Sen. John J. Cullerton

Filed: 1/24/2017

 

 


 

 


 
10000SB0011sam001LRB100 06001 RPS 18183 a

1
AMENDMENT TO SENATE BILL 11

2    AMENDMENT NO. ______. Amend Senate Bill 11 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 100th
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 100th 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 100th 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10or superseded after the effective date of this amendatory Act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 100th General Assembly shall be subject to the
12provisions of 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 100th 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
17100th 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 100th
20General Assembly.
21(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
22    Section 10. The State Employees Group Insurance Act of 1971
23is amended by changing Sections 3 and 10 as follows:
 
24    (5 ILCS 375/3)  (from Ch. 127, par. 523)

 

 

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1    Sec. 3. Definitions. Unless the context otherwise
2requires, the following words and phrases as used in this Act
3shall have the following meanings. The Department may define
4these and other words and phrases separately for the purpose of
5implementing specific programs providing benefits under this
6Act.
7    (a) "Administrative service organization" means any
8person, firm or corporation experienced in the handling of
9claims which is fully qualified, financially sound and capable
10of meeting the service requirements of a contract of
11administration executed with the Department.
12    (b) "Annuitant" means (1) an employee who retires, or has
13retired, on or after January 1, 1966 on an immediate annuity
14under the provisions of Articles 2, 14 (including an employee
15who has elected to receive an alternative retirement
16cancellation payment under Section 14-108.5 of the Illinois
17Pension Code in lieu of an annuity or who meets the criteria
18for retirement, but in lieu of receiving an annuity under that
19Article has elected to receive an accelerated pension benefit
20payment under Section 14-147.5 of that Article), 15 (including
21an employee who has retired under the optional retirement
22program established under Section 15-158.2 or who meets the
23criteria for retirement but in lieu of receiving an annuity
24under that Article has elected to receive an accelerated
25pension benefit payment under Section 15-185.5 of the Article),
26paragraphs (2), (3), or (5) of Section 16-106 (including an

 

 

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1employee who meets the criteria for retirement, but in lieu of
2receiving an annuity under that Article has elected to receive
3an accelerated pension benefit payment under Section 16-190.5
4of the Illinois Pension Code), or Article 18 of the Illinois
5Pension Code; (2) any person who was receiving group insurance
6coverage under this Act as of March 31, 1978 by reason of his
7status as an annuitant, even though the annuity in relation to
8which such coverage was provided is a proportional annuity
9based on less than the minimum period of service required for a
10retirement annuity in the system involved; (3) any person not
11otherwise covered by this Act who has retired as a
12participating member under Article 2 of the Illinois Pension
13Code but is ineligible for the retirement annuity under Section
142-119 of the Illinois Pension Code; (4) the spouse of any
15person who is receiving a retirement annuity under Article 18
16of the Illinois Pension Code and who is covered under a group
17health insurance program sponsored by a governmental employer
18other than the State of Illinois and who has irrevocably
19elected to waive his or her coverage under this Act and to have
20his or her spouse considered as the "annuitant" under this Act
21and not as a "dependent"; or (5) an employee who retires, or
22has retired, from a qualified position, as determined according
23to rules promulgated by the Director, under a qualified local
24government, a qualified rehabilitation facility, a qualified
25domestic violence shelter or service, or a qualified child
26advocacy center. (For definition of "retired employee", see (p)

 

 

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1post).
2    (b-5) (Blank).
3    (b-6) (Blank).
4    (b-7) (Blank).
5    (c) "Carrier" means (1) an insurance company, a corporation
6organized under the Limited Health Service Organization Act or
7the Voluntary Health Services Plan Act, a partnership, or other
8nongovernmental organization, which is authorized to do group
9life or group health insurance business in Illinois, or (2) the
10State of Illinois as a self-insurer.
11    (d) "Compensation" means salary or wages payable on a
12regular payroll by the State Treasurer on a warrant of the
13State Comptroller out of any State, trust or federal fund, or
14by the Governor of the State through a disbursing officer of
15the State out of a trust or out of federal funds, or by any
16Department out of State, trust, federal or other funds held by
17the State Treasurer or the Department, to any person for
18personal services currently performed, and ordinary or
19accidental disability benefits under Articles 2, 14, 15
20(including ordinary or accidental disability benefits under
21the optional retirement program established under Section
2215-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
23Article 18 of the Illinois Pension Code, for disability
24incurred after January 1, 1966, or benefits payable under the
25Workers' Compensation or Occupational Diseases Act or benefits
26payable under a sick pay plan established in accordance with

 

 

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1Section 36 of the State Finance Act. "Compensation" also means
2salary or wages paid to an employee of any qualified local
3government, qualified rehabilitation facility, qualified
4domestic violence shelter or service, or qualified child
5advocacy center.
6    (e) "Commission" means the State Employees Group Insurance
7Advisory Commission authorized by this Act. Commencing July 1,
81984, "Commission" as used in this Act means the Commission on
9Government Forecasting and Accountability as established by
10the Legislative Commission Reorganization Act of 1984.
11    (f) "Contributory", when referred to as contributory
12coverage, shall mean optional coverages or benefits elected by
13the member toward the cost of which such member makes
14contribution, or which are funded in whole or in part through
15the acceptance of a reduction in earnings or the foregoing of
16an increase in earnings by an employee, as distinguished from
17noncontributory coverage or benefits which are paid entirely by
18the State of Illinois without reduction of the member's salary.
19    (g) "Department" means any department, institution, board,
20commission, officer, court or any agency of the State
21government receiving appropriations and having power to
22certify payrolls to the Comptroller authorizing payments of
23salary and wages against such appropriations as are made by the
24General Assembly from any State fund, or against trust funds
25held by the State Treasurer and includes boards of trustees of
26the retirement systems created by Articles 2, 14, 15, 16 and 18

 

 

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1of the Illinois Pension Code. "Department" also includes the
2Illinois Comprehensive Health Insurance Board, the Board of
3Examiners established under the Illinois Public Accounting
4Act, and the Illinois Finance Authority.
5    (h) "Dependent", when the term is used in the context of
6the health and life plan, means a member's spouse and any child
7(1) from birth to age 26 including an adopted child, a child
8who lives with the member from the time of the filing of a
9petition for adoption until entry of an order of adoption, a
10stepchild or adjudicated child, or a child who lives with the
11member if such member is a court appointed guardian of the
12child or (2) age 19 or over who has a mental or physical
13disability from a cause originating prior to the age of 19 (age
1426 if enrolled as an adult child dependent). For the health
15plan only, the term "dependent" also includes (1) any person
16enrolled prior to the effective date of this Section who is
17dependent upon the member to the extent that the member may
18claim such person as a dependent for income tax deduction
19purposes and (2) any person who has received after June 30,
202000 an organ transplant and who is financially dependent upon
21the member and eligible to be claimed as a dependent for income
22tax purposes. A member requesting to cover any dependent must
23provide documentation as requested by the Department of Central
24Management Services and file with the Department any and all
25forms required by the Department.
26    (i) "Director" means the Director of the Illinois

 

 

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1Department of Central Management Services.
2    (j) "Eligibility period" means the period of time a member
3has to elect enrollment in programs or to select benefits
4without regard to age, sex or health.
5    (k) "Employee" means and includes each officer or employee
6in the service of a department who (1) receives his
7compensation for service rendered to the department on a
8warrant issued pursuant to a payroll certified by a department
9or on a warrant or check issued and drawn by a department upon
10a trust, federal or other fund or on a warrant issued pursuant
11to a payroll certified by an elected or duly appointed officer
12of the State or who receives payment of the performance of
13personal services on a warrant issued pursuant to a payroll
14certified by a Department and drawn by the Comptroller upon the
15State Treasurer against appropriations made by the General
16Assembly from any fund or against trust funds held by the State
17Treasurer, and (2) is employed full-time or part-time in a
18position normally requiring actual performance of duty during
19not less than 1/2 of a normal work period, as established by
20the Director in cooperation with each department, except that
21persons elected by popular vote will be considered employees
22during the entire term for which they are elected regardless of
23hours devoted to the service of the State, and (3) except that
24"employee" does not include any person who is not eligible by
25reason of such person's employment to participate in one of the
26State retirement systems under Articles 2, 14, 15 (either the

 

 

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1regular Article 15 system or the optional retirement program
2established under Section 15-158.2) or 18, or under paragraph
3(2), (3), or (5) of Section 16-106, of the Illinois Pension
4Code, but such term does include persons who are employed
5during the 6 month qualifying period under Article 14 of the
6Illinois Pension Code. Such term also includes any person who
7(1) after January 1, 1966, is receiving ordinary or accidental
8disability benefits under Articles 2, 14, 15 (including
9ordinary or accidental disability benefits under the optional
10retirement program established under Section 15-158.2),
11paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
12the Illinois Pension Code, for disability incurred after
13January 1, 1966, (2) receives total permanent or total
14temporary disability under the Workers' Compensation Act or
15Occupational Disease Act as a result of injuries sustained or
16illness contracted in the course of employment with the State
17of Illinois, or (3) is not otherwise covered under this Act and
18has retired as a participating member under Article 2 of the
19Illinois Pension Code but is ineligible for the retirement
20annuity under Section 2-119 of the Illinois Pension Code.
21However, a person who satisfies the criteria of the foregoing
22definition of "employee" except that such person is made
23ineligible to participate in the State Universities Retirement
24System by clause (4) of subsection (a) of Section 15-107 of the
25Illinois Pension Code is also an "employee" for the purposes of
26this Act. "Employee" also includes any person receiving or

 

 

10000SB0011sam001- 18 -LRB100 06001 RPS 18183 a

1eligible for benefits under a sick pay plan established in
2accordance with Section 36 of the State Finance Act. "Employee"
3also includes (i) each officer or employee in the service of a
4qualified local government, including persons appointed as
5trustees of sanitary districts regardless of hours devoted to
6the service of the sanitary district, (ii) each employee in the
7service of a qualified rehabilitation facility, (iii) each
8full-time employee in the service of a qualified domestic
9violence shelter or service, and (iv) each full-time employee
10in the service of a qualified child advocacy center, as
11determined according to rules promulgated by the Director.
12    (l) "Member" means an employee, annuitant, retired
13employee or survivor. In the case of an annuitant or retired
14employee who first becomes an annuitant or retired employee on
15or after the effective date of this amendatory Act of the 97th
16General Assembly, the individual must meet the minimum vesting
17requirements of the applicable retirement system in order to be
18eligible for group insurance benefits under that system. In the
19case of a survivor who first becomes a survivor on or after the
20effective date of this amendatory Act of the 97th General
21Assembly, the deceased employee, annuitant, or retired
22employee upon whom the annuity is based must have been eligible
23to participate in the group insurance system under the
24applicable retirement system in order for the survivor to be
25eligible for group insurance benefits under that system.
26    (m) "Optional coverages or benefits" means those coverages

 

 

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1or benefits available to the member on his or her voluntary
2election, and at his or her own expense.
3    (n) "Program" means the group life insurance, health
4benefits and other employee benefits designed and contracted
5for by the Director under this Act.
6    (o) "Health plan" means a health benefits program offered
7by the State of Illinois for persons eligible for the plan.
8    (p) "Retired employee" means any person who would be an
9annuitant as that term is defined herein but for the fact that
10such person retired prior to January 1, 1966. Such term also
11includes any person formerly employed by the University of
12Illinois in the Cooperative Extension Service who would be an
13annuitant but for the fact that such person was made ineligible
14to participate in the State Universities Retirement System by
15clause (4) of subsection (a) of Section 15-107 of the Illinois
16Pension Code.
17    (q) "Survivor" means a person receiving an annuity as a
18survivor of an employee or of an annuitant. "Survivor" also
19includes: (1) the surviving dependent of a person who satisfies
20the definition of "employee" except that such person is made
21ineligible to participate in the State Universities Retirement
22System by clause (4) of subsection (a) of Section 15-107 of the
23Illinois Pension Code; (2) the surviving dependent of any
24person formerly employed by the University of Illinois in the
25Cooperative Extension Service who would be an annuitant except
26for the fact that such person was made ineligible to

 

 

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1participate in the State Universities Retirement System by
2clause (4) of subsection (a) of Section 15-107 of the Illinois
3Pension Code; and (3) the surviving dependent of a person who
4was an annuitant under this Act by virtue of receiving an
5alternative retirement cancellation payment under Section
614-108.5 of the Illinois Pension Code.
7    (q-2) "SERS" means the State Employees' Retirement System
8of Illinois, created under Article 14 of the Illinois Pension
9Code.
10    (q-3) "SURS" means the State Universities Retirement
11System, created under Article 15 of the Illinois Pension Code.
12    (q-4) "TRS" means the Teachers' Retirement System of the
13State of Illinois, created under Article 16 of the Illinois
14Pension Code.
15    (q-5) (Blank).
16    (q-6) (Blank).
17    (q-7) (Blank).
18    (r) "Medical services" means the services provided within
19the scope of their licenses by practitioners in all categories
20licensed under the Medical Practice Act of 1987.
21    (s) "Unit of local government" means any county,
22municipality, township, school district (including a
23combination of school districts under the Intergovernmental
24Cooperation Act), special district or other unit, designated as
25a unit of local government by law, which exercises limited
26governmental powers or powers in respect to limited

 

 

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1governmental subjects, any not-for-profit association with a
2membership that primarily includes townships and township
3officials, that has duties that include provision of research
4service, dissemination of information, and other acts for the
5purpose of improving township government, and that is funded
6wholly or partly in accordance with Section 85-15 of the
7Township Code; any not-for-profit corporation or association,
8with a membership consisting primarily of municipalities, that
9operates its own utility system, and provides research,
10training, dissemination of information, or other acts to
11promote cooperation between and among municipalities that
12provide utility services and for the advancement of the goals
13and purposes of its membership; the Southern Illinois
14Collegiate Common Market, which is a consortium of higher
15education institutions in Southern Illinois; the Illinois
16Association of Park Districts; and any hospital provider that
17is owned by a county that has 100 or fewer hospital beds and
18has not already joined the program. "Qualified local
19government" means a unit of local government approved by the
20Director and participating in a program created under
21subsection (i) of Section 10 of this Act.
22    (t) "Qualified rehabilitation facility" means any
23not-for-profit organization that is accredited by the
24Commission on Accreditation of Rehabilitation Facilities or
25certified by the Department of Human Services (as successor to
26the Department of Mental Health and Developmental

 

 

10000SB0011sam001- 22 -LRB100 06001 RPS 18183 a

1Disabilities) to provide services to persons with disabilities
2and which receives funds from the State of Illinois for
3providing those services, approved by the Director and
4participating in a program created under subsection (j) of
5Section 10 of this Act.
6    (u) "Qualified domestic violence shelter or service" means
7any Illinois domestic violence shelter or service and its
8administrative offices funded by the Department of Human
9Services (as successor to the Illinois Department of Public
10Aid), approved by the Director and participating in a program
11created under subsection (k) of Section 10.
12    (v) "TRS benefit recipient" means a person who:
13        (1) is not a "member" as defined in this Section; and
14        (2) is receiving a monthly benefit or retirement
15    annuity under Article 16 of the Illinois Pension Code; and
16        (3) either (i) has at least 8 years of creditable
17    service under Article 16 of the Illinois Pension Code, or
18    (ii) was enrolled in the health insurance program offered
19    under that Article on January 1, 1996, or (iii) is the
20    survivor of a benefit recipient who had at least 8 years of
21    creditable service under Article 16 of the Illinois Pension
22    Code or was enrolled in the health insurance program
23    offered under that Article on the effective date of this
24    amendatory Act of 1995, or (iv) is a recipient or survivor
25    of a recipient of a disability benefit under Article 16 of
26    the Illinois Pension Code.

 

 

10000SB0011sam001- 23 -LRB100 06001 RPS 18183 a

1    (w) "TRS dependent beneficiary" means a person who:
2        (1) is not a "member" or "dependent" as defined in this
3    Section; and
4        (2) is a TRS benefit recipient's: (A) spouse, (B)
5    dependent parent who is receiving at least half of his or
6    her support from the TRS benefit recipient, or (C) natural,
7    step, adjudicated, or adopted child who is (i) under age
8    26, (ii) was, on January 1, 1996, participating as a
9    dependent beneficiary in the health insurance program
10    offered under Article 16 of the Illinois Pension Code, or
11    (iii) age 19 or over who has a mental or physical
12    disability from a cause originating prior to the age of 19
13    (age 26 if enrolled as an adult child).
14    "TRS dependent beneficiary" does not include, as indicated
15under paragraph (2) of this subsection (w), a dependent of the
16survivor of a TRS benefit recipient who first becomes a
17dependent of a survivor of a TRS benefit recipient on or after
18the effective date of this amendatory Act of the 97th General
19Assembly unless that dependent would have been eligible for
20coverage as a dependent of the deceased TRS benefit recipient
21upon whom the survivor benefit is based.
22    (x) "Military leave" refers to individuals in basic
23training for reserves, special/advanced training, annual
24training, emergency call up, activation by the President of the
25United States, or any other training or duty in service to the
26United States Armed Forces.

 

 

10000SB0011sam001- 24 -LRB100 06001 RPS 18183 a

1    (y) (Blank).
2    (z) "Community college benefit recipient" means a person
3who:
4        (1) is not a "member" as defined in this Section; and
5        (2) is receiving a monthly survivor's annuity or
6    retirement annuity under Article 15 of the Illinois Pension
7    Code; and
8        (3) either (i) was a full-time employee of a community
9    college district or an association of community college
10    boards created under the Public Community College Act
11    (other than an employee whose last employer under Article
12    15 of the Illinois Pension Code was a community college
13    district subject to Article VII of the Public Community
14    College Act) and was eligible to participate in a group
15    health benefit plan as an employee during the time of
16    employment with a community college district (other than a
17    community college district subject to Article VII of the
18    Public Community College Act) or an association of
19    community college boards, or (ii) is the survivor of a
20    person described in item (i).
21    (aa) "Community college dependent beneficiary" means a
22person who:
23        (1) is not a "member" or "dependent" as defined in this
24    Section; and
25        (2) is a community college benefit recipient's: (A)
26    spouse, (B) dependent parent who is receiving at least half

 

 

10000SB0011sam001- 25 -LRB100 06001 RPS 18183 a

1    of his or her support from the community college benefit
2    recipient, or (C) natural, step, adjudicated, or adopted
3    child who is (i) under age 26, or (ii) age 19 or over and
4    has a mental or physical disability from a cause
5    originating prior to the age of 19 (age 26 if enrolled as
6    an adult child).
7    "Community college dependent beneficiary" does not
8include, as indicated under paragraph (2) of this subsection
9(aa), a dependent of the survivor of a community college
10benefit recipient who first becomes a dependent of a survivor
11of a community college benefit recipient on or after the
12effective date of this amendatory Act of the 97th General
13Assembly unless that dependent would have been eligible for
14coverage as a dependent of the deceased community college
15benefit recipient upon whom the survivor annuity is based.
16    (bb) "Qualified child advocacy center" means any Illinois
17child advocacy center and its administrative offices funded by
18the Department of Children and Family Services, as defined by
19the Children's Advocacy Center Act (55 ILCS 80/), approved by
20the Director and participating in a program created under
21subsection (n) of Section 10.
22(Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
 
23    (5 ILCS 375/10)  (from Ch. 127, par. 530)
24    Sec. 10. Contributions by the State and members.
25    (a) The State shall pay the cost of basic non-contributory

 

 

10000SB0011sam001- 26 -LRB100 06001 RPS 18183 a

1group life insurance and, subject to member paid contributions
2set by the Department or required by this Section and except as
3provided in this Section, the basic program of group health
4benefits on each eligible member, except a member, not
5otherwise covered by this Act, who has retired as a
6participating member under Article 2 of the Illinois Pension
7Code but is ineligible for the retirement annuity under Section
82-119 of the Illinois Pension Code, and part of each eligible
9member's and retired member's premiums for health insurance
10coverage for enrolled dependents as provided by Section 9. The
11State shall pay the cost of the basic program of group health
12benefits only after benefits are reduced by the amount of
13benefits covered by Medicare for all members and dependents who
14are eligible for benefits under Social Security or the Railroad
15Retirement system or who had sufficient Medicare-covered
16government employment, except that such reduction in benefits
17shall apply only to those members and dependents who (1) first
18become eligible for such Medicare coverage on or after July 1,
191992; or (2) are Medicare-eligible members or dependents of a
20local government unit which began participation in the program
21on or after July 1, 1992; or (3) remain eligible for, but no
22longer receive Medicare coverage which they had been receiving
23on or after July 1, 1992. The Department may determine the
24aggregate level of the State's contribution on the basis of
25actual cost of medical services adjusted for age, sex or
26geographic or other demographic characteristics which affect

 

 

10000SB0011sam001- 27 -LRB100 06001 RPS 18183 a

1the costs of such programs.
2    The cost of participation in the basic program of group
3health benefits for the dependent or survivor of a living or
4deceased retired employee who was formerly employed by the
5University of Illinois in the Cooperative Extension Service and
6would be an annuitant but for the fact that he or she was made
7ineligible to participate in the State Universities Retirement
8System by clause (4) of subsection (a) of Section 15-107 of the
9Illinois Pension Code shall not be greater than the cost of
10participation that would otherwise apply to that dependent or
11survivor if he or she were the dependent or survivor of an
12annuitant under the State Universities Retirement System.
13    (a-1) (Blank).
14    (a-2) (Blank).
15    (a-3) (Blank).
16    (a-4) (Blank).
17    (a-5) (Blank).
18    (a-6) (Blank).
19    (a-7) (Blank).
20    (a-8) Any annuitant, survivor, or retired employee may
21waive or terminate coverage in the program of group health
22benefits. Any such annuitant, survivor, or retired employee who
23has waived or terminated coverage may enroll or re-enroll in
24the program of group health benefits only during the annual
25benefit choice period, as determined by the Director; except
26that in the event of termination of coverage due to nonpayment

 

 

10000SB0011sam001- 28 -LRB100 06001 RPS 18183 a

1of premiums, the annuitant, survivor, or retired employee may
2not re-enroll in the program.
3    (a-8.5) Beginning on the effective date of this amendatory
4Act of the 97th General Assembly, the Director of Central
5Management Services shall, on an annual basis, determine the
6amount that the State shall contribute toward the basic program
7of group health benefits on behalf of annuitants (including
8individuals who (i) participated in the General Assembly
9Retirement System, the State Employees' Retirement System of
10Illinois, the State Universities Retirement System, the
11Teachers' Retirement System of the State of Illinois, or the
12Judges Retirement System of Illinois and (ii) qualify as
13annuitants under subsection (b) of Section 3 of this Act),
14survivors (including individuals who (i) receive an annuity as
15a survivor of an individual who participated in the General
16Assembly Retirement System, the State Employees' Retirement
17System of Illinois, the State Universities Retirement System,
18the Teachers' Retirement System of the State of Illinois, or
19the Judges Retirement System of Illinois and (ii) qualify as
20survivors under subsection (q) of Section 3 of this Act), and
21retired employees (as defined in subsection (p) of Section 3 of
22this Act). The remainder of the cost of coverage for each
23annuitant, survivor, or retired employee, as determined by the
24Director of Central Management Services, shall be the
25responsibility of that annuitant, survivor, or retired
26employee.

 

 

10000SB0011sam001- 29 -LRB100 06001 RPS 18183 a

1    Contributions required of annuitants, survivors, and
2retired employees shall be the same for all retirement systems
3and shall also be based on whether an individual has made an
4election under Section 15-135.1 of the Illinois Pension Code.
5Contributions may be based on annuitants', survivors', or
6retired employees' Medicare eligibility, but may not be based
7on Social Security eligibility.
8    (a-9) No later than May 1 of each calendar year, the
9Director of Central Management Services shall certify in
10writing to the Executive Secretary of the State Employees'
11Retirement System of Illinois the amounts of the Medicare
12supplement health care premiums and the amounts of the health
13care premiums for all other retirees who are not Medicare
14eligible.
15    A separate calculation of the premiums based upon the
16actual cost of each health care plan shall be so certified.
17    The Director of Central Management Services shall provide
18to the Executive Secretary of the State Employees' Retirement
19System of Illinois such information, statistics, and other data
20as he or she may require to review the premium amounts
21certified by the Director of Central Management Services.
22    The Department of Central Management Services, or any
23successor agency designated to procure healthcare contracts
24pursuant to this Act, is authorized to establish funds,
25separate accounts provided by any bank or banks as defined by
26the Illinois Banking Act, or separate accounts provided by any

 

 

10000SB0011sam001- 30 -LRB100 06001 RPS 18183 a

1savings and loan association or associations as defined by the
2Illinois Savings and Loan Act of 1985 to be held by the
3Director, outside the State treasury, for the purpose of
4receiving the transfer of moneys from the Local Government
5Health Insurance Reserve Fund. The Department may promulgate
6rules further defining the methodology for the transfers. Any
7interest earned by moneys in the funds or accounts shall inure
8to the Local Government Health Insurance Reserve Fund. The
9transferred moneys, and interest accrued thereon, shall be used
10exclusively for transfers to administrative service
11organizations or their financial institutions for payments of
12claims to claimants and providers under the self-insurance
13health plan. The transferred moneys, and interest accrued
14thereon, shall not be used for any other purpose including, but
15not limited to, reimbursement of administration fees due the
16administrative service organization pursuant to its contract
17or contracts with the Department.
18    (a-10) To the extent that participation, benefits, or
19premiums under this Act are based on a person's service credit
20under an Article of the Illinois Pension Code, service credit
21terminated in exchange for an accelerated pension benefit
22payment under Section 14-147.5, 15-185.5, or 16-190.5 of that
23Code shall be included in determining a person's service credit
24for the purposes of this Act.
25    (b) State employees who become eligible for this program on
26or after January 1, 1980 in positions normally requiring actual

 

 

10000SB0011sam001- 31 -LRB100 06001 RPS 18183 a

1performance of duty not less than 1/2 of a normal work period
2but not equal to that of a normal work period, shall be given
3the option of participating in the available program. If the
4employee elects coverage, the State shall contribute on behalf
5of such employee to the cost of the employee's benefit and any
6applicable dependent supplement, that sum which bears the same
7percentage as that percentage of time the employee regularly
8works when compared to normal work period.
9    (c) The basic non-contributory coverage from the basic
10program of group health benefits shall be continued for each
11employee not in pay status or on active service by reason of
12(1) leave of absence due to illness or injury, (2) authorized
13educational leave of absence or sabbatical leave, or (3)
14military leave. This coverage shall continue until expiration
15of authorized leave and return to active service, but not to
16exceed 24 months for leaves under item (1) or (2). This
1724-month limitation and the requirement of returning to active
18service shall not apply to persons receiving ordinary or
19accidental disability benefits or retirement benefits through
20the appropriate State retirement system or benefits under the
21Workers' Compensation or Occupational Disease Act.
22    (d) The basic group life insurance coverage shall continue,
23with full State contribution, where such person is (1) absent
24from active service by reason of disability arising from any
25cause other than self-inflicted, (2) on authorized educational
26leave of absence or sabbatical leave, or (3) on military leave.

