Illinois General Assembly - Full Text of SB1345
Illinois General Assembly

Previous General Assemblies

Full Text of SB1345  100th General Assembly

SB1345ham002 100TH GENERAL ASSEMBLY

Rep. Robert Martwick

Filed: 10/19/2017

 

 


 

 


 
10000SB1345ham002LRB100 10076 RPS 30026 a

1
AMENDMENT TO SENATE BILL 1345

2    AMENDMENT NO. ______. Amend Senate Bill 1345 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160 and 15-108.2 as follows:
 
6    (40 ILCS 5/1-160)
7    Sec. 1-160. Provisions applicable to new hires.
8    (a) The provisions of this Section apply to a person who,
9on or after January 1, 2011, first becomes a member or a
10participant under any reciprocal retirement system or pension
11fund established under this Code, other than a retirement
12system or pension fund established under Article 2, 3, 4, 5, 6,
1315 or 18 of this Code, notwithstanding any other provision of
14this Code to the contrary, but do not apply to any self-managed
15plan established under this Code, to any person with respect to
16service as a sheriff's law enforcement employee under Article

 

 

10000SB1345ham002- 2 -LRB100 10076 RPS 30026 a

17, or to any participant of the retirement plan established
2under Section 22-101. Notwithstanding anything to the contrary
3in this Section, for purposes of this Section, a person who
4participated in a retirement system under Article 15 prior to
5January 1, 2011 shall be deemed a person who first became a
6member or participant prior to January 1, 2011 under any
7retirement system or pension fund subject to this Section. The
8changes made to this Section by Public Act 98-596 are a
9clarification of existing law and are intended to be
10retroactive to January 1, 2011 (the effective date of Public
11Act 96-889), notwithstanding the provisions of Section 1-103.1
12of this Code.
13    This Section does not apply to a person who first becomes a
14noncovered employee member or participant under Article 14 on
15or after the implementation date of the plan created under
16Section 1-161 for that Article, unless that person elects under
17subsection (b) of Section 1-161 to instead receive the benefits
18provided under this Section and the applicable provisions of
19that Article.
20    This Section does not apply to a person who first becomes a
21member or participant under Article 16 on or after the
22implementation date of the plan created under Section 1-161 for
23that Article, unless that person elects under subsection (b) of
24Section 1-161 to instead receive the benefits provided under
25this Section and the applicable provisions of that Article.
26    This Section does not apply to a person who elects under

 

 

10000SB1345ham002- 3 -LRB100 10076 RPS 30026 a

1subsection (c-5) of Section 1-161 to receive the benefits under
2Section 1-161.
3    This Section does not apply to a person who first becomes a
4member or participant of an affected pension fund on or after 6
5months after the resolution or ordinance date, as defined in
6Section 1-162, unless that person elects under subsection (c)
7of Section 1-162 to receive the benefits provided under this
8Section and the applicable provisions of the Article under
9which he or she is a member or participant.
10    (b) "Final average salary" means the average monthly (or
11annual) salary obtained by dividing the total salary or
12earnings calculated under the Article applicable to the member
13or participant during the 96 consecutive months (or 8
14consecutive years) of service within the last 120 months (or 10
15years) of service in which the total salary or earnings
16calculated under the applicable Article was the highest by the
17number of months (or years) of service in that period. For the
18purposes of a person who first becomes a member or participant
19of any retirement system or pension fund to which this Section
20applies on or after January 1, 2011, in this Code, "final
21average salary" shall be substituted for the following:
22        (1) In Article 7 (except for service as sheriff's law
23    enforcement employees), "final rate of earnings".
24        (2) In Articles 8, 9, 10, 11, and 12, "highest average
25    annual salary for any 4 consecutive years within the last
26    10 years of service immediately preceding the date of

 

 

10000SB1345ham002- 4 -LRB100 10076 RPS 30026 a

1    withdrawal".
2        (3) In Article 13, "average final salary".
3        (4) In Article 14, "final average compensation".
4        (5) In Article 17, "average salary".
5        (6) In Section 22-207, "wages or salary received by him
6    at the date of retirement or discharge".
7    (b-5) Beginning on January 1, 2011, for all purposes under
8this Code (including without limitation the calculation of
9benefits and employee contributions), the annual earnings,
10salary, or wages (based on the plan year) of a member or
11participant to whom this Section applies shall not exceed
12$106,800; however, that amount shall annually thereafter be
13increased by the lesser of (i) 3% of that amount, including all
14previous adjustments, or (ii) one-half the annual unadjusted
15percentage increase (but not less than zero) in the consumer
16price index-u for the 12 months ending with the September
17preceding each November 1, including all previous adjustments.
18    For the purposes of this Section, "consumer price index-u"
19means the index published by the Bureau of Labor Statistics of
20the United States Department of Labor that measures the average
21change in prices of goods and services purchased by all urban
22consumers, United States city average, all items, 1982-84 =
23100. The new amount resulting from each annual adjustment shall
24be determined by the Public Pension Division of the Department
25of Insurance and made available to the boards of the retirement
26systems and pension funds by November 1 of each year.

