembly only if (i) employee
5    contributions under Section 15-157 have been withheld from
6    that transition pay or (ii) the employee pays to the System
7    before January 1, 2001 an amount representing employee
8    contributions under Section 15-157 on that transition pay.
9    Employee contributions under item (ii) may be paid in a
10    lump sum, by withholding from additional transition pay
11    accruing before January 1, 2001, or in any other manner
12    approved by the System. Upon payment of the employee
13    contributions on transition pay, the corresponding
14    employer contributions become an obligation of the State.
15    Notwithstanding any other provision of this Code, the
16earnings of a Tier I participant for the purposes of this Code
17shall not exceed, for periods of service on or after the
18effective date of this amendatory Act of the 98th General
19Assembly, the greater of (i) the annual contribution and
20benefit base established for the applicable year by the
21Commissioner of Social Security under the federal Social
22Security Act or (ii) the annual earnings of the participant
23during the 365 days immediately preceding that effective date;
24except that this limitation does not apply to a participant's
25earnings that are determined under an employment contract or
26collective bargaining agreement that is in effect on the

 

 

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1effective date of this amendatory Act of the 98th General
2Assembly and has not been amended or renewed after that date.
3(Source: P.A. 91-887, eff. 7-6-00.)
 
4    (40 ILCS 5/16-106.4 new)
5    Sec. 16-106.4. Tier I member. "Tier I member": A member
6under this Article who first became a member or participant
7before January 1, 2011 under any reciprocal retirement system
8or pension fund established under this Code other than a
9retirement system or pension fund established under Article 2,
103, 4, 5, 6, or 18 of this Code.
 
11    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
12    Sec. 16-121. Salary. "Salary": The actual compensation
13received by a teacher during any school year and recognized by
14the system in accordance with rules of the board. For purposes
15of this Section, "school year" includes the regular school term
16plus any additional period for which a teacher is compensated
17and such compensation is recognized by the rules of the board.
18    Notwithstanding any other provision of this Code, the
19salary of a Tier I member for the purposes of this Code shall
20not exceed, for periods of service on or after the effective
21date of this amendatory Act of the 98th General Assembly, the
22greater of (i) the annual contribution and benefit base
23established for the applicable year by the Commissioner of
24Social Security under the federal Social Security Act or (ii)

 

 

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1the annual salary of the member during the 365 days immediately
2preceding that effective date; except that this limitation does
3not apply to a member's salary that is determined under an
4employment contract or collective bargaining agreement that is
5in effect on the effective date of this amendatory Act of the
698th General Assembly and has not been amended or renewed after
7that date.
8(Source: P.A. 84-1028.)".