 

 

10000SB0011sam001- 32 -LRB100 06001 RPS 18183 a

1    (e) Where the person is in non-pay status for a period in
2excess of 30 days or on leave of absence, other than by reason
3of disability, educational or sabbatical leave, or military
4leave, such person may continue coverage only by making
5personal payment equal to the amount normally contributed by
6the State on such person's behalf. Such payments and coverage
7may be continued: (1) until such time as the person returns to
8a status eligible for coverage at State expense, but not to
9exceed 24 months or (2) until such person's employment or
10annuitant status with the State is terminated (exclusive of any
11additional service imposed pursuant to law).
12    (f) The Department shall establish by rule the extent to
13which other employee benefits will continue for persons in
14non-pay status or who are not in active service.
15    (g) The State shall not pay the cost of the basic
16non-contributory group life insurance, program of health
17benefits and other employee benefits for members who are
18survivors as defined by paragraphs (1) and (2) of subsection
19(q) of Section 3 of this Act. The costs of benefits for these
20survivors shall be paid by the survivors or by the University
21of Illinois Cooperative Extension Service, or any combination
22thereof. However, the State shall pay the amount of the
23reduction in the cost of participation, if any, resulting from
24the amendment to subsection (a) made by this amendatory Act of
25the 91st General Assembly.
26    (h) Those persons occupying positions with any department

 

 

10000SB0011sam001- 33 -LRB100 06001 RPS 18183 a

1as a result of emergency appointments pursuant to Section 8b.8
2of the Personnel Code who are not considered employees under
3this Act shall be given the option of participating in the
4programs of group life insurance, health benefits and other
5employee benefits. Such persons electing coverage may
6participate only by making payment equal to the amount normally
7contributed by the State for similarly situated employees. Such
8amounts shall be determined by the Director. Such payments and
9coverage may be continued until such time as the person becomes
10an employee pursuant to this Act or such person's appointment
11is terminated.
12    (i) Any unit of local government within the State of
13Illinois may apply to the Director to have its employees,
14annuitants, and their dependents provided group health
15coverage under this Act on a non-insured basis. To participate,
16a unit of local government must agree to enroll all of its
17employees, who may select coverage under either the State group
18health benefits plan or a health maintenance organization that
19has contracted with the State to be available as a health care
20provider for employees as defined in this Act. A unit of local
21government must remit the entire cost of providing coverage
22under the State group health benefits plan or, for coverage
23under a health maintenance organization, an amount determined
24by the Director based on an analysis of the sex, age,
25geographic location, or other relevant demographic variables
26for its employees, except that the unit of local government

 

 

10000SB0011sam001- 34 -LRB100 06001 RPS 18183 a

1shall not be required to enroll those of its employees who are
2covered spouses or dependents under this plan or another group
3policy or plan providing health benefits as long as (1) an
4appropriate official from the unit of local government attests
5that each employee not enrolled is a covered spouse or
6dependent under this plan or another group policy or plan, and
7(2) at least 50% of the employees are enrolled and the unit of
8local government remits the entire cost of providing coverage
9to those employees, except that a participating school district
10must have enrolled at least 50% of its full-time employees who
11have not waived coverage under the district's group health plan
12by participating in a component of the district's cafeteria
13plan. A participating school district is not required to enroll
14a full-time employee who has waived coverage under the
15district's health plan, provided that an appropriate official
16from the participating school district attests that the
17full-time employee has waived coverage by participating in a
18component of the district's cafeteria plan. For the purposes of
19this subsection, "participating school district" includes a
20unit of local government whose primary purpose is education as
21defined by the Department's rules.
22    Employees of a participating unit of local government who
23are not enrolled due to coverage under another group health
24policy or plan may enroll in the event of a qualifying change
25in status, special enrollment, special circumstance as defined
26by the Director, or during the annual Benefit Choice Period. A

 

 

10000SB0011sam001- 35 -LRB100 06001 RPS 18183 a

1participating unit of local government may also elect to cover
2its annuitants. Dependent coverage shall be offered on an
3optional basis, with the costs paid by the unit of local
4government, its employees, or some combination of the two as
5determined by the unit of local government. The unit of local
6government shall be responsible for timely collection and
7transmission of dependent premiums.
8    The Director shall annually determine monthly rates of
9payment, subject to the following constraints:
10        (1) In the first year of coverage, the rates shall be
11    equal to the amount normally charged to State employees for
12    elected optional coverages or for enrolled dependents
13    coverages or other contributory coverages, or contributed
14    by the State for basic insurance coverages on behalf of its
15    employees, adjusted for differences between State
16    employees and employees of the local government in age,
17    sex, geographic location or other relevant demographic
18    variables, plus an amount sufficient to pay for the
19    additional administrative costs of providing coverage to
20    employees of the unit of local government and their
21    dependents.
22        (2) In subsequent years, a further adjustment shall be
23    made to reflect the actual prior years' claims experience
24    of the employees of the unit of local government.
25    In the case of coverage of local government employees under
26a health maintenance organization, the Director shall annually

 

 

10000SB0011sam001- 36 -LRB100 06001 RPS 18183 a

1determine for each participating unit of local government the
2maximum monthly amount the unit may contribute toward that
3coverage, based on an analysis of (i) the age, sex, geographic
4location, and other relevant demographic variables of the
5unit's employees and (ii) the cost to cover those employees
6under the State group health benefits plan. The Director may
7similarly determine the maximum monthly amount each unit of
8local government may contribute toward coverage of its
9employees' dependents under a health maintenance organization.
10    Monthly payments by the unit of local government or its
11employees for group health benefits plan or health maintenance
12organization coverage shall be deposited in the Local
13Government Health Insurance Reserve Fund.
14    The Local Government Health Insurance Reserve Fund is
15hereby created as a nonappropriated trust fund to be held
16outside the State Treasury, with the State Treasurer as
17custodian. The Local Government Health Insurance Reserve Fund
18shall be a continuing fund not subject to fiscal year
19limitations. The Local Government Health Insurance Reserve
20Fund is not subject to administrative charges or charge-backs,
21including but not limited to those authorized under Section 8h
22of the State Finance Act. All revenues arising from the
23administration of the health benefits program established
24under this Section shall be deposited into the Local Government
25Health Insurance Reserve Fund. Any interest earned on moneys in
26the Local Government Health Insurance Reserve Fund shall be

 

 

10000SB0011sam001- 37 -LRB100 06001 RPS 18183 a

1deposited into the Fund. All expenditures from this Fund shall
2be used for payments for health care benefits for local
3government and rehabilitation facility employees, annuitants,
4and dependents, and to reimburse the Department or its
5administrative service organization for all expenses incurred
6in the administration of benefits. No other State funds may be
7used for these purposes.
8    A local government employer's participation or desire to
9participate in a program created under this subsection shall
10not limit that employer's duty to bargain with the
11representative of any collective bargaining unit of its
12employees.
13    (j) Any rehabilitation facility within the State of
14Illinois may apply to the Director to have its employees,
15annuitants, and their eligible dependents provided group
16health coverage under this Act on a non-insured basis. To
17participate, a rehabilitation facility must agree to enroll all
18of its employees and remit the entire cost of providing such
19coverage for its employees, except that the rehabilitation
20facility shall not be required to enroll those of its employees
21who are covered spouses or dependents under this plan or
22another group policy or plan providing health benefits as long
23as (1) an appropriate official from the rehabilitation facility
24attests that each employee not enrolled is a covered spouse or
25dependent under this plan or another group policy or plan, and
26(2) at least 50% of the employees are enrolled and the

 

 

10000SB0011sam001- 38 -LRB100 06001 RPS 18183 a

1rehabilitation facility remits the entire cost of providing
2coverage to those employees. Employees of a participating
3rehabilitation facility who are not enrolled due to coverage
4under another group health policy or plan may enroll in the
5event of a qualifying change in status, special enrollment,
6special circumstance as defined by the Director, or during the
7annual Benefit Choice Period. A participating rehabilitation
8facility may also elect to cover its annuitants. Dependent
9coverage shall be offered on an optional basis, with the costs
10paid by the rehabilitation facility, its employees, or some
11combination of the 2 as determined by the rehabilitation
12facility. The rehabilitation facility shall be responsible for
13timely collection and transmission of dependent premiums.
14    The Director shall annually determine quarterly rates of
15payment, subject to the following constraints:
16        (1) In the first year of coverage, the rates shall be
17    equal to the amount normally charged to State employees for
18    elected optional coverages or for enrolled dependents
19    coverages or other contributory coverages on behalf of its
20    employees, adjusted for differences between State
21    employees and employees of the rehabilitation facility in
22    age, sex, geographic location or other relevant
23    demographic variables, plus an amount sufficient to pay for
24    the additional administrative costs of providing coverage
25    to employees of the rehabilitation facility and their
26    dependents.

 

 

10000SB0011sam001- 39 -LRB100 06001 RPS 18183 a

1        (2) In subsequent years, a further adjustment shall be
2    made to reflect the actual prior years' claims experience
3    of the employees of the rehabilitation facility.
4    Monthly payments by the rehabilitation facility or its
5employees for group health benefits shall be deposited in the
6Local Government Health Insurance Reserve Fund.
7    (k) Any domestic violence shelter or service within the
8State of Illinois may apply to the Director to have its
9employees, annuitants, and their dependents provided group
10health coverage under this Act on a non-insured basis. To
11participate, a domestic violence shelter or service must agree
12to enroll all of its employees and pay the entire cost of
13providing such coverage for its employees. The domestic
14violence shelter shall not be required to enroll those of its
15employees who are covered spouses or dependents under this plan
16or another group policy or plan providing health benefits as
17long as (1) an appropriate official from the domestic violence
18shelter attests that each employee not enrolled is a covered
19spouse or dependent under this plan or another group policy or
20plan and (2) at least 50% of the employees are enrolled and the
21domestic violence shelter remits the entire cost of providing
22coverage to those employees. Employees of a participating
23domestic violence shelter who are not enrolled due to coverage
24under another group health policy or plan may enroll in the
25event of a qualifying change in status, special enrollment, or
26special circumstance as defined by the Director or during the

 

 

10000SB0011sam001- 40 -LRB100 06001 RPS 18183 a

1annual Benefit Choice Period. A participating domestic
2violence shelter may also elect to cover its annuitants.
3Dependent coverage shall be offered on an optional basis, with
4employees, or some combination of the 2 as determined by the
5domestic violence shelter or service. The domestic violence
6shelter or service shall be responsible for timely collection
7and transmission of dependent premiums.
8    The Director shall annually determine rates of payment,
9subject to the following constraints:
10        (1) In the first year of coverage, the rates shall be
11    equal to the amount normally charged to State employees for
12    elected optional coverages or for enrolled dependents
13    coverages or other contributory coverages on behalf of its
14    employees, adjusted for differences between State
15    employees and employees of the domestic violence shelter or
16    service in age, sex, geographic location or other relevant
17    demographic variables, plus an amount sufficient to pay for
18    the additional administrative costs of providing coverage
19    to employees of the domestic violence shelter or service
20    and their dependents.
21        (2) In subsequent years, a further adjustment shall be
22    made to reflect the actual prior years' claims experience
23    of the employees of the domestic violence shelter or
24    service.
25    Monthly payments by the domestic violence shelter or
26service or its employees for group health insurance shall be

 

 

10000SB0011sam001- 41 -LRB100 06001 RPS 18183 a

1deposited in the Local Government Health Insurance Reserve
2Fund.
3    (l) A public community college or entity organized pursuant
4to the Public Community College Act may apply to the Director
5initially to have only annuitants not covered prior to July 1,
61992 by the district's health plan provided health coverage
7under this Act on a non-insured basis. The community college
8must execute a 2-year contract to participate in the Local
9Government Health Plan. Any annuitant may enroll in the event
10of a qualifying change in status, special enrollment, special
11circumstance as defined by the Director, or during the annual
12Benefit Choice Period.
13    The Director shall annually determine monthly rates of
14payment subject to the following constraints: for those
15community colleges with annuitants only enrolled, first year
16rates shall be equal to the average cost to cover claims for a
17State member adjusted for demographics, Medicare
18participation, and other factors; and in the second year, a
19further adjustment of rates shall be made to reflect the actual
20first year's claims experience of the covered annuitants.
21    (l-5) The provisions of subsection (l) become inoperative
22on July 1, 1999.
23    (m) The Director shall adopt any rules deemed necessary for
24implementation of this amendatory Act of 1989 (Public Act
2586-978).
26    (n) Any child advocacy center within the State of Illinois

 

 

10000SB0011sam001- 42 -LRB100 06001 RPS 18183 a

1may apply to the Director to have its employees, annuitants,
2and their dependents provided group health coverage under this
3Act on a non-insured basis. To participate, a child advocacy
4center must agree to enroll all of its employees and pay the
5entire cost of providing coverage for its employees. The child
6advocacy center shall not be required to enroll those of its
7employees who are covered spouses or dependents under this plan
8or another group policy or plan providing health benefits as
9long as (1) an appropriate official from the child advocacy
10center attests that each employee not enrolled is a covered
11spouse or dependent under this plan or another group policy or
12plan and (2) at least 50% of the employees are enrolled and the
13child advocacy center remits the entire cost of providing
14coverage to those employees. Employees of a participating child
15advocacy center who are not enrolled due to coverage under
16another group health policy or plan may enroll in the event of
17a qualifying change in status, special enrollment, or special
18circumstance as defined by the Director or during the annual
19Benefit Choice Period. A participating child advocacy center
20may also elect to cover its annuitants. Dependent coverage
21shall be offered on an optional basis, with the costs paid by
22the child advocacy center, its employees, or some combination
23of the 2 as determined by the child advocacy center. The child
24advocacy center shall be responsible for timely collection and
25transmission of dependent premiums.
26    The Director shall annually determine rates of payment,

 

 

10000SB0011sam001- 43 -LRB100 06001 RPS 18183 a

1subject to the following constraints:
2        (1) In the first year of coverage, the rates shall be
3    equal to the amount normally charged to State employees for
4    elected optional coverages or for enrolled dependents
5    coverages or other contributory coverages on behalf of its
6    employees, adjusted for differences between State
7    employees and employees of the child advocacy center in
8    age, sex, geographic location, or other relevant
9    demographic variables, plus an amount sufficient to pay for
10    the additional administrative costs of providing coverage
11    to employees of the child advocacy center and their
12    dependents.
13        (2) In subsequent years, a further adjustment shall be
14    made to reflect the actual prior years' claims experience
15    of the employees of the child advocacy center.
16    Monthly payments by the child advocacy center or its
17employees for group health insurance shall be deposited into
18the Local Government Health Insurance Reserve Fund.
19(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
 
20    Section 15. The Civil Administrative Code of Illinois is
21amended by adding Section 5-647 as follows:
 
22    (20 ILCS 5/5-647 new)
23    Sec. 5-647. Future increases in income. A Department must
24not pay, offer, or agree to pay any future increase in income,

 

 

10000SB0011sam001- 44 -LRB100 06001 RPS 18183 a

1as that term is defined in Section 15-112.1 or 16-121.1 of the
2Illinois Pension Code, to any person in a manner that violates
3Section 15-132.9 or 16-122.9 of the Illinois Pension Code.
 
4    Section 20. The Illinois Pension Code is amended by
5changing Sections 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124,
62-126, 2-134, 2-162, 14-131, 14-135.08, 14-152.1, 15-108.1,
715-111, 15-136, 15-155, 15-157, 15-165, 15-198, 16-121,
816-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-119.2,
917-129, 17-130, 18-131, 18-140, 20-121, 20-123, 20-124, and
1020-125 and by adding Sections 2-105.3, 2-107.9, 2-110.3,
112-165.1, 2-166.1, 14-147.5, 15-112.1, 15-132.9, 15-185.5,
1215-200.1, 15-201.1, 16-107.1, 16-121.1, 16-122.9, 16-190.5,
1316-205.1, 16-206.1, 17-106.05, 17-113.4, 17-113.5, and
1417-115.5 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

 

 

10000SB0011sam001- 45 -LRB100 06001 RPS 18183 a

1Article is restricted to persons who became participants before
2the effective date of this amendatory Act of the 100th 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

 

 

10000SB0011sam001- 46 -LRB100 06001 RPS 18183 a

1System before the effective date of this amendatory Act of the
2100th 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 100th 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

 

 

10000SB0011sam001- 47 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 48 -LRB100 06001 RPS 18183 a

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 and survivor's annuity that are
23    otherwise provided for in this Article calculated,
24    instead, as provided in subsection (a-1) of Section
25    2-119.1; or

 

 

10000SB0011sam001- 49 -LRB100 06001 RPS 18183 a

1        (2) to not agree to paragraph (1) of this subsection.
2    The election required under this subsection (a) shall be
3made by each active Tier 1 employee no earlier than January 1,
42018 and no later than March 31, 2018, except that a person who
5returns to active service as a Tier 1 employee under this
6Article on or after January 1, 2018 and has not yet made an
7election under this Section must make the election under this
8subsection (a) within 60 days after returning to active service
9as a Tier 1 employee.
10    If a Tier 1 employee fails for any reason to make a
11required election under this subsection within the time
12specified, then the employee shall be deemed to have made the
13election under paragraph (2) of this subsection.
14    (a-5) If this Section is enjoined or stayed by an Illinois
15court or a court of competent jurisdiction pending the entry of
16a final and unappealable decision, and this Section is
17determined to be constitutional or otherwise valid by a final
18unappealable decision of an Illinois court or a court of
19competent jurisdiction, then the election procedure set forth
20in subsection (a) of this Section shall commence on the 180th
21calendar day after the date of the issuance of the final
22unappealable decision and shall conclude at the end of the
23270th calendar day after that date.
24    (a-10) All elections under subsection (a) that are made or
25deemed to be made before July 1, 2018 shall take effect on July
261, 2018. Elections that are made or deemed to be made on or

 

 

10000SB0011sam001- 50 -LRB100 06001 RPS 18183 a

1after July 1, 2018 shall take effect on the first day of the
2month following the month in which the election is made or
3deemed to be made.
4    (b) As adequate and legal consideration provided under this
5amendatory Act of the 100th General Assembly for making an
6election under paragraph (1) of subsection (a) of this Section,
7the State of Illinois shall be expressly and irrevocably
8prohibited from offering any future increases in income to a
9Tier 1 employee who has made an election under paragraph (1) of
10subsection (a) of this Section on the condition of not
11constituting salary under Section 2-108.
12    As adequate and legal consideration provided under this
13amendatory Act of the 100th General Assembly for making an
14election under paragraph (1) of subsection (a) of this Section,
15each Tier 1 employee who has made an election under paragraph
16(1) of subsection (a) of this Section shall receive a
17consideration payment equal to 10% of the contributions made by
18or on behalf of the employee under Section 2-126 before the
19effective date of that election. The State Comptroller shall
20pay the consideration payment to the Tier 1 employee out of
21funds appropriated for that purpose under Section 1.9 of the
22State Pension Funds Continuing Appropriation Act. The System
23shall calculate the amount of each consideration payment and
24shall certify to the State Comptroller the amount of the
25consideration payment, together with the name, address, and any
26other available payment information of the Tier 1 employee as

 

 

10000SB0011sam001- 51 -LRB100 06001 RPS 18183 a

1found in the records of the System.
2    (c) A Tier 1 employee who makes the election under
3paragraph (2) of subsection (a) of this Section shall not be
4subject to paragraph (1) of subsection (a) of this Section.
5However, each future increase in income offered for service as
6a member under this Article to a Tier 1 employee who has made
7the election under paragraph (2) of subsection (a) of this
8Section shall be offered expressly and irrevocably on the
9condition of not constituting salary under Section 2-108 and
10that the Tier 1 employee's acceptance of the offered future
11increase in income shall constitute his or her agreement to
12that condition.
13    (d) The System shall make a good faith effort to contact
14each Tier 1 employee subject to this Section. The System shall
15mail information describing the required election to each Tier
161 employee by United States Postal Service mail to his or her
17last known address on file with the System. If the Tier 1
18employee is not responsive to other means of contact, it is
19sufficient for the System to publish the details of any
20required elections on its website or to publish those details
21in a regularly published newsletter or other existing public
22forum.
23    Tier 1 employees who are subject to this Section shall be
24provided with an election packet containing information
25regarding their options, as well as the forms necessary to make
26the required election. Upon request, the System shall offer

 

 

10000SB0011sam001- 52 -LRB100 06001 RPS 18183 a

1Tier 1 employees an opportunity to receive information from the
2System before making the required election. The information may
3be provided through video materials, group presentations,
4individual consultation with a member or authorized
5representative of the System in person or by telephone or other
6electronic means, or any combination of those methods. The
7System shall not provide advice or counseling with respect to
8which election a Tier 1 employee should make or specific to the
9legal or tax circumstances of or consequences to the Tier 1
10employee.
11    The System shall inform Tier 1 employees in the election
12packet required under this subsection that the Tier 1 employee
13may also wish to obtain information and counsel relating to the
14election required under this Section from any other available
15source, including, but not limited to, labor organizations and
16private counsel.
17    In no event shall the System, its staff, or the Board be
18held liable for any information given to a member regarding the
19elections under this Section. The System shall coordinate with
20the Illinois Department of Central Management Services and each
21other retirement system administering an election in
22accordance with this amendatory Act of the 100th General
23Assembly to provide information concerning the impact of the
24election set forth in this Section.
25    (e) Notwithstanding any other provision of law, each future
26increase in income offered by the State of Illinois for service

 

 

10000SB0011sam001- 53 -LRB100 06001 RPS 18183 a

1as a member must be offered expressly and irrevocably on the
2condition of not constituting "salary" under Section 2-108 to
3any Tier 1 employee who has made an election under paragraph
4(2) of subsection (a) of this Section. The offer shall also
5provide that the Tier 1 employee's acceptance of the offered
6future increase in income shall constitute his or her agreement
7to the condition set forth in this subsection.
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

 

 

10000SB0011sam001- 54 -LRB100 06001 RPS 18183 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

 

 

10000SB0011sam001- 55 -LRB100 06001 RPS 18183 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 or survivor's annuity occurring on or
6    after the effective date of that election shall be
7    calculated as a percentage of the originally granted
8    retirement annuity or survivor's annuity, equal to 3% or
9    one-half the annual unadjusted percentage increase (but
10    not less than zero) in the consumer price index-u for the
11    12 months ending with the September preceding each November
12    1, whichever is less. If the annual unadjusted percentage
13    change in the consumer price index-u for the 12 months
14    ending with the September preceding each November 1 is zero
15    or there is a decrease, then the annuity shall not be
16    increased.
17    For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the average
20change in prices of goods and services purchased by all urban
21consumers, United States city average, all items, 1982-84 =
22100. The new amount resulting from each annual adjustment shall
23be determined by the Public Pension Division of the Department
24of Insurance and made available to the board of the retirement
25system by November 1 of each year.
26    (b) Beginning January 1, 1990, for eligible participants

 

 

10000SB0011sam001- 56 -LRB100 06001 RPS 18183 a

1who remain in service after attaining 20 years of creditable
2service, the 3% increases provided under subsection (a) shall
3begin to accrue on the January 1 next following the date upon
4which the participant (1) attains age 55, or (2) attains 20
5years of creditable service, whichever occurs later, and shall
6continue to accrue while the participant remains in service;
7such increases shall become payable on January 1 or July 1,
8whichever occurs first, next following the first anniversary of
9retirement. For any person who has service credit in the System
10for the entire period from January 15, 1969 through December
1131, 1992, regardless of the date of termination of service, the
12reference to age 55 in clause (1) of this subsection (b) shall
13be deemed to mean age 50.
14    This subsection (b) does not apply to any person who first
15becomes a member of the System after August 8, 2003 (the
16effective date of Public Act 93-494) this amendatory Act of the
1793rd General Assembly.
18    (b-5) Notwithstanding any other provision of this Article,
19a participant who first becomes a participant on or after
20January 1, 2011 (the effective date of Public Act 96-889)
21shall, in January or July next following the first anniversary
22of retirement, whichever occurs first, and in the same month of
23each year thereafter, but in no event prior to age 67, have the
24amount of the retirement annuity then being paid increased by
253% or the annual unadjusted percentage increase in the Consumer
26Price Index for All Urban Consumers as determined by the Public

 

 

10000SB0011sam001- 57 -LRB100 06001 RPS 18183 a

1Pension Division of the Department of Insurance under
2subsection (a) of Section 2-108.1, whichever is less.
3    (c) The foregoing provisions relating to automatic
4increases are not applicable to a participant who retires
5before having made contributions (at the rate prescribed in
6Section 2-126) for automatic increases for less than the
7equivalent of one full year. However, in order to be eligible
8for the automatic increases, such a participant may make
9arrangements to pay to the system the amount required to bring
10the total contributions for the automatic increase to the
11equivalent of one year's contributions based upon his or her
12last salary.
13    (d) A participant who terminated service prior to July 1,
141967, with at least 14 years of service is entitled to an
15increase in retirement annuity beginning January, 1976, and to
16additional increases in January of each year thereafter.
17    The initial increase shall be 1 1/2% of the originally
18granted retirement annuity multiplied by the number of full
19years that the annuitant was in receipt of such annuity prior
20to January 1, 1972, plus 2% of the originally granted
21retirement annuity for each year after that date. The
22subsequent annual increases shall be at the rate of 2% of the
23originally granted retirement annuity for each year through
241979 and at the rate of 3% for 1980 and thereafter.
25    (e) Beginning January 1, 1990, and except as provided in
26subsection (a-1), all automatic annual increases payable under

 

 

10000SB0011sam001- 58 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 59 -LRB100 06001 RPS 18183 a

1State fiscal year 2045. In making these determinations, the
2required State contribution shall be calculated each year as a
3level percentage of total payroll, including payroll that is
4not deemed pensionable, but excluding payroll attributable to
5participants in the defined contribution plan under Section
62-165.1, over the years remaining to and including fiscal year
72045 and shall be determined under the projected unit credit
8actuarial cost method.
9    For State fiscal year 2019:
10        (1) The initial calculation and certification shall be
11    based on the amount determined above.
12        (2) For purposes of the recertification due on or
13    before May 1, 2018, the recalculation of the required State
14    contribution for fiscal year 2019 shall take into account
15    the effect on the System's liabilities of the elections
16    made under Section 2-110.3.
17        (3) For purposes of the recertification due on or
18    before October 1, 2018, the total required State
19    contribution for fiscal year 2019 shall be reduced by the
20    amount of the consideration payments made to Tier 1
21    employees who made the election under paragraph (1) of
22    subsection (a) of Section 2-110.3.
23    Beginning in State fiscal year 2018, any increase or
24decrease in State contribution over the prior fiscal year due
25exclusively to changes in actuarial or investment assumptions
26adopted by the Board shall be included in the State

 

 

10000SB0011sam001- 60 -LRB100 06001 RPS 18183 a

1contribution to the System, as a percentage of the applicable
2employee payroll, and shall be increased in equal annual
3increments so that by the State fiscal year occurring 5 years
4after the adoption of the actuarial or investment assumptions,
5the State is contributing at the rate otherwise required under
6this Section.
7    If Section 2-110.3 is determined to be unconstitutional or
8otherwise invalid by a final unappealable decision of an
9Illinois court or a court of competent jurisdiction, then the
10changes made to this Section by this amendatory Act of the
11100th General Assembly shall not take effect and are repealed
12by operation of law.
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

 

 

10000SB0011sam001- 61 -LRB100 06001 RPS 18183 a

1the rate required under this Section.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2006 is
4$4,157,000.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2007 is
7$5,220,300.
8    For each of State fiscal years 2008 through 2009, the State
9contribution to the System, as a percentage of the applicable
10employee payroll, shall be increased in equal annual increments
11from the required State contribution for State fiscal year
122007, so that by State fiscal year 2011, the State is
13contributing at the rate otherwise required under this Section.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2010 is
16$10,454,000 and shall be made from the proceeds of bonds sold
17in fiscal year 2010 pursuant to Section 7.2 of the General
18Obligation Bond Act, less (i) the pro rata share of bond sale
19expenses determined by the System's share of total bond
20proceeds, (ii) any amounts received from the General Revenue
21Fund in fiscal year 2010, and (iii) any reduction in bond
22proceeds due to the issuance of discounted bonds, if
23applicable.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2011 is
26the amount recertified by the System on or before April 1, 2011

 

 

10000SB0011sam001- 62 -LRB100 06001 RPS 18183 a

1pursuant to Section 2-134 and shall be made from the proceeds
2of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
3the General Obligation Bond Act, less (i) the pro rata share of
4bond sale expenses determined by the System's share of total
5bond proceeds, (ii) any amounts received from the General
6Revenue Fund in fiscal year 2011, and (iii) any reduction in
7bond proceeds due to the issuance of discounted bonds, if
8applicable.
9    Beginning in State fiscal year 2046, the minimum State
10contribution for each fiscal year shall be the amount needed to
11maintain the total assets of the System at 90% of the total
12actuarial liabilities of the System.
13    Amounts received by the System pursuant to Section 25 of
14the Budget Stabilization Act or Section 8.12 of the State
15Finance Act in any fiscal year do not reduce and do not
16constitute payment of any portion of the minimum State
17contribution required under this Article in that fiscal year.
18Such amounts shall not reduce, and shall not be included in the
19calculation of, the required State contributions under this
20Article in any future year until the System has reached a
21funding ratio of at least 90%. A reference in this Article to
22the "required State contribution" or any substantially similar
23term does not include or apply to any amounts payable to the
24System under Section 25 of the Budget Stabilization Act.
25    Notwithstanding any other provision of this Section, the
26required State contribution for State fiscal year 2005 and for

 

 

10000SB0011sam001- 63 -LRB100 06001 RPS 18183 a

1fiscal year 2008 and each fiscal year thereafter, as calculated
2under this Section and certified under Section 2-134, shall not
3exceed an amount equal to (i) the amount of the required State
4contribution that would have been calculated under this Section
5for that fiscal year if the System had not received any
6payments under subsection (d) of Section 7.2 of the General
7Obligation Bond Act, minus (ii) the portion of the State's
8total debt service payments for that fiscal year on the bonds
9issued in fiscal year 2003 for the purposes of that Section
107.2, as determined and certified by the Comptroller, that is
11the same as the System's portion of the total moneys
12distributed under subsection (d) of Section 7.2 of the General
13Obligation Bond Act. In determining this maximum for State
14fiscal years 2008 through 2010, however, the amount referred to
15in item (i) shall be increased, as a percentage of the
16applicable employee payroll, in equal increments calculated
17from the sum of the required State contribution for State
18fiscal year 2007 plus the applicable portion of the State's
19total debt service payments for fiscal year 2007 on the bonds
20issued in fiscal year 2003 for the purposes of Section 7.2 of
21the General Obligation Bond Act, so that, by State fiscal year
222011, the State is contributing at the rate otherwise required
23under this Section.
24    (d) For purposes of determining the required State
25contribution to the System, the value of the System's assets
26shall be equal to the actuarial value of the System's assets,

 

 

10000SB0011sam001- 64 -LRB100 06001 RPS 18183 a

1which shall be calculated as follows:
2    As of June 30, 2008, the actuarial value of the System's
3assets shall be equal to the market value of the assets as of
4that date. In determining the actuarial value of the System's
5assets for fiscal years after June 30, 2008, any actuarial
6gains or losses from investment return incurred in a fiscal
7year shall be recognized in equal annual amounts over the
85-year period following that fiscal year.
9    (e) For purposes of determining the required State
10contribution to the system for a particular year, the actuarial
11value of assets shall be assumed to earn a rate of return equal
12to the system's actuarially assumed rate of return.
13(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1496-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
157-13-12.)
 
