Rep. Robert Martwick

Filed: 4/18/2018

 

 


 

 


 
10000HB5137ham001LRB100 20023 RPS 36890 a

1
AMENDMENT TO HOUSE BILL 5137

2    AMENDMENT NO. ______. Amend House Bill 5137 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 15-198 and 16-203 and by adding Sections
615-202 and 16-204 as follows:
 
7    (40 ILCS 5/15-198)
8    Sec. 15-198. Application and expiration of new benefit
9increases.
10    (a) As used in this Section, "new benefit increase" means
11an increase in the amount of any benefit provided under this
12Article, or an expansion of the conditions of eligibility for
13any benefit under this Article, that results from an amendment
14to this Code that takes effect after the effective date of this
15amendatory Act of the 94th General Assembly. "New benefit
16increase", however, does not include any benefit increase

 

 

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1resulting from the changes made to Article 1 or this Article by
2Public Act 100-23 or this amendatory Act of the 100th General
3Assembly this amendatory Act of the 100th General Assembly.
4    (b) Notwithstanding any other provision of this Code or any
5subsequent amendment to this Code, every new benefit increase
6is subject to this Section and shall be deemed to be granted
7only in conformance with and contingent upon compliance with
8the provisions of this Section.
9    (c) The Public Act enacting a new benefit increase must
10identify and provide for payment to the System of additional
11funding at least sufficient to fund the resulting annual
12increase in cost to the System as it accrues.
13    Every new benefit increase is contingent upon the General
14Assembly providing the additional funding required under this
15subsection. The Commission on Government Forecasting and
16Accountability shall analyze whether adequate additional
17funding has been provided for the new benefit increase and
18shall report its analysis to the Public Pension Division of the
19Department of Insurance. A new benefit increase created by a
20Public Act that does not include the additional funding
21required under this subsection is null and void. If the Public
22Pension Division determines that the additional funding
23provided for a new benefit increase under this subsection is or
24has become inadequate, it may so certify to the Governor and
25the State Comptroller and, in the absence of corrective action
26by the General Assembly, the new benefit increase shall expire

 

 

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1at the end of the fiscal year in which the certification is
2made.
3    (d) Every new benefit increase shall expire 5 years after
4its effective date or on such earlier date as may be specified
5in the language enacting the new benefit increase or provided
6under subsection (c). This does not prevent the General
7Assembly from extending or re-creating a new benefit increase
8by law.
9    (e) Except as otherwise provided in the language creating
10the new benefit increase, a new benefit increase that expires
11under this Section continues to apply to persons who applied
12and qualified for the affected benefit while the new benefit
13increase was in effect and to the affected beneficiaries and
14alternate payees of such persons, but does not apply to any
15other person, including without limitation a person who
16continues in service after the expiration date and did not
17apply and qualify for the affected benefit while the new
18benefit increase was in effect.
19(Source: P.A. 100-23, eff. 7-6-17.)
 
20    (40 ILCS 5/15-202 new)
21    Sec. 15-202. Optional defined contribution benefit. As
22soon as practicable after the effective date of this amendatory
23Act of the 100th General Assembly, the System shall offer a
24defined contribution benefit to active members of the System.
25The defined contribution benefit shall be an optional benefit

 

 

10000HB5137ham001- 4 -LRB100 20023 RPS 36890 a

1to any member who chooses to participate. The defined
2contribution benefit shall collect optional employee and
3optional employer contributions into an account and shall offer
4investment options to the participant. The benefit under this
5Section shall be operated in full compliance with any
6applicable State and federal laws, and the System shall utilize
7generally accepted practices in creating and maintaining the
8benefit for the best interest of the participants. The System
9may use funds from the employee and employer contributions to
10defray any and all costs of creating and maintaining the
11benefit. The System shall produce an annual report on the
12participation in the benefit and shall make the report public.
 
13    (40 ILCS 5/16-203)
14    Sec. 16-203. 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 June 1, 2005 (the
21effective date of Public Act 94-4). "New benefit increase",
22however, does not include any benefit increase resulting from
23the changes made to Article 1 or this Article by Public Act
2495-910, Public Act 100-23, or this amendatory Act of the 100th
25General Assembly or this amendatory Act of the 100th General

 

 

10000HB5137ham001- 5 -LRB100 20023 RPS 36890 a

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

 

 

10000HB5137ham001- 6 -LRB100 20023 RPS 36890 a

1    (d) Every new benefit increase shall expire 5 years after
2its effective date or on such earlier date as may be specified
3in the language enacting the new benefit increase or provided
4under subsection (c). This does not prevent the General
5Assembly from extending or re-creating a new benefit increase
6by law.
7    (e) Except as otherwise provided in the language creating
8the new benefit increase, a new benefit increase that expires
9under this Section continues to apply to persons who applied
10and qualified for the affected benefit while the new benefit
11increase was in effect and to the affected beneficiaries and
12alternate payees of such persons, but does not apply to any
13other person, including without limitation a person who
14continues in service after the expiration date and did not
15apply and qualify for the affected benefit while the new
16benefit increase was in effect.
17(Source: P.A. 100-23, eff. 7-6-17.)
 
18    (40 ILCS 5/16-204 new)
19    Sec. 16-204. Optional defined contribution benefit. As
20soon as practicable after the effective date of this amendatory
21Act of the 100th General Assembly, the System shall offer a
22defined contribution benefit to active members of the System.
23The defined contribution benefit shall be an optional benefit
24to any member who chooses to participate. The defined
25contribution benefit shall collect optional employee and

 

 

10000HB5137ham001- 7 -LRB100 20023 RPS 36890 a

1optional employer contributions into an account and shall offer
2investment options to the participant. The benefit under this
3Section shall be operated in full compliance with any
4applicable State and federal laws, and the System shall utilize
5generally accepted practices in creating and maintaining the
6benefit for the best interest of the participants. The System
7may use funds from the employee and employer contributions to
8defray any and all costs of creating and maintaining the
9benefit. The System shall produce an annual report on the
10participation in the benefit and shall make the report public.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".