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1 | | changes, impact of the changes, or implementation of the |
2 | | changes to Article 15, 16, or 17 of the Illinois Pension Code |
3 | | made by this amendatory Act of the 100th General Assembly shall |
4 | | not be subject to interest arbitration or any award issued |
5 | | pursuant to interest arbitration. The provisions of this |
6 | | Section shall not apply to an employment contract or collective |
7 | | bargaining agreement that is in effect on the effective date of |
8 | | this amendatory Act of the 100th General Assembly. However, any |
9 | | such contract or agreement that is modified, amended, renewed, |
10 | | or superseded after the effective date of this amendatory Act |
11 | | of the 100th General Assembly shall be subject to the |
12 | | provisions of this Section. Each employer with active employees |
13 | | participating in a retirement system or pension fund |
14 | | established under Article 15, 16, or 17 of the Illinois Pension |
15 | | Code shall comply with and be subject to the provisions of this |
16 | | amendatory Act of the 100th General Assembly. The provisions of |
17 | | this Section shall not apply to the ability of any employer and |
18 | | employee representative to bargain collectively with regard to |
19 | | the pick up of employee contributions pursuant to Section |
20 | | 15-157.1, 16-152.1, 17-130.1, or 17-130.2 of the Illinois |
21 | | Pension Code. |
22 | | (b) Subject to and except for the matters set forth in |
23 | | subsection (a) of this Section that are deemed prohibited |
24 | | subjects of bargaining, nothing in this Section shall be |
25 | | construed as otherwise limiting any of the obligations and |
26 | | requirements applicable to employers under any of the |
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1 | | provisions of this Act, including, but not limited to, the |
2 | | requirement to bargain collectively with regard to policy |
3 | | matters directly affecting wages, hours, and terms and |
4 | | conditions of employment as well as the impact thereon upon |
5 | | request by employee representatives. Subject to and except for |
6 | | the matters set forth in subsection (a) of this Section that |
7 | | are deemed prohibited subjects of bargaining, nothing in this |
8 | | Section shall be construed as otherwise limiting any of the |
9 | | rights of employees or employee representatives under the |
10 | | provisions of this Act. |
11 | | (c) In case of any conflict between this Section and any |
12 | | other provisions of this Act or any other law, the provisions |
13 | | of this Section shall control.
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14 | | (5 ILCS 315/10) (from Ch. 48, par. 1610)
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15 | | Sec. 10. Unfair labor practices.
|
16 | | (a) It shall be an unfair labor practice
for an employer or |
17 | | its 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;
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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
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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 |
2 | | organization or its agents:
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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
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12 | | representing employees under this Act;
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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
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16 | | (3) to cause, or attempt to cause, an employer to |
17 | | discriminate against
an employee in violation of |
18 | | subsection (a)(2);
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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;
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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;
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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:
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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
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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
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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.
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17 | | (c) The expressing of any views, argument, or opinion or |
18 | | the
dissemination thereof, whether in written, printed, |
19 | | graphic, or visual
form, shall not constitute or be evidence of |
20 | | an unfair labor practice under
any of the provisions of this |
21 | | Act, if such expression contains no threat of
reprisal or force |
22 | | or promise of benefit.
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23 | | (Source: P.A. 86-412; 87-736 .)
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24 | | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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25 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
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1 | | which has been
held unconstitutional)
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2 | | Sec. 15. Act Takes Precedence. |
3 | | (a) In case of any conflict between the
provisions of this |
4 | | Act and any other law (other than Section 5 of the State |
5 | | Employees Group Insurance Act of 1971 and other than the |
6 | | changes made to the Illinois Pension Code by this amendatory |
7 | | Act of the 96th General Assembly), executive order or |
8 | | administrative
regulation relating to wages, hours and |
9 | | conditions of employment and employment
relations, the |
10 | | provisions of this Act or any collective bargaining agreement
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11 | | negotiated thereunder shall prevail and control.
Nothing in |
12 | | this Act shall be construed to replace or diminish the
rights |
13 | | of employees established by Sections 28 and 28a of the |
14 | | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 |
15 | | of the Regional Transportation
Authority Act. The provisions of |
16 | | this Act are subject to Section 5 of the State Employees Group |
17 | | Insurance Act of 1971. Nothing in this Act shall be construed |
18 | | to replace the necessity of complaints against a sworn peace |
19 | | officer, as defined in Section 2(a) of the Uniform Peace |
20 | | Officer Disciplinary Act, from having a complaint supported by |
21 | | a sworn affidavit.
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22 | | (b) Except as provided in subsection (a) above, any |
23 | | collective bargaining
contract between a public employer and a |
24 | | labor organization executed pursuant
to this Act shall |
25 | | supersede any contrary statutes, charters, ordinances, rules
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26 | | or regulations relating to wages, hours and conditions of |
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1 | | employment and
employment relations adopted by the public |
2 | | employer or its agents. Any collective
bargaining agreement |
3 | | entered into prior to the effective date of this Act
shall |
4 | | remain in full force during its duration.
|
5 | | (c) It is the public policy of this State, pursuant to |
6 | | paragraphs (h)
and (i) of Section 6 of Article VII of the |
7 | | Illinois Constitution, that the
provisions of this Act are the |
8 | | exclusive exercise by the State of powers
and functions which |
9 | | might otherwise be exercised by home rule units. Such
powers |
10 | | and functions may not be exercised concurrently, either |
11 | | directly
or indirectly, by any unit of local government, |
12 | | including any home rule
unit, except as otherwise authorized by |
13 | | this Act. |
14 | | (d) Notwithstanding any other provision of law, no |
15 | | collective bargaining agreement entered into, renewed, or |
16 | | extended after the effective date of this amendatory Act of the |
17 | | 100th General Assembly or any arbitration award issued under |
18 | | such collective bargaining agreement may violate or conflict |
19 | | with the changes made by this amendatory Act of the 100th |
20 | | General 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 |
23 | | is amended by changing Sections 3 and 10 as follows:
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24 | | (5 ILCS 375/3) (from Ch. 127, par. 523)
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1 | | Sec. 3. Definitions. Unless the context otherwise |
2 | | requires, the
following words and phrases as used in this Act |
3 | | shall have the following
meanings. The Department may define |
4 | | these and other words and phrases
separately for the purpose of |
5 | | implementing specific programs providing benefits
under this |
6 | | Act.
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7 | | (a) "Administrative service organization" means any |
8 | | person, firm or
corporation experienced in the handling of |
9 | | claims which is
fully qualified, financially sound and capable |
10 | | of meeting the service
requirements of a contract of |
11 | | administration executed with the Department.
|
12 | | (b) "Annuitant" means (1) an employee who retires, or has |
13 | | retired,
on or after January 1, 1966 on an immediate annuity |
14 | | under the provisions
of Articles 2, 14 (including an employee |
15 | | who has elected to receive an alternative retirement |
16 | | cancellation payment under Section 14-108.5 of the Illinois |
17 | | Pension Code in lieu of an annuity or who meets the criteria |
18 | | for retirement, but in lieu of receiving an annuity under that |
19 | | Article has elected to receive an accelerated pension benefit |
20 | | payment under Section 14-147.5 of that Article ), 15 (including |
21 | | an employee who has retired under the optional
retirement |
22 | | program established under Section 15-158.2 or who meets the |
23 | | criteria for retirement but in lieu of receiving an annuity |
24 | | under that Article has elected to receive an accelerated |
25 | | pension benefit payment under Section 15-185.5 of the Article ),
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26 | | paragraphs (2), (3), or (5) of Section 16-106 (including an |
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1 | | employee who meets the criteria for retirement, but in lieu of |
2 | | receiving an annuity under that Article has elected to receive |
3 | | an accelerated pension benefit payment under Section 16-190.5 |
4 | | of the Illinois Pension Code) , or
Article 18 of the Illinois |
5 | | Pension Code; (2) any person who was receiving
group insurance |
6 | | coverage under this Act as of March 31, 1978 by
reason of his |
7 | | status as an annuitant, even though the annuity in relation
to |
8 | | which such coverage was provided is a proportional annuity |
9 | | based on less
than the minimum period of service required for a |
10 | | retirement annuity in
the system involved; (3) any person not |
11 | | otherwise covered by this Act
who has retired as a |
12 | | participating member under Article 2 of the Illinois
Pension |
13 | | Code but is ineligible for the retirement annuity under Section
|
14 | | 2-119 of the Illinois Pension Code; (4) the spouse of any |
15 | | person who
is receiving a retirement annuity under Article 18 |
16 | | of the Illinois Pension
Code and who is covered under a group |
17 | | health insurance program sponsored
by a governmental employer |
18 | | other than the State of Illinois and who has
irrevocably |
19 | | elected to waive his or her coverage under this Act and to have
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20 | | his or her spouse considered as the "annuitant" under this Act |
21 | | and not as
a "dependent"; or (5) an employee who retires, or |
22 | | has retired, from a
qualified position, as determined according |
23 | | to rules promulgated by the
Director, under a qualified local |
24 | | government, a qualified rehabilitation
facility, a qualified |
25 | | domestic violence shelter or service, or a qualified child |
26 | | advocacy center. (For definition
of "retired employee", see (p) |
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1 | | post).
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2 | | (b-5) (Blank).
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3 | | (b-6) (Blank).
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4 | | (b-7) (Blank).
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5 | | (c) "Carrier" means (1) an insurance company, a corporation |
6 | | organized
under the Limited Health Service Organization Act or |
7 | | the Voluntary Health
Services Plan Act, a partnership, or other |
8 | | nongovernmental organization,
which is authorized to do group |
9 | | life or group health insurance business in
Illinois, or (2) the |
10 | | State of Illinois as a self-insurer.
|
11 | | (d) "Compensation" means salary or wages payable on a |
12 | | regular
payroll by the State Treasurer on a warrant of the |
13 | | State Comptroller out
of any State, trust or federal fund, or |
14 | | by the Governor of the State
through a disbursing officer of |
15 | | the State out of a trust or out of
federal funds, or by any |
16 | | Department out of State, trust, federal or
other funds held by |
17 | | the State Treasurer or the Department, to any person
for |
18 | | personal services currently performed, and ordinary or |
19 | | accidental
disability benefits under Articles 2, 14, 15 |
20 | | (including ordinary or accidental
disability benefits under |
21 | | the optional retirement program established under
Section |
22 | | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or |
23 | | Article 18 of the Illinois Pension Code, for disability
|
24 | | incurred after January 1, 1966, or benefits payable under the |
25 | | Workers'
Compensation or Occupational Diseases Act or benefits |
26 | | payable under a sick
pay plan established in accordance with |
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1 | | Section 36 of the State Finance Act.
"Compensation" also means |
2 | | salary or wages paid to an employee of any
qualified local |
3 | | government, qualified rehabilitation facility,
qualified |
4 | | domestic violence shelter or service, or qualified child |
5 | | advocacy center.
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6 | | (e) "Commission" means the State Employees Group Insurance |
7 | | Advisory
Commission authorized by this Act. Commencing July 1, |
8 | | 1984, "Commission"
as used in this Act means the Commission on |
9 | | Government Forecasting and Accountability as
established by |
10 | | the Legislative Commission Reorganization Act of 1984.
|
11 | | (f) "Contributory", when referred to as contributory |
12 | | coverage, shall
mean optional coverages or benefits elected by |
13 | | the member toward the cost of
which such member makes |
14 | | contribution, or which are funded in whole or in part
through |
15 | | the acceptance of a reduction in earnings or the foregoing of |
16 | | an
increase in earnings by an employee, as distinguished from |
17 | | noncontributory
coverage or benefits which are paid entirely by |
18 | | the State of Illinois
without reduction of the member's salary.
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19 | | (g) "Department" means any department, institution, board,
|
20 | | commission, officer, court or any agency of the State |
21 | | government
receiving appropriations and having power to |
22 | | certify payrolls to the
Comptroller authorizing payments of |
23 | | salary and wages against such
appropriations as are made by the |
24 | | General Assembly from any State fund, or
against trust funds |
25 | | held by the State Treasurer and includes boards of
trustees of |
26 | | the retirement systems created by Articles 2, 14, 15, 16 and
18 |
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1 | | of the Illinois Pension Code. "Department" also includes the |
2 | | Illinois
Comprehensive Health Insurance Board, the Board of |
3 | | Examiners established under
the Illinois Public Accounting |
4 | | Act, and the Illinois Finance Authority.
|
5 | | (h) "Dependent", when the term is used in the context of |
6 | | the 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 |
8 | | who lives with the
member from the time of the filing of a |
9 | | petition for adoption until entry
of an order of adoption, a |
10 | | stepchild or adjudicated child, or a child who lives with the |
11 | | member
if such member is a court appointed guardian of the |
12 | | child or (2)
age 19 or over who has a mental or physical |
13 | | disability from a cause originating prior to the age of 19 (age |
14 | | 26 if enrolled as an adult child dependent). For
the health |
15 | | plan only, the term "dependent" also includes (1) any person
|
16 | | enrolled prior to the effective date of this Section who is |
17 | | dependent upon
the member to the extent that the member may |
18 | | claim such person as a
dependent for income tax deduction |
19 | | purposes and (2) any person who
has received after June 30, |
20 | | 2000 an organ transplant and who is financially
dependent upon |
21 | | the member and eligible to be claimed as a dependent for income
|
22 | | tax purposes. A member requesting to cover any dependent must |
23 | | provide documentation as requested by the Department of Central |
24 | | Management Services and file with the Department any and all |
25 | | forms required by the Department.
|
26 | | (i) "Director" means the Director of the Illinois |
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1 | | Department of Central
Management Services.
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2 | | (j) "Eligibility period" means the period of time a member |
3 | | has to
elect enrollment in programs or to select benefits |
4 | | without regard to
age, sex or health.
|
5 | | (k) "Employee" means and includes each officer or employee |
6 | | in the
service of a department who (1) receives his |
7 | | compensation for
service rendered to the department on a |
8 | | warrant issued pursuant to a payroll
certified by a department |
9 | | or on a warrant or check issued and drawn by a
department upon |
10 | | a trust, federal or other fund or on a warrant issued
pursuant |
11 | | to a payroll certified by an elected or duly appointed officer
|
12 | | of the State or who receives payment of the performance of |
13 | | personal
services on a warrant issued pursuant to a payroll |
14 | | certified by a
Department and drawn by the Comptroller upon the |
15 | | State Treasurer against
appropriations made by the General |
16 | | Assembly from any fund or against
trust funds held by the State |
17 | | Treasurer, and (2) is employed full-time or
part-time in a |
18 | | position normally requiring actual performance of duty
during |
19 | | not less than 1/2 of a normal work period, as established by |
20 | | the
Director in cooperation with each department, except that |
21 | | persons elected
by popular vote will be considered employees |
22 | | during the entire
term for which they are elected regardless of |
23 | | hours devoted to the
service of the State, and (3) except that |
24 | | "employee" does not include any
person who is not eligible by |
25 | | reason of such person's employment to
participate in one of the |
26 | | State retirement systems under Articles 2, 14, 15
(either the |
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1 | | regular Article 15 system or the optional retirement program
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2 | | established under Section 15-158.2) or 18, or under paragraph |
3 | | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension |
4 | | Code, but such term does include persons who are employed |
5 | | during
the 6 month qualifying period under Article 14 of the |
6 | | Illinois Pension
Code. Such term also includes any person who |
7 | | (1) after January 1, 1966,
is receiving ordinary or accidental |
8 | | disability benefits under Articles
2, 14, 15 (including |
9 | | ordinary or accidental disability benefits under the
optional |
10 | | retirement program established under Section 15-158.2), |
11 | | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of |
12 | | the
Illinois Pension Code, for disability incurred after |
13 | | January 1, 1966, (2)
receives total permanent or total |
14 | | temporary disability under the Workers'
Compensation Act or |
15 | | Occupational Disease Act as a result of injuries
sustained or |
16 | | illness contracted in the course of employment with the
State |
17 | | of Illinois, or (3) is not otherwise covered under this Act and |
18 | | has
retired as a participating member under Article 2 of the |
19 | | Illinois Pension
Code but is ineligible for the retirement |
20 | | annuity under Section 2-119 of
the Illinois Pension Code. |
21 | | However, a person who satisfies the criteria
of the foregoing |
22 | | definition of "employee" except that such person is made
|
23 | | ineligible to participate in the State Universities Retirement |
24 | | System by
clause (4) of subsection (a) of Section 15-107 of the |
25 | | Illinois Pension
Code is also an "employee" for the purposes of |
26 | | this Act. "Employee" also
includes any person receiving or |
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1 | | eligible for benefits under a sick pay
plan established in |
2 | | accordance with Section 36 of the State Finance Act.
"Employee" |
3 | | also includes (i) each officer or employee in the service of a
|
4 | | qualified local government, including persons appointed as |
5 | | trustees of
sanitary districts regardless of hours devoted to |
6 | | the service of the
sanitary district, (ii) each employee in the |
7 | | service of a qualified
rehabilitation facility, (iii) each |
8 | | full-time employee in the service of a
qualified domestic |
9 | | violence shelter or service, and (iv) each full-time employee |
10 | | in the service of a qualified child advocacy center, as |
11 | | determined according to
rules promulgated by the Director.
|
12 | | (l) "Member" means an employee, annuitant, retired |
13 | | employee or survivor. In the case of an annuitant or retired |
14 | | employee who first becomes an annuitant or retired employee on |
15 | | or after the effective date of this amendatory Act of the 97th |
16 | | General Assembly, the individual must meet the minimum vesting |
17 | | requirements of the applicable retirement system in order to be |
18 | | eligible for group insurance benefits under that system. In the |
19 | | case of a survivor who first becomes a survivor on or after the |
20 | | effective date of this amendatory Act of the 97th General |
21 | | Assembly, the deceased employee, annuitant, or retired |
22 | | employee upon whom the annuity is based must have been eligible |
23 | | to participate in the group insurance system under the |
24 | | applicable retirement system in order for the survivor to be |
25 | | eligible for group insurance benefits under that system.
|
26 | | (m) "Optional coverages or benefits" means those coverages |
|
| | 10000SB0011sam002 | - 19 - | LRB100 06001 RPS 18499 a |
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1 | | or
benefits available to the member on his or her voluntary |
2 | | election, and at
his or her own expense.
|
3 | | (n) "Program" means the group life insurance, health |
4 | | benefits and other
employee benefits designed and contracted |
5 | | for by the Director under this Act.
|
6 | | (o) "Health plan" means a health benefits
program offered
|
7 | | by the State of Illinois for persons eligible for the plan.
|
8 | | (p) "Retired employee" means any person who would be an |
9 | | annuitant as
that term is defined herein but for the fact that |
10 | | such person retired prior to
January 1, 1966. Such term also |
11 | | includes any person formerly employed by
the University of |
12 | | Illinois in the Cooperative Extension Service who would
be an |
13 | | annuitant but for the fact that such person was made ineligible |
14 | | to
participate in the State Universities Retirement System by |
15 | | clause (4) of
subsection (a) of Section 15-107 of the Illinois
|
16 | | Pension Code.
|
17 | | (q) "Survivor" means a person receiving an annuity as a |
18 | | survivor of an
employee or of an annuitant. "Survivor" also |
19 | | includes: (1) the surviving
dependent of a person who satisfies |
20 | | the definition of "employee" except that
such person is made |
21 | | ineligible to participate in the State Universities
Retirement |
22 | | System by clause (4) of subsection (a)
of Section 15-107 of the |
23 | | Illinois Pension Code; (2) the surviving
dependent of any |
24 | | person formerly employed by the University of Illinois in
the |
25 | | Cooperative Extension Service who would be an annuitant except |
26 | | for the
fact that such person was made ineligible to |
|
| | 10000SB0011sam002 | - 20 - | LRB100 06001 RPS 18499 a |
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1 | | participate in the State
Universities Retirement System by |
2 | | clause (4) of subsection (a) of Section
15-107 of the Illinois |
3 | | Pension Code; and (3) the surviving dependent of a person who |
4 | | was an annuitant under this Act by virtue of receiving an |
5 | | alternative retirement cancellation payment under Section |
6 | | 14-108.5 of the Illinois Pension Code.
|
7 | | (q-2) "SERS" means the State Employees' Retirement System |
8 | | of Illinois, created under Article 14 of the Illinois Pension |
9 | | Code.
|
10 | | (q-3) "SURS" means the State Universities Retirement |
11 | | System, created under Article 15 of the Illinois Pension Code.
|
12 | | (q-4) "TRS" means the Teachers' Retirement System of the |
13 | | State of Illinois, created under Article 16 of the Illinois |
14 | | Pension Code.
|
15 | | (q-5) (Blank).
|
16 | | (q-6) (Blank).
|
17 | | (q-7) (Blank).
|
18 | | (r) "Medical services" means the services provided within |
19 | | the scope
of their licenses by practitioners in all categories |
20 | | licensed under the
Medical Practice Act of 1987.
|
21 | | (s) "Unit of local government" means any county, |
22 | | municipality,
township, school district (including a |
23 | | combination of school districts under
the Intergovernmental |
24 | | Cooperation Act), special district or other unit,
designated as |
25 | | a
unit of local government by law, which exercises limited |
26 | | governmental
powers or powers in respect to limited |
|
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1 | | governmental subjects, any
not-for-profit association with a |
2 | | membership that primarily includes
townships and township |
3 | | officials, that has duties that include provision of
research |
4 | | service, dissemination of information, and other acts for the
|
5 | | purpose of improving township government, and that is funded |
6 | | wholly or
partly in accordance with Section 85-15 of the |
7 | | Township Code; any
not-for-profit corporation or association, |
8 | | with a membership consisting
primarily of municipalities, that |
9 | | operates its own utility system, and
provides research, |
10 | | training, dissemination of information, or other acts to
|
11 | | promote cooperation between and among municipalities that |
12 | | provide utility
services and for the advancement of the goals |
13 | | and purposes of its
membership;
the Southern Illinois |
14 | | Collegiate Common Market, which is a consortium of higher
|
15 | | education institutions in Southern Illinois; the Illinois |
16 | | Association of
Park Districts; and any hospital provider that |
17 | | is owned by a county that has 100 or fewer hospital beds and |
18 | | has not already joined the program. "Qualified
local |
19 | | government" means a unit of local government approved by the |
20 | | Director and
participating in a program created under |
21 | | subsection (i) of Section 10 of this
Act.
|
22 | | (t) "Qualified rehabilitation facility" means any |
23 | | not-for-profit
organization that is accredited by the |
24 | | Commission on Accreditation of
Rehabilitation Facilities or |
25 | | certified by the Department
of Human Services (as successor to |
26 | | the Department of Mental Health
and Developmental |
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| | 10000SB0011sam002 | - 22 - | LRB100 06001 RPS 18499 a |
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1 | | Disabilities) to provide services to persons with
disabilities
|
2 | | and which receives funds from the State of Illinois for |
3 | | providing those
services, approved by the Director and |
4 | | participating in a program created
under subsection (j) of |
5 | | Section 10 of this Act.
|
6 | | (u) "Qualified domestic violence shelter or service" means |
7 | | any Illinois
domestic violence shelter or service and its |
8 | | administrative offices funded
by the Department of Human |
9 | | Services (as successor to the Illinois Department of
Public |
10 | | Aid),
approved by the Director and
participating in a program |
11 | | created 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.
|
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| | 10000SB0011sam002 | - 23 - | LRB100 06001 RPS 18499 a |
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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 |
15 | | under paragraph (2) of this subsection (w), a dependent of the |
16 | | survivor of a TRS benefit recipient who first becomes a |
17 | | dependent of a survivor of a TRS benefit recipient on or after |
18 | | the effective date of this amendatory Act of the 97th General |
19 | | Assembly unless that dependent would have been eligible for |
20 | | coverage as a dependent of the deceased TRS benefit recipient |
21 | | upon whom the survivor benefit is based. |
22 | | (x) "Military leave" refers to individuals in basic
|
23 | | training for reserves, special/advanced training, annual |
24 | | training, emergency
call up, activation by the President of the |
25 | | United States, or any other training or duty in service to the |
26 | | United States Armed Forces.
|
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1 | | (y) (Blank).
|
2 | | (z) "Community college benefit recipient" means a person |
3 | | who:
|
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 |
22 | | person 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 |
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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 |
8 | | include, as indicated under paragraph (2) of this subsection |
9 | | (aa), a dependent of the survivor of a community college |
10 | | benefit recipient who first becomes a dependent of a survivor |
11 | | of a community college benefit recipient on or after the |
12 | | effective date of this amendatory Act of the 97th General |
13 | | Assembly unless that dependent would have been eligible for |
14 | | coverage as a dependent of the deceased community college |
15 | | benefit recipient upon whom the survivor annuity is based. |
16 | | (bb) "Qualified child advocacy center" means any Illinois |
17 | | child advocacy center and its administrative offices funded by |
18 | | the Department of Children and Family Services, as defined by |
19 | | the Children's Advocacy Center Act (55 ILCS 80/), approved by |
20 | | the Director and participating in a program created under |
21 | | subsection (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 |
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1 | | group life
insurance and, subject to member paid contributions |
2 | | set by the Department or
required by this Section and except as |
3 | | provided in this Section, the basic program of group health |
4 | | benefits on each
eligible member, except a member, not |
5 | | otherwise
covered by this Act, who has retired as a |
6 | | participating member under Article 2
of the Illinois Pension |
7 | | Code but is ineligible for the retirement annuity under
Section |
8 | | 2-119 of the Illinois Pension Code, and part of each eligible |
9 | | member's
and retired member's premiums for health insurance |
10 | | coverage for enrolled
dependents as provided by Section 9. The |
11 | | State shall pay the cost of the basic
program of group health |
12 | | benefits only after benefits are reduced by the amount
of |
13 | | benefits covered by Medicare for all members and dependents
who |
14 | | are eligible for benefits under Social Security or
the Railroad |
15 | | Retirement system or who had sufficient Medicare-covered
|
16 | | government employment, except that such reduction in benefits |
17 | | shall apply only
to those members and dependents who (1) first |
18 | | become eligible
for such Medicare coverage on or after July 1, |
19 | | 1992; or (2) are
Medicare-eligible members or dependents of a |
20 | | local government unit which began
participation in the program |
21 | | on or after July 1, 1992; or (3) remain eligible
for, but no |
22 | | longer receive Medicare coverage which they had been receiving |
23 | | on
or after July 1, 1992. The Department may determine the |
24 | | aggregate level of the
State's contribution on the basis of |
25 | | actual cost of medical services adjusted
for age, sex or |
26 | | geographic or other demographic characteristics which affect
|
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1 | | the costs of such programs.
|
2 | | The cost of participation in the basic program of group |
3 | | health benefits
for the dependent or survivor of a living or |
4 | | deceased retired employee who was
formerly employed by the |
5 | | University of Illinois in the Cooperative Extension
Service and |
6 | | would be an annuitant but for the fact that he or she was made
|
7 | | ineligible to participate in the State Universities Retirement |
8 | | System by clause
(4) of subsection (a) of Section 15-107 of the |
9 | | Illinois Pension Code shall not
be greater than the cost of |
10 | | participation that would otherwise apply to that
dependent or |
11 | | survivor if he or she were the dependent or survivor of an
|
12 | | annuitant 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 |
21 | | waive or terminate coverage in
the program of group health |
22 | | benefits. Any such annuitant, survivor, or retired employee
who |
23 | | has waived or terminated coverage may enroll or re-enroll in |
24 | | the
program of group health benefits only during the annual |
25 | | benefit choice period,
as determined by the Director; except |
26 | | that in the event of termination of
coverage due to nonpayment |
|
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1 | | of premiums, the annuitant, survivor, or retired employee
may |
2 | | not re-enroll in the program.
|
3 | | (a-8.5) Beginning on the effective date of this amendatory |
4 | | Act of the 97th General Assembly, the Director of Central |
5 | | Management Services shall, on an annual basis, determine the |
6 | | amount that the State shall contribute toward the basic program |
7 | | of group health benefits on behalf of annuitants (including |
8 | | individuals who (i) participated in the General Assembly |
9 | | Retirement System, the State Employees' Retirement System of |
10 | | Illinois, the State Universities Retirement System, the |
11 | | Teachers' Retirement System of the State of Illinois, or the |
12 | | Judges Retirement System of Illinois and (ii) qualify as |
13 | | annuitants under subsection (b) of Section 3 of this Act), |
14 | | survivors (including individuals who (i) receive an annuity as |
15 | | a survivor of an individual who participated in the General |
16 | | Assembly Retirement System, the State Employees' Retirement |
17 | | System of Illinois, the State Universities Retirement System, |
18 | | the Teachers' Retirement System of the State of Illinois, or |
19 | | the Judges Retirement System of Illinois and (ii) qualify as |
20 | | survivors under subsection (q) of Section 3 of this Act), and |
21 | | retired employees (as defined in subsection (p) of Section 3 of |
22 | | this Act). The remainder of the cost of coverage for each |
23 | | annuitant, survivor, or retired employee, as determined by the |
24 | | Director of Central Management Services, shall be the |
25 | | responsibility of that annuitant, survivor, or retired |
26 | | employee. |
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1 | | Contributions required of annuitants, survivors, and |
2 | | retired employees shall be the same for all retirement systems |
3 | | and shall also be based on whether an individual has made an |
4 | | election under Section 15-135.1 of the Illinois Pension Code. |
5 | | Contributions may be based on annuitants', survivors', or |
6 | | retired employees' Medicare eligibility, but may not be based |
7 | | on Social Security eligibility. |
8 | | (a-9) No later than May 1 of each calendar year, the |
9 | | Director
of Central Management Services shall certify in |
10 | | writing to the Executive
Secretary of the State Employees' |
11 | | Retirement System of Illinois the amounts
of the Medicare |
12 | | supplement health care premiums and the amounts of the
health |
13 | | care premiums for all other retirees who are not Medicare |
14 | | eligible.
|
15 | | A separate calculation of the premiums based upon the |
16 | | actual cost of each
health care plan shall be so certified.
|
17 | | The Director of Central Management Services shall provide |
18 | | to the
Executive Secretary of the State Employees' Retirement |
19 | | System of
Illinois such information, statistics, and other data |
20 | | as he or she
may require to review the premium amounts |
21 | | certified by the Director
of Central Management Services.
|
22 | | The Department of Central Management Services, or any |
23 | | successor agency designated to procure healthcare contracts |
24 | | pursuant to this Act, is authorized to establish funds, |
25 | | separate accounts provided by any bank or banks as defined by |
26 | | the Illinois Banking Act, or separate accounts provided by any |
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1 | | savings and loan association or associations as defined by the |
2 | | Illinois Savings and Loan Act of 1985 to be held by the |
3 | | Director, outside the State treasury, for the purpose of |
4 | | receiving the transfer of moneys from the Local Government |
5 | | Health Insurance Reserve Fund. The Department may promulgate |
6 | | rules further defining the methodology for the transfers. Any |
7 | | interest earned by moneys in the funds or accounts shall inure |
8 | | to the Local Government Health Insurance Reserve Fund. The |
9 | | transferred moneys, and interest accrued thereon, shall be used |
10 | | exclusively for transfers to administrative service |
11 | | organizations or their financial institutions for payments of |
12 | | claims to claimants and providers under the self-insurance |
13 | | health plan. The transferred moneys, and interest accrued |
14 | | thereon, shall not be used for any other purpose including, but |
15 | | not limited to, reimbursement of administration fees due the |
16 | | administrative service organization pursuant to its contract |
17 | | or contracts with the Department.
|
18 | | (a-10) To the extent that participation, benefits, or |
19 | | premiums under this Act are based on a person's service credit |
20 | | under an Article of the Illinois Pension Code, service credit |
21 | | terminated in exchange for an accelerated pension benefit |
22 | | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that |
23 | | Code shall be included in determining a person's service credit |
24 | | for the purposes of this Act. |
25 | | (b) State employees who become eligible for this program on |
26 | | or after January
1, 1980 in positions normally requiring actual |
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1 | | performance of duty not less
than 1/2 of a normal work period |
2 | | but not equal to that of a normal work period,
shall be given |
3 | | the option of participating in the available program. If the
|
4 | | employee elects coverage, the State shall contribute on behalf |
5 | | of such employee
to the cost of the employee's benefit and any |
6 | | applicable dependent supplement,
that sum which bears the same |
7 | | percentage as that percentage of time the
employee regularly |
8 | | works when compared to normal work period.
|
9 | | (c) The basic non-contributory coverage from the basic |
10 | | program of
group health benefits shall be continued for each |
11 | | employee not in pay status or
on active service by reason of |
12 | | (1) leave of absence due to illness or injury,
(2) authorized |
13 | | educational leave of absence or sabbatical leave, or (3)
|
14 | | military leave. This coverage shall continue until
expiration |
15 | | of authorized leave and return to active service, but not to |
16 | | exceed
24 months for leaves under item (1) or (2). This |
17 | | 24-month limitation and the
requirement of returning to active |
18 | | service shall not apply to persons receiving
ordinary or |
19 | | accidental disability benefits or retirement benefits through |
20 | | the
appropriate State retirement system or benefits under the |
21 | | Workers' Compensation
or Occupational Disease Act.
|
22 | | (d) The basic group life insurance coverage shall continue, |
23 | | with
full State contribution, where such person is (1) absent |
24 | | from active
service by reason of disability arising from any |
25 | | cause other than
self-inflicted, (2) on authorized educational |
26 | | leave of absence or
sabbatical leave, or (3) on military leave.
|
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| | 10000SB0011sam002 | - 32 - | LRB100 06001 RPS 18499 a |
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1 | | (e) Where the person is in non-pay status for a period in |
2 | | excess of
30 days or on leave of absence, other than by reason |
3 | | of disability,
educational or sabbatical leave, or military |
4 | | leave, such
person may continue coverage only by making |
5 | | personal
payment equal to the amount normally contributed by |
6 | | the State on such person's
behalf. Such payments and coverage |
7 | | may be continued: (1) until such time as
the person returns to |
8 | | a status eligible for coverage at State expense, but not
to |
9 | | exceed 24 months or (2) until such person's employment or |
10 | | annuitant status
with the State is terminated (exclusive of any |
11 | | additional service imposed pursuant to law).
|
12 | | (f) The Department shall establish by rule the extent to |
13 | | which other
employee benefits will continue for persons in |
14 | | non-pay status or who are
not in active service.
|
15 | | (g) The State shall not pay the cost of the basic |
16 | | non-contributory
group life insurance, program of health |
17 | | benefits and other employee benefits
for members who are |
18 | | survivors as defined by paragraphs (1) and (2) of
subsection |
19 | | (q) of Section 3 of this Act. The costs of benefits for these
|
20 | | survivors shall be paid by the survivors or by the University |
21 | | of Illinois
Cooperative Extension Service, or any combination |
22 | | thereof.
