HB1154ham002 98TH GENERAL ASSEMBLY

Rep. Michael J. Madigan

Filed: 2/26/2013

09800HB1154ham002 LRB098 08482 EFG 41387 a

AMENDMENT TO HOUSE BILL 1154

AMENDMENT NO. ______. Amend House Bill 1154 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Pension Code is amended by adding Sections 2-105.1, 2-105.2, 2-119.2, 14-103.40, 14-103.41, 14-114.1, 15-107.1, 15-107.2, 15-135.5, 16-106.4, 16-106.5, and 16-133.6 as follows:

(40 ILCS 5/2-105.1 new)

Sec. 2-105.1. Tier I participant. "Tier I participant": A participant who first became a participant before January 1, 2011.

(40 ILCS 5/2-105.2 new)

Sec. 2-105.2. Tier I retiree. "Tier I retiree": a former Tier I participant who is receiving a retirement annuity.

(40 ILCS 5/2-119.2 new)

Sec. 2-119.2. Termination of annual increases. Notwithstanding any other provision of this Article, no automatic annual increase in annuity shall be granted in any year in which the System is less than 80% funded as of the last preceding valuation date to (i) any Tier I retiree or (ii) any person receiving a survivor's annuity based on the death of a current or former Tier I participant or Tier I retiree. Annual increases granted before that effective date shall continue in force.

For purposes of Section 1-103.1, this Section applies without regard to whether the Tier I participant or Tier I retiree was in service on or after the effective date of this Section.

(40 ILCS 5/14-103.40 new)

Sec. 14-103.40. Tier I member. "Tier I member": A member of this System who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code.

(40 ILCS 5/14-103.41 new)

Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former Tier I member who is receiving a retirement annuity.

(40 ILCS 5/14-114.1 new)

Sec. 14-114.1. Termination of Tier I annual increases. Notwithstanding any other provision of this Article, no automatic annual increase in annuity shall be granted in any year in which the System is less than 80% funded as of the last preceding valuation date to (i) any Tier I retiree, (ii) any current or former Tier I member receiving a disability benefit, or (iii) any person receiving a reversionary annuity or a widow's or survivor's annuity based on the death of a current or former Tier I member or Tier I retiree. Annual increases granted before that effective date shall continue in force.

This Section does not apply to any annuity payable to a person subject to Section 1-160 with respect to service under this Article, nor to any annuity payable under this Article to the eligible survivor of such a person. For purposes of Section 1-103.1, this Section applies without regard to whether the Tier I member or Tier I retiree was in service on or after the effective date of this Section.

(40 ILCS 5/15-107.1 new)

Sec. 15-107.1. Tier I participant. "Tier I participant": A participant under this Article, other than a participant in the self-managed plan under Section 15-158.2, who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code.

(40 ILCS 5/15-107.2 new)

Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former Tier I participant who is receiving a retirement annuity.

A person does not become a Tier I retiree by virtue of receiving a reversionary, survivors, beneficiary, or disability annuity.

(40 ILCS 5/15-135.5 new)

Sec. 15-135.5. Termination of Tier I annual increases. Notwithstanding any other provision of this Article, no automatic annual increase in annuity shall be granted in any year in which the System is less than 80% funded as of the last preceding valuation date to (i) any Tier I retiree, (ii) any current or former Tier I participant receiving a disability benefit, or (iii) any person receiving a survivors insurance benefit, reversionary annuity, or other type of annuity based on the death of a current or former Tier I participant or Tier I retiree. Annual increases granted before that effective date shall continue in force.

This Section does not apply to any annuity payable to a person subject to Section 1-160 with respect to service under this Article, nor to any annuity payable under this Article to the eligible survivor of such a person. This Section does not apply to benefits, including disability benefits, payable under the self-managed plan. For purposes of Section 1-103.1, this Section applies without regard to whether the Tier I participant or Tier I retiree was in service on or after the effective date of this Section.

(40 ILCS 5/16-106.4 new)

Sec. 16-106.4. Tier I member. "Tier I member": A member under this Article who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code.

(40 ILCS 5/16-106.5 new)

Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former Tier I member who is receiving a retirement annuity.

(40 ILCS 5/16-133.6 new)

Sec. 16-133.6. Termination of Tier I annual increases. Notwithstanding any other provision of this Article, no automatic annual increase in annuity shall be granted in any year in which the System is less than 80% funded as of the last preceding valuation date to (i) any Tier I retiree, (ii) any current or former Tier I member receiving a disability benefit, or (iii) any person receiving a reversionary annuity or survivor's benefit based on the death of a current or former Tier I member or Tier I retiree. Annual increases granted before that effective date shall continue in force.

This Section does not apply to any annuity payable to a person subject to Section 1-160 with respect to service under this Article, nor to any annuity payable under this Article to the eligible survivor of such a person. For purposes of Section 1-103.1, this Section applies without regard to whether the Tier I member or Tier I retiree was in service on or after the effective date of this Section.

Section 99. Effective date. This Act takes effect upon becoming law.".