Sen. John J. Cullerton

Filed: 1/9/2017

 

 


 

 


 
09900SB0017sam001LRB099 05660 RPS 52198 a

1
AMENDMENT TO SENATE BILL 17

2    AMENDMENT NO. ______. Amend Senate Bill 17 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Public Labor Relations Act is
5amended by changing Sections 10 and 15 and by adding Section
67.6 as follows:
 
7    (5 ILCS 315/7.6 new)
8    Sec. 7.6. No collective bargaining or interest arbitration
9regarding certain changes to the Illinois Pension Code.
10    (a) Notwithstanding any other provision of this Act,
11employers shall not be required to bargain over matters
12affected by the changes, the impact of the changes, and the
13implementation of the changes to Article 15, 16, or 17 of the
14Illinois Pension Code made by this amendatory Act of the 99th
15General Assembly, which are deemed to be prohibited subjects of
16bargaining. Notwithstanding any provision of this Act, the

 

 

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1changes, impact of the changes, or implementation of the
2changes to Article 15, 16, or 17 of the Illinois Pension Code
3made by this amendatory Act of the 99th General Assembly shall
4not be subject to interest arbitration or any award issued
5pursuant to interest arbitration. The provisions of this
6Section shall not apply to an employment contract or collective
7bargaining agreement that is in effect on the effective date of
8this amendatory Act of the 99th General Assembly. However, any
9such contract or agreement that is modified, amended, renewed,
10or superseded after the effective date of this amendatory Act
11of the 99th General Assembly shall be subject to the provisions
12of this Section. Each employer with active employees
13participating in a retirement system or pension fund
14established under Article 15, 16, or 17 of the Illinois Pension
15Code shall comply with and be subject to the provisions of this
16amendatory Act of the 99th General Assembly. The provisions of
17this Section shall not apply to the ability of any employer and
18employee representative to bargain collectively with regard to
19the pick up of employee contributions pursuant to Section
2015-157.1, 16-152.1, 17-130.1, or 17-130.2 of the Illinois
21Pension Code.
22    (b) Subject to and except for the matters set forth in
23subsection (a) of this Section that are deemed prohibited
24subjects of bargaining, nothing in this Section shall be
25construed as otherwise limiting any of the obligations and
26requirements applicable to employers under any of the

 

 

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1provisions of this Act, including, but not limited to, the
2requirement to bargain collectively with regard to policy
3matters directly affecting wages, hours, and terms and
4conditions of employment as well as the impact thereon upon
5request by employee representatives. Subject to and except for
6the matters set forth in subsection (a) of this Section that
7are deemed prohibited subjects of bargaining, nothing in this
8Section shall be construed as otherwise limiting any of the
9rights of employees or employee representatives under the
10provisions of this Act.
11    (c) In case of any conflict between this Section and any
12other provisions of this Act or any other law, the provisions
13of this Section shall control.
 
14    (5 ILCS 315/10)  (from Ch. 48, par. 1610)
15    Sec. 10. Unfair labor practices.
16    (a) It shall be an unfair labor practice for an employer or
17its agents:
18        (1) to interfere with, restrain or coerce public
19    employees in the exercise of the rights guaranteed in this
20    Act or to dominate or interfere with the formation,
21    existence or administration of any labor organization or
22    contribute financial or other support to it; provided, an
23    employer shall not be prohibited from permitting employees
24    to confer with him during working hours without loss of
25    time or pay;

 

 

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1        (2) to discriminate in regard to hire or tenure of
2    employment or any term or condition of employment in order
3    to encourage or discourage membership in or other support
4    for any labor organization. Nothing in this Act or any
5    other law precludes a public employer from making an
6    agreement with a labor organization to require as a
7    condition of employment the payment of a fair share under
8    paragraph (e) of Section 6;
9        (3) to discharge or otherwise discriminate against a
10    public employee because he has signed or filed an
11    affidavit, petition or charge or provided any information
12    or testimony under this Act;
13        (4) subject to and except as provided in Section 7.6,
14    to refuse to bargain collectively in good faith with a
15    labor organization which is the exclusive representative
16    of public employees in an appropriate unit, including, but
17    not limited to, the discussing of grievances with the
18    exclusive representative; however, no actions of the
19    employer taken to implement or otherwise comply with the
20    provisions of subsection (a) of Section 7.6 shall
21    constitute or give rise to an unfair labor practice under
22    this Act;
23        (5) to violate any of the rules and regulations
24    established by the Board with jurisdiction over them
25    relating to the conduct of representation elections or the
26    conduct affecting the representation elections;

 

 

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1        (6) to expend or cause the expenditure of public funds
2    to any external agent, individual, firm, agency,
3    partnership or association in any attempt to influence the
4    outcome of representational elections held pursuant to
5    Section 9 of this Act; provided, that nothing in this
6    subsection shall be construed to limit an employer's right
7    to internally communicate with its employees as provided in
8    subsection (c) of this Section, to be represented on any
9    matter pertaining to unit determinations, unfair labor
10    practice charges or pre-election conferences in any formal
11    or informal proceeding before the Board, or to seek or
12    obtain advice from legal counsel. Nothing in this paragraph
13    shall be construed to prohibit an employer from expending
14    or causing the expenditure of public funds on, or seeking
15    or obtaining services or advice from, any organization,
16    group, or association established by and including public
17    or educational employers, whether covered by this Act, the
18    Illinois Educational Labor Relations Act or the public
19    employment labor relations law of any other state or the
20    federal government, provided that such services or advice
21    are generally available to the membership of the
22    organization, group or association, and are not offered
23    solely in an attempt to influence the outcome of a
24    particular representational election; or
25        (7) to refuse to reduce a collective bargaining
26    agreement to writing or to refuse to sign such agreement.

 

 

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1    (b) It shall be an unfair labor practice for a labor
2organization or its agents:
3        (1) to restrain or coerce public employees in the
4    exercise of the rights guaranteed in this Act, provided,
5    (i) that this paragraph shall not impair the right of a
6    labor organization to prescribe its own rules with respect
7    to the acquisition or retention of membership therein or
8    the determination of fair share payments and (ii) that a
9    labor organization or its agents shall commit an unfair
10    labor practice under this paragraph in duty of fair
11    representation cases only by intentional misconduct in
12    representing employees under this Act;
13        (2) to restrain or coerce a public employer in the
14    selection of his representatives for the purposes of
15    collective bargaining or the settlement of grievances; or
16        (3) to cause, or attempt to cause, an employer to
17    discriminate against an employee in violation of
18    subsection (a)(2);
19        (4) to refuse to bargain collectively in good faith
20    with a public employer, if it has been designated in
21    accordance with the provisions of this Act as the exclusive
22    representative of public employees in an appropriate unit;
23        (5) to violate any of the rules and regulations
24    established by the boards with jurisdiction over them
25    relating to the conduct of representation elections or the
26    conduct affecting the representation elections;

 

 

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1        (6) to discriminate against any employee because he has
2    signed or filed an affidavit, petition or charge or
3    provided any information or testimony under this Act;
4        (7) to picket or cause to be picketed, or threaten to
5    picket or cause to be picketed, any public employer where
6    an object thereof is forcing or requiring an employer to
7    recognize or bargain with a labor organization of the
8    representative of its employees, or forcing or requiring
9    the employees of an employer to accept or select such labor
10    organization as their collective bargaining
11    representative, unless such labor organization is
12    currently certified as the representative of such
13    employees:
14            (A) where the employer has lawfully recognized in
15        accordance with this Act any labor organization and a
16        question concerning representation may not
17        appropriately be raised under Section 9 of this Act;
18            (B) where within the preceding 12 months a valid
19        election under Section 9 of this Act has been
20        conducted; or
21            (C) where such picketing has been conducted
22        without a petition under Section 9 being filed within a
23        reasonable period of time not to exceed 30 days from
24        the commencement of such picketing; provided that when
25        such a petition has been filed the Board shall
26        forthwith, without regard to the provisions of

 

 

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1        subsection (a) of Section 9 or the absence of a showing
2        of a substantial interest on the part of the labor
3        organization, direct an election in such unit as the
4        Board finds to be appropriate and shall certify the
5        results thereof; provided further, that nothing in
6        this subparagraph shall be construed to prohibit any
7        picketing or other publicity for the purpose of
8        truthfully advising the public that an employer does
9        not employ members of, or have a contract with, a labor
10        organization unless an effect of such picketing is to
11        induce any individual employed by any other person in
12        the course of his employment, not to pick up, deliver,
13        or transport any goods or not to perform any services;
14        or
15        (8) to refuse to reduce a collective bargaining
16    agreement to writing or to refuse to sign such agreement.
17    (c) The expressing of any views, argument, or opinion or
18the dissemination thereof, whether in written, printed,
19graphic, or visual form, shall not constitute or be evidence of
20an unfair labor practice under any of the provisions of this
21Act, if such expression contains no threat of reprisal or force
22or promise of benefit.
23(Source: P.A. 86-412; 87-736.)
 
24    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
25    (Text of Section WITHOUT the changes made by P.A. 98-599,

 

 

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1which has been held unconstitutional)
2    Sec. 15. Act Takes Precedence.
3    (a) In case of any conflict between the provisions of this
4Act and any other law (other than Section 5 of the State
5Employees Group Insurance Act of 1971 and other than the
6changes made to the Illinois Pension Code by this amendatory
7Act of the 96th General Assembly), executive order or
8administrative regulation relating to wages, hours and
9conditions of employment and employment relations, the
10provisions of this Act or any collective bargaining agreement
11negotiated thereunder shall prevail and control. Nothing in
12this Act shall be construed to replace or diminish the rights
13of employees established by Sections 28 and 28a of the
14Metropolitan Transit Authority Act, Sections 2.15 through 2.19
15of the Regional Transportation Authority Act. The provisions of
16this Act are subject to Section 5 of the State Employees Group
17Insurance Act of 1971. Nothing in this Act shall be construed
18to replace the necessity of complaints against a sworn peace
19officer, as defined in Section 2(a) of the Uniform Peace
20Officer Disciplinary Act, from having a complaint supported by
21a sworn affidavit.
22    (b) Except as provided in subsection (a) above, any
23collective bargaining contract between a public employer and a
24labor organization executed pursuant to this Act shall
25supersede any contrary statutes, charters, ordinances, rules
26or regulations relating to wages, hours and conditions of

 

 

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1employment and employment relations adopted by the public
2employer or its agents. Any collective bargaining agreement
3entered into prior to the effective date of this Act shall
4remain in full force during its duration.
5    (c) It is the public policy of this State, pursuant to
6paragraphs (h) and (i) of Section 6 of Article VII of the
7Illinois Constitution, that the provisions of this Act are the
8exclusive exercise by the State of powers and functions which
9might otherwise be exercised by home rule units. Such powers
10and functions may not be exercised concurrently, either
11directly or indirectly, by any unit of local government,
12including any home rule unit, except as otherwise authorized by
13this Act.
14    (d) Notwithstanding any other provision of law, no
15collective bargaining agreement entered into, renewed, or
16extended after the effective date of this amendatory Act of the
1799th General Assembly or any arbitration award issued under
18such collective bargaining agreement may violate or conflict
19with the changes made by this amendatory Act of the 99th
20General Assembly.
21(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
22    Section 10. The Civil Administrative Code of Illinois is
23amended by adding Section 5-647 as follows:
 
24    (20 ILCS 5/5-647 new)

 

 

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1    Sec. 5-647. Future increases in income. A Department must
2not pay, offer, or agree to pay any future increase in income,
3as that term is defined in Section 15-112.1 or 16-121.1 of the
4Illinois Pension Code, to any person in a manner that violates
5Section 15-132.9 or 16-122.9 of the Illinois Pension Code.
 
6    Section 15. The Illinois Pension Code is amended by
7changing Sections 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124,
82-126, 2-134, 2-162, 15-108.1, 15-111, 15-136, 15-155, 15-157,
915-165, 15-198, 16-121, 16-133.1, 16-136.1, 16-152, 16-158,
1016-203, 17-113.4, 17-116, 17-119.2, 17-129, 17-130, 18-131,
11and 18-140 and by adding Sections 2-105.3, 2-107.9, 2-110.3,
122-165.1, 2-166.1, 15-112.1, 15-132.9, 15-200.1, 15-201.1,
1316-107.1, 16-121.1, 16-122.9, 16-205.1, 16-206.1, 17-106.05,
1417-113.5, and 17-115.5 as follows:
 
15    (40 ILCS 5/2-101)  (from Ch. 108 1/2, par. 2-101)
16    Sec. 2-101. Creation of system. A retirement system is
17created to provide retirement annuities, survivor's annuities
18and other benefits for certain members of the General Assembly,
19certain elected state officials, and their beneficiaries.
20    The system shall be known as the "General Assembly
21Retirement System". All its funds and property shall be a trust
22separate from all other entities, maintained for the purpose of
23securing payment of annuities and benefits under this Article.
24    Participation in the retirement system created under this

 

 

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1Article is restricted to persons who became participants before
2the effective date of this amendatory Act of the 99th General
3Assembly. Beginning on that date, the System shall not accept
4any new participants.
5(Source: P.A. 83-1440.)
 
6    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
7    Sec. 2-105. Member. "Member": Members of the General
8Assembly of this State, including persons who enter military
9service while a member of the General Assembly, and any person
10serving as Governor, Lieutenant Governor, Secretary of State,
11Treasurer, Comptroller, or Attorney General for the period of
12service in such office.
13    Any person who has served for 10 or more years as Clerk or
14Assistant Clerk of the House of Representatives, Secretary or
15Assistant Secretary of the Senate, or any combination thereof,
16may elect to become a member of this system while thenceforth
17engaged in such service by filing a written election with the
18board. Any person so electing shall be deemed an active member
19of the General Assembly for the purpose of validating and
20transferring any service credits earned under any of the funds
21and systems established under Articles 3 through 18 of this
22Code.
23    However, notwithstanding any other provision of this
24Article, a person shall not be deemed a member for the purposes
25of this Article unless he or she became a participant of the

 

 

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1System before the effective date of this amendatory Act of the
299th General Assembly.
3(Source: P.A. 85-1008.)
 
4    (40 ILCS 5/2-105.3 new)
5    Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A
6participant who first became a participant before January 1,
72011.
 
8    (40 ILCS 5/2-107)  (from Ch. 108 1/2, par. 2-107)
9    Sec. 2-107. Participant. "Participant": Any member who
10elects to participate; and any former member who elects to
11continue participation under Section 2-117.1, for the duration
12of such continued participation. However, notwithstanding any
13other provision of this Article, a person shall not be deemed a
14participant for the purposes of this Article unless he or she
15became a participant of the System before the effective date of
16this amendatory Act of the 99th General Assembly.
17(Source: P.A. 86-1488.)
 
18    (40 ILCS 5/2-107.9 new)
19    Sec. 2-107.9. Future increase in income. "Future increase
20in income" means an increase in income in any form offered to a
21Tier 1 employee for service under this Article after June 30,
222018 that qualifies as "salary", as defined in Section 2-108,
23or would qualify as "salary" but for the fact that it was

 

 

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1offered to and accepted by a Tier 1 employee under the
2condition set forth in subsection (c) of Section 2-110.3.
 
3    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
4    (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6    Sec. 2-108. Salary. "Salary":
7    (1) For members of the General Assembly, the total
8compensation paid to the member by the State for one year of
9service, including the additional amounts, if any, paid to the
10member as an officer pursuant to Section 1 of "An Act in
11relation to the compensation and emoluments of the members of
12the General Assembly", approved December 6, 1907, as now or
13hereafter amended.
14    (2) For the State executive officers specified in Section
152-105, the total compensation paid to the member for one year
16of service.
17    (3) For members of the System who are participants under
18Section 2-117.1, or who are serving as Clerk or Assistant Clerk
19of the House of Representatives or Secretary or Assistant
20Secretary of the Senate, the total compensation paid to the
21member for one year of service, but not to exceed the salary of
22the highest salaried officer of the General Assembly.
23    However, in the event that federal law results in any
24participant receiving imputed income based on the value of
25group term life insurance provided by the State, such imputed

 

 

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1income shall not be included in salary for the purposes of this
2Article.
3    Notwithstanding any other provision of this Section,
4"salary" does not include any future increase in income that is
5offered for service to a Tier 1 employee under this Article
6pursuant to the condition set forth in subsection (c) of
7Section 2-110.3 and accepted under that condition by a Tier 1
8employee who has made the election under paragraph (2) of
9subsection (a) of Section 2-110.3.
10    Notwithstanding any other provision of this Section,
11"salary" does not include any consideration payment made to a
12Tier 1 employee.
13(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
14    (40 ILCS 5/2-110.3 new)
15    Sec. 2-110.3. Election by Tier 1 employees.
16    (a) Each active Tier 1 employee shall make an irrevocable
17election either:
18        (1) to agree to delay his or her eligibility for
19    automatic annual increases in retirement annuity as
20    provided in subsection (a-1) of Section 2-119.1 and to have
21    the amount of the automatic annual increases in his or her
22    retirement annuity that are otherwise provided for in this
23    Article calculated, instead, as provided in subsection
24    (a-1) of Section 2-119.1; or
25        (2) to not agree to paragraph (1) of this subsection.

 

 

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1    The election required under this subsection (a) shall be
2made by each active Tier 1 employee no earlier than January 1,
32018 and no later than March 1, 2018, except that a person who
4returns to active service as a Tier 1 employee under this
5Article on or after January 1, 2018 and has not yet made an
6election under this Section must make the election under this
7subsection (a) within 60 days after returning to active service
8as a Tier 1 employee.
9    If a Tier 1 employee fails for any reason to make a
10required election under this subsection within the time
11specified, then the employee shall be deemed to have made the
12election under paragraph (2) of this subsection.
13    (a-5) If this Section is enjoined or stayed by an Illinois
14court or a court of competent jurisdiction pending the entry of
15a final and unappealable decision, and this Section is
16determined to be constitutional or otherwise valid by a final
17unappealable decision of an Illinois court or a court of
18competent jurisdiction, then the election procedure set forth
19in subsection (a) of this Section shall commence on the 180th
20calendar day after the date of the issuance of the final
21unappealable decision and shall conclude at the end of the
22270th calendar day after that date.
23    (a-10) All elections under subsection (a) that are made or
24deemed to be made before July 1, 2018 shall take effect on July
251, 2018. Elections that are made or deemed to be made on or
26after July 1, 2018 shall take effect on the first day of the

 

 

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1month following the month in which the election is made or
2deemed to be made.
3    (b) As adequate and legal consideration provided under this
4amendatory Act of the 99th General Assembly for making an
5election under paragraph (1) of subsection (a) of this Section,
6the State of Illinois shall be expressly and irrevocably
7prohibited from offering any future increases in income to a
8Tier 1 employee who has made an election under paragraph (1) of
9subsection (a) of this Section on the condition of not
10constituting salary under Section 2-108.
11    As adequate and legal consideration provided under this
12amendatory Act of the 99th General Assembly for making an
13election under paragraph (1) of subsection (a) of this Section,
14each Tier 1 employee who has made an election under paragraph
15(1) of subsection (a) of this Section shall receive a
16consideration payment equal to 10% of the contributions made by
17or on behalf of the employee under Section 2-126 before the
18effective date of that election. The State Comptroller shall
19pay the consideration payment to the Tier 1 employee out of
20funds appropriated for that purpose under Section 1.9 of the
21State Pension Funds Continuing Appropriation Act. The System
22shall calculate the amount of each consideration payment and
23shall certify to the State Comptroller the amount of the
24consideration payment, together with the name, address, and any
25other available payment information of the Tier 1 employee as
26found in the records of the System.

 

 

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1    (c) A Tier 1 employee who makes the election under
2paragraph (2) of subsection (a) of this Section shall not be
3subject to paragraph (1) of subsection (a) of this Section.
4However, any future increases in income offered for service as
5a member under this Article to a Tier 1 employee who has made
6the election under paragraph (2) of subsection (a) of this
7Section shall be offered expressly and irrevocably on the
8condition of not constituting salary under Section 2-108, and
9the member may not accept any future increase in income that is
10offered without this condition.
11    (d) The System shall make a good faith effort to contact
12each Tier 1 employee subject to this Section. The System shall
13mail information describing the required election to each Tier
141 employee by United States Postal Service mail to his or her
15last known address on file with the System. If the Tier 1
16employee is not responsive to other means of contact, it is
17sufficient for the System to publish the details of any
18required elections on its website or to publish those details
19in a regularly published newsletter or other existing public
20forum.
21    Tier 1 employees who are subject to this Section shall be
22provided with an election packet containing information
23regarding their options, as well as the forms necessary to make
24the required election. Upon request, the System shall offer
25Tier 1 employees an opportunity to receive information from the
26System before making the required election. The information may

 

 

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1be provided through video materials, group presentations,
2individual consultation with a member or authorized
3representative of the System in person or by telephone or other
4electronic means, or any combination of those methods. The
5System shall not provide advice or counseling with respect to
6which election a Tier 1 employee should make or specific to the
7legal or tax circumstances of or consequences to the Tier 1
8employee.
9    The System shall inform Tier 1 employees in the election
10packet required under this subsection that the Tier 1 employee
11may also wish to obtain information and counsel relating to the
12election required under this Section from any other available
13source, including, but not limited to, labor organizations and
14private counsel.
15    In no event shall the System, its staff, or the Board be
16held liable for any information given to a member regarding the
17elections under this Section. The System shall coordinate with
18the Illinois Department of Central Management Services and each
19other retirement system administering an election in
20accordance with this amendatory Act of the 99th General
21Assembly to provide information concerning the impact of the
22election set forth in this Section.
23    (e) Notwithstanding any other provision of law, any future
24increases in income offered by the State of Illinois for
25service as a member must be offered expressly and irrevocably
26on the condition of not constituting "salary" under Section

 

 

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12-108 to any Tier 1 employee who has made an election under
2paragraph (2) of subsection (a) of this Section. A Tier 1
3employee who has made an election under paragraph (2) of
4subsection (a) of this Section shall not accept any future
5increase in income that is offered for service as a member
6under this Article without the condition set forth in this
7subsection.
8    For purposes of legislative intent, the condition set forth
9in this subsection shall be construed in a manner that ensures
10that the condition is not violated or circumvented through any
11contrivance of any kind.
12    (f) A member's election under this Section is not a
13prohibited election under subdivision (j)(1) of Section 1-119
14of this Code.
15    (g) No provision of this Section shall be interpreted in a
16way that would cause the System to cease to be a qualified plan
17under Section 401(a) of the Internal Revenue Code of 1986. The
18provisions of this Section shall be subject to and implemented
19in a manner that complies with Section 11 of Article IV of the
20Illinois Constitution.
21    (h) If an election created by this amendatory Act in any
22other Article of this Code or any change deriving from that
23election is determined to be unconstitutional or otherwise
24invalid by a final unappealable decision of an Illinois court
25or a court of competent jurisdiction, the invalidity of that
26provision shall not in any way affect the validity of this

 

 

09900SB0017sam001- 21 -LRB099 05660 RPS 52198 a

1Section or the changes deriving from the election required
2under this Section.
 
3    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
4    (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6    Sec. 2-119.1. Automatic increase in retirement annuity.
7    (a) Except as provided in subsection (a-1), a A participant
8who retires after June 30, 1967, and who has not received an
9initial increase under this Section before the effective date
10of this amendatory Act of 1991, shall, in January or July next
11following the first anniversary of retirement, whichever
12occurs first, and in the same month of each year thereafter,
13but in no event prior to age 60, have the amount of the
14originally granted retirement annuity increased as follows:
15for each year through 1971, 1 1/2%; for each year from 1972
16through 1979, 2%; and for 1980 and each year thereafter, 3%.
17Annuitants who have received an initial increase under this
18subsection prior to the effective date of this amendatory Act
19of 1991 shall continue to receive their annual increases in the
20same month as the initial increase.
21    (a-1) Notwithstanding any other provision of this Article,
22for a Tier 1 employee who made the election under paragraph (1)
23of subsection (a) of Section 2-110.3:
24        (1) The initial increase in retirement annuity under
25    this Section shall occur on the January 1 occurring either

 

 

09900SB0017sam001- 22 -LRB099 05660 RPS 52198 a

1    on or after the attainment of age 67 or the fifth
2    anniversary of the annuity start date, whichever is
3    earlier.
4        (2) The amount of each automatic annual increase in
5    retirement annuity occurring on or after the effective date
6    of that election shall be calculated as a percentage of the
7    originally granted retirement annuity, equal to 3% or
8    one-half the annual unadjusted percentage increase (but
9    not less than zero) in the consumer price index-u for the
10    12 months ending with the September preceding each November
11    1, whichever is less. If the annual unadjusted percentage
12    change in the consumer price index-u for the 12 months
13    ending with the September preceding each November 1 is zero
14    or there is a decrease, then the annuity shall not be
15    increased.
16    For the purposes of this Section, "consumer price index-u"
17means the index published by the Bureau of Labor Statistics of
18the United States Department of Labor that measures the average
19change in prices of goods and services purchased by all urban
20consumers, United States city average, all items, 1982-84 =
21100. The new amount resulting from each annual adjustment shall
22be determined by the Public Pension Division of the Department
23of Insurance and made available to the board of the retirement
24system by November 1 of each year.
25    (b) Beginning January 1, 1990, for eligible participants
26who remain in service after attaining 20 years of creditable

 

 

09900SB0017sam001- 23 -LRB099 05660 RPS 52198 a

1service, the 3% increases provided under subsection (a) shall
2begin to accrue on the January 1 next following the date upon
3which the participant (1) attains age 55, or (2) attains 20
4years of creditable service, whichever occurs later, and shall
5continue to accrue while the participant remains in service;
6such increases shall become payable on January 1 or July 1,
7whichever occurs first, next following the first anniversary of
8retirement. For any person who has service credit in the System
9for the entire period from January 15, 1969 through December
1031, 1992, regardless of the date of termination of service, the
11reference to age 55 in clause (1) of this subsection (b) shall
12be deemed to mean age 50.
13    This subsection (b) does not apply to any person who first
14becomes a member of the System after August 8, 2003 (the
15effective date of Public Act 93-494) this amendatory Act of the
1693rd General Assembly.
17    (b-5) Notwithstanding any other provision of this Article,
18a participant who first becomes a participant on or after
19January 1, 2011 (the effective date of Public Act 96-889)
20shall, in January or July next following the first anniversary
21of retirement, whichever occurs first, and in the same month of
22each year thereafter, but in no event prior to age 67, have the
23amount of the retirement annuity then being paid increased by
243% or the annual unadjusted percentage increase in the Consumer
25Price Index for All Urban Consumers as determined by the Public
26Pension Division of the Department of Insurance under

 

 

09900SB0017sam001- 24 -LRB099 05660 RPS 52198 a

1subsection (a) of Section 2-108.1, whichever is less.
2    (c) The foregoing provisions relating to automatic
3increases are not applicable to a participant who retires
4before having made contributions (at the rate prescribed in
5Section 2-126) for automatic increases for less than the
6equivalent of one full year. However, in order to be eligible
7for the automatic increases, such a participant may make
8arrangements to pay to the system the amount required to bring
9the total contributions for the automatic increase to the
10equivalent of one year's contributions based upon his or her
11last salary.
12    (d) A participant who terminated service prior to July 1,
131967, with at least 14 years of service is entitled to an
14increase in retirement annuity beginning January, 1976, and to
15additional increases in January of each year thereafter.
16    The initial increase shall be 1 1/2% of the originally
17granted retirement annuity multiplied by the number of full
18years that the annuitant was in receipt of such annuity prior
19to January 1, 1972, plus 2% of the originally granted
20retirement annuity for each year after that date. The
21subsequent annual increases shall be at the rate of 2% of the
22originally granted retirement annuity for each year through
231979 and at the rate of 3% for 1980 and thereafter.
24    (e) Beginning January 1, 1990, and except as provided in
25subsection (a-1), all automatic annual increases payable under
26this Section shall be calculated as a percentage of the total

 

 

09900SB0017sam001- 25 -LRB099 05660 RPS 52198 a

1annuity payable at the time of the increase, including previous
2increases granted under this Article.
3(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
4    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
5    (Text of Section WITHOUT the changes made by P.A. 98-599,
6which has been held unconstitutional)
7    Sec. 2-124. Contributions by State.
8    (a) The State shall make contributions to the System by
9appropriations of amounts which, together with the
10contributions of participants, interest earned on investments,
11and other income will meet the cost of maintaining and
12administering the System on a 90% funded basis in accordance
13with actuarial recommendations.
14    (b) The Board shall determine the amount of State
15contributions required for each fiscal year on the basis of the
16actuarial tables and other assumptions adopted by the Board and
17the prescribed rate of interest, using the formula in
18subsection (c).
19    (c) For State fiscal years 2018 through 2045 (except as
20otherwise provided for fiscal year 2019), the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of
24the total actuarial liabilities of the System by the end of
25State fiscal year 2045. In making these determinations, the