 

 

10000SB1345ham002- 5 -LRB100 10076 RPS 30026 a

1    (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (beginning January 1, 2015, age 65 with respect to service
4under Article 12 of this Code that is subject to this Section)
5and has at least 10 years of service credit and is otherwise
6eligible under the requirements of the applicable Article.
7    A member or participant who has attained age 62 (beginning
8January 1, 2015, age 60 with respect to service under Article
912 of this Code that is subject to this Section) and has at
10least 10 years of service credit and is otherwise eligible
11under the requirements of the applicable Article may elect to
12receive the lower retirement annuity provided in subsection (d)
13of this Section.
14    (c-5) A person who first becomes a member or a participant
15under Article 8 or Article 11 of this Code on or after the
16effective date of this amendatory Act of the 100th General
17Assembly, notwithstanding any other provision of this Code to
18the contrary, is entitled to a retirement annuity upon written
19application if he or she has attained age 65 and has at least
2010 years of service credit under Article 8 or Article 11 of
21this Code and is otherwise eligible under the requirements of
22Article 8 or Article 11 of this Code, whichever is applicable.
23    (d) The retirement annuity of a member or participant who
24is retiring after attaining age 62 (beginning January 1, 2015,
25age 60 with respect to service under Article 12 of this Code
26that is subject to this Section) with at least 10 years of

 

 

10000SB1345ham002- 6 -LRB100 10076 RPS 30026 a

1service credit shall be reduced by one-half of 1% for each full
2month that the member's age is under age 67 (beginning January
31, 2015, age 65 with respect to service under Article 12 of
4this Code that is subject to this Section).
5    (d-5) The retirement annuity of a person who first becomes
6a member or a participant under Article 8 or Article 11 of this
7Code on or after the effective date of this amendatory Act of
8the 100th General Assembly who is retiring at age 60 with at
9least 10 years of service credit under Article 8 or Article 11
10shall be reduced by one-half of 1% for each full month that the
11member's age is under age 65.
12    (d-10) Each person who first became a member or participant
13under Article 8 or Article 11 of this Code on or after January
141, 2011 and prior to the effective date of this amendatory Act
15of the 100th General Assembly shall make an irrevocable
16election either:
17        (i) to be eligible for the reduced retirement age
18    provided in subsections (c-5) and (d-5) of this Section,
19    the eligibility for which is conditioned upon the member or
20    participant agreeing to the increases in employee
21    contributions for age and service annuities provided in
22    subsection (a-5) of Section 8-174 of this Code (for service
23    under Article 8) or subsection (a-5) of Section 11-170 of
24    this Code (for service under Article 11); or
25        (ii) to not agree to item (i) of this subsection
26    (d-10), in which case the member or participant shall

 

 

10000SB1345ham002- 7 -LRB100 10076 RPS 30026 a

1    continue to be subject to the retirement age provisions in
2    subsections (c) and (d) of this Section and the employee
3    contributions for age and service annuity as provided in
4    subsection (a) of Section 8-174 of this Code (for service
5    under Article 8) or subsection (a) of Section 11-170 of
6    this Code (for service under Article 11).
7    The election provided for in this subsection shall be made
8between October 1, 2017 and November 15, 2017. A person subject
9to this subsection who makes the required election shall remain
10bound by that election. A person subject to this subsection who
11fails for any reason to make the required election within the
12time specified in this subsection shall be deemed to have made
13the election under item (ii).
14    (e) Any retirement annuity or supplemental annuity shall be
15subject to annual increases on the January 1 occurring either
16on or after the attainment of age 67 (beginning January 1,
172015, age 65 with respect to service under Article 12 of this
18Code that is subject to this Section and beginning on the
19effective date of this amendatory Act of the 100th General
20Assembly, age 65 with respect to persons who: (i) first became
21members or participants under Article 8 or Article 11 of this
22Code on or after the effective date of this amendatory Act of
23the 100th General Assembly; or (ii) first became members or
24participants under Article 8 or Article 11 of this Code on or
25after January 1, 2011 and before the effective date of this
26amendatory Act of the 100th General Assembly and made the

 

 

10000SB1345ham002- 8 -LRB100 10076 RPS 30026 a

1election under item (i) of subsection (d-10) of this Section)
2or the first anniversary of the annuity start date, whichever
3is later. Each annual increase shall be calculated at 3% or
4one-half the annual unadjusted percentage increase (but not
5less than zero) in the consumer price index-u for the 12 months
6ending with the September preceding each November 1, whichever
7is less, of the originally granted retirement annuity. If the
8annual unadjusted percentage change in the consumer price
9index-u for the 12 months ending with the September preceding
10each November 1 is zero or there is a decrease, then the
11annuity shall not be increased.
12    For the purposes of Section 1-103.1 of this Code, the
13changes made to this Section by this amendatory Act of the
14100th General Assembly are applicable without regard to whether
15the employee was in active service on or after the effective
16date of this amendatory Act of the 100th General Assembly.
17    (f) The initial survivor's or widow's annuity of an
18otherwise eligible survivor or widow of a retired member or
19participant who first became a member or participant on or
20after January 1, 2011 shall be in the amount of 66 2/3% of the
21retired member's or participant's retirement annuity at the
22date of death. In the case of the death of a member or
23participant who has not retired and who first became a member
24or participant on or after January 1, 2011, eligibility for a
25survivor's or widow's annuity shall be determined by the
26applicable Article of this Code. The initial benefit shall be

