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90_HB2187 40 ILCS 5/Art. 1A heading new 40 ILCS 5/1A-101 new 40 ILCS 5/1A-102 new 40 ILCS 5/1A-103 new 30 ILCS 805/8.21 new Amends the Illinois Pension Code. Provides for the creation of a new defined-contribution retirement plan for all new public officers and employees. Excludes new public officers and employees from the existing pension funds created under the Pension Code. Pre-empts home rule power. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB9003847EGfg LRB9003847EGfg 1 AN ACT to amend the Illinois Pension Code and the State 2 Mandates Act. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 adding Article 1A as follows: 7 (40 ILCS 5/Art. 1A heading new) 8 ARTICLE 1A. RETIREMENT 9 PLAN FOR NEW PUBLIC EMPLOYEES 10 (40 ILCS 5/1A-101 new) 11 Sec. 1A-101. Definitions. For the purposes of this 12 Article: 13 "Public employee" means an officer or employee of the 14 State of Illinois or any political subdivision of the State, 15 or of any unit of local government or school district in 16 Illinois, or of any governmental entity created by agreement 17 between 2 or more governmental entities within this State. 18 "New public employee" means a person who first becomes a 19 public employee on or after January 1, 1999 or the date upon 20 which the retirement plan established under this Article 21 first takes effect, whichever is later. 22 "Plan" or "retirement plan" means the retirement plan for 23 new public employees established under this Article. 24 (40 ILCS 5/1A-102 new) 25 Sec. 1A-102. Limitation on existing pension funds and 26 retirement systems. Notwithstanding any other provision of 27 this Code, a new public employee shall not, by virtue of that 28 public employment, participate in any of the pension funds or 29 retirement systems established under Articles 2 through 18 of -2- LRB9003847EGfg 1 this Code. 2 (40 ILCS 5/1A-103 new) 3 Sec. 1A-103. Retirement plan for new public employees. 4 (a) By January 15, 1998, the Department of Central 5 Management Services, in consultation with the Pension Laws 6 Commission and the Public Employee Pension Fund Division of 7 the Department of Insurance, shall prepare and submit to the 8 General Assembly for consideration a defined-contribution 9 retirement plan for new public employees. The proposed 10 retirement plan shall comply with the requirements of this 11 Article and shall be consistent with nationally accepted 12 principles relating to the design of public employee 13 retirement plans. 14 (b) A retirement plan for new public employees shall be 15 established under this Article only if enacted into law by 16 the Illinois General Assembly. A retirement plan established 17 under this Article may be amended only by a law enacted by 18 the General Assembly. A retirement plan established under 19 this Article shall not be the subject of collective 20 bargaining. 21 Only one retirement plan established under this Article 22 may be in effect at any one time, and that plan shall treat 23 in an identical manner all public employees who participate 24 in the plan. The retirement plan shall comply with the 25 requirements of this Article and shall be consistent with 26 nationally accepted principles relating to the design of 27 public employee retirement plans. 28 As provided in Article XIII, Section 5 of the Illinois 29 Constitution, a retirement plan established under this 30 Article creates an enforceable contractual relationship, the 31 benefits of which may not be diminished or impaired. 32 (c) A retirement plan established under this Article 33 shall be administered by the Department of Central Management -3- LRB9003847EGfg 1 Services, either directly or through a contractual agreement 2 with an independent Plan Administrator. The retirement plan 3 shall be administered in a manner that complies with the 4 requirements of this Article and is consistent with 5 nationally accepted principles governing the management and 6 administration of public employee retirement plans. 7 (d) A new public employee shall participate in the 8 retirement plan established under this Article as a condition 9 of that public employment and shall not participate, by 10 virtue of that public employment, in any other pension fund 11 or retirement system established under this Code. No other 12 person may participate in the plan. 13 (e) A participant in the retirement plan may contribute 14 to the plan up to 15% of his or her salary. A participant 15 who does not participate in social security must contribute 16 to the plan at least 6% of his or her salary. A participant 17 who does participate in social security need not make any 18 contribution to the plan. 19 (f) The employer of a new public employee shall 20 contribute to the retirement plan an amount equal to: 21 (1) if the participant does not participate in 22 social security, 10% of the participant's salary; or 23 (2) if the participant does participate in social 24 security, 5% of the participant's salary. 25 (g) The regulation of retirement benefits for new public 26 employees is an exclusive power and function of the State. 27 This Article is a denial and limitation of home rule powers 28 under subsection (g) of Section 6 of Article VII of the 29 Illinois Constitution. 30 Section 90. The State Mandates Act is amended by adding 31 Section 8.21 as follows: 32 (30 ILCS 805/8.21 new) -4- LRB9003847EGfg 1 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 2 and 8 of this Act, no reimbursement by the State is required 3 for the implementation of any mandate created by this 4 amendatory Act of 1997. 5 Section 99. Effective date. This Act takes effect upon 6 becoming law.
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