 

 

09900SB0017sam001- 26 -LRB099 05660 RPS 52198 a

1required State contribution shall be calculated each year as a
2level percentage of total payroll, including payroll that is
3not deemed pensionable, 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 year 2019:
7        (1) The initial calculation and certification shall be
8    based on the amount determined above.
9        (2) For purposes of the recertification due on or
10    before May 1, 2018, the recalculation of the required State
11    contribution for fiscal year 2019 shall take into account
12    the effect on the System's liabilities of the elections
13    made under Section 2-110.3.
14        (3) For purposes of the recertification due on or
15    before October 1, 2018, the total required State
16    contribution for fiscal year 2019 shall be reduced by the
17    amount of the consideration payments made to Tier 1
18    employees who made the election under paragraph (1) of
19    subsection (a) of Section 2-110.3.
20    Beginning in State fiscal year 2018, any increase or
21decrease in State contribution over the prior fiscal year due
22exclusively to changes in actuarial or investment assumptions
23adopted by the Board shall be included in the State
24contribution to the System, as a percentage of the applicable
25employee payroll, and shall be increased in equal annual
26increments so that by the State fiscal year occurring 5 years

 

 

09900SB0017sam001- 27 -LRB099 05660 RPS 52198 a

1after the adoption of the actuarial or investment assumptions,
2the State is contributing at the rate otherwise required under
3this Section.
4    If Section 2-110.3 is determined to be unconstitutional or
5otherwise invalid by a final unappealable decision of an
6Illinois court or a court of competent jurisdiction, then the
7changes made to this Section by this amendatory Act of the 99th
8General Assembly shall not take effect and are repealed by
9operation of law.
10    For State fiscal years 2012 through 2017 2045, the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the total actuarial liabilities of the System by the end of
15State fiscal year 2045. In making these determinations, the
16required State contribution shall be calculated each year as a
17level percentage of payroll over the years remaining to and
18including fiscal year 2045 and shall be determined under the
19projected unit credit actuarial cost method.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2006 is

 

 

09900SB0017sam001- 28 -LRB099 05660 RPS 52198 a

1$4,157,000.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2007 is
4$5,220,300.
5    For each of State fiscal years 2008 through 2009, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8from the required State contribution for State fiscal year
92007, so that by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2010 is
13$10,454,000 and shall be made from the proceeds of bonds sold
14in fiscal year 2010 pursuant to Section 7.2 of the General
15Obligation Bond Act, less (i) the pro rata share of bond sale
16expenses determined by the System's share of total bond
17proceeds, (ii) any amounts received from the General Revenue
18Fund in fiscal year 2010, and (iii) any reduction in bond
19proceeds due to the issuance of discounted bonds, if
20applicable.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2011 is
23the amount recertified by the System on or before April 1, 2011
24pursuant to Section 2-134 and shall be made from the proceeds
25of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
26the General Obligation Bond Act, less (i) the pro rata share of

 

 

09900SB0017sam001- 29 -LRB099 05660 RPS 52198 a

1bond sale expenses determined by the System's share of total
2bond proceeds, (ii) any amounts received from the General
3Revenue Fund in fiscal year 2011, and (iii) any reduction in
4bond proceeds due to the issuance of discounted bonds, if
5applicable.
6    Beginning in State fiscal year 2046, the minimum State
7contribution for each fiscal year shall be the amount needed to
8maintain the total assets of the System at 90% of the total
9actuarial liabilities of the System.
10    Amounts received by the System pursuant to Section 25 of
11the Budget Stabilization Act or Section 8.12 of the State
12Finance Act in any fiscal year do not reduce and do not
13constitute payment of any portion of the minimum State
14contribution required under this Article in that fiscal year.
15Such amounts shall not reduce, and shall not be included in the
16calculation of, the required State contributions under this
17Article in any future year until the System has reached a
18funding ratio of at least 90%. A reference in this Article to
19the "required State contribution" or any substantially similar
20term does not include or apply to any amounts payable to the
21System under Section 25 of the Budget Stabilization Act.
22    Notwithstanding any other provision of this Section, the
23required State contribution for State fiscal year 2005 and for
24fiscal year 2008 and each fiscal year thereafter, as calculated
25under this Section and certified under Section 2-134, shall not
26exceed an amount equal to (i) the amount of the required State

 

 

09900SB0017sam001- 30 -LRB099 05660 RPS 52198 a

1contribution that would have been calculated under this Section
2for that fiscal year if the System had not received any
3payments under subsection (d) of Section 7.2 of the General
4Obligation Bond Act, minus (ii) the portion of the State's
5total debt service payments for that fiscal year on the bonds
6issued in fiscal year 2003 for the purposes of that Section
77.2, as determined and certified by the Comptroller, that is
8the same as the System's portion of the total moneys
9distributed under subsection (d) of Section 7.2 of the General
10Obligation Bond Act. In determining this maximum for State
11fiscal years 2008 through 2010, however, the amount referred to
12in item (i) shall be increased, as a percentage of the
13applicable employee payroll, in equal increments calculated
14from the sum of the required State contribution for State
15fiscal year 2007 plus the applicable portion of the State's
16total debt service payments for fiscal year 2007 on the bonds
17issued in fiscal year 2003 for the purposes of Section 7.2 of
18the General Obligation Bond Act, so that, by State fiscal year
192011, the State is contributing at the rate otherwise required
20under this Section.
21    (d) For purposes of determining the required State
22contribution to the System, the value of the System's assets
23shall be equal to the actuarial value of the System's assets,
24which shall be calculated as follows:
25    As of June 30, 2008, the actuarial value of the System's
26assets shall be equal to the market value of the assets as of

 

 

09900SB0017sam001- 31 -LRB099 05660 RPS 52198 a

1that date. In determining the actuarial value of the System's
2assets for fiscal years after June 30, 2008, any actuarial
3gains or losses from investment return incurred in a fiscal
4year shall be recognized in equal annual amounts over the
55-year period following that fiscal year.
6    (e) For purposes of determining the required State
7contribution to the system for a particular year, the actuarial
8value of assets shall be assumed to earn a rate of return equal
9to the system's actuarially assumed rate of return.
10(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1196-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
127-13-12.)
 
13    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
14    (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16    Sec. 2-126. Contributions by participants.
17    (a) Each participant shall contribute toward the cost of
18his or her retirement annuity a percentage of each payment of
19salary received by him or her for service as a member as
20follows: for service between October 31, 1947 and January 1,
211959, 5%; for service between January 1, 1959 and June 30,
221969, 6%; for service between July 1, 1969 and January 10,
231973, 6 1/2%; for service after January 10, 1973, 7%; for
24service after December 31, 1981, 8 1/2%.
25    (b) Beginning August 2, 1949, each male participant, and

 

 

09900SB0017sam001- 32 -LRB099 05660 RPS 52198 a

1from July 1, 1971, each female participant shall contribute
2towards the cost of the survivor's annuity 2% of salary.
3    A participant who has no eligible survivor's annuity
4beneficiary may elect to cease making contributions for
5survivor's annuity under this subsection. A survivor's annuity
6shall not be payable upon the death of a person who has made
7this election, unless prior to that death the election has been
8revoked and the amount of the contributions that would have
9been paid under this subsection in the absence of the election
10is paid to the System, together with interest at the rate of 4%
11per year from the date the contributions would have been made
12to the date of payment.
13    (c) Beginning July 1, 1967, each participant shall
14contribute 1% of salary towards the cost of automatic increase
15in annuity provided in Section 2-119.1. These contributions
16shall be made concurrently with contributions for retirement
17annuity purposes.
18    (d) In addition, each participant serving as an officer of
19the General Assembly shall contribute, for the same purposes
20and at the same rates as are required of a regular participant,
21on each additional payment received as an officer. If the
22participant serves as an officer for at least 2 but less than 4
23years, he or she shall contribute an amount equal to the amount
24that would have been contributed had the participant served as
25an officer for 4 years. Persons who serve as officers in the
2687th General Assembly but cannot receive the additional payment

 

 

09900SB0017sam001- 33 -LRB099 05660 RPS 52198 a

1to officers because of the ban on increases in salary during
2their terms may nonetheless make contributions based on those
3additional payments for the purpose of having the additional
4payments included in their highest salary for annuity purposes;
5however, persons electing to make these additional
6contributions must also pay an amount representing the
7corresponding employer contributions, as calculated by the
8System.
9    (e) Notwithstanding any other provision of this Article,
10the required contribution of a participant who first becomes a
11participant on or after January 1, 2011 shall not exceed the
12contribution that would be due under this Article if that
13participant's highest salary for annuity purposes were
14$106,800, plus any increases in that amount under Section
152-108.1.
16    (f) Beginning July 1, 2018 or the effective date of the
17Tier 1 employee's election under paragraph (1) of subsection
18(a) of Section 2-110.3, whichever is later, in lieu of the
19contributions otherwise required under this Section, each Tier
201 employee who made the election under paragraph (1) of
21subsection (a) of Section 2-110.3 shall contribute 8.5% of each
22payment of salary toward the cost of his or her retirement
23annuity and 1.85% of each payment of salary toward the cost of
24the survivor's annuity.
25(Source: P.A. 96-1490, eff. 1-1-11.)
 

 

 

09900SB0017sam001- 34 -LRB099 05660 RPS 52198 a

1    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
2    (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 2-134. To certify required State contributions and
5submit vouchers.
6    (a) The Board shall certify to the Governor on or before
7December 15 of each year until December 15, 2011 the amount of
8the required State contribution to the System for the next
9fiscal year and shall specifically identify the System's
10projected State normal cost for that fiscal year. The
11certification shall include a copy of the actuarial
12recommendations upon which it is based and shall specifically
13identify the System's projected State normal cost for that
14fiscal year.
15    On or before November 1 of each year, beginning November 1,
162012, the Board shall submit to the State Actuary, the
17Governor, and the General Assembly a proposed certification of
18the amount of the required State contribution to the System for
19the next fiscal year, along with all of the actuarial
20assumptions, calculations, and data upon which that proposed
21certification is based. On or before January 1 of each year
22beginning January 1, 2013, the State Actuary shall issue a
23preliminary report concerning the proposed certification and
24identifying, if necessary, recommended changes in actuarial
25assumptions that the Board must consider before finalizing its
26certification of the required State contributions. On or before

 

 

09900SB0017sam001- 35 -LRB099 05660 RPS 52198 a

1January 15, 2013 and every January 15 thereafter, the Board
2shall certify to the Governor and the General Assembly the
3amount of the required State contribution for the next fiscal
4year. The Board's certification must note any deviations from
5the State Actuary's recommended changes, the reason or reasons
6for not following the State Actuary's recommended changes, and
7the fiscal impact of not following the State Actuary's
8recommended changes on the required State contribution.
9    On or before May 1, 2004, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2005, taking
12into account the amounts appropriated to and received by the
13System under subsection (d) of Section 7.2 of the General
14Obligation Bond Act.
15    On or before July 1, 2005, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2006, taking
18into account the changes in required State contributions made
19by this amendatory Act of the 94th General Assembly.
20    On or before April 1, 2011, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2011, applying
23the changes made by Public Act 96-889 to the System's assets
24and liabilities as of June 30, 2009 as though Public Act 96-889
25was approved on that date.
26    As soon as practical after the effective date of this

 

 

09900SB0017sam001- 36 -LRB099 05660 RPS 52198 a

1amendatory Act of the 99th General Assembly, the State Actuary
2and the Board shall recalculate and recertify to the Governor
3and the General Assembly the amount of the State contribution
4to the System for State fiscal year 2018, taking into account
5the changes in required State contributions made by this
6amendatory Act of the 99th General Assembly.
7    On or before May 1, 2018, the Board shall recalculate and
8recertify to the Governor and the General Assembly the amount
9of the required State contribution to the System for State
10fiscal year 2019, taking into account the effect on the
11System's liabilities of the elections made under Section
122-110.3.
13    On or before October 1, 2018, the Board shall recalculate
14and recertify to the Governor and the General Assembly the
15amount of the required State contribution to the System for
16State fiscal year 2019, taking into account the reduction
17specified under item (3) of subsection (c) of Section 2-124.
18    (b) Beginning in State fiscal year 1996, on or as soon as
19possible after the 15th day of each month the Board shall
20submit vouchers for payment of State contributions to the
21System, in a total monthly amount of one-twelfth of the
22required annual State contribution certified under subsection
23(a). From the effective date of this amendatory Act of the 93rd
24General Assembly through June 30, 2004, the Board shall not
25submit vouchers for the remainder of fiscal year 2004 in excess
26of the fiscal year 2004 certified contribution amount

 

 

09900SB0017sam001- 37 -LRB099 05660 RPS 52198 a

1determined under this Section after taking into consideration
2the transfer to the System under subsection (d) of Section
36z-61 of the State Finance Act. These vouchers shall be paid by
4the State Comptroller and Treasurer by warrants drawn on the
5funds appropriated to the System for that fiscal year. If in
6any month the amount remaining unexpended from all other
7appropriations to the System for the applicable fiscal year
8(including the appropriations to the System under Section 8.12
9of the State Finance Act and Section 1 of the State Pension
10Funds Continuing Appropriation Act) is less than the amount
11lawfully vouchered under this Section, the difference shall be
12paid from the General Revenue Fund under the continuing
13appropriation authority provided in Section 1.1 of the State
14Pension Funds Continuing Appropriation Act.
15    (c) The full amount of any annual appropriation for the
16System for State fiscal year 1995 shall be transferred and made
17available to the System at the beginning of that fiscal year at
18the request of the Board. Any excess funds remaining at the end
19of any fiscal year from appropriations shall be retained by the
20System as a general reserve to meet the System's accrued
21liabilities.
22(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2397-694, eff. 6-18-12.)
 
24    (40 ILCS 5/2-162)
25    (Text of Section WITHOUT the changes made by P.A. 98-599,

 

 

09900SB0017sam001- 38 -LRB099 05660 RPS 52198 a

1which has been held unconstitutional)
2    Sec. 2-162. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article, that results from an amendment
8to this Code that takes effect after the effective date of this
9amendatory Act of the 94th General Assembly. "New benefit
10increase", however, does not include any benefit increase
11resulting from the changes made to this Article by this
12amendatory Act of the 99th General Assembly.
13    (b) Notwithstanding any other provision of this Code or any
14subsequent amendment to this Code, every new benefit increase
15is subject to this Section and shall be deemed to be granted
16only in conformance with and contingent upon compliance with
17the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional
26funding has been provided for the new benefit increase and

 

 

09900SB0017sam001- 39 -LRB099 05660 RPS 52198 a

1shall report its analysis to the Public Pension Division of the
2Department of Financial and Professional Regulation. A new
3benefit increase created by a Public Act that does not include
4the additional funding required under this subsection is null
5and void. If the Public Pension Division determines that the
6additional funding provided for a new benefit increase under
7this subsection is or has become inadequate, it may so certify
8to the Governor and the State Comptroller and, in the absence
9of corrective action by the General Assembly, the new benefit
10increase shall expire at the end of the fiscal year in which
11the certification is made.
12    (d) Every new benefit increase shall expire 5 years after
13its effective date or on such earlier date as may be specified
14in the language enacting the new benefit increase or provided
15under subsection (c). This does not prevent the General
16Assembly from extending or re-creating a new benefit increase
17by law.
18    (e) Except as otherwise provided in the language creating
19the new benefit increase, a new benefit increase that expires
20under this Section continues to apply to persons who applied
21and qualified for the affected benefit while the new benefit
22increase was in effect and to the affected beneficiaries and
23alternate payees of such persons, but does not apply to any
24other person, including without limitation a person who
25continues in service after the expiration date and did not
26apply and qualify for the affected benefit while the new

 

 

09900SB0017sam001- 40 -LRB099 05660 RPS 52198 a

1benefit increase was in effect.
2(Source: P.A. 94-4, eff. 6-1-05.)
 
3    (40 ILCS 5/2-165.1 new)
4    Sec. 2-165.1. Defined contribution plan.
5    (a) By July 1, 2018, the System shall prepare and implement
6a voluntary defined contribution plan for up to 5% of eligible
7active Tier 1 employees. The System shall determine the 5% cap
8by the number of active Tier 1 employees on the effective date
9of this Section. The defined contribution plan developed under
10this Section shall be a plan that aggregates employer and
11employee contributions in individual participant accounts
12which, after meeting any other requirements, are used for
13payouts after retirement in accordance with this Section and
14any other applicable laws.
15    As used in this Section, "defined benefit plan" means the
16retirement plan available under this Article to Tier 1
17employees who have not made the election authorized under this
18Section.
19        (1) Under the defined contribution plan, an active Tier
20    1 employee of this System could elect to cease accruing
21    benefits in the defined benefit plan under this Article and
22    begin accruing benefits for future service in the defined
23    contribution plan. Service credit under the defined
24    contribution plan may be used for determining retirement
25    eligibility under the defined benefit plan.

 

 

09900SB0017sam001- 41 -LRB099 05660 RPS 52198 a

1        (2) Participants in the defined contribution plan
2    shall pay employee contributions at the same rate as Tier 1
3    employees in this System who do not participate in the
4    defined contribution plan.
5        (3) State contributions shall be paid into the accounts
6    of all participants in the defined contribution plan at a
7    uniform rate, expressed as a percentage of compensation and
8    determined for each year. This rate shall be no higher than
9    the employer's normal cost for Tier 1 employees in the
10    defined benefit plan for that year, as determined by the
11    System and expressed as a percentage of compensation, and
12    shall be no lower than 3% of compensation. The State shall
13    adjust this rate annually.
14        (4) The defined contribution plan shall require 5 years
15    of participation in the defined contribution plan before
16    vesting in State contributions. If the participant fails to
17    vest in them, the State contributions, and the earnings
18    thereon, shall be forfeited.
19        (5) The defined contribution plan may provide for
20    participants in the plan to be eligible for defined
21    disability benefits. If it does, the System shall reduce
22    the employee contributions credited to the participant's
23    defined contribution plan account by an amount determined
24    by the System to cover the cost of offering such benefits.
25        (6) The defined contribution plan shall provide a
26    variety of options for investments. These options shall

 

 

09900SB0017sam001- 42 -LRB099 05660 RPS 52198 a

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

 

 

09900SB0017sam001- 43 -LRB099 05660 RPS 52198 a

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

 

 

09900SB0017sam001- 44 -LRB099 05660 RPS 52198 a

1eligible to participate in the defined contribution plan that
2they may also wish to obtain information and counsel relating
3to their option from any other available source, including but
4not limited to labor organizations, private counsel, and
5financial advisors.
6    (e) In no event shall the System, its staff, its authorized
7representatives, or the Board be liable for any information
8given to an employee under this Section. The System may
9coordinate with the Illinois Department of Central Management
10Services and other retirement systems administering a defined
11contribution plan in accordance with this amendatory Act of the
1299th General Assembly to provide information concerning the
13impact of the option set forth in this Section.
14    (f) Notwithstanding any other provision of this Section, no
15person shall begin participating in the defined contribution
16plan until it has attained qualified plan status and received
17all necessary approvals from the U.S. Internal Revenue Service.
18    (g) The System shall report on its progress under this
19Section, including the available details of the defined
20contribution plan and the System's plans for informing eligible
21Tier 1 employees about the plan, to the Governor and the
22General Assembly on or before January 15, 2018.
23    (h) The Illinois State Board of Investments shall be the
24plan sponsor for the defined contribution plan established
25under this Section.
26    (i) The intent of this amendatory Act of the 99th General

 

 

09900SB0017sam001- 45 -LRB099 05660 RPS 52198 a

1Assembly is to ensure that the State's normal cost of
2participation in the defined contribution plan is similar, and
3if possible equal, to the State's normal cost of participation
4in the defined benefit plan, unless a lower State's normal cost
5is necessary to ensure cost neutrality.
6    (j) If Section 2-110.3 is determined to be unconstitutional
7or otherwise invalid by a final unappealable decision of an
8Illinois court or a court of competent jurisdiction, then this
9Section shall not take effect and is repealed by operation of
10law.
 
11    (40 ILCS 5/2-166.1 new)
12    Sec. 2-166.1. Defined contribution plan; termination. If
13the defined contribution plan is terminated or becomes
14inoperative pursuant to law, then each participant in the plan
15shall automatically be deemed to have been a contributing Tier
161 employee in the System's defined benefit plan during the time
17in which he or she participated in the defined contribution
18plan, and for that purpose the System shall be entitled to
19recover the amounts in the participant's defined contribution
20accounts.
 
21    (40 ILCS 5/15-108.1)
22    Sec. 15-108.1. Tier 1 member; Tier 1 employee.
23    "Tier 1 member": A participant or an annuitant of a
24retirement annuity under this Article, other than a participant

 

 

09900SB0017sam001- 46 -LRB099 05660 RPS 52198 a

1in the self-managed plan under Section 15-158.2, who first
2became a participant or member before January 1, 2011 under any
3reciprocal retirement system or pension fund established under
4this Code, other than a retirement system or pension fund
5established under Articles 2, 3, 4, 5, 6, or 18 of this Code.
6"Tier 1 member" includes a person who first became a
7participant under this System before January 1, 2011 and who
8accepts a refund and is subsequently reemployed by an employer
9on or after January 1, 2011.
10    "Tier 1 employee": An employee under this Article, other
11than a participant in the self-managed plan under Section
1215-158.2, who first became a member or participant before
13January 1, 2011 under any reciprocal retirement system or
14pension fund established under this Code other than a
15retirement system or pension fund established under Article 2,
163, 4, 5, 6, or 18 of this Code. However, for the purposes of the
17election under Section 15-132.9, "Tier 1 employee" does not
18include a participant under this Article who would qualify as a
19Tier 1 employee but who has made an irrevocable election on or
20before June 1, 2017 to retire from service pursuant to the
21terms of a collective bargaining agreement in effect on June 1,
222017, excluding any extension, amendment, or renewal of that
23agreement on or after that date, and has notified the System of
24that election.
25(Source: P.A. 98-92, eff. 7-16-13.)
 

 

 

09900SB0017sam001- 47 -LRB099 05660 RPS 52198 a

1    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
2    Sec. 15-111. Earnings.
3    (a) "Earnings": Subject to Section 15-111.5, an amount paid
4for personal services equal to the sum of the basic
5compensation plus extra compensation for summer teaching,
6overtime or other extra service. For periods for which an
7employee receives service credit under subsection (c) of
8Section 15-113.1 or Section 15-113.2, earnings are equal to the
9basic compensation on which contributions are paid by the
10employee during such periods. Compensation for employment
11which is irregular, intermittent and temporary shall not be
12considered earnings, unless the participant is also receiving
13earnings from the employer as an employee under Section 15-107.
14    With respect to transition pay paid by the University of
15Illinois to a person who was a participating employee employed
16in the fire department of the University of Illinois's
17Champaign-Urbana campus immediately prior to the elimination
18of that fire department:
19        (1) "Earnings" includes transition pay paid to the
20    employee on or after the effective date of this amendatory
21    Act of the 91st General Assembly.
22        (2) "Earnings" includes transition pay paid to the
23    employee before the effective date of this amendatory Act
24    of the 91st General Assembly only if (i) employee
25    contributions under Section 15-157 have been withheld from
26    that transition pay or (ii) the employee pays to the System

 

 

09900SB0017sam001- 48 -LRB099 05660 RPS 52198 a

1    before January 1, 2001 an amount representing employee
2    contributions under Section 15-157 on that transition pay.
3    Employee contributions under item (ii) may be paid in a
4    lump sum, by withholding from additional transition pay
5    accruing before January 1, 2001, or in any other manner
6    approved by the System. Upon payment of the employee
7    contributions on transition pay, the corresponding
8    employer contributions become an obligation of the State.
9    (a-5) Notwithstanding any other provision of this Section,
10"earnings" does not include any future increase in income that
11is offered for service by an employer to a Tier 1 employee
12under this Article pursuant to the condition set forth in
13subsection (c) of Section 15-132.9 and accepted under that
14condition by a Tier 1 employee who has made the election under
15paragraph (2) of subsection (a) of Section 15-132.9.
16    (a-10) Notwithstanding any other provision of this
17Section, "earnings" does not include any consideration payment
18made to a Tier 1 employee.
19    (b) For a Tier 2 member, the annual earnings shall not
20exceed $106,800; however, that amount shall annually
21thereafter be increased by the lesser of (i) 3% of that amount,
22including all previous adjustments, or (ii) one half the annual
23unadjusted percentage increase (but not less than zero) in the
24consumer price index-u for the 12 months ending with the
25September preceding each November 1, including all previous
26adjustments.

 

 

09900SB0017sam001- 49 -LRB099 05660 RPS 52198 a

1    For the purposes of this Section, "consumer price index u"
2means the index published by the Bureau of Labor Statistics of
3the United States Department of Labor that measures the average
4change in prices of goods and services purchased by all urban
5consumers, United States city average, all items, 1982-84 =
6100. The new amount resulting from each annual adjustment shall
7be determined by the Public Pension Division of the Department
8of Insurance and made available to the boards of the retirement
9systems and pension funds by November 1 of each year.
10    (c) With each submission of payroll information in the
11manner prescribed by the System, the employer shall certify
12that the payroll information is correct and complies with all
13applicable State and federal laws.
14(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
 
15    (40 ILCS 5/15-112.1 new)
16    Sec. 15-112.1. Future increase in income. "Future increase
17in income" means an increase in income in any form offered by
18an employer to a Tier 1 employee for service under this Article
19after June 30, 2018 that qualifies as "earnings", as defined in
20Section 15-111, or would qualify as "earnings" but for the fact
21that it was offered to and accepted by a Tier 1 employee under
22the condition set forth in subsection (c) of Section 15-132.9.
23The term "future increase in income" does not include an
24increase in income in any form that is paid to a Tier 1
25employee under an employment contract or a collective

 

 

09900SB0017sam001- 50 -LRB099 05660 RPS 52198 a

1bargaining agreement that is in effect on the effective date of
2this Section, but does include an increase in income in any
3form pursuant to an extension, amendment, or renewal of any
4such employment contract or collective bargaining agreement on
5or after the effective date of this Section.
 
6    (40 ILCS 5/15-132.9 new)
7    Sec. 15-132.9. Election by Tier 1 employees.
8    (a) Each active Tier 1 employee shall make an irrevocable
9election either:
10        (1) to agree to delay his or her eligibility for
11    automatic annual increases in retirement annuity as
12    provided in subsection (d-1) of Section 15-136 and to have
13    the amount of the automatic annual increases in his or her
14    retirement annuity that are otherwise provided for in this
15    Article calculated, instead, as provided in subsection
16    (d-1) of Section 15-136; or
17        (2) to not agree to the provisions of paragraph (1) of
18    this subsection.
19    The election required under this subsection (a) shall be
20made by each active Tier 1 employee no earlier than January 1,
212018 and no later than March 31, 2018, except that:
22        (i) a person who becomes a Tier 1 employee under this
23    Article on or after January 1, 2018 must make the election
24    under this subsection (a) within 60 days after becoming a
25    Tier 1 employee; and

 

 

09900SB0017sam001- 51 -LRB099 05660 RPS 52198 a

1        (ii) a person who returns to active service as a Tier 1
2    employee under this Article on or after January 1, 2018 and
3    has not yet made an election under this Section must make
4    the election under this subsection (a) within 60 days after
5    returning to active service as a Tier 1 employee.
6    If a Tier 1 employee fails for any reason to make a
7required election under this subsection within the time
8specified, then the employee shall be deemed to have made the
9election under paragraph (2) of this subsection.
10    (a-5) If this Section is enjoined or stayed by an Illinois
11court or a court of competent jurisdiction pending the entry of
12a final and unappealable decision, and this Section is
13determined to be constitutional or otherwise valid by a final
14unappealable decision of an Illinois court or a court of
15competent jurisdiction, then the election procedure set forth
16in subsection (a) of this Section shall commence on the 180th
17calendar day after the date of the issuance of the final
18unappealable decision and shall conclude at the end of the
19270th calendar day after that date.
20    (a-10) All elections under subsection (a) that are made or
21deemed to be made before July 1, 2018 shall take effect on July
221, 2018. Elections that are made or deemed to be made on or
23after July 1, 2018 shall take effect on the first day of the
24month following the month in which the election is made or
25deemed to be made.
26    (b) As adequate and legal consideration provided under this

 

 

09900SB0017sam001- 52 -LRB099 05660 RPS 52198 a

1amendatory Act of the 99th General Assembly for making an
2election under paragraph (1) of subsection (a) of this Section,
3the employer shall be expressly and irrevocably prohibited from
4offering any future increases in income to a Tier 1 employee
5who has made an election under paragraph (1) of subsection (a)
6of this Section on the condition of not constituting earnings
7under Section 15-111.
8    As adequate and legal consideration provided under this
9amendatory Act of the 99th General Assembly for making an
10election under paragraph (1) of subsection (a) of this Section,
11each Tier 1 employee who has made an election under paragraph
12(1) of subsection (a) of this Section shall receive a
13consideration payment equal to 10% of the contributions made by
14or on behalf of the employee under Section 15-157 before the
15effective date of that election. The State Comptroller shall
16pay the consideration payment to the Tier 1 employee out of
17funds appropriated for that purpose under Section 1.9 of the
18State Pension Funds Continuing Appropriation Act. The System
19shall calculate the amount of each consideration payment and
20shall certify to the State Comptroller the amount of the
21consideration payment, together with the name, address, and any
22other available payment information of the Tier 1 employee as
23found in the records of the System.
24    (c) A Tier 1 employee who makes the election under
25paragraph (2) of subsection (a) of this Section shall not be
26subject to paragraph (1) of subsection (a) of this Section.