16    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
17    (Text of Section WITHOUT the changes made by P.A. 98-599,
18which has been held unconstitutional)
19    Sec. 2-126. Contributions by participants.
20    (a) Each participant shall contribute toward the cost of
21his or her retirement annuity a percentage of each payment of
22salary received by him or her for service as a member as
23follows: for service between October 31, 1947 and January 1,
241959, 5%; for service between January 1, 1959 and June 30,
251969, 6%; for service between July 1, 1969 and January 10,

 

 

10000SB0011sam001- 65 -LRB100 06001 RPS 18183 a

11973, 6 1/2%; for service after January 10, 1973, 7%; for
2service after December 31, 1981, 8 1/2%.
3    (b) Beginning August 2, 1949, each male participant, and
4from July 1, 1971, each female participant shall contribute
5towards the cost of the survivor's annuity 2% of salary.
6    A participant who has no eligible survivor's annuity
7beneficiary may elect to cease making contributions for
8survivor's annuity under this subsection. A survivor's annuity
9shall not be payable upon the death of a person who has made
10this election, unless prior to that death the election has been
11revoked and the amount of the contributions that would have
12been paid under this subsection in the absence of the election
13is paid to the System, together with interest at the rate of 4%
14per year from the date the contributions would have been made
15to the date of payment.
16    (c) Beginning July 1, 1967, each participant shall
17contribute 1% of salary towards the cost of automatic increase
18in annuity provided in Section 2-119.1. These contributions
19shall be made concurrently with contributions for retirement
20annuity purposes.
21    (d) In addition, each participant serving as an officer of
22the General Assembly shall contribute, for the same purposes
23and at the same rates as are required of a regular participant,
24on each additional payment received as an officer. If the
25participant serves as an officer for at least 2 but less than 4
26years, he or she shall contribute an amount equal to the amount

 

 

10000SB0011sam001- 66 -LRB100 06001 RPS 18183 a

1that would have been contributed had the participant served as
2an officer for 4 years. Persons who serve as officers in the
387th General Assembly but cannot receive the additional payment
4to officers because of the ban on increases in salary during
5their terms may nonetheless make contributions based on those
6additional payments for the purpose of having the additional
7payments included in their highest salary for annuity purposes;
8however, persons electing to make these additional
9contributions must also pay an amount representing the
10corresponding employer contributions, as calculated by the
11System.
12    (e) Notwithstanding any other provision of this Article,
13the required contribution of a participant who first becomes a
14participant on or after January 1, 2011 shall not exceed the
15contribution that would be due under this Article if that
16participant's highest salary for annuity purposes were
17$106,800, plus any increases in that amount under Section
182-108.1.
19    (f) Beginning July 1, 2018 or the effective date of the
20Tier 1 employee's election under paragraph (1) of subsection
21(a) of Section 2-110.3, whichever is later, in lieu of the
22contributions otherwise required under this Section, each Tier
231 employee who made the election under paragraph (1) of
24subsection (a) of Section 2-110.3 shall contribute 8.5% of each
25payment of salary toward the cost of his or her retirement
26annuity and 1.85% of each payment of salary toward the cost of

 

 

10000SB0011sam001- 67 -LRB100 06001 RPS 18183 a

1the survivor's annuity.
2    (g) Notwithstanding subsection (f) of this Section,
3beginning July 1, 2018 or the effective date of the Tier 1
4employee's election under paragraph (1) of subsection (a) of
5Section 2-110.3, whichever is later, in lieu of the
6contributions otherwise required under this Section, each Tier
71 employee who made the election under paragraph (1) of
8subsection (a) of Section 2-110.3 and has elected to cease
9making contributions for survivor's annuity under subsection
10(b) of this Section, shall contribute 8.55% of each payment of
11salary toward the cost of his or her retirement annuity.
12(Source: P.A. 96-1490, eff. 1-1-11.)
 
13    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
14    (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16    Sec. 2-134. To certify required State contributions and
17submit vouchers.
18    (a) The Board shall certify to the Governor on or before
19December 15 of each year until December 15, 2011 the amount of
20the required State contribution to the System for the next
21fiscal year and shall specifically identify the System's
22projected State normal cost for that fiscal year. The
23certification shall include a copy of the actuarial
24recommendations upon which it is based and shall specifically
25identify the System's projected State normal cost for that

 

 

10000SB0011sam001- 68 -LRB100 06001 RPS 18183 a

1fiscal year.
2    On or before November 1 of each year, beginning November 1,
32012, the Board shall submit to the State Actuary, the
4Governor, and the General Assembly a proposed certification of
5the amount of the required State contribution to the System for
6the 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 every 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 any deviations from
18the State Actuary's recommended changes, the reason or reasons
19for not following the State Actuary's recommended changes, and
20the fiscal impact of not following the State Actuary's
21recommended changes on the required State contribution.
22    On or before May 1, 2004, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2005, taking
25into account the amounts appropriated to and received by the
26System under subsection (d) of Section 7.2 of the General

 

 

10000SB0011sam001- 69 -LRB100 06001 RPS 18183 a

1Obligation Bond Act.
2    On or before July 1, 2005, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2006, taking
5into account the changes in required State contributions made
6by this amendatory Act of the 94th General Assembly.
7    On or before April 1, 2011, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2011, applying
10the changes made by Public Act 96-889 to the System's assets
11and liabilities as of June 30, 2009 as though Public Act 96-889
12was approved on that date.
13    As soon as practical after the effective date of this
14amendatory Act of the 100th General Assembly, the State Actuary
15and the Board shall recalculate and recertify to the Governor
16and the General Assembly the amount of the State contribution
17to the System for State fiscal year 2018, taking into account
18the changes in required State contributions made by this
19amendatory Act of the 100th General Assembly.
20    On or before May 1, 2018, the Board shall recalculate and
21recertify to the Governor and the General Assembly the amount
22of the required State contribution to the System for State
23fiscal year 2019, taking into account the effect on the
24System's liabilities of the elections made under Section
252-110.3.
26    On or before October 1, 2018, the Board shall recalculate

 

 

10000SB0011sam001- 70 -LRB100 06001 RPS 18183 a

1and recertify to the Governor and the General Assembly the
2amount of the required State contribution to the System for
3State fiscal year 2019, taking into account the reduction
4specified under item (3) of subsection (c) of Section 2-124.
5    (b) Beginning in State fiscal year 1996, on or as soon as
6possible after the 15th day of each month the Board shall
7submit vouchers for payment of State contributions to the
8System, in a total monthly amount of one-twelfth of the
9required annual State contribution certified under subsection
10(a). From the effective date of this amendatory Act of the 93rd
11General Assembly through June 30, 2004, the Board shall not
12submit vouchers for the remainder of fiscal year 2004 in excess
13of the fiscal year 2004 certified contribution amount
14determined under this Section after taking into consideration
15the transfer to the System under subsection (d) of Section
166z-61 of the State Finance Act. These vouchers shall be paid by
17the State Comptroller and Treasurer by warrants drawn on the
18funds appropriated to the System for that fiscal year. If in
19any month the amount remaining unexpended from all other
20appropriations to the System for the applicable fiscal year
21(including the appropriations to the System under Section 8.12
22of the State Finance Act and Section 1 of the State Pension
23Funds Continuing Appropriation Act) is less than the amount
24lawfully vouchered under this Section, the difference shall be
25paid from the General Revenue Fund under the continuing
26appropriation authority provided in Section 1.1 of the State

 

 

10000SB0011sam001- 71 -LRB100 06001 RPS 18183 a

1Pension Funds Continuing Appropriation Act.
2    (c) The full amount of any annual appropriation for the
3System for State fiscal year 1995 shall be transferred and made
4available to the System at the beginning of that fiscal year at
5the request of the Board. Any excess funds remaining at the end
6of any fiscal year from appropriations shall be retained by the
7System as a general reserve to meet the System's accrued
8liabilities.
9(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1097-694, eff. 6-18-12.)
 
11    (40 ILCS 5/2-162)
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 2-162. 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 100th General Assembly.
25    (b) Notwithstanding any other provision of this Code or any

 

 

10000SB0011sam001- 72 -LRB100 06001 RPS 18183 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 Insurance Financial and Professional Regulation.
16A new benefit increase created by a Public Act that does not
17include the additional funding required under this subsection
18is null and void. If the Public Pension Division determines
19that the additional funding provided for a new benefit increase
20under this subsection is or has become inadequate, it may so
21certify to the Governor and the State Comptroller and, in the
22absence of corrective action by the General Assembly, the new
23benefit increase shall expire at the end of the fiscal year in
24which the 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

 

 

10000SB0011sam001- 73 -LRB100 06001 RPS 18183 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 5/2-165.1 new)
17    Sec. 2-165.1. 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

 

 

10000SB0011sam001- 74 -LRB100 06001 RPS 18183 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.
14        (2) Participants in the defined contribution plan
15    shall pay employee contributions at the same rate as Tier 1
16    employees in this System who do not participate in the
17    defined contribution plan.
18        (3) State contributions shall be paid into the accounts
19    of all participants in the defined contribution plan at a
20    uniform rate, expressed as a percentage of compensation and
21    determined for each year. This rate shall be no higher than
22    the employer's normal cost for Tier 1 employees in the
23    defined benefit plan for that year, as determined by the
24    System and expressed as a percentage of compensation, and
25    shall be no lower than 3% of compensation. The State shall
26    adjust this rate annually.

 

 

10000SB0011sam001- 75 -LRB100 06001 RPS 18183 a

1        (4) The defined contribution plan shall require 5 years
2    of participation in the defined contribution plan before
3    vesting in State contributions. If the participant fails to
4    vest in them, the State contributions, and the earnings
5    thereon, shall be forfeited.
6        (5) The defined contribution plan may provide for
7    participants in the plan to be eligible for defined
8    disability benefits. If it does, the System shall reduce
9    the employee contributions credited to the participant's
10    defined contribution plan account by an amount determined
11    by the System to cover the cost of offering such benefits.
12        (6) The defined contribution plan shall provide a
13    variety of options for investments. These options shall
14    include investments handled by the Illinois State Board of
15    Investment as well as private sector investment options.
16        (7) The defined contribution plan shall provide a
17    variety of options for payouts to retirees and their
18    survivors.
19        (8) To the extent authorized under federal law and as
20    authorized by the System, the plan shall allow former
21    participants in the plan to transfer or roll over employee
22    and vested State contributions, and the earnings thereon,
23    into other qualified retirement plans.
24        (9) The System shall reduce the employee contributions
25    credited to the participant's defined contribution plan
26    account by an amount determined by the System to cover the

 

 

10000SB0011sam001- 76 -LRB100 06001 RPS 18183 a

1    cost of offering these benefits and any applicable
2    administrative fees.
3    (b) Only persons who are active Tier 1 employees of the
4System on the effective date of this Section are eligible to
5participate in the defined contribution plan. Participation in
6the defined contribution plan shall be limited to the first 5%
7of eligible persons who elect to participate. The election to
8participate in the defined contribution plan is voluntary and
9irrevocable.
10    (c) An eligible active Tier 1 employee may irrevocably
11elect to participate in the defined contribution plan by filing
12with the System a written application to participate that is
13received by the System prior to its determination that 5% of
14eligible persons have elected to participate in the defined
15contribution plan.
16    When the System first determines that 5% of eligible
17persons have elected to participate in the defined contribution
18plan, the System shall provide notice to previously eligible
19employees that the plan is no longer available and shall cease
20accepting applications to participate.
21    (d) The System shall make a good faith effort to contact
22each active Tier 1 employee who is eligible to participate in
23the defined contribution plan. The System shall mail
24information describing the option to join the defined
25contribution plan to each of these employees to his or her last
26known address on file with the System. If the employee is not

 

 

10000SB0011sam001- 77 -LRB100 06001 RPS 18183 a

1responsive to other means of contact, it is sufficient for the
2System to publish the details of the option on its website.
3    Upon request for further information describing the
4option, the System shall provide employees with information
5from the System before exercising the option to join the plan,
6including information on the impact to their vested benefits or
7non-vested service. The individual consultation shall include
8projections of the participant's defined benefits at
9retirement or earlier termination of service and the value of
10the participant's account at retirement or earlier termination
11of service. The System shall not provide advice or counseling
12with respect to whether the employee should exercise the
13option. The System shall inform Tier 1 employees who are
14eligible to participate in the defined contribution plan that
15they may also wish to obtain information and counsel relating
16to their option from any other available source, including but
17not limited to labor organizations, private counsel, and
18financial advisors.
19    (e) In no event shall the System, its staff, its authorized
20representatives, or the Board be liable for any information
21given to an employee under this Section. The System may
22coordinate with the Illinois Department of Central Management
23Services and other retirement systems administering a defined
24contribution plan in accordance with this amendatory Act of the
25100th General Assembly to provide information concerning the
26impact of the option set forth in this Section.

 

 

10000SB0011sam001- 78 -LRB100 06001 RPS 18183 a

1    (f) Notwithstanding any other provision of this Section, no
2person shall begin participating in the defined contribution
3plan until it has attained qualified plan status and received
4all necessary approvals from the U.S. Internal Revenue Service.
5    (g) The System shall report on its progress under this
6Section, including the available details of the defined
7contribution plan and the System's plans for informing eligible
8Tier 1 employees about the plan, to the Governor and the
9General Assembly on or before January 15, 2018.
10    (h) The Illinois State Board of Investments shall be the
11plan sponsor for the defined contribution plan established
12under this Section.
13    (i) The intent of this amendatory Act of the 100th General
14Assembly is to ensure that the State's normal cost of
15participation in the defined contribution plan is similar, and
16if possible equal, to the State's normal cost of participation
17in the defined benefit plan, unless a lower State's normal cost
18is necessary to ensure cost neutrality.
19    (j) If Section 2-110.3 is determined to be unconstitutional
20or otherwise invalid by a final unappealable decision of an
21Illinois court or a court of competent jurisdiction, then this
22Section shall not take effect and is repealed by operation of
23law.
 
24    (40 ILCS 5/2-166.1 new)
25    Sec. 2-166.1. Defined contribution plan; termination. If

 

 

10000SB0011sam001- 79 -LRB100 06001 RPS 18183 a

1the defined contribution plan is terminated or becomes
2inoperative pursuant to law, then each participant in the plan
3shall automatically be deemed to have been a contributing Tier
41 employee in the System's defined benefit plan during the time
5in which he or she participated in the defined contribution
6plan, and for that purpose the System shall be entitled to
7recover the amounts in the participant's defined contribution
8accounts.
 
9    (40 ILCS 5/14-131)
10    Sec. 14-131. Contributions by State.
11    (a) The State shall make contributions to the System by
12appropriations of amounts which, together with other employer
13contributions from trust, federal, and other funds, employee
14contributions, investment income, and other income, will be
15sufficient to meet the cost of maintaining and administering
16the System on a 90% funded basis in accordance with actuarial
17recommendations.
18    For the purposes of this Section and Section 14-135.08,
19references to State contributions refer only to employer
20contributions and do not include employee contributions that
21are picked up or otherwise paid by the State or a department on
22behalf of the employee.
23    (b) The Board shall determine the total amount of State
24contributions required for each fiscal year on the basis of the
25actuarial tables and other assumptions adopted by the Board,

 

 

10000SB0011sam001- 80 -LRB100 06001 RPS 18183 a

1using the formula in subsection (e).
2    The Board shall also determine a State contribution rate
3for each fiscal year, expressed as a percentage of payroll,
4based on the total required State contribution for that fiscal
5year (less the amount received by the System from
6appropriations under Section 8.12 of the State Finance Act and
7Section 1 of the State Pension Funds Continuing Appropriation
8Act, if any, for the fiscal year ending on the June 30
9immediately preceding the applicable November 15 certification
10deadline), the estimated payroll (including all forms of
11compensation) for personal services rendered by eligible
12employees, and the recommendations of the actuary.
13    For the purposes of this Section and Section 14.1 of the
14State Finance Act, the term "eligible employees" includes
15employees who participate in the System, persons who may elect
16to participate in the System but have not so elected, persons
17who are serving a qualifying period that is required for
18participation, and annuitants employed by a department as
19described in subdivision (a)(1) or (a)(2) of Section 14-111.
20    (c) Contributions shall be made by the several departments
21for each pay period by warrants drawn by the State Comptroller
22against their respective funds or appropriations based upon
23vouchers stating the amount to be so contributed. These amounts
24shall be based on the full rate certified by the Board under
25Section 14-135.08 for that fiscal year. From the effective date
26of this amendatory Act of the 93rd General Assembly through the

 

 

10000SB0011sam001- 81 -LRB100 06001 RPS 18183 a

1payment of the final payroll from fiscal year 2004
2appropriations, the several departments shall not make
3contributions for the remainder of fiscal year 2004 but shall
4instead make payments as required under subsection (a-1) of
5Section 14.1 of the State Finance Act. The several departments
6shall resume those contributions at the commencement of fiscal
7year 2005.
8    (c-1) Notwithstanding subsection (c) of this Section, for
9fiscal years 2010, 2012, 2013, 2014, 2015, 2016, and 2017 only,
10contributions by the several departments are not required to be
11made for General Revenue Funds payrolls processed by the
12Comptroller. Payrolls paid by the several departments from all
13other State funds must continue to be processed pursuant to
14subsection (c) of this Section.
15    (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015,
162016, and 2017 only, on or as soon as possible after the 15th
17day of each month, the Board shall submit vouchers for payment
18of State contributions to the System, in a total monthly amount
19of one-twelfth of the fiscal year General Revenue Fund
20contribution as certified by the System pursuant to Section
2114-135.08 of the Illinois Pension Code.
22    (d) If an employee is paid from trust funds or federal
23funds, the department or other employer shall pay employer
24contributions from those funds to the System at the certified
25rate, unless the terms of the trust or the federal-State
26agreement preclude the use of the funds for that purpose, in

 

 

10000SB0011sam001- 82 -LRB100 06001 RPS 18183 a

1which case the required employer contributions shall be paid by
2the State. From the effective date of this amendatory Act of
3the 93rd General Assembly through the payment of the final
4payroll from fiscal year 2004 appropriations, the department or
5other employer shall not pay contributions for the remainder of
6fiscal year 2004 but shall instead make payments as required
7under subsection (a-1) of Section 14.1 of the State Finance
8Act. The department or other employer shall resume payment of
9contributions at the commencement of fiscal year 2005.
10    (e) For State fiscal years 2018 through 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    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

 

 

10000SB0011sam001- 83 -LRB100 06001 RPS 18183 a

1after the adoption of the actuarial or investment assumptions,
2the State is contributing at the rate otherwise required under
3this Section.
4    For State fiscal years 2012 through 2017 2045, 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 payroll over the years remaining to and
12including fiscal year 2045 and shall be determined under the
13projected unit credit actuarial cost method.
14    For State fiscal years 1996 through 2005, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17so that by State fiscal year 2011, the State is contributing at
18the rate required under this Section; except that (i) for State
19fiscal year 1998, for all purposes of this Code and any other
20law of this State, the certified percentage of the applicable
21employee payroll shall be 5.052% for employees earning eligible
22creditable service under Section 14-110 and 6.500% for all
23other employees, notwithstanding any contrary certification
24made under Section 14-135.08 before the effective date of this
25amendatory Act of 1997, and (ii) in the following specified
26State fiscal years, the State contribution to the System shall

 

 

10000SB0011sam001- 84 -LRB100 06001 RPS 18183 a

1not be less than the following indicated percentages of the
2applicable employee payroll, even if the indicated percentage
3will produce a State contribution in excess of the amount
4otherwise required under this subsection and subsection (a):
59.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
62002; 10.6% in FY 2003; and 10.8% in FY 2004.
7    Notwithstanding any other provision of this Article, the
8total required State contribution to the System for State
9fiscal year 2006 is $203,783,900.
10    Notwithstanding any other provision of this Article, the
11total required State contribution to the System for State
12fiscal year 2007 is $344,164,400.
13    For each of State fiscal years 2008 through 2009, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16from the required State contribution for State fiscal year
172007, so that by State fiscal year 2011, the State is
18contributing at the rate otherwise required under this Section.
19    Notwithstanding any other provision of this Article, the
20total required State General Revenue Fund contribution for
21State fiscal year 2010 is $723,703,100 and shall be made from
22the proceeds of bonds sold in fiscal year 2010 pursuant to
23Section 7.2 of the General Obligation Bond Act, less (i) the
24pro rata share of bond sale expenses determined by the System's
25share of total bond proceeds, (ii) any amounts received from
26the General Revenue Fund in fiscal year 2010, and (iii) any

 

 

10000SB0011sam001- 85 -LRB100 06001 RPS 18183 a

1reduction in bond proceeds due to the issuance of discounted
2bonds, if applicable.
3    Notwithstanding any other provision of this Article, the
4total required State General Revenue Fund contribution for
5State fiscal year 2011 is the amount recertified by the System
6on or before April 1, 2011 pursuant to Section 14-135.08 and
7shall be made from the proceeds of bonds sold in fiscal year
82011 pursuant to Section 7.2 of the General Obligation Bond
9Act, less (i) the pro rata share of bond sale expenses
10determined by the System's share of total bond proceeds, (ii)
11any amounts received from the General Revenue Fund in fiscal
12year 2011, and (iii) any reduction in bond proceeds due to the
13issuance of discounted bonds, if applicable.
14    Beginning in State fiscal year 2046, the minimum State
15contribution for each fiscal year shall be the amount needed to
16maintain the total assets of the System at 90% of the total
17actuarial liabilities of the System.
18    Amounts received by the System pursuant to Section 25 of
19the Budget Stabilization Act or Section 8.12 of the State
20Finance Act in any fiscal year do not reduce and do not
21constitute payment of any portion of the minimum State
22contribution required under this Article in that fiscal year.
23Such amounts shall not reduce, and shall not be included in the
24calculation of, the required State contributions under this
25Article in any future year until the System has reached a
26funding ratio of at least 90%. A reference in this Article to

 

 

10000SB0011sam001- 86 -LRB100 06001 RPS 18183 a

1the "required State contribution" or any substantially similar
2term does not include or apply to any amounts payable to the
3System under Section 25 of the Budget Stabilization Act.
4    Notwithstanding any other provision of this Section, the
5required State contribution for State fiscal year 2005 and for
6fiscal year 2008 and each fiscal year thereafter, as calculated
7under this Section and certified under Section 14-135.08, shall
8not exceed an amount equal to (i) the amount of the required
9State contribution that would have been calculated under this
10Section for that fiscal year if the System had not received any
11payments under subsection (d) of Section 7.2 of the General
12Obligation Bond Act, minus (ii) the portion of the State's
13total debt service payments for that fiscal year on the bonds
14issued in fiscal year 2003 for the purposes of that Section
157.2, as determined and certified by the Comptroller, that is
16the same as the System's portion of the total moneys
17distributed under subsection (d) of Section 7.2 of the General
18Obligation Bond Act. In determining this maximum for State
19fiscal years 2008 through 2010, however, the amount referred to
20in item (i) shall be increased, as a percentage of the
21applicable employee payroll, in equal increments calculated
22from the sum of the required State contribution for State
23fiscal year 2007 plus the applicable portion of the State's
24total debt service payments for fiscal year 2007 on the bonds
25issued in fiscal year 2003 for the purposes of Section 7.2 of
26the General Obligation Bond Act, so that, by State fiscal year

 

 

10000SB0011sam001- 87 -LRB100 06001 RPS 18183 a

12011, the State is contributing at the rate otherwise required
2under this Section.
3    (f) After the submission of all payments for eligible
4employees from personal services line items in fiscal year 2004
5have been made, the Comptroller shall provide to the System a
6certification of the sum of all fiscal year 2004 expenditures
7for personal services that would have been covered by payments
8to the System under this Section if the provisions of this
9amendatory Act of the 93rd General Assembly had not been
10enacted. Upon receipt of the certification, the System shall
11determine the amount due to the System based on the full rate
12certified by the Board under Section 14-135.08 for fiscal year
132004 in order to meet the State's obligation under this
14Section. The System shall compare this amount due to the amount
15received by the System in fiscal year 2004 through payments
16under this Section and under Section 6z-61 of the State Finance
17Act. If the amount due is more than the amount received, the
18difference shall be termed the "Fiscal Year 2004 Shortfall" for
19purposes of this Section, and the Fiscal Year 2004 Shortfall
20shall be satisfied under Section 1.2 of the State Pension Funds
21Continuing Appropriation Act. If the amount due is less than
22the amount received, the difference shall be termed the "Fiscal
23Year 2004 Overpayment" for purposes of this Section, and the
24Fiscal Year 2004 Overpayment shall be repaid by the System to
25the Pension Contribution Fund as soon as practicable after the
26certification.

 

 

10000SB0011sam001- 88 -LRB100 06001 RPS 18183 a

1    (g) 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    (h) 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    (i) After the submission of all payments for eligible
17employees from personal services line items paid from the
18General Revenue Fund in fiscal year 2010 have been made, the
19Comptroller shall provide to the System a certification of the
20sum of all fiscal year 2010 expenditures for personal services
21that would have been covered by payments to the System under
22this Section if the provisions of this amendatory Act of the
2396th General Assembly had not been enacted. Upon receipt of the
24certification, the System shall determine the amount due to the
25System based on the full rate certified by the Board under
26Section 14-135.08 for fiscal year 2010 in order to meet the

 

 

10000SB0011sam001- 89 -LRB100 06001 RPS 18183 a

1State's obligation under this Section. The System shall compare
2this amount due to the amount received by the System in fiscal
3year 2010 through payments under this Section. If the amount
4due is more than the amount received, the difference shall be
5termed the "Fiscal Year 2010 Shortfall" for purposes of this
6Section, and the Fiscal Year 2010 Shortfall shall be satisfied
7under Section 1.2 of the State Pension Funds Continuing
8Appropriation Act. If the amount due is less than the amount
9received, the difference shall be termed the "Fiscal Year 2010
10Overpayment" for purposes of this Section, and the Fiscal Year
112010 Overpayment shall be repaid by the System to the General
12Revenue Fund as soon as practicable after the certification.
13    (j) After the submission of all payments for eligible
14employees from personal services line items paid from the
15General Revenue Fund in fiscal year 2011 have been made, the
16Comptroller shall provide to the System a certification of the
17sum of all fiscal year 2011 expenditures for personal services
18that would have been covered by payments to the System under
19this Section if the provisions of this amendatory Act of the
2096th General Assembly had not been enacted. Upon receipt of the
21certification, the System shall determine the amount due to the
22System based on the full rate certified by the Board under
23Section 14-135.08 for fiscal year 2011 in order to meet the
24State's obligation under this Section. The System shall compare
25this amount due to the amount received by the System in fiscal
26year 2011 through payments under this Section. If the amount

 

 

10000SB0011sam001- 90 -LRB100 06001 RPS 18183 a

1due is more than the amount received, the difference shall be
2termed the "Fiscal Year 2011 Shortfall" for purposes of this
3Section, and the Fiscal Year 2011 Shortfall shall be satisfied
4under Section 1.2 of the State Pension Funds Continuing
5Appropriation Act. If the amount due is less than the amount
6received, the difference shall be termed the "Fiscal Year 2011
7Overpayment" for purposes of this Section, and the Fiscal Year
82011 Overpayment shall be repaid by the System to the General
9Revenue Fund as soon as practicable after the certification.
10    (k) For fiscal years 2012 through 2017 only, after the
11submission of all payments for eligible employees from personal
12services line items paid from the General Revenue Fund in the
13fiscal year have been made, the Comptroller shall provide to
14the System a certification of the sum of all expenditures in
15the fiscal year for personal services. Upon receipt of the
16certification, the System shall determine the amount due to the
17System based on the full rate certified by the Board under
18Section 14-135.08 for the fiscal year in order to meet the
19State's obligation under this Section. The System shall compare
20this amount due to the amount received by the System for the
21fiscal year. If the amount due is more than the amount
22received, the difference shall be termed the "Prior Fiscal Year
23Shortfall" for purposes of this Section, and the Prior Fiscal
24Year Shortfall shall be satisfied under Section 1.2 of the
25State Pension Funds Continuing Appropriation Act. If the amount
26due is less than the amount received, the difference shall be

 

 

10000SB0011sam001- 91 -LRB100 06001 RPS 18183 a

1termed the "Prior Fiscal Year Overpayment" for purposes of this
2Section, and the Prior Fiscal Year Overpayment shall be repaid
3by the System to the General Revenue Fund as soon as
4practicable after the certification.
5(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8,
6eff. 7-9-15; 99-523, eff. 6-30-16.)
 