 

 

10000SB1345ham002- 9 -LRB100 10076 RPS 30026 a

166 2/3% of the earned annuity without a reduction due to age. A
2child's annuity of an otherwise eligible child shall be in the
3amount prescribed under each Article if applicable. Any
4survivor's or widow's annuity shall be increased (1) on each
5January 1 occurring on or after the commencement of the annuity
6if the deceased member died while receiving a retirement
7annuity or (2) in other cases, on each January 1 occurring
8after the first anniversary of the commencement of the annuity.
9Each annual increase shall be calculated at 3% or one-half the
10annual unadjusted percentage increase (but not less than zero)
11in the consumer price index-u for the 12 months ending with the
12September preceding each November 1, whichever is less, of the
13originally granted survivor's annuity. If the annual
14unadjusted percentage change in the consumer price index-u for
15the 12 months ending with the September preceding each November
161 is zero or there is a decrease, then the annuity shall not be
17increased.
18    (g) The benefits in Section 14-110 apply only if the person
19is a State policeman, a fire fighter in the fire protection
20service of a department, or a security employee of the
21Department of Corrections or the Department of Juvenile
22Justice, as those terms are defined in subsection (b) of
23Section 14-110. A person who meets the requirements of this
24Section is entitled to an annuity calculated under the
25provisions of Section 14-110, in lieu of the regular or minimum
26retirement annuity, only if the person has withdrawn from

 

 

10000SB1345ham002- 10 -LRB100 10076 RPS 30026 a

1service with not less than 20 years of eligible creditable
2service and has attained age 60, regardless of whether the
3attainment of age 60 occurs while the person is still in
4service.
5    (h) If a person who first becomes a member or a participant
6of a retirement system or pension fund subject to this Section
7on or after January 1, 2011 is receiving a retirement annuity
8or retirement pension under that system or fund and becomes a
9member or participant under any other system or fund created by
10this Code and is employed on a full-time basis, except for
11those members or participants exempted from the provisions of
12this Section under subsection (a) of this Section, then the
13person's retirement annuity or retirement pension under that
14system or fund shall be suspended during that employment. Upon
15termination of that employment, the person's retirement
16annuity or retirement pension payments shall resume and be
17recalculated if recalculation is provided for under the
18applicable Article of this Code.
19    If a person who first becomes a member of a retirement
20system or pension fund subject to this Section on or after
21January 1, 2012 and is receiving a retirement annuity or
22retirement pension under that system or fund and accepts on a
23contractual basis a position to provide services to a
24governmental entity from which he or she has retired, then that
25person's annuity or retirement pension earned as an active
26employee of the employer shall be suspended during that

 

 

10000SB1345ham002- 11 -LRB100 10076 RPS 30026 a

1contractual service. A person receiving an annuity or
2retirement pension under this Code shall notify the pension
3fund or retirement system from which he or she is receiving an
4annuity or retirement pension, as well as his or her
5contractual employer, of his or her retirement status before
6accepting contractual employment. A person who fails to submit
7such notification shall be guilty of a Class A misdemeanor and
8required to pay a fine of $1,000. Upon termination of that
9contractual employment, the person's retirement annuity or
10retirement pension payments shall resume and, if appropriate,
11be recalculated under the applicable provisions of this Code.
12    (i) (Blank).
13    (j) In the case of a conflict between the provisions of
14this Section and any other provision of this Code, the
15provisions of this Section shall control.
16(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17.)
 
17    (40 ILCS 5/15-108.2)
18    Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who
19first becomes a participant under this Article on or after
20January 1, 2011 and before the implementation date, as defined
21under subsection (a) of Section 1-161, determined by the Board
226 months after the effective date of this amendatory Act of the
23100th General Assembly, other than a person in the self-managed
24plan established under Section 15-158.2 or a person who makes
25the election under subsection (c) of Section 1-161, unless the

 

 

10000SB1345ham002- 12 -LRB100 10076 RPS 30026 a

1person is otherwise a Tier 1 member. The changes made to this
2Section by this amendatory Act of the 98th General Assembly are
3a correction of existing law and are intended to be retroactive
4to the effective date of Public Act 96-889, notwithstanding the
5provisions of Section 1-103.1 of this Code.
6(Source: P.A. 100-23, eff. 7-6-17.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".