 

 

09900SB0017sam001- 53 -LRB099 05660 RPS 52198 a

1However, any future increases in income offered by an employer
2under this Article to a Tier 1 employee who has made the
3election under paragraph (2) of subsection (a) of this Section
4shall be offered by the employer expressly and irrevocably on
5the condition of not constituting earnings under Section
615-111, and the employee may not accept any future increase in
7income that is offered without this condition.
8    (d) The System shall make a good faith effort to contact
9each Tier 1 employee subject to this Section. The System shall
10mail information describing the required election to each Tier
111 employee by United States Postal Service mail to his or her
12last known address on file with the System. If the Tier 1
13employee is not responsive to other means of contact, it is
14sufficient for the System to publish the details of any
15required elections on its website or to publish those details
16in a regularly published newsletter or other existing public
17forum.
18    Tier 1 employees who are subject to this Section shall be
19provided with an election packet containing information
20regarding their options, as well as the forms necessary to make
21the required election. Upon request, the System shall offer
22Tier 1 employees an opportunity to receive information from the
23System before making the required election. The information may
24consist of video materials, group presentations, individual
25consultation with a member or authorized representative of the
26System in person or by telephone or other electronic means, or

 

 

09900SB0017sam001- 54 -LRB099 05660 RPS 52198 a

1any combination of those methods. The System shall not provide
2advice or counseling with respect to which election a Tier 1
3employee should make or specific to the legal or tax
4circumstances of or consequences to the Tier 1 employee.
5    The System shall inform Tier 1 employees in the election
6packet required under this subsection that the Tier 1 employee
7may also wish to obtain information and counsel relating to the
8election required under this Section from any other available
9source, including, but not limited to, labor organizations and
10private counsel.
11    In no event shall the System, its staff, or the Board be
12held liable for any information given to a member regarding the
13elections under this Section. The System shall coordinate with
14the Illinois Department of Central Management Services and each
15other retirement system administering an election in
16accordance with this amendatory Act of the 99th General
17Assembly to provide information concerning the impact of the
18election set forth in this Section.
19    (e) Notwithstanding any other provision of law, an employer
20under this Article is required to offer any future increases in
21income expressly and irrevocably on the condition of not
22constituting "earnings" under Section 15-111 to any Tier 1
23employee who has made an election under paragraph (2) of
24subsection (a) of this Section. A Tier 1 employee who has made
25an election under paragraph (2) of subsection (a) of this
26Section shall not accept any future increase in income that is

 

 

09900SB0017sam001- 55 -LRB099 05660 RPS 52198 a

1offered by an employer under this Article without the condition
2set forth in this subsection.
3    For purposes of legislative intent, the condition set forth
4in this subsection shall be construed in a manner that ensures
5that the condition is not violated or circumvented through any
6contrivance of any kind.
7    (f) A member's election under this Section is not a
8prohibited election under subdivision (j)(1) of Section 1-119
9of this Code.
10    (g) No provision of this Section shall be interpreted in a
11way that would cause the System to cease to be a qualified plan
12under Section 401(a) of the Internal Revenue Code of 1986.
13    (h) If an election created by this amendatory Act in any
14other Article of this Code or any change deriving from that
15election is determined to be unconstitutional or otherwise
16invalid by a final unappealable decision of an Illinois court
17or a court of competent jurisdiction, the invalidity of that
18provision shall not in any way affect the validity of this
19Section or the changes deriving from the election required
20under this Section.
 
21    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
22    (Text of Section WITHOUT the changes made by P.A. 98-599,
23which has been held unconstitutional)
24    Sec. 15-136. Retirement annuities - Amount. The provisions
25of this Section 15-136 apply only to those participants who are

 

 

09900SB0017sam001- 56 -LRB099 05660 RPS 52198 a

1participating in the traditional benefit package or the
2portable benefit package and do not apply to participants who
3are participating in the self-managed plan.
4    (a) The amount of a participant's retirement annuity,
5expressed in the form of a single-life annuity, shall be
6determined by whichever of the following rules is applicable
7and provides the largest annuity:
8    Rule 1: The retirement annuity shall be 1.67% of final rate
9of earnings for each of the first 10 years of service, 1.90%
10for each of the next 10 years of service, 2.10% for each year
11of service in excess of 20 but not exceeding 30, and 2.30% for
12each year in excess of 30; or for persons who retire on or
13after January 1, 1998, 2.2% of the final rate of earnings for
14each year of service.
15    Rule 2: The retirement annuity shall be the sum of the
16following, determined from amounts credited to the participant
17in accordance with the actuarial tables and the effective rate
18of interest in effect at the time the retirement annuity
19begins:
20        (i) the normal annuity which can be provided on an
21    actuarially equivalent basis, by the accumulated normal
22    contributions as of the date the annuity begins;
23        (ii) an annuity from employer contributions of an
24    amount equal to that which can be provided on an
25    actuarially equivalent basis from the accumulated normal
26    contributions made by the participant under Section

 

 

09900SB0017sam001- 57 -LRB099 05660 RPS 52198 a

1    15-113.6 and Section 15-113.7 plus 1.4 times all other
2    accumulated normal contributions made by the participant;
3    and
4        (iii) the annuity that can be provided on an
5    actuarially equivalent basis from the entire contribution
6    made by the participant under Section 15-113.3.
7    With respect to a police officer or firefighter who retires
8on or after August 14, 1998, the accumulated normal
9contributions taken into account under clauses (i) and (ii) of
10this Rule 2 shall include the additional normal contributions
11made by the police officer or firefighter under Section
1215-157(a).
13    The amount of a retirement annuity calculated under this
14Rule 2 shall be computed solely on the basis of the
15participant's accumulated normal contributions, as specified
16in this Rule and defined in Section 15-116. Neither an employee
17or employer contribution for early retirement under Section
1815-136.2 nor any other employer contribution shall be used in
19the calculation of the amount of a retirement annuity under
20this Rule 2.
21    This amendatory Act of the 91st General Assembly is a
22clarification of existing law and applies to every participant
23and annuitant without regard to whether status as an employee
24terminates before the effective date of this amendatory Act.
25    This Rule 2 does not apply to a person who first becomes an
26employee under this Article on or after July 1, 2005.

 

 

09900SB0017sam001- 58 -LRB099 05660 RPS 52198 a

1    Rule 3: The retirement annuity of a participant who is
2employed at least one-half time during the period on which his
3or her final rate of earnings is based, shall be equal to the
4participant's years of service not to exceed 30, multiplied by
5(1) $96 if the participant's final rate of earnings is less
6than $3,500, (2) $108 if the final rate of earnings is at least
7$3,500 but less than $4,500, (3) $120 if the final rate of
8earnings is at least $4,500 but less than $5,500, (4) $132 if
9the final rate of earnings is at least $5,500 but less than
10$6,500, (5) $144 if the final rate of earnings is at least
11$6,500 but less than $7,500, (6) $156 if the final rate of
12earnings is at least $7,500 but less than $8,500, (7) $168 if
13the final rate of earnings is at least $8,500 but less than
14$9,500, and (8) $180 if the final rate of earnings is $9,500 or
15more, except that the annuity for those persons having made an
16election under Section 15-154(a-1) shall be calculated and
17payable under the portable retirement benefit program pursuant
18to the provisions of Section 15-136.4.
19    Rule 4: A participant who is at least age 50 and has 25 or
20more years of service as a police officer or firefighter, and a
21participant who is age 55 or over and has at least 20 but less
22than 25 years of service as a police officer or firefighter,
23shall be entitled to a retirement annuity of 2 1/4% of the
24final rate of earnings for each of the first 10 years of
25service as a police officer or firefighter, 2 1/2% for each of
26the next 10 years of service as a police officer or

 

 

09900SB0017sam001- 59 -LRB099 05660 RPS 52198 a

1firefighter, and 2 3/4% for each year of service as a police
2officer or firefighter in excess of 20. The retirement annuity
3for all other service shall be computed under Rule 1. A Tier 2
4member is eligible for a retirement annuity calculated under
5Rule 4 only if that Tier 2 member meets the service
6requirements for that benefit calculation as prescribed under
7this Rule 4 in addition to the applicable age requirement under
8subsection (a-5) of Section 15-135.
9    For purposes of this Rule 4, a participant's service as a
10firefighter shall also include the following:
11        (i) service that is performed while the person is an
12    employee under subsection (h) of Section 15-107; and
13        (ii) in the case of an individual who was a
14    participating employee employed in the fire department of
15    the University of Illinois's Champaign-Urbana campus
16    immediately prior to the elimination of that fire
17    department and who immediately after the elimination of
18    that fire department transferred to another job with the
19    University of Illinois, service performed as an employee of
20    the University of Illinois in a position other than police
21    officer or firefighter, from the date of that transfer
22    until the employee's next termination of service with the
23    University of Illinois.
24    (b) For a Tier 1 member, the retirement annuity provided
25under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
26month the participant is under age 60 at the time of

 

 

09900SB0017sam001- 60 -LRB099 05660 RPS 52198 a

1retirement. However, this reduction shall not apply in the
2following cases:
3        (1) For a disabled participant whose disability
4    benefits have been discontinued because he or she has
5    exhausted eligibility for disability benefits under clause
6    (6) of Section 15-152;
7        (2) For a participant who has at least the number of
8    years of service required to retire at any age under
9    subsection (a) of Section 15-135; or
10        (3) For that portion of a retirement annuity which has
11    been provided on account of service of the participant
12    during periods when he or she performed the duties of a
13    police officer or firefighter, if these duties were
14    performed for at least 5 years immediately preceding the
15    date the retirement annuity is to begin.
16    (b-5) The retirement annuity of a Tier 2 member who is
17retiring after attaining age 62 with at least 10 years of
18service credit shall be reduced by 1/2 of 1% for each full
19month that the member's age is under age 67.
20    (c) The maximum retirement annuity provided under Rules 1,
212, 4, and 5 shall be the lesser of (1) the annual limit of
22benefits as specified in Section 415 of the Internal Revenue
23Code of 1986, as such Section may be amended from time to time
24and as such benefit limits shall be adjusted by the
25Commissioner of Internal Revenue, and (2) 80% of final rate of
26earnings.

 

 

09900SB0017sam001- 61 -LRB099 05660 RPS 52198 a

1    (d) Subject to the provisions of subsection (d-1), a A Tier
21 member whose status as an employee terminates after August
314, 1969 shall receive automatic increases in his or her
4retirement annuity as follows:
5    Effective January 1 immediately following the date the
6retirement annuity begins, the annuitant shall receive an
7increase in his or her monthly retirement annuity of 0.125% of
8the monthly retirement annuity provided under Rule 1, Rule 2,
9Rule 3, or Rule 4 contained in this Section, multiplied by the
10number of full months which elapsed from the date the
11retirement annuity payments began to January 1, 1972, plus
120.1667% of such annuity, multiplied by the number of full
13months which elapsed from January 1, 1972, or the date the
14retirement annuity payments began, whichever is later, to
15January 1, 1978, plus 0.25% of such annuity multiplied by the
16number of full months which elapsed from January 1, 1978, or
17the date the retirement annuity payments began, whichever is
18later, to the effective date of the increase.
19    The annuitant shall receive an increase in his or her
20monthly retirement annuity on each January 1 thereafter during
21the annuitant's life of 3% of the monthly annuity provided
22under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
23Section. The change made under this subsection by P.A. 81-970
24is effective January 1, 1980 and applies to each annuitant
25whose status as an employee terminates before or after that
26date.

 

 

09900SB0017sam001- 62 -LRB099 05660 RPS 52198 a

1    Beginning January 1, 1990, and except as provided in
2subsection (d-1), all automatic annual increases payable under
3this Section shall be calculated as a percentage of the total
4annuity payable at the time of the increase, including all
5increases previously granted under this Article.
6    The change made in this subsection by P.A. 85-1008 is
7effective January 26, 1988, and is applicable without regard to
8whether status as an employee terminated before that date.
9    (d-1) Notwithstanding any other provision of this Article,
10for a Tier 1 employee who made the election under paragraph (1)
11of subsection (a) of Section 15-132.9:
12        (1) The initial increase in retirement annuity under
13    this Section shall occur on the January 1 occurring either
14    on or after the attainment of age 67 or the fifth
15    anniversary of the annuity start date, whichever is
16    earlier.
17        (2) The amount of each automatic annual increase in
18    retirement annuity occurring on or after the effective date
19    of that election shall be calculated as a percentage of the
20    originally granted retirement annuity, equal to 3% or
21    one-half the annual unadjusted percentage increase (but
22    not less than zero) in the consumer price index-u for the
23    12 months ending with the September preceding each November
24    1, whichever is less. If the annual unadjusted percentage
25    change in the consumer price index-u for the 12 months
26    ending with the September preceding each November 1 is zero

 

 

09900SB0017sam001- 63 -LRB099 05660 RPS 52198 a

1    or there is a decrease, then the annuity shall not be
2    increased.
3    For the purposes of this Section, "consumer price index-u"
4means the index published by the Bureau of Labor Statistics of
5the United States Department of Labor that measures the average
6change in prices of goods and services purchased by all urban
7consumers, United States city average, all items, 1982-84 =
8100. The new amount resulting from each annual adjustment shall
9be determined by the Public Pension Division of the Department
10of Insurance and made available to the board of the retirement
11system by November 1 of each year.
12    (d-5) A retirement annuity of a Tier 2 member shall receive
13annual increases on the January 1 occurring either on or after
14the attainment of age 67 or the first anniversary of the
15annuity start date, whichever is later. Each annual increase
16shall be calculated at 3% or one half the annual unadjusted
17percentage increase (but not less than zero) in the consumer
18price index-u for the 12 months ending with the September
19preceding each November 1, whichever is less, of the originally
20granted retirement annuity. If the annual unadjusted
21percentage change in the consumer price index-u for the 12
22months ending with the September preceding each November 1 is
23zero or there is a decrease, then the annuity shall not be
24increased.
25    (e) If, on January 1, 1987, or the date the retirement
26annuity payment period begins, whichever is later, the sum of

 

 

09900SB0017sam001- 64 -LRB099 05660 RPS 52198 a

1the retirement annuity provided under Rule 1 or Rule 2 of this
2Section and the automatic annual increases provided under the
3preceding subsection or Section 15-136.1, amounts to less than
4the retirement annuity which would be provided by Rule 3, the
5retirement annuity shall be increased as of January 1, 1987, or
6the date the retirement annuity payment period begins,
7whichever is later, to the amount which would be provided by
8Rule 3 of this Section. Such increased amount shall be
9considered as the retirement annuity in determining benefits
10provided under other Sections of this Article. This paragraph
11applies without regard to whether status as an employee
12terminated before the effective date of this amendatory Act of
131987, provided that the annuitant was employed at least
14one-half time during the period on which the final rate of
15earnings was based.
16    (f) A participant is entitled to such additional annuity as
17may be provided on an actuarially equivalent basis, by any
18accumulated additional contributions to his or her credit.
19However, the additional contributions made by the participant
20toward the automatic increases in annuity provided under this
21Section shall not be taken into account in determining the
22amount of such additional annuity.
23    (g) If, (1) by law, a function of a governmental unit, as
24defined by Section 20-107 of this Code, is transferred in whole
25or in part to an employer, and (2) a participant transfers
26employment from such governmental unit to such employer within

 

 

09900SB0017sam001- 65 -LRB099 05660 RPS 52198 a

16 months after the transfer of the function, and (3) the sum of
2(A) the annuity payable to the participant under Rule 1, 2, or
33 of this Section (B) all proportional annuities payable to the
4participant by all other retirement systems covered by Article
520, and (C) the initial primary insurance amount to which the
6participant is entitled under the Social Security Act, is less
7than the retirement annuity which would have been payable if
8all of the participant's pension credits validated under
9Section 20-109 had been validated under this system, a
10supplemental annuity equal to the difference in such amounts
11shall be payable to the participant.
12    (h) On January 1, 1981, an annuitant who was receiving a
13retirement annuity on or before January 1, 1971 shall have his
14or her retirement annuity then being paid increased $1 per
15month for each year of creditable service. On January 1, 1982,
16an annuitant whose retirement annuity began on or before
17January 1, 1977, shall have his or her retirement annuity then
18being paid increased $1 per month for each year of creditable
19service.
20    (i) On January 1, 1987, any annuitant whose retirement
21annuity began on or before January 1, 1977, shall have the
22monthly retirement annuity increased by an amount equal to 8
23per year of creditable service times the number of years that
24have elapsed since the annuity began.
25(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
2698-92, eff. 7-16-13.)
 

 

 

09900SB0017sam001- 66 -LRB099 05660 RPS 52198 a

1    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
2    Sec. 15-155. Employer contributions.
3    (a) The State of Illinois shall make contributions by
4appropriations of amounts which, together with the other
5employer contributions from trust, federal, and other funds,
6employee contributions, income from investments, and other
7income of this System, will be sufficient to meet the cost of
8maintaining and administering the System on a 90% funded basis
9in accordance with actuarial recommendations.
10    The Board shall determine the amount of State contributions
11required for each fiscal year on the basis of the actuarial
12tables and other assumptions adopted by the Board and the
13recommendations of the actuary, using the formula in subsection
14(a-1).
15    (a-1) For State fiscal years 2018 through 2045 (except as
16otherwise provided for fiscal year 2019), the minimum
17contribution to the System to be made by the State for each
18fiscal year shall be an amount determined by the System to be
19sufficient to bring the total assets of the System up to 90% of
20the total actuarial liabilities of the System by the end of
21State fiscal year 2045. In making these determinations, the
22required State contribution shall be calculated each year as a
23level percentage of total payroll, including payroll that is
24not deemed pensionable, over the years remaining to and
25including fiscal year 2045 and shall be determined under the

 

 

09900SB0017sam001- 67 -LRB099 05660 RPS 52198 a

1projected unit credit actuarial cost method.
2    For State fiscal year 2019:
3        (1) The initial calculation and certification shall be
4    based on the amount determined above.
5        (2) For purposes of the recertification due on or
6    before May 1, 2018, the recalculation of the required State
7    contribution for fiscal year 2019 shall take into account
8    the effect on the System's liabilities of the elections
9    made under Section 15-132.9.
10        (3) For purposes of the recertification due on or
11    before October 1, 2018, the total required State
12    contribution for fiscal year 2019 shall be reduced by the
13    amount of the consideration payments made to Tier 1
14    employees who made the election under paragraph (1) of
15    subsection (a) of Section 15-132.9.
16    Beginning in State fiscal year 2018, any increase or
17decrease in State contribution over the prior fiscal year due
18exclusively to changes in actuarial or investment assumptions
19adopted by the Board shall be included in the State
20contribution to the System, as a percentage of the applicable
21employee payroll, and shall be increased in equal annual
22increments so that by the State fiscal year occurring 5 years
23after the adoption of the actuarial or investment assumptions,
24the State is contributing at the rate otherwise required under
25this Section.
26    For State fiscal years 2012 through 2017 2045, the minimum

 

 

09900SB0017sam001- 68 -LRB099 05660 RPS 52198 a

1contribution to the System to be made by the State for each
2fiscal year shall be an amount determined by the System to be
3sufficient to bring the total assets of the System up to 90% of
4the total actuarial liabilities of the System by the end of
5State fiscal year 2045. In making these determinations, the
6required State contribution shall be calculated each year as a
7level percentage of payroll over the years remaining to and
8including fiscal year 2045 and shall be determined under the
9projected unit credit actuarial cost method.
10    For State fiscal years 1996 through 2005, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13so that by State fiscal year 2011, the State is contributing at
14the rate required under this Section.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2006 is
17$166,641,900.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2007 is
20$252,064,100.
21    For each of State fiscal years 2008 through 2009, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24from the required State contribution for State fiscal year
252007, so that by State fiscal year 2011, the State is
26contributing at the rate otherwise required under this Section.

 

 

09900SB0017sam001- 69 -LRB099 05660 RPS 52198 a

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2010 is
3$702,514,000 and shall be made from the State Pensions Fund and
4proceeds of bonds sold in fiscal year 2010 pursuant to Section
57.2 of the General Obligation Bond Act, less (i) the pro rata
6share of bond sale expenses determined by the System's share of
7total bond proceeds, (ii) any amounts received from the General
8Revenue Fund in fiscal year 2010, (iii) any reduction in bond
9proceeds due to the issuance of discounted bonds, if
10applicable.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2011 is
13the amount recertified by the System on or before April 1, 2011
14pursuant to Section 15-165 and shall be made from the State
15Pensions Fund and proceeds of bonds sold in fiscal year 2011
16pursuant to Section 7.2 of the General Obligation Bond Act,
17less (i) the pro rata share of bond sale expenses determined by
18the System's share of total bond proceeds, (ii) any amounts
19received from the General Revenue Fund in fiscal year 2011, and
20(iii) any reduction in bond proceeds due to the issuance of
21discounted bonds, if applicable.
22    Beginning in State fiscal year 2046, the minimum State
23contribution for each fiscal year shall be the amount needed to
24maintain the total assets of the System at 90% of the total
25actuarial liabilities of the System.
26    Amounts received by the System pursuant to Section 25 of

 

 

09900SB0017sam001- 70 -LRB099 05660 RPS 52198 a

1the Budget Stabilization Act or Section 8.12 of the State
2Finance Act in any fiscal year do not reduce and do not
3constitute payment of any portion of the minimum State
4contribution required under this Article in that fiscal year.
5Such amounts shall not reduce, and shall not be included in the
6calculation of, the required State contributions under this
7Article in any future year until the System has reached a
8funding ratio of at least 90%. A reference in this Article to
9the "required State contribution" or any substantially similar
10term does not include or apply to any amounts payable to the
11System under Section 25 of the Budget Stabilization Act.
12    Notwithstanding any other provision of this Section, the
13required State contribution for State fiscal year 2005 and for
14fiscal year 2008 and each fiscal year thereafter, as calculated
15under this Section and certified under Section 15-165, shall
16not exceed an amount equal to (i) the amount of the required
17State contribution that would have been calculated under this
18Section for that fiscal year if the System had not received any
19payments under subsection (d) of Section 7.2 of the General
20Obligation Bond Act, minus (ii) the portion of the State's
21total debt service payments for that fiscal year on the bonds
22issued in fiscal year 2003 for the purposes of that Section
237.2, as determined and certified by the Comptroller, that is
24the same as the System's portion of the total moneys
25distributed under subsection (d) of Section 7.2 of the General
26Obligation Bond Act. In determining this maximum for State

 

 

09900SB0017sam001- 71 -LRB099 05660 RPS 52198 a

1fiscal years 2008 through 2010, however, the amount referred to
2in item (i) shall be increased, as a percentage of the
3applicable employee payroll, in equal increments calculated
4from the sum of the required State contribution for State
5fiscal year 2007 plus the applicable portion of the State's
6total debt service payments for fiscal year 2007 on the bonds
7issued in fiscal year 2003 for the purposes of Section 7.2 of
8the General Obligation Bond Act, so that, by State fiscal year
92011, the State is contributing at the rate otherwise required
10under this Section.
11    (b) If an employee is paid from trust or federal funds, the
12employer shall pay to the Board contributions from those funds
13which are sufficient to cover the accruing normal costs on
14behalf of the employee. However, universities having employees
15who are compensated out of local auxiliary funds, income funds,
16or service enterprise funds are not required to pay such
17contributions on behalf of those employees. The local auxiliary
18funds, income funds, and service enterprise funds of
19universities shall not be considered trust funds for the
20purpose of this Article, but funds of alumni associations,
21foundations, and athletic associations which are affiliated
22with the universities included as employers under this Article
23and other employers which do not receive State appropriations
24are considered to be trust funds for the purpose of this
25Article.
26    (b-1) The City of Urbana and the City of Champaign shall

 

 

09900SB0017sam001- 72 -LRB099 05660 RPS 52198 a

1each make employer contributions to this System for their
2respective firefighter employees who participate in this
3System pursuant to subsection (h) of Section 15-107. The rate
4of contributions to be made by those municipalities shall be
5determined annually by the Board on the basis of the actuarial
6assumptions adopted by the Board and the recommendations of the
7actuary, and shall be expressed as a percentage of salary for
8each such employee. The Board shall certify the rate to the
9affected municipalities as soon as may be practical. The
10employer contributions required under this subsection shall be
11remitted by the municipality to the System at the same time and
12in the same manner as employee contributions.
13    (c) Through State fiscal year 1995: The total employer
14contribution shall be apportioned among the various funds of
15the State and other employers, whether trust, federal, or other
16funds, in accordance with actuarial procedures approved by the
17Board. State of Illinois contributions for employers receiving
18State appropriations for personal services shall be payable
19from appropriations made to the employers or to the System. The
20contributions for Class I community colleges covering earnings
21other than those paid from trust and federal funds, shall be
22payable solely from appropriations to the Illinois Community
23College Board or the System for employer contributions.
24    (d) Beginning in State fiscal year 1996, the required State
25contributions to the System shall be appropriated directly to
26the System and shall be payable through vouchers issued in

 

 

09900SB0017sam001- 73 -LRB099 05660 RPS 52198 a

1accordance with subsection (c) of Section 15-165, except as
2provided in subsection (g).
3    (e) The State Comptroller shall draw warrants payable to
4the System upon proper certification by the System or by the
5employer in accordance with the appropriation laws and this
6Code.
7    (f) Normal costs under this Section means liability for
8pensions and other benefits which accrues to the System because
9of the credits earned for service rendered by the participants
10during the fiscal year and expenses of administering the
11System, but shall not include the principal of or any
12redemption premium or interest on any bonds issued by the Board
13or any expenses incurred or deposits required in connection
14therewith.
15    (g) For academic years beginning on or after June 1, 2005
16and before July 1, 2018, if If the amount of a participant's
17earnings for any academic year used to determine the final rate
18of earnings, determined on a full-time equivalent basis,
19exceeds the amount of his or her earnings with the same
20employer for the previous academic year, determined on a
21full-time equivalent basis, by more than 6%, the participant's
22employer shall pay to the System, in addition to all other
23payments required under this Section and in accordance with
24guidelines established by the System, the present value of the
25increase in benefits resulting from the portion of the increase
26in earnings that is in excess of 6%. This present value shall

 

 

09900SB0017sam001- 74 -LRB099 05660 RPS 52198 a

1be computed by the System on the basis of the actuarial
2assumptions and tables used in the most recent actuarial
3valuation of the System that is available at the time of the
4computation. The System may require the employer to provide any
5pertinent information or documentation.
6    Whenever it determines that a payment is or may be required
7under this subsection (g), the System shall calculate the
8amount of the payment and bill the employer for that amount.
9The bill shall specify the calculations used to determine the
10amount due. If the employer disputes the amount of the bill, it
11may, within 30 days after receipt of the bill, apply to the
12System in writing for a recalculation. The application must
13specify in detail the grounds of the dispute and, if the
14employer asserts that the calculation is subject to subsection
15(h) or (i) of this Section, must include an affidavit setting
16forth and attesting to all facts within the employer's
17knowledge that are pertinent to the applicability of subsection
18(h) or (i). Upon receiving a timely application for
19recalculation, the System shall review the application and, if
20appropriate, recalculate the amount due.
21    The employer contributions required under this subsection
22(g) may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the employer contributions are not paid
24within 90 days after receipt of the bill, then interest will be
25charged at a rate equal to the System's annual actuarially
26assumed rate of return on investment compounded annually from

 

 