7    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
8    (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10    Sec. 14-135.08. To certify required State contributions.
11    (a) To certify to the Governor and to each department, on
12or before November 15 of each year until November 15, 2011, the
13required rate for State contributions to the System for the
14next State fiscal year, as determined under subsection (b) of
15Section 14-131. The certification to the Governor under this
16subsection (a) shall include a copy of the actuarial
17recommendations upon which the rate is based and shall
18specifically identify the System's projected State normal cost
19for that fiscal year.
20    (a-5) On or before November 1 of each year, beginning
21November 1, 2012, the Board shall submit to the State Actuary,
22the Governor, and the General Assembly a proposed certification
23of the amount of the required State contribution to the System
24for the next fiscal year, along with all of the actuarial
25assumptions, calculations, and data upon which that proposed

 

 

10000SB0011sam001- 92 -LRB100 06001 RPS 18183 a

1certification is based. On or before January 1 of each year
2beginning January 1, 2013, the State Actuary shall issue a
3preliminary report concerning the proposed certification and
4identifying, if necessary, recommended changes in actuarial
5assumptions that the Board must consider before finalizing its
6certification of the required State contributions. On or before
7January 15, 2013 and each January 15 thereafter, the Board
8shall certify to the Governor and the General Assembly the
9amount of the required State contribution for the next fiscal
10year. The Board's certification must note any deviations from
11the State Actuary's recommended changes, the reason or reasons
12for not following the State Actuary's recommended changes, and
13the fiscal impact of not following the State Actuary's
14recommended changes on the required State contribution.
15    (b) The certifications under subsections (a) and (a-5)
16shall include an additional amount necessary to pay all
17principal of and interest on those general obligation bonds due
18the next fiscal year authorized by Section 7.2(a) of the
19General Obligation Bond Act and issued to provide the proceeds
20deposited by the State with the System in July 2003,
21representing deposits other than amounts reserved under
22Section 7.2(c) of the General Obligation Bond Act. For State
23fiscal year 2005, the Board shall make a supplemental
24certification of the additional amount necessary to pay all
25principal of and interest on those general obligation bonds due
26in State fiscal years 2004 and 2005 authorized by Section

 

 

10000SB0011sam001- 93 -LRB100 06001 RPS 18183 a

17.2(a) of the General Obligation Bond Act and issued to provide
2the proceeds deposited by the State with the System in July
32003, representing deposits other than amounts reserved under
4Section 7.2(c) of the General Obligation Bond Act, as soon as
5practical after the effective date of this amendatory Act of
6the 93rd General Assembly.
7    On or before May 1, 2004, the Board shall recalculate and
8recertify to the Governor and to each department the amount of
9the required State contribution to the System and the required
10rates for State contributions to the System for State fiscal
11year 2005, taking into account the amounts appropriated to and
12received by the System under subsection (d) of Section 7.2 of
13the General Obligation Bond Act.
14    On or before July 1, 2005, the Board shall recalculate and
15recertify to the Governor and to each department the amount of
16the required State contribution to the System and the required
17rates for State contributions to the System for State fiscal
18year 2006, taking into account the changes in required State
19contributions made by this amendatory Act of the 94th General
20Assembly.
21    On or before April 1, 2011, the Board shall recalculate and
22recertify to the Governor and to each department the amount of
23the required State contribution to the System for State fiscal
24year 2011, applying the changes made by Public Act 96-889 to
25the System's assets and liabilities as of June 30, 2009 as
26though Public Act 96-889 was approved on that date.

 

 

10000SB0011sam001- 94 -LRB100 06001 RPS 18183 a

1    As soon as practical after the effective date of this
2amendatory Act of the 100th General Assembly, the State Actuary
3and the Board shall recalculate and recertify to the Governor
4and the General Assembly the amount of the State contribution
5to the System for State fiscal year 2018, taking into account
6the changes in required State contributions made by this
7amendatory Act of the 100th General Assembly.
8(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
997-694, eff. 6-18-12.)
 
10    (40 ILCS 5/14-147.5 new)
11    Sec. 14-147.5. Accelerated pension benefit payment.
12    (a) As used in this Section:
13    "Eligible person" means a person who:
14        (1) has terminated service;
15        (2) has accrued sufficient service credit to be
16    eligible to receive a retirement annuity under this
17    Article;
18        (3) has not received any retirement annuity under this
19    Article; and
20        (4) does not have a QILDRO in effect against him or her
21    under this Article.
22    "Pension benefit" means the benefits under this Article, or
23Article 1 as it relates to those benefits, including any
24anticipated annual increases, that an eligible person is
25entitled to upon attainment of the applicable retirement age.

 

 

10000SB0011sam001- 95 -LRB100 06001 RPS 18183 a

1"Pension benefit" also includes applicable survivor's or
2disability benefits.
3    (b) Before January 1, 2018, and annually thereafter, the
4System shall calculate, using actuarial tables and other
5assumptions adopted by the Board, the net present value of
6pension benefits for each eligible person and shall offer each
7eligible person the opportunity to irrevocably elect to receive
8an amount determined by the System to be equal to 70% of the
9net present value of his or her pension benefits in lieu of
10receiving any pension benefit. The offer shall specify the
11dollar amount that the eligible person will receive if he or
12she so elects and shall expire when a subsequent offer is made
13to an eligible person or when the System determines that 10% of
14eligible persons in that year have made the election under this
15subsection, whichever occurs first. The System shall make a
16good faith effort to contact every eligible person to notify
17him or her of the election and of the amount of the accelerated
18pension benefit payment.
19    Until the System determines that 10% of eligible persons in
20that year have made the election under this subsection, an
21eligible person may irrevocably elect to receive an accelerated
22pension benefit payment in the amount that the System offers
23under this subsection in lieu of receiving any pension benefit.
24A person who elects to receive an accelerated pension benefit
25payment under this Section may not elect to proceed under the
26Retirement Systems Reciprocal Act with respect to service under

 

 

10000SB0011sam001- 96 -LRB100 06001 RPS 18183 a

1this Article.
2    (c) A person's credits and creditable service under this
3Article shall be terminated upon the person's receipt of an
4accelerated pension benefit payment under this Section, and no
5other benefit shall be paid under this Article based on those
6terminated credits and creditable service, including any
7retirement, survivor, or other benefit; except that to the
8extent that participation, benefits, or premiums under the
9State Employees Group Insurance Act of 1971 are based on the
10amount of service credit, the terminated service credit shall
11be used for that purpose.
12    (d) If a person who has received an accelerated pension
13benefit payment under this Section returns to active service
14under this Article, then:
15        (1) Any benefits under the System earned as a result of
16    that return to active service shall be based solely on the
17    person's credits and creditable service arising from the
18    return to active service.
19        (2) The accelerated pension benefit payment may not be
20    repaid to the System, and the terminated credits and
21    creditable service may not under any circumstances be
22    reinstated.
23    (e) As a condition of receiving an accelerated pension
24benefit payment, an eligible person must have another
25retirement plan or account qualified under the Internal Revenue
26Code of 1986, as amended, for the accelerated pension benefit

 

 

10000SB0011sam001- 97 -LRB100 06001 RPS 18183 a

1payment to be rolled into. The accelerated pension benefit
2payment under this Section may be subject to withholding or
3payment of applicable taxes, but to the extent permitted by
4federal law, a person who receives an accelerated pension
5benefit payment under this Section must direct the System to
6pay all of that payment as a rollover into another retirement
7plan or account qualified under the Internal Revenue Code of
81986, as amended.
9    (f) Before January 1, 2019 and every January 1 thereafter,
10the Board shall certify to the Illinois Finance Authority and
11the General Assembly the amount by which the total amount of
12accelerated pension benefit payments made under this Section
13exceed the amount appropriated to the System for the purpose of
14making those payments.
15    (g) The Board shall adopt any rules necessary to implement
16this Section.
17    (h) No provision of this Section shall be interpreted in a
18way that would cause the applicable System to cease to be a
19qualified plan under the Internal Revenue Code of 1986.
20    (i) Notwithstanding any other provision of this Section, in
21no case shall the total amount of accelerated pension benefit
22payments paid under this Section, Section 15-185.5, and Section
2316-190.5 cause the Illinois Finance Authority to issue more
24than the $250,000,000 of State Pension Obligation Acceleration
25Bonds authorized in subsection (c-5) of Section 801-40 of the
26Illinois Finance Authority Act.
 

 

 

10000SB0011sam001- 98 -LRB100 06001 RPS 18183 a

1    (40 ILCS 5/14-152.1)
2    (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 14-152.1. Application and expiration of new benefit
5increases.
6    (a) As used in this Section, "new benefit increase" means
7an increase in the amount of any benefit provided under this
8Article, or an expansion of the conditions of eligibility for
9any benefit under this Article, that results from an amendment
10to this Code that takes effect after June 1, 2005 (the
11effective date of Public Act 94-4). "New benefit increase",
12however, does not include any benefit increase resulting from
13the changes made to this Article by Public Act 96-37 or by this
14amendatory Act of the 100th General Assembly this amendatory
15Act of the 96th General Assembly.
16    (b) Notwithstanding any other provision of this Code or any
17subsequent amendment to this Code, every new benefit increase
18is subject to this Section and shall be deemed to be granted
19only in conformance with and contingent upon compliance with
20the provisions of this Section.
21    (c) The Public Act enacting a new benefit increase must
22identify and provide for payment to the System of additional
23funding at least sufficient to fund the resulting annual
24increase in cost to the System as it accrues.
25    Every new benefit increase is contingent upon the General

 

 

10000SB0011sam001- 99 -LRB100 06001 RPS 18183 a

1Assembly providing the additional funding required under this
2subsection. The Commission on Government Forecasting and
3Accountability shall analyze whether adequate additional
4funding has been provided for the new benefit increase and
5shall report its analysis to the Public Pension Division of the
6Department of Financial and Professional Regulation. A new
7benefit increase created by a Public Act that does not include
8the additional funding required under this subsection is null
9and void. If the Public Pension Division determines that the
10additional funding provided for a new benefit increase under
11this subsection is or has become inadequate, it may so certify
12to the Governor and the State Comptroller and, in the absence
13of corrective action by the General Assembly, the new benefit
14increase shall expire at the end of the fiscal year in which
15the certification is made.
16    (d) Every new benefit increase shall expire 5 years after
17its effective date or on such earlier date as may be specified
18in the language enacting the new benefit increase or provided
19under subsection (c). This does not prevent the General
20Assembly from extending or re-creating a new benefit increase
21by law.
22    (e) Except as otherwise provided in the language creating
23the new benefit increase, a new benefit increase that expires
24under this Section continues to apply to persons who applied
25and qualified for the affected benefit while the new benefit
26increase was in effect and to the affected beneficiaries and

 

 

10000SB0011sam001- 100 -LRB100 06001 RPS 18183 a

1alternate payees of such persons, but does not apply to any
2other person, including without limitation a person who
3continues in service after the expiration date and did not
4apply and qualify for the affected benefit while the new
5benefit increase was in effect.
6(Source: P.A. 96-37, eff. 7-13-09.)
 
7    (40 ILCS 5/15-108.1)
8    Sec. 15-108.1. Tier 1 member; Tier 1 employee.
9    "Tier 1 member": A participant or an annuitant of a
10retirement annuity under this Article, other than a participant
11in the self-managed plan under Section 15-158.2, who first
12became a participant or member before January 1, 2011 under any
13reciprocal retirement system or pension fund established under
14this Code, other than a retirement system or pension fund
15established under Articles 2, 3, 4, 5, 6, or 18 of this Code.
16"Tier 1 member" includes a person who first became a
17participant under this System before January 1, 2011 and who
18accepts a refund and is subsequently reemployed by an employer
19on or after January 1, 2011.
20    "Tier 1 employee": An employee under this Article, other
21than a participant in the self-managed plan under Section
2215-158.2, who first became a member or participant before
23January 1, 2011 under any reciprocal retirement system or
24pension fund established under this Code other than a
25retirement system or pension fund established under Article 2,

 

 

10000SB0011sam001- 101 -LRB100 06001 RPS 18183 a

13, 4, 5, 6, or 18 of this Code. However, for the purposes of the
2election under Section 15-132.9, "Tier 1 employee" does not
3include a participant under this Article who would qualify as a
4Tier 1 employee but who has made an irrevocable election on or
5before June 1, 2017 to retire from service pursuant to the
6terms of a collective bargaining agreement in effect on June 1,
72017, excluding any extension, amendment, or renewal of that
8agreement on or after that date, and has notified the System of
9that election.
10(Source: P.A. 98-92, eff. 7-16-13.)
 
11    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
12    Sec. 15-111. Earnings.
13    (a) "Earnings": Subject to Section 15-111.5, an amount paid
14for personal services equal to the sum of the basic
15compensation plus extra compensation for summer teaching,
16overtime or other extra service. For periods for which an
17employee receives service credit under subsection (c) of
18Section 15-113.1 or Section 15-113.2, earnings are equal to the
19basic compensation on which contributions are paid by the
20employee during such periods. Compensation for employment
21which is irregular, intermittent and temporary shall not be
22considered earnings, unless the participant is also receiving
23earnings from the employer as an employee under Section 15-107.
24    With respect to transition pay paid by the University of
25Illinois to a person who was a participating employee employed

 

 

10000SB0011sam001- 102 -LRB100 06001 RPS 18183 a

1in the fire department of the University of Illinois's
2Champaign-Urbana campus immediately prior to the elimination
3of that fire department:
4        (1) "Earnings" includes transition pay paid to the
5    employee on or after the effective date of this amendatory
6    Act of the 91st General Assembly.
7        (2) "Earnings" includes transition pay paid to the
8    employee before the effective date of this amendatory Act
9    of the 91st General Assembly only if (i) employee
10    contributions under Section 15-157 have been withheld from
11    that transition pay or (ii) the employee pays to the System
12    before January 1, 2001 an amount representing employee
13    contributions under Section 15-157 on that transition pay.
14    Employee contributions under item (ii) may be paid in a
15    lump sum, by withholding from additional transition pay
16    accruing before January 1, 2001, or in any other manner
17    approved by the System. Upon payment of the employee
18    contributions on transition pay, the corresponding
19    employer contributions become an obligation of the State.
20    (a-5) Notwithstanding any other provision of this Section,
21"earnings" does not include any future increase in income that
22is offered for service by an employer to a Tier 1 employee
23under this Article pursuant to the condition set forth in
24subsection (c) of Section 15-132.9 and accepted under that
25condition by a Tier 1 employee who has made the election under
26paragraph (2) of subsection (a) of Section 15-132.9.

 

 

10000SB0011sam001- 103 -LRB100 06001 RPS 18183 a

1    (a-10) Notwithstanding any other provision of this
2Section, "earnings" does not include any consideration payment
3made to a Tier 1 employee.
4    (b) For a Tier 2 member, the annual earnings shall not
5exceed $106,800; however, that amount shall annually
6thereafter be increased by the lesser of (i) 3% of that amount,
7including all previous adjustments, or (ii) one half the annual
8unadjusted percentage increase (but not less than zero) in the
9consumer price index-u for the 12 months ending with the
10September preceding each November 1, including all previous
11adjustments.
12    For the purposes of this Section, "consumer price index u"
13means the index published by the Bureau of Labor Statistics of
14the United States Department of Labor that measures the average
15change in prices of goods and services purchased by all urban
16consumers, United States city average, all items, 1982-84 =
17100. The new amount resulting from each annual adjustment shall
18be determined by the Public Pension Division of the Department
19of Insurance and made available to the boards of the retirement
20systems and pension funds by November 1 of each year.
21    (c) With each submission of payroll information in the
22manner prescribed by the System, the employer shall certify
23that the payroll information is correct and complies with all
24applicable State and federal laws.
25(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
 

 

 

10000SB0011sam001- 104 -LRB100 06001 RPS 18183 a

1    (40 ILCS 5/15-112.1 new)
2    Sec. 15-112.1. Future increase in income. "Future increase
3in income" means an increase in income in any form offered by
4an employer to a Tier 1 employee for service under this Article
5after June 30, 2018 that qualifies as "earnings", as defined in
6Section 15-111, or would qualify as "earnings" but for the fact
7that it was offered to and accepted by a Tier 1 employee under
8the condition set forth in subsection (c) of Section 15-132.9.
9The term "future increase in income" does not include an
10increase in income in any form that is paid to a Tier 1
11employee under an employment contract or a collective
12bargaining agreement that is in effect on the effective date of
13this Section, but does include an increase in income in any
14form pursuant to an extension, amendment, or renewal of any
15such employment contract or collective bargaining agreement on
16or after the effective date of this Section.
 
17    (40 ILCS 5/15-132.9 new)
18    Sec. 15-132.9. Election by Tier 1 employees.
19    (a) Each active Tier 1 employee shall make an irrevocable
20election either:
21        (1) to agree to delay his or her eligibility for
22    automatic annual increases in retirement annuity as
23    provided in subsection (d-1) of Section 15-136 and to have
24    the amount of the automatic annual increases in his or her
25    retirement annuity and survivor annuity that are otherwise

 

 

10000SB0011sam001- 105 -LRB100 06001 RPS 18183 a

1    provided for in this Article calculated, instead, as
2    provided in subsection (d-1) of Section 15-136; or
3        (2) to not agree to the provisions of paragraph (1) of
4    this subsection.
5    The election required under this subsection (a) shall be
6made by each active Tier 1 employee no earlier than January 1,
72018 and no later than March 31, 2018, except that:
8        (i) a person who becomes a Tier 1 employee under this
9    Article on or after January 1, 2018 must make the election
10    under this subsection (a) within 60 days after becoming a
11    Tier 1 employee; and
12        (ii) a person who returns to active service as a Tier 1
13    employee under this Article on or after January 1, 2018 and
14    has not yet made an election under this Section must make
15    the election under this subsection (a) within 60 days after
16    returning to active service as a Tier 1 employee.
17    If a Tier 1 employee fails for any reason to make a
18required election under this subsection within the time
19specified, then the employee shall be deemed to have made the
20election under paragraph (2) of this subsection.
21    (a-5) If this Section is enjoined or stayed by an Illinois
22court or a court of competent jurisdiction pending the entry of
23a final and unappealable decision, and this Section is
24determined to be constitutional or otherwise valid by a final
25unappealable decision of an Illinois court or a court of
26competent jurisdiction, then the election procedure set forth

 

 

10000SB0011sam001- 106 -LRB100 06001 RPS 18183 a

1in subsection (a) of this Section shall commence on the 180th
2calendar day after the date of the issuance of the final
3unappealable decision and shall conclude at the end of the
4270th calendar day after that date.
5    (a-10) All elections under subsection (a) that are made or
6deemed to be made before July 1, 2018 shall take effect on July
71, 2018. Elections that are made or deemed to be made on or
8after July 1, 2018 shall take effect on the first day of the
9month following the month in which the election is made or
10deemed to be made.
11    (b) As adequate and legal consideration provided under this
12amendatory Act of the 100th General Assembly for making an
13election under paragraph (1) of subsection (a) of this Section,
14the employer shall be expressly and irrevocably prohibited from
15offering any future increases in income to a Tier 1 employee
16who has made an election under paragraph (1) of subsection (a)
17of this Section on the condition of not constituting earnings
18under Section 15-111.
19    As adequate and legal consideration provided under this
20amendatory Act of the 100th General Assembly for making an
21election under paragraph (1) of subsection (a) of this Section,
22each Tier 1 employee who has made an election under paragraph
23(1) of subsection (a) of this Section shall receive a
24consideration payment equal to 10% of the contributions made by
25or on behalf of the employee under Section 15-157 before the
26effective date of that election. The State Comptroller shall

 

 

10000SB0011sam001- 107 -LRB100 06001 RPS 18183 a

1pay the consideration payment to the Tier 1 employee out of
2funds appropriated for that purpose under Section 1.9 of the
3State Pension Funds Continuing Appropriation Act. The System
4shall calculate the amount of each consideration payment and
5shall certify to the State Comptroller the amount of the
6consideration payment, together with the name, address, and any
7other available payment information of the Tier 1 employee as
8found in the records of the System.
9    (c) A Tier 1 employee who makes the election under
10paragraph (2) of subsection (a) of this Section shall not be
11subject to paragraph (1) of subsection (a) of this Section.
12However, each future increase in income offered by an employer
13under this Article to a Tier 1 employee who has made the
14election under paragraph (2) of subsection (a) of this Section
15shall be offered by the employer expressly and irrevocably on
16the condition of not constituting earnings under Section 15-111
17and that the Tier 1 employee's acceptance of the offered future
18increase in income shall constitute his or her agreement to
19that condition.
20    (d) The System shall make a good faith effort to contact
21each Tier 1 employee subject to this Section. The System shall
22mail information describing the required election to each Tier
231 employee by United States Postal Service mail to his or her
24last known address on file with the System. If the Tier 1
25employee is not responsive to other means of contact, it is
26sufficient for the System to publish the details of any

 

 

10000SB0011sam001- 108 -LRB100 06001 RPS 18183 a

1required elections on its website or to publish those details
2in a regularly published newsletter or other existing public
3forum.
4    Tier 1 employees who are subject to this Section shall be
5provided with an election packet containing information
6regarding their options, as well as the forms necessary to make
7the required election. Upon request, the System shall offer
8Tier 1 employees an opportunity to receive information from the
9System before making the required election. The information may
10consist of video materials, group presentations, individual
11consultation with a member or authorized representative of the
12System in person or by telephone or other electronic means, or
13any combination of those methods. The System shall not provide
14advice or counseling with respect to which election a Tier 1
15employee should make or specific to the legal or tax
16circumstances of or consequences to the Tier 1 employee.
17    The System shall inform Tier 1 employees in the election
18packet required under this subsection that the Tier 1 employee
19may also wish to obtain information and counsel relating to the
20election required under this Section from any other available
21source, including, but not limited to, labor organizations and
22private counsel.
23    In no event shall the System, its staff, or the Board be
24held liable for any information given to a member regarding the
25elections under this Section. The System shall coordinate with
26the Illinois Department of Central Management Services and each

 

 

10000SB0011sam001- 109 -LRB100 06001 RPS 18183 a

1other retirement system administering an election in
2accordance with this amendatory Act of the 100th General
3Assembly to provide information concerning the impact of the
4election set forth in this Section.
5    (e) Notwithstanding any other provision of law, an employer
6under this Article is required to offer each future increase in
7income expressly and irrevocably on the condition of not
8constituting "earnings" under Section 15-111 to any Tier 1
9employee who has made an election under paragraph (2) of
10subsection (a) of this Section. The offer shall also provide
11that the Tier 1 employee's acceptance of the offered future
12increase in income shall constitute his or her agreement to the
13condition set forth in this subsection.
14    For purposes of legislative intent, the condition set forth
15in this subsection shall be construed in a manner that ensures
16that the condition is not violated or circumvented through any
17contrivance of any kind.
18    (f) A member's election under this Section is not a
19prohibited election under subdivision (j)(1) of Section 1-119
20of this Code.
21    (g) No provision of this Section shall be interpreted in a
22way that would cause the System to cease to be a qualified plan
23under Section 401(a) of the Internal Revenue Code of 1986.
24    (h) If an election created by this amendatory Act in any
25other Article of this Code or any change deriving from that
26election is determined to be unconstitutional or otherwise

 

 

10000SB0011sam001- 110 -LRB100 06001 RPS 18183 a

1invalid by a final unappealable decision of an Illinois court
2or a court of competent jurisdiction, the invalidity of that
3provision shall not in any way affect the validity of this
4Section or the changes deriving from the election required
5under this Section.
 
6    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
7    (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9    Sec. 15-136. Retirement annuities - Amount. The provisions
10of this Section 15-136 apply only to those participants who are
11participating in the traditional benefit package or the
12portable benefit package and do not apply to participants who
13are participating in the self-managed plan.
14    (a) The amount of a participant's retirement annuity,
15expressed in the form of a single-life annuity, shall be
16determined by whichever of the following rules is applicable
17and provides the largest annuity:
18    Rule 1: The retirement annuity shall be 1.67% of final rate
19of earnings for each of the first 10 years of service, 1.90%
20for each of the next 10 years of service, 2.10% for each year
21of service in excess of 20 but not exceeding 30, and 2.30% for
22each year in excess of 30; or for persons who retire on or
23after January 1, 1998, 2.2% of the final rate of earnings for
24each year of service.
25    Rule 2: The retirement annuity shall be the sum of the

 

 

10000SB0011sam001- 111 -LRB100 06001 RPS 18183 a

1following, determined from amounts credited to the participant
2in accordance with the actuarial tables and the effective rate
3of interest in effect at the time the retirement annuity
4begins:
5        (i) the normal annuity which can be provided on an
6    actuarially equivalent basis, by the accumulated normal
7    contributions as of the date the annuity begins;
8        (ii) an annuity from employer contributions of an
9    amount equal to that which can be provided on an
10    actuarially equivalent basis from the accumulated normal
11    contributions made by the participant under Section
12    15-113.6 and Section 15-113.7 plus 1.4 times all other
13    accumulated normal contributions made by the participant;
14    and
15        (iii) the annuity that can be provided on an
16    actuarially equivalent basis from the entire contribution
17    made by the participant under Section 15-113.3.
18    With respect to a police officer or firefighter who retires
19on or after August 14, 1998, the accumulated normal
20contributions taken into account under clauses (i) and (ii) of
21this Rule 2 shall include the additional normal contributions
22made by the police officer or firefighter under Section
2315-157(a).
24    The amount of a retirement annuity calculated under this
25Rule 2 shall be computed solely on the basis of the
26participant's accumulated normal contributions, as specified

 

 

10000SB0011sam001- 112 -LRB100 06001 RPS 18183 a

1in this Rule and defined in Section 15-116. Neither an employee
2or employer contribution for early retirement under Section
315-136.2 nor any other employer contribution shall be used in
4the calculation of the amount of a retirement annuity under
5this Rule 2.
6    This amendatory Act of the 91st General Assembly is a
7clarification of existing law and applies to every participant
8and annuitant without regard to whether status as an employee
9terminates before the effective date of this amendatory Act.
10    This Rule 2 does not apply to a person who first becomes an
11employee under this Article on or after July 1, 2005.
12    Rule 3: The retirement annuity of a participant who is
13employed at least one-half time during the period on which his
14or her final rate of earnings is based, shall be equal to the
15participant's years of service not to exceed 30, multiplied by
16(1) $96 if the participant's final rate of earnings is less
17than $3,500, (2) $108 if the final rate of earnings is at least
18$3,500 but less than $4,500, (3) $120 if the final rate of
19earnings is at least $4,500 but less than $5,500, (4) $132 if
20the final rate of earnings is at least $5,500 but less than
21$6,500, (5) $144 if the final rate of earnings is at least
22$6,500 but less than $7,500, (6) $156 if the final rate of
23earnings is at least $7,500 but less than $8,500, (7) $168 if
24the final rate of earnings is at least $8,500 but less than
25$9,500, and (8) $180 if the final rate of earnings is $9,500 or
26more, except that the annuity for those persons having made an

 

 

10000SB0011sam001- 113 -LRB100 06001 RPS 18183 a

1election under Section 15-154(a-1) shall be calculated and
2payable under the portable retirement benefit program pursuant
3to the provisions of Section 15-136.4.
4    Rule 4: A participant who is at least age 50 and has 25 or
5more years of service as a police officer or firefighter, and a
6participant who is age 55 or over and has at least 20 but less
7than 25 years of service as a police officer or firefighter,
8shall be entitled to a retirement annuity of 2 1/4% of the
9final rate of earnings for each of the first 10 years of
10service as a police officer or firefighter, 2 1/2% for each of
11the next 10 years of service as a police officer or
12firefighter, and 2 3/4% for each year of service as a police
13officer or firefighter in excess of 20. The retirement annuity
14for all other service shall be computed under Rule 1. A Tier 2
15member is eligible for a retirement annuity calculated under
16Rule 4 only if that Tier 2 member meets the service
17requirements for that benefit calculation as prescribed under
18this Rule 4 in addition to the applicable age requirement under
19subsection (a-5) of Section 15-135.
20    For purposes of this Rule 4, a participant's service as a
21firefighter shall also include the following:
22        (i) service that is performed while the person is an
23    employee under subsection (h) of Section 15-107; and
24        (ii) in the case of an individual who was a
25    participating employee employed in the fire department of
26    the University of Illinois's Champaign-Urbana campus

 

 

10000SB0011sam001- 114 -LRB100 06001 RPS 18183 a

1    immediately prior to the elimination of that fire
2    department and who immediately after the elimination of
3    that fire department transferred to another job with the
4    University of Illinois, service performed as an employee of
5    the University of Illinois in a position other than police
6    officer or firefighter, from the date of that transfer
7    until the employee's next termination of service with the
8    University of Illinois.
9    (b) For a Tier 1 member, the retirement annuity provided
10under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
11month the participant is under age 60 at the time of
12retirement. However, this reduction shall not apply in the
13following cases:
14        (1) For a disabled participant whose disability
15    benefits have been discontinued because he or she has
16    exhausted eligibility for disability benefits under clause
17    (6) of Section 15-152;
18        (2) For a participant who has at least the number of
19    years of service required to retire at any age under
20    subsection (a) of Section 15-135; or
21        (3) For that portion of a retirement annuity which has
22    been provided on account of service of the participant
23    during periods when he or she performed the duties of a
24    police officer or firefighter, if these duties were
25    performed for at least 5 years immediately preceding the
26    date the retirement annuity is to begin.