However, the State shall pay the amount of the |
23 | | reduction in the cost of
participation, if any, resulting from |
24 | | the amendment to subsection (a) made
by this amendatory Act of |
25 | | the 91st General Assembly.
|
26 | | (h) Those persons occupying positions with any department |
|
| | 10000SB0011sam002 | - 33 - | LRB100 06001 RPS 18499 a |
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|
1 | | as a result
of emergency appointments pursuant to Section 8b.8 |
2 | | of the Personnel Code
who are not considered employees under |
3 | | this Act shall be given the option
of participating in the |
4 | | programs of group life insurance, health benefits and
other |
5 | | employee benefits. Such persons electing coverage may |
6 | | participate only
by making payment equal to the amount normally |
7 | | contributed by the State for
similarly situated employees. Such |
8 | | amounts shall be determined by the
Director. Such payments and |
9 | | coverage may be continued until such time as the
person becomes |
10 | | an employee pursuant to this Act or such person's appointment |
11 | | is
terminated.
|
12 | | (i) Any unit of local government within the State of |
13 | | Illinois
may apply to the Director to have its employees, |
14 | | annuitants, and their
dependents provided group health |
15 | | coverage under this Act on a non-insured
basis. To participate, |
16 | | a unit of local government must agree to enroll
all of its |
17 | | employees, who may select coverage under either the State group
|
18 | | health benefits plan or a health maintenance organization that |
19 | | has
contracted with the State to be available as a health care |
20 | | provider for
employees as defined in this Act. A unit of local |
21 | | government must remit the
entire cost of providing coverage |
22 | | under the State group health benefits plan
or, for coverage |
23 | | under a health maintenance organization, an amount determined
|
24 | | by the Director based on an analysis of the sex, age, |
25 | | geographic location, or
other relevant demographic variables |
26 | | for its employees, except that the unit of
local government |
|
| | 10000SB0011sam002 | - 34 - | LRB100 06001 RPS 18499 a |
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1 | | shall not be required to enroll those of its employees who are
|
2 | | covered spouses or dependents under this plan or another group |
3 | | policy or plan
providing health benefits as long as (1) an |
4 | | appropriate official from the unit
of local government attests |
5 | | that each employee not enrolled is a covered spouse
or |
6 | | dependent under this plan or another group policy or plan, and |
7 | | (2) at least
50% of the employees are enrolled and the unit of |
8 | | local government remits
the entire cost of providing coverage |
9 | | to those employees, except that a
participating school district |
10 | | must have enrolled at least 50% of its full-time
employees who |
11 | | have not waived coverage under the district's group health
plan |
12 | | by participating in a component of the district's cafeteria |
13 | | plan. A
participating school district is not required to enroll |
14 | | a full-time employee
who has waived coverage under the |
15 | | district's health plan, provided that an
appropriate official |
16 | | from the participating school district attests that the
|
17 | | full-time employee has waived coverage by participating in a |
18 | | component of the
district's cafeteria plan. For the purposes of |
19 | | this subsection, "participating
school district" includes a |
20 | | unit of local government whose primary purpose is
education as |
21 | | defined by the Department's rules.
|
22 | | Employees of a participating unit of local government who |
23 | | are not enrolled
due to coverage under another group health |
24 | | policy or plan may enroll in
the event of a qualifying change |
25 | | in status, special enrollment, special
circumstance as defined |
26 | | by the Director, or during the annual Benefit Choice
Period. A |
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1 | | participating unit of local government may also elect to cover |
2 | | its
annuitants. Dependent coverage shall be offered on an |
3 | | optional basis, with the
costs paid by the unit of local |
4 | | government, its employees, or some combination
of the two as |
5 | | determined by the unit of local government. The unit of local
|
6 | | government shall be responsible for timely collection and |
7 | | transmission of
dependent premiums.
|
8 | | The Director shall annually determine monthly rates of |
9 | | payment, 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 |
26 | | a health
maintenance organization, the Director shall annually |
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| | 10000SB0011sam002 | - 36 - | LRB100 06001 RPS 18499 a |
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1 | | determine for each
participating unit of local government the |
2 | | maximum monthly amount the unit
may contribute toward that |
3 | | coverage, based on an analysis of (i) the age,
sex, geographic |
4 | | location, and other relevant demographic variables of the
|
5 | | unit's employees and (ii) the cost to cover those employees |
6 | | under the State
group health benefits plan. The Director may |
7 | | similarly determine the
maximum monthly amount each unit of |
8 | | local government may contribute toward
coverage of its |
9 | | employees' dependents under a health maintenance organization.
|
10 | | Monthly payments by the unit of local government or its |
11 | | employees for
group health benefits plan or health maintenance |
12 | | organization coverage shall
be deposited in the Local |
13 | | Government Health Insurance Reserve Fund.
|
14 | | The Local Government Health Insurance Reserve Fund is |
15 | | hereby created as a nonappropriated trust fund to be held |
16 | | outside the State Treasury, with the State Treasurer as |
17 | | custodian. The Local Government Health Insurance Reserve Fund |
18 | | shall be a continuing
fund not subject to fiscal year |
19 | | limitations. The Local Government Health Insurance Reserve |
20 | | Fund is not subject to administrative charges or charge-backs, |
21 | | including but not limited to those authorized under Section 8h |
22 | | of the State Finance Act. All revenues arising from the |
23 | | administration of the health benefits program established |
24 | | under this Section shall be deposited into the Local Government |
25 | | Health Insurance Reserve Fund. Any interest earned on moneys in |
26 | | the Local Government Health Insurance Reserve Fund shall be |
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1 | | deposited into the Fund. All expenditures from this Fund
shall |
2 | | be used for payments for health care benefits for local |
3 | | government and rehabilitation facility
employees, annuitants, |
4 | | and dependents, and to reimburse the Department or
its |
5 | | administrative service organization for all expenses incurred |
6 | | in the
administration of benefits. No other State funds may be |
7 | | used for these
purposes.
|
8 | | A local government employer's participation or desire to |
9 | | participate
in a program created under this subsection shall |
10 | | not limit that employer's
duty to bargain with the |
11 | | representative of any collective bargaining unit
of its |
12 | | employees.
|
13 | | (j) Any rehabilitation facility within the State of |
14 | | Illinois may apply
to the Director to have its employees, |
15 | | annuitants, and their eligible
dependents provided group |
16 | | health coverage under this Act on a non-insured
basis. To |
17 | | participate, a rehabilitation facility must agree to enroll all
|
18 | | of its employees and remit the entire cost of providing such |
19 | | coverage for
its employees, except that the rehabilitation |
20 | | facility shall not be
required to enroll those of its employees |
21 | | who are covered spouses or
dependents under this plan or |
22 | | another group policy or plan providing health
benefits as long |
23 | | as (1) an appropriate official from the rehabilitation
facility |
24 | | attests that each employee not enrolled is a covered spouse or
|
25 | | dependent under this plan or another group policy or plan, and |
26 | | (2) at least
50% of the employees are enrolled and the |
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1 | | rehabilitation facility remits
the entire cost of providing |
2 | | coverage to those employees. Employees of a
participating |
3 | | rehabilitation facility who are not enrolled due to coverage
|
4 | | under another group health policy or plan may enroll
in the |
5 | | event of a qualifying change in status, special enrollment, |
6 | | special
circumstance as defined by the Director, or during the |
7 | | annual Benefit Choice
Period. A participating rehabilitation |
8 | | facility may also elect
to cover its annuitants. Dependent |
9 | | coverage shall be offered on an optional
basis, with the costs |
10 | | paid by the rehabilitation facility, its employees, or
some |
11 | | combination of the 2 as determined by the rehabilitation |
12 | | facility. The
rehabilitation facility shall be responsible for |
13 | | timely collection and
transmission of dependent premiums.
|
14 | | The Director shall annually determine quarterly rates of |
15 | | payment, 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.
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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 |
5 | | employees for
group health benefits shall be deposited in the |
6 | | Local Government Health
Insurance Reserve Fund.
|
7 | | (k) Any domestic violence shelter or service within the |
8 | | State of Illinois
may apply to the Director to have its |
9 | | employees, annuitants, and their
dependents provided group |
10 | | health coverage under this Act on a non-insured
basis. To |
11 | | participate, a domestic violence shelter or service must agree |
12 | | to
enroll all of its employees and pay the entire cost of |
13 | | providing such coverage
for its employees. The domestic |
14 | | violence shelter shall not be required to enroll those of its |
15 | | employees who are covered spouses or dependents under this plan |
16 | | or another group policy or plan providing health benefits as |
17 | | long as (1) an appropriate official from the domestic violence |
18 | | shelter attests that each employee not enrolled is a covered |
19 | | spouse or dependent under this plan or another group policy or |
20 | | plan and (2) at least 50% of the employees are enrolled and the |
21 | | domestic violence shelter remits the entire cost of providing |
22 | | coverage to those employees. Employees of a participating |
23 | | domestic violence shelter who are not enrolled due to coverage |
24 | | under another group health policy or plan may enroll in the |
25 | | event of a qualifying change in status, special enrollment, or |
26 | | special circumstance as defined by the Director or during the |
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1 | | annual Benefit Choice Period. A participating domestic |
2 | | violence shelter may also elect
to cover its annuitants. |
3 | | Dependent coverage shall be offered on an optional
basis, with
|
4 | | employees, or some combination of the 2 as determined by the |
5 | | domestic violence
shelter or service. The domestic violence |
6 | | shelter or service shall be
responsible for timely collection |
7 | | and transmission of dependent premiums.
|
8 | | The Director shall annually determine rates of payment,
|
9 | | 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 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 |
26 | | service or its employees
for group health insurance shall be |
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1 | | deposited in the Local Government Health
Insurance Reserve |
2 | | Fund.
|
3 | | (l) A public community college or entity organized pursuant |
4 | | to the
Public Community College Act may apply to the Director |
5 | | initially to have
only annuitants not covered prior to July 1, |
6 | | 1992 by the district's health
plan provided health coverage |
7 | | under this Act on a non-insured basis. The
community college |
8 | | must execute a 2-year contract to participate in the
Local |
9 | | Government Health Plan.
Any annuitant may enroll in the event |
10 | | of a qualifying change in status, special
enrollment, special |
11 | | circumstance as defined by the Director, or during the
annual |
12 | | Benefit Choice Period.
|
13 | | The Director shall annually determine monthly rates of |
14 | | payment subject to
the following constraints: for those |
15 | | community colleges with annuitants
only enrolled, first year |
16 | | rates shall be equal to the average cost to cover
claims for a |
17 | | State member adjusted for demographics, Medicare
|
18 | | participation, and other factors; and in the second year, a |
19 | | further adjustment
of rates shall be made to reflect the actual |
20 | | first year's claims experience
of the covered annuitants.
|
21 | | (l-5) The provisions of subsection (l) become inoperative |
22 | | on July 1, 1999.
|
23 | | (m) The Director shall adopt any rules deemed necessary for
|
24 | | implementation of this amendatory Act of 1989 (Public Act |
25 | | 86-978).
|
26 | | (n) Any child advocacy center within the State of Illinois |
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1 | | may apply to the Director to have its employees, annuitants, |
2 | | and their dependents provided group health coverage under this |
3 | | Act on a non-insured basis. To participate, a child advocacy |
4 | | center must agree to enroll all of its employees and pay the |
5 | | entire cost of providing coverage for its employees. The child
|
6 | | advocacy center shall not be required to enroll those of its
|
7 | | employees who are covered spouses or dependents under this plan
|
8 | | or another group policy or plan providing health benefits as
|
9 | | long as (1) an appropriate official from the child advocacy
|
10 | | center attests that each employee not enrolled is a covered
|
11 | | spouse or dependent under this plan or another group policy or
|
12 | | plan and (2) at least 50% of the employees are enrolled and the |
13 | | child advocacy center remits the entire cost of providing |
14 | | coverage to those employees. Employees of a participating child |
15 | | advocacy center who are not enrolled due to coverage under |
16 | | another group health policy or plan may enroll in the event of |
17 | | a qualifying change in status, special enrollment, or special |
18 | | circumstance as defined by the Director or during the annual |
19 | | Benefit Choice Period. A participating child advocacy center |
20 | | may also elect to cover its annuitants. Dependent coverage |
21 | | shall be offered on an optional basis, with the costs paid by |
22 | | the child advocacy center, its employees, or some combination |
23 | | of the 2 as determined by the child advocacy center. The child |
24 | | advocacy center shall be responsible for timely collection and |
25 | | transmission of dependent premiums. |
26 | | The Director shall annually determine rates of payment, |
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1 | | subject 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 |
17 | | employees for group health insurance shall be deposited into |
18 | | the 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 |
21 | | amended 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 |
24 | | not pay, offer, or agree to pay any future increase in income, |
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1 | | as that term is defined in Section 15-112.1 or 16-121.1 of the |
2 | | Illinois Pension Code, to any person in a manner that violates |
3 | | Section 15-132.9 or 16-122.9 of the Illinois Pension Code. |
4 | | Section 20. The Illinois Pension Code is amended by |
5 | | changing Sections 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124, |
6 | | 2-126, 2-134, 2-162, 14-131, 14-135.08, 14-152.1, 15-108.1, |
7 | | 15-111, 15-136, 15-155, 15-157, 15-165, 15-198, 16-121, |
8 | | 16-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-119.2, |
9 | | 17-129, 17-130, 18-131, 18-140, 20-121, 20-123, 20-124, and |
10 | | 20-125 and by adding Sections 2-105.3, 2-107.9, 2-110.3, |
11 | | 2-165.1, 2-166.1, 14-147.5, 15-112.1, 15-132.9, 15-185.5, |
12 | | 15-200.1, 15-201.1, 16-107.1, 16-121.1, 16-122.9, 16-190.5, |
13 | | 16-205.1, 16-206.1, 17-106.05, 17-113.4, 17-113.5, and |
14 | | 17-115.5 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 |
17 | | created to provide
retirement annuities, survivor's annuities |
18 | | and other benefits for certain
members of the General Assembly, |
19 | | certain elected state officials , and their
beneficiaries.
|
20 | | The system shall be known as the "General Assembly |
21 | | Retirement System".
All its funds and property shall be a trust |
22 | | separate from all other
entities, maintained for the purpose of |
23 | | securing payment of annuities and
benefits under this Article.
|
24 | | Participation in the retirement system created under this |
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1 | | Article is
restricted to persons who became participants before |
2 | | the effective date of this amendatory Act of the 100th General |
3 | | Assembly.
Beginning on that date, the System shall not accept |
4 | | any 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 |
8 | | Assembly of this
State , including persons who enter military |
9 | | service while a member of the
General Assembly , and any person |
10 | | serving as Governor, Lieutenant Governor,
Secretary of State, |
11 | | Treasurer, Comptroller, or Attorney General for the period
of |
12 | | service in such office.
|
13 | | Any person who has served for 10 or more years as Clerk or |
14 | | Assistant Clerk
of the House of Representatives, Secretary or |
15 | | Assistant Secretary of the
Senate, or any combination thereof, |
16 | | may elect to become a member
of this system while thenceforth |
17 | | engaged in such service by filing a
written election with the |
18 | | board. Any person so electing shall be
deemed an active member |
19 | | of the General Assembly for the purpose of validating
and |
20 | | transferring any service credits earned under any of the funds |
21 | | and systems
established under Articles 3 through 18 of this |
22 | | Code.
|
23 | | However, notwithstanding any other provision of this |
24 | | Article, a person
shall not be deemed a member for the purposes |
25 | | of this Article unless he or she
became a participant of the |
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| | 10000SB0011sam002 | - 46 - | LRB100 06001 RPS 18499 a |
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1 | | System before the effective date of this amendatory Act of the |
2 | | 100th 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 |
6 | | participant who first became a participant before January 1, |
7 | | 2011.
|
8 | | (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
|
9 | | Sec. 2-107. Participant. "Participant": Any member who |
10 | | elects to
participate; and any former member who elects to |
11 | | continue participation
under Section 2-117.1, for the duration |
12 | | of such continued participation. However, notwithstanding any |
13 | | other provision of this Article, a person
shall not be deemed a |
14 | | participant for the purposes of this Article unless he or she
|
15 | | became a participant of the System before the effective date of |
16 | | this 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 |
20 | | in income" means an increase in income in any form offered to a |
21 | | Tier 1 employee for service under this Article after June 30, |
22 | | 2018 that qualifies as "salary", as defined in Section 2-108, |
23 | | or would qualify as "salary" but for the fact that it was |
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1 | | offered to and accepted by a Tier 1 employee under the |
2 | | condition 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, |
5 | | which has been
held unconstitutional)
|
6 | | Sec. 2-108. Salary. "Salary": |
7 | | (1) For members of the General Assembly,
the total |
8 | | compensation paid to the member by the State for one
year of |
9 | | service, including the additional amounts, if any, paid to
the |
10 | | member as an officer pursuant to Section 1 of "An Act
in |
11 | | relation to the compensation and emoluments of the members of |
12 | | the
General Assembly", approved December 6, 1907, as now or |
13 | | hereafter
amended.
|
14 | | (2) For the State executive officers specified
in Section |
15 | | 2-105, the total compensation paid to the member for one year
|
16 | | of service.
|
17 | | (3) For members of the System who are participants under |
18 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk |
19 | | of the House of
Representatives or Secretary or Assistant |
20 | | Secretary of the Senate, the
total compensation paid to the |
21 | | member for one year of service, but not to
exceed the salary of |
22 | | the highest salaried officer of the General Assembly.
|
23 | | However, in the event that federal law results in any |
24 | | participant
receiving imputed income based on the value of |
25 | | group term life insurance
provided by the State, such imputed |
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1 | | income shall not be included in salary
for the purposes of this |
2 | | Article.
|
3 | | Notwithstanding any other provision of this Section, |
4 | | "salary" does not include any future increase in income that is |
5 | | offered for service to a Tier 1 employee under this Article |
6 | | pursuant to the condition set forth in subsection (c) of |
7 | | Section 2-110.3 and accepted under that condition by a Tier 1 |
8 | | employee who has made the election under paragraph (2) of |
9 | | subsection (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 |
12 | | Tier 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 |
17 | | election 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 |
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1 | | (2) to not agree to paragraph (1) of this subsection. |
2 | | The election required under this subsection (a) shall be |
3 | | made by each active Tier 1 employee no earlier than January 1, |
4 | | 2018 and no later than March 31, 2018, except that a person who |
5 | | returns to active service as a Tier 1 employee under this |
6 | | Article on or after January 1, 2018 and has not yet made an |
7 | | election under this Section must make the election under this |
8 | | subsection (a) within 60 days after returning to active service |
9 | | as a Tier 1 employee. |
10 | | If a Tier 1 employee fails for any reason to make a |
11 | | required election under this subsection within the time |
12 | | specified, then the employee shall be deemed to have made the |
13 | | election under paragraph (2) of this subsection. |
14 | | (a-5) If this Section is enjoined or stayed by an Illinois |
15 | | court or a court of competent jurisdiction pending the entry of |
16 | | a final and unappealable decision, and this Section is |
17 | | determined to be constitutional or otherwise valid by a final |
18 | | unappealable decision of an Illinois court or a court of |
19 | | competent jurisdiction, then the election procedure set forth |
20 | | in subsection (a) of this Section shall commence on the 180th |
21 | | calendar day after the date of the issuance of the final |
22 | | unappealable decision and shall conclude at the end of the |
23 | | 270th calendar day after that date. |
24 | | (a-10) All elections under subsection (a) that are made or |
25 | | deemed to be made before July 1, 2018 shall take effect on July |
26 | | 1, 2018. Elections that are made or deemed to be made on or |
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1 | | after July 1, 2018 shall take effect on the first day of the |
2 | | month following the month in which the election is made or |
3 | | deemed to be made. |
4 | | (b) As adequate and legal consideration provided under this |
5 | | amendatory Act of the 100th General Assembly for making an |
6 | | election under paragraph (1) of subsection (a) of this Section, |
7 | | the State of Illinois shall be expressly and irrevocably |
8 | | prohibited from offering any future increases in income to a |
9 | | Tier 1 employee who has made an election under paragraph (1) of |
10 | | subsection (a) of this Section on the condition of not |
11 | | constituting salary under Section 2-108. |
12 | | As adequate and legal consideration provided under this |
13 | | amendatory Act of the 100th General Assembly for making an |
14 | | election under paragraph (1) of subsection (a) of this Section, |
15 | | each Tier 1 employee who has made an election under paragraph |
16 | | (1) of subsection (a) of this Section shall receive a |
17 | | consideration payment equal to 10% of the contributions made by |
18 | | or on behalf of the employee under Section 2-126 before the |
19 | | effective date of that election. The State Comptroller shall |
20 | | pay the consideration payment to the Tier 1 employee out of |
21 | | funds appropriated for that purpose under Section 1.9 of the |
22 | | State Pension Funds Continuing Appropriation Act. The System |
23 | | shall calculate the amount of each consideration payment and |
24 | | shall certify to the State Comptroller the amount of the |
25 | | consideration payment, together with the name, address, and any |
26 | | other available payment information of the Tier 1 employee as |
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1 | | found in the records of the System. |
2 | | (c) A Tier 1 employee who makes the election under |
3 | | paragraph (2) of subsection (a) of this Section shall not be |
4 | | subject to paragraph (1) of subsection (a) of this Section. |
5 | | However, each future increase in income offered for service as |
6 | | a member under this Article to a Tier 1 employee who has made |
7 | | the election under paragraph (2) of subsection (a) of this |
8 | | Section shall be offered expressly and irrevocably on the |
9 | | condition of not constituting salary under Section 2-108 and |
10 | | that the Tier 1 employee's acceptance of the offered future |
11 | | increase in income shall constitute his or her agreement to |
12 | | that condition. |
13 | | (d) The System shall make a good faith effort to contact |
14 | | each Tier 1 employee subject to this Section. The System shall |
15 | | mail information describing the required election to each Tier |
16 | | 1 employee by United States Postal Service mail to his or her |
17 | | last known address on file with the System. If the Tier 1 |
18 | | employee is not responsive to other means of contact, it is |
19 | | sufficient for the System to publish the details of any |
20 | | required elections on its website or to publish those details |
21 | | in a regularly published newsletter or other existing public |
22 | | forum. |
23 | | Tier 1 employees who are subject to this Section shall be |
24 | | provided with an election packet containing information |
25 | | regarding their options, as well as the forms necessary to make |
26 | | the required election. Upon request, the System shall offer |
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1 | | Tier 1 employees an opportunity to receive information from the |
2 | | System before making the required election. The information may |
3 | | be provided through video materials, group presentations, |
4 | | individual consultation with a member or authorized |
5 | | representative of the System in person or by telephone or other |
6 | | electronic means, or any combination of those methods. The |
7 | | System shall not provide advice or counseling with respect to |
8 | | which election a Tier 1 employee should make or specific to the |
9 | | legal or tax circumstances of or consequences to the Tier 1 |
10 | | employee. |
11 | | The System shall inform Tier 1 employees in the election |
12 | | packet required under this subsection that the Tier 1 employee |
13 | | may also wish to obtain information and counsel relating to the |
14 | | election required under this Section from any other available |
15 | | source, including, but not limited to, labor organizations and |
16 | | private counsel. |
17 | | In no event shall the System, its staff, or the Board be |
18 | | held liable for any information given to a member regarding the |
19 | | elections under this Section. The System shall coordinate with |
20 | | the Illinois Department of Central Management Services and each |
21 | | other retirement system administering an election in |
22 | | accordance with this amendatory Act of the 100th General |
23 | | Assembly to provide information concerning the impact of the |
24 | | election set forth in this Section. |
25 | | (e) Notwithstanding any other provision of law, each future |
26 | | increase in income offered by the State of Illinois for service |
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1 | | as a member must be offered expressly and irrevocably on the |
2 | | condition of not constituting "salary" under Section 2-108 to |
3 | | any Tier 1 employee who has made an election under paragraph |
4 | | (2) of subsection (a) of this Section. The offer shall also |
5 | | provide that the Tier 1 employee's acceptance of the offered |
6 | | future increase in income shall constitute his or her agreement |
7 | | to the condition set forth in this subsection. |
8 | | For purposes of legislative intent, the condition set forth |
9 | | in this subsection shall be construed in a manner that ensures |
10 | | that the condition is not violated or circumvented through any |
11 | | contrivance of any kind. |
12 | | (f) A member's election under this Section is not a |
13 | | prohibited election under subdivision (j)(1) of Section 1-119 |
14 | | of this Code. |
15 | | (g) No provision of this Section shall be interpreted in a |
16 | | way that would cause the System to cease to be a qualified plan |
17 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
18 | | provisions of this Section shall be subject to and implemented |
19 | | in a manner that complies with Section 11 of Article IV of the |
20 | | Illinois Constitution. |
21 | | (h) If an election created by this amendatory Act in any |
22 | | other Article of this Code or any change deriving from that |
23 | | election is determined to be unconstitutional or otherwise |
24 | | invalid by a final unappealable decision of an Illinois court |
25 | | or a court of competent jurisdiction, the invalidity of that |
26 | | provision shall not in any way affect the validity of this |
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1 | | Section or the changes deriving from the election required |
2 | | under 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, |
5 | | which 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 |
8 | | who retires after June 30, 1967, and who has not
received an |
9 | | initial increase under this Section before the effective date
|
10 | | of this amendatory Act of 1991, shall, in January or July next |
11 | | following
the first anniversary of retirement, whichever |
12 | | occurs first, and in the same
month of each year thereafter, |
13 | | but in no event prior to age 60, have the amount
of the |
14 | | originally granted retirement annuity increased as follows: |
15 | | for each
year through 1971, 1 1/2%; for each year from 1972 |
16 | | through 1979, 2%; and for
1980 and each year thereafter, 3%. |
17 | | Annuitants who have received an initial
increase under this |
18 | | subsection prior to the effective date of this amendatory
Act |
19 | | of 1991 shall continue to receive their annual increases in the |
20 | | same month
as the initial increase.
|
21 | | (a-1) Notwithstanding any other provision of this Article, |
22 | | for a Tier 1 employee who made the election under paragraph (1) |
23 | | of 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 |
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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" |
18 | | means
the index published by the Bureau of Labor Statistics of |
19 | | the United States
Department of Labor that measures the average |
20 | | change in prices of goods and
services purchased by all urban |
21 | | consumers, United States city average, all
items, 1982-84 = |
22 | | 100. The new amount resulting from each annual adjustment
shall |
23 | | be determined by the Public Pension Division of the Department |
24 | | of Insurance and made available to the board of the retirement |
25 | | system by November 1 of each year. |
26 | | (b) Beginning January 1, 1990, for eligible participants |
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1 | | who remain
in service after attaining 20 years of creditable |
2 | | service, the 3% increases
provided under subsection (a) shall |
3 | | begin to accrue on the January 1 next
following the date upon |
4 | | which the participant (1) attains age 55, or (2)
attains 20 |
5 | | years of creditable service, whichever occurs later, and shall
|
6 | | continue to accrue while the participant remains in service; |
7 | | such increases
shall become payable on January 1 or July 1, |
8 | | whichever occurs first, next
following the first anniversary of |
9 | | retirement. For any person who has service
credit in the System |
10 | | for the entire period from January 15, 1969 through
December |
11 | | 31, 1992, regardless of the date of termination of service, the
|
12 | | reference to age 55 in clause (1) of this subsection (b) shall |
13 | | be deemed to
mean age 50.
|
14 | | This subsection (b) does not apply to any person who first |
15 | | becomes a
member of the System after August 8, 2003 ( the |
16 | | effective date of Public Act 93-494) this amendatory Act of
the |
17 | | 93rd General Assembly .
|
18 | | (b-5) Notwithstanding any other provision of this Article, |
19 | | a participant who first becomes a participant on or after |
20 | | January 1, 2011 (the effective date of Public Act 96-889) |
21 | | shall, in January or July next following the first anniversary |
22 | | of retirement, whichever occurs first, and in the same month of |
23 | | each year thereafter, but in no event prior to age 67, have the |
24 | | amount of the retirement annuity then being paid increased by |
25 | | 3% or the annual unadjusted percentage increase in the Consumer |
26 | | Price Index for All Urban Consumers as determined by the Public |
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1 | | Pension Division of the Department of Insurance under |
2 | | subsection (a) of Section 2-108.1, whichever is less. |
3 | | (c) The foregoing provisions relating to automatic |
4 | | increases are not
applicable to a participant who retires |
5 | | before having made contributions
(at the rate prescribed in |
6 | | Section 2-126) for automatic increases for less
than the |
7 | | equivalent of one full year. However, in order to be eligible |
8 | | for
the automatic increases, such a participant may make |
9 | | arrangements to pay
to the system the amount required to bring |
10 | | the total contributions for the
automatic increase to the |
11 | | equivalent of one year's contributions based upon
his or her |
12 | | last salary.
|
13 | | (d) A participant who terminated service prior to July 1, |
14 | | 1967, with at
least 14 years of service is entitled to an |
15 | | increase in retirement annuity
beginning January, 1976, and to |
16 | | additional increases in January of each
year thereafter.
|
17 | | The initial increase shall be 1 1/2% of the originally |
18 | | granted retirement
annuity multiplied by the number of full |
19 | | years that the annuitant was in
receipt of such annuity prior |
20 | | to January 1, 1972, plus 2% of the originally
granted |
21 | | retirement annuity for each year after that date. The |
22 | | subsequent
annual increases shall be at the rate of 2% of the |
23 | | originally granted
retirement annuity for each year through |
24 | | 1979 and at the rate of 3% for
1980 and thereafter.