09900SB0017sam001- 75 -LRB099 05660 RPS 52198 a

1the 91st day after receipt of the bill. Payments must be
2concluded within 3 years after the employer's receipt of the
3bill.
4    When assessing payment for any amount due under this
5subsection (g), the System shall include earnings, to the
6extent not established by a participant under Section 15-113.11
7or 15-113.12, that would have been paid to the participant had
8the participant not taken (i) periods of voluntary or
9involuntary furlough occurring on or after July 1, 2015 and on
10or before June 30, 2017 or (ii) periods of voluntary pay
11reduction in lieu of furlough occurring on or after July 1,
122015 and on or before June 30, 2017. Determining earnings that
13would have been paid to a participant had the participant not
14taken periods of voluntary or involuntary furlough or periods
15of voluntary pay reduction shall be the responsibility of the
16employer, and shall be reported in a manner prescribed by the
17System.
18    (g-1) For academic years beginning on or after July 1,
192018, if the amount of a participant's earnings for any
20academic year used to determine the final rate of earnings,
21determined on a full-time equivalent basis, exceeds the amount
22of his or her earnings with the same employer for the previous
23academic year, determined on a full-time equivalent basis, by
24more than the unadjusted percentage increase in the consumer
25price index-u for the calendar year ending on the December 31
26immediately preceding the beginning of the academic year, then

 

 

09900SB0017sam001- 76 -LRB099 05660 RPS 52198 a

1the participant's employer shall pay to the System, in addition
2to all other payments required under this Section and in
3accordance with guidelines established by the System, the
4present value of the increase in benefits resulting from the
5portion of the increase in earnings that is in excess of the
6unadjusted percentage increase in the consumer price index-u
7for the applicable calendar year. This present value shall be
8computed by the System on the basis of the actuarial
9assumptions and tables used in the most recent actuarial
10valuation of the System that is available at the time of the
11computation. The System may require the employer to provide any
12pertinent information or documentation.
13    Whenever it determines that a payment is or may be required
14under this subsection (g-1), the System shall calculate the
15amount of the payment and bill the employer for that amount.
16The bill shall specify the calculations used to determine the
17amount due. If the employer disputes the amount of the bill, it
18may, within 30 days after receipt of the bill, apply to the
19System in writing for a recalculation. The application must
20specify in detail the grounds of the dispute and, if the
21employer asserts that the calculation is subject to subsection
22(i-1) of this Section, must include an affidavit setting forth
23and attesting to all facts within the employer's knowledge that
24are pertinent to the applicability of subsection (i-1). Upon
25receiving a timely application for recalculation, the System
26shall review the application and, if appropriate, recalculate

 

 

09900SB0017sam001- 77 -LRB099 05660 RPS 52198 a

1the amount due.
2    The employer contributions required under this subsection
3(g-1) may be paid in the form of a lump sum within 90 days after
4receipt of the bill. If the employer contributions are not paid
5within 90 days after receipt of the bill, then interest shall
6be charged at a rate equal to the System's annual actuarially
7assumed rate of return on investment compounded annually from
8the 91st day after receipt of the bill. Payments must be
9concluded within 3 years after the employer's receipt of the
10bill.
11    For the purposes of this Section, "consumer price index-u"
12means the index published by the Bureau of Labor Statistics of
13the United States Department of Labor that measures the average
14change in prices of goods and services purchased by all urban
15consumers, United States city average, all items, 1982-84 =
16100. The new amount resulting from each annual adjustment shall
17be determined by the Public Pension Division of the Department
18of Insurance and made available to the boards of the retirement
19systems and pension funds by November 1 of each year.
20    (h) This subsection (h) applies only to payments made or
21salary increases given on or after June 1, 2005 but before July
221, 2011. The changes made by Public Act 94-1057 shall not
23require the System to refund any payments received before July
2431, 2006 (the effective date of Public Act 94-1057).
25    When assessing payment for any amount due under subsection
26(g), the System shall exclude earnings increases paid to

 

 

09900SB0017sam001- 78 -LRB099 05660 RPS 52198 a

1participants under contracts or collective bargaining
2agreements entered into, amended, or renewed before June 1,
32005.
4    When assessing payment for any amount due under subsection
5(g), the System shall exclude earnings increases paid to a
6participant at a time when the participant is 10 or more years
7from retirement eligibility under Section 15-135.
8    When assessing payment for any amount due under subsection
9(g), the System shall exclude earnings increases resulting from
10overload work, including a contract for summer teaching, or
11overtime when the employer has certified to the System, and the
12System has approved the certification, that: (i) in the case of
13overloads (A) the overload work is for the sole purpose of
14academic instruction in excess of the standard number of
15instruction hours for a full-time employee occurring during the
16academic year that the overload is paid and (B) the earnings
17increases are equal to or less than the rate of pay for
18academic instruction computed using the participant's current
19salary rate and work schedule; and (ii) in the case of
20overtime, the overtime was necessary for the educational
21mission.
22    When assessing payment for any amount due under subsection
23(g), the System shall exclude any earnings increase resulting
24from (i) a promotion for which the employee moves from one
25classification to a higher classification under the State
26Universities Civil Service System, (ii) a promotion in academic

 

 

09900SB0017sam001- 79 -LRB099 05660 RPS 52198 a

1rank for a tenured or tenure-track faculty position, or (iii) a
2promotion that the Illinois Community College Board has
3recommended in accordance with subsection (k) of this Section.
4These earnings increases shall be excluded only if the
5promotion is to a position that has existed and been filled by
6a member for no less than one complete academic year and the
7earnings increase as a result of the promotion is an increase
8that results in an amount no greater than the average salary
9paid for other similar positions.
10    (i) When assessing payment for any amount due under
11subsection (g), the System shall exclude any salary increase
12described in subsection (h) of this Section given on or after
13July 1, 2011 but before July 1, 2014 under a contract or
14collective bargaining agreement entered into, amended, or
15renewed on or after June 1, 2005 but before July 1, 2011.
16Notwithstanding any other provision of this Section, any
17payments made or salary increases given after June 30, 2014
18shall be used in assessing payment for any amount due under
19subsection (g) of this Section.
20    (i-1) When assessing payment for any amount due under
21subsection (g-1), the System shall exclude salary increases
22paid to participants under contracts or collective bargaining
23agreements entered into, amended, or renewed before the
24effective date of this amendatory Act of the 99th General
25Assembly.
26    (j) The System shall prepare a report and file copies of

 

 

09900SB0017sam001- 80 -LRB099 05660 RPS 52198 a

1the report with the Governor and the General Assembly by
2January 1, 2007 that contains all of the following information:
3        (1) The number of recalculations required by the
4    changes made to this Section by Public Act 94-1057 for each
5    employer.
6        (2) The dollar amount by which each employer's
7    contribution to the System was changed due to
8    recalculations required by Public Act 94-1057.
9        (3) The total amount the System received from each
10    employer as a result of the changes made to this Section by
11    Public Act 94-4.
12        (4) The increase in the required State contribution
13    resulting from the changes made to this Section by Public
14    Act 94-1057.
15    (j-5) For academic years beginning on or after July 1,
162018, if the amount of a participant's earnings for any
17academic year, determined on a full-time equivalent basis,
18exceeds the amount of the salary set for the Governor, the
19participant's employer shall pay to the System, in addition to
20all other payments required under this Section and in
21accordance with guidelines established by the System, the
22amount of the earnings that exceed the salary set for the
23Governor multiplied by the level percentage of payroll used in
24that fiscal year, as determined by the System, to be sufficient
25to bring the total assets of the System up to 90% of the total
26actuarial liabilities of the System by the end of State fiscal

 

 

09900SB0017sam001- 81 -LRB099 05660 RPS 52198 a

1year 2045. This amount shall be computed by the System on the
2basis of the actuarial assumptions and tables used in the most
3recent actuarial valuation of the System that is available at
4the time of the computation. The System may require the
5employer to provide any pertinent information or
6documentation.
7    Whenever it determines that a payment is or may be required
8under this subsection, the System shall calculate the amount of
9the payment and bill the employer for that amount. The bill
10shall specify the calculations used to determine the amount
11due. If the employer disputes the amount of the bill, it may,
12within 30 days after receipt of the bill, apply to the System
13in writing for a recalculation. The application must specify in
14detail the grounds of the dispute. Upon receiving a timely
15application for recalculation, the System shall review the
16application and, if appropriate, recalculate the amount due.
17    The employer contributions required under this subsection
18may be paid in the form of a lump sum within 90 days after
19receipt of the bill. If the employer contributions are not paid
20within 90 days after receipt of the bill, then interest will be
21charged at a rate equal to the System's annual actuarially
22assumed rate of return on investment compounded annually from
23the 91st day after receipt of the bill. Payments must be
24concluded within 3 years after the employer's receipt of the
25bill.
26    (k) The Illinois Community College Board shall adopt rules

 

 

09900SB0017sam001- 82 -LRB099 05660 RPS 52198 a

1for recommending lists of promotional positions submitted to
2the Board by community colleges and for reviewing the
3promotional lists on an annual basis. When recommending
4promotional lists, the Board shall consider the similarity of
5the positions submitted to those positions recognized for State
6universities by the State Universities Civil Service System.
7The Illinois Community College Board shall file a copy of its
8findings with the System. The System shall consider the
9findings of the Illinois Community College Board when making
10determinations under this Section. The System shall not exclude
11any earnings increases resulting from a promotion when the
12promotion was not submitted by a community college. Nothing in
13this subsection (k) shall require any community college to
14submit any information to the Community College Board.
15    (l) For purposes of determining the required State
16contribution to the System, the value of the System's assets
17shall be equal to the actuarial value of the System's assets,
18which shall be calculated as follows:
19    As of June 30, 2008, the actuarial value of the System's
20assets shall be equal to the market value of the assets as of
21that date. In determining the actuarial value of the System's
22assets for fiscal years after June 30, 2008, any actuarial
23gains or losses from investment return incurred in a fiscal
24year shall be recognized in equal annual amounts over the
255-year period following that fiscal year.
26    (m) For purposes of determining the required State

 

 

09900SB0017sam001- 83 -LRB099 05660 RPS 52198 a

1contribution to the system for a particular year, the actuarial
2value of assets shall be assumed to earn a rate of return equal
3to the system's actuarially assumed rate of return.
4    (n) If Section 15-132.9 is determined to be
5unconstitutional or otherwise invalid by a final unappealable
6decision of an Illinois court or a court of competent
7jurisdiction, then the changes made to this Section by this
8amendatory Act of the 99th General Assembly shall not take
9effect and are repealed by operation of law.
10(Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13;
1199-897, eff. 1-1-17.)
 
12    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
13    Sec. 15-157. Employee Contributions.
14    (a) Each participating employee shall make contributions
15towards the retirement benefits payable under the retirement
16program applicable to the employee from each payment of
17earnings applicable to employment under this system on and
18after the date of becoming a participant as follows: Prior to
19September 1, 1949, 3 1/2% of earnings; from September 1, 1949
20to August 31, 1955, 5%; from September 1, 1955 to August 31,
211969, 6%; from September 1, 1969, 6 1/2%. These contributions
22are to be considered as normal contributions for purposes of
23this Article.
24    Each participant who is a police officer or firefighter
25shall make normal contributions of 8% of each payment of

 

 

09900SB0017sam001- 84 -LRB099 05660 RPS 52198 a

1earnings applicable to employment as a police officer or
2firefighter under this system on or after September 1, 1981,
3unless he or she files with the board within 60 days after the
4effective date of this amendatory Act of 1991 or 60 days after
5the board receives notice that he or she is employed as a
6police officer or firefighter, whichever is later, a written
7notice waiving the retirement formula provided by Rule 4 of
8Section 15-136. This waiver shall be irrevocable. If a
9participant had met the conditions set forth in Section
1015-132.1 prior to the effective date of this amendatory Act of
111991 but failed to make the additional normal contributions
12required by this paragraph, he or she may elect to pay the
13additional contributions plus compound interest at the
14effective rate. If such payment is received by the board, the
15service shall be considered as police officer service in
16calculating the retirement annuity under Rule 4 of Section
1715-136. While performing service described in clause (i) or
18(ii) of Rule 4 of Section 15-136, a participating employee
19shall be deemed to be employed as a firefighter for the purpose
20of determining the rate of employee contributions under this
21Section.
22    (b) Starting September 1, 1969, each participating
23employee shall make additional contributions of 1/2 of 1% of
24earnings to finance a portion of the cost of the annual
25increases in retirement annuity provided under Section 15-136,
26except that with respect to participants in the self-managed

 

 

09900SB0017sam001- 85 -LRB099 05660 RPS 52198 a

1plan this additional contribution shall be used to finance the
2benefits obtained under that retirement program. Beginning
3July 1, 2018 or the effective date of the Tier 1 employee's
4election under paragraph (1) of subsection (a) of Section
515-132.9, whichever is later, each Tier 1 employee who made the
6election under paragraph (1) of subsection (a) of Section
715-132.9 is no longer required to make contributions under this
8subsection.
9    (c) Except as provided in subsection (c-5), in In addition
10to the amounts described in subsections (a) and (b) of this
11Section, each participating employee shall make contributions
12of 1% of earnings applicable under this system on and after
13August 1, 1959. The contributions made under this subsection
14(c) shall be considered as survivor's insurance contributions
15for purposes of this Article if the employee is covered under
16the traditional benefit package, and such contributions shall
17be considered as additional contributions for purposes of this
18Article if the employee is participating in the self-managed
19plan or has elected to participate in the portable benefit
20package and has completed the applicable one-year waiting
21period. Contributions in excess of $80 during any fiscal year
22beginning before August 31, 1969 and in excess of $120 during
23any fiscal year thereafter until September 1, 1971 shall be
24considered as additional contributions for purposes of this
25Article.
26    (c-5) Beginning July 1, 2018 or the effective date of the

 

 

09900SB0017sam001- 86 -LRB099 05660 RPS 52198 a

1Tier 1 employee's election under paragraph (1) of subsection
2(a) of Section 15-132.9, whichever is later, in lieu of the
3contributions otherwise required under subsection (c), each
4Tier 1 employee who made the election under paragraph (1) of
5subsection (a) of Section 15-132.9 shall make contributions of
60.7% of earnings applicable under this System and each Tier 1
7employee who is a police officer or firefighter who makes
8normal contributions of 8% of each payment of earnings
9applicable to employment as a police officer or firefighter
10under this System and who made the election under paragraph (1)
11of subsection (a) of Section 15-132.9 shall make contributions
12of 0.55% of earnings applicable under this System. The
13contributions made under this subsection (c-5) shall be
14considered as survivor's insurance contributions for purposes
15of this Article and such contributions shall be considered as
16additional contributions for purposes of this Article if the
17employee has elected to participate in the portable benefit
18package and has completed the applicable one-year waiting
19period.
20    (d) If the board by board rule so permits and subject to
21such conditions and limitations as may be specified in its
22rules, a participant may make other additional contributions of
23such percentage of earnings or amounts as the participant shall
24elect in a written notice thereof received by the board.
25    (e) That fraction of a participant's total accumulated
26normal contributions, the numerator of which is equal to the

 

 

09900SB0017sam001- 87 -LRB099 05660 RPS 52198 a

1number of years of service in excess of that which is required
2to qualify for the maximum retirement annuity, and the
3denominator of which is equal to the total service of the
4participant, shall be considered as accumulated additional
5contributions. The determination of the applicable maximum
6annuity and the adjustment in contributions required by this
7provision shall be made as of the date of the participant's
8retirement.
9    (f) Notwithstanding the foregoing, a participating
10employee shall not be required to make contributions under this
11Section after the date upon which continuance of such
12contributions would otherwise cause his or her retirement
13annuity to exceed the maximum retirement annuity as specified
14in clause (1) of subsection (c) of Section 15-136.
15    (g) A participant may make contributions for the purchase
16of service credit under this Article; however, only a
17participating employee may make optional contributions under
18subsection (b) of Section 15-157.1 of this Article.
19    (h) A Tier 2 member shall not make contributions on
20earnings that exceed the limitation as prescribed under
21subsection (b) of Section 15-111 of this Article.
22(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
 
23    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
24    (Text of Section WITHOUT the changes made by P.A. 98-599,
25which has been held unconstitutional)

 

 

09900SB0017sam001- 88 -LRB099 05660 RPS 52198 a

1    Sec. 15-165. To certify amounts and submit vouchers.
2    (a) The Board shall certify to the Governor on or before
3November 15 of each year until November 15, 2011 the
4appropriation required from State funds for the purposes of
5this System for the following fiscal year. The certification
6under this subsection (a) shall include a copy of the actuarial
7recommendations upon which it is based and shall specifically
8identify the System's projected State normal cost for that
9fiscal year and the projected State cost for the self-managed
10plan for that fiscal year.
11    On or before May 1, 2004, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2005, taking
14into account the amounts appropriated to and received by the
15System under subsection (d) of Section 7.2 of the General
16Obligation Bond Act.
17    On or before July 1, 2005, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2006, taking
20into account the changes in required State contributions made
21by this amendatory Act of the 94th General Assembly.
22    On or before April 1, 2011, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2011, applying
25the changes made by Public Act 96-889 to the System's assets
26and liabilities as of June 30, 2009 as though Public Act 96-889

 

 

09900SB0017sam001- 89 -LRB099 05660 RPS 52198 a

1was approved on that date.
2    (a-5) On or before November 1 of each year, beginning
3November 1, 2012, the Board shall submit to the State Actuary,
4the Governor, and the General Assembly a proposed certification
5of the amount of the required State contribution to the System
6for the next fiscal year, along with all of the actuarial
7assumptions, calculations, and data upon which that proposed
8certification is based. On or before January 1 of each year,
9beginning January 1, 2013, the State Actuary shall issue a
10preliminary report concerning the proposed certification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification of the required State contributions. On or before
14January 15, 2013 and each January 15 thereafter, the Board
15shall certify to the Governor and the General Assembly the
16amount of the required State contribution for the next fiscal
17year. The Board's certification must note, in a written
18response to the State Actuary, any deviations from the State
19Actuary's recommended changes, the reason or reasons for not
20following the State Actuary's recommended changes, and the
21fiscal impact of not following the State Actuary's recommended
22changes on the required State contribution.
23    (a-10) As soon as practical after the effective date of
24this amendatory Act of the 99th General Assembly, the State
25Actuary and the Board shall recalculate and recertify to the
26Governor and the General Assembly the amount of the State

 

 

09900SB0017sam001- 90 -LRB099 05660 RPS 52198 a

1contribution to the System for State fiscal year 2018, taking
2into account the changes in required State contributions made
3by this amendatory Act of the 99th General Assembly.
4    (a-15) On or before May 1, 2018, the Board shall
5recalculate and recertify to the Governor and the General
6Assembly the amount of the required State contribution to the
7System for State fiscal year 2019, taking into account the
8effect on the System's liabilities of the elections made under
9Section 15-132.9.
10    On or before October 1, 2018, the Board shall recalculate
11and recertify to the Governor and the General Assembly the
12amount of the required State contribution to the System for
13State fiscal year 2019, taking into account the reduction
14specified under item (3) of subsection (a-1) of Section 15-155.
15    (b) The Board shall certify to the State Comptroller or
16employer, as the case may be, from time to time, by its
17chairperson and secretary, with its seal attached, the amounts
18payable to the System from the various funds.
19    (c) Beginning in State fiscal year 1996, on or as soon as
20possible after the 15th day of each month the Board shall
21submit vouchers for payment of State contributions to the
22System, in a total monthly amount of one-twelfth of the
23required annual State contribution certified under subsection
24(a). From the effective date of this amendatory Act of the 93rd
25General Assembly through June 30, 2004, the Board shall not
26submit vouchers for the remainder of fiscal year 2004 in excess

 

 

09900SB0017sam001- 91 -LRB099 05660 RPS 52198 a

1of the fiscal year 2004 certified contribution amount
2determined under this Section after taking into consideration
3the transfer to the System under subsection (b) of Section
46z-61 of the State Finance Act. These vouchers shall be paid by
5the State Comptroller and Treasurer by warrants drawn on the
6funds appropriated to the System for that fiscal year.
7    If in any month the amount remaining unexpended from all
8other appropriations to the System for the applicable fiscal
9year (including the appropriations to the System under Section
108.12 of the State Finance Act and Section 1 of the State
11Pension Funds Continuing Appropriation Act) is less than the
12amount lawfully vouchered under this Section, the difference
13shall be paid from the General Revenue Fund under the
14continuing appropriation authority provided in Section 1.1 of
15the State Pension Funds Continuing Appropriation Act.
16    (d) So long as the payments received are the full amount
17lawfully vouchered under this Section, payments received by the
18System under this Section shall be applied first toward the
19employer contribution to the self-managed plan established
20under Section 15-158.2. Payments shall be applied second toward
21the employer's portion of the normal costs of the System, as
22defined in subsection (f) of Section 15-155. The balance shall
23be applied toward the unfunded actuarial liabilities of the
24System.
25    (e) In the event that the System does not receive, as a
26result of legislative enactment or otherwise, payments

 

 

09900SB0017sam001- 92 -LRB099 05660 RPS 52198 a

1sufficient to fully fund the employer contribution to the
2self-managed plan established under Section 15-158.2 and to
3fully fund that portion of the employer's portion of the normal
4costs of the System, as calculated in accordance with Section
515-155(a-1), then any payments received shall be applied
6proportionately to the optional retirement program established
7under Section 15-158.2 and to the employer's portion of the
8normal costs of the System, as calculated in accordance with
9Section 15-155(a-1).
10(Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
 
11    (40 ILCS 5/15-198)
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 15-198. Application and expiration of new benefit
15increases.
16    (a) As used in this Section, "new benefit increase" means
17an increase in the amount of any benefit provided under this
18Article, or an expansion of the conditions of eligibility for
19any benefit under this Article, that results from an amendment
20to this Code that takes effect after the effective date of this
21amendatory Act of the 94th General Assembly. "New benefit
22increase", however, does not include any benefit increase
23resulting from the changes made to this Article by this
24amendatory Act of the 99th General Assembly.
25    (b) Notwithstanding any other provision of this Code or any

 

 

09900SB0017sam001- 93 -LRB099 05660 RPS 52198 a

1subsequent amendment to this Code, every new benefit increase
2is subject to this Section and shall be deemed to be granted
3only in conformance with and contingent upon compliance with
4the provisions of this Section.
5    (c) The Public Act enacting a new benefit increase must
6identify and provide for payment to the System of additional
7funding at least sufficient to fund the resulting annual
8increase in cost to the System as it accrues.
9    Every new benefit increase is contingent upon the General
10Assembly providing the additional funding required under this
11subsection. The Commission on Government Forecasting and
12Accountability shall analyze whether adequate additional
13funding has been provided for the new benefit increase and
14shall report its analysis to the Public Pension Division of the
15Department of Financial and Professional Regulation. A new
16benefit increase created by a Public Act that does not include
17the additional funding required under this subsection is null
18and void. If the Public Pension Division determines that the
19additional funding provided for a new benefit increase under
20this subsection is or has become inadequate, it may so certify
21to the Governor and the State Comptroller and, in the absence
22of corrective action by the General Assembly, the new benefit
23increase shall expire at the end of the fiscal year in which
24the certification is made.
25    (d) Every new benefit increase shall expire 5 years after
26its effective date or on such earlier date as may be specified

 

 

09900SB0017sam001- 94 -LRB099 05660 RPS 52198 a

1in the language enacting the new benefit increase or provided
2under subsection (c). This does not prevent the General
3Assembly from extending or re-creating a new benefit increase
4by law.
5    (e) Except as otherwise provided in the language creating
6the new benefit increase, a new benefit increase that expires
7under this Section continues to apply to persons who applied
8and qualified for the affected benefit while the new benefit
9increase was in effect and to the affected beneficiaries and
10alternate payees of such persons, but does not apply to any
11other person, including without limitation a person who
12continues in service after the expiration date and did not
13apply and qualify for the affected benefit while the new
14benefit increase was in effect.
15(Source: P.A. 94-4, eff. 6-1-05.)
 
16    (40 ILCS 5/15-200.1 new)
17    Sec. 15-200.1. Defined contribution plan.
18    (a) By July 1, 2018, the System shall prepare and implement
19a voluntary defined contribution plan for up to 5% of eligible
20active Tier 1 employees. The System shall determine the 5% cap
21by the number of active Tier 1 employees on the effective date
22of this Section. The defined contribution plan developed under
23this Section shall be a plan that aggregates employer and
24employee contributions in individual participant accounts
25which, after meeting any other requirements, are used for

 

 

09900SB0017sam001- 95 -LRB099 05660 RPS 52198 a

1payouts after retirement in accordance with this Section and
2any other applicable laws.
3    As used in this Section, "defined benefit plan" means the
4retirement plan available under this Article to Tier 1
5employees who have not made the election authorized under this
6Section.
7        (1) Under the defined contribution plan, an active Tier
8    1 employee of this System could elect to cease accruing
9    benefits in the defined benefit plan under this Article and
10    begin accruing benefits for future service in the defined
11    contribution plan. Service credit under the defined
12    contribution plan may be used for determining retirement
13    eligibility under the defined benefit plan. An active Tier
14    1 employee who elects to cease accruing benefits in his or
15    her defined benefit plan shall be prohibited from
16    purchasing service credit on or after the date of his or
17    her election. A Tier 1 employee making the irrevocable
18    election provided under this Section shall not receive
19    interest accruals to his or her Rule 2 benefit on or after
20    the date of his or her election.
21        (2) Participants in the defined contribution plan
22    shall pay employee contributions at the same rate as other
23    participants under this Article as determined by the
24    System.
25        (3) State contributions shall be paid into the accounts
26    of all participants in the defined contribution plan at a

 

 

09900SB0017sam001- 96 -LRB099 05660 RPS 52198 a

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

 

 

09900SB0017sam001- 97 -LRB099 05660 RPS 52198 a

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

 

 

09900SB0017sam001- 98 -LRB099 05660 RPS 52198 a

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

 

 

09900SB0017sam001- 99 -LRB099 05660 RPS 52198 a

1representatives, or the Board be liable for any information
2given to an employee under this Section. The System may
3coordinate with the Illinois Department of Central Management
4Services and other retirement systems administering a defined
5contribution plan in accordance with this amendatory Act of the
699th General Assembly to provide information concerning the
7impact of the option set forth in this Section.
8    (f) Notwithstanding any other provision of this Section, no
9person shall begin participating in the defined contribution
10plan until it has attained qualified plan status and received
11all necessary approvals from the U.S. Internal Revenue Service.
12    (g) The System shall report on its progress under this
13Section, including the available details of the defined
14contribution plan and the System's plans for informing eligible
15Tier 1 employees about the plan, to the Governor and the
16General Assembly on or before January 15, 2018.
17    (h) If an active Tier 1 employee has not made an election
18under Section 15-134.5 of this Code, then the plan prescribed
19under this Section shall not apply to that Tier 1 employee and
20that Tier 1 employee shall remain eligible to make the election
21prescribed under Section 15-134.5.
22    (i) The intent of this amendatory Act of the 99th 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

 

 

09900SB0017sam001- 100 -LRB099 05660 RPS 52198 a

1is necessary to ensure cost neutrality.
2    (j) If Section 15-132.9 is determined to be
3unconstitutional or otherwise invalid by a final unappealable
4decision of an Illinois court or a court of competent
5jurisdiction, then this Section shall not take effect and is
6repealed by operation of law.
 
7    (40 ILCS 5/15-201.1 new)
8    Sec. 15-201.1. 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 participating in the System's defined benefit plan
13during the time in which he or she participated in the defined
14contribution plan, and for that purpose the System shall be
15entitled to recover the amounts in the participant's defined
16contribution accounts.
 
17    (40 ILCS 5/16-107.1 new)
18    Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A
19teacher under this Article who first became a member or
20participant before January 1, 2011 under any reciprocal
21retirement system or pension fund established under this Code
22other than a retirement system or pension fund established
23under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
24the purposes of the election under Section 16-122.9, "Tier 1

 

 

09900SB0017sam001- 101 -LRB099 05660 RPS 52198 a

1employee" does not include a teacher under this Article who
2would qualify as a Tier 1 employee but who has made an
3irrevocable election on or before June 1, 2017 to retire from
4service pursuant to the terms of a collective bargaining
5agreement in effect on June 1, 2017, excluding any extension,
6amendment, or renewal of that agreement on or after that date,
7and has notified the System of that election.
 
8    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
9    (Text of Section WITHOUT the changes made by P.A. 98-599,
10which has been held unconstitutional)
11    Sec. 16-121. Salary. "Salary": The actual compensation
12received by a teacher during any school year and recognized by
13the system in accordance with rules of the board. For purposes
14of this Section, "school year" includes the regular school term
15plus any additional period for which a teacher is compensated
16and such compensation is recognized by the rules of the board.
17    Notwithstanding any other provision of this Section,
18"salary" does not include any future increase in income that is
19offered by an employer for service as a Tier 1 employee under
20this Article pursuant to the condition set forth in subsection
21(c) of Section 16-122.9 and accepted under that condition by a
22Tier 1 employee who has made the election under paragraph (2)
23of subsection (a) of Section 16-122.9.
24    Notwithstanding any other provision of this Section,
25"salary" does not include any consideration payment made to a

 

 

09900SB0017sam001- 102 -LRB099 05660 RPS 52198 a

1Tier 1 employee.
2(Source: P.A. 84-1028.)
 