 

 

10000SB0011sam001- 115 -LRB100 06001 RPS 18183 a

1    (b-5) The retirement annuity of a Tier 2 member who is
2retiring after attaining age 62 with at least 10 years of
3service credit shall be reduced by 1/2 of 1% for each full
4month that the member's age is under age 67.
5    (c) The maximum retirement annuity provided under Rules 1,
62, 4, and 5 shall be the lesser of (1) the annual limit of
7benefits as specified in Section 415 of the Internal Revenue
8Code of 1986, as such Section may be amended from time to time
9and as such benefit limits shall be adjusted by the
10Commissioner of Internal Revenue, and (2) 80% of final rate of
11earnings.
12    (d) Subject to the provisions of subsection (d-1), a A Tier
131 member whose status as an employee terminates after August
1414, 1969 shall receive automatic increases in his or her
15retirement annuity as follows:
16    Effective January 1 immediately following the date the
17retirement annuity begins, the annuitant shall receive an
18increase in his or her monthly retirement annuity of 0.125% of
19the monthly retirement annuity provided under Rule 1, Rule 2,
20Rule 3, or Rule 4 contained in this Section, multiplied by the
21number of full months which elapsed from the date the
22retirement annuity payments began to January 1, 1972, plus
230.1667% of such annuity, multiplied by the number of full
24months which elapsed from January 1, 1972, or the date the
25retirement annuity payments began, whichever is later, to
26January 1, 1978, plus 0.25% of such annuity multiplied by the

 

 

10000SB0011sam001- 116 -LRB100 06001 RPS 18183 a

1number of full months which elapsed from January 1, 1978, or
2the date the retirement annuity payments began, whichever is
3later, to the effective date of the increase.
4    The annuitant shall receive an increase in his or her
5monthly retirement annuity on each January 1 thereafter during
6the annuitant's life of 3% of the monthly annuity provided
7under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
8Section. The change made under this subsection by P.A. 81-970
9is effective January 1, 1980 and applies to each annuitant
10whose status as an employee terminates before or after that
11date.
12    Beginning January 1, 1990, and except as provided in
13subsection (d-1), all automatic annual increases payable under
14this Section shall be calculated as a percentage of the total
15annuity payable at the time of the increase, including all
16increases previously granted under this Article.
17    The change made in this subsection by P.A. 85-1008 is
18effective January 26, 1988, and is applicable without regard to
19whether status as an employee terminated before that date.
20    (d-1) Notwithstanding any other provision of this Article,
21for a Tier 1 employee who made the election under paragraph (1)
22of subsection (a) of Section 15-132.9:
23        (1) The initial increase in retirement annuity under
24    this Section shall occur on the January 1 occurring either
25    on or after the attainment of age 67 or the fifth
26    anniversary of the annuity start date, whichever is

 

 

10000SB0011sam001- 117 -LRB100 06001 RPS 18183 a

1    earlier.
2        (2) The amount of each automatic annual increase in
3    retirement annuity or survivor annuity occurring on or
4    after the effective date of that election shall be
5    calculated as a percentage of the originally granted
6    retirement annuity or survivor annuity, equal to 3% or
7    one-half the annual unadjusted percentage increase (but
8    not less than zero) in the consumer price index-u for the
9    12 months ending with the September preceding each November
10    1, whichever is less. If the annual unadjusted percentage
11    change in the consumer price index-u for the 12 months
12    ending with the September preceding each November 1 is zero
13    or there is a decrease, then the annuity shall not be
14    increased.
15    For the purposes of this Section, "consumer price index-u"
16means the index published by the Bureau of Labor Statistics of
17the United States Department of Labor that measures the average
18change in prices of goods and services purchased by all urban
19consumers, United States city average, all items, 1982-84 =
20100. The new amount resulting from each annual adjustment shall
21be determined by the Public Pension Division of the Department
22of Insurance and made available to the board of the retirement
23system by November 1 of each year.
24    (d-5) A retirement annuity of a Tier 2 member shall receive
25annual increases on the January 1 occurring either on or after
26the attainment of age 67 or the first anniversary of the

 

 

10000SB0011sam001- 118 -LRB100 06001 RPS 18183 a

1annuity start date, whichever is later. Each annual increase
2shall be calculated at 3% or one half the annual unadjusted
3percentage increase (but not less than zero) in the consumer
4price index-u for the 12 months ending with the September
5preceding each November 1, whichever is less, of the originally
6granted retirement annuity. If the annual unadjusted
7percentage change in the consumer price index-u for the 12
8months ending with the September preceding each November 1 is
9zero or there is a decrease, then the annuity shall not be
10increased.
11    (e) If, on January 1, 1987, or the date the retirement
12annuity payment period begins, whichever is later, the sum of
13the retirement annuity provided under Rule 1 or Rule 2 of this
14Section and the automatic annual increases provided under the
15preceding subsection or Section 15-136.1, amounts to less than
16the retirement annuity which would be provided by Rule 3, the
17retirement annuity shall be increased as of January 1, 1987, or
18the date the retirement annuity payment period begins,
19whichever is later, to the amount which would be provided by
20Rule 3 of this Section. Such increased amount shall be
21considered as the retirement annuity in determining benefits
22provided under other Sections of this Article. This paragraph
23applies without regard to whether status as an employee
24terminated before the effective date of this amendatory Act of
251987, provided that the annuitant was employed at least
26one-half time during the period on which the final rate of

 

 

10000SB0011sam001- 119 -LRB100 06001 RPS 18183 a

1earnings was based.
2    (f) A participant is entitled to such additional annuity as
3may be provided on an actuarially equivalent basis, by any
4accumulated additional contributions to his or her credit.
5However, the additional contributions made by the participant
6toward the automatic increases in annuity provided under this
7Section shall not be taken into account in determining the
8amount of such additional annuity.
9    (g) If, (1) by law, a function of a governmental unit, as
10defined by Section 20-107 of this Code, is transferred in whole
11or in part to an employer, and (2) a participant transfers
12employment from such governmental unit to such employer within
136 months after the transfer of the function, and (3) the sum of
14(A) the annuity payable to the participant under Rule 1, 2, or
153 of this Section (B) all proportional annuities payable to the
16participant by all other retirement systems covered by Article
1720, and (C) the initial primary insurance amount to which the
18participant is entitled under the Social Security Act, is less
19than the retirement annuity which would have been payable if
20all of the participant's pension credits validated under
21Section 20-109 had been validated under this system, a
22supplemental annuity equal to the difference in such amounts
23shall be payable to the participant.
24    (h) On January 1, 1981, an annuitant who was receiving a
25retirement annuity on or before January 1, 1971 shall have his
26or her retirement annuity then being paid increased $1 per

 

 

10000SB0011sam001- 120 -LRB100 06001 RPS 18183 a

1month for each year of creditable service. On January 1, 1982,
2an annuitant whose retirement annuity began on or before
3January 1, 1977, shall have his or her retirement annuity then
4being paid increased $1 per month for each year of creditable
5service.
6    (i) On January 1, 1987, any annuitant whose retirement
7annuity began on or before January 1, 1977, shall have the
8monthly retirement annuity increased by an amount equal to 8
9per year of creditable service times the number of years that
10have elapsed since the annuity began.
11(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
1298-92, eff. 7-16-13.)
 
13    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
14    Sec. 15-155. Employer contributions.
15    (a) The State of Illinois shall make contributions by
16appropriations of amounts which, together with the other
17employer contributions from trust, federal, and other funds,
18employee contributions, income from investments, and other
19income of this System, will be sufficient to meet the cost of
20maintaining and administering the System on a 90% funded basis
21in accordance with actuarial recommendations.
22    The Board shall determine the amount of State contributions
23required for each fiscal year on the basis of the actuarial
24tables and other assumptions adopted by the Board and the
25recommendations of the actuary, using the formula in subsection

 

 

10000SB0011sam001- 121 -LRB100 06001 RPS 18183 a

1(a-1).
2    (a-1) For State fiscal years 2018 through 2045 (except as
3otherwise provided for fiscal year 2019), the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6sufficient to bring the total assets of the System up to 90% of
7the total actuarial liabilities of the System by the end of
8State fiscal year 2045. In making these determinations, the
9required State contribution shall be calculated each year as a
10level percentage of total payroll, including payroll that is
11not deemed pensionable, but excluding payroll attributable to
12participants in the defined contribution plan under Section
1315-200.1, over the years remaining to and including fiscal year
142045 and shall be determined under the projected unit credit
15actuarial cost method.
16    For State fiscal year 2019:
17        (1) The initial calculation and certification shall be
18    based on the amount determined above.
19        (2) For purposes of the recertification due on or
20    before May 1, 2018, the recalculation of the required State
21    contribution for fiscal year 2019 shall take into account
22    the effect on the System's liabilities of the elections
23    made under Section 15-132.9.
24        (3) For purposes of the recertification due on or
25    before October 1, 2018, the total required State
26    contribution for fiscal year 2019 shall be reduced by the

 

 

10000SB0011sam001- 122 -LRB100 06001 RPS 18183 a

1    amount of the consideration payments made to Tier 1
2    employees who made the election under paragraph (1) of
3    subsection (a) of Section 15-132.9.
4    Beginning in State fiscal year 2018, any increase or
5decrease in State contribution over the prior fiscal year due
6exclusively to changes in actuarial or investment assumptions
7adopted by the Board shall be included in the State
8contribution to the System, as a percentage of the applicable
9employee payroll, and shall be increased in equal annual
10increments so that by the State fiscal year occurring 5 years
11after the adoption of the actuarial or investment assumptions,
12the State is contributing at the rate otherwise required under
13this Section.
14    For State fiscal years 2012 through 2017 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 payroll over the years remaining to and
22including fiscal year 2045 and shall be determined under the
23projected unit credit actuarial cost method.
24    For State fiscal years 1996 through 2005, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

10000SB0011sam001- 123 -LRB100 06001 RPS 18183 a

1so that by State fiscal year 2011, the State is contributing at
2the rate required under this Section.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2006 is
5$166,641,900.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2007 is
8$252,064,100.
9    For each of State fiscal years 2008 through 2009, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12from the required State contribution for State fiscal year
132007, so that by State fiscal year 2011, the State is
14contributing at the rate otherwise required under this Section.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2010 is
17$702,514,000 and shall be made from the State Pensions Fund and
18proceeds of bonds sold in fiscal year 2010 pursuant to Section
197.2 of the General Obligation Bond Act, less (i) the pro rata
20share of bond sale expenses determined by the System's share of
21total bond proceeds, (ii) any amounts received from the General
22Revenue Fund in fiscal year 2010, (iii) any reduction in bond
23proceeds due to the issuance of discounted bonds, if
24applicable.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2011 is

 

 

10000SB0011sam001- 124 -LRB100 06001 RPS 18183 a

1the amount recertified by the System on or before April 1, 2011
2pursuant to Section 15-165 and shall be made from the State
3Pensions Fund and proceeds of bonds sold in fiscal year 2011
4pursuant to Section 7.2 of the General Obligation Bond Act,
5less (i) the pro rata share of bond sale expenses determined by
6the System's share of total bond proceeds, (ii) any amounts
7received from the General Revenue Fund in fiscal year 2011, and
8(iii) any reduction in bond proceeds due to the issuance of
9discounted bonds, if applicable.
10    Beginning in State fiscal year 2046, the minimum State
11contribution for each fiscal year shall be the amount needed to
12maintain the total assets of the System at 90% of the total
13actuarial liabilities of the System.
14    Amounts received by the System pursuant to Section 25 of
15the Budget Stabilization Act or Section 8.12 of the State
16Finance Act in any fiscal year do not reduce and do not
17constitute payment of any portion of the minimum State
18contribution required under this Article in that fiscal year.
19Such amounts shall not reduce, and shall not be included in the
20calculation of, the required State contributions under this
21Article in any future year until the System has reached a
22funding ratio of at least 90%. A reference in this Article to
23the "required State contribution" or any substantially similar
24term does not include or apply to any amounts payable to the
25System under Section 25 of the Budget Stabilization Act.
26    Notwithstanding any other provision of this Section, the

 

 

10000SB0011sam001- 125 -LRB100 06001 RPS 18183 a

1required State contribution for State fiscal year 2005 and for
2fiscal year 2008 and each fiscal year thereafter, as calculated
3under this Section and certified under Section 15-165, shall
4not exceed an amount equal to (i) the amount of the required
5State contribution that would have been calculated under this
6Section for that fiscal year if the System had not received any
7payments under subsection (d) of Section 7.2 of the General
8Obligation Bond Act, minus (ii) the portion of the State's
9total debt service payments for that fiscal year on the bonds
10issued in fiscal year 2003 for the purposes of that Section
117.2, as determined and certified by the Comptroller, that is
12the same as the System's portion of the total moneys
13distributed under subsection (d) of Section 7.2 of the General
14Obligation Bond Act. In determining this maximum for State
15fiscal years 2008 through 2010, however, the amount referred to
16in item (i) shall be increased, as a percentage of the
17applicable employee payroll, in equal increments calculated
18from the sum of the required State contribution for State
19fiscal year 2007 plus the applicable portion of the State's
20total debt service payments for fiscal year 2007 on the bonds
21issued in fiscal year 2003 for the purposes of Section 7.2 of
22the General Obligation Bond Act, so that, by State fiscal year
232011, the State is contributing at the rate otherwise required
24under this Section.
25    (b) If an employee is paid from trust or federal funds, the
26employer shall pay to the Board contributions from those funds

 

 

10000SB0011sam001- 126 -LRB100 06001 RPS 18183 a

1which are sufficient to cover the accruing normal costs on
2behalf of the employee. However, universities having employees
3who are compensated out of local auxiliary funds, income funds,
4or service enterprise funds are not required to pay such
5contributions on behalf of those employees. The local auxiliary
6funds, income funds, and service enterprise funds of
7universities shall not be considered trust funds for the
8purpose of this Article, but funds of alumni associations,
9foundations, and athletic associations which are affiliated
10with the universities included as employers under this Article
11and other employers which do not receive State appropriations
12are considered to be trust funds for the purpose of this
13Article.
14    (b-1) The City of Urbana and the City of Champaign shall
15each make employer contributions to this System for their
16respective firefighter employees who participate in this
17System pursuant to subsection (h) of Section 15-107. The rate
18of contributions to be made by those municipalities shall be
19determined annually by the Board on the basis of the actuarial
20assumptions adopted by the Board and the recommendations of the
21actuary, and shall be expressed as a percentage of salary for
22each such employee. The Board shall certify the rate to the
23affected municipalities as soon as may be practical. The
24employer contributions required under this subsection shall be
25remitted by the municipality to the System at the same time and
26in the same manner as employee contributions.

 

 

10000SB0011sam001- 127 -LRB100 06001 RPS 18183 a

1    (c) Through State fiscal year 1995: The total employer
2contribution shall be apportioned among the various funds of
3the State and other employers, whether trust, federal, or other
4funds, in accordance with actuarial procedures approved by the
5Board. State of Illinois contributions for employers receiving
6State appropriations for personal services shall be payable
7from appropriations made to the employers or to the System. The
8contributions for Class I community colleges covering earnings
9other than those paid from trust and federal funds, shall be
10payable solely from appropriations to the Illinois Community
11College Board or the System for employer contributions.
12    (d) Beginning in State fiscal year 1996, the required State
13contributions to the System shall be appropriated directly to
14the System and shall be payable through vouchers issued in
15accordance with subsection (c) of Section 15-165, except as
16provided in subsection (g).
17    (e) The State Comptroller shall draw warrants payable to
18the System upon proper certification by the System or by the
19employer in accordance with the appropriation laws and this
20Code.
21    (f) Normal costs under this Section means liability for
22pensions and other benefits which accrues to the System because
23of the credits earned for service rendered by the participants
24during the fiscal year and expenses of administering the
25System, but shall not include the principal of or any
26redemption premium or interest on any bonds issued by the Board

 

 

10000SB0011sam001- 128 -LRB100 06001 RPS 18183 a

1or any expenses incurred or deposits required in connection
2therewith.
3    (g) For academic years beginning on or after June 1, 2005
4and before July 1, 2018, if If the amount of a participant's
5earnings for any academic year used to determine the final rate
6of earnings, determined on a full-time equivalent basis,
7exceeds the amount of his or her earnings with the same
8employer for the previous academic year, determined on a
9full-time equivalent basis, by more than 6%, the participant's
10employer shall pay to the System, in addition to all other
11payments required under this Section and in accordance with
12guidelines established by the System, the present value of the
13increase in benefits resulting from the portion of the increase
14in earnings that is in excess of 6%. This present value shall
15be computed by the System on the basis of the actuarial
16assumptions and tables used in the most recent actuarial
17valuation of the System that is available at the time of the
18computation. The System may require the employer to provide any
19pertinent information or documentation.
20    Whenever it determines that a payment is or may be required
21under this subsection (g), the System shall calculate the
22amount of the payment and bill the employer for that amount.
23The bill shall specify the calculations used to determine the
24amount due. If the employer disputes the amount of the bill, it
25may, within 30 days after receipt of the bill, apply to the
26System in writing for a recalculation. The application must

 

 

10000SB0011sam001- 129 -LRB100 06001 RPS 18183 a

1specify in detail the grounds of the dispute and, if the
2employer asserts that the calculation is subject to subsection
3(h) or (i) of this Section, must include an affidavit setting
4forth and attesting to all facts within the employer's
5knowledge that are pertinent to the applicability of subsection
6(h) or (i). Upon receiving a timely application for
7recalculation, the System shall review the application and, if
8appropriate, recalculate the amount due.
9    The employer contributions required under this subsection
10(g) may be paid in the form of a lump sum within 90 days after
11receipt of the bill. If the employer contributions are not paid
12within 90 days after receipt of the bill, then interest will be
13charged at a rate equal to the System's annual actuarially
14assumed rate of return on investment compounded annually from
15the 91st day after receipt of the bill. Payments must be
16concluded within 3 years after the employer's receipt of the
17bill.
18    When assessing payment for any amount due under this
19subsection (g), the System shall include earnings, to the
20extent not established by a participant under Section 15-113.11
21or 15-113.12, that would have been paid to the participant had
22the participant not taken (i) periods of voluntary or
23involuntary furlough occurring on or after July 1, 2015 and on
24or before June 30, 2017 or (ii) periods of voluntary pay
25reduction in lieu of furlough occurring on or after July 1,
262015 and on or before June 30, 2017. Determining earnings that

 

 

10000SB0011sam001- 130 -LRB100 06001 RPS 18183 a

1would have been paid to a participant had the participant not
2taken periods of voluntary or involuntary furlough or periods
3of voluntary pay reduction shall be the responsibility of the
4employer, and shall be reported in a manner prescribed by the
5System.
6    (g-1) For academic years beginning on or after July 1,
72018, if the amount of a participant's earnings for any
8academic year used to determine the final rate of earnings,
9determined on a full-time equivalent basis, exceeds the amount
10of his or her earnings with the same employer for the previous
11academic year, determined on a full-time equivalent basis, by
12more than the unadjusted percentage increase in the consumer
13price index-u for the calendar year ending on the December 31
14immediately preceding the beginning of the academic year, then
15the participant's employer shall pay to the System, in addition
16to all other payments required under this Section and in
17accordance with guidelines established by the System, the
18present value of the increase in benefits resulting from the
19portion of the increase in earnings that is in excess of the
20unadjusted percentage increase in the consumer price index-u
21for the applicable calendar year. This present value shall be
22computed by the System on the basis of the actuarial
23assumptions and tables used in the most recent actuarial
24valuation of the System that is available at the time of the
25computation. The System may require the employer to provide any
26pertinent information or documentation.

 

 

10000SB0011sam001- 131 -LRB100 06001 RPS 18183 a

1    Whenever it determines that a payment is or may be required
2under this subsection (g-1), the System shall calculate the
3amount of the payment and bill the employer for that amount.
4The bill shall specify the calculations used to determine the
5amount due. If the employer disputes the amount of the bill, it
6may, within 30 days after receipt of the bill, apply to the
7System in writing for a recalculation. The application must
8specify in detail the grounds of the dispute and, if the
9employer asserts that the calculation is subject to subsection
10(i-1) of this Section, must include an affidavit setting forth
11and attesting to all facts within the employer's knowledge that
12are pertinent to the applicability of subsection (i-1). Upon
13receiving a timely application for recalculation, the System
14shall review the application and, if appropriate, recalculate
15the amount due.
16    The employer contributions required under this subsection
17(g-1) may be paid in the form of a lump sum within 90 days after
18receipt of the bill. If the employer contributions are not paid
19within 90 days after receipt of the bill, then interest shall
20be charged at a rate equal to the System's annual actuarially
21assumed rate of return on investment compounded annually from
22the 91st day after receipt of the bill. Payments must be
23concluded within 3 years after the employer's receipt of the
24bill.
25    For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

 

 

10000SB0011sam001- 132 -LRB100 06001 RPS 18183 a

1the United States Department of Labor that measures the average
2change in prices of goods and services purchased by all urban
3consumers, United States city average, all items, 1982-84 =
4100. The new amount resulting from each annual adjustment shall
5be determined by the Public Pension Division of the Department
6of Insurance and made available to the boards of the retirement
7systems and pension funds by November 1 of each year.
8    (h) This subsection (h) applies only to payments made or
9salary increases given on or after June 1, 2005 but before July
101, 2011. The changes made by Public Act 94-1057 shall not
11require the System to refund any payments received before July
1231, 2006 (the effective date of Public Act 94-1057).
13    When assessing payment for any amount due under subsection
14(g), the System shall exclude earnings increases paid to
15participants under contracts or collective bargaining
16agreements entered into, amended, or renewed before June 1,
172005.
18    When assessing payment for any amount due under subsection
19(g), the System shall exclude earnings increases paid to a
20participant at a time when the participant is 10 or more years
21from retirement eligibility under Section 15-135.
22    When assessing payment for any amount due under subsection
23(g), the System shall exclude earnings increases resulting from
24overload work, including a contract for summer teaching, or
25overtime when the employer has certified to the System, and the
26System has approved the certification, that: (i) in the case of

 

 

10000SB0011sam001- 133 -LRB100 06001 RPS 18183 a

1overloads (A) the overload work is for the sole purpose of
2academic instruction in excess of the standard number of
3instruction hours for a full-time employee occurring during the
4academic year that the overload is paid and (B) the earnings
5increases are equal to or less than the rate of pay for
6academic instruction computed using the participant's current
7salary rate and work schedule; and (ii) in the case of
8overtime, the overtime was necessary for the educational
9mission.
10    When assessing payment for any amount due under subsection
11(g), the System shall exclude any earnings increase resulting
12from (i) a promotion for which the employee moves from one
13classification to a higher classification under the State
14Universities Civil Service System, (ii) a promotion in academic
15rank for a tenured or tenure-track faculty position, or (iii) a
16promotion that the Illinois Community College Board has
17recommended in accordance with subsection (k) of this Section.
18These earnings increases shall be excluded only if the
19promotion is to a position that has existed and been filled by
20a member for no less than one complete academic year and the
21earnings increase as a result of the promotion is an increase
22that results in an amount no greater than the average salary
23paid for other similar positions.
24    (i) When assessing payment for any amount due under
25subsection (g), the System shall exclude any salary increase
26described in subsection (h) of this Section given on or after

 

 

10000SB0011sam001- 134 -LRB100 06001 RPS 18183 a

1July 1, 2011 but before July 1, 2014 under a contract or
2collective bargaining agreement entered into, amended, or
3renewed on or after June 1, 2005 but before July 1, 2011.
4Notwithstanding any other provision of this Section, any
5payments made or salary increases given after June 30, 2014
6shall be used in assessing payment for any amount due under
7subsection (g) of this Section.
8    (i-1) When assessing payment for any amount due under
9subsection (g-1), the System shall exclude salary increases
10paid to participants under contracts or collective bargaining
11agreements entered into, amended, or renewed before the
12effective date of this amendatory Act of the 100th General
13Assembly.
14    (j) The System shall prepare a report and file copies of
15the report with the Governor and the General Assembly by
16January 1, 2007 that contains all of the following information:
17        (1) The number of recalculations required by the
18    changes made to this Section by Public Act 94-1057 for each
19    employer.
20        (2) The dollar amount by which each employer's
21    contribution to the System was changed due to
22    recalculations required by Public Act 94-1057.
23        (3) The total amount the System received from each
24    employer as a result of the changes made to this Section by
25    Public Act 94-4.
26        (4) The increase in the required State contribution

 

 

10000SB0011sam001- 135 -LRB100 06001 RPS 18183 a

1    resulting from the changes made to this Section by Public
2    Act 94-1057.
3    (j-5) For academic years beginning on or after July 1,
42018, if the amount of a participant's earnings for any
5academic year, determined on a full-time equivalent basis,
6exceeds the amount of the salary set for the Governor, the
7participant's employer shall pay to the System, in addition to
8all other payments required under this Section and in
9accordance with guidelines established by the System, the
10amount of the earnings that exceed the salary set for the
11Governor multiplied by the level percentage of payroll used in
12that fiscal year, as determined by the System, to be sufficient
13to bring the total assets of the System up to 90% of the total
14actuarial liabilities of the System by the end of State fiscal
15year 2045. This amount shall be computed by the System on the
16basis of the actuarial assumptions and tables used in the most
17recent actuarial valuation of the System that is available at
18the time of the computation. The System may require the
19employer to provide any pertinent information or
20documentation.
21    Whenever it determines that a payment is or may be required
22under this subsection, the System shall calculate the amount of
23the payment and bill the employer for that amount. The bill
24shall specify the calculations used to determine the amount
25due. If the employer disputes the amount of the bill, it may,
26within 30 days after receipt of the bill, apply to the System

 

 

10000SB0011sam001- 136 -LRB100 06001 RPS 18183 a

1in writing for a recalculation. The application must specify in
2detail the grounds of the dispute. Upon receiving a timely
3application for recalculation, the System shall review the
4application and, if appropriate, recalculate the amount due.
5    The employer contributions required under this subsection
6may be paid in the form of a lump sum within 90 days after
7receipt of the bill. If the employer contributions are not paid
8within 90 days after receipt of the bill, then interest will be
9charged at a rate equal to the System's annual actuarially
10assumed rate of return on investment compounded annually from
11the 91st day after receipt of the bill. Payments must be
12concluded within 3 years after the employer's receipt of the
13bill.
14    (k) The Illinois Community College Board shall adopt rules
15for recommending lists of promotional positions submitted to
16the Board by community colleges and for reviewing the
17promotional lists on an annual basis. When recommending
18promotional lists, the Board shall consider the similarity of
19the positions submitted to those positions recognized for State
20universities by the State Universities Civil Service System.
21The Illinois Community College Board shall file a copy of its
22findings with the System. The System shall consider the
23findings of the Illinois Community College Board when making
24determinations under this Section. The System shall not exclude
25any earnings increases resulting from a promotion when the
26promotion was not submitted by a community college. Nothing in

 

 

10000SB0011sam001- 137 -LRB100 06001 RPS 18183 a

1this subsection (k) shall require any community college to
2submit any information to the Community College Board.
3    (l) For purposes of determining the required State
4contribution to the System, the value of the System's assets
5shall be equal to the actuarial value of the System's assets,
6which shall be calculated as follows:
7    As of June 30, 2008, the actuarial value of the System's
8assets shall be equal to the market value of the assets as of
9that date. In determining the actuarial value of the System's
10assets for fiscal years after June 30, 2008, any actuarial
11gains or losses from investment return incurred in a fiscal
12year shall be recognized in equal annual amounts over the
135-year period following that fiscal year.
14    (m) For purposes of determining the required State
15contribution to the system for a particular year, the actuarial
16value of assets shall be assumed to earn a rate of return equal
17to the system's actuarially assumed rate of return.
18    (n) If Section 15-132.9 is determined to be
19unconstitutional or otherwise invalid by a final unappealable
20decision of an Illinois court or a court of competent
21jurisdiction, then the changes made to this Section by this
22amendatory Act of the 100th General Assembly shall not take
23effect and are repealed by operation of law.
24(Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13;
2599-897, eff. 1-1-17.)
 