|
25 | | (e) Beginning January 1, 1990, and except as provided in |
26 | | subsection (a-1), all automatic annual increases payable
under |
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1 | | this Section shall be calculated as a percentage of the total |
2 | | annuity
payable at the time of the increase, including previous |
3 | | increases 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, |
7 | | which has been
held unconstitutional)
|
8 | | Sec. 2-124. Contributions by State.
|
9 | | (a) The State shall make contributions to the System by
|
10 | | appropriations of amounts which, together with the |
11 | | contributions of
participants, interest earned on investments, |
12 | | and other income
will meet the cost of maintaining and |
13 | | administering the System on a 90%
funded basis in accordance |
14 | | with actuarial recommendations.
|
15 | | (b) The Board shall determine the amount of State
|
16 | | contributions required for each fiscal year on the basis of the
|
17 | | actuarial tables and other assumptions adopted by the Board and |
18 | | the
prescribed rate of interest, using the formula in |
19 | | subsection (c).
|
20 | | (c) For State fiscal years 2018 through 2045 (except as |
21 | | otherwise provided for fiscal year 2019), the minimum |
22 | | contribution to the System to be made by the State for each |
23 | | fiscal year shall be an amount determined by the System to be |
24 | | sufficient to bring the total assets of the System up to 90% of |
25 | | the total actuarial liabilities of the System by the end of |
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1 | | State fiscal year 2045. In making these determinations, the |
2 | | required State contribution shall be calculated each year as a |
3 | | level percentage of total payroll, including payroll that is |
4 | | not deemed pensionable, but excluding payroll attributable to |
5 | | participants in the defined contribution plan under Section |
6 | | 2-165.1, over the years remaining to and including fiscal year |
7 | | 2045 and shall be determined under the projected unit credit |
8 | | actuarial 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 |
24 | | decrease in State contribution over the prior fiscal year due |
25 | | exclusively to changes in actuarial or investment assumptions |
26 | | adopted by the Board shall be included in the State |
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1 | | contribution to the System, as a percentage of the applicable |
2 | | employee payroll, and shall be increased in equal annual |
3 | | increments so that by the State fiscal year occurring 5 years |
4 | | after the adoption of the actuarial or investment assumptions, |
5 | | the State is contributing at the rate otherwise required under |
6 | | this Section. |
7 | | If Section 2-110.3 is determined to be unconstitutional or |
8 | | otherwise invalid by a final unappealable decision of an |
9 | | Illinois court
or a court of competent jurisdiction, then the |
10 | | changes made to this Section by this amendatory Act of the |
11 | | 100th General Assembly shall not take effect and are repealed |
12 | | by operation of law. |
13 | | For State fiscal years 2012 through 2017 2045 , the minimum |
14 | | contribution
to the System to be made by the State for each |
15 | | fiscal year shall be an amount
determined by the System to be |
16 | | sufficient to bring the total assets of the
System up to 90% of |
17 | | the total actuarial liabilities of the System by the end of
|
18 | | State fiscal year 2045. In making these determinations, the |
19 | | required State
contribution shall be calculated each year as a |
20 | | level percentage of payroll
over the years remaining to and |
21 | | including fiscal year 2045 and shall be
determined under the |
22 | | projected unit credit actuarial cost method.
|
23 | | For State fiscal years 1996 through 2005, the State |
24 | | contribution to
the System, as a percentage of the applicable |
25 | | employee payroll, shall be
increased in equal annual increments |
26 | | so that by State fiscal year 2011, the
State is contributing at |
|
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1 | | the rate required under this Section.
|
2 | | Notwithstanding any other provision of this Article, the |
3 | | total required State
contribution for State fiscal year 2006 is |
4 | | $4,157,000.
|
5 | | Notwithstanding any other provision of this Article, the |
6 | | total 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 |
9 | | contribution to
the System, as a percentage of the applicable |
10 | | employee payroll, shall be
increased in equal annual increments |
11 | | from the required State contribution for State fiscal year |
12 | | 2007, so that by State fiscal year 2011, the
State is |
13 | | contributing at the rate otherwise required under this Section.
|
14 | | Notwithstanding any other provision of this Article, the |
15 | | total required State contribution for State fiscal year 2010 is |
16 | | $10,454,000 and shall be made from the proceeds of bonds sold |
17 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
18 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
19 | | expenses determined by the System's share of total bond |
20 | | proceeds, (ii) any amounts received from the General Revenue |
21 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
22 | | proceeds due to the issuance of discounted bonds, if |
23 | | applicable. |
24 | | Notwithstanding any other provision of this Article, the
|
25 | | total required State contribution for State fiscal year 2011 is
|
26 | | the amount recertified by the System on or before April 1, 2011 |
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1 | | pursuant to Section 2-134 and shall be made from the proceeds |
2 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
3 | | the General
Obligation Bond Act, less (i) the pro rata share of |
4 | | bond sale
expenses determined by the System's share of total |
5 | | bond
proceeds, (ii) any amounts received from the General |
6 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
7 | | bond
proceeds due to the issuance of discounted bonds, if
|
8 | | applicable. |
9 | | Beginning in State fiscal year 2046, the minimum State |
10 | | contribution for
each fiscal year shall be the amount needed to |
11 | | maintain the total assets of
the System at 90% of the total |
12 | | actuarial liabilities of the System.
|
13 | | Amounts received by the System pursuant to Section 25 of |
14 | | the Budget Stabilization Act or Section 8.12 of the State |
15 | | Finance Act in any fiscal year do not reduce and do not |
16 | | constitute payment of any portion of the minimum State |
17 | | contribution required under this Article in that fiscal year. |
18 | | Such amounts shall not reduce, and shall not be included in the |
19 | | calculation of, the required State contributions under this |
20 | | Article in any future year until the System has reached a |
21 | | funding ratio of at least 90%. A reference in this Article to |
22 | | the "required State contribution" or any substantially similar |
23 | | term does not include or apply to any amounts payable to the |
24 | | System under Section 25 of the Budget Stabilization Act.
|
25 | | Notwithstanding any other provision of this Section, the |
26 | | required State
contribution for State fiscal year 2005 and for |
|
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1 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
2 | | under this Section and
certified under Section 2-134, shall not |
3 | | exceed an amount equal to (i) the
amount of the required State |
4 | | contribution that would have been calculated under
this Section |
5 | | for that fiscal year if the System had not received any |
6 | | payments
under subsection (d) of Section 7.2 of the General |
7 | | Obligation Bond Act, minus
(ii) the portion of the State's |
8 | | total debt service payments for that fiscal
year on the bonds |
9 | | issued in fiscal year 2003 for the purposes of that Section |
10 | | 7.2, as determined
and certified by the Comptroller, that is |
11 | | the same as the System's portion of
the total moneys |
12 | | distributed under subsection (d) of Section 7.2 of the General
|
13 | | Obligation Bond Act. In determining this maximum for State |
14 | | fiscal years 2008 through 2010, however, the amount referred to |
15 | | in item (i) shall be increased, as a percentage of the |
16 | | applicable employee payroll, in equal increments calculated |
17 | | from the sum of the required State contribution for State |
18 | | fiscal year 2007 plus the applicable portion of the State's |
19 | | total debt service payments for fiscal year 2007 on the bonds |
20 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
21 | | the General
Obligation Bond Act, so that, by State fiscal year |
22 | | 2011, the
State is contributing at the rate otherwise required |
23 | | under this Section.
|
24 | | (d) For purposes of determining the required State |
25 | | contribution to the System, the value of the System's assets |
26 | | shall be equal to the actuarial value of the System's assets, |
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| | 10000SB0011sam002 | - 64 - | LRB100 06001 RPS 18499 a |
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1 | | which shall be calculated as follows: |
2 | | As of June 30, 2008, the actuarial value of the System's |
3 | | assets shall be equal to the market value of the assets as of |
4 | | that date. In determining the actuarial value of the System's |
5 | | assets for fiscal years after June 30, 2008, any actuarial |
6 | | gains or losses from investment return incurred in a fiscal |
7 | | year shall be recognized in equal annual amounts over the |
8 | | 5-year period following that fiscal year. |
9 | | (e) For purposes of determining the required State |
10 | | contribution to the system for a particular year, the actuarial |
11 | | value of assets shall be assumed to earn a rate of return equal |
12 | | to the system's actuarially assumed rate of return. |
13 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
14 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
15 | | 7-13-12.)
|
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, |
18 | | which has been
held unconstitutional)
|
19 | | Sec. 2-126. Contributions by participants.
|
20 | | (a) Each participant shall contribute toward the cost of |
21 | | his or her
retirement annuity a percentage of each payment of |
22 | | salary received by him or
her for service as a member as |
23 | | follows: for service between October 31, 1947
and January 1, |
24 | | 1959, 5%; for service between January 1, 1959 and June 30, |
25 | | 1969,
6%; for service between July 1, 1969 and January 10, |
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| | 10000SB0011sam002 | - 65 - | LRB100 06001 RPS 18499 a |
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1 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
2 | | service after December 31, 1981, 8 1/2%.
|
3 | | (b) Beginning August 2, 1949, each male participant, and |
4 | | from July 1,
1971, each female participant shall contribute |
5 | | towards the cost of the
survivor's annuity 2% of salary.
|
6 | | A participant who has no eligible survivor's annuity |
7 | | beneficiary may elect
to cease making contributions for |
8 | | survivor's annuity under this subsection.
A survivor's annuity |
9 | | shall not be payable upon the death of a person who has
made |
10 | | this election, unless prior to that death the election has been |
11 | | revoked
and the amount of the contributions that would have |
12 | | been paid under this
subsection in the absence of the election |
13 | | is paid to the System, together
with interest at the rate of 4% |
14 | | per year from the date the contributions
would have been made |
15 | | to the date of payment.
|
16 | | (c) Beginning July 1, 1967, each participant shall |
17 | | contribute 1% of
salary towards the cost of automatic increase |
18 | | in annuity provided in
Section 2-119.1. These contributions |
19 | | shall be made concurrently with
contributions for retirement |
20 | | annuity purposes.
|
21 | | (d) In addition, each participant serving as an officer of |
22 | | the General
Assembly shall contribute, for the same purposes |
23 | | and at the same rates
as are required of a regular participant, |
24 | | on each additional payment
received as an officer. If the |
25 | | participant serves as an
officer for at least 2 but less than 4 |
26 | | years, he or she shall
contribute an amount equal to the amount |
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| | 10000SB0011sam002 | - 66 - | LRB100 06001 RPS 18499 a |
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1 | | that would have been contributed
had the participant served as |
2 | | an officer for 4 years. Persons who serve
as officers in the |
3 | | 87th General Assembly but cannot receive the additional
payment |
4 | | to officers because of the ban on increases in salary during |
5 | | their
terms may nonetheless make contributions based on those |
6 | | additional payments
for the purpose of having the additional |
7 | | payments included in their highest
salary for annuity purposes; |
8 | | however, persons electing to make these
additional |
9 | | contributions must also pay an amount representing the
|
10 | | corresponding employer contributions, as calculated by the |
11 | | System.
|
12 | | (e) Notwithstanding any other provision of this Article, |
13 | | the required contribution of a participant who first becomes a |
14 | | participant on or after January 1, 2011 shall not exceed the |
15 | | contribution that would be due under this Article if that |
16 | | participant's highest salary for annuity purposes were |
17 | | $106,800, plus any increases in that amount under Section |
18 | | 2-108.1. |
19 | | (f) Beginning July 1, 2018 or the effective date of the |
20 | | Tier 1 employee's election under paragraph (1) of subsection |
21 | | (a) of Section 2-110.3, whichever is later, in lieu of the |
22 | | contributions otherwise required under this Section, each Tier |
23 | | 1 employee who made the election under paragraph (1) of |
24 | | subsection (a) of Section 2-110.3 shall contribute 8.5% of each |
25 | | payment of salary toward the cost of his or her retirement |
26 | | annuity and 1.85% of each payment of salary toward the cost of |
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1 | | the survivor's annuity. |
2 | | (g) Notwithstanding subsection (f) of this Section, |
3 | | beginning July 1, 2018 or the effective date of the Tier 1 |
4 | | employee's election under paragraph (1) of subsection (a) of |
5 | | Section 2-110.3, whichever is later, in lieu of the |
6 | | contributions otherwise required under this Section, each Tier |
7 | | 1 employee who made the election under paragraph (1) of |
8 | | subsection (a) of Section 2-110.3 and has elected to cease |
9 | | making contributions for survivor's annuity under subsection |
10 | | (b) of this Section, shall contribute 8.55% of each payment of |
11 | | salary 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, |
15 | | which has been
held unconstitutional)
|
16 | | Sec. 2-134. To certify required State contributions and |
17 | | submit vouchers.
|
18 | | (a) The Board shall certify to the Governor on or before |
19 | | December 15 of each
year until December 15, 2011 the amount of |
20 | | the required State contribution to the System for the next
|
21 | | fiscal year and shall specifically identify the System's |
22 | | projected State normal cost for that fiscal year. The |
23 | | certification shall include a copy of the actuarial
|
24 | | recommendations upon which it is based and shall specifically |
25 | | identify the System's projected State normal cost for that |
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1 | | fiscal year.
|
2 | | On or before November 1 of each year, beginning November 1, |
3 | | 2012, the Board shall submit to the State Actuary, the |
4 | | Governor, and the General Assembly a proposed certification of |
5 | | the amount of the required State contribution to the System for |
6 | | the next fiscal year, along with all of the actuarial |
7 | | assumptions, calculations, and data upon which that proposed |
8 | | certification is based. On or before January 1 of each year |
9 | | beginning January 1, 2013, the State Actuary shall issue a |
10 | | preliminary report concerning the proposed certification and |
11 | | identifying, if necessary, recommended changes in actuarial |
12 | | assumptions that the Board must consider before finalizing its |
13 | | certification of the required State contributions. On or before |
14 | | January 15, 2013 and every January 15 thereafter, the Board |
15 | | shall certify to the Governor and the General Assembly the |
16 | | amount of the required State contribution for the next fiscal |
17 | | year. The Board's certification must note any deviations from |
18 | | the State Actuary's recommended changes, the reason or reasons |
19 | | for not following the State Actuary's recommended changes, and |
20 | | the fiscal impact of not following the State Actuary's |
21 | | recommended changes on the required State contribution. |
22 | | On or before May 1, 2004, the Board shall recalculate and |
23 | | recertify to
the Governor the amount of the required State |
24 | | contribution to the System for
State fiscal year 2005, taking |
25 | | into account the amounts appropriated to and
received by the |
26 | | System under subsection (d) of Section 7.2 of the General
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1 | | Obligation Bond Act.
|
2 | | On or before July 1, 2005, the Board shall recalculate and |
3 | | recertify
to the Governor the amount of the required State
|
4 | | contribution to the System for State fiscal year 2006, taking |
5 | | into account the changes in required State contributions made |
6 | | by this amendatory Act of the 94th General Assembly.
|
7 | | On or before April 1, 2011, the Board shall recalculate and |
8 | | recertify to the Governor the amount of the required State |
9 | | contribution to the System for State fiscal year 2011, applying |
10 | | the changes made by Public Act 96-889 to the System's assets |
11 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
12 | | was approved on that date. |
13 | | As soon as practical after the effective date of this |
14 | | amendatory Act of the 100th General Assembly, the State Actuary |
15 | | and the Board shall recalculate and recertify to the Governor |
16 | | and the General Assembly the amount of the State contribution |
17 | | to the System for State fiscal year 2018, taking into account |
18 | | the changes in required State contributions made by this |
19 | | amendatory Act of the 100th General Assembly. |
20 | | On or before May 1, 2018, the Board shall recalculate and |
21 | | recertify
to the Governor and the General Assembly the amount |
22 | | of the required State
contribution to the System for State |
23 | | fiscal year 2019, taking into account the effect on the |
24 | | System's liabilities of the elections made under Section |
25 | | 2-110.3. |
26 | | On or before October 1, 2018, the Board shall recalculate |
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1 | | and recertify to the Governor and the General Assembly the |
2 | | amount of the required State contribution to the System for |
3 | | State fiscal year 2019, taking into account the reduction |
4 | | specified under item (3) of subsection (c) of Section 2-124. |
5 | | (b) Beginning in State fiscal year 1996, on or as soon as |
6 | | possible after the
15th day of each month the Board shall |
7 | | submit vouchers for payment of State
contributions to the |
8 | | System, in a total monthly amount of one-twelfth of the
|
9 | | required annual State contribution certified under subsection |
10 | | (a).
From the effective date of this amendatory Act
of the 93rd |
11 | | General Assembly through June 30, 2004, the Board shall not
|
12 | | submit vouchers for the remainder of fiscal year 2004 in excess |
13 | | of the
fiscal year 2004 certified contribution amount |
14 | | determined
under this Section after taking into consideration |
15 | | the transfer to the
System under subsection (d) of Section |
16 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
17 | | the State Comptroller and Treasurer by warrants drawn
on the |
18 | | funds appropriated to the System for that fiscal year. If in |
19 | | any month
the amount remaining unexpended from all other |
20 | | appropriations to the System for
the applicable fiscal year |
21 | | (including the appropriations to the System under
Section 8.12 |
22 | | of the State Finance Act and Section 1 of the State Pension |
23 | | Funds
Continuing Appropriation Act) is less than the amount |
24 | | lawfully vouchered under
this Section, the difference shall be |
25 | | paid from the General Revenue Fund under
the continuing |
26 | | appropriation authority provided in Section 1.1 of the State
|
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1 | | Pension Funds Continuing Appropriation Act.
|
2 | | (c) The full amount of any annual appropriation for the |
3 | | System for
State fiscal year 1995 shall be transferred and made |
4 | | available to the System
at the beginning of that fiscal year at |
5 | | the request of the Board.
Any excess funds remaining at the end |
6 | | of any fiscal year from appropriations
shall be retained by the |
7 | | System as a general reserve to meet the System's
accrued |
8 | | liabilities.
|
9 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
10 | | 97-694, eff. 6-18-12.)
|
11 | | (40 ILCS 5/2-162) |
12 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
13 | | which has been
held unconstitutional)
|
14 | | Sec. 2-162. Application and expiration of new benefit |
15 | | increases. |
16 | | (a) As used in this Section, "new benefit increase" means |
17 | | an increase in the amount of any benefit provided under this |
18 | | Article, or an expansion of the conditions of eligibility for |
19 | | any benefit under this Article, that results from an amendment |
20 | | to this Code that takes effect after the effective date of this |
21 | | amendatory Act of the 94th General Assembly. "New benefit |
22 | | increase", however, does not include any benefit increase |
23 | | resulting from the changes made to this Article by this |
24 | | amendatory Act of the 100th General Assembly. |
25 | | (b) Notwithstanding any other provision of this Code or any |
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1 | | subsequent amendment to this Code, every new benefit increase |
2 | | is subject to this Section and shall be deemed to be granted |
3 | | only in conformance with and contingent upon compliance with |
4 | | the provisions of this Section.
|
5 | | (c) The Public Act enacting a new benefit increase must |
6 | | identify and provide for payment to the System of additional |
7 | | funding at least sufficient to fund the resulting annual |
8 | | increase in cost to the System as it accrues. |
9 | | Every new benefit increase is contingent upon the General |
10 | | Assembly providing the additional funding required under this |
11 | | subsection. The Commission on Government Forecasting and |
12 | | Accountability shall analyze whether adequate additional |
13 | | funding has been provided for the new benefit increase and |
14 | | shall report its analysis to the Public Pension Division of the |
15 | | Department of Insurance Financial and Professional Regulation . |
16 | | A new benefit increase created by a Public Act that does not |
17 | | include the additional funding required under this subsection |
18 | | is null and void. If the Public Pension Division determines |
19 | | that the additional funding provided for a new benefit increase |
20 | | under this subsection is or has become inadequate, it may so |
21 | | certify to the Governor and the State Comptroller and, in the |
22 | | absence of corrective action by the General Assembly, the new |
23 | | benefit increase shall expire at the end of the fiscal year in |
24 | | which the certification is made.
|
25 | | (d) Every new benefit increase shall expire 5 years after |
26 | | its effective date or on such earlier date as may be specified |
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1 | | in the language enacting the new benefit increase or provided |
2 | | under subsection (c). This does not prevent the General |
3 | | Assembly from extending or re-creating a new benefit increase |
4 | | by law. |
5 | | (e) Except as otherwise provided in the language creating |
6 | | the new benefit increase, a new benefit increase that expires |
7 | | under this Section continues to apply to persons who applied |
8 | | and qualified for the affected benefit while the new benefit |
9 | | increase was in effect and to the affected beneficiaries and |
10 | | alternate payees of such persons, but does not apply to any |
11 | | other person, including without limitation a person who |
12 | | continues in service after the expiration date and did not |
13 | | apply and qualify for the affected benefit while the new |
14 | | benefit 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 |
19 | | a voluntary defined contribution plan for up to 5% of eligible |
20 | | active Tier 1 employees. The System shall determine the 5% cap |
21 | | by the number of active Tier 1 employees on the effective date |
22 | | of this Section. The defined contribution plan developed under |
23 | | this Section shall be a plan that aggregates employer and |
24 | | employee contributions in individual participant accounts |
25 | | which, after meeting any other requirements, are used for |
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1 | | payouts after retirement in accordance with this Section and |
2 | | any other applicable laws. |
3 | | As used in this Section, "defined benefit plan" means the |
4 | | retirement plan available under this Article to Tier 1 |
5 | | employees who have not made the election authorized under this |
6 | | Section. |
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. |
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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 |
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1 | | cost of offering these benefits and any applicable |
2 | | administrative fees. |
3 | | (b) Only persons who are active Tier 1 employees of the |
4 | | System on the effective date of this Section are eligible to |
5 | | participate in the defined contribution plan. Participation in |
6 | | the defined contribution plan shall be limited to the first 5% |
7 | | of eligible persons who elect to participate. The election to |
8 | | participate in the defined contribution plan is voluntary and |
9 | | irrevocable. |
10 | | (c) An eligible active Tier 1 employee may irrevocably |
11 | | elect to participate in the defined contribution plan by filing |
12 | | with the System a written application to participate that is |
13 | | received by the System prior to its determination that 5% of |
14 | | eligible persons have elected to participate in the defined |
15 | | contribution plan. |
16 | | When the System first determines that 5% of eligible |
17 | | persons have elected to participate in the defined contribution |
18 | | plan, the System shall provide notice to previously eligible |
19 | | employees that the plan is no longer available and shall cease |
20 | | accepting applications to participate. |
21 | | (d) The System shall make a good faith effort to contact |
22 | | each active Tier 1 employee who is eligible to participate in |
23 | | the defined contribution plan. The System shall mail |
24 | | information describing the option to join the defined |
25 | | contribution plan to each of these employees to his or her last |
26 | | known address on file with the System. If the employee is not |
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1 | | responsive to other means of contact, it is sufficient for the |
2 | | System to publish the details of the option on its website. |
3 | | Upon request for further information describing the |
4 | | option, the System shall provide employees with information |
5 | | from the System before exercising the option to join the plan, |
6 | | including information on the impact to their vested benefits or |
7 | | non-vested service. The individual consultation shall include |
8 | | projections of the participant's defined benefits at |
9 | | retirement or earlier termination of service and the value of |
10 | | the participant's account at retirement or earlier termination |
11 | | of service. The System shall not provide advice or counseling |
12 | | with respect to whether the employee should exercise the |
13 | | option. The System shall inform Tier 1 employees who are |
14 | | eligible to participate in the defined contribution plan that |
15 | | they may also wish to obtain information and counsel relating |
16 | | to their option from any other available source, including but |
17 | | not limited to labor organizations, private counsel, and |
18 | | financial advisors. |
19 | | (e) In no event shall the System, its staff, its authorized |
20 | | representatives, or the Board be liable for any information |
21 | | given to an employee under this Section. The System may |
22 | | coordinate with the Illinois Department of Central Management |
23 | | Services and other retirement systems administering a defined |
24 | | contribution plan in accordance with this amendatory Act of the |
25 | | 100th General Assembly to provide information concerning the |
26 | | impact of the option set forth in this Section. |
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1 | | (f) Notwithstanding any other provision of this Section, no |
2 | | person shall begin participating in the defined contribution |
3 | | plan until it has attained qualified plan status and received |
4 | | all necessary approvals from the U.S. Internal Revenue Service. |
5 | | (g) The System shall report on its progress under this |
6 | | Section, including the available details of the defined |
7 | | contribution plan and the System's plans for informing eligible |
8 | | Tier 1 employees about the plan, to the Governor and the |
9 | | General Assembly on or before January 15, 2018. |
10 | | (h) The Illinois State Board of Investments shall be the |
11 | | plan sponsor for the defined contribution plan established |
12 | | under this Section. |
13 | | (i) The intent of this amendatory Act of the 100th General |
14 | | Assembly is to ensure that the State's normal cost of |
15 | | participation in the defined contribution plan is similar, and |
16 | | if possible equal, to the State's normal cost of participation |
17 | | in the defined benefit plan, unless a lower State's normal cost |
18 | | is necessary to ensure cost neutrality. |
19 | | (j) If Section 2-110.3 is determined to be unconstitutional |
20 | | or otherwise invalid by a final unappealable decision of an |
21 | | Illinois court
or a court of competent jurisdiction, then this |
22 | | Section shall not take effect and is repealed by operation of |
23 | | law. |
24 | | (40 ILCS 5/2-166.1 new) |
25 | | Sec. 2-166.1. Defined contribution plan; termination. If |
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1 | | the defined contribution plan is terminated or becomes |
2 | | inoperative pursuant to law, then each participant in the plan |
3 | | shall automatically be deemed to have been a contributing Tier |
4 | | 1 employee in the System's defined benefit plan during the time |
5 | | in which he or she participated in the defined contribution |
6 | | plan, and for that purpose the System shall be entitled to |
7 | | recover the amounts in the participant's defined contribution |
8 | | accounts.
|
9 | | (40 ILCS 5/14-131)
|
10 | | Sec. 14-131. Contributions by State.
|
11 | | (a) The State shall make contributions to the System by |
12 | | appropriations of
amounts which, together with other employer |
13 | | contributions from trust, federal,
and other funds, employee |
14 | | contributions, investment income, and other income,
will be |
15 | | sufficient to meet the cost of maintaining and administering |
16 | | the System
on a 90% funded basis in accordance with actuarial |
17 | | recommendations.
|
18 | | For the purposes of this Section and Section 14-135.08, |
19 | | references to State
contributions refer only to employer |
20 | | contributions and do not include employee
contributions that |
21 | | are picked up or otherwise paid by the State or a
department on |
22 | | behalf of the employee.
|
23 | | (b) The Board shall determine the total amount of State |
24 | | contributions
required for each fiscal year on the basis of the |
25 | | actuarial tables and other
assumptions adopted by the Board, |
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1 | | using the formula in subsection (e).
|
2 | | The Board shall also determine a State contribution rate |
3 | | for each fiscal
year, expressed as a percentage of payroll, |
4 | | based on the total required State
contribution for that fiscal |
5 | | year (less the amount received by the System from
|
6 | | appropriations under Section 8.12 of the State Finance Act and |
7 | | Section 1 of the
State Pension Funds Continuing Appropriation |
8 | | Act, if any, for the fiscal year
ending on the June 30 |
9 | | immediately preceding the applicable November 15
certification |
10 | | deadline), the estimated payroll (including all forms of
|
11 | | compensation) for personal services rendered by eligible |
12 | | employees, and the
recommendations of the actuary.
|
13 | | For the purposes of this Section and Section 14.1 of the |
14 | | State Finance Act,
the term "eligible employees" includes |
15 | | employees who participate in the System,
persons who may elect |
16 | | to participate in the System but have not so elected,
persons |
17 | | who are serving a qualifying period that is required for |
18 | | participation,
and annuitants employed by a department as |
19 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
|
20 | | (c) Contributions shall be made by the several departments |
21 | | for each pay
period by warrants drawn by the State Comptroller |
22 | | against their respective
funds or appropriations based upon |
23 | | vouchers stating the amount to be so
contributed. These amounts |
24 | | shall be based on the full rate certified by the
Board under |
25 | | Section 14-135.08 for that fiscal year.
From the effective date |
26 | | of this amendatory Act of the 93rd General
Assembly through the |
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1 | | payment of the final payroll from fiscal year 2004
|
2 | | appropriations, the several departments shall not make |
3 | | contributions
for the remainder of fiscal year 2004 but shall |
4 | | instead make payments
as required under subsection (a-1) of |
5 | | Section 14.1 of the State Finance Act.
The several departments |
6 | | shall resume those contributions at the commencement of
fiscal |
7 | | year 2005.
|
8 | | (c-1) Notwithstanding subsection (c) of this Section, for |
9 | | fiscal years 2010, 2012, 2013, 2014, 2015, 2016, and 2017 only, |
10 | | contributions by the several departments are not required to be |
11 | | made for General Revenue Funds payrolls processed by the |
12 | | Comptroller. Payrolls paid by the several departments from all |
13 | | other State funds must continue to be processed pursuant to |
14 | | subsection (c) of this Section. |
15 | | (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015, |
16 | | 2016, and 2017 only, on or as soon as possible after the 15th |
17 | | day of each month, the Board shall submit vouchers for payment |
18 | | of State contributions to the System, in a total monthly amount |
19 | | of one-twelfth of the fiscal year General Revenue Fund |
20 | | contribution as certified by the System pursuant to Section |
21 | | 14-135.08 of the Illinois Pension Code. |
22 | | (d) If an employee is paid from trust funds or federal |
23 | | funds, the
department or other employer shall pay employer |
24 | | contributions from those funds
to the System at the certified |
25 | | rate, unless the terms of the trust or the
federal-State |
26 | | agreement preclude the use of the funds for that purpose, in
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1 | | which case the required employer contributions shall be paid by |
2 | | the State.