3    (40 ILCS 5/16-121.1 new)
4    Sec. 16-121.1. Future increase in income. "Future increase
5in income" means an increase in income in any form offered by
6an employer to a Tier 1 employee for service under this Article
7after June 30, 2018 that qualifies as "salary", as defined in
8Section 16-121, or would qualify as "salary" but for the fact
9that it was offered to and accepted by a Tier 1 employee under
10the condition set forth in subsection (c) of Section 16-122.9.
11The term "future increase in income" does not include an
12increase in income in any form that is paid to a Tier 1
13employee under an employment contract or a collective
14bargaining agreement that is in effect on the effective date of
15this Section, but does include an increase in income in any
16form pursuant to an extension, amendment, or renewal of any
17such employment contract or collective bargaining agreement on
18or after the effective date of this Section.
 
19    (40 ILCS 5/16-122.9 new)
20    Sec. 16-122.9. Election by Tier 1 employees.
21    (a) Each active Tier 1 employee shall make an irrevocable
22election either:
23        (1) to agree to delay his or her eligibility for
24    automatic annual increases in retirement annuity as

 

 

09900SB0017sam001- 103 -LRB099 05660 RPS 52198 a

1    provided in subsection (a-1) of Section 16-133.1 or
2    subsection (b-1) of Section 16-136.1, whichever is
3    applicable, and to have the amount of the automatic annual
4    increases in his or her retirement annuity that are
5    otherwise provided for in this Article calculated,
6    instead, as provided in subsection (a-1) of Section
7    16-133.1 or subsection (b-1) of Section 16-136.1,
8    whichever is applicable; or
9        (2) to not agree to paragraph (1) of this subsection.
10    The election required under this subsection (a) shall be
11made by each active Tier 1 employee no earlier than January 1,
122018 and no later than March 31, 2018, except that:
13        (i) a person who becomes a Tier 1 employee under this
14    Article on or after February 1, 2018 must make the election
15    under this subsection (a) within 60 days after becoming a
16    Tier 1 employee; and
17        (ii) a person who returns to active service as a Tier 1
18    employee under this Article on or after February 1, 2018
19    and has not yet made an election under this Section must
20    make the election under this subsection (a) within 60 days
21    after returning to active service as a Tier 1 employee.
22    If a Tier 1 employee fails for any reason to make a
23required election under this subsection within the time
24specified, then the employee shall be deemed to have made the
25election under paragraph (2) of this subsection.
26    (a-5) If this Section is enjoined or stayed by an Illinois

 

 

09900SB0017sam001- 104 -LRB099 05660 RPS 52198 a

1court or a court of competent jurisdiction pending the entry of
2a final and unappealable decision, and this Section is
3determined to be constitutional or otherwise valid by a final
4unappealable decision of an Illinois court or a court of
5competent jurisdiction, then the election procedure set forth
6in subsection (a) of this Section shall commence on the 180th
7calendar day after the date of the issuance of the final
8unappealable decision and shall conclude at the end of the
9270th calendar day after that date.
10    (a-10) All elections under subsection (a) that are made or
11deemed to be made before July 1, 2018 shall take effect on July
121, 2018. Elections that are made or deemed to be made on or
13after July 1, 2018 shall take effect on the first day of the
14month following the month in which the election is made or
15deemed to be made.
16    (b) As adequate and legal consideration provided under this
17amendatory Act of the 99th General Assembly for making an
18election under paragraph (1) of subsection (a) of this Section,
19an employer shall be expressly and irrevocably prohibited from
20offering any future increases in income to a Tier 1 employee
21who has made an election under paragraph (1) of subsection (a)
22of this Section on the condition of not constituting salary
23under Section 16-121.
24    As adequate and legal consideration provided under this
25amendatory Act of the 99th General Assembly for making an
26election under paragraph (1) of subsection (a) of this Section,

 

 

09900SB0017sam001- 105 -LRB099 05660 RPS 52198 a

1each Tier 1 employee who has made an election under paragraph
2(1) of subsection (a) of this Section shall receive a
3consideration payment equal to 10% of the contributions made by
4or on behalf of the employee under paragraphs (1), (2), and (3)
5of subsection (a) of Section 16-152 before the effective date
6of that election. The State Comptroller shall pay the
7consideration payment to the Tier 1 employee out of funds
8appropriated for that purpose under Section 1.9 of the State
9Pension Funds Continuing Appropriation Act. The System shall
10calculate the amount of each consideration payment and shall
11certify to the State Comptroller the amount of the
12consideration payment, together with the name, address, and any
13other available payment information of the Tier 1 employee as
14found in the records of the System.
15    (c) A Tier 1 employee who makes the election under
16paragraph (2) of subsection (a) of this Section shall not be
17subject to paragraph (1) of subsection (a) of this Section.
18However, any future increases in income offered by an employer
19under this Article to a Tier 1 employee who has made the
20election under paragraph (2) of subsection (a) of this Section
21shall be offered by the employer expressly and irrevocably on
22the condition of not constituting salary under Section 16-121,
23and the employee may not accept any future increase in income
24that is offered without this condition.
25    (d) The System shall make a good faith effort to contact
26each Tier 1 employee subject to this Section. The System shall

 

 

09900SB0017sam001- 106 -LRB099 05660 RPS 52198 a

1mail information describing the required election to each Tier
21 employee by United States Postal Service mail to his or her
3last known address on file with the System. If the Tier 1
4employee is not responsive to other means of contact, it is
5sufficient for the System to publish the details of any
6required elections on its website or to publish those details
7in a regularly published newsletter or other existing public
8forum.
9    Tier 1 employees who are subject to this Section shall be
10provided with an election packet containing information
11regarding their options, as well as the forms necessary to make
12the required election. Upon request, the System shall offer
13Tier 1 employees an opportunity to receive information from the
14System before making the required election. The information may
15consist of video materials, group presentations, individual
16consultation with a member or authorized representative of the
17System in person or by telephone or other electronic means, or
18any combination of those methods. The System shall not provide
19advice or counseling with respect to which election a Tier 1
20employee should make or specific to the legal or tax
21circumstances of or consequences to the Tier 1 employee.
22    The System shall inform Tier 1 employees in the election
23packet required under this subsection that the Tier 1 employee
24may also wish to obtain information and counsel relating to the
25election required under this Section from any other available
26source, including, but not limited to, labor organizations and

 

 

09900SB0017sam001- 107 -LRB099 05660 RPS 52198 a

1private counsel.
2    In no event shall the System, its staff, or the Board be
3held liable for any information given to a member regarding the
4elections under this Section. The System shall coordinate with
5the Illinois Department of Central Management Services and each
6other retirement system administering an election in
7accordance with this amendatory Act of the 99th General
8Assembly to provide information concerning the impact of the
9election set forth in this Section.
10    (e) Notwithstanding any other provision of law, an employer
11under this Article is required to offer any future increases in
12income expressly and irrevocably on the condition of not
13constituting "salary" under Section 16-121 to any Tier 1
14employee who has made an election under paragraph (2) of
15subsection (a) of this Section. A Tier 1 employee who has made
16an election under paragraph (2) of subsection (a) of this
17Section shall not accept any future increase in income that is
18offered by an employer under this Article without the condition
19set forth in this subsection.
20    For purposes of legislative intent, the condition set forth
21in this subsection shall be construed in a manner that ensures
22that the condition is not violated or circumvented through any
23contrivance of any kind.
24    (f) A member's election under this Section is not a
25prohibited election under subdivision (j)(1) of Section 1-119
26of this Code.

 

 

09900SB0017sam001- 108 -LRB099 05660 RPS 52198 a

1    (g) No provision of this Section shall be interpreted in a
2way that would cause the System to cease to be a qualified plan
3under Section 401(a) of the Internal Revenue Code of 1986.
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 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
13    (Text of Section WITHOUT the changes made by P.A. 98-599,
14which has been held unconstitutional)
15    Sec. 16-133.1. Automatic annual increase in annuity.
16    (a) Each member with creditable service and retiring on or
17after August 26, 1969 is entitled to the automatic annual
18increases in annuity provided under this Section while
19receiving a retirement annuity or disability retirement
20annuity from the system.
21    Except as otherwise provided in subsection (a-1), an An
22annuitant shall first be entitled to an initial increase under
23this Section on the January 1 next following the first
24anniversary of retirement, or January 1 of the year next
25following attainment of age 61, whichever is later. At such

 

 

09900SB0017sam001- 109 -LRB099 05660 RPS 52198 a

1time, the system shall pay an initial increase determined as
2follows:
3        (1) 1.5% of the originally granted retirement annuity
4    or disability retirement annuity multiplied by the number
5    of years elapsed, if any, from the date of retirement until
6    January 1, 1972, plus
7        (2) 2% of the originally granted annuity multiplied by
8    the number of years elapsed, if any, from the date of
9    retirement or January 1, 1972, whichever is later, until
10    January 1, 1978, plus
11        (3) 3% of the originally granted annuity multiplied by
12    the number of years elapsed from the date of retirement or
13    January 1, 1978, whichever is later, until the effective
14    date of the initial increase.
15However, the initial annual increase calculated under this
16Section for the recipient of a disability retirement annuity
17granted under Section 16-149.2 shall be reduced by an amount
18equal to the total of all increases in that annuity received
19under Section 16-149.5 (but not exceeding 100% of the amount of
20the initial increase otherwise provided under this Section).
21    Except as otherwise provided in subsection (a-1),
22following Following the initial increase, automatic annual
23increases in annuity shall be payable on each January 1
24thereafter during the lifetime of the annuitant, determined as
25a percentage of the originally granted retirement annuity or
26disability retirement annuity for increases granted prior to

 

 

09900SB0017sam001- 110 -LRB099 05660 RPS 52198 a

1January 1, 1990, and calculated as a percentage of the total
2amount of annuity, including previous increases under this
3Section, for increases granted on or after January 1, 1990, as
4follows: 1.5% for periods prior to January 1, 1972, 2% for
5periods after December 31, 1971 and prior to January 1, 1978,
6and 3% for periods after December 31, 1977.
7    (a-1) Notwithstanding any other provision of this Article,
8for a Tier 1 employee who made the election under paragraph (1)
9of subsection (a) of Section 16-122.9:
10        (1) The initial increase in retirement annuity under
11    this Section shall occur on the January 1 occurring either
12    on or after the attainment of age 67 or the fifth
13    anniversary of the annuity start date, whichever is
14    earlier.
15        (2) The amount of each automatic annual increase in
16    retirement annuity occurring on or after the effective date
17    of that election shall be calculated as a percentage of the
18    originally granted retirement annuity, equal to 3% or
19    one-half the annual unadjusted percentage increase (but
20    not less than zero) in the consumer price index-u for the
21    12 months ending with the September preceding each November
22    1, whichever is less. If the annual unadjusted percentage
23    change in the consumer price index-u for the 12 months
24    ending with the September preceding each November 1 is zero
25    or there is a decrease, then the annuity shall not be
26    increased.

 

 

09900SB0017sam001- 111 -LRB099 05660 RPS 52198 a

1    For the purposes of this Section, "consumer price index-u"
2means the index published by the Bureau of Labor Statistics of
3the United States Department of Labor that measures the average
4change in prices of goods and services purchased by all urban
5consumers, United States city average, all items, 1982-84 =
6100. The new amount resulting from each annual adjustment shall
7be determined by the Public Pension Division of the Department
8of Insurance and made available to the board of the retirement
9system by November 1 of each year.
10    (b) The automatic annual increases in annuity provided
11under this Section shall not be applicable unless a member has
12made contributions toward such increases for a period
13equivalent to one full year of creditable service. If a member
14contributes for service performed after August 26, 1969 but the
15member becomes an annuitant before such contributions amount to
16one full year's contributions based on the salary at the date
17of retirement, he or she may pay the necessary balance of the
18contributions to the system and be eligible for the automatic
19annual increases in annuity provided under this Section.
20    (c) Each member shall make contributions toward the cost of
21the automatic annual increases in annuity as provided under
22Section 16-152.
23    (d) An annuitant receiving a retirement annuity or
24disability retirement annuity on July 1, 1969, who subsequently
25re-enters service as a teacher is eligible for the automatic
26annual increases in annuity provided under this Section if he

 

 

09900SB0017sam001- 112 -LRB099 05660 RPS 52198 a

1or she renders at least one year of creditable service
2following the latest re-entry.
3    (e) In addition to the automatic annual increases in
4annuity provided under this Section, an annuitant who meets the
5service requirements of this Section and whose retirement
6annuity or disability retirement annuity began on or before
7January 1, 1971 shall receive, on January 1, 1981, an increase
8in the annuity then being paid of one dollar per month for each
9year of creditable service. On January 1, 1982, an annuitant
10whose retirement annuity or disability retirement annuity
11began on or before January 1, 1977 shall receive an increase in
12the annuity then being paid of one dollar per month for each
13year of creditable service.
14    On January 1, 1987, any annuitant whose retirement annuity
15began on or before January 1, 1977, shall receive an increase
16in the monthly retirement annuity equal to 8 per year of
17creditable service times the number of years that have elapsed
18since the annuity began.
19(Source: P.A. 91-927, eff. 12-14-00.)
 
20    (40 ILCS 5/16-136.1)  (from Ch. 108 1/2, par. 16-136.1)
21    (Text of Section WITHOUT the changes made by P.A. 98-599,
22which has been held unconstitutional)
23    Sec. 16-136.1. Annual increase for certain annuitants.
24    (a) Any annuitant receiving a retirement annuity on June
2530, 1969 and any member retiring after June 30, 1969 shall be

 

 

09900SB0017sam001- 113 -LRB099 05660 RPS 52198 a

1eligible for the annual increases provided under this Section
2provided the annuitant is ineligible for the automatic annual
3increase in annuity provided under Section 16-133.1, and
4provided further that (1) retirement occurred at age 55 or over
5and was based on 5 or more years of creditable service or (2)
6if retirement occurred prior to age 55, the retirement annuity
7was based on 20 or more years of creditable service.
8    (b) Except as otherwise provided in subsection (b-1), an An
9annuitant entitled to increases under this Section shall be
10entitled to the initial increase as of the later of: (1)
11January 1 following attainment of age 65, (2) January 1
12following the first anniversary of retirement, or (3) the first
13day of the month following receipt of the required qualifying
14contribution from the annuitant. The initial monthly increase
15shall be computed on the basis of the period elapsed between
16the later of the date of last retirement or attainment of age
1750 and the date of qualification for the initial increase, at
18the rate of 1 1/2% of the original monthly retirement annuity
19per year for periods prior to September 1, 1971, and at the
20rate of 2% per year for periods between September 1, 1971 and
21September 1, 1978, and at the rate of 3% per year for periods
22thereafter.
23    Except as otherwise provided in subsection (b-1), if
24applicable, an An annuitant who has received an initial
25increase under this Section, shall be entitled, on each January
261 following the granting of the initial increase, to an

 

 

09900SB0017sam001- 114 -LRB099 05660 RPS 52198 a

1increase of 3% of the original monthly retirement annuity for
2increases granted prior to January 1, 1990, and equal to 3% of
3the total annuity, including previous increases under this
4Section, for increases granted on or after January 1, 1990. The
5original monthly retirement annuity for computations under
6this subsection (b) shall be considered to be $83.34 for any
7annuitant entitled to benefits under Section 16-134. The
8minimum original disability retirement annuity for
9computations under this subsection (b) shall be considered to
10be $33.34 per month for any annuitant retired on account of
11disability.
12    (b-1) Notwithstanding any other provision of this Article,
13for a Tier 1 employee who made the election under paragraph (1)
14of subsection (a) of Section 16-122.9:
15        (1) The initial increase in retirement annuity under
16    this Section shall occur on the January 1 occurring either
17    on or after the attainment of age 67 or the fifth
18    anniversary of the annuity start date, whichever is
19    earlier.
20        (2) The amount of each automatic annual increase in
21    retirement annuity occurring on or after the effective date
22    of that election shall be calculated as a percentage of the
23    originally granted retirement annuity, equal to 3% or
24    one-half the annual unadjusted percentage increase (but
25    not less than zero) in the consumer price index-u for the
26    12 months ending with the September preceding each November

 

 

09900SB0017sam001- 115 -LRB099 05660 RPS 52198 a

1    1, whichever is less. If the annual unadjusted percentage
2    change in the consumer price index-u for the 12 months
3    ending with the September preceding each November 1 is zero
4    or there is a decrease, then the annuity shall not be
5    increased.
6    For the purposes of this Section, "consumer price index-u"
7means the index published by the Bureau of Labor Statistics of
8the United States Department of Labor that measures the average
9change in prices of goods and services purchased by all urban
10consumers, United States city average, all items, 1982-84 =
11100. The new amount resulting from each annual adjustment shall
12be determined by the Public Pension Division of the Department
13of Insurance and made available to the board of the retirement
14system by November 1 of each year.
15    (c) An annuitant who otherwise qualifies for annual
16increases under this Section must make a one-time payment of 1%
17of the monthly final average salary for each full year of the
18creditable service forming the basis of the retirement annuity
19or, if the retirement annuity was not computed using final
20average salary, 1% of the original monthly retirement annuity
21for each full year of service forming the basis of the
22retirement annuity.
23    (d) In addition to other increases which may be provided by
24this Section, regardless of creditable service, annuitants not
25meeting the service requirements of Section 16-133.1 and whose
26retirement annuity began on or before January 1, 1971 shall

 

 

09900SB0017sam001- 116 -LRB099 05660 RPS 52198 a

1receive, on January 1, 1981, an increase in the retirement
2annuity then being paid of one dollar per month for each year
3of creditable service forming the basis of the retirement
4allowance. On January 1, 1982, annuitants whose retirement
5annuity began on or before January 1, 1977, shall receive an
6increase in the retirement annuity then being paid of one
7dollar per month for each year of creditable service.
8    On January 1, 1987, any annuitant whose retirement annuity
9began on or before January 1, 1977, shall receive an increase
10in the monthly retirement annuity equal to 8 per year of
11creditable service times the number of years that have elapsed
12since the annuity began.
13(Source: P.A. 86-273.)
 
14    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
15    (Text of Section WITHOUT the changes made by P.A. 98-599,
16which has been held unconstitutional)
17    Sec. 16-152. Contributions by members.
18    (a) Except as otherwise provided in subsection (a-5), each
19Each member shall make contributions for membership service to
20this System as follows:
21        (1) Effective July 1, 1998, contributions of 7.50% of
22    salary towards the cost of the retirement annuity. Such
23    contributions shall be deemed "normal contributions".
24        (2) Effective July 1, 1969, contributions of 1/2 of 1%
25    of salary toward the cost of the automatic annual increase

 

 

09900SB0017sam001- 117 -LRB099 05660 RPS 52198 a

1    in retirement annuity provided under Section 16-133.1.
2        (3) Effective July 24, 1959, contributions of 1% of
3    salary towards the cost of survivor benefits. Such
4    contributions shall not be credited to the individual
5    account of the member and shall not be subject to refund
6    except as provided under Section 16-143.2.
7        (4) Effective July 1, 2005, contributions of 0.40% of
8    salary toward the cost of the early retirement without
9    discount option provided under Section 16-133.2. This
10    contribution shall cease upon termination of the early
11    retirement without discount option as provided in Section
12    16-133.2.
13    (a-5) Beginning July 1, 2018 or the effective date of the
14Tier 1 employee's election under paragraph (1) of subsection
15(a) of Section 16-122.9, whichever is later, in lieu of the
16contributions otherwise required under subsection (a), each
17Tier 1 employee who made the election under paragraph (1) of
18subsection (a) of Section 16-122.9 shall make contributions as
19follows:
20        (1) Contributions of 7.50% of salary towards the cost
21    of the retirement annuity. Such contributions shall be
22    deemed "normal contributions".
23        (2) Contributions of 0.60% towards the cost of survivor
24    benefits. Such contributions shall not be credited to the
25    individual account of the member and shall not be subject
26    to refund except as provided in Section 16-143.2.

 

 

09900SB0017sam001- 118 -LRB099 05660 RPS 52198 a

1        (3) Contributions of 0.40% of salary toward the cost of
2    the early retirement without discount option provided
3    under Section 16-133.2. This contribution shall cease upon
4    termination of the early retirement without discount
5    option as provided in Section 16-133.2.
6    (b) The minimum required contribution for any year of
7full-time teaching service shall be $192.
8    (c) Contributions shall not be required of any annuitant
9receiving a retirement annuity who is given employment as
10permitted under Section 16-118 or 16-150.1.
11    (d) A person who (i) was a member before July 1, 1998, (ii)
12retires with more than 34 years of creditable service, and
13(iii) does not elect to qualify for the augmented rate under
14Section 16-129.1 shall be entitled, at the time of retirement,
15to receive a partial refund of contributions made under this
16Section for service occurring after the later of June 30, 1998
17or attainment of 34 years of creditable service, in an amount
18equal to 1.00% of the salary upon which those contributions
19were based.
20    (e) A member's contributions toward the cost of early
21retirement without discount made under item (a)(4) of this
22Section shall not be refunded if the member has elected early
23retirement without discount under Section 16-133.2 and has
24begun to receive a retirement annuity under this Article
25calculated in accordance with that election. Otherwise, a
26member's contributions toward the cost of early retirement

 

 

09900SB0017sam001- 119 -LRB099 05660 RPS 52198 a

1without discount made under item (a)(4) of this Section shall
2be refunded according to whichever one of the following
3circumstances occurs first:
4        (1) The contributions shall be refunded to the member,
5    without interest, within 120 days after the member's
6    retirement annuity commences, if the member does not elect
7    early retirement without discount under Section 16-133.2.
8        (2) The contributions shall be included, without
9    interest, in any refund claimed by the member under Section
10    16-151.
11        (3) The contributions shall be refunded to the member's
12    designated beneficiary (or if there is no beneficiary, to
13    the member's estate), without interest, if the member dies
14    without having begun to receive a retirement annuity under
15    this Article.
16        (4) The contributions shall be refunded to the member,
17    without interest, if the early retirement without discount
18    option provided under subsection (d) of Section 16-133.2 is
19    terminated. In that event, the System shall provide to the
20    member, within 120 days after the option is terminated, an
21    application for a refund of those contributions.
22(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642,
23eff. 7-28-16.)
 
24    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
25    (Text of Section WITHOUT the changes made by P.A. 98-599,

 

 

09900SB0017sam001- 120 -LRB099 05660 RPS 52198 a

1which has been held unconstitutional)
2    Sec. 16-158. Contributions by State and other employing
3units.
4    (a) The State shall make contributions to the System by
5means of appropriations from the Common School Fund and other
6State funds of amounts which, together with other employer
7contributions, employee contributions, investment income, and
8other income, will be sufficient to meet the cost of
9maintaining and administering the System on a 90% funded basis
10in accordance with actuarial recommendations.
11    The Board shall determine the amount of State contributions
12required for each fiscal year on the basis of the actuarial
13tables and other assumptions adopted by the Board and the
14recommendations of the actuary, using the formula in subsection
15(b-3).
16    (a-1) Annually, on or before November 15 until November 15,
172011, the Board shall certify to the Governor the amount of the
18required State contribution for the coming fiscal year. The
19certification under this subsection (a-1) shall include a copy
20of the actuarial recommendations upon which it is based and
21shall specifically identify the System's projected State
22normal cost for that fiscal year.
23    On or before May 1, 2004, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2005, taking
26into account the amounts appropriated to and received by the

 

 

09900SB0017sam001- 121 -LRB099 05660 RPS 52198 a

1System under subsection (d) of Section 7.2 of the General
2Obligation Bond Act.
3    On or before July 1, 2005, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2006, taking
6into account the changes in required State contributions made
7by this amendatory Act of the 94th General Assembly.
8    On or before April 1, 2011, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2011, applying
11the changes made by Public Act 96-889 to the System's assets
12and liabilities as of June 30, 2009 as though Public Act 96-889
13was approved on that date.
14    (a-5) On or before November 1 of each year, beginning
15November 1, 2012, the Board shall submit to the State Actuary,
16the Governor, and the General Assembly a proposed certification
17of the amount of the required State contribution to the System
18for the next fiscal year, along with all of the actuarial
19assumptions, calculations, and data upon which that proposed
20certification is based. On or before January 1 of each year,
21beginning January 1, 2013, the State Actuary shall issue a
22preliminary report concerning the proposed certification and
23identifying, if necessary, recommended changes in actuarial
24assumptions that the Board must consider before finalizing its
25certification of the required State contributions. On or before
26January 15, 2013 and each January 15 thereafter, the Board

 

 

09900SB0017sam001- 122 -LRB099 05660 RPS 52198 a

1shall certify to the Governor and the General Assembly the
2amount of the required State contribution for the next fiscal
3year. The Board's certification must note any deviations from
4the State Actuary's recommended changes, the reason or reasons
5for not following the State Actuary's recommended changes, and
6the fiscal impact of not following the State Actuary's
7recommended changes on the required State contribution.
8    (a-10) As soon as practical after the effective date of
9this amendatory Act of the 99th General Assembly, the State
10Actuary and the Board shall recalculate and recertify to the
11Governor and the General Assembly the amount of the State
12contribution to the System for State fiscal year 2018, taking
13into account the changes in required State contributions made
14by this amendatory Act of the 99th General Assembly.
15    (a-15) On or before May 1, 2018, the Board shall
16recalculate and recertify to the Governor and the General
17Assembly the amount of the required State contribution to the
18System for State fiscal year 2019, taking into account the
19effect on the System's liabilities of the elections made under
20Section 16-122.9.
21    On or before October 1, 2018, the Board shall recalculate
22and recertify to the Governor and the General Assembly the
23amount of the required State contribution to the System for
24State fiscal year 2019, taking into account the reduction
25specified under item (3) of subsection (b-3) of this Section.
26    (b) Through State fiscal year 1995, the State contributions

 

 

09900SB0017sam001- 123 -LRB099 05660 RPS 52198 a

1shall be paid to the System in accordance with Section 18-7 of
2the School Code.
3    (b-1) Beginning in State fiscal year 1996, on the 15th day
4of each month, or as soon thereafter as may be practicable, the
5Board shall submit vouchers for payment of State contributions
6to the System, in a total monthly amount of one-twelfth of the
7required annual State contribution certified under subsection
8(a-1). From the effective date of this amendatory Act of the
993rd General Assembly through June 30, 2004, the Board shall
10not submit vouchers for the remainder of fiscal year 2004 in
11excess of the fiscal year 2004 certified contribution amount
12determined under this Section after taking into consideration
13the transfer to the System under subsection (a) of Section
146z-61 of the State Finance Act. These vouchers shall be paid by
15the State Comptroller and Treasurer by warrants drawn on the
16funds appropriated to the System for that fiscal year.
17    If in any month the amount remaining unexpended from all
18other appropriations to the System for the applicable fiscal
19year (including the appropriations to the System under Section
208.12 of the State Finance Act and Section 1 of the State
21Pension Funds Continuing Appropriation Act) is less than the
22amount lawfully vouchered under this subsection, the
23difference shall be paid from the Common School Fund under the
24continuing appropriation authority provided in Section 1.1 of
25the State Pension Funds Continuing Appropriation Act.
26    (b-2) Allocations from the Common School Fund apportioned

 

 

09900SB0017sam001- 124 -LRB099 05660 RPS 52198 a

1to school districts not coming under this System shall not be
2diminished or affected by the provisions of this Article.
3    (b-3) For State fiscal years 2018 through 2045 (except as
4otherwise provided for fiscal year 2019), the minimum
5contribution to the System to be made by the State for each
6fiscal year shall be an amount determined by the System to be
7sufficient to bring the total assets of the System up to 90% of
8the total actuarial liabilities of the System by the end of
9State fiscal year 2045. In making these determinations, the
10required State contribution shall be calculated each year as a
11level percentage of total payroll, including payroll that is
12not deemed pensionable, over the years remaining to and
13including fiscal year 2045 and shall be determined under the
14projected unit credit actuarial cost method.
15    For State fiscal year 2019:
16        (1) The initial calculation and certification shall be
17    based on the amount determined above.
18        (2) For purposes of the recertification due on or
19    before May 1, 2018, the recalculation of the required State
20    contribution for fiscal year 2019 shall take into account
21    the effect on the System's liabilities of the elections
22    made under Section 16-122.9.
23        (3) For purposes of the recertification due on or
24    before October 1, 2018, the total required State
25    contribution for fiscal year 2019 shall be reduced by the
26    amount of the consideration payments made to Tier 1

 

 

09900SB0017sam001- 125 -LRB099 05660 RPS 52198 a

1    employees who made the election under paragraph (1) of
2    subsection (a) of Section 16-122.9.
3    Beginning in State fiscal year 2018, any increase or
4decrease in State contribution over the prior fiscal year due
5exclusively to changes in actuarial or investment assumptions
6adopted by the Board shall be included in the State
7contribution to the System, as a percentage of the applicable
8employee payroll, and shall be increased in equal annual
9increments so that by the State fiscal year occurring 5 years
10after the adoption of the actuarial or investment assumptions,
11the State is contributing at the rate otherwise required under
12this Section.
13    For State fiscal years 2012 through 2017 2045, the minimum
14contribution to the System to be made by the State for each
15fiscal year shall be an amount determined by the System to be
16sufficient to bring the total assets of the System up to 90% of
17the total actuarial liabilities of the System by the end of
18State fiscal year 2045. In making these determinations, the
19required State contribution shall be calculated each year as a
20level percentage of payroll over the years remaining to and
21including fiscal year 2045 and shall be determined under the
22projected unit credit actuarial cost method.
23    For State fiscal years 1996 through 2005, the State
24contribution to the System, as a percentage of the applicable
25employee payroll, shall be increased in equal annual increments
26so that by State fiscal year 2011, the State is contributing at

 

 

09900SB0017sam001- 126 -LRB099 05660 RPS 52198 a

1the rate required under this Section; except that in the
2following specified State fiscal years, the State contribution
3to the System shall not be less than the following indicated
4percentages of the applicable employee payroll, even if the
5indicated percentage will produce a State contribution in
6excess of the amount otherwise required under this subsection
7and subsection (a), and notwithstanding any contrary
8certification made under subsection (a-1) before the effective
9date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
10in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
112003; and 13.56% in FY 2004.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2006 is
14$534,627,700.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2007 is
17$738,014,500.
18    For each of State fiscal years 2008 through 2009, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21from the required State contribution for State fiscal year
222007, so that by State fiscal year 2011, the State is
23contributing at the rate otherwise required under this Section.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2010 is
26$2,089,268,000 and shall be made from the proceeds of bonds

 

 

09900SB0017sam001- 127 -LRB099 05660 RPS 52198 a

1sold in fiscal year 2010 pursuant to Section 7.2 of the General
2Obligation Bond Act, less (i) the pro rata share of bond sale
3expenses determined by the System's share of total bond
4proceeds, (ii) any amounts received from the Common School Fund
5in fiscal year 2010, and (iii) any reduction in bond proceeds
6due to the issuance of discounted bonds, if applicable.
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 subsection (a-1) of this Section and shall be made
11from the proceeds of bonds sold in fiscal year 2011 pursuant to
12Section 7.2 of the General Obligation Bond Act, less (i) the
13pro rata share of bond sale expenses determined by the System's
14share of total bond proceeds, (ii) any amounts received from
15the Common School Fund in fiscal year 2011, and (iii) any
16reduction in bond proceeds due to the issuance of discounted
17bonds, if applicable. This amount shall include, in addition to
18the amount certified by the System, an amount necessary to meet
19employer contributions required by the State as an employer
20under paragraph (e) of this Section, which may also be used by
21the System for contributions required by paragraph (a) of
22Section 16-127.
23    Beginning in State fiscal year 2046, the minimum State
24contribution for each fiscal year shall be the amount needed to
25maintain the total assets of the System at 90% of the total
26actuarial liabilities of the System.