 

 

10000SB0011sam001- 138 -LRB100 06001 RPS 18183 a

1    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
2    Sec. 15-157. Employee Contributions.
3    (a) Each participating employee shall make contributions
4towards the retirement benefits payable under the retirement
5program applicable to the employee from each payment of
6earnings applicable to employment under this system on and
7after the date of becoming a participant as follows: Prior to
8September 1, 1949, 3 1/2% of earnings; from September 1, 1949
9to August 31, 1955, 5%; from September 1, 1955 to August 31,
101969, 6%; from September 1, 1969, 6 1/2%. These contributions
11are to be considered as normal contributions for purposes of
12this Article.
13    Each participant who is a police officer or firefighter
14shall make normal contributions of 8% of each payment of
15earnings applicable to employment as a police officer or
16firefighter under this system on or after September 1, 1981,
17unless he or she files with the board within 60 days after the
18effective date of this amendatory Act of 1991 or 60 days after
19the board receives notice that he or she is employed as a
20police officer or firefighter, whichever is later, a written
21notice waiving the retirement formula provided by Rule 4 of
22Section 15-136. This waiver shall be irrevocable. If a
23participant had met the conditions set forth in Section
2415-132.1 prior to the effective date of this amendatory Act of
251991 but failed to make the additional normal contributions
26required by this paragraph, he or she may elect to pay the

 

 

10000SB0011sam001- 139 -LRB100 06001 RPS 18183 a

1additional contributions plus compound interest at the
2effective rate. If such payment is received by the board, the
3service shall be considered as police officer service in
4calculating the retirement annuity under Rule 4 of Section
515-136. While performing service described in clause (i) or
6(ii) of Rule 4 of Section 15-136, a participating employee
7shall be deemed to be employed as a firefighter for the purpose
8of determining the rate of employee contributions under this
9Section.
10    (b) Starting September 1, 1969, each participating
11employee shall make additional contributions of 1/2 of 1% of
12earnings to finance a portion of the cost of the annual
13increases in retirement annuity provided under Section 15-136,
14except that with respect to participants in the self-managed
15plan this additional contribution shall be used to finance the
16benefits obtained under that retirement program. Beginning
17July 1, 2018 or the effective date of the Tier 1 employee's
18election under paragraph (1) of subsection (a) of Section
1915-132.9, whichever is later, each Tier 1 employee who made the
20election under paragraph (1) of subsection (a) of Section
2115-132.9 is no longer required to make contributions under this
22subsection.
23    (c) Except as provided in subsection (c-5), in In addition
24to the amounts described in subsections (a) and (b) of this
25Section, each participating employee shall make contributions
26of 1% of earnings applicable under this system on and after

 

 

10000SB0011sam001- 140 -LRB100 06001 RPS 18183 a

1August 1, 1959. The contributions made under this subsection
2(c) shall be considered as survivor's insurance contributions
3for purposes of this Article if the employee is covered under
4the traditional benefit package, and such contributions shall
5be considered as additional contributions for purposes of this
6Article if the employee is participating in the self-managed
7plan or has elected to participate in the portable benefit
8package and has completed the applicable one-year waiting
9period. Contributions in excess of $80 during any fiscal year
10beginning before August 31, 1969 and in excess of $120 during
11any fiscal year thereafter until September 1, 1971 shall be
12considered as additional contributions for purposes of this
13Article.
14    (c-5) Beginning July 1, 2018 or the effective date of the
15Tier 1 employee's election under paragraph (1) of subsection
16(a) of Section 15-132.9, whichever is later, in lieu of the
17contributions otherwise required under subsection (c), each
18Tier 1 employee who made the election under paragraph (1) of
19subsection (a) of Section 15-132.9 shall make contributions of
200.7% of earnings applicable under this System and each Tier 1
21employee who is a police officer or firefighter who makes
22normal contributions of 8% of each payment of earnings
23applicable to employment as a police officer or firefighter
24under this System and who made the election under paragraph (1)
25of subsection (a) of Section 15-132.9 shall make contributions
26of 0.55% of earnings applicable under this System. The

 

 

10000SB0011sam001- 141 -LRB100 06001 RPS 18183 a

1contributions made under this subsection (c-5) shall be
2considered as survivor's insurance contributions for purposes
3of this Article and such contributions shall be considered as
4additional contributions for purposes of this Article if the
5employee has elected to participate in the portable benefit
6package and has completed the applicable one-year waiting
7period.
8    (d) If the board by board rule so permits and subject to
9such conditions and limitations as may be specified in its
10rules, a participant may make other additional contributions of
11such percentage of earnings or amounts as the participant shall
12elect in a written notice thereof received by the board.
13    (e) That fraction of a participant's total accumulated
14normal contributions, the numerator of which is equal to the
15number of years of service in excess of that which is required
16to qualify for the maximum retirement annuity, and the
17denominator of which is equal to the total service of the
18participant, shall be considered as accumulated additional
19contributions. The determination of the applicable maximum
20annuity and the adjustment in contributions required by this
21provision shall be made as of the date of the participant's
22retirement.
23    (f) Notwithstanding the foregoing, a participating
24employee shall not be required to make contributions under this
25Section after the date upon which continuance of such
26contributions would otherwise cause his or her retirement

 

 

10000SB0011sam001- 142 -LRB100 06001 RPS 18183 a

1annuity to exceed the maximum retirement annuity as specified
2in clause (1) of subsection (c) of Section 15-136.
3    (g) A participant may make contributions for the purchase
4of service credit under this Article; however, only a
5participating employee may make optional contributions under
6subsection (b) of Section 15-157.1 of this Article.
7    (h) A Tier 2 member shall not make contributions on
8earnings that exceed the limitation as prescribed under
9subsection (b) of Section 15-111 of this Article.
10(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
 
11    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 15-165. To certify amounts and submit vouchers.
15    (a) The Board shall certify to the Governor on or before
16November 15 of each year until November 15, 2011 the
17appropriation required from State funds for the purposes of
18this System for the following fiscal year. The certification
19under this subsection (a) shall include a copy of the actuarial
20recommendations upon which it is based and shall specifically
21identify the System's projected State normal cost for that
22fiscal year and the projected State cost for the self-managed
23plan for that fiscal year.
24    On or before May 1, 2004, the Board shall recalculate and
25recertify to the Governor the amount of the required State

 

 

10000SB0011sam001- 143 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 144 -LRB100 06001 RPS 18183 a

1certification of the required State contributions. On or before
2January 15, 2013 and each January 15 thereafter, the Board
3shall certify to the Governor and the General Assembly the
4amount of the required State contribution for the next fiscal
5year. The Board's certification must note, in a written
6response to the State Actuary, any deviations from the State
7Actuary's recommended changes, the reason or reasons for not
8following the State Actuary's recommended changes, and the
9fiscal impact of not following the State Actuary's recommended
10changes on the required State contribution.
11    (a-10) As soon as practical after the effective date of
12this amendatory Act of the 100th General Assembly, the State
13Actuary and the Board shall recalculate and recertify to the
14Governor and the General Assembly the amount of the State
15contribution to the System for State fiscal year 2018, taking
16into account the changes in required State contributions made
17by this amendatory Act of the 100th General Assembly.
18    (a-15) On or before May 1, 2018, the Board shall
19recalculate and recertify to the Governor and the General
20Assembly the amount of the required State contribution to the
21System for State fiscal year 2019, taking into account the
22effect on the System's liabilities of the elections made under
23Section 15-132.9.
24    On or before October 1, 2018, the Board shall recalculate
25and recertify to the Governor and the General Assembly the
26amount of the required State contribution to the System for

 

 

10000SB0011sam001- 145 -LRB100 06001 RPS 18183 a

1State fiscal year 2019, taking into account the reduction
2specified under item (3) of subsection (a-1) of Section 15-155.
3    (b) The Board shall certify to the State Comptroller or
4employer, as the case may be, from time to time, by its
5chairperson and secretary, with its seal attached, the amounts
6payable to the System from the various funds.
7    (c) Beginning in State fiscal year 1996, on or as soon as
8possible after the 15th day of each month the Board shall
9submit vouchers for payment of State contributions to the
10System, in a total monthly amount of one-twelfth of the
11required annual State contribution certified under subsection
12(a). From the effective date of this amendatory Act of the 93rd
13General Assembly through June 30, 2004, the Board shall not
14submit vouchers for the remainder of fiscal year 2004 in excess
15of the fiscal year 2004 certified contribution amount
16determined under this Section after taking into consideration
17the transfer to the System under subsection (b) of Section
186z-61 of the State Finance Act. These vouchers shall be paid by
19the State Comptroller and Treasurer by warrants drawn on the
20funds appropriated to the System for that fiscal year.
21    If in any month the amount remaining unexpended from all
22other appropriations to the System for the applicable fiscal
23year (including the appropriations to the System under Section
248.12 of the State Finance Act and Section 1 of the State
25Pension Funds Continuing Appropriation Act) is less than the
26amount lawfully vouchered under this Section, the difference

 

 

10000SB0011sam001- 146 -LRB100 06001 RPS 18183 a

1shall be paid from the General Revenue Fund under the
2continuing appropriation authority provided in Section 1.1 of
3the State Pension Funds Continuing Appropriation Act.
4    (d) So long as the payments received are the full amount
5lawfully vouchered under this Section, payments received by the
6System under this Section shall be applied first toward the
7employer contribution to the self-managed plan established
8under Section 15-158.2. Payments shall be applied second toward
9the employer's portion of the normal costs of the System, as
10defined in subsection (f) of Section 15-155. The balance shall
11be applied toward the unfunded actuarial liabilities of the
12System.
13    (e) In the event that the System does not receive, as a
14result of legislative enactment or otherwise, payments
15sufficient to fully fund the employer contribution to the
16self-managed plan established under Section 15-158.2 and to
17fully fund that portion of the employer's portion of the normal
18costs of the System, as calculated in accordance with Section
1915-155(a-1), then any payments received shall be applied
20proportionately to the optional retirement program established
21under Section 15-158.2 and to the employer's portion of the
22normal costs of the System, as calculated in accordance with
23Section 15-155(a-1).
24(Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
 
25    (40 ILCS 5/15-185.5 new)

 

 

10000SB0011sam001- 147 -LRB100 06001 RPS 18183 a

1    Sec. 15-185.5. Accelerated pension benefit payment.
2    (a) As used in this Section:
3    "Eligible person" means a person who:
4        (1) has terminated service;
5        (2) has accrued sufficient service credit to be
6    eligible to receive a retirement annuity under this
7    Article;
8        (3) has not received any retirement annuity under this
9    Article;
10        (4) does not have a QILDRO in effect against him or her
11    under this Article; and
12        (5) is not a participant in the self-managed plan under
13    Section 15-158.2.
14    "Pension benefit" means the benefits under this Article, or
15Article 1 as it relates to those benefits, including any
16anticipated annual increases, that an eligible person is
17entitled to upon attainment of the applicable retirement age.
18"Pension benefit" also includes applicable survivor's or
19disability benefits.
20    (b) Before January 1, 2018, and annually thereafter, the
21System shall calculate, using actuarial tables and other
22assumptions adopted by the Board, the net present value of
23pension benefits for each eligible person and shall offer each
24eligible person the opportunity to irrevocably elect to receive
25an amount determined by the System to be equal to 70% of the
26net present value of his or her pension benefits in lieu of

 

 

10000SB0011sam001- 148 -LRB100 06001 RPS 18183 a

1receiving any pension benefit. The offer shall specify the
2dollar amount that the eligible person will receive if he or
3she so elects and shall expire when a subsequent offer is made
4to an eligible person or when the System determines that 10% of
5eligible persons in that year have made the election under this
6subsection, whichever occurs first. The System shall make a
7good faith effort to contact every eligible person to notify
8him or her of the election and of the amount of the accelerated
9pension benefit payment.
10    Until the System determines that 10% of eligible persons in
11that year have made the election under this subsection, an
12eligible person may irrevocably elect to receive an accelerated
13pension benefit payment in the amount that the System offers
14under this subsection in lieu of receiving any pension benefit.
15A person who elects to receive an accelerated pension benefit
16payment under this Section may not elect to proceed under the
17Retirement Systems Reciprocal Act with respect to service under
18this Article.
19    (c) A person's credits and creditable service under this
20Article shall be terminated upon the person's receipt of an
21accelerated pension benefit payment under this Section, and no
22other benefit shall be paid under this Article based on those
23terminated credits and creditable service, including any
24retirement, survivor, or other benefit; except that to the
25extent that participation, benefits, or premiums under the
26State Employees Group Insurance Act of 1971 are based on the

 

 

10000SB0011sam001- 149 -LRB100 06001 RPS 18183 a

1amount of service credit, the terminated service credit shall
2be used for that purpose.
3    (d) If a person who has received an accelerated pension
4benefit payment under this Section returns to active service
5under this Article, then:
6        (1) Any benefits under the System earned as a result of
7    that return to active service shall be based solely on the
8    person's credits and creditable service arising from the
9    return to active service.
10        (2) The accelerated pension benefit payment may not be
11    repaid to the System, and the terminated credits and
12    creditable service may not under any circumstances be
13    reinstated.
14    (e) As a condition of receiving an accelerated pension
15benefit payment, an eligible person must have another
16retirement plan or account qualified under the Internal Revenue
17Code of 1986, as amended, for the accelerated pension benefit
18payment to be rolled into. The accelerated pension benefit
19payment under this Section may be subject to withholding or
20payment of applicable taxes, but to the extent permitted by
21federal law, a person who receives an accelerated pension
22benefit payment under this Section must direct the System to
23pay all of that payment as a rollover into another retirement
24plan or account qualified under the Internal Revenue Code of
251986, as amended.
26    (f) Before January 1, 2019 and every January 1 thereafter,

 

 

10000SB0011sam001- 150 -LRB100 06001 RPS 18183 a

1the Board shall certify to the Illinois Finance Authority and
2the General Assembly the amount by which the total amount of
3accelerated pension benefit payments made under this Section
4exceed the amount appropriated to the System for the purpose of
5making those payments.
6    (g) The Board shall adopt any rules necessary to implement
7this Section.
8    (h) No provision of this Section shall be interpreted in a
9way that would cause the applicable System to cease to be a
10qualified plan under the Internal Revenue Code of 1986.
11    (i) Notwithstanding any other provision of this Section, in
12no case shall the total amount of accelerated pension benefit
13payments paid under this Section, Section 14-147.5, and Section
1416-190.5 cause the Illinois Finance Authority to issue more
15than the $250,000,000 of State Pension Obligation Acceleration
16Bonds authorized in subsection (c-5) of Section 801-40 of the
17Illinois Finance Authority Act.
 
18    (40 ILCS 5/15-198)
19    (Text of Section WITHOUT the changes made by P.A. 98-599,
20which has been held unconstitutional)
21    Sec. 15-198. Application and expiration of new benefit
22increases.
23    (a) As used in this Section, "new benefit increase" means
24an increase in the amount of any benefit provided under this
25Article, or an expansion of the conditions of eligibility for

 

 

10000SB0011sam001- 151 -LRB100 06001 RPS 18183 a

1any benefit under this Article, that results from an amendment
2to this Code that takes effect after the effective date of this
3amendatory Act of the 94th General Assembly. "New benefit
4increase", however, does not include any benefit increase
5resulting from the changes made to this Article by this
6amendatory Act of the 100th General Assembly.
7    (b) Notwithstanding any other provision of this Code or any
8subsequent amendment to this Code, every new benefit increase
9is subject to this Section and shall be deemed to be granted
10only in conformance with and contingent upon compliance with
11the provisions of this Section.
12    (c) The Public Act enacting a new benefit increase must
13identify and provide for payment to the System of additional
14funding at least sufficient to fund the resulting annual
15increase in cost to the System as it accrues.
16    Every new benefit increase is contingent upon the General
17Assembly providing the additional funding required under this
18subsection. The Commission on Government Forecasting and
19Accountability shall analyze whether adequate additional
20funding has been provided for the new benefit increase and
21shall report its analysis to the Public Pension Division of the
22Department of Insurance Financial and Professional Regulation.
23A new benefit increase created by a Public Act that does not
24include the additional funding required under this subsection
25is null and void. If the Public Pension Division determines
26that the additional funding provided for a new benefit increase

 

 

10000SB0011sam001- 152 -LRB100 06001 RPS 18183 a

1under this subsection is or has become inadequate, it may so
2certify to the Governor and the State Comptroller and, in the
3absence of corrective action by the General Assembly, the new
4benefit increase shall expire at the end of the fiscal year in
5which the certification is made.
6    (d) Every new benefit increase shall expire 5 years after
7its effective date or on such earlier date as may be specified
8in the language enacting the new benefit increase or provided
9under subsection (c). This does not prevent the General
10Assembly from extending or re-creating a new benefit increase
11by law.
12    (e) Except as otherwise provided in the language creating
13the new benefit increase, a new benefit increase that expires
14under this Section continues to apply to persons who applied
15and qualified for the affected benefit while the new benefit
16increase was in effect and to the affected beneficiaries and
17alternate payees of such persons, but does not apply to any
18other person, including without limitation a person who
19continues in service after the expiration date and did not
20apply and qualify for the affected benefit while the new
21benefit increase was in effect.
22(Source: P.A. 94-4, eff. 6-1-05.)
 
23    (40 ILCS 5/15-200.1 new)
24    Sec. 15-200.1. Defined contribution plan.
25    (a) By July 1, 2018, the System shall prepare and implement

 

 

10000SB0011sam001- 153 -LRB100 06001 RPS 18183 a

1a voluntary defined contribution plan for up to 5% of eligible
2active Tier 1 employees. The System shall determine the 5% cap
3by the number of active Tier 1 employees on the effective date
4of this Section. The defined contribution plan developed under
5this Section shall be a plan that aggregates employer and
6employee contributions in individual participant accounts
7which, after meeting any other requirements, are used for
8payouts after retirement in accordance with this Section and
9any other applicable laws.
10    As used in this Section, "defined benefit plan" means the
11retirement plan available under this Article to Tier 1
12employees who have not made the election authorized under this
13Section.
14        (1) Under the defined contribution plan, an active Tier
15    1 employee of this System could elect to cease accruing
16    benefits in the defined benefit plan under this Article and
17    begin accruing benefits for future service in the defined
18    contribution plan. Service credit under the defined
19    contribution plan may be used for determining retirement
20    eligibility under the defined benefit plan. An active Tier
21    1 employee who elects to cease accruing benefits in his or
22    her defined benefit plan shall be prohibited from
23    purchasing service credit on or after the date of his or
24    her election. A Tier 1 employee making the irrevocable
25    election provided under this Section shall not receive
26    interest accruals to his or her Rule 2 benefit on or after

 

 

10000SB0011sam001- 154 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 155 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 156 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 157 -LRB100 06001 RPS 18183 a

1whether the employee should exercise the option. The System
2shall inform Tier 1 employees who are eligible to participate
3in the defined contribution plan that they may also wish to
4obtain information and counsel relating to their option from
5any other available source, including but not limited to labor
6organizations, private counsel, and financial advisors.
7    (e) In no event shall the System, its staff, its authorized
8representatives, or the Board be liable for any information
9given to an employee under this Section. The System may
10coordinate with the Illinois Department of Central Management
11Services and other retirement systems administering a defined
12contribution plan in accordance with this amendatory Act of the
13100th General Assembly to provide information concerning the
14impact of the option set forth in this Section.
15    (f) Notwithstanding any other provision of this Section, no
16person shall begin participating in the defined contribution
17plan until it has attained qualified plan status and received
18all necessary approvals from the U.S. Internal Revenue Service.
19    (g) The System shall report on its progress under this
20Section, including the available details of the defined
21contribution plan and the System's plans for informing eligible
22Tier 1 employees about the plan, to the Governor and the
23General Assembly on or before January 15, 2018.
24    (h) If an active Tier 1 employee has not made an election
25under Section 15-134.5 of this Code, then the plan prescribed
26under this Section shall not apply to that Tier 1 employee and

 

 

10000SB0011sam001- 158 -LRB100 06001 RPS 18183 a

1that Tier 1 employee shall remain eligible to make the election
2prescribed under Section 15-134.5.
3    (i) The intent of this amendatory Act of the 100th General
4Assembly is to ensure that the State's normal cost of
5participation in the defined contribution plan is similar, and
6if possible equal, to the State's normal cost of participation
7in the defined benefit plan, unless a lower State's normal cost
8is necessary to ensure cost neutrality.
9    (j) If Section 15-132.9 is determined to be
10unconstitutional or otherwise invalid by a final unappealable
11decision of an Illinois court or a court of competent
12jurisdiction, then this Section shall not take effect and is
13repealed by operation of law.
 
14    (40 ILCS 5/15-201.1 new)
15    Sec. 15-201.1. Defined contribution plan; termination. If
16the defined contribution plan is terminated or becomes
17inoperative pursuant to law, then each participant in the plan
18shall automatically be deemed to have been a contributing Tier
191 employee participating in the System's defined benefit plan
20during the time in which he or she participated in the defined
21contribution plan, and for that purpose the System shall be
22entitled to recover the amounts in the participant's defined
23contribution accounts.
 
24    (40 ILCS 5/16-107.1 new)

 

 

10000SB0011sam001- 159 -LRB100 06001 RPS 18183 a

1    Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A
2teacher under this Article who first became a member or
3participant before January 1, 2011 under any reciprocal
4retirement system or pension fund established under this Code
5other than a retirement system or pension fund established
6under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
7the purposes of the election under Section 16-122.9, "Tier 1
8employee" does not include a teacher under this Article who
9would qualify as a Tier 1 employee but who has made an
10irrevocable election on or before June 1, 2017 to retire from
11service pursuant to the terms of a collective bargaining
12agreement in effect on June 1, 2017, excluding any extension,
13amendment, or renewal of that agreement on or after that date,
14and has notified the System of that election.
 
15    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
16    (Text of Section WITHOUT the changes made by P.A. 98-599,
17which has been held unconstitutional)
18    Sec. 16-121. Salary. "Salary": The actual compensation
19received by a teacher during any school year and recognized by
20the system in accordance with rules of the board. For purposes
21of this Section, "school year" includes the regular school term
22plus any additional period for which a teacher is compensated
23and such compensation is recognized by the rules of the board.
24    Notwithstanding any other provision of this Section,
25"salary" does not include any future increase in income that is

 

 

10000SB0011sam001- 160 -LRB100 06001 RPS 18183 a

1offered by an employer for service as a Tier 1 employee under
2this Article pursuant to the condition set forth in subsection
3(c) of Section 16-122.9 and accepted under that condition by a
4Tier 1 employee who has made the election under paragraph (2)
5of subsection (a) of Section 16-122.9.
6    Notwithstanding any other provision of this Section,
7"salary" does not include any consideration payment made to a
8Tier 1 employee.
9(Source: P.A. 84-1028.)
 
10    (40 ILCS 5/16-121.1 new)
11    Sec. 16-121.1. Future increase in income. "Future increase
12in income" means an increase in income in any form offered by
13an employer to a Tier 1 employee for service under this Article
14after June 30, 2018 that qualifies as "salary", as defined in
15Section 16-121, or would qualify as "salary" but for the fact
16that it was offered to and accepted by a Tier 1 employee under
17the condition set forth in subsection (c) of Section 16-122.9.
18The term "future increase in income" does not include an
19increase in income in any form that is paid to a Tier 1
20employee under an employment contract or a collective
21bargaining agreement that is in effect on the effective date of
22this Section, but does include an increase in income in any
23form pursuant to an extension, amendment, or renewal of any
24such employment contract or collective bargaining agreement on
25or after the effective date of this Section.
 

 

 

10000SB0011sam001- 161 -LRB100 06001 RPS 18183 a

1    (40 ILCS 5/16-122.9 new)
2    Sec. 16-122.9. Election by Tier 1 employees.
3    (a) Each active Tier 1 employee shall make an irrevocable
4election either:
5        (1) to agree to delay his or her eligibility for
6    automatic annual increases in retirement annuity as
7    provided in subsection (a-1) of Section 16-133.1 or
8    subsection (b-1) of Section 16-136.1, whichever is
9    applicable, and to have the amount of the automatic annual
10    increases in his or her retirement annuity and survivor
11    benefit that are otherwise provided for in this Article
12    calculated, instead, as provided in subsection (a-1) of
13    Section 16-133.1 or subsection (b-1) of Section 16-136.1,
14    whichever is applicable; or
15        (2) to not agree to paragraph (1) of this subsection.
16    The election required under this subsection (a) shall be
17made by each active Tier 1 employee no earlier than January 1,
182018 and no later than March 31, 2018, except that:
19        (i) a person who becomes a Tier 1 employee under this
20    Article on or after February 1, 2018 must make the election
21    under this subsection (a) within 60 days after becoming a
22    Tier 1 employee; and
23        (ii) a person who returns to active service as a Tier 1
24    employee under this Article on or after February 1, 2018
25    and has not yet made an election under this Section must

 

 

10000SB0011sam001- 162 -LRB100 06001 RPS 18183 a

1    make the election under this subsection (a) within 60 days
2    after returning to active service as a Tier 1 employee.
3    If a Tier 1 employee fails for any reason to make a
4required election under this subsection within the time
5specified, then the employee shall be deemed to have made the
6election under paragraph (2) of this subsection.
7    (a-5) If this Section is enjoined or stayed by an Illinois
8court or a court of competent jurisdiction pending the entry of
9a final and unappealable decision, and this Section is
10determined to be constitutional or otherwise valid by a final
11unappealable decision of an Illinois court or a court of
12competent jurisdiction, then the election procedure set forth
13in subsection (a) of this Section shall commence on the 180th
14calendar day after the date of the issuance of the final
15unappealable decision and shall conclude at the end of the
16270th calendar day after that date.
17    (a-10) All elections under subsection (a) that are made or
18deemed to be made before July 1, 2018 shall take effect on July
191, 2018. Elections that are made or deemed to be made on or
20after July 1, 2018 shall take effect on the first day of the
21month following the month in which the election is made or
22deemed to be made.
23    (b) As adequate and legal consideration provided under this
24amendatory Act of the 100th General Assembly for making an
25election under paragraph (1) of subsection (a) of this Section,
26an employer shall be expressly and irrevocably prohibited from

 

 

10000SB0011sam001- 163 -LRB100 06001 RPS 18183 a

1offering any future increases in income to a Tier 1 employee
2who has made an election under paragraph (1) of subsection (a)
3of this Section on the condition of not constituting salary
4under Section 16-121.
5    As adequate and legal consideration provided under this
6amendatory Act of the 100th General Assembly for making an
7election under paragraph (1) of subsection (a) of this Section,
8each Tier 1 employee who has made an election under paragraph
9(1) of subsection (a) of this Section shall receive a
10consideration payment equal to 10% of the contributions made by
11or on behalf of the employee under paragraphs (1), (2), and (3)
12of subsection (a) of Section 16-152 before the effective date
13of that election. The State Comptroller shall pay the
14consideration payment to the Tier 1 employee out of funds
15appropriated for that purpose under Section 1.9 of the State
16Pension Funds Continuing Appropriation Act. The System shall
17calculate the amount of each consideration payment and shall
18certify to the State Comptroller the amount of the
19consideration payment, together with the name, address, and any
20other available payment information of the Tier 1 employee as
21found in the records of the System.
22    (c) A Tier 1 employee who makes the election under
23paragraph (2) of subsection (a) of this Section shall not be
24subject to paragraph (1) of subsection (a) of this Section.
25However, each future increase in income offered by an employer
26under this Article to a Tier 1 employee who has made the

 

 

10000SB0011sam001- 164 -LRB100 06001 RPS 18183 a

1election under paragraph (2) of subsection (a) of this Section
2shall be offered by the employer expressly and irrevocably on
3the condition of not constituting salary under Section 16-121
4and that the Tier 1 employee's acceptance of the offered future
5increase in income shall constitute his or her agreement to
6that condition.
7    (d) The System shall make a good faith effort to contact
8each Tier 1 employee subject to this Section. The System shall
9mail information describing the required election to each Tier
101 employee by United States Postal Service mail to his or her
11last known address on file with the System. If the Tier 1
12employee is not responsive to other means of contact, it is
13sufficient for the System to publish the details of any
14required elections on its website or to publish those details
15in a regularly published newsletter or other existing public
16forum.
17    Tier 1 employees who are subject to this Section shall be
18provided with an election packet containing information
19regarding their options, as well as the forms necessary to make
20the required election. Upon request, the System shall offer
21Tier 1 employees an opportunity to receive information from the
22System before making the required election. The information may
23consist of video materials, group presentations, individual
24consultation with a member or authorized representative of the
25System in person or by telephone or other electronic means, or
26any combination of those methods. The System shall not provide

 

 

10000SB0011sam001- 165 -LRB100 06001 RPS 18183 a

1advice or counseling with respect to which election a Tier 1
2employee should make or specific to the legal or tax
3circumstances of or consequences to the Tier 1 employee.
4    The System shall inform Tier 1 employees in the election
5packet required under this subsection that the Tier 1 employee
6may also wish to obtain information and counsel relating to the
7election required under this Section from any other available
8source, including, but not limited to, labor organizations and
9private counsel.
10    In no event shall the System, its staff, or the Board be
11held liable for any information given to a member regarding the
12elections under this Section. The System shall coordinate with
13the Illinois Department of Central Management Services and each
14other retirement system administering an election in
15accordance with this amendatory Act of the 100th General
16Assembly to provide information concerning the impact of the
17election set forth in this Section.
18    (e) Notwithstanding any other provision of law, an employer
19under this Article is required to offer each future increase in
20income expressly and irrevocably on the condition of not
21constituting "salary" under Section 16-121 to any Tier 1
22employee who has made an election under paragraph (2) of
23subsection (a) of this Section. The offer shall also provide
24that the Tier 1 employee's acceptance of the offered future
25increase in income shall constitute his or her agreement to the
26condition set forth in this subsection.

 

 

10000SB0011sam001- 166 -LRB100 06001 RPS 18183 a

1    For purposes of legislative intent, the condition set forth
2in this subsection shall be construed in a manner that ensures
3that the condition is not violated or circumvented through any
4contrivance of any kind.
5    (f) A member's election under this Section is not a
6prohibited election under subdivision (j)(1) of Section 1-119
7of this Code.
8    (g) No provision of this Section shall be interpreted in a
9way that would cause the System to cease to be a qualified plan
10under Section 401(a) of the Internal Revenue Code of 1986.
11    (h) If an election created by this amendatory Act in any
12other Article of this Code or any change deriving from that
13election is determined to be unconstitutional or otherwise
14invalid by a final unappealable decision of an Illinois court
15or a court of competent jurisdiction, the invalidity of that
16provision shall not in any way affect the validity of this
17Section or the changes deriving from the election required
18under this Section.
 