From the effective date of this amendatory
Act of |
3 | | the 93rd General Assembly through the payment of the final
|
4 | | payroll from fiscal year 2004 appropriations, the department or |
5 | | other
employer shall not pay contributions for the remainder of |
6 | | fiscal year
2004 but shall instead make payments as required |
7 | | under subsection (a-1) of
Section 14.1 of the State Finance |
8 | | Act. The department or other employer shall
resume payment of
|
9 | | contributions at the commencement of fiscal year 2005.
|
10 | | (e) For State fiscal years 2018 through 2045, the minimum |
11 | | contribution to the System to be made by the State for each |
12 | | fiscal year shall be an amount determined by the System to be |
13 | | sufficient to bring the total assets of the System up to 90% of |
14 | | the total actuarial liabilities of the System by the end of |
15 | | State fiscal year 2045. In making these determinations, the |
16 | | required State contribution shall be calculated each year as a |
17 | | level percentage of payroll, over the years remaining to and |
18 | | including fiscal year 2045 and shall be determined under the |
19 | | projected unit credit actuarial cost method. |
20 | | Beginning in State fiscal year 2018, any increase or |
21 | | decrease in State contribution over the prior fiscal year due |
22 | | exclusively to changes in actuarial or investment assumptions |
23 | | adopted by the Board shall be included in the State |
24 | | contribution to the System, as a percentage of the applicable |
25 | | employee payroll, and shall be increased in equal annual |
26 | | increments so that by the State fiscal year occurring 5 years |
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1 | | after the adoption of the actuarial or investment assumptions, |
2 | | the State is contributing at the rate otherwise required under |
3 | | this Section. |
4 | | For State fiscal years 2012 through 2017 2045 , the minimum |
5 | | contribution
to the System to be made by the State for each |
6 | | fiscal year shall be an amount
determined by the System to be |
7 | | sufficient to bring the total assets of the
System up to 90% of |
8 | | the total actuarial liabilities of the System by the end
of |
9 | | State fiscal year 2045. In making these determinations, the |
10 | | required State
contribution shall be calculated each year as a |
11 | | level percentage of payroll
over the years remaining to and |
12 | | including fiscal year 2045 and shall be
determined under the |
13 | | projected unit credit actuarial cost method.
|
14 | | For State fiscal years 1996 through 2005, the State |
15 | | contribution to
the System, as a percentage of the applicable |
16 | | employee payroll, shall be
increased in equal annual increments |
17 | | so that by State fiscal year 2011, the
State is contributing at |
18 | | the rate required under this Section; except that
(i) for State |
19 | | fiscal year 1998, for all purposes of this Code and any other
|
20 | | law of this State, the certified percentage of the applicable |
21 | | employee payroll
shall be 5.052% for employees earning eligible |
22 | | creditable service under Section
14-110 and 6.500% for all |
23 | | other employees, notwithstanding any contrary
certification |
24 | | made under Section 14-135.08 before the effective date of this
|
25 | | amendatory Act of 1997, and (ii)
in the following specified |
26 | | State fiscal years, the State contribution to
the System shall |
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1 | | not be less than the following indicated percentages of the
|
2 | | applicable employee payroll, even if the indicated percentage |
3 | | will produce a
State contribution in excess of the amount |
4 | | otherwise required under this
subsection and subsection (a):
|
5 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY |
6 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
|
7 | | Notwithstanding any other provision of this Article, the |
8 | | total required State
contribution to the System for State |
9 | | fiscal year 2006 is $203,783,900.
|
10 | | Notwithstanding any other provision of this Article, the |
11 | | total required State
contribution to the System for State |
12 | | fiscal year 2007 is $344,164,400.
|
13 | | For each of State fiscal years 2008 through 2009, the State |
14 | | contribution to
the System, as a percentage of the applicable |
15 | | employee payroll, shall be
increased in equal annual increments |
16 | | from the required State contribution for State fiscal year |
17 | | 2007, so that by State fiscal year 2011, the
State is |
18 | | contributing at the rate otherwise required under this Section.
|
19 | | Notwithstanding any other provision of this Article, the |
20 | | total required State General Revenue Fund contribution for |
21 | | State fiscal year 2010 is $723,703,100 and shall be made from |
22 | | the proceeds of bonds sold in fiscal year 2010 pursuant to |
23 | | Section 7.2 of the General Obligation Bond Act, less (i) the |
24 | | pro rata share of bond sale expenses determined by the System's |
25 | | share of total bond proceeds, (ii) any amounts received from |
26 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
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1 | | reduction in bond proceeds due to the issuance of discounted |
2 | | bonds, if applicable. |
3 | | Notwithstanding any other provision of this Article, the
|
4 | | total required State General Revenue Fund contribution for
|
5 | | State fiscal year 2011 is the amount recertified by the System |
6 | | on or before April 1, 2011 pursuant to Section 14-135.08 and |
7 | | shall be made from
the proceeds of bonds sold in fiscal year |
8 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond |
9 | | Act, less (i) the
pro rata share of bond sale expenses |
10 | | determined by the System's
share of total bond proceeds, (ii) |
11 | | any amounts received from
the General Revenue Fund in fiscal |
12 | | year 2011, and (iii) any
reduction in bond proceeds due to the |
13 | | issuance of discounted
bonds, if applicable. |
14 | | Beginning in State fiscal year 2046, the minimum State |
15 | | contribution for
each fiscal year shall be the amount needed to |
16 | | maintain the total assets of
the System at 90% of the total |
17 | | actuarial liabilities of the System.
|
18 | | Amounts received by the System pursuant to Section 25 of |
19 | | the Budget Stabilization Act or Section 8.12 of the State |
20 | | Finance Act in any fiscal year do not reduce and do not |
21 | | constitute payment of any portion of the minimum State |
22 | | contribution required under this Article in that fiscal year. |
23 | | Such amounts shall not reduce, and shall not be included in the |
24 | | calculation of, the required State contributions under this |
25 | | Article in any future year until the System has reached a |
26 | | funding ratio of at least 90%. A reference in this Article to |
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1 | | the "required State contribution" or any substantially similar |
2 | | term does not include or apply to any amounts payable to the |
3 | | System under Section 25 of the Budget Stabilization Act.
|
4 | | Notwithstanding any other provision of this Section, the |
5 | | required State
contribution for State fiscal year 2005 and for |
6 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
7 | | under this Section and
certified under Section 14-135.08, shall |
8 | | not exceed an amount equal to (i) the
amount of the required |
9 | | State contribution that would have been calculated under
this |
10 | | Section for that fiscal year if the System had not received any |
11 | | payments
under subsection (d) of Section 7.2 of the General |
12 | | Obligation Bond Act, minus
(ii) the portion of the State's |
13 | | total debt service payments for that fiscal
year on the bonds |
14 | | issued in fiscal year 2003 for the purposes of that Section |
15 | | 7.2, as determined
and certified by the Comptroller, that is |
16 | | the same as the System's portion of
the total moneys |
17 | | distributed under subsection (d) of Section 7.2 of the General
|
18 | | Obligation Bond Act. In determining this maximum for State |
19 | | fiscal years 2008 through 2010, however, the amount referred to |
20 | | in item (i) shall be increased, as a percentage of the |
21 | | applicable employee payroll, in equal increments calculated |
22 | | from the sum of the required State contribution for State |
23 | | fiscal year 2007 plus the applicable portion of the State's |
24 | | total debt service payments for fiscal year 2007 on the bonds |
25 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
26 | | the General
Obligation Bond Act, so that, by State fiscal year |
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1 | | 2011, the
State is contributing at the rate otherwise required |
2 | | under this Section.
|
3 | | (f) After the submission of all payments for eligible |
4 | | employees
from personal services line items in fiscal year 2004 |
5 | | have been made,
the Comptroller shall provide to the System a |
6 | | certification of the sum
of all fiscal year 2004 expenditures |
7 | | for personal services that would
have been covered by payments |
8 | | to the System under this Section if the
provisions of this |
9 | | amendatory Act of the 93rd General Assembly had not been
|
10 | | enacted. Upon
receipt of the certification, the System shall |
11 | | determine the amount
due to the System based on the full rate |
12 | | certified by the Board under
Section 14-135.08 for fiscal year |
13 | | 2004 in order to meet the State's
obligation under this |
14 | | Section. The System shall compare this amount
due to the amount |
15 | | received by the System in fiscal year 2004 through
payments |
16 | | under this Section and under Section 6z-61 of the State Finance |
17 | | Act.
If the amount
due is more than the amount received, the |
18 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
19 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall |
20 | | shall be satisfied under Section 1.2 of the State
Pension Funds |
21 | | Continuing Appropriation Act. If the amount due is less than |
22 | | the
amount received, the
difference shall be termed the "Fiscal |
23 | | Year 2004 Overpayment" for purposes of
this Section, and the |
24 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
25 | | the Pension Contribution Fund as soon as practicable
after the |
26 | | certification.
|
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1 | | (g) For purposes of determining the required State |
2 | | contribution to the System, the value of the System's assets |
3 | | shall be equal to the actuarial value of the System's assets, |
4 | | which shall be calculated as follows: |
5 | | As of June 30, 2008, the actuarial value of the System's |
6 | | assets shall be equal to the market value of the assets as of |
7 | | that date. In determining the actuarial value of the System's |
8 | | assets for fiscal years after June 30, 2008, any actuarial |
9 | | gains or losses from investment return incurred in a fiscal |
10 | | year shall be recognized in equal annual amounts over the |
11 | | 5-year period following that fiscal year. |
12 | | (h) For purposes of determining the required State |
13 | | contribution to the System for a particular year, the actuarial |
14 | | value of assets shall be assumed to earn a rate of return equal |
15 | | to the System's actuarially assumed rate of return. |
16 | | (i) After the submission of all payments for eligible |
17 | | employees from personal services line items paid from the |
18 | | General Revenue Fund in fiscal year 2010 have been made, the |
19 | | Comptroller shall provide to the System a certification of the |
20 | | sum of all fiscal year 2010 expenditures for personal services |
21 | | that would have been covered by payments to the System under |
22 | | this Section if the provisions of this amendatory Act of the |
23 | | 96th General Assembly had not been enacted. Upon receipt of the |
24 | | certification, the System shall determine the amount due to the |
25 | | System based on the full rate certified by the Board under |
26 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
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1 | | State's obligation under this Section. The System shall compare |
2 | | this amount due to the amount received by the System in fiscal |
3 | | year 2010 through payments under this Section. If the amount |
4 | | due is more than the amount received, the difference shall be |
5 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this |
6 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied |
7 | | under Section 1.2 of the State Pension Funds Continuing |
8 | | Appropriation Act. If the amount due is less than the amount |
9 | | received, the difference shall be termed the "Fiscal Year 2010 |
10 | | Overpayment" for purposes of this Section, and the Fiscal Year |
11 | | 2010 Overpayment shall be repaid by the System to the General |
12 | | Revenue Fund as soon as practicable after the certification. |
13 | | (j) After the submission of all payments for eligible |
14 | | employees from personal services line items paid from the |
15 | | General Revenue Fund in fiscal year 2011 have been made, the |
16 | | Comptroller shall provide to the System a certification of the |
17 | | sum of all fiscal year 2011 expenditures for personal services |
18 | | that would have been covered by payments to the System under |
19 | | this Section if the provisions of this amendatory Act of the |
20 | | 96th General Assembly had not been enacted. Upon receipt of the |
21 | | certification, the System shall determine the amount due to the |
22 | | System based on the full rate certified by the Board under |
23 | | Section 14-135.08 for fiscal year 2011 in order to meet the |
24 | | State's obligation under this Section. The System shall compare |
25 | | this amount due to the amount received by the System in fiscal |
26 | | year 2011 through payments under this Section. If the amount |
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1 | | due is more than the amount received, the difference shall be |
2 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this |
3 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied |
4 | | under Section 1.2 of the State Pension Funds Continuing |
5 | | Appropriation Act. If the amount due is less than the amount |
6 | | received, the difference shall be termed the "Fiscal Year 2011 |
7 | | Overpayment" for purposes of this Section, and the Fiscal Year |
8 | | 2011 Overpayment shall be repaid by the System to the General |
9 | | Revenue Fund as soon as practicable after the certification. |
10 | | (k) For fiscal years 2012 through 2017 only, after the |
11 | | submission of all payments for eligible employees from personal |
12 | | services line items paid from the General Revenue Fund in the |
13 | | fiscal year have been made, the Comptroller shall provide to |
14 | | the System a certification of the sum of all expenditures in |
15 | | the fiscal year for personal services. Upon receipt of the |
16 | | certification, the System shall determine the amount due to the |
17 | | System based on the full rate certified by the Board under |
18 | | Section 14-135.08 for the fiscal year in order to meet the |
19 | | State's obligation under this Section. The System shall compare |
20 | | this amount due to the amount received by the System for the |
21 | | fiscal year. If the amount due is more than the amount |
22 | | received, the difference shall be termed the "Prior Fiscal Year |
23 | | Shortfall" for purposes of this Section, and the Prior Fiscal |
24 | | Year Shortfall shall be satisfied under Section 1.2 of the |
25 | | State Pension Funds Continuing Appropriation Act. If the amount |
26 | | due is less than the amount received, the difference shall be |
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1 | | termed the "Prior Fiscal Year Overpayment" for purposes of this |
2 | | Section, and the Prior Fiscal Year Overpayment shall be repaid |
3 | | by the System to the General Revenue Fund as soon as |
4 | | practicable after the certification. |
5 | | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8, |
6 | | eff. 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, |
9 | | which 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 |
12 | | or before
November 15 of each year until November 15, 2011, the |
13 | | required rate for State contributions to the
System for the |
14 | | next State fiscal year, as determined under subsection (b) of
|
15 | | Section 14-131. The certification to the Governor under this |
16 | | subsection (a) shall include a copy of the
actuarial |
17 | | recommendations upon which the rate is based and shall |
18 | | specifically identify the System's projected State normal cost |
19 | | for that fiscal year.
|
20 | | (a-5) On or before November 1 of each year, beginning |
21 | | November 1, 2012, the Board shall submit to the State Actuary, |
22 | | the Governor, and the General Assembly a proposed certification |
23 | | of the amount of the required State contribution to the System |
24 | | for the next fiscal year, along with all of the actuarial |
25 | | assumptions, calculations, and data upon which that proposed |
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1 | | certification is based. On or before January 1 of each year |
2 | | beginning January 1, 2013, the State Actuary shall issue a |
3 | | preliminary report concerning the proposed certification and |
4 | | identifying, if necessary, recommended changes in actuarial |
5 | | assumptions that the Board must consider before finalizing its |
6 | | certification of the required State contributions. On or before |
7 | | January 15, 2013 and each January 15 thereafter, the Board |
8 | | shall certify to the Governor and the General Assembly the |
9 | | amount of the required State contribution for the next fiscal |
10 | | year. The Board's certification must note any deviations from |
11 | | the State Actuary's recommended changes, the reason or reasons |
12 | | for not following the State Actuary's recommended changes, and |
13 | | the fiscal impact of not following the State Actuary's |
14 | | recommended changes on the required State contribution. |
15 | | (b) The certifications under subsections (a) and (a-5) |
16 | | shall include an additional amount necessary to pay all |
17 | | principal of and interest on those general obligation bonds due |
18 | | the next fiscal year authorized by Section 7.2(a) of the |
19 | | General Obligation Bond Act and issued to provide the proceeds |
20 | | deposited by the State with the System in July 2003, |
21 | | representing deposits other than amounts reserved under |
22 | | Section 7.2(c) of the General Obligation Bond Act. For State |
23 | | fiscal year 2005, the Board shall make a supplemental |
24 | | certification of the additional amount necessary to pay all |
25 | | principal of and interest on those general obligation bonds due |
26 | | in State fiscal years 2004 and 2005 authorized by Section |
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1 | | 7.2(a) of the General Obligation Bond Act and issued to provide |
2 | | the proceeds deposited by the State with the System in July |
3 | | 2003, representing deposits other than amounts reserved under |
4 | | Section 7.2(c) of the General Obligation Bond Act, as soon as |
5 | | practical after the effective date of this amendatory Act of |
6 | | the 93rd General Assembly.
|
7 | | On or before May 1, 2004, the Board shall recalculate and |
8 | | recertify
to the Governor and to each department the amount of |
9 | | the required State
contribution to the System and the required |
10 | | rates for State contributions
to the System for State fiscal |
11 | | year 2005, taking into account the amounts
appropriated to and |
12 | | received by the System under subsection (d) of Section
7.2 of |
13 | | the General Obligation Bond Act.
|
14 | | On or before July 1, 2005, the Board shall recalculate and |
15 | | recertify
to the Governor and to each department the amount of |
16 | | the required State
contribution to the System and the required |
17 | | rates for State contributions
to the System for State fiscal |
18 | | year 2006, taking into account the changes in required State |
19 | | contributions made by this amendatory Act of the 94th General |
20 | | Assembly.
|
21 | | On or before April 1, 2011, the Board shall recalculate and |
22 | | recertify to the Governor and to each department the amount of |
23 | | the required State contribution to the System for State fiscal |
24 | | year 2011, applying the changes made by Public Act 96-889 to |
25 | | the System's assets and liabilities as of June 30, 2009 as |
26 | | though Public Act 96-889 was approved on that date. |
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1 | | As soon as practical after the effective date of this |
2 | | amendatory Act of the 100th General Assembly, the State Actuary |
3 | | and the Board shall recalculate and recertify to the Governor |
4 | | and the General Assembly the amount of the State contribution |
5 | | to the System for State fiscal year 2018, taking into account |
6 | | the changes in required State contributions made by this |
7 | | amendatory Act of the 100th General Assembly. |
8 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
9 | | 97-694, 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 |
23 | | Article 1 as it relates to those benefits, including any |
24 | | anticipated annual increases, that an eligible person is |
25 | | entitled to upon attainment of the applicable retirement age. |
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1 | | "Pension benefit" also includes applicable survivor's or |
2 | | disability benefits. |
3 | | (b) Before January 1, 2018, and annually thereafter, the |
4 | | System shall calculate, using actuarial tables and other |
5 | | assumptions adopted by the Board, the net present value of |
6 | | pension benefits for each eligible person and shall offer each |
7 | | eligible person the opportunity to irrevocably elect to receive |
8 | | an amount determined by the System to be equal to 70% of the |
9 | | net present value of his or her pension benefits in lieu of |
10 | | receiving any pension benefit. The offer shall specify the |
11 | | dollar amount that the eligible person will receive if he or |
12 | | she so elects and shall expire when a subsequent offer is made |
13 | | to an eligible person or when the System determines that 10% of |
14 | | eligible persons in that year have made the election under this |
15 | | subsection, whichever occurs first. The System shall make a |
16 | | good faith effort to contact every eligible person to notify |
17 | | him or her of the election and of the amount of the accelerated |
18 | | pension benefit payment. |
19 | | Until the System determines that 10% of eligible persons in |
20 | | that year have made the election under this subsection, an |
21 | | eligible person may irrevocably elect to receive an accelerated |
22 | | pension benefit payment in the amount that the System offers |
23 | | under this subsection in lieu of receiving any pension benefit. |
24 | | A person who elects to receive an accelerated pension benefit |
25 | | payment under this Section may not elect to proceed under the |
26 | | Retirement Systems Reciprocal Act with respect to service under |
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1 | | this Article. |
2 | | (c) A person's credits and creditable service under this |
3 | | Article shall be terminated upon the person's receipt of an |
4 | | accelerated pension benefit payment under this Section, and no |
5 | | other benefit shall be paid under this Article based on those |
6 | | terminated credits and creditable service, including any |
7 | | retirement, survivor, or other benefit; except that to the |
8 | | extent that participation, benefits, or premiums under the |
9 | | State Employees Group Insurance Act of 1971 are based on the |
10 | | amount of service credit, the terminated service credit shall |
11 | | be used for that purpose. |
12 | | (d) If a person who has received an accelerated pension |
13 | | benefit payment under this Section returns to active service |
14 | | under 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 |
24 | | benefit payment, an eligible person must have another |
25 | | retirement plan or account qualified under the Internal Revenue |
26 | | Code of 1986, as amended, for the accelerated pension benefit |
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1 | | payment to be rolled into. The accelerated pension benefit |
2 | | payment under this Section may be subject to withholding or |
3 | | payment of applicable taxes, but to the extent permitted by |
4 | | federal law, a person who receives an accelerated pension |
5 | | benefit payment under this Section must direct the System to |
6 | | pay all of that payment as a rollover into another retirement |
7 | | plan or account qualified under the Internal Revenue Code of |
8 | | 1986, as amended. |
9 | | (f) Before January 1, 2019 and every January 1 thereafter, |
10 | | the Board shall certify to the Illinois Finance Authority and |
11 | | the General Assembly the amount by which the total amount of |
12 | | accelerated pension benefit payments made under this Section |
13 | | exceed the amount appropriated to the System for the purpose of |
14 | | making those payments. |
15 | | (g) The Board shall adopt any rules necessary to implement |
16 | | this Section. |
17 | | (h) No provision of this Section shall be interpreted in a |
18 | | way that would cause the applicable System to cease to be a |
19 | | qualified plan under the Internal Revenue Code of 1986. |
20 | | (i) Notwithstanding any other provision of this Section, in |
21 | | no case shall the total amount of accelerated pension benefit |
22 | | payments paid under this Section, Section 15-185.5, and Section |
23 | | 16-190.5 cause the Illinois Finance Authority to issue more |
24 | | than the $250,000,000 of State Pension Obligation Acceleration |
25 | | Bonds authorized in subsection (c-5) of Section 801-40 of the |
26 | | Illinois Finance Authority Act. |
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1 | | (40 ILCS 5/14-152.1) |
2 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
3 | | which has been held unconstitutional)
|
4 | | Sec. 14-152.1. Application and expiration of new benefit |
5 | | increases. |
6 | | (a) As used in this Section, "new benefit increase" means |
7 | | an increase in the amount of any benefit provided under this |
8 | | Article, or an expansion of the conditions of eligibility for |
9 | | any benefit under this Article, that results from an amendment |
10 | | to this Code that takes effect after June 1, 2005 (the |
11 | | effective date of Public Act 94-4). "New benefit increase", |
12 | | however, does not include any benefit increase resulting from |
13 | | the changes made to this Article by Public Act 96-37 or by this |
14 | | amendatory Act of the 100th General Assembly this amendatory |
15 | | Act of the 96th General Assembly .
|
16 | | (b) Notwithstanding any other provision of this Code or any |
17 | | subsequent amendment to this Code, every new benefit increase |
18 | | is subject to this Section and shall be deemed to be granted |
19 | | only in conformance with and contingent upon compliance with |
20 | | the provisions of this Section.
|
21 | | (c) The Public Act enacting a new benefit increase must |
22 | | identify and provide for payment to the System of additional |
23 | | funding at least sufficient to fund the resulting annual |
24 | | increase in cost to the System as it accrues. |
25 | | Every new benefit increase is contingent upon the General |
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1 | | Assembly providing the additional funding required under this |
2 | | subsection. The Commission on Government Forecasting and |
3 | | Accountability shall analyze whether adequate additional |
4 | | funding has been provided for the new benefit increase and |
5 | | shall report its analysis to the Public Pension Division of the |
6 | | Department of Financial and Professional Regulation. A new |
7 | | benefit increase created by a Public Act that does not include |
8 | | the additional funding required under this subsection is null |
9 | | and void. If the Public Pension Division determines that the |
10 | | additional funding provided for a new benefit increase under |
11 | | this subsection is or has become inadequate, it may so certify |
12 | | to the Governor and the State Comptroller and, in the absence |
13 | | of corrective action by the General Assembly, the new benefit |
14 | | increase shall expire at the end of the fiscal year in which |
15 | | the certification is made.
|
16 | | (d) Every new benefit increase shall expire 5 years after |
17 | | its effective date or on such earlier date as may be specified |
18 | | in the language enacting the new benefit increase or provided |
19 | | under subsection (c). This does not prevent the General |
20 | | Assembly from extending or re-creating a new benefit increase |
21 | | by law. |
22 | | (e) Except as otherwise provided in the language creating |
23 | | the new benefit increase, a new benefit increase that expires |
24 | | under this Section continues to apply to persons who applied |
25 | | and qualified for the affected benefit while the new benefit |
26 | | increase was in effect and to the affected beneficiaries and |
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1 | | alternate payees of such persons, but does not apply to any |
2 | | other person, including without limitation a person who |
3 | | continues in service after the expiration date and did not |
4 | | apply and qualify for the affected benefit while the new |
5 | | benefit 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 |
10 | | retirement annuity under this Article, other than a participant |
11 | | in the self-managed plan under Section 15-158.2, who first |
12 | | became a participant or member before January 1, 2011 under any |
13 | | reciprocal retirement system or pension fund established under |
14 | | this Code, other than a retirement system or pension fund |
15 | | established under Articles 2, 3, 4, 5, 6, or 18 of this Code. |
16 | | "Tier 1 member" includes a person who first became a |
17 | | participant under this System before January 1, 2011 and who |
18 | | accepts a refund and is subsequently reemployed by an employer |
19 | | on or after January 1, 2011.
|
20 | | "Tier 1 employee": An employee under this Article, other |
21 | | than a participant in the self-managed plan under Section |
22 | | 15-158.2, who first became a member or participant before |
23 | | January 1, 2011 under any reciprocal retirement system or |
24 | | pension fund established under this Code other than a |
25 | | retirement system or pension fund established under Article 2, |
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1 | | 3, 4, 5, 6, or 18 of this Code. However, for the purposes of the |
2 | | election under Section 15-132.9, "Tier 1 employee" does not |
3 | | include a participant under this Article who would qualify as a |
4 | | Tier 1 employee but who has made an irrevocable election on or |
5 | | before June 1, 2017 to retire from service pursuant to the |
6 | | terms of a collective bargaining agreement in effect on June 1, |
7 | | 2017, excluding any extension, amendment, or renewal of that |
8 | | agreement on or after that date, and has notified the System of |
9 | | that 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 |
14 | | for personal services equal to the sum of
the basic |
15 | | compensation plus extra compensation for summer teaching,
|
16 | | overtime or other extra service. For periods for which an |
17 | | employee receives
service credit under subsection (c) of |
18 | | Section 15-113.1 or Section 15-113.2,
earnings are equal to the |
19 | | basic compensation on which contributions are
paid by the |
20 | | employee during such periods. Compensation for employment |
21 | | which is
irregular, intermittent and temporary shall not be |
22 | | considered earnings, unless
the participant is also receiving |
23 | | earnings from the employer as an employee
under Section 15-107.
|
24 | | With respect to transition pay paid by the University of |
25 | | Illinois to a
person who was a participating employee employed |
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1 | | in the fire department of
the University of Illinois's |
2 | | Champaign-Urbana campus immediately prior to
the elimination |
3 | | of 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 |
22 | | is offered for service by an employer to a Tier 1 employee |
23 | | under this Article pursuant to the condition set forth in |
24 | | subsection (c) of Section 15-132.9 and accepted under that |
25 | | condition by a Tier 1 employee who has made the election under |
26 | | paragraph (2) of subsection (a) of Section 15-132.9. |
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1 | | (a-10) Notwithstanding any other provision of this |
2 | | Section, "earnings" does not include any consideration payment |
3 | | made to a Tier 1 employee. |
4 | | (b) For a Tier 2 member, the annual earnings shall not |
5 | | exceed $106,800; however, that amount shall annually |
6 | | thereafter be increased by the lesser of (i) 3% of that amount, |
7 | | including all previous adjustments, or (ii) one half the annual |
8 | | unadjusted percentage increase (but not less than zero) in the |
9 | | consumer price index-u for the 12 months ending with the |
10 | | September preceding each November 1, including all previous |
11 | | adjustments. |
12 | | For the purposes of this Section, "consumer price index u" |
13 | | means the index published by the Bureau of Labor Statistics of |
14 | | the United States Department of Labor that measures the average |
15 | | change in prices of goods and services purchased by all urban |
16 | | consumers, United States city average, all items, 1982-84 = |
17 | | 100. The new amount resulting from each annual adjustment shall |
18 | | be determined by the Public Pension Division of the Department |
19 | | of Insurance and made available to the boards of the retirement |
20 | | systems and pension funds by November 1 of each year. |
21 | | (c) With each submission of payroll information in the |
22 | | manner prescribed by the System, the
employer shall certify |
23 | | that the payroll information is correct and complies with all |
24 | | applicable
State and federal laws. |
25 | | (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
|
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1 | | (40 ILCS 5/15-112.1 new) |
2 | | Sec. 15-112.1. Future increase in income. "Future increase |
3 | | in income" means an increase in income in any form offered by |
4 | | an employer to a Tier 1 employee for service under this Article |
5 | | after June 30, 2018 that qualifies as "earnings", as defined in |
6 | | Section 15-111, or would qualify as "earnings" but for the fact |
7 | | that it was offered to and accepted by a Tier 1 employee under |
8 | | the condition set forth in subsection (c) of Section 15-132.9. |
9 | | The term "future increase in income" does not include an |
10 | | increase in income in any form that is paid to a Tier 1 |
11 | | employee under an employment contract or a collective |
12 | | bargaining agreement that is in effect on the effective date of |
13 | | this Section, but does include an increase in income in any |
14 | | form pursuant to an extension, amendment, or renewal of any |
15 | | such employment contract or collective bargaining agreement on |
16 | | or 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 |
20 | | election 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 |
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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 |
6 | | made by each active Tier 1 employee no earlier than January 1, |
7 | | 2018 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 |
18 | | required election under this subsection within the time |
19 | | specified, then the employee shall be deemed to have made the |
20 | | election under paragraph (2) of this subsection. |
21 | | (a-5) If this Section is enjoined or stayed by an Illinois |
22 | | court or a court of competent jurisdiction pending the entry of |
23 | | a final and unappealable decision, and this Section is |
24 | | determined to be constitutional or otherwise valid by a final |
25 | | unappealable decision of an Illinois court or a court of |
26 | | competent jurisdiction, then the election procedure set forth |
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1 | | in subsection (a) of this Section shall commence on the 180th |
2 | | calendar day after the date of the issuance of the final |
3 | | unappealable decision and shall conclude at the end of the |
4 | | 270th calendar day after that date. |
5 | | (a-10) All elections under subsection (a) that are made or |
6 | | deemed to be made before July 1, 2018 shall take effect on July |
7 | | 1, 2018. Elections that are made or deemed to be made on or |
8 | | after July 1, 2018 shall take effect on the first day of the |
9 | | month following the month in which the election is made or |
10 | | deemed to be made. |
11 | | (b) As adequate and legal consideration provided under this |
12 | | amendatory Act of the 100th General Assembly for making an |
13 | | election under paragraph (1) of subsection (a) of this Section, |
14 | | the employer shall be expressly and irrevocably prohibited from |
15 | | offering any future increases in income to a Tier 1 employee |
16 | | who has made an election under paragraph (1) of subsection (a) |
17 | | of this Section on the condition of not constituting earnings |
18 | | under Section 15-111. |
19 | | As adequate and legal consideration provided under this |
20 | | amendatory Act of the 100th General Assembly for making an |
21 | | election under paragraph (1) of subsection (a) of this Section, |
22 | | each Tier 1 employee who has made an election under paragraph |
23 | | (1) of subsection (a) of this Section shall receive a |
24 | | consideration payment equal to 10% of the contributions made by |
25 | | or on behalf of the employee under Section 15-157 before the |
26 | | effective date of that election. The State Comptroller shall |
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1 | | pay the consideration payment to the Tier 1 employee out of |
2 | | funds appropriated for that purpose under Section 1.9 of the |
3 | | State Pension Funds Continuing Appropriation Act. The System |
4 | | shall calculate the amount of each consideration payment and |
5 | | shall certify to the State Comptroller the amount of the |
6 | | consideration payment, together with the name, address, and any |
7 | | other available payment information of the Tier 1 employee as |
8 | | found in the records of the System. |
9 | | (c) A Tier 1 employee who makes the election under |
10 | | paragraph (2) of subsection (a) of this Section shall not be |
11 | | subject to paragraph (1) of subsection (a) of this Section. |
12 | | However, each future increase in income offered by an employer |
13 | | under this Article to a Tier 1 employee who has made the |
14 | | election under paragraph (2) of subsection (a) of this Section |
15 | | shall be offered by the employer expressly and irrevocably on |
16 | | the condition of not constituting earnings under Section 15-111 |
17 | | and that the Tier 1 employee's acceptance of the offered future |
18 | | increase in income shall constitute his or her agreement to |
19 | | that condition. |
20 | | (d) The System shall make a good faith effort to contact |
21 | | each Tier 1 employee subject to this Section. The System shall |
22 | | mail information describing the required election to each Tier |
23 | | 1 employee by United States Postal Service mail to his or her |
24 | | last known address on file with the System. If the Tier 1 |
25 | | employee is not responsive to other means of contact, it is |
26 | | sufficient for the System to publish the details of any |
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1 | | required elections on its website or to publish those details |
2 | | in a regularly published newsletter or other existing public |
3 | | forum. |
4 | | Tier 1 employees who are subject to this Section shall be |
5 | | provided with an election packet containing information |
6 | | regarding their options, as well as the forms necessary to make |
7 | | the required election. Upon request, the System shall offer |
8 | | Tier 1 employees an opportunity to receive information from the |
9 | | System before making the required election. The information may |
10 | | consist of video materials, group presentations, individual |
11 | | consultation with a member or authorized representative of the |
12 | | System in person or by telephone or other electronic means, or |
13 | | any combination of those methods. The System shall not provide |
14 | | advice or counseling with respect to which election a Tier 1 |
15 | | employee should make or specific to the legal or tax |
16 | | circumstances of or consequences to the Tier 1 employee. |
17 | | The System shall inform Tier 1 employees in the election |
18 | | packet required under this subsection that the Tier 1 employee |
19 | | may also wish to obtain information and counsel relating to the |
20 | | election required under this Section from any other available |
21 | | source, including, but not limited to, labor organizations and |
22 | | private counsel. |
23 | | In no event shall the System, its staff, or the Board be |
24 | | held liable for any information given to a member regarding the |
25 | | elections under this Section. The System shall coordinate with |
26 | | the Illinois Department of Central Management Services and each |
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1 | | other retirement system administering an election in |
2 | | accordance with this amendatory Act of the 100th General |
3 | | Assembly to provide information concerning the impact of the |
4 | | election set forth in this Section. |
5 | | (e) Notwithstanding any other provision of law, an employer |
6 | | under this Article is required to offer each future increase in |
7 | | income expressly and irrevocably on the condition of not |
8 | | constituting "earnings" under Section 15-111 to any Tier 1 |
9 | | employee who has made an election under paragraph (2) of |
10 | | subsection (a) of this Section. The offer shall also provide |
11 | | that the Tier 1 employee's acceptance of the offered future |
12 | | increase in income shall constitute his or her agreement to the |
13 | | condition set forth in this subsection. |
14 | | For purposes of legislative intent, the condition set forth |
15 | | in this subsection shall be construed in a manner that ensures |
16 | | that the condition is not violated or circumvented through any |
17 | | contrivance of any kind. |
18 | | (f) A member's election under this Section is not a |
19 | | prohibited election under subdivision (j)(1) of Section 1-119 |
20 | | of this Code. |
21 | | (g) No provision of this Section shall be interpreted in a |
22 | | way that would cause the System to cease to be a qualified plan |
23 | | under Section 401(a) of the Internal Revenue Code of 1986. |
24 | | (h) If an election created by this amendatory Act in any |
25 | | other Article of this Code or any change deriving from that |
26 | | election is determined to be unconstitutional or otherwise |
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1 | | invalid by a final unappealable decision of an Illinois court |
2 | | or a court of competent jurisdiction, the invalidity of that |
3 | | provision shall not in any way affect the validity of this |
4 | | Section or the changes deriving from the election required |
5 | | under 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, |
8 | | which has been held unconstitutional)
|
9 | | Sec. 15-136. Retirement annuities - Amount. The provisions |
10 | | of this
Section 15-136 apply only to those participants who are |
11 | | participating in the
traditional benefit package or the |
12 | | portable benefit package and do not
apply to participants who |
13 | | are participating in the self-managed plan.
|
14 | | (a) The amount of a participant's retirement annuity, |
15 | | expressed in the form
of a single-life annuity, shall be |
16 | | determined by whichever of the following
rules is applicable |
17 | | and provides the largest annuity:
|
18 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
19 | | of earnings for
each of the first 10 years of service, 1.90% |
20 | | for each of the next 10 years of
service, 2.10% for each year |
21 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
22 | | each year in excess of 30; or for persons who retire on or
|
23 | | after January 1, 1998, 2.2% of the final rate of earnings for |
24 | | each year of
service.
|
25 | | Rule 2: The retirement annuity shall be the sum of the |
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1 | | following,
determined from amounts credited to the participant |
2 | | in accordance with the
actuarial tables and the effective rate |
3 | | of interest in effect at the
time the retirement annuity |
4 | | begins:
|
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 |
19 | | on or after
August 14, 1998, the accumulated normal |
20 | | contributions taken into account under
clauses (i) and (ii) of |
21 | | this Rule 2 shall include the additional normal
contributions |
22 | | made by the police officer or firefighter under Section
|
23 | | 15-157(a).
|
24 | | The amount of a retirement annuity calculated under this |
25 | | Rule 2 shall
be computed solely on the basis of the |
26 | | participant's accumulated normal
contributions, as specified |
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1 | | in this Rule and defined in Section 15-116.