 

 

09900SB0017sam001- 128 -LRB099 05660 RPS 52198 a

1    Amounts received by the System pursuant to Section 25 of
2the Budget Stabilization Act or Section 8.12 of the State
3Finance Act in any fiscal year do not reduce and do not
4constitute payment of any portion of the minimum State
5contribution required under this Article in that fiscal year.
6Such amounts shall not reduce, and shall not be included in the
7calculation of, the required State contributions under this
8Article in any future year until the System has reached a
9funding ratio of at least 90%. A reference in this Article to
10the "required State contribution" or any substantially similar
11term does not include or apply to any amounts payable to the
12System under Section 25 of the Budget Stabilization Act.
13    Notwithstanding any other provision of this Section, the
14required State contribution for State fiscal year 2005 and for
15fiscal year 2008 and each fiscal year thereafter, as calculated
16under this Section and certified under subsection (a-1), shall
17not exceed an amount equal to (i) the amount of the required
18State contribution that would have been calculated under this
19Section for that fiscal year if the System had not received any
20payments under subsection (d) of Section 7.2 of the General
21Obligation Bond Act, minus (ii) the portion of the State's
22total debt service payments for that fiscal year on the bonds
23issued in fiscal year 2003 for the purposes of that Section
247.2, as determined and certified by the Comptroller, that is
25the same as the System's portion of the total moneys
26distributed under subsection (d) of Section 7.2 of the General

 

 

09900SB0017sam001- 129 -LRB099 05660 RPS 52198 a

1Obligation Bond Act. In determining this maximum for State
2fiscal years 2008 through 2010, however, the amount referred to
3in item (i) shall be increased, as a percentage of the
4applicable employee payroll, in equal increments calculated
5from the sum of the required State contribution for State
6fiscal year 2007 plus the applicable portion of the State's
7total debt service payments for fiscal year 2007 on the bonds
8issued in fiscal year 2003 for the purposes of Section 7.2 of
9the General Obligation Bond Act, so that, by State fiscal year
102011, the State is contributing at the rate otherwise required
11under this Section.
12    (c) Payment of the required State contributions and of all
13pensions, retirement annuities, death benefits, refunds, and
14other benefits granted under or assumed by this System, and all
15expenses in connection with the administration and operation
16thereof, are obligations of the State.
17    If members are paid from special trust or federal funds
18which are administered by the employing unit, whether school
19district or other unit, the employing unit shall pay to the
20System from such funds the full accruing retirement costs based
21upon that service, which, beginning July 1, 2014, shall be at a
22rate, expressed as a percentage of salary, equal to the total
23minimum contribution to the System to be made by the State for
24that fiscal year, including both normal cost and unfunded
25liability components, expressed as a percentage of payroll, as
26determined by the System under subsection (b-3) of this

 

 

09900SB0017sam001- 130 -LRB099 05660 RPS 52198 a

1Section. Employer contributions, based on salary paid to
2members from federal funds, may be forwarded by the
3distributing agency of the State of Illinois to the System
4prior to allocation, in an amount determined in accordance with
5guidelines established by such agency and the System. Any
6contribution for fiscal year 2015 collected as a result of the
7change made by this amendatory Act of the 98th General Assembly
8shall be considered a State contribution under subsection (b-3)
9of this Section.
10    (d) Effective July 1, 1986, any employer of a teacher as
11defined in paragraph (8) of Section 16-106 shall pay the
12employer's normal cost of benefits based upon the teacher's
13service, in addition to employee contributions, as determined
14by the System. Such employer contributions shall be forwarded
15monthly in accordance with guidelines established by the
16System.
17    However, with respect to benefits granted under Section
1816-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
19of Section 16-106, the employer's contribution shall be 12%
20(rather than 20%) of the member's highest annual salary rate
21for each year of creditable service granted, and the employer
22shall also pay the required employee contribution on behalf of
23the teacher. For the purposes of Sections 16-133.4 and
2416-133.5, a teacher as defined in paragraph (8) of Section
2516-106 who is serving in that capacity while on leave of
26absence from another employer under this Article shall not be

 

 

09900SB0017sam001- 131 -LRB099 05660 RPS 52198 a

1considered an employee of the employer from which the teacher
2is on leave.
3    (e) Beginning July 1, 1998, every employer of a teacher
4shall pay to the System an employer contribution computed as
5follows:
6        (1) Beginning July 1, 1998 through June 30, 1999, the
7    employer contribution shall be equal to 0.3% of each
8    teacher's salary.
9        (2) Beginning July 1, 1999 and thereafter, the employer
10    contribution shall be equal to 0.58% of each teacher's
11    salary.
12The school district or other employing unit may pay these
13employer contributions out of any source of funding available
14for that purpose and shall forward the contributions to the
15System on the schedule established for the payment of member
16contributions.
17    These employer contributions are intended to offset a
18portion of the cost to the System of the increases in
19retirement benefits resulting from this amendatory Act of 1998.
20    Each employer of teachers is entitled to a credit against
21the contributions required under this subsection (e) with
22respect to salaries paid to teachers for the period January 1,
232002 through June 30, 2003, equal to the amount paid by that
24employer under subsection (a-5) of Section 6.6 of the State
25Employees Group Insurance Act of 1971 with respect to salaries
26paid to teachers for that period.

 

 

09900SB0017sam001- 132 -LRB099 05660 RPS 52198 a

1    The additional 1% employee contribution required under
2Section 16-152 by this amendatory Act of 1998 is the
3responsibility of the teacher and not the teacher's employer,
4unless the employer agrees, through collective bargaining or
5otherwise, to make the contribution on behalf of the teacher.
6    If an employer is required by a contract in effect on May
71, 1998 between the employer and an employee organization to
8pay, on behalf of all its full-time employees covered by this
9Article, all mandatory employee contributions required under
10this Article, then the employer shall be excused from paying
11the employer contribution required under this subsection (e)
12for the balance of the term of that contract. The employer and
13the employee organization shall jointly certify to the System
14the existence of the contractual requirement, in such form as
15the System may prescribe. This exclusion shall cease upon the
16termination, extension, or renewal of the contract at any time
17after May 1, 1998.
18    (f) For school years beginning on or after June 1, 2005 and
19before July 1, 2018, if If the amount of a teacher's salary for
20any school year used to determine final average salary exceeds
21the member's annual full-time salary rate with the same
22employer for the previous school year by more than 6%, the
23teacher's employer shall pay to the System, in addition to all
24other payments required under this Section and in accordance
25with guidelines established by the System, the present value of
26the increase in benefits resulting from the portion of the

 

 

09900SB0017sam001- 133 -LRB099 05660 RPS 52198 a

1increase in salary that is in excess of 6%. This present value
2shall be computed by the System on the basis of the actuarial
3assumptions and tables used in the most recent actuarial
4valuation of the System that is available at the time of the
5computation. If a teacher's salary for the 2005-2006 school
6year is used to determine final average salary under this
7subsection (f), then the changes made to this subsection (f) by
8Public Act 94-1057 shall apply in calculating whether the
9increase in his or her salary is in excess of 6%. For the
10purposes of this Section, change in employment under Section
1110-21.12 of the School Code on or after June 1, 2005 shall
12constitute a change in employer. The System may require the
13employer to provide any pertinent information or
14documentation. The changes made to this subsection (f) by this
15amendatory Act of the 94th General Assembly apply without
16regard to whether the teacher was in service on or after its
17effective date.
18    Whenever it determines that a payment is or may be required
19under this subsection, the System shall calculate the amount of
20the payment and bill the employer for that amount. The bill
21shall specify the calculations used to determine the amount
22due. If the employer disputes the amount of the bill, it may,
23within 30 days after receipt of the bill, apply to the System
24in writing for a recalculation. The application must specify in
25detail the grounds of the dispute and, if the employer asserts
26that the calculation is subject to subsection (g) or (h) of

 

 

09900SB0017sam001- 134 -LRB099 05660 RPS 52198 a

1this Section, must include an affidavit setting forth and
2attesting to all facts within the employer's knowledge that are
3pertinent to the applicability of that subsection. Upon
4receiving a timely application for recalculation, the System
5shall review the application and, if appropriate, recalculate
6the amount due.
7    The employer contributions required under this subsection
8(f) may be paid in the form of a lump sum within 90 days after
9receipt of the bill. If the employer contributions are not paid
10within 90 days after receipt of the bill, then interest will be
11charged at a rate equal to the System's annual actuarially
12assumed rate of return on investment compounded annually from
13the 91st day after receipt of the bill. Payments must be
14concluded within 3 years after the employer's receipt of the
15bill.
16    (f-1) For school years beginning on or after July 1, 2018,
17if the amount of a teacher's salary for any school year used to
18determine final average salary exceeds the member's annual
19full-time salary rate with the same employer for the previous
20school year by more than the unadjusted percentage increase in
21the consumer price index-u for the calendar year ending on the
22December 31 immediately preceding the beginning of the school
23year, then the teacher's employer shall pay to the System, in
24addition to all other payments required under this Section and
25in accordance with guidelines established by the System, the
26present value of the increase in benefits resulting from the

 

 

09900SB0017sam001- 135 -LRB099 05660 RPS 52198 a

1portion of the increase in salary that is in excess of the
2unadjusted percentage increase in the consumer price index-u
3for the applicable calendar year. This present value shall be
4computed by the System on the basis of the actuarial
5assumptions and tables used in the most recent actuarial
6valuation of the System that is available at the time of the
7computation. The System may require the employer to provide any
8pertinent information or documentation.
9    Whenever it determines that a payment is or may be required
10under this subsection (f-1), the System shall calculate the
11amount of the payment and bill the employer for that amount.
12The bill shall specify the calculations used to determine the
13amount due. If the employer disputes the amount of the bill, it
14may, within 30 days after receipt of the bill, apply to the
15System in writing for a recalculation. The application must
16specify in detail the grounds of the dispute and, if the
17employer asserts that the calculation is subject to subsection
18(h-1) of this Section, must include an affidavit setting forth
19and attesting to all facts within the employer's knowledge that
20are pertinent to the applicability of subsection (h-1). Upon
21receiving a timely application for recalculation, the System
22shall review the application and, if appropriate, recalculate
23the amount due.
24    The employer contributions required under this subsection
25(f-1) may be paid in the form of a lump sum within 90 days after
26receipt of the bill. If the employer contributions are not paid

 

 

09900SB0017sam001- 136 -LRB099 05660 RPS 52198 a

1within 90 days after receipt of the bill, then interest shall
2be charged at a rate equal to the System's annual actuarially
3assumed rate of return on investment compounded annually from
4the 91st day after receipt of the bill. Payments must be
5concluded within 3 years after the employer's receipt of the
6bill.
7    For the purposes of this Section, "consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the average
10change in prices of goods and services purchased by all urban
11consumers, United States city average, all items, 1982-84 =
12100. The new amount resulting from each annual adjustment shall
13be determined by the Public Pension Division of the Department
14of Insurance and made available to the boards of the retirement
15systems and pension funds by November 1 of each year.
16    (g) This subsection (g) applies only to payments made or
17salary increases given on or after June 1, 2005 but before July
181, 2011. The changes made by Public Act 94-1057 shall not
19require the System to refund any payments received before July
2031, 2006 (the effective date of Public Act 94-1057).
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude salary increases paid to teachers
23under contracts or collective bargaining agreements entered
24into, amended, or renewed before June 1, 2005.
25    When assessing payment for any amount due under subsection
26(f), the System shall exclude salary increases paid to a

 

 

09900SB0017sam001- 137 -LRB099 05660 RPS 52198 a

1teacher at a time when the teacher is 10 or more years from
2retirement eligibility under Section 16-132 or 16-133.2.
3    When assessing payment for any amount due under subsection
4(f), the System shall exclude salary increases resulting from
5overload work, including summer school, when the school
6district has certified to the System, and the System has
7approved the certification, that (i) the overload work is for
8the sole purpose of classroom instruction in excess of the
9standard number of classes for a full-time teacher in a school
10district during a school year and (ii) the salary increases are
11equal to or less than the rate of pay for classroom instruction
12computed on the teacher's current salary and work schedule.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude a salary increase resulting from
15a promotion (i) for which the employee is required to hold a
16certificate or supervisory endorsement issued by the State
17Teacher Certification Board that is a different certification
18or supervisory endorsement than is required for the teacher's
19previous position and (ii) to a position that has existed and
20been filled by a member for no less than one complete academic
21year and the salary increase from the promotion is an increase
22that results in an amount no greater than the lesser of the
23average salary paid for other similar positions in the district
24requiring the same certification or the amount stipulated in
25the collective bargaining agreement for a similar position
26requiring the same certification.

 

 

09900SB0017sam001- 138 -LRB099 05660 RPS 52198 a

1    When assessing payment for any amount due under subsection
2(f), the System shall exclude any payment to the teacher from
3the State of Illinois or the State Board of Education over
4which the employer does not have discretion, notwithstanding
5that the payment is included in the computation of final
6average salary.
7    (h) When assessing payment for any amount due under
8subsection (f), the System shall exclude any salary increase
9described in subsection (g) of this Section given on or after
10July 1, 2011 but before July 1, 2014 under a contract or
11collective bargaining agreement entered into, amended, or
12renewed on or after June 1, 2005 but before July 1, 2011.
13Notwithstanding any other provision of this Section, any
14payments made or salary increases given after June 30, 2014
15shall be used in assessing payment for any amount due under
16subsection (f) of this Section.
17    (h-1) When assessing payment for any amount due under
18subsection (f-1), the System shall exclude earnings increases
19paid to participants under contracts or collective bargaining
20agreements entered into, amended, or renewed before the
21effective date of this amendatory Act of the 99th General
22Assembly.
23    (i) The System shall prepare a report and file copies of
24the report with the Governor and the General Assembly by
25January 1, 2007 that contains all of the following information:
26        (1) The number of recalculations required by the

 

 

09900SB0017sam001- 139 -LRB099 05660 RPS 52198 a

1    changes made to this Section by Public Act 94-1057 for each
2    employer.
3        (2) The dollar amount by which each employer's
4    contribution to the System was changed due to
5    recalculations required by Public Act 94-1057.
6        (3) The total amount the System received from each
7    employer as a result of the changes made to this Section by
8    Public Act 94-4.
9        (4) The increase in the required State contribution
10    resulting from the changes made to this Section by Public
11    Act 94-1057.
12    (i-5) For school years beginning on or after July 1, 2018,
13if the amount of a participant's salary for any school year,
14determined on a full-time equivalent basis, exceeds the amount
15of the salary set for the Governor, the participant's employer
16shall pay to the System, in addition to all other payments
17required under this Section and in accordance with guidelines
18established by the System, the amount of earnings that exceed
19the salary set for the Governor multiplied by the level
20percentage of payroll used in that fiscal year as determined by
21the System to be sufficient to bring the total assets of the
22System up to 90% of the total actuarial liabilities of the
23System by the end of State fiscal year 2045. This amount shall
24be computed by the System on the basis of the actuarial
25assumptions and tables used in the most recent actuarial
26valuation of the System that is available at the time of the

 

 

09900SB0017sam001- 140 -LRB099 05660 RPS 52198 a

1computation. The System may require the employer to provide any
2pertinent information or documentation.
3    Whenever it determines that a payment is or may be required
4under this subsection, the System shall calculate the amount of
5the payment and bill the employer for that amount. The bill
6shall specify the calculations used to determine the amount
7due. If the employer disputes the amount of the bill, it may,
8within 30 days after receipt of the bill, apply to the System
9in writing for a recalculation. The application must specify in
10detail the grounds of the dispute. Upon receiving a timely
11application for recalculation, the System shall review the
12application and, if appropriate, recalculate the amount due.
13    The employer contributions required under this subsection
14may be paid in the form of a lump sum within 90 days after
15receipt of the bill. If the employer contributions are not paid
16within 90 days after receipt of the bill, then interest will be
17charged at a rate equal to the System's annual actuarially
18assumed rate of return on investment compounded annually from
19the 91st day after receipt of the bill. Payments must be
20concluded within 3 years after the employer's receipt of the
21bill.
22    (j) For purposes of determining the required State
23contribution to the System, the value of the System's assets
24shall be equal to the actuarial value of the System's assets,
25which shall be calculated as follows:
26    As of June 30, 2008, the actuarial value of the System's

 

 

09900SB0017sam001- 141 -LRB099 05660 RPS 52198 a

1assets shall be equal to the market value of the assets as of
2that date. In determining the actuarial value of the System's
3assets for fiscal years after June 30, 2008, any actuarial
4gains or losses from investment return incurred in a fiscal
5year shall be recognized in equal annual amounts over the
65-year period following that fiscal year.
7    (k) For purposes of determining the required State
8contribution to the system for a particular year, the actuarial
9value of assets shall be assumed to earn a rate of return equal
10to the system's actuarially assumed rate of return.
11    (l) If Section 16-122.9 is determined to be
12unconstitutional or otherwise invalid by a final unappealable
13decision of an Illinois court or a court of competent
14jurisdiction, then the changes made to this Section by this
15amendatory Act of the 99th General Assembly shall not take
16effect and are repealed by operation of law.
17(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1896-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
196-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
20    (40 ILCS 5/16-203)
21    (Text of Section WITHOUT the changes made by P.A. 98-599,
22which has been held unconstitutional)
23    Sec. 16-203. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

09900SB0017sam001- 142 -LRB099 05660 RPS 52198 a

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 June 1, 2005 (the
5effective date of Public Act 94-4). "New benefit increase",
6however, does not include any benefit increase resulting from
7the changes made to this Article by Public Act 95-910 or this
8amendatory Act of the 99th 95th 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 Financial and Professional Regulation. A new
25benefit increase created by a Public Act that does not include
26the additional funding required under this subsection is null

 

 

09900SB0017sam001- 143 -LRB099 05660 RPS 52198 a

1and void. If the Public Pension Division determines that the
2additional funding provided for a new benefit increase under
3this subsection is or has become inadequate, it may so certify
4to the Governor and the State Comptroller and, in the absence
5of corrective action by the General Assembly, the new benefit
6increase shall expire at the end of the fiscal year in which
7the 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; 95-910, eff. 8-26-08.)
 
25    (40 ILCS 5/16-205.1 new)

 

 

09900SB0017sam001- 144 -LRB099 05660 RPS 52198 a

1    Sec. 16-205.1. 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. An active Tier
23    1 employee who elects to cease accruing benefits in his or
24    her defined benefit plan shall be prohibited from
25    purchasing service credit on or after the date of his or
26    her election. A Tier 1 employee making the irrevocable

 

 

09900SB0017sam001- 145 -LRB099 05660 RPS 52198 a

1    election provided under this Section shall not receive
2    interest accruals to his or her benefit under paragraph (A)
3    of subsection (a) of Section 16-133 on or after the date of
4    his or her election.
5        (2) Participants in the defined contribution plan
6    shall pay employee contributions at the same rate as Tier 1
7    employees in this System who do not participate in the
8    defined contribution plan.
9        (3) State contributions shall be paid into the accounts
10    of all participants in the defined contribution plan at a
11    uniform rate, expressed as a percentage of salary and
12    determined for each year. This rate shall be no higher than
13    the employer's normal cost for Tier 1 employees in the
14    defined benefit plan for that year, as determined by the
15    System and expressed as a percentage of salary, and shall
16    be no lower than 0% of salary. The State shall adjust this
17    rate annually.
18        (4) The defined contribution plan shall require 5 years
19    of participation in the defined contribution plan before
20    vesting in State contributions. If the participant fails to
21    vest in them, the State contributions, and the earnings
22    thereon, shall be forfeited.
23        (5) The defined contribution plan may provide for
24    participants in the plan to be eligible for the defined
25    disability benefits available to other participants under
26    this Article. If it does, the System shall reduce the

 

 

09900SB0017sam001- 146 -LRB099 05660 RPS 52198 a

1    employee contributions credited to the member's defined
2    contribution plan account by an amount determined by the
3    System to cover the cost of offering such benefits.
4        (6) The defined contribution plan shall provide a
5    variety of options for investments. These options shall
6    include investments in a fund created by the System and
7    managed in accordance with legal and fiduciary standards,
8    as well as investment options otherwise available.
9        (7) The defined contribution plan shall provide a
10    variety of options for payouts to retirees and their
11    survivors.
12        (8) To the extent authorized under federal law and as
13    authorized by the System, the plan shall allow former
14    participants in the plan to transfer or roll over employee
15    and vested State contributions, and the earnings thereon,
16    into other qualified retirement plans.
17        (9) The System shall reduce the employee contributions
18    credited to the member's defined contribution plan account
19    by an amount determined by the System to cover the cost of
20    offering these benefits and any applicable administrative
21    fees.
22    (b) Only persons who are active Tier 1 employees of the
23System on the effective date of this Section are eligible to
24participate in the defined contribution plan. Participation in
25the defined contribution plan shall be limited to the first 5%
26of eligible persons who elect to participate. The election to

 

 

09900SB0017sam001- 147 -LRB099 05660 RPS 52198 a

1participate in the defined contribution plan is voluntary and
2irrevocable.
3    (c) An eligible Tier 1 employee may irrevocably elect to
4participate in the defined contribution plan by filing with the
5System a written application to participate that is received by
6the System prior to its determination that 5% of eligible
7persons have elected to participate in the defined contribution
8plan.
9    When the System first determines that 5% of eligible
10persons have elected to participate in the defined contribution
11plan, the System shall provide notice to previously eligible
12employees that the plan is no longer available and shall cease
13accepting applications to participate.
14    (d) The System shall make a good faith effort to contact
15each active Tier 1 employee who is eligible to participate in
16the defined contribution plan. The System shall mail
17information describing the option to join the defined
18contribution plan to each of these employees to his or her last
19known address on file with the System. If the employee is not
20responsive to other means of contact, it is sufficient for the
21System to publish the details of the option on its website.
22    Upon request for further information describing the
23option, the System shall provide employees with information
24from the System before exercising the option to join the plan,
25including information on the impact to their vested benefits or
26non-vested service. The individual consultation shall include

 

 

09900SB0017sam001- 148 -LRB099 05660 RPS 52198 a

1projections of the member's defined benefits at retirement or
2earlier termination of service and the value of the member's
3account at retirement or earlier termination of service. The
4System shall not provide advice or counseling with respect to
5whether the employee should exercise the option. The System
6shall inform Tier 1 employees who are eligible to participate
7in the defined contribution plan that they may also wish to
8obtain information and counsel relating to their option from
9any other available source, including but not limited to labor
10organizations, private counsel, and financial advisors.
11    (e) In no event shall the System, its staff, its authorized
12representatives, or the Board be liable for any information
13given to an employee under this Section. The System may
14coordinate with the Illinois Department of Central Management
15Services and other retirement systems administering a defined
16contribution plan in accordance with this amendatory Act of the
1799th General Assembly to provide information concerning the
18impact of the option set forth in this Section.
19    (f) Notwithstanding any other provision of this Section, no
20person shall begin participating in the defined contribution
21plan until it has attained qualified plan status and received
22all necessary approvals from the U.S. Internal Revenue Service.
23    (g) The System shall report on its progress under this
24Section, including the available details of the defined
25contribution plan and the System's plans for informing eligible
26Tier 1 employees about the plan, to the Governor and the

 

 

09900SB0017sam001- 149 -LRB099 05660 RPS 52198 a

1General Assembly on or before January 15, 2018.
2    (h) The intent of this amendatory Act of the 99th General
3Assembly is to ensure that the State's normal cost of
4participation in the defined contribution plan is similar, and
5if possible equal, to the State's normal cost of participation
6in the defined benefit plan, unless a lower State's normal cost
7is necessary to ensure cost neutrality.
8    (i) If Section 16-122.9 is determined to be
9unconstitutional or otherwise invalid by a final unappealable
10decision of an Illinois court or a court of competent
11jurisdiction, then this Section shall not take effect and is
12repealed by operation of law.
 
13    (40 ILCS 5/16-206.1 new)
14    Sec. 16-206.1. Defined contribution plan; termination. If
15the defined contribution plan is terminated or becomes
16inoperative pursuant to law, then each participant in the plan
17shall automatically be deemed to have been a contributing Tier
181 employee in the System's defined benefit plan during the time
19in which he or she participated in the defined contribution
20plan, and for that purpose the System shall be entitled to
21recover the amounts in the participant's defined contribution
22accounts.
 
23    (40 ILCS 5/17-106.05 new)
24    Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A

 

 

09900SB0017sam001- 150 -LRB099 05660 RPS 52198 a

1teacher under this Article who first became a member or
2participant before January 1, 2011 under any reciprocal
3retirement system or pension fund established under this Code
4other than a retirement system or pension fund established
5under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
6the purposes of the election under Section 17-115.5, "Tier 1
7employee" does not include a teacher under this Article who
8would qualify as a Tier 1 employee but who has made an
9irrevocable election on or before June 1, 2017 to retire from
10service pursuant to the terms of a collective bargaining
11agreement in effect on June 1, 2017, excluding any extension,
12amendment, or renewal of that agreement on or after that date,
13and has notified the Fund of that election.
 
14    (40 ILCS 5/17-113.4 new)
15    Sec. 17-113.4. Salary. "Salary" means any income in any
16form that qualifies as "average salary" or "annual rate of
17salary" for purposes of paragraph (1) of subsection (c) of
18Section 17-116 and "salary" for payroll deduction purposes
19under Sections 17-130, 17-131, and 17-132.
20    Notwithstanding any other provision of this Section,
21"salary" does not include any future increase in income that is
22offered by an employer for service as a Tier 1 employee under
23this Article pursuant to the condition set forth in subsection
24(c) of Section 17-115.5 and accepted under that condition by a
25Tier 1 employee who has made the election under paragraph (2)

 

 

09900SB0017sam001- 151 -LRB099 05660 RPS 52198 a

1of subsection (a) of Section 17-115.5.
 