19    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
20    (Text of Section WITHOUT the changes made by P.A. 98-599,
21which has been held unconstitutional)
22    Sec. 16-133.1. Automatic annual increase in annuity.
23    (a) Each member with creditable service and retiring on or
24after August 26, 1969 is entitled to the automatic annual
25increases in annuity provided under this Section while

 

 

10000SB0011sam001- 167 -LRB100 06001 RPS 18183 a

1receiving a retirement annuity or disability retirement
2annuity from the system.
3    Except as otherwise provided in subsection (a-1), an An
4annuitant shall first be entitled to an initial increase under
5this Section on the January 1 next following the first
6anniversary of retirement, or January 1 of the year next
7following attainment of age 61, whichever is later. At such
8time, the system shall pay an initial increase determined as
9follows:
10        (1) 1.5% of the originally granted retirement annuity
11    or disability retirement annuity multiplied by the number
12    of years elapsed, if any, from the date of retirement until
13    January 1, 1972, plus
14        (2) 2% of the originally granted annuity multiplied by
15    the number of years elapsed, if any, from the date of
16    retirement or January 1, 1972, whichever is later, until
17    January 1, 1978, plus
18        (3) 3% of the originally granted annuity multiplied by
19    the number of years elapsed from the date of retirement or
20    January 1, 1978, whichever is later, until the effective
21    date of the initial increase.
22However, the initial annual increase calculated under this
23Section for the recipient of a disability retirement annuity
24granted under Section 16-149.2 shall be reduced by an amount
25equal to the total of all increases in that annuity received
26under Section 16-149.5 (but not exceeding 100% of the amount of

 

 

10000SB0011sam001- 168 -LRB100 06001 RPS 18183 a

1the initial increase otherwise provided under this Section).
2    Except as otherwise provided in subsection (a-1),
3following Following the initial increase, automatic annual
4increases in annuity shall be payable on each January 1
5thereafter during the lifetime of the annuitant, determined as
6a percentage of the originally granted retirement annuity or
7disability retirement annuity for increases granted prior to
8January 1, 1990, and calculated as a percentage of the total
9amount of annuity, including previous increases under this
10Section, for increases granted on or after January 1, 1990, as
11follows: 1.5% for periods prior to January 1, 1972, 2% for
12periods after December 31, 1971 and prior to January 1, 1978,
13and 3% for periods after December 31, 1977.
14    (a-1) Notwithstanding any other provision of this Article,
15for a Tier 1 employee who made the election under paragraph (1)
16of subsection (a) of Section 16-122.9:
17        (1) The initial increase in retirement annuity under
18    this Section shall occur on the January 1 occurring either
19    on or after the attainment of age 67 or the fifth
20    anniversary of the annuity start date, whichever is
21    earlier.
22        (2) The amount of each automatic annual increase in
23    retirement annuity and survivor benefit occurring on or
24    after the effective date of that election shall be
25    calculated as a percentage of the originally granted
26    retirement annuity or survivor benefit, equal to 3% or

 

 

10000SB0011sam001- 169 -LRB100 06001 RPS 18183 a

1    one-half the annual unadjusted percentage increase (but
2    not less than zero) in the consumer price index-u for the
3    12 months ending with the September preceding each November
4    1, whichever is less. If the annual unadjusted percentage
5    change in the consumer price index-u for the 12 months
6    ending with the September preceding each November 1 is zero
7    or there is a decrease, then the annuity shall not be
8    increased.
9    For the purposes of this Section, "consumer price index-u"
10means the index published by the Bureau of Labor Statistics of
11the United States Department of Labor that measures the average
12change in prices of goods and services purchased by all urban
13consumers, United States city average, all items, 1982-84 =
14100. The new amount resulting from each annual adjustment shall
15be determined by the Public Pension Division of the Department
16of Insurance and made available to the board of the retirement
17system by November 1 of each year.
18    (b) The automatic annual increases in annuity provided
19under this Section shall not be applicable unless a member has
20made contributions toward such increases for a period
21equivalent to one full year of creditable service. If a member
22contributes for service performed after August 26, 1969 but the
23member becomes an annuitant before such contributions amount to
24one full year's contributions based on the salary at the date
25of retirement, he or she may pay the necessary balance of the
26contributions to the system and be eligible for the automatic

 

 

10000SB0011sam001- 170 -LRB100 06001 RPS 18183 a

1annual increases in annuity provided under this Section.
2    (c) Each member shall make contributions toward the cost of
3the automatic annual increases in annuity as provided under
4Section 16-152.
5    (d) An annuitant receiving a retirement annuity or
6disability retirement annuity on July 1, 1969, who subsequently
7re-enters service as a teacher is eligible for the automatic
8annual increases in annuity provided under this Section if he
9or she renders at least one year of creditable service
10following the latest re-entry.
11    (e) In addition to the automatic annual increases in
12annuity provided under this Section, an annuitant who meets the
13service requirements of this Section and whose retirement
14annuity or disability retirement annuity began on or before
15January 1, 1971 shall receive, on January 1, 1981, an increase
16in the annuity then being paid of one dollar per month for each
17year of creditable service. On January 1, 1982, an annuitant
18whose retirement annuity or disability retirement annuity
19began on or before January 1, 1977 shall receive an increase in
20the annuity then being paid of one dollar per month for each
21year of creditable service.
22    On January 1, 1987, any annuitant whose retirement annuity
23began on or before January 1, 1977, shall receive an increase
24in the monthly retirement annuity equal to 8 per year of
25creditable service times the number of years that have elapsed
26since the annuity began.

 

 

10000SB0011sam001- 171 -LRB100 06001 RPS 18183 a

1(Source: P.A. 91-927, eff. 12-14-00.)
 
2    (40 ILCS 5/16-136.1)  (from Ch. 108 1/2, par. 16-136.1)
3    (Text of Section WITHOUT the changes made by P.A. 98-599,
4which has been held unconstitutional)
5    Sec. 16-136.1. Annual increase for certain annuitants.
6    (a) Any annuitant receiving a retirement annuity on June
730, 1969 and any member retiring after June 30, 1969 shall be
8eligible for the annual increases provided under this Section
9provided the annuitant is ineligible for the automatic annual
10increase in annuity provided under Section 16-133.1, and
11provided further that (1) retirement occurred at age 55 or over
12and was based on 5 or more years of creditable service or (2)
13if retirement occurred prior to age 55, the retirement annuity
14was based on 20 or more years of creditable service.
15    (b) Except as otherwise provided in subsection (b-1), an An
16annuitant entitled to increases under this Section shall be
17entitled to the initial increase as of the later of: (1)
18January 1 following attainment of age 65, (2) January 1
19following the first anniversary of retirement, or (3) the first
20day of the month following receipt of the required qualifying
21contribution from the annuitant. The initial monthly increase
22shall be computed on the basis of the period elapsed between
23the later of the date of last retirement or attainment of age
2450 and the date of qualification for the initial increase, at
25the rate of 1 1/2% of the original monthly retirement annuity

 

 

10000SB0011sam001- 172 -LRB100 06001 RPS 18183 a

1per year for periods prior to September 1, 1971, and at the
2rate of 2% per year for periods between September 1, 1971 and
3September 1, 1978, and at the rate of 3% per year for periods
4thereafter.
5    Except as otherwise provided in subsection (b-1), if
6applicable, an An annuitant who has received an initial
7increase under this Section, shall be entitled, on each January
81 following the granting of the initial increase, to an
9increase of 3% of the original monthly retirement annuity for
10increases granted prior to January 1, 1990, and equal to 3% of
11the total annuity, including previous increases under this
12Section, for increases granted on or after January 1, 1990. The
13original monthly retirement annuity for computations under
14this subsection (b) shall be considered to be $83.34 for any
15annuitant entitled to benefits under Section 16-134. The
16minimum original disability retirement annuity for
17computations under this subsection (b) shall be considered to
18be $33.34 per month for any annuitant retired on account of
19disability.
20    (b-1) Notwithstanding any other provision of this Article,
21for a Tier 1 employee who made the election under paragraph (1)
22of subsection (a) of Section 16-122.9:
23        (1) The initial increase in retirement annuity under
24    this Section shall occur on the January 1 occurring either
25    on or after the attainment of age 67 or the fifth
26    anniversary of the annuity start date, whichever is

 

 

10000SB0011sam001- 173 -LRB100 06001 RPS 18183 a

1    earlier.
2        (2) The amount of each automatic annual increase in
3    retirement annuity or survivor benefit occurring on or
4    after the effective date of that election shall be
5    calculated as a percentage of the originally granted
6    retirement annuity or survivor benefit, equal to 3% or
7    one-half the annual unadjusted percentage increase (but
8    not less than zero) in the consumer price index-u for the
9    12 months ending with the September preceding each November
10    1, whichever is less. If the annual unadjusted percentage
11    change in the consumer price index-u for the 12 months
12    ending with the September preceding each November 1 is zero
13    or there is a decrease, then the annuity shall not be
14    increased.
15    For the purposes of this Section, "consumer price index-u"
16means the index published by the Bureau of Labor Statistics of
17the United States Department of Labor that measures the average
18change in prices of goods and services purchased by all urban
19consumers, United States city average, all items, 1982-84 =
20100. The new amount resulting from each annual adjustment shall
21be determined by the Public Pension Division of the Department
22of Insurance and made available to the board of the retirement
23system by November 1 of each year.
24    (c) An annuitant who otherwise qualifies for annual
25increases under this Section must make a one-time payment of 1%
26of the monthly final average salary for each full year of the

 

 

10000SB0011sam001- 174 -LRB100 06001 RPS 18183 a

1creditable service forming the basis of the retirement annuity
2or, if the retirement annuity was not computed using final
3average salary, 1% of the original monthly retirement annuity
4for each full year of service forming the basis of the
5retirement annuity.
6    (d) In addition to other increases which may be provided by
7this Section, regardless of creditable service, annuitants not
8meeting the service requirements of Section 16-133.1 and whose
9retirement annuity began on or before January 1, 1971 shall
10receive, on January 1, 1981, an increase in the retirement
11annuity then being paid of one dollar per month for each year
12of creditable service forming the basis of the retirement
13allowance. On January 1, 1982, annuitants whose retirement
14annuity began on or before January 1, 1977, shall receive an
15increase in the retirement annuity then being paid of one
16dollar per month for each year of creditable service.
17    On January 1, 1987, any annuitant whose retirement annuity
18began on or before January 1, 1977, shall receive an increase
19in the monthly retirement annuity equal to 8 per year of
20creditable service times the number of years that have elapsed
21since the annuity began.
22(Source: P.A. 86-273.)
 
23    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
24    (Text of Section WITHOUT the changes made by P.A. 98-599,
25which has been held unconstitutional)

 

 

10000SB0011sam001- 175 -LRB100 06001 RPS 18183 a

1    Sec. 16-152. Contributions by members.
2    (a) Except as otherwise provided in subsection (a-5), each
3Each member shall make contributions for membership service to
4this System as follows:
5        (1) Effective July 1, 1998, contributions of 7.50% of
6    salary towards the cost of the retirement annuity. Such
7    contributions shall be deemed "normal contributions".
8        (2) Effective July 1, 1969, contributions of 1/2 of 1%
9    of salary toward the cost of the automatic annual increase
10    in retirement annuity provided under Section 16-133.1.
11        (3) Effective July 24, 1959, contributions of 1% of
12    salary towards the cost of survivor benefits. Such
13    contributions shall not be credited to the individual
14    account of the member and shall not be subject to refund
15    except as provided under Section 16-143.2.
16        (4) Effective July 1, 2005, contributions of 0.40% of
17    salary toward the cost of the early retirement without
18    discount option provided under Section 16-133.2. This
19    contribution shall cease upon termination of the early
20    retirement without discount option as provided in Section
21    16-133.2.
22    (a-5) Beginning July 1, 2018 or the effective date of the
23Tier 1 employee's election under paragraph (1) of subsection
24(a) of Section 16-122.9, whichever is later, in lieu of the
25contributions otherwise required under subsection (a), each
26Tier 1 employee who made the election under paragraph (1) of

 

 

10000SB0011sam001- 176 -LRB100 06001 RPS 18183 a

1subsection (a) of Section 16-122.9 shall make contributions as
2follows:
3        (1) Contributions of 7.50% of salary towards the cost
4    of the retirement annuity. Such contributions shall be
5    deemed "normal contributions".
6        (2) Contributions of 0.60% towards the cost of survivor
7    benefits. Such contributions shall not be credited to the
8    individual account of the member and shall not be subject
9    to refund except as provided in Section 16-143.2.
10        (3) Contributions of 0.40% of salary toward the cost of
11    the early retirement without discount option provided
12    under Section 16-133.2. This contribution shall cease upon
13    termination of the early retirement without discount
14    option as provided in Section 16-133.2.
15    (b) The minimum required contribution for any year of
16full-time teaching service shall be $192.
17    (c) Contributions shall not be required of any annuitant
18receiving a retirement annuity who is given employment as
19permitted under Section 16-118 or 16-150.1.
20    (d) A person who (i) was a member before July 1, 1998, (ii)
21retires with more than 34 years of creditable service, and
22(iii) does not elect to qualify for the augmented rate under
23Section 16-129.1 shall be entitled, at the time of retirement,
24to receive a partial refund of contributions made under this
25Section for service occurring after the later of June 30, 1998
26or attainment of 34 years of creditable service, in an amount

 

 

10000SB0011sam001- 177 -LRB100 06001 RPS 18183 a

1equal to 1.00% of the salary upon which those contributions
2were based.
3    (e) A member's contributions toward the cost of early
4retirement without discount made under item (a)(4) of this
5Section shall not be refunded if the member has elected early
6retirement without discount under Section 16-133.2 and has
7begun to receive a retirement annuity under this Article
8calculated in accordance with that election. Otherwise, a
9member's contributions toward the cost of early retirement
10without discount made under item (a)(4) of this Section shall
11be refunded according to whichever one of the following
12circumstances occurs first:
13        (1) The contributions shall be refunded to the member,
14    without interest, within 120 days after the member's
15    retirement annuity commences, if the member does not elect
16    early retirement without discount under Section 16-133.2.
17        (2) The contributions shall be included, without
18    interest, in any refund claimed by the member under Section
19    16-151.
20        (3) The contributions shall be refunded to the member's
21    designated beneficiary (or if there is no beneficiary, to
22    the member's estate), without interest, if the member dies
23    without having begun to receive a retirement annuity under
24    this Article.
25        (4) The contributions shall be refunded to the member,
26    without interest, if the early retirement without discount

 

 

10000SB0011sam001- 178 -LRB100 06001 RPS 18183 a

1    option provided under subsection (d) of Section 16-133.2 is
2    terminated. In that event, the System shall provide to the
3    member, within 120 days after the option is terminated, an
4    application for a refund of those contributions.
5(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642,
6eff. 7-28-16.)
 
7    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
8    (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10    Sec. 16-158. Contributions by State and other employing
11units.
12    (a) The State shall make contributions to the System by
13means of appropriations from the Common School Fund and other
14State funds of amounts which, together with other employer
15contributions, employee contributions, investment income, and
16other income, will be sufficient to meet the cost of
17maintaining and administering the System on a 90% funded basis
18in accordance with actuarial recommendations.
19    The Board shall determine the amount of State contributions
20required for each fiscal year on the basis of the actuarial
21tables and other assumptions adopted by the Board and the
22recommendations of the actuary, using the formula in subsection
23(b-3).
24    (a-1) Annually, on or before November 15 until November 15,
252011, the Board shall certify to the Governor the amount of the

 

 

10000SB0011sam001- 179 -LRB100 06001 RPS 18183 a

1required State contribution for the coming fiscal year. The
2certification under this subsection (a-1) shall include a copy
3of the actuarial recommendations upon which it is based and
4shall specifically identify the System's projected State
5normal cost for that fiscal year.
6    On or before May 1, 2004, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2005, taking
9into account the amounts appropriated to and received by the
10System under subsection (d) of Section 7.2 of the General
11Obligation Bond Act.
12    On or before July 1, 2005, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2006, taking
15into account the changes in required State contributions made
16by this amendatory Act of the 94th General Assembly.
17    On or before April 1, 2011, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2011, applying
20the changes made by Public Act 96-889 to the System's assets
21and liabilities as of June 30, 2009 as though Public Act 96-889
22was approved on that date.
23    (a-5) On or before November 1 of each year, beginning
24November 1, 2012, the Board shall submit to the State Actuary,
25the Governor, and the General Assembly a proposed certification
26of the amount of the required State contribution to the System

 

 

10000SB0011sam001- 180 -LRB100 06001 RPS 18183 a

1for the next fiscal year, along with all of the actuarial
2assumptions, calculations, and data upon which that proposed
3certification is based. On or before January 1 of each year,
4beginning January 1, 2013, the State Actuary shall issue a
5preliminary report concerning the proposed certification and
6identifying, if necessary, recommended changes in actuarial
7assumptions that the Board must consider before finalizing its
8certification of the required State contributions. On or before
9January 15, 2013 and each January 15 thereafter, the Board
10shall certify to the Governor and the General Assembly the
11amount of the required State contribution for the next fiscal
12year. The Board's certification must note any deviations from
13the State Actuary's recommended changes, the reason or reasons
14for not following the State Actuary's recommended changes, and
15the fiscal impact of not following the State Actuary's
16recommended changes on the required State contribution.
17    (a-10) As soon as practical after the effective date of
18this amendatory Act of the 100th General Assembly, the State
19Actuary and the Board shall recalculate and recertify to the
20Governor and the General Assembly the amount of the State
21contribution to the System for State fiscal year 2018, taking
22into account the changes in required State contributions made
23by this amendatory Act of the 100th General Assembly.
24    (a-15) On or before May 1, 2018, the Board shall
25recalculate and recertify to the Governor and the General
26Assembly the amount of the required State contribution to the

 

 

10000SB0011sam001- 181 -LRB100 06001 RPS 18183 a

1System for State fiscal year 2019, taking into account the
2effect on the System's liabilities of the elections made under
3Section 16-122.9.
4    On or before October 1, 2018, the Board shall recalculate
5and recertify to the Governor and the General Assembly the
6amount of the required State contribution to the System for
7State fiscal year 2019, taking into account the reduction
8specified under item (3) of subsection (b-3) of this Section.
9    (b) Through State fiscal year 1995, the State contributions
10shall be paid to the System in accordance with Section 18-7 of
11the School Code.
12    (b-1) Beginning in State fiscal year 1996, on the 15th day
13of each month, or as soon thereafter as may be practicable, the
14Board shall submit vouchers for payment of State contributions
15to the System, in a total monthly amount of one-twelfth of the
16required annual State contribution certified under subsection
17(a-1). From the effective date of this amendatory Act of the
1893rd General Assembly through June 30, 2004, the Board shall
19not submit vouchers for the remainder of fiscal year 2004 in
20excess of the fiscal year 2004 certified contribution amount
21determined under this Section after taking into consideration
22the transfer to the System under subsection (a) of Section
236z-61 of the State Finance Act. These vouchers shall be paid by
24the State Comptroller and Treasurer by warrants drawn on the
25funds appropriated to the System for that fiscal year.
26    If in any month the amount remaining unexpended from all

 

 

10000SB0011sam001- 182 -LRB100 06001 RPS 18183 a

1other appropriations to the System for the applicable fiscal
2year (including the appropriations to the System under Section
38.12 of the State Finance Act and Section 1 of the State
4Pension Funds Continuing Appropriation Act) is less than the
5amount lawfully vouchered under this subsection, the
6difference shall be paid from the Common School Fund under the
7continuing appropriation authority provided in Section 1.1 of
8the State Pension Funds Continuing Appropriation Act.
9    (b-2) Allocations from the Common School Fund apportioned
10to school districts not coming under this System shall not be
11diminished or affected by the provisions of this Article.
12    (b-3) For State fiscal years 2018 through 2045 (except as
13otherwise provided for fiscal year 2019), 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 total payroll, including payroll that is
21not deemed pensionable, but excluding payroll attributable to
22participants in the defined contribution plan under Section
2316-205.1, over the years remaining to and including fiscal year
242045 and shall be determined under the projected unit credit
25actuarial cost method.
26    For State fiscal year 2019:

 

 

10000SB0011sam001- 183 -LRB100 06001 RPS 18183 a

1        (1) The initial calculation and certification shall be
2    based on the amount determined above.
3        (2) For purposes of the recertification due on or
4    before May 1, 2018, the recalculation of the required State
5    contribution for fiscal year 2019 shall take into account
6    the effect on the System's liabilities of the elections
7    made under Section 16-122.9.
8        (3) For purposes of the recertification due on or
9    before October 1, 2018, the total required State
10    contribution for fiscal year 2019 shall be reduced by the
11    amount of the consideration payments made to Tier 1
12    employees who made the election under paragraph (1) of
13    subsection (a) of Section 16-122.9.
14    Beginning in State fiscal year 2018, any increase or
15decrease in State contribution over the prior fiscal year due
16exclusively to changes in actuarial or investment assumptions
17adopted by the Board shall be included in the State
18contribution to the System, as a percentage of the applicable
19employee payroll, and shall be increased in equal annual
20increments so that by the State fiscal year occurring 5 years
21after the adoption of the actuarial or investment assumptions,
22the State is contributing at the rate otherwise required under
23this Section.
24    For State fiscal years 2012 through 2017 2045, the minimum
25contribution to the System to be made by the State for each
26fiscal year shall be an amount determined by the System to be

 

 

10000SB0011sam001- 184 -LRB100 06001 RPS 18183 a

1sufficient to bring the total assets of the System up to 90% of
2the total actuarial liabilities of the System by the end of
3State fiscal year 2045. In making these determinations, the
4required State contribution shall be calculated each year as a
5level percentage of payroll over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method.
8    For State fiscal years 1996 through 2005, the State
9contribution to the System, as a percentage of the applicable
10employee payroll, shall be increased in equal annual increments
11so that by State fiscal year 2011, the State is contributing at
12the rate required under this Section; except that in the
13following specified State fiscal years, the State contribution
14to the System shall not be less than the following indicated
15percentages of the applicable employee payroll, even if the
16indicated percentage will produce a State contribution in
17excess of the amount otherwise required under this subsection
18and subsection (a), and notwithstanding any contrary
19certification made under subsection (a-1) before the effective
20date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
21in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
222003; and 13.56% in FY 2004.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2006 is
25$534,627,700.
26    Notwithstanding any other provision of this Article, the

 

 

10000SB0011sam001- 185 -LRB100 06001 RPS 18183 a

1total required State contribution for State fiscal year 2007 is
2$738,014,500.
3    For each of State fiscal years 2008 through 2009, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6from the required State contribution for State fiscal year
72007, so that by State fiscal year 2011, the State is
8contributing at the rate otherwise required under this Section.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2010 is
11$2,089,268,000 and shall be made from the proceeds of bonds
12sold in fiscal year 2010 pursuant to Section 7.2 of the General
13Obligation Bond Act, less (i) the pro rata share of bond sale
14expenses determined by the System's share of total bond
15proceeds, (ii) any amounts received from the Common School Fund
16in fiscal year 2010, and (iii) any reduction in bond proceeds
17due to the issuance of discounted bonds, if applicable.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2011 is
20the amount recertified by the System on or before April 1, 2011
21pursuant to subsection (a-1) of this Section and shall be made
22from the proceeds of bonds sold in fiscal year 2011 pursuant to
23Section 7.2 of the General Obligation Bond Act, less (i) the
24pro rata share of bond sale expenses determined by the System's
25share of total bond proceeds, (ii) any amounts received from
26the Common School Fund in fiscal year 2011, and (iii) any

 

 

10000SB0011sam001- 186 -LRB100 06001 RPS 18183 a

1reduction in bond proceeds due to the issuance of discounted
2bonds, if applicable. This amount shall include, in addition to
3the amount certified by the System, an amount necessary to meet
4employer contributions required by the State as an employer
5under paragraph (e) of this Section, which may also be used by
6the System for contributions required by paragraph (a) of
7Section 16-127.
8    Beginning in State fiscal year 2046, the minimum State
9contribution for each fiscal year shall be the amount needed to
10maintain the total assets of the System at 90% of the total
11actuarial liabilities of the System.
12    Amounts received by the System pursuant to Section 25 of
13the Budget Stabilization Act or Section 8.12 of the State
14Finance Act in any fiscal year do not reduce and do not
15constitute payment of any portion of the minimum State
16contribution required under this Article in that fiscal year.
17Such amounts shall not reduce, and shall not be included in the
18calculation of, the required State contributions under this
19Article in any future year until the System has reached a
20funding ratio of at least 90%. A reference in this Article to
21the "required State contribution" or any substantially similar
22term does not include or apply to any amounts payable to the
23System under Section 25 of the Budget Stabilization Act.
24    Notwithstanding any other provision of this Section, the
25required State contribution for State fiscal year 2005 and for
26fiscal year 2008 and each fiscal year thereafter, as calculated

 

 

10000SB0011sam001- 187 -LRB100 06001 RPS 18183 a

1under this Section and certified under subsection (a-1), shall
2not exceed an amount equal to (i) the amount of the required
3State contribution that would have been calculated under this
4Section for that fiscal year if the System had not received any
5payments under subsection (d) of Section 7.2 of the General
6Obligation Bond Act, minus (ii) the portion of the State's
7total debt service payments for that fiscal year on the bonds
8issued in fiscal year 2003 for the purposes of that Section
97.2, as determined and certified by the Comptroller, that is
10the same as the System's portion of the total moneys
11distributed under subsection (d) of Section 7.2 of the General
12Obligation Bond Act. In determining this maximum for State
13fiscal years 2008 through 2010, however, the amount referred to
14in item (i) shall be increased, as a percentage of the
15applicable employee payroll, in equal increments calculated
16from the sum of the required State contribution for State
17fiscal year 2007 plus the applicable portion of the State's
18total debt service payments for fiscal year 2007 on the bonds
19issued in fiscal year 2003 for the purposes of Section 7.2 of
20the General Obligation Bond Act, so that, by State fiscal year
212011, the State is contributing at the rate otherwise required
22under this Section.
23    (c) Payment of the required State contributions and of all
24pensions, retirement annuities, death benefits, refunds, and
25other benefits granted under or assumed by this System, and all
26expenses in connection with the administration and operation

 

 

10000SB0011sam001- 188 -LRB100 06001 RPS 18183 a

1thereof, are obligations of the State.
2    If members are paid from special trust or federal funds
3which are administered by the employing unit, whether school
4district or other unit, the employing unit shall pay to the
5System from such funds the full accruing retirement costs based
6upon that service, which, beginning July 1, 2014, shall be at a
7rate, expressed as a percentage of salary, equal to the total
8minimum contribution to the System to be made by the State for
9that fiscal year, including both normal cost and unfunded
10liability components, expressed as a percentage of payroll, as
11determined by the System under subsection (b-3) of this
12Section. Employer contributions, based on salary paid to
13members from federal funds, may be forwarded by the
14distributing agency of the State of Illinois to the System
15prior to allocation, in an amount determined in accordance with
16guidelines established by such agency and the System. Any
17contribution for fiscal year 2015 collected as a result of the
18change made by this amendatory Act of the 98th General Assembly
19shall be considered a State contribution under subsection (b-3)
20of this Section.
21    (d) Effective July 1, 1986, any employer of a teacher as
22defined in paragraph (8) of Section 16-106 shall pay the
23employer's normal cost of benefits based upon the teacher's
24service, in addition to employee contributions, as determined
25by the System. Such employer contributions shall be forwarded
26monthly in accordance with guidelines established by the

 

 

10000SB0011sam001- 189 -LRB100 06001 RPS 18183 a

1System.
2    However, with respect to benefits granted under Section
316-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
4of Section 16-106, the employer's contribution shall be 12%
5(rather than 20%) of the member's highest annual salary rate
6for each year of creditable service granted, and the employer
7shall also pay the required employee contribution on behalf of
8the teacher. For the purposes of Sections 16-133.4 and
916-133.5, a teacher as defined in paragraph (8) of Section
1016-106 who is serving in that capacity while on leave of
11absence from another employer under this Article shall not be
12considered an employee of the employer from which the teacher
13is on leave.
14    (e) Beginning July 1, 1998, every employer of a teacher
15shall pay to the System an employer contribution computed as
16follows:
17        (1) Beginning July 1, 1998 through June 30, 1999, the
18    employer contribution shall be equal to 0.3% of each
19    teacher's salary.
20        (2) Beginning July 1, 1999 and thereafter, the employer
21    contribution shall be equal to 0.58% of each teacher's
22    salary.
23The school district or other employing unit may pay these
24employer contributions out of any source of funding available
25for that purpose and shall forward the contributions to the
26System on the schedule established for the payment of member

 

 

10000SB0011sam001- 190 -LRB100 06001 RPS 18183 a

1contributions.
2    These employer contributions are intended to offset a
3portion of the cost to the System of the increases in
4retirement benefits resulting from this amendatory Act of 1998.
5    Each employer of teachers is entitled to a credit against
6the contributions required under this subsection (e) with
7respect to salaries paid to teachers for the period January 1,
82002 through June 30, 2003, equal to the amount paid by that
9employer under subsection (a-5) of Section 6.6 of the State
10Employees Group Insurance Act of 1971 with respect to salaries
11paid to teachers for that period.
12    The additional 1% employee contribution required under
13Section 16-152 by this amendatory Act of 1998 is the
14responsibility of the teacher and not the teacher's employer,
15unless the employer agrees, through collective bargaining or
16otherwise, to make the contribution on behalf of the teacher.
17    If an employer is required by a contract in effect on May
181, 1998 between the employer and an employee organization to
19pay, on behalf of all its full-time employees covered by this
20Article, all mandatory employee contributions required under
21this Article, then the employer shall be excused from paying
22the employer contribution required under this subsection (e)
23for the balance of the term of that contract. The employer and
24the employee organization shall jointly certify to the System
25the existence of the contractual requirement, in such form as
26the System may prescribe. This exclusion shall cease upon the

 

 

10000SB0011sam001- 191 -LRB100 06001 RPS 18183 a

1termination, extension, or renewal of the contract at any time
2after May 1, 1998.
3    (f) For school years beginning on or after June 1, 2005 and
4before July 1, 2018, if If the amount of a teacher's salary for
5any school year used to determine final average salary exceeds
6the member's annual full-time salary rate with the same
7employer for the previous school year by more than 6%, the
8teacher's employer shall pay to the System, in addition to all
9other payments required under this Section and in accordance
10with guidelines established by the System, the present value of
11the increase in benefits resulting from the portion of the
12increase in salary that is in excess of 6%. This present value
13shall be computed by the System on the basis of the actuarial
14assumptions and tables used in the most recent actuarial
15valuation of the System that is available at the time of the
16computation. If a teacher's salary for the 2005-2006 school
17year is used to determine final average salary under this
18subsection (f), then the changes made to this subsection (f) by
19Public Act 94-1057 shall apply in calculating whether the
20increase in his or her salary is in excess of 6%. For the
21purposes of this Section, change in employment under Section
2210-21.12 of the School Code on or after June 1, 2005 shall
23constitute a change in employer. The System may require the
24employer to provide any pertinent information or
25documentation. The changes made to this subsection (f) by this
26amendatory Act of the 94th General Assembly apply without

 

 

10000SB0011sam001- 192 -LRB100 06001 RPS 18183 a

1regard to whether the teacher was in service on or after its
2effective date.
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 and, if the employer asserts
11that the calculation is subject to subsection (g) or (h) of
12this Section, must include an affidavit setting forth and
13attesting to all facts within the employer's knowledge that are
14pertinent to the applicability of that subsection. Upon
15receiving a timely application for recalculation, the System
16shall review the application and, if appropriate, recalculate
17the amount due.
18    The employer contributions required under this subsection
19(f) may be paid in the form of a lump sum within 90 days after
20receipt of the bill. If the employer contributions are not paid
21within 90 days after receipt of the bill, then interest will be
22charged at a rate equal to the System's annual actuarially
23assumed rate of return on investment compounded annually from
24the 91st day after receipt of the bill. Payments must be
25concluded within 3 years after the employer's receipt of the
26bill.

