Rep. Michael J. Madigan

Filed: 3/7/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1154

2    AMENDMENT NO. ______. Amend House Bill 1154, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 6. The Illinois Pension Code is amended by
6changing Sections 2-108, 14-103.10, 15-111, and 16-121 and by
7adding Sections 2-105.1, 14-103.40, 15-107.1, and 16-106.4 as
8follows:
 
9    (40 ILCS 5/2-105.1 new)
10    Sec. 2-105.1. Tier I participant."Tier I participant": A
11participant who first became a participant before January 1,
122011.
 
13    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
14    Sec. 2-108. Salary. "Salary": (1) For members of the
15General Assembly, the total compensation paid to the member by

 

 

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1the State for one year of service, including the additional
2amounts, if any, paid to the member as an officer pursuant to
3Section 1 of "An Act in relation to the compensation and
4emoluments of the members of the General Assembly", approved
5December 6, 1907, as now or hereafter amended.
6    (2) For the State executive officers specified in Section
72-105, the total compensation paid to the member for one year
8of service.
9    (3) For members of the System who are participants under
10Section 2-117.1, or who are serving as Clerk or Assistant Clerk
11of the House of Representatives or Secretary or Assistant
12Secretary of the Senate, the total compensation paid to the
13member for one year of service, but not to exceed the salary of
14the highest salaried officer of the General Assembly.
15    However, in the event that federal law results in any
16participant receiving imputed income based on the value of
17group term life insurance provided by the State, such imputed
18income shall not be included in salary for the purposes of this
19Article.
20    Notwithstanding any other provision of this Code, the
21salary of a Tier I participant for the purposes of this Code
22shall not exceed, for periods of service in a term of office
23beginning on or after the effective date of this amendatory Act
24of the 98th General Assembly, the greater of (i) the annual
25contribution and benefit base established for the applicable
26year by the Commissioner of Social Security under the federal

 

 

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

 

 

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

 

 

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1        (4) for approved holidays.
2    (f) Notwithstanding any other provision of this Code, the
3compensation of a Tier I member for the purposes of this Code
4shall not exceed, for periods of service on or after the
5effective date of this amendatory Act of the 98th General
6Assembly, the greater of (i) the annual contribution and
7benefit base established for the applicable year by the
8Commissioner of Social Security under the federal Social
9Security Act or (ii) the annual compensation of the member
10during the 365 days immediately preceding that effective date;
11except that this limitation does not apply to a member's
12compensation that is determined under an employment contract or
13collective bargaining agreement that is in effect on the
14effective date of this amendatory Act of the 98th General
15Assembly and has not been amended or renewed after that date.
16(Source: P.A. 96-1490, eff. 1-1-11.)
 
17    (40 ILCS 5/14-103.40 new)
18    Sec. 14-103.40. Tier I member. "Tier I member": A member of
19this System who first became a member or participant before
20January 1, 2011 under any reciprocal retirement system or
21pension fund established under this Code other than a
22retirement system or pension fund established under Article 2,
233, 4, 5, 6, or 18 of this Code.
 
24    (40 ILCS 5/15-107.1 new)

 

 

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1    Sec. 15-107.1. Tier I participant. "Tier I participant": A
2participant under this Article, other than a participant in the
3self-managed plan under Section 15-158.2, who first became a
4member or participant before January 1, 2011 under any
5reciprocal retirement system or pension fund established under
6this Code other than a retirement system or pension fund
7established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
8    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
9    Sec. 15-111. Earnings. "Earnings": An amount paid for
10personal services equal to the sum of the basic compensation
11plus extra compensation for summer teaching, overtime or other
12extra service. For periods for which an employee receives
13service credit under subsection (c) of Section 15-113.1 or
14Section 15-113.2, earnings are equal to the basic compensation
15on which contributions are paid by the employee during such
16periods. Compensation for employment which is irregular,
17intermittent and temporary shall not be considered earnings,
18unless the participant is also receiving earnings from the
19employer as an employee under Section 15-107.
20    With respect to transition pay paid by the University of
21Illinois to a person who was a participating employee employed
22in the fire department of the University of Illinois's
23Champaign-Urbana campus immediately prior to the elimination
24of that fire department:
25        (1) "Earnings" includes transition pay paid to the

 

 

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

 

 

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1collective bargaining agreement that is in effect on the
2effective date of this amendatory Act of the 98th General
3Assembly and has not been amended or renewed after that date.
4(Source: P.A. 91-887, eff. 7-6-00.)
 
5    (40 ILCS 5/16-106.4 new)
6    Sec. 16-106.4. Tier I member. "Tier I member": A member
7under this Article who first became a member or participant
8before January 1, 2011 under any reciprocal retirement system
9or pension fund established under this Code other than a
10retirement system or pension fund established under Article 2,
113, 4, 5, 6, or 18 of this Code.
 
12    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
13    Sec. 16-121. Salary. "Salary": The actual compensation
14received by a teacher during any school year and recognized by
15the system in accordance with rules of the board. For purposes
16of this Section, "school year" includes the regular school term
17plus any additional period for which a teacher is compensated
18and such compensation is recognized by the rules of the board.
19    Notwithstanding any other provision of this Code, the
20salary of a Tier I member for the purposes of this Code shall
21not exceed, for periods of service on or after the effective
22date of this amendatory Act of the 98th General Assembly, the
23greater of (i) the annual contribution and benefit base
24established for the applicable year by the Commissioner of

 

 

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1Social Security under the federal Social Security Act or (ii)
2the annual salary of the member during the 365 days immediately
3preceding that effective date; except that this limitation does
4not apply to a member's salary that is determined under an
5employment contract or collective bargaining agreement that is
6in effect on the effective date of this amendatory Act of the
798th General Assembly and has not been amended or renewed after
8that date.
9(Source: P.A. 84-1028.)
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.37 as follows:
 
12    (30 ILCS 805/8.37 new)
13    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 98th General Assembly.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".