2    (40 ILCS 5/17-113.5 new)
3    Sec. 17-113.5. Future increase in income. "Future increase
4in income" means an increase in income in any form offered by
5an employer to a Tier 1 employee for service under this Article
6after June 30, 2018 that qualifies as "salary", as defined in
7Section 17-113.4, or would qualify as "salary" but for the fact
8that it was offered to and accepted by a Tier 1 employee under
9the condition set forth in subsection (c) of Section 17-115.5.
10The term "future increase in income" does not include an
11increase in income in any form that is paid to a Tier 1
12employee under an employment contract or a collective
13bargaining agreement that is in effect on the effective date of
14this Section, but does include an increase in income in any
15form pursuant to an extension, amendment, or renewal of any
16such employment contract or collective bargaining agreement on
17or after the effective date of this Section.
 
18    (40 ILCS 5/17-115.5 new)
19    Sec. 17-115.5. Election by Tier 1 employees.
20    (a) Each active Tier 1 employee shall make an irrevocable
21election either:
22        (1) to agree to delay his or her eligibility for
23    automatic annual increases in service retirement pension
24    as provided in Section 17-119.2 and to have the amount of

 

 

09900SB0017sam001- 152 -LRB099 05660 RPS 52198 a

1    the automatic annual increases in his or her service
2    retirement pension that are otherwise provided for in this
3    Article calculated, instead, as provided in Section
4    17-119.2; or
5        (2) to not agree to paragraph (1) of this subsection.
6    The election required under this subsection (a) shall be
7made by each active Tier 1 employee no earlier than January 1,
82018 and no later than March 31, 2018, except that:
9        (i) a person who becomes a Tier 1 employee under this
10    Article on or after January 1, 2018 must make the election
11    under this subsection (a) within 60 days after becoming a
12    Tier 1 employee; and
13        (ii) a person who returns to active service as a Tier 1
14    employee under this Article on or after January 1, 2018 and
15    has not yet made an election under this Section must make
16    the election under this subsection (a) within 60 days after
17    returning to active service as a Tier 1 employee.
18    If a Tier 1 employee fails for any reason to make a
19required election under this subsection within the time
20specified, then the employee shall be deemed to have made the
21election under paragraph (2) of this subsection.
22    (a-5) If this Section is enjoined or stayed by an Illinois
23court or a court of competent jurisdiction pending the entry of
24a final and unappealable decision, and this Section is
25determined to be constitutional or otherwise valid by a final
26unappealable decision of an Illinois court or a court of

 

 

09900SB0017sam001- 153 -LRB099 05660 RPS 52198 a

1competent jurisdiction, then the election procedure set forth
2in subsection (a) of this Section shall commence on the 180th
3calendar day after the date of the issuance of the final
4unappealable decision and shall conclude at the end of the
5270th calendar day after that date.
6    (a-10) All elections under subsection (a) that are made or
7deemed to be made before July 1, 2018 shall take effect on July
81, 2018. Elections that are made or deemed to be made on or
9after July 1, 2018 shall take effect on the first day of the
10month following the month in which the election is made or
11deemed to be made.
12    (b) As adequate and legal consideration provided under this
13amendatory Act of the 99th General Assembly for making an
14election under paragraph (1) of subsection (a) of this Section,
15an employer shall be expressly and irrevocably prohibited from
16offering any future increases in income to a Tier 1 employee
17who has made an election under paragraph (1) of subsection (a)
18of this Section on the condition of not constituting salary
19under Section 17-113.4.
20    As adequate and legal consideration provided under this
21amendatory Act of the 99th General Assembly for making an
22election under paragraph (1) of subsection (a) of this Section,
23each Tier 1 employee who has made an election under paragraph
24(1) of subsection (a) of this Section shall receive a
25consideration payment equal to 10% of the contributions made by
26or on behalf of the employee under Section 17-130 before the

 

 

09900SB0017sam001- 154 -LRB099 05660 RPS 52198 a

1effective date of that election. The Fund shall timely make the
2consideration payment to the Tier 1 employee.
3    (c) A Tier 1 employee who makes the election under
4paragraph (2) of subsection (a) of this Section shall not be
5subject to paragraph (1) of subsection (a) of this Section.
6However, any future increases in income offered by an employer
7under this Article to a Tier 1 employee who has made the
8election under paragraph (2) of subsection (a) of this Section
9shall be offered by the employer expressly and irrevocably on
10the condition of not constituting salary under Section
1117-113.4, and the employee may not accept any future increase
12in income that is offered without this condition.
13    (d) The Fund shall make a good faith effort to contact each
14Tier 1 employee subject to this Section. The Fund shall mail
15information describing the required election to each Tier 1
16employee by United States Postal Service mail to his or her
17last known address on file with the Fund. If the Tier 1
18employee is not responsive to other means of contact, it is
19sufficient for the Fund to publish the details of any required
20elections on its website or to publish those details in a
21regularly published newsletter or other existing public forum.
22    Tier 1 employees who are subject to this Section shall be
23provided with an election packet containing information
24regarding their options, as well as the forms necessary to make
25the required election. Upon request, the Fund shall offer Tier
261 employees an opportunity to receive information from the Fund

 

 

09900SB0017sam001- 155 -LRB099 05660 RPS 52198 a

1before making the required election. The information may
2consist of video materials, group presentations, individual
3consultation with a member or authorized representative of the
4Fund in person or by telephone or other electronic means, or
5any combination of those methods. The Fund shall not provide
6advice or counseling with respect to which election a Tier 1
7employee should make or specific to the legal or tax
8circumstances of or consequences to the Tier 1 employee.
9    The Fund shall inform Tier 1 employees in the election
10packet required under this subsection that the Tier 1 employee
11may also wish to obtain information and counsel relating to the
12election required under this Section from any other available
13source, including, but not limited to, labor organizations and
14private counsel.
15    In no event shall the Fund, its staff, or the Board be held
16liable for any information given to a member regarding the
17elections under this Section. The Fund shall coordinate with
18the Illinois Department of Central Management Services and each
19other retirement system administering an election in
20accordance with this amendatory Act of the 99th General
21Assembly to provide information concerning the impact of the
22election set forth in this Section.
23    (e) Notwithstanding any other provision of law, an employer
24under this Article is required to offer any future increases in
25income expressly and irrevocably on the condition of not
26constituting "salary" under Section 17-113.4 to any Tier 1

 

 

09900SB0017sam001- 156 -LRB099 05660 RPS 52198 a

1employee who has made an election under paragraph (2) of
2subsection (a) of this Section. A Tier 1 employee who has made
3an election under paragraph (2) of subsection (a) of this
4Section shall not accept any future increase in income that is
5offered by an employer under this Article without the condition
6set forth in this subsection.
7    For purposes of legislative intent, the condition set forth
8in this subsection shall be construed in a manner that ensures
9that the condition is not violated or circumvented through any
10contrivance of any kind.
11    (f) A member's election under this Section is not a
12prohibited election under subdivision (j)(1) of Section 1-119
13of this Code.
14    (g) No provision of this Section shall be interpreted in a
15way that would cause the Fund to cease to be a qualified plan
16under Section 401(a) of the Internal Revenue Code of 1986.
17    (h) If an election created by this amendatory Act in any
18other Article of this Code or any change deriving from that
19election is determined to be unconstitutional or otherwise
20invalid by a final unappealable decision of an Illinois court
21or a court of competent jurisdiction, the invalidity of that
22provision shall not in any way affect the validity of this
23Section or the changes deriving from the election required
24under this Section.
 
25    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)

 

 

09900SB0017sam001- 157 -LRB099 05660 RPS 52198 a

1    Sec. 17-116. Service retirement pension.
2    (a) Each teacher having 20 years of service upon attainment
3of age 55, or who thereafter attains age 55 shall be entitled
4to a service retirement pension upon or after attainment of age
555; and each teacher in service on or after July 1, 1971, with
65 or more but less than 20 years of service shall be entitled
7to receive a service retirement pension upon or after
8attainment of age 62.
9    (b) The service retirement pension for a teacher who
10retires on or after June 25, 1971, at age 60 or over, shall be
11calculated as follows:
12        (1) For creditable service earned before July 1, 1998
13    that has not been augmented under Section 17-119.1: 1.67%
14    for each of the first 10 years of service; 1.90% for each
15    of the next 10 years of service; 2.10% for each year of
16    service in excess of 20 but not exceeding 30; and 2.30% for
17    each year of service in excess of 30, based upon average
18    salary as herein defined.
19        (2) For creditable service earned on or after July 1,
20    1998 by a member who has at least 30 years of creditable
21    service on July 1, 1998 and who does not elect to augment
22    service under Section 17-119.1: 2.3% of average salary for
23    each year of creditable service earned on or after July 1,
24    1998.
25        (3) For all other creditable service: 2.2% of average
26    salary for each year of creditable service.

 

 

09900SB0017sam001- 158 -LRB099 05660 RPS 52198 a

1    (c) When computing such service retirement pensions, the
2following conditions shall apply:
3        1. Average salary shall consist of the average annual
4    rate of salary for the 4 consecutive years of validated
5    service within the last 10 years of service when such
6    average annual rate was highest. In the determination of
7    average salary for retirement allowance purposes, for
8    members who commenced employment after August 31, 1979,
9    that part of the salary for any year shall be excluded
10    which exceeds the annual full-time salary rate for the
11    preceding year by more than 20%. In the case of a member
12    who commenced employment before August 31, 1979 and who
13    receives salary during any year after September 1, 1983
14    which exceeds the annual full time salary rate for the
15    preceding year by more than 20%, an Employer and other
16    employers of eligible contributors as defined in Section
17    17-106 shall pay to the Fund an amount equal to the present
18    value of the additional service retirement pension
19    resulting from such excess salary. The present value of the
20    additional service retirement pension shall be computed by
21    the Board on the basis of actuarial tables adopted by the
22    Board. If a member elects to receive a pension from this
23    Fund provided by Section 20-121, his salary under the State
24    Universities Retirement System and the Teachers'
25    Retirement System of the State of Illinois shall be
26    considered in determining such average salary. Amounts

 

 

09900SB0017sam001- 159 -LRB099 05660 RPS 52198 a

1    paid after the effective date of this amendatory Act of
2    1991 for unused vacation time earned after that effective
3    date shall not under any circumstances be included in the
4    calculation of average salary or the annual rate of salary
5    for the purposes of this Article.
6        2. Proportionate credit shall be given for validated
7    service of less than one year.
8        3. For retirement at age 60 or over the pension shall
9    be payable at the full rate.
10        4. For separation from service below age 60 to a
11    minimum age of 55, the pension shall be discounted at the
12    rate of 1/2 of one per cent for each month that the age of
13    the contributor is less than 60, but a teacher may elect to
14    defer the effective date of pension in order to eliminate
15    or reduce this discount. This discount shall not be
16    applicable to any participant who has at least 34 years of
17    service or a retirement pension of at least 74.6% of
18    average salary on the date the retirement annuity begins.
19        5. No additional pension shall be granted for service
20    exceeding 45 years. Beginning June 26, 1971 no pension
21    shall exceed the greater of $1,500 per month or 75% of
22    average salary as herein defined.
23        6. Service retirement pensions shall begin on the
24    effective date of resignation, retirement, the day
25    following the close of the payroll period for which service
26    credit was validated, or the time the person resigning or

 

 

09900SB0017sam001- 160 -LRB099 05660 RPS 52198 a

1    retiring attains age 55, or on a date elected by the
2    teacher, whichever shall be latest; provided that, for a
3    person who first becomes a member after the effective date
4    of this amendatory Act of the 99th General Assembly, the
5    benefit shall not commence more than one year prior to the
6    date of the Fund's receipt of an application for the
7    benefit.
8        7. A member who is eligible to receive a retirement
9    pension of at least 74.6% of average salary and will attain
10    age 55 on or before December 31 during the year which
11    commences on July 1 shall be deemed to attain age 55 on the
12    preceding June 1.
13        8. A member retiring after the effective date of this
14    amendatory Act of 1998 shall receive a pension equal to 75%
15    of average salary if the member is qualified to receive a
16    retirement pension equal to at least 74.6% of average
17    salary under this Article or as proportional annuities
18    under Article 20 of this Code.
19    (d) Notwithstanding any other provision of this Section,
20annual salary does not include any future increase in income
21that is offered for service to a Tier 1 employee under this
22Article pursuant to the condition set forth in subsection (c)
23of Section 17-115.5 and accepted under that condition by a Tier
241 employee who has made the election under paragraph (2) of
25subsection (a) of Section 17-115.5.
26    Notwithstanding any other provision of this Section,

 

 

09900SB0017sam001- 161 -LRB099 05660 RPS 52198 a

1annual salary does not include any consideration payment made
2to a Tier 1 employee.
3(Source: P.A. 99-702, eff. 7-29-16.)
 
4    (40 ILCS 5/17-119.2 new)
5    Sec. 17-119.2. Automatic annual increases in service
6retirement pension for certain Tier 1 employees.
7Notwithstanding any other provision of this Article, for a Tier
81 employee who made the election under paragraph (1) of
9subsection (a) of Section 17-115.5:
10        (1) The initial increase in service retirement pension
11    shall occur on the January 1 occurring either on or after
12    the attainment of age 67 or the fifth anniversary of the
13    pension start date, whichever is earlier.
14        (2) The amount of each automatic annual increase in
15    service retirement pension occurring on or after the
16    effective date of that election shall be calculated as a
17    percentage of the originally granted service retirement
18    pension, equal to 3% or one-half the annual unadjusted
19    percentage increase (but not less than zero) in the
20    consumer price index-u for the 12 months ending with the
21    September preceding each November 1, whichever is less. If
22    the annual unadjusted percentage change in the consumer
23    price index-u for the 12 months ending with the September
24    preceding each November 1 is zero or there is a decrease,
25    then the annuity shall not be increased.

 

 

09900SB0017sam001- 162 -LRB099 05660 RPS 52198 a

1    For the purposes of this Section, "consumer price index-u"
2means the index published by the Bureau of Labor Statistics of
3the United States Department of Labor that measures the average
4change in prices of goods and services purchased by all urban
5consumers, United States city average, all items, 1982-84 =
6100. The new amount resulting from each annual adjustment shall
7be determined by the Public Pension Division of the Department
8of Insurance and made available to the Board by November 1 of
9each year.
 
10    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
11    Sec. 17-129. Employer contributions; deficiency in Fund.
12    (a) If in any fiscal year of the Board of Education ending
13prior to 1997 the total amounts paid to the Fund from the Board
14of Education (other than under this subsection, and other than
15amounts used for making or "picking up" contributions on behalf
16of teachers) and from the State do not equal the total
17contributions made by or on behalf of the teachers for such
18year, or if the total income of the Fund in any such fiscal
19year of the Board of Education from all sources is less than
20the total such expenditures by the Fund for such year, the
21Board of Education shall, in the next succeeding year, in
22addition to any other payment to the Fund set apart and
23appropriate from moneys from its tax levy for educational
24purposes, a sum sufficient to remove such deficiency or
25deficiencies, and promptly pay such sum into the Fund in order

 

 

09900SB0017sam001- 163 -LRB099 05660 RPS 52198 a

1to restore any of the reserves of the Fund that may have been
2so temporarily applied. Any amounts received by the Fund after
3December 4, 1997 from State appropriations, including under
4Section 17-127, shall be a credit against and shall fully
5satisfy any obligation that may have arisen, or be claimed to
6have arisen, under this subsection (a) as a result of any
7deficiency or deficiencies in the fiscal year of the Board of
8Education ending in calendar year 1997.
9    (b) (i) Notwithstanding any other provision of this
10Section, and notwithstanding any prior certification by the
11Board under subsection (c) for fiscal year 2011, the Board of
12Education's total required contribution to the Fund for fiscal
13year 2011 under this Section is $187,000,000.
14    (ii) Notwithstanding any other provision of this Section,
15the Board of Education's total required contribution to the
16Fund for fiscal year 2012 under this Section is $192,000,000.
17    (iii) Notwithstanding any other provision of this Section,
18the Board of Education's total required contribution to the
19Fund for fiscal year 2013 under this Section is $196,000,000.
20    (iv) For fiscal years 2014 through 2059, the minimum
21contribution to the Fund to be made by the Board of Education
22in each fiscal year shall be an amount determined by the Fund
23to be sufficient to bring the total assets of the Fund up to
2490% of the total actuarial liabilities of the Fund by the end
25of fiscal year 2059. In making these determinations, the
26required Board of Education contribution shall be calculated

 

 

09900SB0017sam001- 164 -LRB099 05660 RPS 52198 a

1each year as a level percentage of the applicable employee
2payrolls over the years remaining to and including fiscal year
32059 and shall be determined under the projected unit credit
4actuarial cost method.
5    (v) Beginning in fiscal year 2060, the minimum Board of
6Education contribution for each fiscal year shall be the amount
7needed to maintain the total assets of the Fund at 90% of the
8total actuarial liabilities of the Fund.
9    (vi) Notwithstanding any other provision of this
10subsection (b), for any fiscal year, the contribution to the
11Fund from the Board of Education shall not be required to be in
12excess of the amount calculated as needed to maintain the
13assets (or cause the assets to be) at the 90% level by the end
14of the fiscal year.
15    (vii) Any contribution by the State to or for the benefit
16of the Fund, including, without limitation, as referred to
17under Section 17-127, shall be a credit against any
18contribution required to be made by the Board of Education
19under this subsection (b).
20    (c) The Board shall determine the amount of Board of
21Education contributions required for each fiscal year on the
22basis of the actuarial tables and other assumptions adopted by
23the Board and the recommendations of the actuary, in order to
24meet the minimum contribution requirements of subsections (a)
25and (b). Annually, on or before February 28, the Board shall
26certify to the Board of Education the amount of the required

 

 

09900SB0017sam001- 165 -LRB099 05660 RPS 52198 a

1Board of Education contribution for the coming fiscal year. The
2certification shall include a copy of the actuarial
3recommendations upon which it is based.
4    (d) On or before May 1, 2018, the Board shall recalculate
5and recertify to the Board of Education the amount of the
6required Board of Education contribution to the Fund for State
7fiscal year 2019, taking into account the effect on the Fund's
8liabilities of the elections made under Section 17-115.5.
9(Source: P.A. 96-889, eff. 4-14-10.)
 
10    (40 ILCS 5/17-130)  (from Ch. 108 1/2, par. 17-130)
11    Sec. 17-130. Participants' contributions by payroll
12deductions.
13    (a) Except as provided in subsection (a-5), there There
14shall be deducted from the salary of each teacher 7.50% of his
15salary for service or disability retirement pension and 0.5% of
16salary for the annual increase in base pension.
17    In addition, there shall be deducted from the salary of
18each teacher 1% of his salary for survivors' and children's
19pensions.
20    (a-5) Beginning on July 1, 2018 or the effective date of
21the Tier 1 employee's election under paragraph (1) of Section
2217-115.5, whichever is later, in lieu of the contributions
23otherwise required under subsection (a), each Tier 1 employee
24who made the election under paragraph (1) of Section 17-115.5
25shall make contributions of 7.50% of salary for service or

 

 

09900SB0017sam001- 166 -LRB099 05660 RPS 52198 a

1disability retirement pension and 0.6% of salary for survivors'
2and children's pensions.
3    (b) An Employer and any employer of eligible contributors
4as defined in Section 17-106 is authorized to make the
5necessary deductions from the salaries of its teachers. Such
6amounts shall be included as a part of the Fund. An Employer
7and any employer of eligible contributors as defined in Section
817-106 shall formulate such rules and regulations as may be
9necessary to give effect to the provisions of this Section.
10    (c) All persons employed as teachers shall, by such
11employment, accept the provisions of this Article and of
12Sections 34-83 to 34-85, inclusive, of "The School Code",
13approved March 18, 1961, as amended, and thereupon become
14contributors to the Fund in accordance with the terms thereof.
15The provisions of this Article and of those Sections shall
16become a part of the contract of employment.
17    (d) A person who (i) was a member before July 1, 1998, (ii)
18retires with more than 34 years of creditable service, and
19(iii) does not elect to qualify for the augmented rate under
20Section 17-119.1 shall be entitled, at the time of retirement,
21to receive a partial refund of contributions made under this
22Section for service occurring after the later of June 30, 1998
23or attainment of 34 years of creditable service, in an amount
24equal to 1.00% of the salary upon which those contributions
25were based.
26(Source: P.A. 97-8, eff. 6-13-11.)
 

 

 

09900SB0017sam001- 167 -LRB099 05660 RPS 52198 a

1    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
2    Sec. 18-131. Financing; employer contributions.
3    (a) The State of Illinois shall make contributions to this
4System by appropriations of the amounts which, together with
5the contributions of participants, net earnings on
6investments, and other income, will meet the costs of
7maintaining and administering this System on a 90% funded basis
8in accordance with actuarial recommendations.
9    (b) The Board shall determine the amount of State
10contributions required for each fiscal year on the basis of the
11actuarial tables and other assumptions adopted by the Board and
12the prescribed rate of interest, using the formula in
13subsection (c).
14    (c) For State fiscal years 2018 through 2045, the minimum
15contribution to the System to be made by the State for each
16fiscal year shall be an amount determined by the System to be
17sufficient to bring the total assets of the System up to 90% of
18the total actuarial liabilities of the System by the end of
19State fiscal year 2045. In making these determinations, the
20required State contribution shall be calculated each year as a
21level percentage of total payroll, including payroll that is
22not deemed pensionable, over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25    Beginning in State fiscal year 2018, any increase or

 

 

09900SB0017sam001- 168 -LRB099 05660 RPS 52198 a

1decrease in State contribution over the prior fiscal year due
2exclusively to changes in actuarial or investment assumptions
3adopted by the Board shall be included in the State
4contribution to the System, as a percentage of the applicable
5employee payroll, and shall be increased in equal annual
6increments so that by the State fiscal year occurring 5 years
7after the adoption of the actuarial or investment assumptions,
8the State is contributing at the rate otherwise required under
9this Section.
10    If Section 2-110.3, 15-132.9, 16-122.9, or 17-115.5 is
11determined to be unconstitutional or otherwise invalid by a
12final unappealable decision of an Illinois court or a court of
13competent jurisdiction, then the changes made to this Section
14by this amendatory Act of the 99th General Assembly shall not
15take effect and are repealed by operation of law.
16    For State fiscal years 2012 through 2017 2045, the minimum
17contribution to the System to be made by the State for each
18fiscal year shall be an amount determined by the System to be
19sufficient to bring the total assets of the System up to 90% of
20the total actuarial liabilities of the System by the end of
21State fiscal year 2045. In making these determinations, the
22required State contribution shall be calculated each year as a
23level percentage of payroll over the years remaining to and
24including fiscal year 2045 and shall be determined under the
25projected unit credit actuarial cost method.
26    For State fiscal years 1996 through 2005, the State

 

 

09900SB0017sam001- 169 -LRB099 05660 RPS 52198 a

1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3so that by State fiscal year 2011, the State is contributing at
4the rate required under this Section.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2006 is
7$29,189,400.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2007 is
10$35,236,800.
11    For each of State fiscal years 2008 through 2009, the State
12contribution to the System, as a percentage of the applicable
13employee payroll, shall be increased in equal annual increments
14from the required State contribution for State fiscal year
152007, so that by State fiscal year 2011, the State is
16contributing at the rate otherwise required under this Section.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2010 is
19$78,832,000 and shall be made from the proceeds of bonds sold
20in fiscal year 2010 pursuant to Section 7.2 of the General
21Obligation Bond Act, less (i) the pro rata share of bond sale
22expenses determined by the System's share of total bond
23proceeds, (ii) any amounts received from the General Revenue
24Fund in fiscal year 2010, and (iii) any reduction in bond
25proceeds due to the issuance of discounted bonds, if
26applicable.

 

 

09900SB0017sam001- 170 -LRB099 05660 RPS 52198 a

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2011 is
3the amount recertified by the System on or before April 1, 2011
4pursuant to Section 18-140 and shall be made from the proceeds
5of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
6the General Obligation Bond Act, less (i) the pro rata share of
7bond sale expenses determined by the System's share of total
8bond proceeds, (ii) any amounts received from the General
9Revenue Fund in fiscal year 2011, and (iii) any reduction in
10bond proceeds due to the issuance of discounted bonds, if
11applicable.
12    Beginning in State fiscal year 2046, the minimum State
13contribution for each fiscal year shall be the amount needed to
14maintain the total assets of the System at 90% of the total
15actuarial liabilities of the System.
16    Amounts received by the System pursuant to Section 25 of
17the Budget Stabilization Act or Section 8.12 of the State
18Finance Act in any fiscal year do not reduce and do not
19constitute payment of any portion of the minimum State
20contribution required under this Article in that fiscal year.
21Such amounts shall not reduce, and shall not be included in the
22calculation of, the required State contributions under this
23Article in any future year until the System has reached a
24funding ratio of at least 90%. A reference in this Article to
25the "required State contribution" or any substantially similar
26term does not include or apply to any amounts payable to the

 

 

09900SB0017sam001- 171 -LRB099 05660 RPS 52198 a

1System under Section 25 of the Budget Stabilization Act.
2    Notwithstanding any other provision of this Section, the
3required State contribution for State fiscal year 2005 and for
4fiscal year 2008 and each fiscal year thereafter, as calculated
5under this Section and certified under Section 18-140, shall
6not exceed an amount equal to (i) the amount of the required
7State contribution that would have been calculated under this
8Section for that fiscal year if the System had not received any
9payments under subsection (d) of Section 7.2 of the General
10Obligation Bond Act, minus (ii) the portion of the State's
11total debt service payments for that fiscal year on the bonds
12issued in fiscal year 2003 for the purposes of that Section
137.2, as determined and certified by the Comptroller, that is
14the same as the System's portion of the total moneys
15distributed under subsection (d) of Section 7.2 of the General
16Obligation Bond Act. In determining this maximum for State
17fiscal years 2008 through 2010, however, the amount referred to
18in item (i) shall be increased, as a percentage of the
19applicable employee payroll, in equal increments calculated
20from the sum of the required State contribution for State
21fiscal year 2007 plus the applicable portion of the State's
22total debt service payments for fiscal year 2007 on the bonds
23issued in fiscal year 2003 for the purposes of Section 7.2 of
24the General Obligation Bond Act, so that, by State fiscal year
252011, the State is contributing at the rate otherwise required
26under this Section.

 

 

09900SB0017sam001- 172 -LRB099 05660 RPS 52198 a

1    (d) For purposes of determining the required State
2contribution to the System, the value of the System's assets
3shall be equal to the actuarial value of the System's assets,
4which shall be calculated as follows:
5    As of June 30, 2008, the actuarial value of the System's
6assets shall be equal to the market value of the assets as of
7that date. In determining the actuarial value of the System's
8assets for fiscal years after June 30, 2008, any actuarial
9gains or losses from investment return incurred in a fiscal
10year shall be recognized in equal annual amounts over the
115-year period following that fiscal year.
12    (e) For purposes of determining the required State
13contribution to the system for a particular year, the actuarial
14value of assets shall be assumed to earn a rate of return equal
15to the system's actuarially assumed rate of return.
16(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1796-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
187-13-12.)
 