 

 

10000SB0011sam001- 193 -LRB100 06001 RPS 18183 a

1    (f-1) For school years beginning on or after July 1, 2018,
2if the amount of a teacher's salary for any school year used to
3determine final average salary exceeds the member's annual
4full-time salary rate with the same employer for the previous
5school year by more than the unadjusted percentage increase in
6the consumer price index-u for the calendar year ending on the
7December 31 immediately preceding the beginning of the school
8year, then the teacher's employer shall pay to the System, in
9addition to all other payments required under this Section and
10in accordance with guidelines established by the System, the
11present value of the increase in benefits resulting from the
12portion of the increase in salary that is in excess of the
13unadjusted percentage increase in the consumer price index-u
14for the applicable calendar year. This present value shall be
15computed by the System on the basis of the actuarial
16assumptions and tables used in the most recent actuarial
17valuation of the System that is available at the time of the
18computation. The System may require the employer to provide any
19pertinent information or documentation.
20    Whenever it determines that a payment is or may be required
21under this subsection (f-1), the System shall calculate the
22amount of the payment and bill the employer for that amount.
23The bill shall specify the calculations used to determine the
24amount due. If the employer disputes the amount of the bill, it
25may, within 30 days after receipt of the bill, apply to the
26System in writing for a recalculation. The application must

 

 

10000SB0011sam001- 194 -LRB100 06001 RPS 18183 a

1specify in detail the grounds of the dispute and, if the
2employer asserts that the calculation is subject to subsection
3(h-1) of this Section, must include an affidavit setting forth
4and attesting to all facts within the employer's knowledge that
5are pertinent to the applicability of subsection (h-1). Upon
6receiving a timely application for recalculation, the System
7shall review the application and, if appropriate, recalculate
8the amount due.
9    The employer contributions required under this subsection
10(f-1) may be paid in the form of a lump sum within 90 days after
11receipt of the bill. If the employer contributions are not paid
12within 90 days after receipt of the bill, then interest shall
13be charged at a rate equal to the System's annual actuarially
14assumed rate of return on investment compounded annually from
15the 91st day after receipt of the bill. Payments must be
16concluded within 3 years after the employer's receipt of the
17bill.
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.

 

 

10000SB0011sam001- 195 -LRB100 06001 RPS 18183 a

1    (g) This subsection (g) applies only to payments made or
2salary increases given on or after June 1, 2005 but before July
31, 2011. The changes made by Public Act 94-1057 shall not
4require the System to refund any payments received before July
531, 2006 (the effective date of Public Act 94-1057).
6    When assessing payment for any amount due under subsection
7(f), the System shall exclude salary increases paid to teachers
8under contracts or collective bargaining agreements entered
9into, amended, or renewed before June 1, 2005.
10    When assessing payment for any amount due under subsection
11(f), the System shall exclude salary increases paid to a
12teacher at a time when the teacher is 10 or more years from
13retirement eligibility under Section 16-132 or 16-133.2.
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases resulting from
16overload work, including summer school, when the school
17district has certified to the System, and the System has
18approved the certification, that (i) the overload work is for
19the sole purpose of classroom instruction in excess of the
20standard number of classes for a full-time teacher in a school
21district during a school year and (ii) the salary increases are
22equal to or less than the rate of pay for classroom instruction
23computed on the teacher's current salary and work schedule.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude a salary increase resulting from
26a promotion (i) for which the employee is required to hold a

 

 

10000SB0011sam001- 196 -LRB100 06001 RPS 18183 a

1certificate or supervisory endorsement issued by the State
2Teacher Certification Board that is a different certification
3or supervisory endorsement than is required for the teacher's
4previous position and (ii) to a position that has existed and
5been filled by a member for no less than one complete academic
6year and the salary increase from the promotion is an increase
7that results in an amount no greater than the lesser of the
8average salary paid for other similar positions in the district
9requiring the same certification or the amount stipulated in
10the collective bargaining agreement for a similar position
11requiring the same certification.
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude any payment to the teacher from
14the State of Illinois or the State Board of Education over
15which the employer does not have discretion, notwithstanding
16that the payment is included in the computation of final
17average salary.
18    (h) When assessing payment for any amount due under
19subsection (f), the System shall exclude any salary increase
20described in subsection (g) of this Section given on or after
21July 1, 2011 but before July 1, 2014 under a contract or
22collective bargaining agreement entered into, amended, or
23renewed on or after June 1, 2005 but before July 1, 2011.
24Notwithstanding any other provision of this Section, any
25payments made or salary increases given after June 30, 2014
26shall be used in assessing payment for any amount due under

 

 

10000SB0011sam001- 197 -LRB100 06001 RPS 18183 a

1subsection (f) of this Section.
2    (h-1) When assessing payment for any amount due under
3subsection (f-1), the System shall exclude earnings increases
4paid to participants under contracts or collective bargaining
5agreements entered into, amended, or renewed before the
6effective date of this amendatory Act of the 100th General
7Assembly.
8    (i) The System shall prepare a report and file copies of
9the report with the Governor and the General Assembly by
10January 1, 2007 that contains all of the following information:
11        (1) The number of recalculations required by the
12    changes made to this Section by Public Act 94-1057 for each
13    employer.
14        (2) The dollar amount by which each employer's
15    contribution to the System was changed due to
16    recalculations required by Public Act 94-1057.
17        (3) The total amount the System received from each
18    employer as a result of the changes made to this Section by
19    Public Act 94-4.
20        (4) The increase in the required State contribution
21    resulting from the changes made to this Section by Public
22    Act 94-1057.
23    (i-5) For school years beginning on or after July 1, 2018,
24if the amount of a participant's salary for any school year,
25determined on a full-time equivalent basis, exceeds the amount
26of the salary set for the Governor, the participant's employer

 

 

10000SB0011sam001- 198 -LRB100 06001 RPS 18183 a

1shall pay to the System, in addition to all other payments
2required under this Section and in accordance with guidelines
3established by the System, the amount of earnings that exceed
4the salary set for the Governor multiplied by the level
5percentage of payroll used in that fiscal year as determined by
6the System to be sufficient to bring the total assets of the
7System up to 90% of the total actuarial liabilities of the
8System by the end of State fiscal year 2045. This amount shall
9be computed by the System on the basis of the actuarial
10assumptions and tables used in the most recent actuarial
11valuation of the System that is available at the time of the
12computation. The System may require the employer to provide any
13pertinent information or documentation.
14    Whenever it determines that a payment is or may be required
15under this subsection, the System shall calculate the amount of
16the payment and bill the employer for that amount. The bill
17shall specify the calculations used to determine the amount
18due. If the employer disputes the amount of the bill, it may,
19within 30 days after receipt of the bill, apply to the System
20in writing for a recalculation. The application must specify in
21detail the grounds of the dispute. Upon receiving a timely
22application for recalculation, the System shall review the
23application and, if appropriate, recalculate the amount due.
24    The employer contributions required under this subsection
25may be paid in the form of a lump sum within 90 days after
26receipt of the bill. If the employer contributions are not paid

 

 

10000SB0011sam001- 199 -LRB100 06001 RPS 18183 a

1within 90 days after receipt of the bill, then interest will be
2charged 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    (j) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (k) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22    (l) If Section 16-122.9 is determined to be
23unconstitutional or otherwise invalid by a final unappealable
24decision of an Illinois court or a court of competent
25jurisdiction, then the changes made to this Section by this
26amendatory Act of the 100th General Assembly shall not take

 

 

10000SB0011sam001- 200 -LRB100 06001 RPS 18183 a

1effect and are repealed by operation of law.
2(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
46-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
5    (40 ILCS 5/16-190.5 new)
6    Sec. 16-190.5. Accelerated pension benefit payment.
7    (a) As used in this Section:
8    "Eligible person" means a person who:
9        (1) has terminated service;
10        (2) has accrued sufficient service credit to be
11    eligible to receive a retirement annuity under this
12    Article;
13        (3) has not received any retirement annuity under this
14    Article; and
15        (4) does not have a QILDRO in effect against him or her
16    under this Article.
17    "Pension benefit" means the benefits under this Article, or
18Article 1 as it relates to those benefits, including any
19anticipated annual increases, that an eligible person is
20entitled to upon attainment of the applicable retirement age.
21"Pension benefit" also includes applicable survivor's or
22disability benefits.
23    (b) Before January 1, 2018, and annually thereafter, the
24System shall calculate, using actuarial tables and other
25assumptions adopted by the Board, the net present value of

 

 

10000SB0011sam001- 201 -LRB100 06001 RPS 18183 a

1pension benefits for each eligible person and shall offer each
2eligible person the opportunity to irrevocably elect to receive
3an amount determined by the System to be equal to 70% of the
4net present value of his or her pension benefits in lieu of
5receiving any pension benefit. The offer shall specify the
6dollar amount that the eligible person will receive if he or
7she so elects and shall expire when a subsequent offer is made
8to an eligible person or when the System determines that 10% of
9eligible persons in that year have made the election under this
10subsection, whichever occurs first. The System shall make a
11good faith effort to contact every eligible person to notify
12him or her of the election and of the amount of the accelerated
13pension benefit payment.
14    Until the System determines that 10% of eligible persons in
15that year have made the election under this subsection, an
16eligible person may irrevocably elect to receive an accelerated
17pension benefit payment in the amount that the System offers
18under this subsection in lieu of receiving any pension benefit.
19A person who elects to receive an accelerated pension benefit
20payment under this Section may not elect to proceed under the
21Retirement Systems Reciprocal Act with respect to service under
22this Article.
23    (c) A person's credits and creditable service under this
24Article shall be terminated upon the person's receipt of an
25accelerated pension benefit payment under this Section, and no
26other benefit shall be paid under this Article based on those

 

 

10000SB0011sam001- 202 -LRB100 06001 RPS 18183 a

1terminated credits and creditable service, including any
2retirement, survivor, or other benefit; except that to the
3extent that participation, benefits, or premiums under the
4State Employees Group Insurance Act of 1971 are based on the
5amount of service credit, the terminated service credit shall
6be used for that purpose.
7    (d) If a person who has received an accelerated pension
8benefit payment under this Section returns to active service
9under this Article, then:
10        (1) Any benefits under the System earned as a result of
11    that return to active service shall be based solely on the
12    person's credits and creditable service arising from the
13    return to active service.
14        (2) The accelerated pension benefit payment may not be
15    repaid to the System, and the terminated credits and
16    creditable service may not under any circumstances be
17    reinstated.
18    (e) As a condition of receiving an accelerated pension
19benefit payment, an eligible person must have another
20retirement plan or account qualified under the Internal Revenue
21Code of 1986, as amended, for the accelerated pension benefit
22payment to be rolled into. The accelerated pension benefit
23payment under this Section may be subject to withholding or
24payment of applicable taxes, but to the extent permitted by
25federal law, a person who receives an accelerated pension
26benefit payment under this Section must direct the System to

 

 

10000SB0011sam001- 203 -LRB100 06001 RPS 18183 a

1pay all of that payment as a rollover into another retirement
2plan or account qualified under the Internal Revenue Code of
31986, as amended.
4    (f) Before January 1, 2019 and every January 1 thereafter,
5the Board shall certify to the Illinois Finance Authority and
6the General Assembly the amount by which the total amount of
7accelerated pension benefit payments made under this Section
8exceed the amount appropriated to the System for the purpose of
9making those payments.
10    (g) The Board shall adopt any rules necessary to implement
11this Section.
12    (h) No provision of this Section shall be interpreted in a
13way that would cause the applicable System to cease to be a
14qualified plan under the Internal Revenue Code of 1986.
15    (i) Notwithstanding any other provision of this Section, in
16no case shall the total amount of accelerated pension benefit
17payments paid under this Section, Section 14-147.5, and Section
1815-185.5, and Section 16-190.5 cause the Illinois Finance
19Authority to issue more than the $250,000,000 of State Pension
20Obligation Acceleration Bonds authorized in subsection (c-5)
21of Section 801-40 of the Illinois Finance Authority Act.
 
22    (40 ILCS 5/16-203)
23    (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25    Sec. 16-203. Application and expiration of new benefit

 

 

10000SB0011sam001- 204 -LRB100 06001 RPS 18183 a

1increases.
2    (a) As used in this Section, "new benefit increase" means
3an increase in the amount of any benefit provided under this
4Article, or an expansion of the conditions of eligibility for
5any benefit under this Article, that results from an amendment
6to this Code that takes effect after June 1, 2005 (the
7effective date of Public Act 94-4). "New benefit increase",
8however, does not include any benefit increase resulting from
9the changes made to this Article by Public Act 95-910 or this
10amendatory Act of the 100th 95th General Assembly.
11    (b) Notwithstanding any other provision of this Code or any
12subsequent amendment to this Code, every new benefit increase
13is subject to this Section and shall be deemed to be granted
14only in conformance with and contingent upon compliance with
15the provisions of this Section.
16    (c) The Public Act enacting a new benefit increase must
17identify and provide for payment to the System of additional
18funding at least sufficient to fund the resulting annual
19increase in cost to the System as it accrues.
20    Every new benefit increase is contingent upon the General
21Assembly providing the additional funding required under this
22subsection. The Commission on Government Forecasting and
23Accountability shall analyze whether adequate additional
24funding has been provided for the new benefit increase and
25shall report its analysis to the Public Pension Division of the
26Department of Insurance Financial and Professional Regulation.

 

 

10000SB0011sam001- 205 -LRB100 06001 RPS 18183 a

1A new benefit increase created by a Public Act that does not
2include the additional funding required under this subsection
3is null and void. If the Public Pension Division determines
4that the additional funding provided for a new benefit increase
5under this subsection is or has become inadequate, it may so
6certify to the Governor and the State Comptroller and, in the
7absence of corrective action by the General Assembly, the new
8benefit increase shall expire at the end of the fiscal year in
9which the certification is made.
10    (d) Every new benefit increase shall expire 5 years after
11its effective date or on such earlier date as may be specified
12in the language enacting the new benefit increase or provided
13under subsection (c). This does not prevent the General
14Assembly from extending or re-creating a new benefit increase
15by law.
16    (e) Except as otherwise provided in the language creating
17the new benefit increase, a new benefit increase that expires
18under this Section continues to apply to persons who applied
19and qualified for the affected benefit while the new benefit
20increase was in effect and to the affected beneficiaries and
21alternate payees of such persons, but does not apply to any
22other person, including without limitation a person who
23continues in service after the expiration date and did not
24apply and qualify for the affected benefit while the new
25benefit increase was in effect.
26(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 

 

 

10000SB0011sam001- 206 -LRB100 06001 RPS 18183 a

1    (40 ILCS 5/16-205.1 new)
2    Sec. 16-205.1. Defined contribution plan.
3    (a) By July 1, 2018, the System shall prepare and implement
4a voluntary defined contribution plan for up to 5% of eligible
5active Tier 1 employees. The System shall determine the 5% cap
6by the number of active Tier 1 employees on the effective date
7of this Section. The defined contribution plan developed under
8this Section shall be a plan that aggregates employer and
9employee contributions in individual participant accounts
10which, after meeting any other requirements, are used for
11payouts after retirement in accordance with this Section and
12any other applicable laws.
13    As used in this Section, "defined benefit plan" means the
14retirement plan available under this Article to Tier 1
15employees who have not made the election authorized under this
16Section.
17        (1) Under the defined contribution plan, an active Tier
18    1 employee of this System could elect to cease accruing
19    benefits in the defined benefit plan under this Article and
20    begin accruing benefits for future service in the defined
21    contribution plan. Service credit under the defined
22    contribution plan may be used for determining retirement
23    eligibility under the defined benefit plan. An active Tier
24    1 employee who elects to cease accruing benefits in his or
25    her defined benefit plan shall be prohibited from

 

 

10000SB0011sam001- 207 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 208 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 209 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 210 -LRB100 06001 RPS 18183 a

1including information on the impact to their vested benefits or
2non-vested service. The individual consultation shall include
3projections of the member's defined benefits at retirement or
4earlier termination of service and the value of the member's
5account at retirement or earlier termination of service. The
6System shall not provide advice or counseling with respect to
7whether the employee should exercise the option. The System
8shall inform Tier 1 employees who are eligible to participate
9in the defined contribution plan that they may also wish to
10obtain information and counsel relating to their option from
11any other available source, including but not limited to labor
12organizations, private counsel, and financial advisors.
13    (e) In no event shall the System, its staff, its authorized
14representatives, or the Board be liable for any information
15given to an employee under this Section. The System may
16coordinate with the Illinois Department of Central Management
17Services and other retirement systems administering a defined
18contribution plan in accordance with this amendatory Act of the
19100th General Assembly to provide information concerning the
20impact of the option set forth in this Section.
21    (f) Notwithstanding any other provision of this Section, no
22person shall begin participating in the defined contribution
23plan until it has attained qualified plan status and received
24all necessary approvals from the U.S. Internal Revenue Service.
25    (g) The System shall report on its progress under this
26Section, including the available details of the defined

 

 

10000SB0011sam001- 211 -LRB100 06001 RPS 18183 a

1contribution plan and the System's plans for informing eligible
2Tier 1 employees about the plan, to the Governor and the
3General Assembly on or before January 15, 2018.
4    (h) The intent of this amendatory Act of the 100th General
5Assembly is to ensure that the State's normal cost of
6participation in the defined contribution plan is similar, and
7if possible equal, to the State's normal cost of participation
8in the defined benefit plan, unless a lower State's normal cost
9is necessary to ensure cost neutrality.
10    (i) If Section 16-122.9 is determined to be
11unconstitutional or otherwise invalid by a final unappealable
12decision of an Illinois court or a court of competent
13jurisdiction, then this Section shall not take effect and is
14repealed by operation of law.
 
15    (40 ILCS 5/16-206.1 new)
16    Sec. 16-206.1. Defined contribution plan; termination. If
17the defined contribution plan is terminated or becomes
18inoperative pursuant to law, then each participant in the plan
19shall automatically be deemed to have been a contributing Tier
201 employee in the System's defined benefit plan during the time
21in which he or she participated in the defined contribution
22plan, and for that purpose the System shall be entitled to
23recover the amounts in the participant's defined contribution
24accounts.
 

 

 

10000SB0011sam001- 212 -LRB100 06001 RPS 18183 a

1    (40 ILCS 5/17-106.05 new)
2    Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
3teacher under this Article who first became a member or
4participant before January 1, 2011 under any reciprocal
5retirement system or pension fund established under this Code
6other than a retirement system or pension fund established
7under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
8the purposes of the election under Section 17-115.5, "Tier 1
9employee" does not include a teacher under this Article who
10would qualify as a Tier 1 employee but who has made an
11irrevocable election on or before June 1, 2017 to retire from
12service pursuant to the terms of a collective bargaining
13agreement in effect on June 1, 2017, excluding any extension,
14amendment, or renewal of that agreement on or after that date,
15and has notified the Fund of that election.
 
16    (40 ILCS 5/17-113.4 new)
17    Sec. 17-113.4. Salary. "Salary" means any income in any
18form that qualifies as "average salary" or "annual rate of
19salary" for purposes of paragraph (1) of subsection (c) of
20Section 17-116 and "salary" for payroll deduction purposes
21under Sections 17-130, 17-131, and 17-132.
22    Notwithstanding any other provision of this Section,
23"salary" does not include any future increase in income that is
24offered by an employer for service as a Tier 1 employee under
25this Article pursuant to the condition set forth in subsection

 

 

10000SB0011sam001- 213 -LRB100 06001 RPS 18183 a

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

 

 

10000SB0011sam001- 214 -LRB100 06001 RPS 18183 a

1    automatic annual increases in service retirement pension
2    as provided in Section 17-119.2 and to have the amount of
3    the automatic annual increases in his or her service
4    retirement pension and survivor's pension that are
5    otherwise provided for in this Article calculated,
6    instead, as provided in Section 17-119.2; or
7        (2) to not agree to paragraph (1) of this subsection.
8    The election required under this subsection (a) shall be
9made by each active Tier 1 employee no earlier than January 1,
102018 and no later than March 31, 2018, except that:
11        (i) a person who becomes a Tier 1 employee under this
12    Article on or after January 1, 2018 must make the election
13    under this subsection (a) within 60 days after becoming a
14    Tier 1 employee; and
15        (ii) a person who returns to active service as a Tier 1
16    employee under this Article on or after January 1, 2018 and
17    has not yet made an election under this Section must make
18    the election under this subsection (a) within 60 days after
19    returning to active service as a Tier 1 employee.
20    If a Tier 1 employee fails for any reason to make a
21required election under this subsection within the time
22specified, then the employee shall be deemed to have made the
23election under paragraph (2) of this subsection.
24    (a-5) If this Section is enjoined or stayed by an Illinois
25court or a court of competent jurisdiction pending the entry of
26a final and unappealable decision, and this Section is

 

 

10000SB0011sam001- 215 -LRB100 06001 RPS 18183 a

1determined to be constitutional or otherwise valid by a final
2unappealable decision of an Illinois court or a court of
3competent jurisdiction, then the election procedure set forth
4in subsection (a) of this Section shall commence on the 180th
5calendar day after the date of the issuance of the final
6unappealable decision and shall conclude at the end of the
7270th calendar day after that date.
8    (a-10) All elections under subsection (a) that are made or
9deemed to be made before July 1, 2018 shall take effect on July
101, 2018. Elections that are made or deemed to be made on or
11after July 1, 2018 shall take effect on the first day of the
12month following the month in which the election is made or
13deemed to be made.
14    (b) As adequate and legal consideration provided under this
15amendatory Act of the 100th General Assembly for making an
16election under paragraph (1) of subsection (a) of this Section,
17an employer shall be expressly and irrevocably prohibited from
18offering any future increases in income to a Tier 1 employee
19who has made an election under paragraph (1) of subsection (a)
20of this Section on the condition of not constituting salary
21under Section 17-113.4.
22    As adequate and legal consideration provided under this
23amendatory Act of the 100th General Assembly for making an
24election under paragraph (1) of subsection (a) of this Section,
25each Tier 1 employee who has made an election under paragraph
26(1) of subsection (a) of this Section shall receive a

 

 

10000SB0011sam001- 216 -LRB100 06001 RPS 18183 a

1consideration payment equal to 10% of the contributions made by
2or on behalf of the employee under Section 17-130 before the
3effective date of that election. The Fund shall certify to the
4State Comptroller the amount of the consideration payment to
5the Tier 1 employee, and the State Comptroller shall make the
6consideration payment to the Tier 1 employee.
7    (c) A Tier 1 employee who makes the election under
8paragraph (2) of subsection (a) of this Section shall not be
9subject to paragraph (1) of subsection (a) of this Section.
10However, each future increase in income offered by an employer
11under this Article to a Tier 1 employee who has made the
12election under paragraph (2) of subsection (a) of this Section
13shall be offered by the employer expressly and irrevocably on
14the condition of not constituting salary under Section 17-113.4
15and that the Tier 1 employee's acceptance of the offered future
16increase in income shall constitute his or her agreement to
17that condition.
18    (d) The Fund shall make a good faith effort to contact each
19Tier 1 employee subject to this Section. The Fund shall mail
20information describing the required election to each Tier 1
21employee by United States Postal Service mail to his or her
22last known address on file with the Fund. If the Tier 1
23employee is not responsive to other means of contact, it is
24sufficient for the Fund to publish the details of any required
25elections on its website or to publish those details in a
26regularly published newsletter or other existing public forum.

 

 

10000SB0011sam001- 217 -LRB100 06001 RPS 18183 a

1    Tier 1 employees who are subject to this Section shall be
2provided with an election packet containing information
3regarding their options, as well as the forms necessary to make
4the required election. Upon request, the Fund shall offer Tier
51 employees an opportunity to receive information from the Fund
6before making the required election. The information may
7consist of video materials, group presentations, individual
8consultation with a member or authorized representative of the
9Fund in person or by telephone or other electronic means, or
10any combination of those methods. The Fund shall not provide
11advice or counseling with respect to which election a Tier 1
12employee should make or specific to the legal or tax
13circumstances of or consequences to the Tier 1 employee.
14    The Fund shall inform Tier 1 employees in the election
15packet required under this subsection that the Tier 1 employee
16may also wish to obtain information and counsel relating to the
17election required under this Section from any other available
18source, including, but not limited to, labor organizations and
19private counsel.
20    In no event shall the Fund, its staff, or the Board be held
21liable for any information given to a member regarding the
22elections under this Section. The Fund shall coordinate with
23the Illinois Department of Central Management Services and each
24other retirement system administering an election in
25accordance with this amendatory Act of the 100th General
26Assembly to provide information concerning the impact of the

 

 

10000SB0011sam001- 218 -LRB100 06001 RPS 18183 a

1election set forth in this Section.
2    (e) Notwithstanding any other provision of law, an employer
3under this Article is required to offer each future increase in
4income expressly and irrevocably on the condition of not
5constituting "salary" under Section 17-113.4 to any Tier 1
6employee who has made an election under paragraph (2) of
7subsection (a) of this Section. The offer shall also provide
8that the Tier 1 employee's acceptance of the offered future
9increase in income shall constitute his or her agreement to the
10condition set forth in this subsection.
11    For purposes of legislative intent, the condition set forth
12in this subsection shall be construed in a manner that ensures
13that the condition is not violated or circumvented through any
14contrivance of any kind.
15    (f) A member's election under this Section is not a
16prohibited election under subdivision (j)(1) of Section 1-119
17of this Code.
18    (g) No provision of this Section shall be interpreted in a
19way that would cause the Fund to cease to be a qualified plan
20under Section 401(a) of the Internal Revenue Code of 1986.
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

 

 

10000SB0011sam001- 219 -LRB100 06001 RPS 18183 a

1Section or the changes deriving from the election required
2under this Section.
 
3    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
4    Sec. 17-116. Service retirement pension.
5    (a) Each teacher having 20 years of service upon attainment
6of age 55, or who thereafter attains age 55 shall be entitled
7to a service retirement pension upon or after attainment of age
855; and each teacher in service on or after July 1, 1971, with
95 or more but less than 20 years of service shall be entitled
10to receive a service retirement pension upon or after
11attainment of age 62.
12    (b) The service retirement pension for a teacher who
13retires on or after June 25, 1971, at age 60 or over, shall be
14calculated as follows:
15        (1) For creditable service earned before July 1, 1998
16    that has not been augmented under Section 17-119.1: 1.67%
17    for each of the first 10 years of service; 1.90% for each
18    of the next 10 years of service; 2.10% for each year of
19    service in excess of 20 but not exceeding 30; and 2.30% for
20    each year of service in excess of 30, based upon average
21    salary as herein defined.
22        (2) For creditable service earned on or after July 1,
23    1998 by a member who has at least 30 years of creditable
24    service on July 1, 1998 and who does not elect to augment
25    service under Section 17-119.1: 2.3% of average salary for

 

 

10000SB0011sam001- 220 -LRB100 06001 RPS 18183 a

1    each year of creditable service earned on or after July 1,
2    1998.
3        (3) For all other creditable service: 2.2% of average
4    salary for each year of creditable service.
5    (c) When computing such service retirement pensions, the
6following conditions shall apply:
7        1. Average salary shall consist of the average annual
8    rate of salary for the 4 consecutive years of validated
9    service within the last 10 years of service when such
10    average annual rate was highest. In the determination of
11    average salary for retirement allowance purposes, for
12    members who commenced employment after August 31, 1979,
13    that part of the salary for any year shall be excluded
14    which exceeds the annual full-time salary rate for the
15    preceding year by more than 20%. In the case of a member
16    who commenced employment before August 31, 1979 and who
17    receives salary during any year after September 1, 1983
18    which exceeds the annual full time salary rate for the
19    preceding year by more than 20%, an Employer and other
20    employers of eligible contributors as defined in Section
21    17-106 shall pay to the Fund an amount equal to the present