Neither an employee |
2 | | or employer contribution for early retirement under
Section |
3 | | 15-136.2 nor any other employer contribution shall be used in |
4 | | the
calculation of the amount of a retirement annuity under |
5 | | this Rule 2.
|
6 | | This amendatory Act of the 91st General Assembly is a |
7 | | clarification of
existing law and applies to every participant |
8 | | and annuitant without regard to
whether status as an employee |
9 | | terminates before the effective date of this
amendatory Act.
|
10 | | This Rule 2 does not apply to a person who first becomes an |
11 | | employee under this Article on or after July 1, 2005.
|
12 | | Rule 3: The retirement annuity of a participant who is |
13 | | employed
at least one-half time during the period on which his |
14 | | or her final rate of
earnings is based, shall be equal to the |
15 | | participant's years of service
not to exceed 30, multiplied by |
16 | | (1) $96 if the participant's final rate
of earnings is less |
17 | | than $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 |
19 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if |
20 | | the 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 |
23 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if |
24 | | the 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
|
26 | | more, except that the annuity for those persons having made an |
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1 | | election under
Section 15-154(a-1) shall be calculated and |
2 | | payable under the portable
retirement benefit program pursuant |
3 | | to the provisions of Section 15-136.4.
|
4 | | Rule 4: A participant who is at least age 50 and has 25 or |
5 | | more years of
service as a police officer or firefighter, and a |
6 | | participant who is age 55 or
over and has at least 20 but less |
7 | | than 25 years of service as a police officer
or firefighter, |
8 | | shall be entitled to a retirement annuity of 2 1/4% of the
|
9 | | final rate of earnings for each of the first 10 years of |
10 | | service as a police
officer or firefighter, 2 1/2% for each of |
11 | | the next 10 years of service as a
police officer or |
12 | | firefighter, and 2 3/4% for each year of service as a police
|
13 | | officer or firefighter in excess of 20. The retirement annuity |
14 | | for all other
service shall be computed under Rule 1. A Tier 2 |
15 | | member is eligible for a retirement annuity calculated under |
16 | | Rule 4 only if that Tier 2 member meets the service |
17 | | requirements for that benefit calculation as prescribed under |
18 | | this Rule 4 in addition to the applicable age requirement under |
19 | | subsection (a-5) of Section 15-135.
|
20 | | For purposes of this Rule 4, a participant's service as a |
21 | | firefighter
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 |
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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 |
10 | | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each |
11 | | month the participant is under age 60 at the
time of |
12 | | retirement. However, this reduction shall not apply in the |
13 | | following
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.
|
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1 | | (b-5) The retirement annuity of a Tier 2 member who is |
2 | | retiring after attaining age 62 with at least 10 years of |
3 | | service credit shall be reduced by 1/2 of 1% for each full |
4 | | month that the member's age is under age 67. |
5 | | (c) The maximum retirement annuity provided under Rules 1, |
6 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of |
7 | | benefits as specified in
Section 415 of the Internal Revenue |
8 | | Code of 1986, as such Section may be
amended from time to time |
9 | | and as such benefit limits shall be adjusted by
the |
10 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
|
11 | | earnings.
|
12 | | (d) Subject to the provisions of subsection (d-1), a A Tier |
13 | | 1 member whose status as an employee terminates after August |
14 | | 14,
1969 shall receive automatic increases in his or her |
15 | | retirement annuity as
follows:
|
16 | | Effective January 1 immediately following the date the |
17 | | retirement annuity
begins, the annuitant shall receive an |
18 | | increase in his or her monthly
retirement annuity of 0.125% of |
19 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
20 | | Rule 3, or Rule 4 contained in this
Section, multiplied by
the |
21 | | number of full months which elapsed from the date the |
22 | | retirement annuity
payments began to January 1, 1972, plus |
23 | | 0.1667% of such annuity, multiplied by
the number of full |
24 | | months which elapsed from January 1, 1972, or the date the
|
25 | | retirement annuity payments began, whichever is later, to |
26 | | January 1, 1978, plus
0.25% of such annuity multiplied by the |
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1 | | number of full months which elapsed
from January 1, 1978, or |
2 | | the date the retirement annuity payments began,
whichever is |
3 | | later, to the effective date of the increase.
|
4 | | The annuitant shall receive an increase in his or her |
5 | | monthly retirement
annuity on each January 1 thereafter during |
6 | | the annuitant's life of 3% of
the monthly annuity provided |
7 | | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this |
8 | | Section. The change made under this subsection by P.A. 81-970 |
9 | | is
effective January 1, 1980 and applies to each annuitant |
10 | | whose status as
an employee terminates before or after that |
11 | | date.
|
12 | | Beginning January 1, 1990, and except as provided in |
13 | | subsection (d-1), all automatic annual increases payable under
|
14 | | this Section shall be calculated as a percentage of the total |
15 | | annuity
payable at the time of the increase, including all |
16 | | increases previously
granted under this Article.
|
17 | | The change made in this subsection by P.A. 85-1008 is |
18 | | effective January
26, 1988, and is applicable without regard to |
19 | | whether status as an employee
terminated before that date.
|
20 | | (d-1) Notwithstanding any other provision of this Article, |
21 | | for a Tier 1 employee who made the election under paragraph (1) |
22 | | of 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 |
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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" |
16 | | means
the index published by the Bureau of Labor Statistics of |
17 | | the United States
Department of Labor that measures the average |
18 | | change in prices of goods and
services purchased by all urban |
19 | | consumers, United States city average, all
items, 1982-84 = |
20 | | 100. The new amount resulting from each annual adjustment
shall |
21 | | be determined by the Public Pension Division of the Department |
22 | | of Insurance and made available to the board of the retirement |
23 | | system by November 1 of each year. |
24 | | (d-5) A retirement annuity of a Tier 2 member shall receive |
25 | | annual increases on the January 1 occurring either on or after |
26 | | the attainment of age 67 or the first anniversary of the |
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1 | | annuity start date, whichever is later. Each annual increase |
2 | | shall be calculated at 3% or one half the annual unadjusted |
3 | | percentage increase (but not less than zero) in the consumer |
4 | | price index-u for the 12 months ending with the September |
5 | | preceding each November 1, whichever is less, of the originally |
6 | | granted retirement annuity. If the annual unadjusted |
7 | | percentage change in the consumer price index-u for the 12 |
8 | | months ending with the September preceding each November 1 is |
9 | | zero or there is a decrease, then the annuity shall not be |
10 | | increased. |
11 | | (e) If, on January 1, 1987, or the date the retirement |
12 | | annuity payment
period begins, whichever is later, the sum of |
13 | | the retirement annuity
provided under Rule 1 or Rule 2 of this |
14 | | Section
and the automatic annual increases provided under the |
15 | | preceding subsection
or Section 15-136.1, amounts to less than |
16 | | the retirement
annuity which would be provided by Rule 3, the |
17 | | retirement
annuity shall be increased as of January 1, 1987, or |
18 | | the date the
retirement annuity payment period begins, |
19 | | whichever is later, to the amount
which would be provided by |
20 | | Rule 3 of this Section. Such increased
amount shall be |
21 | | considered as the retirement annuity in determining
benefits |
22 | | provided under other Sections of this Article. This paragraph
|
23 | | applies without regard to whether status as an employee |
24 | | terminated before the
effective date of this amendatory Act of |
25 | | 1987, provided that the annuitant was
employed at least |
26 | | one-half time during the period on which the final rate of
|
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1 | | earnings was based.
|
2 | | (f) A participant is entitled to such additional annuity as |
3 | | may be provided
on an actuarially equivalent basis, by any |
4 | | accumulated
additional contributions to his or her credit. |
5 | | However,
the additional contributions made by the participant |
6 | | toward the automatic
increases in annuity provided under this |
7 | | Section shall not be taken into
account in determining the |
8 | | amount of such additional annuity.
|
9 | | (g) If, (1) by law, a function of a governmental unit, as |
10 | | defined by Section
20-107 of this Code, is transferred in whole |
11 | | or in part to an employer, and (2)
a participant transfers |
12 | | employment from such governmental unit to such employer
within |
13 | | 6 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 |
15 | | 3 of this Section (B)
all proportional annuities payable to the |
16 | | participant by all other retirement
systems covered by Article |
17 | | 20, and (C) the initial primary insurance amount to
which the |
18 | | participant is entitled under the Social Security Act, is less |
19 | | than
the retirement annuity which would have been payable if |
20 | | all of the
participant's pension credits validated under |
21 | | Section 20-109 had been validated
under this system, a |
22 | | supplemental annuity equal to the difference in such
amounts |
23 | | shall be payable to the participant.
|
24 | | (h) On January 1, 1981, an annuitant who was receiving
a |
25 | | retirement annuity on or before January 1, 1971 shall have his |
26 | | or her
retirement annuity then being paid increased $1 per |
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1 | | month for
each year of creditable service. On January 1, 1982, |
2 | | an annuitant whose
retirement annuity began on or before |
3 | | January 1, 1977, shall have his or her
retirement annuity then |
4 | | being paid increased $1 per month for each year of
creditable |
5 | | service.
|
6 | | (i) On January 1, 1987, any annuitant whose retirement |
7 | | annuity began on or
before January 1, 1977, shall have the |
8 | | monthly retirement annuity increased by
an amount equal to 8¢ |
9 | | per year of creditable service times the number of years
that |
10 | | have elapsed since the annuity began.
|
11 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; |
12 | | 98-92, 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 |
16 | | appropriations of
amounts which, together with the other |
17 | | employer contributions from trust,
federal, and other funds, |
18 | | employee contributions, income from investments,
and other |
19 | | income of this System, will be sufficient to meet the cost of
|
20 | | maintaining and administering the System on a 90% funded basis |
21 | | in accordance
with actuarial recommendations.
|
22 | | The Board shall determine the amount of State contributions |
23 | | required for
each fiscal year on the basis of the actuarial |
24 | | tables and other assumptions
adopted by the Board and the |
25 | | recommendations of the actuary, using the formula
in subsection |
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1 | | (a-1).
|
2 | | (a-1) For State fiscal years 2018 through 2045 (except as |
3 | | otherwise provided for fiscal year 2019), the minimum |
4 | | contribution to the System to be made by the State for each |
5 | | fiscal year shall be an amount determined by the System to be |
6 | | sufficient to bring the total assets of the System up to 90% of |
7 | | the total actuarial liabilities of the System by the end of |
8 | | State fiscal year 2045. In making these determinations, the |
9 | | required State contribution shall be calculated each year as a |
10 | | level percentage of total payroll, including payroll that is |
11 | | not deemed pensionable, but excluding payroll attributable to |
12 | | participants in the defined contribution plan under Section |
13 | | 15-200.1, over the years remaining to and including fiscal year |
14 | | 2045 and shall be determined under the projected unit credit |
15 | | actuarial 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 |
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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
|
5 | | decrease in State contribution over the prior fiscal year due
|
6 | | exclusively to changes in actuarial or investment assumptions
|
7 | | adopted by the Board shall be included in the State
|
8 | | contribution to the System, as a percentage of the applicable
|
9 | | employee payroll, and shall be increased in equal annual
|
10 | | increments so that by the State fiscal year occurring 5 years
|
11 | | after the adoption of the actuarial or investment assumptions,
|
12 | | the State is contributing at the rate otherwise required under
|
13 | | this Section. |
14 | | For State fiscal years 2012 through 2017 2045 , the minimum |
15 | | contribution
to the System to be made by the State for each |
16 | | fiscal year shall be an amount
determined by the System to be |
17 | | sufficient to bring the total assets of the
System up to 90% of |
18 | | the total actuarial liabilities of the System by the end of
|
19 | | State fiscal year 2045. In making these determinations, the |
20 | | required State
contribution shall be calculated each year as a |
21 | | level percentage of payroll
over the years remaining to and |
22 | | including fiscal year 2045 and shall be
determined under the |
23 | | projected unit credit actuarial cost method.
|
24 | | For State fiscal years 1996 through 2005, the State |
25 | | contribution to
the System, as a percentage of the applicable |
26 | | employee payroll, shall be
increased in equal annual increments |
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1 | | so that by State fiscal year 2011, the
State is contributing at |
2 | | the rate required under this Section.
|
3 | | Notwithstanding any other provision of this Article, the |
4 | | total required State
contribution for State fiscal year 2006 is |
5 | | $166,641,900.
|
6 | | Notwithstanding any other provision of this Article, the |
7 | | total 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 |
10 | | contribution to
the System, as a percentage of the applicable |
11 | | employee payroll, shall be
increased in equal annual increments |
12 | | from the required State contribution for State fiscal year |
13 | | 2007, so that by State fiscal year 2011, the
State is |
14 | | contributing at the rate otherwise required under this Section.
|
15 | | Notwithstanding any other provision of this Article, the |
16 | | total required State contribution for State fiscal year 2010 is |
17 | | $702,514,000 and shall be made from the State Pensions Fund and |
18 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
19 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
20 | | share of bond sale expenses determined by the System's share of |
21 | | total bond proceeds, (ii) any amounts received from the General |
22 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
23 | | proceeds due to the issuance of discounted bonds, if |
24 | | applicable. |
25 | | Notwithstanding any other provision of this Article, the
|
26 | | total required State contribution for State fiscal year 2011 is
|
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1 | | the amount recertified by the System on or before April 1, 2011 |
2 | | pursuant to Section 15-165 and shall be made from the State |
3 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
4 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
5 | | less (i) the pro rata
share of bond sale expenses determined by |
6 | | the System's share of
total bond proceeds, (ii) any amounts |
7 | | received from the General
Revenue Fund in fiscal year 2011, and |
8 | | (iii) any reduction in bond
proceeds due to the issuance of |
9 | | discounted bonds, if
applicable. |
10 | | Beginning in State fiscal year 2046, the minimum State |
11 | | contribution for
each fiscal year shall be the amount needed to |
12 | | maintain the total assets of
the System at 90% of the total |
13 | | actuarial liabilities of the System.
|
14 | | Amounts received by the System pursuant to Section 25 of |
15 | | the Budget Stabilization Act or Section 8.12 of the State |
16 | | Finance Act in any fiscal year do not reduce and do not |
17 | | constitute payment of any portion of the minimum State |
18 | | contribution required under this Article in that fiscal year. |
19 | | Such amounts shall not reduce, and shall not be included in the |
20 | | calculation of, the required State contributions under this |
21 | | Article in any future year until the System has reached a |
22 | | funding ratio of at least 90%. A reference in this Article to |
23 | | the "required State contribution" or any substantially similar |
24 | | term does not include or apply to any amounts payable to the |
25 | | System under Section 25 of the Budget Stabilization Act. |
26 | | Notwithstanding any other provision of this Section, the |
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1 | | required State
contribution for State fiscal year 2005 and for |
2 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
3 | | under this Section and
certified under Section 15-165, shall |
4 | | not exceed an amount equal to (i) the
amount of the required |
5 | | State contribution that would have been calculated under
this |
6 | | Section for that fiscal year if the System had not received any |
7 | | payments
under subsection (d) of Section 7.2 of the General |
8 | | Obligation Bond Act, minus
(ii) the portion of the State's |
9 | | total debt service payments for that fiscal
year on the bonds |
10 | | issued in fiscal year 2003 for the purposes of that Section |
11 | | 7.2, as determined
and certified by the Comptroller, that is |
12 | | the same as the System's portion of
the total moneys |
13 | | distributed under subsection (d) of Section 7.2 of the General
|
14 | | Obligation Bond Act. In determining this maximum for State |
15 | | fiscal years 2008 through 2010, however, the amount referred to |
16 | | in item (i) shall be increased, as a percentage of the |
17 | | applicable employee payroll, in equal increments calculated |
18 | | from the sum of the required State contribution for State |
19 | | fiscal year 2007 plus the applicable portion of the State's |
20 | | total debt service payments for fiscal year 2007 on the bonds |
21 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
22 | | the General
Obligation Bond Act, so that, by State fiscal year |
23 | | 2011, the
State is contributing at the rate otherwise required |
24 | | under this Section.
|
25 | | (b) If an employee is paid from trust or federal funds, the |
26 | | employer
shall pay to the Board contributions from those funds |
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1 | | which are
sufficient to cover the accruing normal costs on |
2 | | behalf of the employee.
However, universities having employees |
3 | | who are compensated out of local
auxiliary funds, income funds, |
4 | | or service enterprise funds are not required
to pay such |
5 | | contributions on behalf of those employees. The local auxiliary
|
6 | | funds, income funds, and service enterprise funds of |
7 | | universities shall not be
considered trust funds for the |
8 | | purpose of this Article, but funds of alumni
associations, |
9 | | foundations, and athletic associations which are affiliated |
10 | | with
the universities included as employers under this Article |
11 | | and other employers
which do not receive State appropriations |
12 | | are considered to be trust funds for
the purpose of this |
13 | | Article.
|
14 | | (b-1) The City of Urbana and the City of Champaign shall |
15 | | each make
employer contributions to this System for their |
16 | | respective firefighter
employees who participate in this |
17 | | System pursuant to subsection (h) of Section
15-107. The rate |
18 | | of contributions to be made by those municipalities shall
be |
19 | | determined annually by the Board on the basis of the actuarial |
20 | | assumptions
adopted by the Board and the recommendations of the |
21 | | actuary, and shall be
expressed as a percentage of salary for |
22 | | each such employee. The Board shall
certify the rate to the |
23 | | affected municipalities as soon as may be practical.
The |
24 | | employer contributions required under this subsection shall be |
25 | | remitted by
the municipality to the System at the same time and |
26 | | in the same manner as
employee contributions.
|
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1 | | (c) Through State fiscal year 1995: The total employer |
2 | | contribution shall
be apportioned among the various funds of |
3 | | the State and other employers,
whether trust, federal, or other |
4 | | funds, in accordance with actuarial procedures
approved by the |
5 | | Board. State of Illinois contributions for employers receiving
|
6 | | State appropriations for personal services shall be payable |
7 | | from appropriations
made to the employers or to the System. The |
8 | | contributions for Class I
community colleges covering earnings |
9 | | other than those paid from trust and
federal funds, shall be |
10 | | payable solely from appropriations to the Illinois
Community |
11 | | College Board or the System for employer contributions.
|
12 | | (d) Beginning in State fiscal year 1996, the required State |
13 | | contributions
to the System shall be appropriated directly to |
14 | | the System and shall be payable
through vouchers issued in |
15 | | accordance with subsection (c) of Section 15-165, except as |
16 | | provided in subsection (g).
|
17 | | (e) The State Comptroller shall draw warrants payable to |
18 | | the System upon
proper certification by the System or by the |
19 | | employer in accordance with the
appropriation laws and this |
20 | | Code.
|
21 | | (f) Normal costs under this Section means liability for
|
22 | | pensions and other benefits which accrues to the System because |
23 | | of the
credits earned for service rendered by the participants |
24 | | during the
fiscal year and expenses of administering the |
25 | | System, but shall not
include the principal of or any |
26 | | redemption premium or interest on any bonds
issued by the Board |
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1 | | or any expenses incurred or deposits required in
connection |
2 | | therewith.
|
3 | | (g) For academic years beginning on or after June 1, 2005 |
4 | | and before July 1, 2018, if If the amount of a participant's |
5 | | earnings for any academic year used to determine the final rate |
6 | | of earnings, determined on a full-time equivalent basis, |
7 | | exceeds the amount of his or her earnings with the same |
8 | | employer for the previous academic year, determined on a |
9 | | full-time equivalent basis, by more than 6%, the participant's |
10 | | employer shall pay to the System, in addition to all other |
11 | | payments required under this Section and in accordance with |
12 | | guidelines established by the System, the present value of the |
13 | | increase in benefits resulting from the portion of the increase |
14 | | in earnings that is in excess of 6%. This present value shall |
15 | | be computed by the System on the basis of the actuarial |
16 | | assumptions and tables used in the most recent actuarial |
17 | | valuation of the System that is available at the time of the |
18 | | computation. The System may require the employer to provide any |
19 | | pertinent information or documentation. |
20 | | Whenever it determines that a payment is or may be required |
21 | | under this subsection (g), the System shall calculate the |
22 | | amount of the payment and bill the employer for that amount. |
23 | | The bill shall specify the calculations used to determine the |
24 | | amount due. If the employer disputes the amount of the bill, it |
25 | | may, within 30 days after receipt of the bill, apply to the |
26 | | System in writing for a recalculation. The application must |
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1 | | specify in detail the grounds of the dispute and, if the |
2 | | employer asserts that the calculation is subject to subsection |
3 | | (h) or (i) of this Section, must include an affidavit setting |
4 | | forth and attesting to all facts within the employer's |
5 | | knowledge that are pertinent to the applicability of subsection |
6 | | (h) or (i). Upon receiving a timely application for |
7 | | recalculation, the System shall review the application and, if |
8 | | appropriate, 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 |
11 | | receipt of the bill. If the employer contributions are not paid |
12 | | within 90 days after receipt of the bill, then interest will be |
13 | | charged at a rate equal to the System's annual actuarially |
14 | | assumed rate of return on investment compounded annually from |
15 | | the 91st day after receipt of the bill. Payments must be |
16 | | concluded within 3 years after the employer's receipt of the |
17 | | bill. |
18 | | When assessing payment for any amount due under this |
19 | | subsection (g), the System shall include earnings, to the |
20 | | extent not established by a participant under Section 15-113.11 |
21 | | or 15-113.12, that would have been paid to the participant had |
22 | | the participant not taken (i) periods of voluntary or |
23 | | involuntary furlough occurring on or after July 1, 2015 and on |
24 | | or before June 30, 2017 or (ii) periods of voluntary pay |
25 | | reduction in lieu of furlough occurring on or after July 1, |
26 | | 2015 and on or before June 30, 2017. Determining earnings that |
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1 | | would have been paid to a participant had the participant not |
2 | | taken periods of voluntary or involuntary furlough or periods |
3 | | of voluntary pay reduction shall be the responsibility of the |
4 | | employer, and shall be reported in a manner prescribed by the |
5 | | System. |
6 | | (g-1) For academic years beginning on or after July 1, |
7 | | 2018, if the amount of a participant's earnings for any |
8 | | academic year used to determine the final rate of earnings, |
9 | | determined on a full-time equivalent basis, exceeds the amount |
10 | | of his or her earnings with the same employer for the previous |
11 | | academic year, determined on a full-time equivalent basis, by |
12 | | more than the unadjusted percentage increase in the consumer |
13 | | price index-u for the calendar year ending on the December 31 |
14 | | immediately preceding the beginning of the academic year, then |
15 | | the participant's employer shall pay to the System, in addition |
16 | | to all other payments required under this Section and in |
17 | | accordance with guidelines established by the System, the |
18 | | present value of the increase in benefits resulting from the |
19 | | portion of the increase in earnings that is in excess of the |
20 | | unadjusted percentage increase in the consumer price index-u |
21 | | for the applicable calendar year. This present value shall be |
22 | | computed by the System on the basis of the actuarial |
23 | | assumptions and tables used in the most recent actuarial |
24 | | valuation of the System that is available at the time of the |
25 | | computation. The System may require the employer to provide any |
26 | | pertinent information or documentation. |
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1 | | Whenever it determines that a payment is or may be required |
2 | | under this subsection (g-1), the System shall calculate the |
3 | | amount of the payment and bill the employer for that amount. |
4 | | The bill shall specify the calculations used to determine the |
5 | | amount due. If the employer disputes the amount of the bill, it |
6 | | may, within 30 days after receipt of the bill, apply to the |
7 | | System in writing for a recalculation. The application must |
8 | | specify in detail the grounds of the dispute and, if the |
9 | | employer asserts that the calculation is subject to subsection |
10 | | (i-1) of this Section, must include an affidavit setting forth |
11 | | and attesting to all facts within the employer's knowledge that |
12 | | are pertinent to the applicability of subsection (i-1). Upon |
13 | | receiving a timely application for recalculation, the System |
14 | | shall review the application and, if appropriate, recalculate |
15 | | the 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 |
18 | | receipt of the bill. If the employer contributions are not paid |
19 | | within 90 days after receipt of the bill, then interest shall |
20 | | be charged at a rate equal to the System's annual actuarially |
21 | | assumed rate of return on investment compounded annually from |
22 | | the 91st day after receipt of the bill. Payments must be |
23 | | concluded within 3 years after the employer's receipt of the |
24 | | bill. |
25 | | For the purposes of this Section, "consumer price index-u" |
26 | | means the index published by the Bureau of Labor Statistics of |
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|
1 | | the United States Department of Labor that measures the average |
2 | | change in prices of goods and services purchased by all urban |
3 | | consumers, United States city average, all items, 1982-84 = |
4 | | 100. The new amount resulting from each annual adjustment shall |
5 | | be determined by the Public Pension Division of the Department |
6 | | of Insurance and made available to the boards of the retirement |
7 | | systems and pension funds by November 1 of each year. |
8 | | (h) This subsection (h) applies only to payments made or |
9 | | salary increases given on or after June 1, 2005 but before July |
10 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
11 | | require the System to refund any payments received before July |
12 | | 31, 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 |
15 | | participants under contracts or collective bargaining |
16 | | agreements entered into, amended, or renewed before June 1, |
17 | | 2005.
|
18 | | When assessing payment for any amount due under subsection |
19 | | (g), the System shall exclude earnings increases paid to a |
20 | | participant at a time when the participant is 10 or more years |
21 | | from 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 |
24 | | overload work, including a contract for summer teaching, or |
25 | | overtime when the employer has certified to the System, and the |
26 | | System has approved the certification, that: (i) in the case of |
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1 | | overloads (A) the overload work is for the sole purpose of |
2 | | academic instruction in excess of the standard number of |
3 | | instruction hours for a full-time employee occurring during the |
4 | | academic year that the overload is paid and (B) the earnings |
5 | | increases are equal to or less than the rate of pay for |
6 | | academic instruction computed using the participant's current |
7 | | salary rate and work schedule; and (ii) in the case of |
8 | | overtime, the overtime was necessary for the educational |
9 | | mission. |
10 | | When assessing payment for any amount due under subsection |
11 | | (g), the System shall exclude any earnings increase resulting |
12 | | from (i) a promotion for which the employee moves from one |
13 | | classification to a higher classification under the State |
14 | | Universities Civil Service System, (ii) a promotion in academic |
15 | | rank for a tenured or tenure-track faculty position, or (iii) a |
16 | | promotion that the Illinois Community College Board has |
17 | | recommended in accordance with subsection (k) of this Section. |
18 | | These earnings increases shall be excluded only if the |
19 | | promotion is to a position that has existed and been filled by |
20 | | a member for no less than one complete academic year and the |
21 | | earnings increase as a result of the promotion is an increase |
22 | | that results in an amount no greater than the average salary |
23 | | paid for other similar positions. |
24 | | (i) When assessing payment for any amount due under |
25 | | subsection (g), the System shall exclude any salary increase |
26 | | described in subsection (h) of this Section given on or after |
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1 | | July 1, 2011 but before July 1, 2014 under a contract or |
2 | | collective bargaining agreement entered into, amended, or |
3 | | renewed on or after June 1, 2005 but before July 1, 2011. |
4 | | Notwithstanding any other provision of this Section, any |
5 | | payments made or salary increases given after June 30, 2014 |
6 | | shall be used in assessing payment for any amount due under |
7 | | subsection (g) of this Section.
|
8 | | (i-1) When assessing payment for any amount due under |
9 | | subsection (g-1), the System shall exclude salary increases |
10 | | paid to participants under contracts or collective bargaining |
11 | | agreements entered into, amended, or renewed before the |
12 | | effective date of this amendatory Act of the 100th General |
13 | | Assembly. |
14 | | (j) The System shall prepare a report and file copies of |
15 | | the report with the Governor and the General Assembly by |
16 | | January 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 |
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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, |
4 | | 2018, if the amount of a participant's earnings for any |
5 | | academic year, determined on a full-time equivalent basis, |
6 | | exceeds the amount of the salary set for the Governor, the |
7 | | participant's employer shall pay to the System, in addition to |
8 | | all other payments required under this Section and in |
9 | | accordance with guidelines established by the System, the |
10 | | amount of the earnings that exceed the salary set for the |
11 | | Governor multiplied by the level percentage of payroll used in |
12 | | that fiscal year, as determined by the System, to be sufficient |
13 | | to bring the total assets of the System up to 90% of the total |
14 | | actuarial liabilities of the System by the end of State fiscal |
15 | | year 2045. This amount shall be computed by the System on the |
16 | | basis of the actuarial assumptions and tables used in the most |
17 | | recent actuarial valuation of the System that is available at |
18 | | the time of the computation. The System may require the |
19 | | employer to provide any pertinent information or |
20 | | documentation. |
21 | | Whenever it determines that a payment is or may be required |
22 | | under this subsection, the System shall calculate the amount of |
23 | | the payment and bill the employer for that amount. The bill |
24 | | shall specify the calculations used to determine the amount |
25 | | due. If the employer disputes the amount of the bill, it may, |
26 | | within 30 days after receipt of the bill, apply to the System |
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1 | | in writing for a recalculation. The application must specify in |
2 | | detail the grounds of the dispute. Upon receiving a timely |
3 | | application for recalculation, the System shall review the |
4 | | application and, if appropriate, recalculate the amount due. |
5 | | The employer contributions required under this subsection |
6 | | may be paid in the form of a lump sum within 90 days after |
7 | | receipt of the bill. If the employer contributions are not paid |
8 | | within 90 days after receipt of the bill, then interest will be |
9 | | charged at a rate equal to the System's annual actuarially |
10 | | assumed rate of return on investment compounded annually from |
11 | | the 91st day after receipt of the bill. Payments must be |
12 | | concluded within 3 years after the employer's receipt of the |
13 | | bill. |
14 | | (k) The Illinois Community College Board shall adopt rules |
15 | | for recommending lists of promotional positions submitted to |
16 | | the Board by community colleges and for reviewing the |
17 | | promotional lists on an annual basis. When recommending |
18 | | promotional lists, the Board shall consider the similarity of |
19 | | the positions submitted to those positions recognized for State |
20 | | universities by the State Universities Civil Service System. |
21 | | The Illinois Community College Board shall file a copy of its |
22 | | findings with the System. The System shall consider the |
23 | | findings of the Illinois Community College Board when making |
24 | | determinations under this Section. The System shall not exclude |
25 | | any earnings increases resulting from a promotion when the |
26 | | promotion was not submitted by a community college. Nothing in |
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1 | | this subsection (k) shall require any community college to |
2 | | submit any information to the Community College Board.
|
3 | | (l) For purposes of determining the required State |
4 | | contribution to the System, the value of the System's assets |
5 | | shall be equal to the actuarial value of the System's assets, |
6 | | which shall be calculated as follows: |
7 | | As of June 30, 2008, the actuarial value of the System's |
8 | | assets shall be equal to the market value of the assets as of |
9 | | that date. In determining the actuarial value of the System's |
10 | | assets for fiscal years after June 30, 2008, any actuarial |
11 | | gains or losses from investment return incurred in a fiscal |
12 | | year shall be recognized in equal annual amounts over the |
13 | | 5-year period following that fiscal year. |
14 | | (m) For purposes of determining the required State |
15 | | contribution to the system for a particular year, the actuarial |
16 | | value of assets shall be assumed to earn a rate of return equal |
17 | | to the system's actuarially assumed rate of return. |
18 | | (n) If Section 15-132.9 is determined to be |
19 | | unconstitutional or otherwise invalid by a final unappealable |
20 | | decision of an Illinois court or a court of competent |
21 | | jurisdiction, then the changes made to this Section by this |
22 | | amendatory Act of the 100th General Assembly shall not take |
23 | | effect and are repealed by operation of law. |
24 | | (Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; |
25 | | 99-897, eff. 1-1-17 .)