19    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
20    Sec. 18-140. To certify required State contributions and
21submit vouchers.
22    (a) The Board shall certify to the Governor, on or before
23November 15 of each year until November 15, 2011, the amount of
24the required State contribution to the System for the following
25fiscal year and shall specifically identify the System's

 

 

09900SB0017sam001- 173 -LRB099 05660 RPS 52198 a

1projected State normal cost for that fiscal year. The
2certification shall include a copy of the actuarial
3recommendations upon which it is based and shall specifically
4identify the System's projected State normal cost for that
5fiscal year.
6    On or before November 1 of each year, beginning November 1,
72012, the Board shall submit to the State Actuary, the
8Governor, and the General Assembly a proposed certification of
9the amount of the required State contribution to the System for
10the next fiscal year, along with all of the actuarial
11assumptions, calculations, and data upon which that proposed
12certification is based. On or before January 1 of each year
13beginning January 1, 2013, the State Actuary shall issue a
14preliminary report concerning the proposed certification and
15identifying, if necessary, recommended changes in actuarial
16assumptions that the Board must consider before finalizing its
17certification of the required State contributions. On or before
18January 15, 2013 and every January 15 thereafter, the Board
19shall certify to the Governor and the General Assembly the
20amount of the required State contribution for the next fiscal
21year. The Board's certification must note any deviations from
22the State Actuary's recommended changes, the reason or reasons
23for not following the State Actuary's recommended changes, and
24the fiscal impact of not following the State Actuary's
25recommended changes on the required State contribution.
26    On or before May 1, 2004, the Board shall recalculate and

 

 

09900SB0017sam001- 174 -LRB099 05660 RPS 52198 a

1recertify to the Governor the amount of the required State
2contribution to the System for State fiscal year 2005, taking
3into account the amounts appropriated to and received by the
4System under subsection (d) of Section 7.2 of the General
5Obligation Bond Act.
6    On or before July 1, 2005, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2006, taking
9into account the changes in required State contributions made
10by this amendatory Act of the 94th General Assembly.
11    On or before April 1, 2011, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2011, applying
14the changes made by Public Act 96-889 to the System's assets
15and liabilities as of June 30, 2009 as though Public Act 96-889
16was approved on that date.
17    As soon as practical after the effective date of this
18amendatory Act of the 99th General Assembly, the State Actuary
19and the Board shall recalculate and recertify to the Governor
20and the General Assembly the amount of the State contribution
21to the System for State fiscal year 2017, taking into account
22the changes in required State contributions made by this
23amendatory Act of the 99th General Assembly.
24    (b) Beginning in State fiscal year 1996, on or as soon as
25possible after the 15th day of each month the Board shall
26submit vouchers for payment of State contributions to the

 

 

09900SB0017sam001- 175 -LRB099 05660 RPS 52198 a

1System, in a total monthly amount of one-twelfth of the
2required annual State contribution certified under subsection
3(a). From the effective date of this amendatory Act of the 93rd
4General Assembly through June 30, 2004, the Board shall not
5submit vouchers for the remainder of fiscal year 2004 in excess
6of the fiscal year 2004 certified contribution amount
7determined under this Section after taking into consideration
8the transfer to the System under subsection (c) of Section
96z-61 of the State Finance Act. These vouchers shall be paid by
10the State Comptroller and Treasurer by warrants drawn on the
11funds appropriated to the System for that fiscal year.
12    If in any month the amount remaining unexpended from all
13other appropriations to the System for the applicable fiscal
14year (including the appropriations to the System under Section
158.12 of the State Finance Act and Section 1 of the State
16Pension Funds Continuing Appropriation Act) is less than the
17amount lawfully vouchered under this Section, the difference
18shall be paid from the General Revenue Fund under the
19continuing appropriation authority provided in Section 1.1 of
20the State Pension Funds Continuing Appropriation Act.
21(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2297-694, eff. 6-18-12.)
 
23    (40 ILCS 5/2-165 rep.)
24    (40 ILCS 5/2-166 rep.)
25    (40 ILCS 5/15-200 rep.)

 

 

09900SB0017sam001- 176 -LRB099 05660 RPS 52198 a

1    (40 ILCS 5/15-201 rep.)
2    (40 ILCS 5/16-205 rep.)
3    (40 ILCS 5/16-206 rep.)
4    Section 20. The Illinois Pension Code is amended by
5repealing Sections 2-165, 2-166, 15-200, 15-201, 16-205, and
616-206.
 
7    Section 25. The State Pension Funds Continuing
8Appropriation Act is amended by adding Section 1.9 as follows:
 
9    (40 ILCS 15/1.9 new)
10    Sec. 1.9. Appropriation for consideration payment. There
11is hereby appropriated from the General Revenue Fund to the
12State Comptroller, on a continuing basis, all amounts necessary
13for the payment of consideration payments under subsection (b)
14of Sections 2-110.3, 15-132.9, and 16-122.9 of the Illinois
15Pension Code, in the amounts certified to the State Comptroller
16by the respective retirement system or pension fund.
 
17    Section 30. The School Code is amended by changing Sections
1824-1, 24-8, and 34-18.53 as follows:
 
19    (105 ILCS 5/24-1)  (from Ch. 122, par. 24-1)
20    Sec. 24-1. Appointment-Salaries-Payment-School
21month-School term.) School boards shall appoint all teachers,
22determine qualifications of employment and fix the amount of

 

 

09900SB0017sam001- 177 -LRB099 05660 RPS 52198 a

1their salaries subject to any limitation set forth in this Act
2and subject to any applicable restrictions in Section 16-122.9
3of the Illinois Pension Code. They shall pay the wages of
4teachers monthly, subject, however, to the provisions of
5Section 24-21. The school month shall be the same as the
6calendar month but by resolution the school board may adopt for
7its use a month of 20 days, including holidays. The school term
8shall consist of at least the minimum number of pupil
9attendance days required by Section 10-19, any additional legal
10school holidays, days of teachers' institutes, or equivalent
11professional educational experiences, and one or two days at
12the beginning of the school term when used as a teachers'
13workshop.
14(Source: P.A. 80-249.)
 
15    (105 ILCS 5/24-8)  (from Ch. 122, par. 24-8)
16    Sec. 24-8. Minimum salary. In fixing the salaries of
17teachers, school boards shall pay those who serve on a
18full-time basis not less than a rate for the school year that
19is based upon training completed in a recognized institution of
20higher learning, as follows: for the school year beginning July
211, 1980 and thereafter, less than a bachelor's degree, $9,000;
22120 semester hours or more and a bachelor's degree, $10,000;
23150 semester hours or more and a master's degree, $11,000.
24    Based upon previous public school experience in this State
25or any other State, territory, dependency or possession of the

 

 

09900SB0017sam001- 178 -LRB099 05660 RPS 52198 a

1United States, or in schools operated by or under the auspices
2of the United States, teachers who serve on a full-time basis
3shall have their salaries increased to at least the following
4amounts above the starting salary for a teacher in such
5district in the same classification: with less than a
6bachelor's degree, $750 after 5 years; with 120 semester hours
7or more and a bachelor's degree, $1,000 after 5 years and
8$1,600 after 8 years; with 150 semester hours or more and a
9master's degree, $1,250 after 5 years, $2,000 after 8 years and
10$2,750 after 13 years. However, any salary increase is subject
11to any applicable restrictions in Section 16-122.9 of the
12Illinois Pension Code.
13    For the purpose of this Section a teacher's salary shall
14include any amount paid by the school district on behalf of the
15teacher, as teacher contributions, to the Teachers' Retirement
16System of the State of Illinois.
17    If a school board establishes a schedule for teachers'
18salaries based on education and experience, not inconsistent
19with this Section, all certificated nurses employed by that
20board shall be paid in accordance with the provisions of such
21schedule (subject to any applicable restrictions in Section
2216-122.9 of the Illinois Pension Code).
23    For purposes of this Section, a teacher who submits a
24certificate of completion to the school office prior to the
25first day of the school term shall be considered to have the
26degree stated in such certificate.

 

 

09900SB0017sam001- 179 -LRB099 05660 RPS 52198 a

1(Source: P.A. 83-913.)
 
2    (105 ILCS 5/34-18.53 new)
3    Sec. 34-18.53. Future increase in income. The Board of
4Education must not pay, offer, or agree to pay any future
5increase in income, as that term is defined in Section 17-113.5
6of the Illinois Pension Code, to any person in a manner that
7violates Section 17-115.5 of the Illinois Pension Code.
 
8    Section 35. The State Universities Civil Service Act is
9amended by changing Section 36d as follows:
 
10    (110 ILCS 70/36d)  (from Ch. 24 1/2, par. 38b3)
11    Sec. 36d. Powers and duties of the Merit Board. The Merit
12Board shall have the power and duty-
13        (1) To approve a classification plan prepared under its
14    direction, assigning to each class positions of
15    substantially similar duties. The Merit Board shall have
16    power to delegate to its Director the duty of assigning
17    each position in the classified service to the appropriate
18    class in the classification plan approved by the Merit
19    Board.
20        (2) To prescribe the duties of each class of positions
21    and the qualifications required by employment in that
22    class.
23        (3) To prescribe the range of compensation for each

 

 

09900SB0017sam001- 180 -LRB099 05660 RPS 52198 a

1    class or to fix a single rate of compensation for employees
2    in a particular class; and to establish other conditions of
3    employment which an employer and employee representatives
4    have agreed upon as fair and equitable. The Merit Board
5    shall direct the payment of the "prevailing rate of wages"
6    in those classifications in which, on January 1, 1952, any
7    employer is paying such prevailing rate and in such other
8    classes as the Merit Board may thereafter determine.
9    "Prevailing rate of wages" as used herein shall be the
10    wages paid generally in the locality in which the work is
11    being performed to employees engaged in work of a similar
12    character. Subject to any applicable restrictions in
13    Section 15-132.9 or 16-122.9 of the Illinois Pension Code,
14    each Each employer covered by the University System shall
15    be authorized to negotiate with representatives of
16    employees to determine appropriate ranges or rates of
17    compensation or other conditions of employment and may
18    recommend to the Merit Board for establishment the rates or
19    ranges or other conditions of employment which the employer
20    and employee representatives have agreed upon as fair and
21    equitable, but excluding the changes, the impact of
22    changes, and the implementation of the changes set forth in
23    this amendatory Act of the 99th General Assembly. Any rates
24    or ranges established prior to January 1, 1952, and
25    hereafter, shall not be changed except in accordance with
26    the procedures herein provided.

 

 

09900SB0017sam001- 181 -LRB099 05660 RPS 52198 a

1        (4) To recommend to the institutions and agencies
2    specified in Section 36e standards for hours of work,
3    holidays, sick leave, overtime compensation and vacation
4    for the purpose of improving conditions of employment
5    covered therein and for the purpose of insuring conformity
6    with the prevailing rate principal.
7        (5) To prescribe standards of examination for each
8    class, the examinations to be related to the duties of such
9    class. The Merit Board shall have power to delegate to the
10    Director and his staff the preparation, conduct and grading
11    of examinations. Examinations may be written, oral, by
12    statement of training and experience, in the form of tests
13    of knowledge, skill, capacity, intellect, aptitude; or, by
14    any other method, which in the judgment of the Merit Board
15    is reasonable and practical for any particular
16    classification. Different examining procedures may be
17    determined for the examinations in different
18    classifications but all examinations in the same
19    classification shall be uniform.
20        (6) To authorize the continuous recruitment of
21    personnel and to that end, to delegate to the Director and
22    his staff the power and the duty to conduct open and
23    continuous competitive examinations for all
24    classifications of employment.
25        (7) To cause to be established from the results of
26    examinations registers for each class of positions in the

 

 

09900SB0017sam001- 182 -LRB099 05660 RPS 52198 a

1    classified service of the State Universities Civil Service
2    System, of the persons who shall attain the minimum mark
3    fixed by the Merit Board for the examination; and such
4    persons shall take rank upon the registers as candidates in
5    the order of their relative excellence as determined by
6    examination, without reference to priority of time of
7    examination.
8        (8) To provide by its rules for promotions in the
9    classified service. Vacancies shall be filled by promotion
10    whenever practicable. For the purpose of this paragraph, an
11    advancement in class shall constitute a promotion.
12        (9) To set a probationary period of employment of no
13    less than 6 months and no longer than 12 months for each
14    class of positions in the classification plan, the length
15    of the probationary period for each class to be determined
16    by the Director.
17        (10) To provide by its rules for employment at regular
18    rates of compensation of persons with physical
19    disabilities in positions in which the disability does not
20    prevent the individual from furnishing satisfactory
21    service.
22        (11) To make and publish rules, to carry out the
23    purpose of the State Universities Civil Service System and
24    for examination, appointments, transfers and removals and
25    for maintaining and keeping records of the efficiency of
26    officers and employees and groups of officers and employees

 

 

09900SB0017sam001- 183 -LRB099 05660 RPS 52198 a

1    in accordance with the provisions of Sections 36b to 36q,
2    inclusive, and said Merit Board may from time to time make
3    changes in such rules.
4        (12) To appoint a Director and such assistants and
5    other clerical and technical help as may be necessary
6    efficiently to administer Sections 36b to 36q, inclusive.
7    To authorize the Director to appoint an assistant resident
8    at the place of employment of each employer specified in
9    Section 36e and this assistant may be authorized to give
10    examinations and to certify names from the regional
11    registers provided in Section 36k.
12        (13) To submit to the Governor of this state on or
13    before November 1 of each year prior to the regular session
14    of the General Assembly a report of the University System's
15    business and an estimate of the amount of appropriation
16    from state funds required for the purpose of administering
17    the University System.
18(Source: P.A. 99-143, eff. 7-27-15.)
 
19    Section 40. The University of Illinois Act is amended by
20adding Section 100 as follows:
 
21    (110 ILCS 305/100 new)
22    Sec. 100. Future increases in income. The University of
23Illinois must not pay, offer, or agree to pay any future
24increase in income, as that term is defined in Section 15-112.1

 

 

09900SB0017sam001- 184 -LRB099 05660 RPS 52198 a

1or 16-121.1 of the Illinois Pension Code, to any person in a
2manner that violates Section 15-132.9 or 16-122.9 of the
3Illinois Pension Code.
 
4    Section 45. The Southern Illinois University Management
5Act is amended by adding Section 85 as follows:
 
6    (110 ILCS 520/85 new)
7    Sec. 85. Future increases in income. Southern Illinois
8University must not pay, offer, or agree to pay any future
9increase in income, as that term is defined in Section 15-112.1
10or 16-121.1 of the Illinois Pension Code, to any person in a
11manner that violates Section 15-132.9 or 16-122.9 of the
12Illinois Pension Code.
 
13    Section 50. The Chicago State University Law is amended by
14adding Section 5-195 as follows:
 
15    (110 ILCS 660/5-195 new)
16    Sec. 5-195. Future increases in income. Chicago State
17University must not pay, offer, or agree to pay any future
18increase in income, as that term is defined in Section 15-112.1
19or 16-121.1 of the Illinois Pension Code, to any person in a
20manner that violates Section 15-132.9 or 16-122.9 of the
21Illinois Pension Code.
 

 

 

09900SB0017sam001- 185 -LRB099 05660 RPS 52198 a

1    Section 55. The Eastern Illinois University Law is amended
2by adding Section 10-195 as follows:
 
3    (110 ILCS 665/10-195 new)
4    Sec. 10-195. Future increases in income. Eastern Illinois
5University must not pay, offer, or agree to pay any future
6increase in income, as that term is defined in Section 15-112.1
7or 16-121.1 of the Illinois Pension Code, to any person in a
8manner that violates Section 15-132.9 or 16-122.9 of the
9Illinois Pension Code.
 
10    Section 60. The Governors State University Law is amended
11by adding Section 15-195 as follows:
 
12    (110 ILCS 670/15-195 new)
13    Sec. 15-195. Future increases in income. Governors State
14University must not pay, offer, or agree to pay any future
15increase in income, as that term is defined in Section 15-112.1
16or 16-121.1 of the Illinois Pension Code, to any person in a
17manner that violates Section 15-132.9 or 16-122.9 of the
18Illinois Pension Code.
 
19    Section 65. The Illinois State University Law is amended by
20adding Section 20-200 as follows:
 
21    (110 ILCS 675/20-200 new)

 

 

09900SB0017sam001- 186 -LRB099 05660 RPS 52198 a

1    Sec. 20-200. Future increases in income. Illinois State
2University must not pay, offer, or agree to pay any future
3increase in income, as that term is defined in Section 15-112.1
4or 16-121.1 of the Illinois Pension Code, to any person in a
5manner that violates Section 15-132.9 or 16-122.9 of the
6Illinois Pension Code.
 
7    Section 70. The Northeastern Illinois University Law is
8amended by adding Section 25-195 as follows:
 
9    (110 ILCS 680/25-195 new)
10    Sec. 25-195. Future increases in income. Northeastern
11Illinois University must not pay, offer, or agree to pay any
12future increase in income, as that term is defined in Section
1315-112.1 or 16-121.1 of the Illinois Pension Code, to any
14person in a manner that violates Section 15-132.9 or 16-122.9
15of the Illinois Pension Code.
 
16    Section 75. The Northern Illinois University Law is amended
17by adding Section 30-205 as follows:
 
18    (110 ILCS 685/30-205 new)
19    Sec. 30-205. Future increases in income. Northern Illinois
20University must not pay, offer, or agree to pay any future
21increase in income, as that term is defined in Section 15-112.1
22or 16-121.1 of the Illinois Pension Code, to any person in a

 

 

09900SB0017sam001- 187 -LRB099 05660 RPS 52198 a

1manner that violates Section 15-132.9 or 16-122.9 of the
2Illinois Pension Code.
 
3    Section 80. The Western Illinois University Law is amended
4by adding Section 35-200 as follows:
 
5    (110 ILCS 690/35-200 new)
6    Sec. 35-200. Future increases in income. Western Illinois
7University must not pay, offer, or agree to pay any future
8increase in income, as that term is defined in Section 15-112.1
9or 16-121.1 of the Illinois Pension Code, to any person in a
10manner that violates Section 15-132.9 or 16-122.9 of the
11Illinois Pension Code.
 
12    Section 85. The Public Community College Act is amended by
13changing Sections 3-26 and 3-42 as follows:
 
14    (110 ILCS 805/3-26)  (from Ch. 122, par. 103-26)
15    Sec. 3-26. (a) To make appointments and fix the salaries of
16a chief administrative officer, who shall be the executive
17officer of the board, other administrative personnel, and all
18teachers, but subject to any applicable restrictions in Section
1915-132.9 or 16-122.9 of the Illinois Pension Code. In making
20these appointments and fixing the salaries, the board may make
21no discrimination on account of sex, race, creed, color or
22national origin.

 

 

09900SB0017sam001- 188 -LRB099 05660 RPS 52198 a

1    (b) Upon the written request of an employee, to withhold
2from the compensation of that employee the membership dues of
3such employee payable to any specified labor organization as
4defined in the Illinois Educational Labor Relations Act. Under
5such arrangement, an amount shall be withheld for each regular
6payroll period which is equal to the prorata share of the
7annual membership dues plus any payments or contributions and
8the board shall pay such withholding to the specified labor
9organization within 10 working days from the time of the
10withholding.
11(Source: P.A. 83-1014.)
 
12    (110 ILCS 805/3-42)  (from Ch. 122, par. 103-42)
13    Sec. 3-42. To employ such personnel as may be needed, to
14establish policies governing their employment and dismissal,
15and to fix the amount of their compensation, subject to any
16applicable restrictions in Section 15-132.9 or 16-122.9 of the
17Illinois Pension Code. In the employment, establishment of
18policies and fixing of compensation the board may make no
19discrimination on account of sex, race, creed, color or
20national origin.
21    Residence within any community college district or outside
22any community college district shall not be considered:
23        (a) in determining whether to retain or not retain any
24    employee of a community college employed prior to July 1,
25    1977 or prior to the adoption by the community college

 

 

09900SB0017sam001- 189 -LRB099 05660 RPS 52198 a

1    board of a resolution making residency within the community
2    college district of some or all employees a condition of
3    employment, whichever is later;
4        (b) in assigning, promoting or transferring any
5    employee of a community college to an office or position
6    employed prior to July 1, 1977 or prior to the adoption by
7    the community college board of a resolution making
8    residency within the community college district of some or
9    all employees a condition of employment, whichever is
10    later; or
11        (c) in determining the salary or other compensation of
12    any employee of a community college.
13(Source: P.A. 80-248.)
 
14    Section 90. The Illinois Educational Labor Relations Act is
15amended by changing Sections 4, 14, and 17 and by adding
16Section 10.6 as follows:
 
17    (115 ILCS 5/4)  (from Ch. 48, par. 1704)
18    Sec. 4. Employer rights. Employers shall not be required to
19bargain over matters of inherent managerial policy, which shall
20include such areas of discretion or policy as the functions of
21the employer, standards of services, its overall budget, the
22organizational structure and selection of new employees and
23direction of employees. Employers, however, shall be required
24to bargain collectively with regard to policy matters directly

 

 

09900SB0017sam001- 190 -LRB099 05660 RPS 52198 a

1affecting wages (but subject to any applicable restrictions in
2Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois Pension
3Code), hours and terms and conditions of employment as well as
4the impact thereon upon request by employee representatives,
5but excluding the changes, the impact of changes, and the
6implementation of the changes set forth in this amendatory Act
7of the 99th General Assembly. To preserve the rights of
8employers and exclusive representatives which have established
9collective bargaining relationships or negotiated collective
10bargaining agreements prior to the effective date of this Act,
11employers shall be required to bargain collectively with regard
12to any matter concerning wages (but subject to any applicable
13restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the
14Illinois Pension Code), hours or conditions of employment about
15which they have bargained for and agreed to in a collective
16bargaining agreement prior to the effective date of this Act,
17but excluding the changes, the impact of changes, and the
18implementation of the changes set forth in this amendatory Act
19of the 99th General Assembly.
20(Source: P.A. 83-1014.)
 
21    (115 ILCS 5/10.6 new)
22    Sec. 10.6. No collective bargaining or interest
23arbitration regarding certain changes to the Illinois Pension
24Code.
25    (a) Notwithstanding any other provision of this Act,

 

 

09900SB0017sam001- 191 -LRB099 05660 RPS 52198 a

1employers shall not be required to bargain over matters
2affected by the changes, the impact of the changes, and the
3implementation of the changes to Article 15, 16, or 17 of the
4Illinois Pension Code made by this amendatory Act of the 99th
5General Assembly, which are deemed to be prohibited subjects of
6bargaining. Notwithstanding any provision of this Act, the
7changes, impact of the changes, or implementation of the
8changes to Article 15, 16, or 17 of the Illinois Pension Code
9made by this amendatory Act of the 99th General Assembly shall
10not be subject to interest arbitration or any award issued
11pursuant to interest arbitration. The provisions of this
12Section shall not apply to an employment contract or collective
13bargaining agreement that is in effect on the effective date of
14this amendatory Act of the 99th General Assembly. However, any
15such contract or agreement that is modified, amended, renewed,
16or superseded after the effective date of this amendatory Act
17of the 99th General Assembly shall be subject to the provisions
18of this Section. The provisions of this Section shall not apply
19to the ability of any employer and employee representative to
20bargain collectively with regard to the pick up of employee
21contributions pursuant to Section 15-157.1, 16-152.1,
2217-130.1, or 17-130.2 of the Illinois Pension Code.
23    (b) Nothing in this Section shall be construed as otherwise
24limiting any of the obligations and requirements applicable to
25employers under any of the provisions of this Act, including,
26but not limited to, the requirement to bargain collectively

 

 

09900SB0017sam001- 192 -LRB099 05660 RPS 52198 a

1with regard to policy matters directly affecting wages, hours,
2and terms and conditions of employment as well as the impact
3thereon upon request by employee representatives, except for
4the matters set forth in subsection (a) of this Section that
5are deemed prohibited subjects of bargaining. Nothing in this
6Section shall be construed as otherwise limiting any of the
7rights of employees or employee representatives under the
8provisions of this Act, except for the matters set forth in
9subsection (a) of this Section that are deemed prohibited
10subjects of bargaining.
11    (c) In case of any conflict between this Section and any
12other provisions of this Act or any other law, the provisions
13of this Section shall control.
 
14    (115 ILCS 5/14)  (from Ch. 48, par. 1714)
15    Sec. 14. Unfair labor practices.
16    (a) Educational employers, their agents or representatives
17are prohibited from:
18        (1) Interfering, restraining or coercing employees in
19    the exercise of the rights guaranteed under this Act.
20        (2) Dominating or interfering with the formation,
21    existence or administration of any employee organization.
22        (3) Discriminating in regard to hire or tenure of
23    employment or any term or condition of employment to
24    encourage or discourage membership in any employee
25    organization.

 

 

09900SB0017sam001- 193 -LRB099 05660 RPS 52198 a

1        (4) Discharging or otherwise discriminating against an
2    employee because he or she has signed or filed an
3    affidavit, authorization card, petition or complaint or
4    given any information or testimony under this Act.
5        (5) Subject to and except as provided in Section 10.6,
6    refusing Refusing to bargain collectively in good faith
7    with an employee representative which is the exclusive
8    representative of employees in an appropriate unit,
9    including but not limited to the discussing of grievances
10    with the exclusive representative; provided, however, that
11    if an alleged unfair labor practice involves
12    interpretation or application of the terms of a collective
13    bargaining agreement and said agreement contains a
14    grievance and arbitration procedure, the Board may defer
15    the resolution of such dispute to the grievance and
16    arbitration procedure contained in said agreement.
17    However, no actions of the employer taken to implement or
18    otherwise comply with the provisions of subsection (a) of
19    Section 10.6 shall constitute or give rise to an unfair
20    labor practice under this Act.
21        (6) Refusing to reduce a collective bargaining
22    agreement to writing and signing such agreement.
23        (7) Violating any of the rules and regulations
24    promulgated by the Board regulating the conduct of
25    representation elections.
26        (8) Refusing to comply with the provisions of a binding

 

 

09900SB0017sam001- 194 -LRB099 05660 RPS 52198 a

1    arbitration award.
2        (9) Expending or causing the expenditure of public
3    funds to any external agent, individual, firm, agency,
4    partnership or association in any attempt to influence the
5    outcome of representational elections held pursuant to
6    paragraph (c) of Section 7 of this Act; provided, that
7    nothing in this subsection shall be construed to limit an
8    employer's right to be represented on any matter pertaining
9    to unit determinations, unfair labor practice charges or
10    pre-election conferences in any formal or informal
11    proceeding before the Board, or to seek or obtain advice
12    from legal counsel. Nothing in this paragraph shall be
13    construed to prohibit an employer from expending or causing
14    the expenditure of public funds on, or seeking or obtaining
15    services or advice from, any organization, group or
16    association established by, and including educational or
17    public employers, whether or not covered by this Act, the
18    Illinois Public Labor Relations Act or the public
19    employment labor relations law of any other state or the
20    federal government, provided that such services or advice
21    are generally available to the membership of the
22    organization, group, or association, and are not offered
23    solely in an attempt to influence the outcome of a
24    particular representational election.
25    (b) Employee organizations, their agents or
26representatives or educational employees are prohibited from:

 

 

09900SB0017sam001- 195 -LRB099 05660 RPS 52198 a

1        (1) Restraining or coercing employees in the exercise
2    of the rights guaranteed under this Act, provided that a
3    labor organization or its agents shall commit an unfair
4    labor practice under this paragraph in duty of fair
5    representation cases only by intentional misconduct in
6    representing employees under this Act.
7        (2) Restraining or coercing an educational employer in
8    the selection of his representative for the purposes of
9    collective bargaining or the adjustment of grievances.
10        (3) Refusing to bargain collectively in good faith with
11    an educational employer, if they have been designated in
12    accordance with the provisions of this Act as the exclusive
13    representative of employees in an appropriate unit.
14        (4) Violating any of the rules and regulations
15    promulgated by the Board regulating the conduct of
16    representation elections.
17        (5) Refusing to reduce a collective bargaining
18    agreement to writing and signing such agreement.
19        (6) Refusing to comply with the provisions of a binding
20    arbitration award.
21    (c) The expressing of any views, argument, opinion or the
22dissemination thereof, whether in written, printed, graphic or
23visual form, shall not constitute or be evidence of an unfair
24labor practice under any of the provisions of this Act, if such
25expression contains no threat of reprisal or force or promise
26of benefit.

 

 

09900SB0017sam001- 196 -LRB099 05660 RPS 52198 a

1    (d) The actions of a Financial Oversight Panel created
2pursuant to Section 1A-8 of the School Code due to a district
3violating a financial plan shall not constitute or be evidence
4of an unfair labor practice under any of the provisions of this
5Act. Such actions include, but are not limited to, reviewing,
6approving, or rejecting a school district budget or a
7collective bargaining agreement.
8(Source: P.A. 89-572, eff. 7-30-96.)
 
9    (115 ILCS 5/17)  (from Ch. 48, par. 1717)
10    Sec. 17. Effect on other laws. In case of any conflict
11between the provisions of this Act and any other law (other
12than Section 15-132.9, 16-122.9, or 17-115.5 of the Illinois
13Pension Code), executive order or administrative regulation,
14the provisions of this Act shall prevail and control. The
15provisions of this Act are subject to any applicable
16restrictions in Section 15-132.9, 16-122.9, or 17-115.5 of the
17Illinois Pension Code, as well as the changes, impact of
18changes, and implementation of changes set forth in this
19amendatory Act of the 99th General Assembly. Nothing in this
20Act shall be construed to replace or diminish the rights of
21employees established by Section 36d of "An Act to create the
22State Universities Civil Service System", approved May 11,
231905, as amended or modified.
24(Source: P.A. 83-1014.)
 

 

 

09900SB0017sam001- 197 -LRB099 05660 RPS 52198 a

1    Section 900. The State Mandates Act is amended by adding
2Section 8.40 as follows:
 
3    (30 ILCS 805/8.40 new)
4    Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8
5of this Act, no reimbursement by the State is required for the
6implementation of any mandate created by this amendatory Act of
7the 99th General Assembly.
 
8    Section 970. Severability. Except as otherwise provided in
9this Act, the provisions of this Act are severable under
10Section 1.31 of the Statute on Statutes.
 
11    Section 999. Effective date. This Act takes effect upon
12becoming law.".