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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 |
4 | | towards the retirement
benefits payable under the retirement |
5 | | program applicable to the
employee from each payment
of |
6 | | earnings applicable to employment under this system on and |
7 | | after the
date of becoming a participant as follows: Prior to |
8 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
9 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
10 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
11 | | are to be considered as normal contributions for purposes
of |
12 | | this Article.
|
13 | | Each participant who is a police officer or firefighter |
14 | | shall make normal
contributions of 8% of each payment of |
15 | | earnings applicable to employment as a
police officer or |
16 | | firefighter under this system on or after September 1, 1981,
|
17 | | unless he or she files with the board within 60 days after the |
18 | | effective date
of this amendatory Act of 1991 or 60 days after |
19 | | the board receives notice that
he or she is employed as a |
20 | | police officer or firefighter, whichever is later,
a written |
21 | | notice waiving the retirement formula provided by Rule 4 of |
22 | | Section
15-136. This waiver shall be irrevocable. If a |
23 | | participant had met the
conditions set forth in Section |
24 | | 15-132.1 prior to the effective date of this
amendatory Act of |
25 | | 1991 but failed to make the additional normal contributions
|
26 | | required by this paragraph, he or she may elect to pay the |
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1 | | additional
contributions plus compound interest at the |
2 | | effective rate. If such payment
is received by the board, the |
3 | | service shall be considered as police officer
service in |
4 | | calculating the retirement annuity under Rule 4 of Section |
5 | | 15-136.
While performing service described in clause (i) or |
6 | | (ii) of Rule 4 of Section
15-136, a participating employee |
7 | | shall be deemed to be employed as a
firefighter for the purpose |
8 | | of determining the rate of employee contributions
under this |
9 | | Section.
|
10 | | (b) Starting September 1, 1969, each participating |
11 | | employee shall make
additional contributions of 1/2 of 1% of |
12 | | earnings to finance a portion
of the cost of the annual |
13 | | increases in retirement annuity provided under
Section 15-136, |
14 | | except that with respect to participants in the
self-managed |
15 | | plan this additional contribution shall be used to finance the
|
16 | | benefits obtained under that retirement program. Beginning |
17 | | July 1, 2018 or the effective date of the Tier 1 employee's |
18 | | election under paragraph (1) of subsection (a) of Section |
19 | | 15-132.9, whichever is later, each Tier 1 employee who made the |
20 | | election under paragraph (1) of subsection (a) of Section |
21 | | 15-132.9 is no longer required to make contributions under this |
22 | | subsection.
|
23 | | (c) Except as provided in subsection (c-5), in In addition |
24 | | to the amounts described in subsections (a) and (b) of this
|
25 | | Section, each participating employee shall make contributions |
26 | | of 1% of earnings
applicable under this system on and after |
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1 | | August 1, 1959. The contributions
made under this subsection |
2 | | (c) shall be considered as survivor's insurance
contributions |
3 | | for purposes of this Article if the employee is covered under
|
4 | | the traditional benefit package, and such contributions shall |
5 | | be considered
as additional contributions for purposes of this |
6 | | Article if the employee is
participating in the self-managed |
7 | | plan or has elected to participate in the
portable benefit |
8 | | package and has completed the applicable one-year waiting
|
9 | | period. Contributions in excess of $80 during any fiscal year |
10 | | beginning before
August 31, 1969 and in excess of $120 during |
11 | | any fiscal year thereafter until
September 1, 1971 shall be |
12 | | considered as additional contributions for purposes
of this |
13 | | Article.
|
14 | | (c-5) Beginning July 1, 2018 or the effective date of the |
15 | | Tier 1 employee's election under paragraph (1) of subsection |
16 | | (a) of Section 15-132.9, whichever is later, in lieu of the |
17 | | contributions otherwise required under subsection (c), each |
18 | | Tier 1 employee who made the election under paragraph (1) of |
19 | | subsection (a) of Section 15-132.9 shall make contributions of |
20 | | 0.7% of earnings applicable under this System and each Tier 1 |
21 | | employee who is a police officer or firefighter who makes |
22 | | normal contributions of 8% of each payment of earnings |
23 | | applicable to employment as a police officer or firefighter |
24 | | under this System and who made the election under paragraph (1) |
25 | | of subsection (a) of Section 15-132.9 shall make contributions |
26 | | of 0.55% of earnings applicable under this System. The |
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1 | | contributions made under this subsection (c-5) shall be |
2 | | considered as survivor's insurance contributions for purposes |
3 | | of this Article and such contributions shall be considered as |
4 | | additional contributions for purposes of this Article if the |
5 | | employee has elected to participate in the portable benefit |
6 | | package and has completed the applicable one-year waiting |
7 | | period. |
8 | | (d) If the board by board rule so permits and subject to |
9 | | such conditions
and limitations as may be specified in its |
10 | | rules, a participant may make
other additional contributions of |
11 | | such percentage of earnings or amounts as
the participant shall |
12 | | elect in a written notice thereof received by the board.
|
13 | | (e) That fraction of a participant's total accumulated |
14 | | normal
contributions, the numerator of which is equal to the |
15 | | number of years of
service in excess of that which is required |
16 | | to qualify for the maximum
retirement annuity, and the |
17 | | denominator of which is equal to the total
service of the |
18 | | participant, shall be considered as accumulated additional
|
19 | | contributions. The determination of the applicable maximum |
20 | | annuity and
the adjustment in contributions required by this |
21 | | provision shall be made
as of the date of the participant's |
22 | | retirement.
|
23 | | (f) Notwithstanding the foregoing, a participating |
24 | | employee shall not
be required to make contributions under this |
25 | | Section after the date upon
which continuance of such |
26 | | contributions would otherwise cause his or her
retirement |
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1 | | annuity to exceed the maximum retirement annuity as specified |
2 | | in
clause (1) of subsection (c) of Section 15-136.
|
3 | | (g) A participant may make contributions for the purchase |
4 | | of
service credit under this Article; however, only a |
5 | | participating employee may make optional contributions under |
6 | | subsection (b) of Section 15-157.1 of this Article.
|
7 | | (h) A Tier 2 member shall not make contributions on |
8 | | earnings that exceed the limitation as prescribed under |
9 | | subsection (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, |
13 | | which 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 |
16 | | November 15 of each
year until November 15, 2011 the |
17 | | appropriation required from State funds for the purposes of |
18 | | this
System for the following fiscal year. The certification |
19 | | under this subsection (a) shall include a copy
of the actuarial |
20 | | recommendations upon which it is based and shall specifically |
21 | | identify the System's projected State normal cost for that |
22 | | fiscal year and the projected State cost for the self-managed |
23 | | plan for that fiscal year.
|
24 | | On or before May 1, 2004, the Board shall recalculate and |
25 | | recertify to
the Governor the amount of the required State |
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1 | | contribution to the System for
State fiscal year 2005, taking |
2 | | into account the amounts appropriated to and
received by the |
3 | | System under subsection (d) of Section 7.2 of the General
|
4 | | Obligation Bond Act.
|
5 | | On or before July 1, 2005, the Board shall recalculate and |
6 | | recertify
to the Governor the amount of the required State
|
7 | | contribution to the System for State fiscal year 2006, taking |
8 | | into account the changes in required State contributions made |
9 | | by this amendatory Act of the 94th General Assembly.
|
10 | | On or before April 1, 2011, the Board shall recalculate and |
11 | | recertify to the Governor the amount of the required State |
12 | | contribution to the System for State fiscal year 2011, applying |
13 | | the changes made by Public Act 96-889 to the System's assets |
14 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
15 | | was approved on that date. |
16 | | (a-5) On or before November 1 of each year, beginning |
17 | | November 1, 2012, the Board shall submit to the State Actuary, |
18 | | the Governor, and the General Assembly a proposed certification |
19 | | of the amount of the required State contribution to the System |
20 | | for the next fiscal year, along with all of the actuarial |
21 | | assumptions, calculations, and data upon which that proposed |
22 | | certification is based. On or before January 1 of each year, |
23 | | beginning January 1, 2013, the State Actuary shall issue a |
24 | | preliminary report concerning the proposed certification and |
25 | | identifying, if necessary, recommended changes in actuarial |
26 | | assumptions that the Board must consider before finalizing its |
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1 | | certification of the required State contributions. On or before |
2 | | January 15, 2013 and each January 15 thereafter, the Board |
3 | | shall certify to the Governor and the General Assembly the |
4 | | amount of the required State contribution for the next fiscal |
5 | | year. The Board's certification must note, in a written |
6 | | response to the State Actuary, any deviations from the State |
7 | | Actuary's recommended changes, the reason or reasons for not |
8 | | following the State Actuary's recommended changes, and the |
9 | | fiscal impact of not following the State Actuary's recommended |
10 | | changes on the required State contribution. |
11 | | (a-10) As soon as practical after the effective date of |
12 | | this amendatory Act of the 100th General Assembly, the State |
13 | | Actuary and the Board shall recalculate and recertify to the |
14 | | Governor and the General Assembly the amount of the State |
15 | | contribution to the System for State fiscal year 2018, taking |
16 | | into account the changes in required State contributions made |
17 | | by this amendatory Act of the 100th General Assembly. |
18 | | (a-15) On or before May 1, 2018, the Board shall |
19 | | recalculate and recertify
to the Governor and the General |
20 | | Assembly the amount of the required State
contribution to the |
21 | | System for State fiscal year 2019, taking into account the |
22 | | effect on the System's liabilities of the elections made under |
23 | | Section 15-132.9. |
24 | | On or before October 1, 2018, the Board shall recalculate |
25 | | and recertify to the Governor and the General Assembly the |
26 | | amount of the required State contribution to the System for |
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1 | | State fiscal year 2019, taking into account the reduction |
2 | | specified under item (3) of subsection (a-1) of Section 15-155. |
3 | | (b) The Board shall certify to the State Comptroller or |
4 | | employer, as the
case may be, from time to time, by its |
5 | | chairperson and secretary, with its seal
attached, the amounts |
6 | | payable to the System from the various funds.
|
7 | | (c) Beginning in State fiscal year 1996, on or as soon as |
8 | | possible after the
15th day of each month the Board shall |
9 | | submit vouchers for payment of State
contributions to the |
10 | | System, in a total monthly amount of one-twelfth of the
|
11 | | required annual State contribution certified under subsection |
12 | | (a).
From the effective date of this amendatory Act
of the 93rd |
13 | | General Assembly through June 30, 2004, the Board shall not
|
14 | | submit vouchers for the remainder of fiscal year 2004 in excess |
15 | | of the
fiscal year 2004 certified contribution amount |
16 | | determined
under this Section after taking into consideration |
17 | | the transfer to the
System under subsection (b) of Section |
18 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
19 | | the State Comptroller and Treasurer by warrants drawn
on the |
20 | | funds appropriated to the System for that fiscal year.
|
21 | | If in any month the amount remaining unexpended from all |
22 | | other
appropriations to the System for the applicable fiscal |
23 | | year (including the
appropriations to the System under Section |
24 | | 8.12 of the State Finance Act and
Section 1 of the State |
25 | | Pension Funds Continuing Appropriation Act) is less than
the |
26 | | amount lawfully vouchered under this Section, the difference |
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1 | | shall be paid
from the General Revenue Fund under the |
2 | | continuing appropriation authority
provided in Section 1.1 of |
3 | | the State Pension Funds Continuing Appropriation
Act.
|
4 | | (d) So long as the payments received are the full amount |
5 | | lawfully
vouchered under this Section, payments received by the |
6 | | System under this
Section shall be applied first toward the |
7 | | employer contribution to the
self-managed plan established |
8 | | under Section 15-158.2. Payments shall be
applied second toward |
9 | | the employer's portion of the normal costs of the System,
as |
10 | | defined in subsection (f) of Section 15-155. The balance shall |
11 | | be applied
toward the unfunded actuarial liabilities of the |
12 | | System.
|
13 | | (e) In the event that the System does not receive, as a |
14 | | result of
legislative enactment or otherwise, payments |
15 | | sufficient to
fully fund the employer contribution to the |
16 | | self-managed plan
established under Section 15-158.2 and to |
17 | | fully fund that portion of the
employer's portion of the normal |
18 | | costs of the System, as calculated in
accordance with Section |
19 | | 15-155(a-1), then any payments received shall be
applied |
20 | | proportionately to the optional retirement program established |
21 | | under
Section 15-158.2 and to the employer's portion of the |
22 | | normal costs of the
System, as calculated in accordance with |
23 | | Section 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) |
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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 |
15 | | Article 1 as it relates to those benefits, including any |
16 | | anticipated annual increases, that an eligible person is |
17 | | entitled to upon attainment of the applicable retirement age. |
18 | | "Pension benefit" also includes applicable survivor's or |
19 | | disability benefits. |
20 | | (b) Before January 1, 2018, and annually thereafter, the |
21 | | System shall calculate, using actuarial tables and other |
22 | | assumptions adopted by the Board, the net present value of |
23 | | pension benefits for each eligible person and shall offer each |
24 | | eligible person the opportunity to irrevocably elect to receive |
25 | | an amount determined by the System to be equal to 70% of the |
26 | | net present value of his or her pension benefits in lieu of |
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1 | | receiving any pension benefit. The offer shall specify the |
2 | | dollar amount that the eligible person will receive if he or |
3 | | she so elects and shall expire when a subsequent offer is made |
4 | | to an eligible person or when the System determines that 10% of |
5 | | eligible persons in that year have made the election under this |
6 | | subsection, whichever occurs first. The System shall make a |
7 | | good faith effort to contact every eligible person to notify |
8 | | him or her of the election and of the amount of the accelerated |
9 | | pension benefit payment. |
10 | | Until the System determines that 10% of eligible persons in |
11 | | that year have made the election under this subsection, an |
12 | | eligible person may irrevocably elect to receive an accelerated |
13 | | pension benefit payment in the amount that the System offers |
14 | | under this subsection in lieu of receiving any pension benefit. |
15 | | A person who elects to receive an accelerated pension benefit |
16 | | payment under this Section may not elect to proceed under the |
17 | | Retirement Systems Reciprocal Act with respect to service under |
18 | | this Article. |
19 | | (c) A person's credits and creditable service under this |
20 | | Article shall be terminated upon the person's receipt of an |
21 | | accelerated pension benefit payment under this Section, and no |
22 | | other benefit shall be paid under this Article based on those |
23 | | terminated credits and creditable service, including any |
24 | | retirement, survivor, or other benefit; except that to the |
25 | | extent that participation, benefits, or premiums under the |
26 | | State Employees Group Insurance Act of 1971 are based on the |
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1 | | amount of service credit, the terminated service credit shall |
2 | | be used for that purpose. |
3 | | (d) If a person who has received an accelerated pension |
4 | | benefit payment under this Section returns to active service |
5 | | under 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 |
15 | | benefit payment, an eligible person must have another |
16 | | retirement plan or account qualified under the Internal Revenue |
17 | | Code of 1986, as amended, for the accelerated pension benefit |
18 | | payment to be rolled into. The accelerated pension benefit |
19 | | payment under this Section may be subject to withholding or |
20 | | payment of applicable taxes, but to the extent permitted by |
21 | | federal law, a person who receives an accelerated pension |
22 | | benefit payment under this Section must direct the System to |
23 | | pay all of that payment as a rollover into another retirement |
24 | | plan or account qualified under the Internal Revenue Code of |
25 | | 1986, as amended. |
26 | | (f) Before January 1, 2019 and every January 1 thereafter, |
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1 | | the Board shall certify to the Illinois Finance Authority and |
2 | | the General Assembly the amount by which the total amount of |
3 | | accelerated pension benefit payments made under this Section |
4 | | exceed the amount appropriated to the System for the purpose of |
5 | | making those payments. |
6 | | (g) The Board shall adopt any rules necessary to implement |
7 | | this Section. |
8 | | (h) No provision of this Section shall be interpreted in a |
9 | | way that would cause the applicable System to cease to be a |
10 | | qualified plan under the Internal Revenue Code of 1986. |
11 | | (i) Notwithstanding any other provision of this Section, in |
12 | | no case shall the total amount of accelerated pension benefit |
13 | | payments paid under this Section, Section 14-147.5, and Section |
14 | | 16-190.5 cause the Illinois Finance Authority to issue more |
15 | | than the $250,000,000 of State Pension Obligation Acceleration |
16 | | Bonds authorized in subsection (c-5) of Section 801-40 of the |
17 | | Illinois Finance Authority Act. |
18 | | (40 ILCS 5/15-198) |
19 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
20 | | which has been held unconstitutional)
|
21 | | Sec. 15-198. Application and expiration of new benefit |
22 | | increases. |
23 | | (a) As used in this Section, "new benefit increase" means |
24 | | an increase in the amount of any benefit provided under this |
25 | | Article, or an expansion of the conditions of eligibility for |
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1 | | any benefit under this Article, that results from an amendment |
2 | | to this Code that takes effect after the effective date of this |
3 | | amendatory Act of the 94th General Assembly. "New benefit |
4 | | increase", however, does not include any benefit increase |
5 | | resulting from the changes made to this Article by this |
6 | | amendatory Act of the 100th General Assembly. |
7 | | (b) Notwithstanding any other provision of this Code or any |
8 | | subsequent amendment to this Code, every new benefit increase |
9 | | is subject to this Section and shall be deemed to be granted |
10 | | only in conformance with and contingent upon compliance with |
11 | | the provisions of this Section.
|
12 | | (c) The Public Act enacting a new benefit increase must |
13 | | identify and provide for payment to the System of additional |
14 | | funding at least sufficient to fund the resulting annual |
15 | | increase in cost to the System as it accrues. |
16 | | Every new benefit increase is contingent upon the General |
17 | | Assembly providing the additional funding required under this |
18 | | subsection. The Commission on Government Forecasting and |
19 | | Accountability shall analyze whether adequate additional |
20 | | funding has been provided for the new benefit increase and |
21 | | shall report its analysis to the Public Pension Division of the |
22 | | Department of Insurance Financial and Professional Regulation . |
23 | | A new benefit increase created by a Public Act that does not |
24 | | include the additional funding required under this subsection |
25 | | is null and void. If the Public Pension Division determines |
26 | | that the additional funding provided for a new benefit increase |
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1 | | under this subsection is or has become inadequate, it may so |
2 | | certify to the Governor and the State Comptroller and, in the |
3 | | absence of corrective action by the General Assembly, the new |
4 | | benefit increase shall expire at the end of the fiscal year in |
5 | | which the certification is made.
|
6 | | (d) Every new benefit increase shall expire 5 years after |
7 | | its effective date or on such earlier date as may be specified |
8 | | in the language enacting the new benefit increase or provided |
9 | | under subsection (c). This does not prevent the General |
10 | | Assembly from extending or re-creating a new benefit increase |
11 | | by law. |
12 | | (e) Except as otherwise provided in the language creating |
13 | | the new benefit increase, a new benefit increase that expires |
14 | | under this Section continues to apply to persons who applied |
15 | | and qualified for the affected benefit while the new benefit |
16 | | increase was in effect and to the affected beneficiaries and |
17 | | alternate payees of such persons, but does not apply to any |
18 | | other person, including without limitation a person who |
19 | | continues in service after the expiration date and did not |
20 | | apply and qualify for the affected benefit while the new |
21 | | benefit 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 |
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1 | | a voluntary defined contribution plan for up to 5% of eligible |
2 | | active Tier 1 employees. The System shall determine the 5% cap |
3 | | by the number of active Tier 1 employees on the effective date |
4 | | of this Section. The defined contribution plan developed under |
5 | | this Section shall be a plan that aggregates employer and |
6 | | employee contributions in individual participant accounts |
7 | | which, after meeting any other requirements, are used for |
8 | | payouts after retirement in accordance with this Section and |
9 | | any other applicable laws. |
10 | | As used in this Section, "defined benefit plan" means the |
11 | | retirement plan available under this Article to Tier 1 |
12 | | employees who have not made the election authorized under this |
13 | | Section. |
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 |
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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. |
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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 |
19 | | System on the effective date of this Section are eligible to |
20 | | participate in the defined contribution plan. Participation in |
21 | | the defined contribution plan shall be limited to the first 5% |
22 | | of eligible persons who elect to participate. The election to |
23 | | participate in the defined contribution plan is voluntary and |
24 | | irrevocable. |
25 | | (c) An eligible Tier 1 employee may irrevocably elect to |
26 | | participate in the defined contribution plan by filing with the |
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1 | | System a written application to participate that is received by |
2 | | the System prior to its determination that 5% of eligible |
3 | | persons have elected to participate in the defined contribution |
4 | | plan. |
5 | | When the System first determines that 5% of eligible |
6 | | persons have elected to participate in the defined contribution |
7 | | plan, the System shall provide notice to previously eligible |
8 | | employees that the plan is no longer available and shall cease |
9 | | accepting applications to participate. |
10 | | (d) The System shall make a good faith effort to contact |
11 | | each active Tier 1 employee who is eligible to participate in |
12 | | the defined contribution plan. The System shall mail |
13 | | information describing the option to join the defined |
14 | | contribution plan to each of these employees to his or her last |
15 | | known address on file with the System. If the employee is not |
16 | | responsive to other means of contact, it is sufficient for the |
17 | | System to publish the details of the option on its website. |
18 | | Upon request for further information describing the |
19 | | option, the System shall provide employees with information |
20 | | from the System before exercising the option to join the plan, |
21 | | including information on the impact to their vested benefits or |
22 | | non-vested service. The individual consultation shall include |
23 | | projections of the member's defined benefits at retirement or |
24 | | earlier termination of service and the value of the member's |
25 | | account at retirement or earlier termination of service. The |
26 | | System shall not provide advice or counseling with respect to |
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1 | | whether the employee should exercise the option. The System |
2 | | shall inform Tier 1 employees who are eligible to participate |
3 | | in the defined contribution plan that they may also wish to |
4 | | obtain information and counsel relating to their option from |
5 | | any other available source, including but not limited to labor |
6 | | organizations, private counsel, and financial advisors. |
7 | | (e) In no event shall the System, its staff, its authorized |
8 | | representatives, or the Board be liable for any information |
9 | | given to an employee under this Section. The System may |
10 | | coordinate with the Illinois Department of Central Management |
11 | | Services and other retirement systems administering a defined |
12 | | contribution plan in accordance with this amendatory Act of the |
13 | | 100th General Assembly to provide information concerning the |
14 | | impact of the option set forth in this Section. |
15 | | (f) Notwithstanding any other provision of this Section, no |
16 | | person shall begin participating in the defined contribution |
17 | | plan until it has attained qualified plan status and received |
18 | | all necessary approvals from the U.S. Internal Revenue Service. |
19 | | (g) The System shall report on its progress under this |
20 | | Section, including the available details of the defined |
21 | | contribution plan and the System's plans for informing eligible |
22 | | Tier 1 employees about the plan, to the Governor and the |
23 | | General Assembly on or before January 15, 2018. |
24 | | (h) If an active Tier 1 employee has not made an election |
25 | | under Section 15-134.5 of this Code, then the plan prescribed |
26 | | under this Section shall not apply to that Tier 1 employee and |
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1 | | that Tier 1 employee shall remain eligible to make the election |
2 | | prescribed under Section 15-134.5. |
3 | | (i) The intent of this amendatory Act of the 100th General |
4 | | Assembly is to ensure that the State's normal cost of |
5 | | participation in the defined contribution plan is similar, and |
6 | | if possible equal, to the State's normal cost of participation |
7 | | in the defined benefit plan, unless a lower State's normal cost |
8 | | is necessary to ensure cost neutrality. |
9 | | (j) If Section 15-132.9 is determined to be |
10 | | unconstitutional or otherwise invalid by a final unappealable |
11 | | decision of an Illinois court or a court of competent |
12 | | jurisdiction, then this Section shall not take effect and is |
13 | | repealed by operation of law. |
14 | | (40 ILCS 5/15-201.1 new) |
15 | | Sec. 15-201.1. Defined contribution plan; termination. If |
16 | | the defined contribution plan is terminated or becomes |
17 | | inoperative pursuant to law, then each participant in the plan |
18 | | shall automatically be deemed to have been a contributing Tier |
19 | | 1 employee participating in the System's defined benefit plan |
20 | | during the time in which he or she participated in the defined |
21 | | contribution plan, and for that purpose the System shall be |
22 | | entitled to recover the amounts in the participant's defined |
23 | | contribution accounts. |
24 | | (40 ILCS 5/16-107.1 new) |
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1 | | Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A |
2 | | teacher under this Article who first became a member or |
3 | | participant before January 1, 2011 under any reciprocal |
4 | | retirement system or pension fund established under this Code |
5 | | other than a retirement system or pension fund established |
6 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for |
7 | | the purposes of the election under Section 16-122.9, "Tier 1 |
8 | | employee" does not include a teacher under this Article who |
9 | | would qualify as a Tier 1 employee but who has made an |
10 | | irrevocable election on or before June 1, 2017 to retire from |
11 | | service pursuant to the terms of a collective bargaining |
12 | | agreement in effect on June 1, 2017, excluding any extension, |
13 | | amendment, or renewal of that agreement on or after that date, |
14 | | and 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, |
17 | | which has been held unconstitutional)
|
18 | | Sec. 16-121. Salary. "Salary": The actual compensation |
19 | | received by a teacher during any
school year and recognized by |
20 | | the system in accordance with
rules of the board. For purposes |
21 | | of this Section, "school year" includes
the regular school term |
22 | | plus any additional period for which a teacher is
compensated |
23 | | and 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 |
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1 | | offered by an employer for service as a Tier 1 employee under |
2 | | this Article pursuant to the condition set forth in subsection |
3 | | (c) of Section 16-122.9 and accepted under that condition by a |
4 | | Tier 1 employee who has made the election under paragraph (2) |
5 | | of 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 |
8 | | Tier 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 |
12 | | in income" means an increase in income in any form offered by |
13 | | an employer to a Tier 1 employee for service under this Article |
14 | | after June 30, 2018 that qualifies as "salary", as defined in |
15 | | Section 16-121, or would qualify as "salary" but for the fact |
16 | | that it was offered to and accepted by a Tier 1 employee under |
17 | | the condition set forth in subsection (c) of Section 16-122.9. |
18 | | The term "future increase in income" does not include an |
19 | | increase in income in any form that is paid to a Tier 1 |
20 | | employee under an employment contract or a collective |
21 | | bargaining agreement that is in effect on the effective date of |
22 | | this Section, but does include an increase in income in any |
23 | | form pursuant to an extension, amendment, or renewal of any |
24 | | such employment contract or collective bargaining agreement on |
25 | | or after the effective date of this Section. |
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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 |
4 | | election 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 |
17 | | made by each active Tier 1 employee no earlier than January 1, |
18 | | 2018 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 |
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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 |
4 | | required election under this subsection within the time |
5 | | specified, then the employee shall be deemed to have made the |
6 | | election under paragraph (2) of this subsection. |
7 | | (a-5) If this Section is enjoined or stayed by an Illinois |
8 | | court or a court of competent jurisdiction pending the entry of |
9 | | a final and unappealable decision, and this Section is |
10 | | determined to be constitutional or otherwise valid by a final |
11 | | unappealable decision of an Illinois court or a court of |
12 | | competent jurisdiction, then the election procedure set forth |
13 | | in subsection (a) of this Section shall commence on the 180th |
14 | | calendar day after the date of the issuance of the final |
15 | | unappealable decision and shall conclude at the end of the |
16 | | 270th calendar day after that date. |
17 | | (a-10) All elections under subsection (a) that are made or |
18 | | deemed to be made before July 1, 2018 shall take effect on July |
19 | | 1, 2018. Elections that are made or deemed to be made on or |
20 | | after July 1, 2018 shall take effect on the first day of the |
21 | | month following the month in which the election is made or |
22 | | deemed to be made. |
23 | | (b) As adequate and legal consideration provided under this |
24 | | amendatory Act of the 100th General Assembly for making an |
25 | | election under paragraph (1) of subsection (a) of this Section, |
26 | | an employer shall be expressly and irrevocably prohibited from |
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1 | | offering any future increases in income to a Tier 1 employee |
2 | | who has made an election under paragraph (1) of subsection (a) |
3 | | of this Section on the condition of not constituting salary |
4 | | under Section 16-121. |
5 | | As adequate and legal consideration provided under this |
6 | | amendatory Act of the 100th General Assembly for making an |
7 | | election under paragraph (1) of subsection (a) of this Section, |
8 | | each Tier 1 employee who has made an election under paragraph |
9 | | (1) of subsection (a) of this Section shall receive a |
10 | | consideration payment equal to 10% of the contributions made by |
11 | | or on behalf of the employee under paragraphs (1), (2), and (3) |
12 | | of subsection (a) of Section 16-152 before the effective date |
13 | | of that election. The State Comptroller shall pay the |
14 | | consideration payment to the Tier 1 employee out of funds |
15 | | appropriated for that purpose under Section 1.9 of the State |
16 | | Pension Funds Continuing Appropriation Act. The System shall |
17 | | calculate the amount of each consideration payment and shall |
18 | | certify to the State Comptroller the amount of the |
19 | | consideration payment, together with the name, address, and any |
20 | | other available payment information of the Tier 1 employee as |
21 | | found in the records of the System. |
22 | | (c) A Tier 1 employee who makes the election under |
23 | | paragraph (2) of subsection (a) of this Section shall not be |
24 | | subject to paragraph (1) of subsection (a) of this Section. |
25 | | However, each future increase in income offered by an employer |
26 | | under this Article to a Tier 1 employee who has made the |
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1 | | election under paragraph (2) of subsection (a) of this Section |
2 | | shall be offered by the employer expressly and irrevocably on |
3 | | the condition of not constituting salary under Section 16-121 |
4 | | and that the Tier 1 employee's acceptance of the offered future |
5 | | increase in income shall constitute his or her agreement to |
6 | | that condition. |
7 | | (d) The System shall make a good faith effort to contact |
8 | | each Tier 1 employee subject to this Section. The System shall |
9 | | mail information describing the required election to each Tier |
10 | | 1 employee by United States Postal Service mail to his or her |
11 | | last known address on file with the System. If the Tier 1 |
12 | | employee is not responsive to other means of contact, it is |
13 | | sufficient for the System to publish the details of any |
14 | | required elections on its website or to publish those details |
15 | | in a regularly published newsletter or other existing public |
16 | | forum. |
17 | | Tier 1 employees who are subject to this Section shall be |
18 | | provided with an election packet containing information |
19 | | regarding their options, as well as the forms necessary to make |
20 | | the required election. Upon request, the System shall offer |
21 | | Tier 1 employees an opportunity to receive information from the |
22 | | System before making the required election. The information may |
23 | | consist of video materials, group presentations, individual |
24 | | consultation with a member or authorized representative of the |
25 | | System in person or by telephone or other electronic means, or |
26 | | any combination of those methods. The System shall not provide |
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1 | | advice or counseling with respect to which election a Tier 1 |
2 | | employee should make or specific to the legal or tax |
3 | | circumstances of or consequences to the Tier 1 employee. |
4 | | The System shall inform Tier 1 employees in the election |
5 | | packet required under this subsection that the Tier 1 employee |
6 | | may also wish to obtain information and counsel relating to the |
7 | | election required under this Section from any other available |
8 | | source, including, but not limited to, labor organizations and |
9 | | private counsel. |
10 | | In no event shall the System, its staff, or the Board be |
11 | | held liable for any information given to a member regarding the |
12 | | elections under this Section. The System shall coordinate with |
13 | | the Illinois Department of Central Management Services and each |
14 | | other retirement system administering an election in |
15 | | accordance with this amendatory Act of the 100th General |
16 | | Assembly to provide information concerning the impact of the |
17 | | election set forth in this Section. |
18 | | (e) Notwithstanding any other provision of law, an employer |
19 | | under this Article is required to offer each future increase in |
20 | | income expressly and irrevocably on the condition of not |
21 | | constituting "salary" under Section 16-121 to any Tier 1 |
22 | | employee who has made an election under paragraph (2) of |
23 | | subsection (a) of this Section. The offer shall also provide |
24 | | that the Tier 1 employee's acceptance of the offered future |
25 | | increase in income shall constitute his or her agreement to the |
26 | | condition set forth in this subsection. |
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1 | | For purposes of legislative intent, the condition set forth |
2 | | in this subsection shall be construed in a manner that ensures |
3 | | that the condition is not violated or circumvented through any |
4 | | contrivance of any kind. |
5 | | (f) A member's election under this Section is not a |
6 | | prohibited election under subdivision (j)(1) of Section 1-119 |
7 | | of this Code. |
8 | | (g) No provision of this Section shall be interpreted in a |
9 | | way that would cause the System to cease to be a qualified plan |
10 | | under Section 401(a) of the Internal Revenue Code of 1986. |
11 | | (h) If an election created by this amendatory Act in any |
12 | | other Article of this Code or any change deriving from that |
13 | | election is determined to be unconstitutional or otherwise |
14 | | invalid by a final unappealable decision of an Illinois court |
15 | | or a court of competent jurisdiction, the invalidity of that |
16 | | provision shall not in any way affect the validity of this |
17 | | Section or the changes deriving from the election required |
18 | | under this Section.
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19 | | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
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20 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
21 | | which has been held unconstitutional)
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22 | | Sec. 16-133.1. Automatic annual increase in annuity.
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23 | | (a) Each member with creditable service and retiring on or |
24 | | after August 26,
1969 is entitled to the automatic annual |
25 | | increases in annuity provided under
this Section while |
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1 | | receiving a retirement annuity or disability retirement
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2 | | annuity from the system.
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3 | | Except as otherwise provided in subsection (a-1), an An |
4 | | annuitant shall first be entitled to an initial increase under |
5 | | this
Section on the January 1 next following the first |
6 | | anniversary of retirement,
or January 1 of the year next |
7 | | following attainment of age 61, whichever is
later. At such |
8 | | time, the system shall pay an initial increase determined as
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9 | | follows:
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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.
|
22 | | However, the initial annual increase calculated under this |
23 | | Section for the
recipient of a disability retirement annuity |
24 | | granted under Section 16-149.2
shall be reduced by an amount |
25 | | equal to the total of all increases in that
annuity received |
26 | | under Section 16-149.5 (but not exceeding 100% of the amount
of |
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1 | | the initial increase otherwise provided under this Section).
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2 | | Except as otherwise provided in subsection (a-1), |
3 | | following Following the initial increase, automatic annual |
4 | | increases in annuity shall
be payable on each January 1 |
5 | | thereafter during the lifetime of the annuitant,
determined as |
6 | | a percentage of the originally granted retirement annuity
or |
7 | | disability retirement annuity for increases granted prior to |
8 | | January
1, 1990, and calculated as a percentage of the total |
9 | | amount of annuity,
including previous increases under this |
10 | | Section, for increases granted on
or after January 1, 1990, as |
11 | | follows: 1.5% for periods prior to January 1,
1972, 2% for |
12 | | periods after December 31, 1971 and prior to January 1, 1978,
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13 | | and 3% for periods after December 31, 1977.
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14 | | (a-1) Notwithstanding any other provision of this Article, |
15 | | for a Tier 1 employee who made the election under paragraph (1) |
16 | | of 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 |
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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" |
10 | | means
the index published by the Bureau of Labor Statistics of |
11 | | the United States
Department of Labor that measures the average |
12 | | change in prices of goods and
services purchased by all urban |
13 | | consumers, United States city average, all
items, 1982-84 = |
14 | | 100. The new amount resulting from each annual adjustment
shall |
15 | | be determined by the Public Pension Division of the Department |
16 | | of Insurance and made available to the board of the retirement |
17 | | system by November 1 of each year. |
18 | | (b) The automatic annual increases in annuity provided |
19 | | under this Section
shall not be applicable unless a member has |
20 | | made contributions toward such
increases for a period |
21 | | equivalent to one full year of creditable service.
If a member |
22 | | contributes for service performed after August 26, 1969 but
the |
23 | | member becomes an annuitant before such contributions amount to |
24 | | one
full year's contributions based on the salary at the date |
25 | | of retirement,
he or she may pay the necessary balance of the |
26 | | contributions to the system
and be eligible for the automatic |
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1 | | annual increases in annuity provided under
this Section.
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2 | | (c) Each member shall make contributions toward the cost of |
3 | | the automatic
annual increases in annuity as provided under |
4 | | Section 16-152.
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5 | | (d) An annuitant receiving a retirement annuity or |
6 | | disability retirement
annuity on July 1, 1969, who subsequently |
7 | | re-enters service as a teacher
is eligible for the automatic |
8 | | annual increases in annuity provided under
this Section if he |
9 | | or she renders at least one year of creditable service
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10 | | following the latest re-entry.
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11 | | (e) In addition to the automatic annual increases in |
12 | | annuity provided
under this Section, an annuitant who meets the |
13 | | service requirements of this
Section and whose retirement |
14 | | annuity or disability retirement annuity began
on or before |
15 | | January 1, 1971 shall receive, on January 1, 1981, an increase
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16 | | in the annuity then being paid of one dollar per month for each |
17 | | year of
creditable service. On January 1, 1982, an annuitant |
18 | | whose retirement
annuity or disability retirement annuity |
19 | | began on or before January 1, 1977
shall receive an increase in |
20 | | the annuity then being paid of one dollar per
month for each |
21 | | year of creditable service.
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22 | | On January 1, 1987, any annuitant whose retirement annuity |
23 | | began
on or before January 1, 1977, shall receive an increase |
24 | | in the monthly
retirement annuity equal to 8¢ per year of |
25 | | creditable service times the
number of years that have elapsed |
26 | | since the annuity began.
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1 | | (Source: P.A. 91-927, eff. 12-14-00.)
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2 | | (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
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3 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
4 | | which has been held unconstitutional)
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5 | | Sec. 16-136.1. Annual increase for certain annuitants. |
6 | | (a) Any annuitant receiving a retirement annuity on June |
7 | | 30, 1969 and
any member retiring after June 30, 1969 shall be |
8 | | eligible for the annual
increases provided under this Section |
9 | | provided the annuitant is ineligible
for the automatic annual |
10 | | increase in annuity provided under Section
16-133.1, and |
11 | | provided further that (1) retirement occurred at age 55 or over
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12 | | and was based on 5 or more years of creditable service or (2) |
13 | | if
retirement occurred prior to age 55, the retirement annuity
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14 | | was based on 20 or more years of creditable service.
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15 | | (b) Except as otherwise provided in subsection (b-1), an An |
16 | | annuitant entitled to increases under this Section shall be |
17 | | entitled
to the initial increase as of the later of: (1) |
18 | | January 1 following
attainment of age 65, (2) January 1 |
19 | | following the first anniversary
of retirement, or (3) the first |
20 | | day of the month following receipt of
the required qualifying |
21 | | contribution from the annuitant. The initial monthly
increase |
22 | | shall be computed on the basis of the period elapsed between
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23 | | the later of the date of last retirement or attainment of age |
24 | | 50 and the
date of qualification for the initial increase, at |
25 | | the rate of 1 1/2% of
the original monthly retirement annuity |
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1 | | per year for periods
prior to September 1, 1971, and at the |
2 | | rate of 2% per year for periods between
September 1, 1971 and |
3 | | September 1, 1978, and at the rate of 3% per year
for periods |
4 | | thereafter.
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5 | | Except as otherwise provided in subsection (b-1), if |
6 | | applicable, an An annuitant who has received an initial |
7 | | increase under this Section ,
shall be entitled, on each January |
8 | | 1 following the granting of the
initial increase, to an |
9 | | increase of 3% of the original monthly retirement
annuity for |
10 | | increases granted prior to January 1, 1990, and equal to 3%
of |
11 | | the total annuity, including previous increases under this |
12 | | Section, for
increases granted on or after January 1, 1990. The |
13 | | original monthly
retirement annuity for computations under |
14 | | this subsection
(b) shall be considered to be $83.34 for any |
15 | | annuitant entitled to benefits
under Section 16-134. The |
16 | | minimum original disability retirement annuity
for |
17 | | computations under this subsection (b) shall be considered to |
18 | | be
$33.34 per month for any annuitant retired on account of |
19 | | disability.
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20 | | (b-1) Notwithstanding any other provision of this Article, |
21 | | for a Tier 1 employee who made the election under paragraph (1) |
22 | | of 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 |
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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" |
16 | | means
the index published by the Bureau of Labor Statistics of |
17 | | the United States
Department of Labor that measures the average |
18 | | change in prices of goods and
services purchased by all urban |
19 | | consumers, United States city average, all
items, 1982-84 = |
20 | | 100. The new amount resulting from each annual adjustment
shall |
21 | | be determined by the Public Pension Division of the Department |
22 | | of Insurance and made available to the board of the retirement |
23 | | system by November 1 of each year. |
24 | | (c) An annuitant who otherwise qualifies for annual
|
25 | | increases under this Section must make a one-time payment of
1% |
26 | | of the monthly final average salary for each full year of the |
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1 | | creditable
service forming the basis of the retirement annuity |
2 | | or, if the
retirement annuity was not computed using final |
3 | | average salary, 1% of the
original monthly retirement annuity |
4 | | for each full year of service
forming the basis of the |
5 | | retirement annuity.
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6 | | (d) In addition to other increases which may be provided by |
7 | | this Section,
regardless of creditable service, annuitants not |
8 | | meeting
the service requirements of Section 16-133.1 and whose |
9 | | retirement annuity
began on or before January 1, 1971 shall |
10 | | receive, on January
1, 1981, an increase in the retirement |
11 | | annuity then being paid
of one dollar per month for each year |
12 | | of creditable service forming
the basis of the retirement |
13 | | allowance. On January 1, 1982, annuitants
whose retirement |
14 | | annuity began on or before January 1, 1977, shall receive
an |
15 | | increase in the retirement annuity then being paid of one |
16 | | dollar per
month for each year of creditable service.
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17 | | On January 1, 1987, any annuitant whose retirement annuity |
18 | | began
on or before January 1, 1977, shall receive an increase |
19 | | in the monthly
retirement annuity equal to 8¢ per year of |
20 | | creditable service times the
number of years that have elapsed |
21 | | since the annuity began.
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22 | | (Source: P.A. 86-273.)
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23 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
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24 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
25 | | which has been held unconstitutional)
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1 | | Sec. 16-152. Contributions by members.
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2 | | (a) Except as otherwise provided in subsection (a-5), each |
3 | | Each member shall make contributions for membership service to |
4 | | this
System as follows:
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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".
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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.
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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.
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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.
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22 | | (a-5) Beginning July 1, 2018 or the effective date of the |
23 | | Tier 1 employee's election under paragraph (1) of subsection |
24 | | (a) of Section 16-122.9, whichever is later, in lieu of the |
25 | | contributions otherwise required under subsection (a), each |
26 | | Tier 1 employee who made the election under paragraph (1) of |
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1 | | subsection (a) of Section 16-122.9 shall make contributions as |
2 | | follows: |
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 |
16 | | full-time
teaching service shall be $192.
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17 | | (c) Contributions shall not be required of any annuitant |
18 | | receiving
a retirement annuity who is given employment as |
19 | | permitted under Section 16-118 or 16-150.1.
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20 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
21 | | retires with
more than 34 years of creditable service, and |
22 | | (iii) does not elect to qualify
for the augmented rate under |
23 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
24 | | to receive a partial refund of contributions made under this
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25 | | Section for service occurring after the later of June 30, 1998 |
26 | | or attainment
of 34 years of creditable service, in an amount |
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1 | | equal to 1.00% of the salary
upon which those contributions |
2 | | were based.
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3 | | (e) A member's contributions toward the cost of early |
4 | | retirement without discount made under item (a)(4) of this |
5 | | Section shall not be refunded if the member has elected early |
6 | | retirement without discount under Section 16-133.2 and has |
7 | | begun to receive a retirement annuity under this Article |
8 | | calculated in accordance with that election. Otherwise, a |
9 | | member's contributions toward the cost of early retirement |
10 | | without discount made under item (a)(4) of this Section shall |
11 | | be refunded according to whichever one of the following |
12 | | circumstances 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 |
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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, |
6 | | eff. 7-28-16.)
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7 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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8 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
9 | | which has been held unconstitutional)
|
10 | | Sec. 16-158. Contributions by State and other employing |
11 | | units.
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12 | | (a) The State shall make contributions to the System by |
13 | | means of
appropriations from the Common School Fund and other |
14 | | State funds of amounts
which, together with other employer |
15 | | contributions, employee contributions,
investment income, and |
16 | | other income, will be sufficient to meet the cost of
|
17 | | maintaining and administering the System on a 90% funded basis |
18 | | in accordance
with actuarial recommendations.
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19 | | The Board shall determine the amount of State contributions |
20 | | required for
each fiscal year on the basis of the actuarial |
21 | | tables and other assumptions
adopted by the Board and the |
22 | | recommendations of the actuary, using the formula
in subsection |
23 | | (b-3).
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24 | | (a-1) Annually, on or before November 15 until November 15, |
25 | | 2011, the Board shall certify to the
Governor the amount of the |
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1 | | required State contribution for the coming fiscal
year. The |
2 | | certification under this subsection (a-1) shall include a copy |
3 | | of the actuarial recommendations
upon which it is based and |
4 | | shall specifically identify the System's projected State |
5 | | normal cost for that fiscal year.
|
6 | | On or before May 1, 2004, the Board shall recalculate and |
7 | | recertify to
the Governor the amount of the required State |
8 | | contribution to the System for
State fiscal year 2005, taking |
9 | | into account the amounts appropriated to and
received by the |
10 | | System under subsection (d) of Section 7.2 of the General
|
11 | | Obligation Bond Act.
|
12 | | On or before July 1, 2005, the Board shall recalculate and |
13 | | recertify
to the Governor the amount of the required State
|
14 | | contribution to the System for State fiscal year 2006, taking |
15 | | into account the changes in required State contributions made |
16 | | by this amendatory Act of the 94th General Assembly.
|
17 | | On or before April 1, 2011, the Board shall recalculate and |
18 | | recertify to the Governor the amount of the required State |
19 | | contribution to the System for State fiscal year 2011, applying |
20 | | the changes made by Public Act 96-889 to the System's assets |
21 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
22 | | was approved on that date. |
23 | | (a-5) On or before November 1 of each year, beginning |
24 | | November 1, 2012, the Board shall submit to the State Actuary, |
25 | | the Governor, and the General Assembly a proposed certification |
26 | | of the amount of the required State contribution to the System |
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1 | | for the next fiscal year, along with all of the actuarial |
2 | | assumptions, calculations, and data upon which that proposed |
3 | | certification is based. On or before January 1 of each year, |
4 | | beginning January 1, 2013, the State Actuary shall issue a |
5 | | preliminary report concerning the proposed certification and |
6 | | identifying, if necessary, recommended changes in actuarial |
7 | | assumptions that the Board must consider before finalizing its |
8 | | certification of the required State contributions. On or before |
9 | | January 15, 2013 and each January 15 thereafter, the Board |
10 | | shall certify to the Governor and the General Assembly the |
11 | | amount of the required State contribution for the next fiscal |
12 | | year. The Board's certification must note any deviations from |
13 | | the State Actuary's recommended changes, the reason or reasons |
14 | | for not following the State Actuary's recommended changes, and |
15 | | the fiscal impact of not following the State Actuary's |
16 | | recommended changes on the required State contribution. |
17 | | (a-10) As soon as practical after the effective date of |
18 | | this amendatory Act of the 100th General Assembly, the State |
19 | | Actuary and the Board shall recalculate and recertify to the |
20 | | Governor and the General Assembly the amount of the State |
21 | | contribution to the System for State fiscal year 2018, taking |
22 | | into account the changes in required State contributions made |
23 | | by this amendatory Act of the 100th General Assembly. |
24 | | (a-15) On or before May 1, 2018, the Board shall |
25 | | recalculate and recertify
to the Governor and the General |
26 | | Assembly the amount of the required State
contribution to the |
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1 | | System for State fiscal year 2019, taking into account the |
2 | | effect on the System's liabilities of the elections made under |
3 | | Section 16-122.9. |
4 | | On or before October 1, 2018, the Board shall recalculate |
5 | | and recertify to the Governor and the General Assembly the |
6 | | amount of the required State contribution to the System for |
7 | | State fiscal year 2019, taking into account the reduction |
8 | | specified under item (3) of subsection (b-3) of this Section. |
9 | | (b) Through State fiscal year 1995, the State contributions |
10 | | shall be
paid to the System in accordance with Section 18-7 of |
11 | | the School Code.
|
12 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
13 | | of each month,
or as soon thereafter as may be practicable, the |
14 | | Board shall submit vouchers
for payment of State contributions |
15 | | to the System, in a total monthly amount of
one-twelfth of the |
16 | | required annual State contribution certified under
subsection |
17 | | (a-1).
From the
effective date of this amendatory Act of the |
18 | | 93rd General Assembly
through June 30, 2004, the Board shall |
19 | | not submit vouchers for the
remainder of fiscal year 2004 in |
20 | | excess of the fiscal year 2004
certified contribution amount |
21 | | determined under this Section
after taking into consideration |
22 | | the transfer to the System
under subsection (a) of Section |
23 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by |
24 | | the State Comptroller and
Treasurer by warrants drawn on the |
25 | | funds appropriated to the System for that
fiscal year.
|
26 | | If in any month the amount remaining unexpended from all |
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1 | | other appropriations
to the System for the applicable fiscal |
2 | | year (including the appropriations to
the System under Section |
3 | | 8.12 of the State Finance Act and Section 1 of the
State |
4 | | Pension Funds Continuing Appropriation Act) is less than the |
5 | | amount
lawfully vouchered under this subsection, the |
6 | | difference shall be paid from the
Common School Fund under the |
7 | | continuing appropriation authority provided in
Section 1.1 of |
8 | | the State Pension Funds Continuing Appropriation Act.
|
9 | | (b-2) Allocations from the Common School Fund apportioned |
10 | | to school
districts not coming under this System shall not be |
11 | | diminished or affected by
the provisions of this Article.
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12 | | (b-3) For State fiscal years 2018 through 2045 (except as |
13 | | otherwise provided for fiscal year 2019), the minimum |
14 | | contribution to the System to be made by the State for each |
15 | | fiscal year shall be an amount determined by the System to be |
16 | | sufficient to bring the total assets of the System up to 90% of |
17 | | the total actuarial liabilities of the System by the end of |
18 | | State fiscal year 2045. In making these determinations, the |
19 | | required State contribution shall be calculated each year as a |
20 | | level percentage of total payroll, including payroll that is |
21 | | not deemed pensionable, but excluding payroll attributable to |
22 | | participants in the defined contribution plan under Section |
23 | | 16-205.1, over the years remaining to and including fiscal year |
24 | | 2045 and shall be determined under the projected unit credit |
25 | | actuarial cost method. |
26 | | For State fiscal year 2019: |
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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 |
15 | | decrease in State contribution over the prior fiscal year due |
16 | | exclusively to changes in actuarial or investment assumptions |
17 | | adopted by the Board shall be included in the State |
18 | | contribution to the System, as a percentage of the applicable |
19 | | employee payroll, and shall be increased in equal annual |
20 | | increments so that by the State fiscal year occurring 5 years |
21 | | after the adoption of the actuarial or investment assumptions, |
22 | | the State is contributing at the rate otherwise required under |
23 | | this Section. |
24 | | For State fiscal years 2012 through 2017 2045 , the minimum |
25 | | contribution
to the System to be made by the State for each |
26 | | fiscal year shall be an amount
determined by the System to be |
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1 | | sufficient to bring the total assets of the
System up to 90% of |
2 | | the total actuarial liabilities of the System by the end of
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3 | | State fiscal year 2045. In making these determinations, the |
4 | | required State
contribution shall be calculated each year as a |
5 | | level percentage of payroll
over the years remaining to and |
6 | | including fiscal year 2045 and shall be
determined under the |
7 | | projected unit credit actuarial cost method.
|
8 | | For State fiscal years 1996 through 2005, the State |
9 | | contribution to the
System, as a percentage of the applicable |
10 | | employee payroll, shall be increased
in equal annual increments |
11 | | so that by State fiscal year 2011, the State is
contributing at |
12 | | the rate required under this Section; except that in the
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13 | | following specified State fiscal years, the State contribution |
14 | | to the System
shall not be less than the following indicated |
15 | | percentages of the applicable
employee payroll, even if the |
16 | | indicated percentage will produce a State
contribution in |
17 | | excess of the amount otherwise required under this subsection
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18 | | and subsection (a), and notwithstanding any contrary |
19 | | certification made under
subsection (a-1) before the effective |
20 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
21 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
22 | | 2003; and
13.56% in FY 2004.
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23 | | Notwithstanding any other provision of this Article, the |
24 | | total required State
contribution for State fiscal year 2006 is |
25 | | $534,627,700.
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26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State
contribution for State fiscal year 2007 is |
2 | | $738,014,500.
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3 | | For each of State fiscal years 2008 through 2009, the State |
4 | | contribution to
the System, as a percentage of the applicable |
5 | | employee payroll, shall be
increased in equal annual increments |
6 | | from the required State contribution for State fiscal year |
7 | | 2007, so that by State fiscal year 2011, the
State is |
8 | | contributing at the rate otherwise required under this Section.
|
9 | | Notwithstanding any other provision of this Article, the |
10 | | total required State contribution for State fiscal year 2010 is |
11 | | $2,089,268,000 and shall be made from the proceeds of bonds |
12 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General |
13 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
14 | | expenses determined by the System's share of total bond |
15 | | proceeds, (ii) any amounts received from the Common School Fund |
16 | | in fiscal year 2010, and (iii) any reduction in bond proceeds |
17 | | due to the issuance of discounted bonds, if applicable. |
18 | | Notwithstanding any other provision of this Article, the
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19 | | total required State contribution for State fiscal year 2011 is
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20 | | the amount recertified by the System on or before April 1, 2011 |
21 | | pursuant to subsection (a-1) of this Section and shall be made |
22 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
23 | | Section 7.2 of the General
Obligation Bond Act, less (i) the |
24 | | pro rata share of bond sale
expenses determined by the System's |
25 | | share of total bond
proceeds, (ii) any amounts received from |
26 | | the Common School Fund
in fiscal year 2011, and (iii) any |
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1 | | reduction in bond proceeds
due to the issuance of discounted |
2 | | bonds, if applicable. This amount shall include, in addition to |
3 | | the amount certified by the System, an amount necessary to meet |
4 | | employer contributions required by the State as an employer |
5 | | under paragraph (e) of this Section, which may also be used by |
6 | | the System for contributions required by paragraph (a) of |
7 | | Section 16-127. |
8 | | Beginning in State fiscal year 2046, the minimum State |
9 | | contribution for
each fiscal year shall be the amount needed to |
10 | | maintain the total assets of
the System at 90% of the total |
11 | | actuarial liabilities of the System.
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12 | | Amounts received by the System pursuant to Section 25 of |
13 | | the Budget Stabilization Act or Section 8.12 of the State |
14 | | Finance Act in any fiscal year do not reduce and do not |
15 | | constitute payment of any portion of the minimum State |
16 | | contribution required under this Article in that fiscal year. |
17 | | Such amounts shall not reduce, and shall not be included in the |
18 | | calculation of, the required State contributions under this |
19 | | Article in any future year until the System has reached a |
20 | | funding ratio of at least 90%. A reference in this Article to |
21 | | the "required State contribution" or any substantially similar |
22 | | term does not include or apply to any amounts payable to the |
23 | | System under Section 25 of the Budget Stabilization Act. |
24 | | Notwithstanding any other provision of this Section, the |
25 | | required State
contribution for State fiscal year 2005 and for |
26 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
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1 | | under this Section and
certified under subsection (a-1), shall |
2 | | not exceed an amount equal to (i) the
amount of the required |
3 | | State contribution that would have been calculated under
this |
4 | | Section for that fiscal year if the System had not received any |
5 | | payments
under subsection (d) of Section 7.2 of the General |
6 | | Obligation Bond Act, minus
(ii) the portion of the State's |
7 | | total debt service payments for that fiscal
year on the bonds |
8 | | issued in fiscal year 2003 for the purposes of that Section |
9 | | 7.2, as determined
and certified by the Comptroller, that is |
10 | | the same as the System's portion of
the total moneys |
11 | | distributed under subsection (d) of Section 7.2 of the General
|
12 | | Obligation Bond Act. In determining this maximum for State |
13 | | fiscal years 2008 through 2010, however, the amount referred to |
14 | | in item (i) shall be increased, as a percentage of the |
15 | | applicable employee payroll, in equal increments calculated |
16 | | from the sum of the required State contribution for State |
17 | | fiscal year 2007 plus the applicable portion of the State's |
18 | | total debt service payments for fiscal year 2007 on the bonds |
19 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
20 | | the General
Obligation Bond Act, so that, by State fiscal year |
21 | | 2011, the
State is contributing at the rate otherwise required |
22 | | under this Section.
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23 | | (c) Payment of the required State contributions and of all |
24 | | pensions,
retirement annuities, death benefits, refunds, and |
25 | | other benefits granted
under or assumed by this System, and all |
26 | | expenses in connection with the
administration and operation |
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1 | | thereof, are obligations of the State.
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2 | | If members are paid from special trust or federal funds |
3 | | which are
administered by the employing unit, whether school |
4 | | district or other
unit, the employing unit shall pay to the |
5 | | System from such
funds the full accruing retirement costs based |
6 | | upon that
service, which, beginning July 1, 2014, shall be at a |
7 | | rate, expressed as a percentage of salary, equal to the total |
8 | | minimum contribution
to the System to be made by the State for |
9 | | that fiscal year, including both normal cost and unfunded |
10 | | liability components, expressed as a percentage of payroll, as |
11 | | determined by the System under subsection (b-3) of this |
12 | | Section. Employer contributions, based on
salary paid to |
13 | | members from federal funds, may be forwarded by the |
14 | | distributing
agency of the State of Illinois to the System |
15 | | prior to allocation, in an
amount determined in accordance with |
16 | | guidelines established by such
agency and the System. Any |
17 | | contribution for fiscal year 2015 collected as a result of the |
18 | | change made by this amendatory Act of the 98th General Assembly |
19 | | shall be considered a State contribution under subsection (b-3) |
20 | | of this Section.
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21 | | (d) Effective July 1, 1986, any employer of a teacher as |
22 | | defined in
paragraph (8) of Section 16-106 shall pay the |
23 | | employer's normal cost
of benefits based upon the teacher's |
24 | | service, in addition to
employee contributions, as determined |
25 | | by the System. Such employer
contributions shall be forwarded |
26 | | monthly in accordance with guidelines
established by the |
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1 | | System.
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2 | | However, with respect to benefits granted under Section |
3 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
4 | | of Section 16-106, the
employer's contribution shall be 12% |
5 | | (rather than 20%) of the member's
highest annual salary rate |
6 | | for each year of creditable service granted, and
the employer |
7 | | shall also pay the required employee contribution on behalf of
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8 | | the teacher. For the purposes of Sections 16-133.4 and |
9 | | 16-133.5, a teacher
as defined in paragraph (8) of Section |
10 | | 16-106 who is serving in that capacity
while on leave of |
11 | | absence from another employer under this Article shall not
be |
12 | | considered an employee of the employer from which the teacher |
13 | | is on leave.
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14 | | (e) Beginning July 1, 1998, every employer of a teacher
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15 | | shall pay to the System an employer contribution computed as |
16 | | follows:
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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.
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20 | | (2) Beginning July 1, 1999 and thereafter, the employer
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21 | | contribution shall be equal to 0.58% of each teacher's |
22 | | salary.
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23 | | The school district or other employing unit may pay these |
24 | | employer
contributions out of any source of funding available |
25 | | for that purpose and
shall forward the contributions to the |
26 | | System on the schedule established
for the payment of member |
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1 | | contributions.
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2 | | These employer contributions are intended to offset a |
3 | | portion of the cost
to the System of the increases in |
4 | | retirement benefits resulting from this
amendatory Act of 1998.
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5 | | Each employer of teachers is entitled to a credit against |
6 | | the contributions
required under this subsection (e) with |
7 | | respect to salaries paid to teachers
for the period January 1, |
8 | | 2002 through June 30, 2003, equal to the amount paid
by that |
9 | | employer under subsection (a-5) of Section 6.6 of the State |
10 | | Employees
Group Insurance Act of 1971 with respect to salaries |
11 | | paid to teachers for that
period.
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12 | | The additional 1% employee contribution required under |
13 | | Section 16-152 by
this amendatory Act of 1998 is the |
14 | | responsibility of the teacher and not the
teacher's employer, |
15 | | unless the employer agrees, through collective bargaining
or |
16 | | otherwise, to make the contribution on behalf of the teacher.
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17 | | If an employer is required by a contract in effect on May |
18 | | 1, 1998 between the
employer and an employee organization to |
19 | | pay, on behalf of all its full-time
employees
covered by this |
20 | | Article, all mandatory employee contributions required under
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21 | | this Article, then the employer shall be excused from paying |
22 | | the employer
contribution required under this subsection (e) |
23 | | for the balance of the term
of that contract. The employer and |
24 | | the employee organization shall jointly
certify to the System |
25 | | the existence of the contractual requirement, in such
form as |
26 | | the System may prescribe. This exclusion shall cease upon the
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1 | | termination, extension, or renewal of the contract at any time |
2 | | after May 1,
1998.
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3 | | (f) For school years beginning on or after June 1, 2005 and |
4 | | before July 1, 2018, if If the amount of a teacher's salary for |
5 | | any school year used to determine final average salary exceeds |
6 | | the member's annual full-time salary rate with the same |
7 | | employer for the previous school year by more than 6%, the |
8 | | teacher's employer shall pay to the System, in addition to all |
9 | | other payments required under this Section and in accordance |
10 | | with guidelines established by the System, the present value of |
11 | | the increase in benefits resulting from the portion of the |
12 | | increase in salary that is in excess of 6%. This present value |
13 | | shall be computed by the System on the basis of the actuarial |
14 | | assumptions and tables used in the most recent actuarial |
15 | | valuation of the System that is available at the time of the |
16 | | computation. If a teacher's salary for the 2005-2006 school |
17 | | year is used to determine final average salary under this |
18 | | subsection (f), then the changes made to this subsection (f) by |
19 | | Public Act 94-1057 shall apply in calculating whether the |
20 | | increase in his or her salary is in excess of 6%. For the |
21 | | purposes of this Section, change in employment under Section |
22 | | 10-21.12 of the School Code on or after June 1, 2005 shall |
23 | | constitute a change in employer. The System may require the |
24 | | employer to provide any pertinent information or |
25 | | documentation.
The changes made to this subsection (f) by this |
26 | | amendatory Act of the 94th General Assembly apply without |
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1 | | regard to whether the teacher was in service on or after its |
2 | | effective date.
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3 | | Whenever it determines that a payment is or may be required |
4 | | under this subsection, the System shall calculate the amount of |
5 | | the payment and bill the employer for that amount. The bill |
6 | | shall specify the calculations used to determine the amount |
7 | | due. If the employer disputes the amount of the bill, it may, |
8 | | within 30 days after receipt of the bill, apply to the System |
9 | | in writing for a recalculation. The application must specify in |
10 | | detail the grounds of the dispute and, if the employer asserts |
11 | | that the calculation is subject to subsection (g) or (h) of |
12 | | this Section, must include an affidavit setting forth and |
13 | | attesting to all facts within the employer's knowledge that are |
14 | | pertinent to the applicability of that subsection. Upon |
15 | | receiving a timely application for recalculation, the System |
16 | | shall review the application and, if appropriate, recalculate |
17 | | the amount due.
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18 | | The employer contributions required under this subsection |
19 | | (f) may be paid in the form of a lump sum within 90 days after |
20 | | receipt of the bill. If the employer contributions are not paid |
21 | | within 90 days after receipt of the bill, then interest will be |
22 | | charged at a rate equal to the System's annual actuarially |
23 | | assumed rate of return on investment compounded annually from |
24 | | the 91st day after receipt of the bill. Payments must be |
25 | | concluded within 3 years after the employer's receipt of the |
26 | | bill.
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1 | | (f-1) For school years beginning on or after July 1, 2018, |
2 | | if the amount of a teacher's salary for any school year used to |
3 | | determine final average salary exceeds the member's annual |
4 | | full-time salary rate with the same employer for the previous |
5 | | school year by more than the unadjusted percentage increase in |
6 | | the consumer price index-u for the calendar year ending on the |
7 | | December 31 immediately preceding the beginning of the school |
8 | | year, then the teacher's employer shall pay to the System, in |
9 | | addition to all other payments required under this Section and |
10 | | in accordance with guidelines established by the System, the |
11 | | present value of the increase in benefits resulting from the |
12 | | portion of the increase in salary that is in excess of the |
13 | | unadjusted percentage increase in the consumer price index-u |
14 | | for the applicable calendar year. This present value shall be |
15 | | computed by the System on the basis of the actuarial |
16 | | assumptions and tables used in the most recent actuarial |
17 | | valuation of the System that is available at the time of the |
18 | | computation. The System may require the employer to provide any |
19 | | pertinent information or documentation. |
20 | | Whenever it determines that a payment is or may be required |
21 | | under this subsection (f-1), the System shall calculate the |
22 | | amount of the payment and bill the employer for that amount. |
23 | | The bill shall specify the calculations used to determine the |
24 | | amount due. If the employer disputes the amount of the bill, it |
25 | | may, within 30 days after receipt of the bill, apply to the |
26 | | System in writing for a recalculation. The application must |
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1 | | specify in detail the grounds of the dispute and, if the |
2 | | employer asserts that the calculation is subject to subsection |
3 | | (h-1) of this Section, must include an affidavit setting forth |
4 | | and attesting to all facts within the employer's knowledge that |
5 | | are pertinent to the applicability of subsection (h-1). Upon |
6 | | receiving a timely application for recalculation, the System |
7 | | shall review the application and, if appropriate, recalculate |
8 | | the 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 |
11 | | receipt of the bill. If the employer contributions are not paid |
12 | | within 90 days after receipt of the bill, then interest shall |
13 | | be charged at a rate equal to the System's annual actuarially |
14 | | assumed rate of return on investment compounded annually from |
15 | | the 91st day after receipt of the bill. Payments must be |
16 | | concluded within 3 years after the employer's receipt of the |
17 | | bill. |
18 | | For the purposes of this Section, "consumer price index-u" |
19 | | means the index published by the Bureau of Labor Statistics of |
20 | | the United States Department of Labor that measures the average |
21 | | change in prices of goods and services purchased by all urban |
22 | | consumers, United States city average, all items, 1982-84 = |
23 | | 100. The new amount resulting from each annual adjustment shall |
24 | | be determined by the Public Pension Division of the Department |
25 | | of Insurance and made available to the boards of the retirement |
26 | | systems and pension funds by November 1 of each year. |
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1 | | (g) This subsection (g) applies only to payments made or |
2 | | salary increases given on or after June 1, 2005 but before July |
3 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
4 | | require the System to refund any payments received before
July |
5 | | 31, 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 |
8 | | under contracts or collective bargaining agreements entered |
9 | | into, amended, or renewed before June 1, 2005.
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10 | | When assessing payment for any amount due under subsection |
11 | | (f), the System shall exclude salary increases paid to a |
12 | | teacher at a time when the teacher is 10 or more years from |
13 | | retirement eligibility under Section 16-132 or 16-133.2.
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14 | | When assessing payment for any amount due under subsection |
15 | | (f), the System shall exclude salary increases resulting from |
16 | | overload work, including summer school, when the school |
17 | | district has certified to the System, and the System has |
18 | | approved the certification, that (i) the overload work is for |
19 | | the sole purpose of classroom instruction in excess of the |
20 | | standard number of classes for a full-time teacher in a school |
21 | | district during a school year and (ii) the salary increases are |
22 | | equal to or less than the rate of pay for classroom instruction |
23 | | computed on the teacher's current salary and work schedule.
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24 | | When assessing payment for any amount due under subsection |
25 | | (f), the System shall exclude a salary increase resulting from |
26 | | a promotion (i) for which the employee is required to hold a |
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1 | | certificate or supervisory endorsement issued by the State |
2 | | Teacher Certification Board that is a different certification |
3 | | or supervisory endorsement than is required for the teacher's |
4 | | previous position and (ii) to a position that has existed and |
5 | | been filled by a member for no less than one complete academic |
6 | | year and the salary increase from the promotion is an increase |
7 | | that results in an amount no greater than the lesser of the |
8 | | average salary paid for other similar positions in the district |
9 | | requiring the same certification or the amount stipulated in |
10 | | the collective bargaining agreement for a similar position |
11 | | requiring the same certification.
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12 | | When assessing payment for any amount due under subsection |
13 | | (f), the System shall exclude any payment to the teacher from |
14 | | the State of Illinois or the State Board of Education over |
15 | | which the employer does not have discretion, notwithstanding |
16 | | that the payment is included in the computation of final |
17 | | average salary.
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18 | | (h) When assessing payment for any amount due under |
19 | | subsection (f), the System shall exclude any salary increase |
20 | | described in subsection (g) of this Section given on or after |
21 | | July 1, 2011 but before July 1, 2014 under a contract or |
22 | | collective bargaining agreement entered into, amended, or |
23 | | renewed on or after June 1, 2005 but before July 1, 2011. |
24 | | Notwithstanding any other provision of this Section, any |
25 | | payments made or salary increases given after June 30, 2014 |
26 | | shall be used in assessing payment for any amount due under |
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1 | | subsection (f) of this Section.
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2 | | (h-1) When assessing payment for any amount due under |
3 | | subsection (f-1), the System shall exclude earnings increases |
4 | | paid to participants under contracts or collective bargaining |
5 | | agreements entered into, amended, or renewed before the |
6 | | effective date of this amendatory Act of the 100th General |
7 | | Assembly. |
8 | | (i) The System shall prepare a report and file copies of |
9 | | the report with the Governor and the General Assembly by |
10 | | January 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.
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23 | | (i-5) For school years beginning on or after July 1, 2018, |
24 | | if the amount of a participant's salary for any school year, |
25 | | determined on a full-time equivalent basis, exceeds the amount |
26 | | of the salary set for the Governor, the participant's employer |
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1 | | shall pay to the System, in addition to all other payments |
2 | | required under this Section and in accordance with guidelines |
3 | | established by the System, the amount of earnings that exceed |
4 | | the salary set for the Governor multiplied by the level |
5 | | percentage of payroll used in that fiscal year as determined by |
6 | | the System to be sufficient to bring the total assets of the |
7 | | System up to 90% of the total actuarial liabilities of the |
8 | | System by the end of State fiscal year 2045. This amount shall |
9 | | be computed by the System on the basis of the actuarial |
10 | | assumptions and tables used in the most recent actuarial |
11 | | valuation of the System that is available at the time of the |
12 | | computation. The System may require the employer to provide any |
13 | | pertinent information or documentation. |
14 | | Whenever it determines that a payment is or may be required |
15 | | under this subsection, the System shall calculate the amount of |
16 | | the payment and bill the employer for that amount. The bill |
17 | | shall specify the calculations used to determine the amount |
18 | | due. If the employer disputes the amount of the bill, it may, |
19 | | within 30 days after receipt of the bill, apply to the System |
20 | | in writing for a recalculation. The application must specify in |
21 | | detail the grounds of the dispute. Upon receiving a timely |
22 | | application for recalculation, the System shall review the |
23 | | application and, if appropriate, recalculate the amount due. |
24 | | The employer contributions required under this subsection |
25 | | may be paid in the form of a lump sum within 90 days after |
26 | | receipt of the bill. If the employer contributions are not paid |
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1 | | within 90 days after receipt of the bill, then interest will be |
2 | | charged at a rate equal to the System's annual actuarially |
3 | | assumed rate of return on investment compounded annually from |
4 | | the 91st day after receipt of the bill. Payments must be |
5 | | concluded within 3 years after the employer's receipt of the |
6 | | bill. |
7 | | (j) For purposes of determining the required State |
8 | | contribution to the System, the value of the System's assets |
9 | | shall be equal to the actuarial value of the System's assets, |
10 | | which shall be calculated as follows: |
11 | | As of June 30, 2008, the actuarial value of the System's |
12 | | assets shall be equal to the market value of the assets as of |
13 | | that date. In determining the actuarial value of the System's |
14 | | assets for fiscal years after June 30, 2008, any actuarial |
15 | | gains or losses from investment return incurred in a fiscal |
16 | | year shall be recognized in equal annual amounts over the |
17 | | 5-year period following that fiscal year. |
18 | | (k) For purposes of determining the required State |
19 | | contribution to the system for a particular year, the actuarial |
20 | | value of assets shall be assumed to earn a rate of return equal |
21 | | to the system's actuarially assumed rate of return. |
22 | | (l) If Section 16-122.9 is determined to be |
23 | | unconstitutional or otherwise invalid by a final unappealable |
24 | | decision of an Illinois court or a court of competent |
25 | | jurisdiction, then the changes made to this Section by this |
26 | | amendatory Act of the 100th General Assembly shall not take |
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1 | | effect and are repealed by operation of law. |
2 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
3 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
4 | | 6-18-12; 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 |
18 | | Article 1 as it relates to those benefits, including any |
19 | | anticipated annual increases, that an eligible person is |
20 | | entitled to upon attainment of the applicable retirement age. |
21 | | "Pension benefit" also includes applicable survivor's or |
22 | | disability benefits. |
23 | | (b) Before January 1, 2018, and annually thereafter, the |
24 | | System shall calculate, using actuarial tables and other |
25 | | assumptions adopted by the Board, the net present value of |
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1 | | pension benefits for each eligible person and shall offer each |
2 | | eligible person the opportunity to irrevocably elect to receive |
3 | | an amount determined by the System to be equal to 70% of the |
4 | | net present value of his or her pension benefits in lieu of |
5 | | receiving any pension benefit. The offer shall specify the |
6 | | dollar amount that the eligible person will receive if he or |
7 | | she so elects and shall expire when a subsequent offer is made |
8 | | to an eligible person or when the System determines that 10% of |
9 | | eligible persons in that year have made the election under this |
10 | | subsection, whichever occurs first. The System shall make a |
11 | | good faith effort to contact every eligible person to notify |
12 | | him or her of the election and of the amount of the accelerated |
13 | | pension benefit payment. |
14 | | Until the System determines that 10% of eligible persons in |
15 | | that year have made the election under this subsection, an |
16 | | eligible person may irrevocably elect to receive an accelerated |
17 | | pension benefit payment in the amount that the System offers |
18 | | under this subsection in lieu of receiving any pension benefit. |
19 | | A person who elects to receive an accelerated pension benefit |
20 | | payment under this Section may not elect to proceed under the |
21 | | Retirement Systems Reciprocal Act with respect to service under |
22 | | this Article. |
23 | | (c) A person's credits and creditable service under this |
24 | | Article shall be terminated upon the person's receipt of an |
25 | | accelerated pension benefit payment under this Section, and no |
26 | | other benefit shall be paid under this Article based on those |
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1 | | terminated credits and creditable service, including any |
2 | | retirement, survivor, or other benefit; except that to the |
3 | | extent that participation, benefits, or premiums under the |
4 | | State Employees Group Insurance Act of 1971 are based on the |
5 | | amount of service credit, the terminated service credit shall |
6 | | be used for that purpose. |
7 | | (d) If a person who has received an accelerated pension |
8 | | benefit payment under this Section returns to active service |
9 | | under 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 |
19 | | benefit payment, an eligible person must have another |
20 | | retirement plan or account qualified under the Internal Revenue |
21 | | Code of 1986, as amended, for the accelerated pension benefit |
22 | | payment to be rolled into. The accelerated pension benefit |
23 | | payment under this Section may be subject to withholding or |
24 | | payment of applicable taxes, but to the extent permitted by |
25 | | federal law, a person who receives an accelerated pension |
26 | | benefit payment under this Section must direct the System to |
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1 | | pay all of that payment as a rollover into another retirement |
2 | | plan or account qualified under the Internal Revenue Code of |
3 | | 1986, as amended. |
4 | | (f) Before January 1, 2019 and every January 1 thereafter, |
5 | | the Board shall certify to the Illinois Finance Authority and |
6 | | the General Assembly the amount by which the total amount of |
7 | | accelerated pension benefit payments made under this Section |
8 | | exceed the amount appropriated to the System for the purpose of |
9 | | making those payments. |
10 | | (g) The Board shall adopt any rules necessary to implement |
11 | | this Section. |
12 | | (h) No provision of this Section shall be interpreted in a |
13 | | way that would cause the applicable System to cease to be a |
14 | | qualified plan under the Internal Revenue Code of 1986. |
15 | | (i) Notwithstanding any other provision of this Section, in |
16 | | no case shall the total amount of accelerated pension benefit |
17 | | payments paid under this Section, Section 14-147.5, and Section |
18 | | 15-185.5, and Section 16-190.5 cause the Illinois Finance |
19 | | Authority to issue more than the $250,000,000 of State Pension |
20 | | Obligation Acceleration Bonds authorized in subsection (c-5) |
21 | | of 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, |
24 | | which has been held unconstitutional)
|
25 | | Sec. 16-203. Application and expiration of new benefit |
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1 | | increases. |
2 | | (a) As used in this Section, "new benefit increase" means |
3 | | an increase in the amount of any benefit provided under this |
4 | | Article, or an expansion of the conditions of eligibility for |
5 | | any benefit under this Article, that results from an amendment |
6 | | to this Code that takes effect after June 1, 2005 (the |
7 | | effective date of Public Act 94-4). "New benefit increase", |
8 | | however, does not include any benefit increase resulting from |
9 | | the changes made to this Article by Public Act 95-910 or this |
10 | | amendatory Act of the 100th 95th General Assembly. |
11 | | (b) Notwithstanding any other provision of this Code or any |
12 | | subsequent amendment to this Code, every new benefit increase |
13 | | is subject to this Section and shall be deemed to be granted |
14 | | only in conformance with and contingent upon compliance with |
15 | | the provisions of this Section.
|
16 | | (c) The Public Act enacting a new benefit increase must |
17 | | identify and provide for payment to the System of additional |
18 | | funding at least sufficient to fund the resulting annual |
19 | | increase in cost to the System as it accrues. |
20 | | Every new benefit increase is contingent upon the General |
21 | | Assembly providing the additional funding required under this |
22 | | subsection. The Commission on Government Forecasting and |
23 | | Accountability shall analyze whether adequate additional |
24 | | funding has been provided for the new benefit increase and |
25 | | shall report its analysis to the Public Pension Division of the |
26 | | Department of Insurance Financial and Professional Regulation . |
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1 | | A new benefit increase created by a Public Act that does not |
2 | | include the additional funding required under this subsection |
3 | | is null and void. If the Public Pension Division determines |
4 | | that the additional funding provided for a new benefit increase |
5 | | under this subsection is or has become inadequate, it may so |
6 | | certify to the Governor and the State Comptroller and, in the |
7 | | absence of corrective action by the General Assembly, the new |
8 | | benefit increase shall expire at the end of the fiscal year in |
9 | | which the certification is made.
|
10 | | (d) Every new benefit increase shall expire 5 years after |
11 | | its effective date or on such earlier date as may be specified |
12 | | in the language enacting the new benefit increase or provided |
13 | | under subsection (c). This does not prevent the General |
14 | | Assembly from extending or re-creating a new benefit increase |
15 | | by law. |
16 | | (e) Except as otherwise provided in the language creating |
17 | | the new benefit increase, a new benefit increase that expires |
18 | | under this Section continues to apply to persons who applied |
19 | | and qualified for the affected benefit while the new benefit |
20 | | increase was in effect and to the affected beneficiaries and |
21 | | alternate payees of such persons, but does not apply to any |
22 | | other person, including without limitation a person who |
23 | | continues in service after the expiration date and did not |
24 | | apply and qualify for the affected benefit while the new |
25 | | benefit increase was in effect.
|
26 | | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) |
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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 |
4 | | a voluntary defined contribution plan for up to 5% of eligible |
5 | | active Tier 1 employees. The System shall determine the 5% cap |
6 | | by the number of active Tier 1 employees on the effective date |
7 | | of this Section. The defined contribution plan developed under |
8 | | this Section shall be a plan that aggregates employer and |
9 | | employee contributions in individual participant accounts |
10 | | which, after meeting any other requirements, are used for |
11 | | payouts after retirement in accordance with this Section and |
12 | | any other applicable laws. |
13 | | As used in this Section, "defined benefit plan" means the |
14 | | retirement plan available under this Article to Tier 1 |
15 | | employees who have not made the election authorized under this |
16 | | Section. |
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 |
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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 |
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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 |
25 | | System on the effective date of this Section are eligible to |
26 | | participate in the defined contribution plan. Participation in |
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1 | | the defined contribution plan shall be limited to the first 5% |
2 | | of eligible persons who elect to participate. The election to |
3 | | participate in the defined contribution plan is voluntary and |
4 | | irrevocable. |
5 | | (c) An eligible Tier 1 employee may irrevocably elect to |
6 | | participate in the defined contribution plan by filing with the |
7 | | System a written application to participate that is received by |
8 | | the System prior to its determination that 5% of eligible |
9 | | persons have elected to participate in the defined contribution |
10 | | plan. |
11 | | When the System first determines that 5% of eligible |
12 | | persons have elected to participate in the defined contribution |
13 | | plan, the System shall provide notice to previously eligible |
14 | | employees that the plan is no longer available and shall cease |
15 | | accepting applications to participate. |
16 | | (d) The System shall make a good faith effort to contact |
17 | | each active Tier 1 employee who is eligible to participate in |
18 | | the defined contribution plan. The System shall mail |
19 | | information describing the option to join the defined |
20 | | contribution plan to each of these employees to his or her last |
21 | | known address on file with the System. If the employee is not |
22 | | responsive to other means of contact, it is sufficient for the |
23 | | System to publish the details of the option on its website. |
24 | | Upon request for further information describing the |
25 | | option, the System shall provide employees with information |
26 | | from the System before exercising the option to join the plan, |
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1 | | including information on the impact to their vested benefits or |
2 | | non-vested service. The individual consultation shall include |
3 | | projections of the member's defined benefits at retirement or |
4 | | earlier termination of service and the value of the member's |
5 | | account at retirement or earlier termination of service. The |
6 | | System shall not provide advice or counseling with respect to |
7 | | whether the employee should exercise the option. The System |
8 | | shall inform Tier 1 employees who are eligible to participate |
9 | | in the defined contribution plan that they may also wish to |
10 | | obtain information and counsel relating to their option from |
11 | | any other available source, including but not limited to labor |
12 | | organizations, private counsel, and financial advisors. |
13 | | (e) In no event shall the System, its staff, its authorized |
14 | | representatives, or the Board be liable for any information |
15 | | given to an employee under this Section. The System may |
16 | | coordinate with the Illinois Department of Central Management |
17 | | Services and other retirement systems administering a defined |
18 | | contribution plan in accordance with this amendatory Act of the |
19 | | 100th General Assembly to provide information concerning the |
20 | | impact of the option set forth in this Section. |
21 | | (f) Notwithstanding any other provision of this Section, no |
22 | | person shall begin participating in the defined contribution |
23 | | plan until it has attained qualified plan status and received |
24 | | all necessary approvals from the U.S. Internal Revenue Service. |
25 | | (g) The System shall report on its progress under this |
26 | | Section, including the available details of the defined |
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1 | | contribution plan and the System's plans for informing eligible |
2 | | Tier 1 employees about the plan, to the Governor and the |
3 | | General Assembly on or before January 15, 2018. |
4 | | (h) The intent of this amendatory Act of the 100th General |
5 | | Assembly is to ensure that the State's normal cost of |
6 | | participation in the defined contribution plan is similar, and |
7 | | if possible equal, to the State's normal cost of participation |
8 | | in the defined benefit plan, unless a lower State's normal cost |
9 | | is necessary to ensure cost neutrality. |
10 | | (i) If Section 16-122.9 is determined to be |
11 | | unconstitutional or otherwise invalid by a final unappealable |
12 | | decision of an Illinois court or a court of competent |
13 | | jurisdiction, then this Section shall not take effect and is |
14 | | repealed by operation of law. |
15 | | (40 ILCS 5/16-206.1 new) |
16 | | Sec. 16-206.1. Defined contribution plan; termination. If |
17 | | the defined contribution plan is terminated or becomes |
18 | | inoperative pursuant to law, then each participant in the plan |
19 | | shall automatically be deemed to have been a contributing Tier |
20 | | 1 employee in the System's defined benefit plan during the time |
21 | | in which he or she participated in the defined contribution |
22 | | plan, and for that purpose the System shall be entitled to |
23 | | recover the amounts in the participant's defined contribution |
24 | | accounts. |
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1 | | (40 ILCS 5/17-106.05 new) |
2 | | Sec. 17-106.05. Tier 1 employee. "Tier 1 employee": A
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3 | | teacher under this Article who first became a member or
|
4 | | participant before January 1, 2011 under any reciprocal
|
5 | | retirement system or pension fund established under this Code
|
6 | | other than a retirement system or pension fund established
|
7 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
|
8 | | the purposes of the election under Section 17-115.5, "Tier 1 |
9 | | employee" does
not include a teacher under this Article who |
10 | | would qualify as a
Tier 1 employee but who has made an |
11 | | irrevocable election on or
before June 1, 2017 to retire from |
12 | | service pursuant to the terms of a collective bargaining |
13 | | agreement in effect on June 1,
2017, excluding any extension, |
14 | | amendment, or renewal of that
agreement on or after that date, |
15 | | and 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 |
18 | | form that qualifies as "average salary" or "annual rate of |
19 | | salary" for purposes of paragraph (1) of subsection (c) of |
20 | | Section 17-116 and "salary" for payroll deduction purposes |
21 | | under 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
|
24 | | offered by an employer for service as a Tier 1 employee under
|
25 | | this Article pursuant to the condition set forth in subsection |
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1 | | (c) of
Section 17-115.5 and accepted under that condition by a |
2 | | Tier 1 employee who has made
the election under paragraph (2) |
3 | | of 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
|
6 | | in income" means an increase in income in any form offered by
|
7 | | an employer to a Tier 1 employee for service under this Article
|
8 | | after June 30, 2018 that qualifies as "salary", as defined in
|
9 | | Section 17-113.4, or would qualify as "salary" but for the fact
|
10 | | that it was offered to and accepted by a Tier 1 employee under |
11 | | the condition set forth in subsection (c) of
Section 17-115.5. |
12 | | The term "future increase in income" does not
include an |
13 | | increase in income in any form that is paid to a
Tier 1 |
14 | | employee under an employment contract or a collective
|
15 | | bargaining agreement that is in effect on the effective date of
|
16 | | this Section, but does include an increase in income in any
|
17 | | form pursuant to an extension, amendment, or renewal of any
|
18 | | such employment contract or collective bargaining agreement on
|
19 | | or 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 |
23 | | election either: |
24 | | (1) to agree to delay his or her eligibility for |
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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 |
9 | | made by each active Tier 1 employee no earlier than January 1, |
10 | | 2018 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 |
21 | | required election under this subsection within the time |
22 | | specified, then the employee shall be deemed to have made the |
23 | | election under paragraph (2) of this subsection. |
24 | | (a-5) If this Section is enjoined or stayed by an Illinois |
25 | | court or a court of competent jurisdiction pending the entry of |
26 | | a final and unappealable decision, and this Section is |
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1 | | determined to be constitutional or otherwise valid by a final |
2 | | unappealable decision of an Illinois court or a court of |
3 | | competent jurisdiction, then the election procedure set forth |
4 | | in subsection (a) of this Section shall commence on the 180th |
5 | | calendar day after the date of the issuance of the final |
6 | | unappealable decision and shall conclude at the end of the |
7 | | 270th calendar day after that date. |
8 | | (a-10) All elections under subsection (a) that are made or |
9 | | deemed to be made before July 1, 2018 shall take effect on July |
10 | | 1, 2018. Elections that are made or deemed to be made on or |
11 | | after July 1, 2018 shall take effect on the first day of the |
12 | | month following the month in which the election is made or |
13 | | deemed to be made. |
14 | | (b) As adequate and legal consideration provided under this |
15 | | amendatory Act of the 100th General Assembly for making an |
16 | | election under paragraph (1) of subsection (a) of this Section, |
17 | | an employer shall be expressly and irrevocably prohibited from |
18 | | offering any future increases in income to a Tier 1 employee |
19 | | who has made an election under paragraph (1) of subsection (a) |
20 | | of this Section on the condition of not constituting salary |
21 | | under Section 17-113.4. |
22 | | As adequate and legal consideration provided under this |
23 | | amendatory Act of the 100th General Assembly for making an |
24 | | election under paragraph (1) of subsection (a) of this Section, |
25 | | each Tier 1 employee who has made an election under paragraph |
26 | | (1) of subsection (a) of this Section shall receive a |
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1 | | consideration payment equal to 10% of the contributions made by |
2 | | or on behalf of the employee under Section 17-130 before the |
3 | | effective date of that election. The Fund shall certify to the |
4 | | State Comptroller the amount of the consideration payment to |
5 | | the Tier 1 employee, and the State Comptroller shall make the |
6 | | consideration payment to the Tier 1 employee. |
7 | | (c) A Tier 1 employee who makes the election under |
8 | | paragraph (2) of subsection (a) of this Section shall not be |
9 | | subject to paragraph (1) of subsection (a) of this Section. |
10 | | However, each future increase in income offered by an employer |
11 | | under this Article to a Tier 1 employee who has made the |
12 | | election under paragraph (2) of subsection (a) of this Section |
13 | | shall be offered by the employer expressly and irrevocably on |
14 | | the condition of not constituting salary under Section 17-113.4 |
15 | | and that the Tier 1 employee's acceptance of the offered future |
16 | | increase in income shall constitute his or her agreement to |
17 | | that condition. |
18 | | (d) The Fund shall make a good faith effort to contact each |
19 | | Tier 1 employee subject to this Section. The Fund shall mail |
20 | | information describing the required election to each Tier 1 |
21 | | employee by United States Postal Service mail to his or her |
22 | | last known address on file with the Fund. If the Tier 1 |
23 | | employee is not responsive to other means of contact, it is |
24 | | sufficient for the Fund to publish the details of any required |
25 | | elections on its website or to publish those details in a |
26 | | regularly published newsletter or other existing public forum. |
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1 | | Tier 1 employees who are subject to this Section shall be |
2 | | provided with an election packet containing information |
3 | | regarding their options, as well as the forms necessary to make |
4 | | the required election. Upon request, the Fund shall offer Tier |
5 | | 1 employees an opportunity to receive information from the Fund |
6 | | before making the required election. The information may |
7 | | consist of video materials, group presentations, individual |
8 | | consultation with a member or authorized representative of the |
9 | | Fund in person or by telephone or other electronic means, or |
10 | | any combination of those methods. The Fund shall not provide |
11 | | advice or counseling with respect to which election a Tier 1 |
12 | | employee should make or specific to the legal or tax |
13 | | circumstances of or consequences to the Tier 1 employee. |
14 | | The Fund shall inform Tier 1 employees in the election |
15 | | packet required under this subsection that the Tier 1 employee |
16 | | may also wish to obtain information and counsel relating to the |
17 | | election required under this Section from any other available |
18 | | source, including, but not limited to, labor organizations and |
19 | | private counsel. |
20 | | In no event shall the Fund, its staff, or the Board be held |
21 | | liable for any information given to a member regarding the |
22 | | elections under this Section. The Fund shall coordinate with |
23 | | the Illinois Department of Central Management Services and each |
24 | | other retirement system administering an election in |
25 | | accordance with this amendatory Act of the 100th General |
26 | | Assembly to provide information concerning the impact of the |
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1 | | election set forth in this Section. |
2 | | (e) Notwithstanding any other provision of law, an employer |
3 | | under this Article is required to offer each future increase in |
4 | | income expressly and irrevocably on the condition of not |
5 | | constituting "salary" under Section 17-113.4 to any Tier 1 |
6 | | employee who has made an election under paragraph (2) of |
7 | | subsection (a) of this Section. The offer shall also provide |
8 | | that the Tier 1 employee's acceptance of the offered future |
9 | | increase in income shall constitute his or her agreement to the |
10 | | condition set forth in this subsection. |
11 | | For purposes of legislative intent, the condition set forth |
12 | | in this subsection shall be construed in a manner that ensures |
13 | | that the condition is not violated or circumvented through any |
14 | | contrivance of any kind. |
15 | | (f) A member's election under this Section is not a |
16 | | prohibited election under subdivision (j)(1) of Section 1-119 |
17 | | of this Code. |
18 | | (g) No provision of this Section shall be interpreted in a |
19 | | way that would cause the Fund to cease to be a qualified plan |
20 | | under Section 401(a) of the Internal Revenue Code of 1986. |
21 | | (h) If an election created by this amendatory Act in any |
22 | | other Article of this Code or any change deriving from that |
23 | | election is determined to be unconstitutional or otherwise |
24 | | invalid by a final unappealable decision of an Illinois court |
25 | | or a court of competent jurisdiction, the invalidity of that |
26 | | provision shall not in any way affect the validity of this |
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1 | | Section or the changes deriving from the election required |
2 | | under 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 |
6 | | of age 55,
or who thereafter attains age 55 shall be entitled |
7 | | to a service retirement
pension upon or after attainment of age |
8 | | 55; and each teacher in service on or
after July 1, 1971, with |
9 | | 5 or more but less than 20 years of service shall be
entitled |
10 | | to receive a service retirement pension upon or after |
11 | | attainment of
age 62.
|
12 | | (b) The service retirement pension
for a teacher who |
13 | | retires on or after June 25, 1971, at age
60 or over, shall be |
14 | | calculated 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 |
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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
|
6 | | following 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 |
|