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1 | | AN ACT concerning State government.
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2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Public Labor Relations Act is |
5 | | amended by changing Sections 10 and 15 and by adding Section |
6 | | 7.6 as follows: |
7 | | (5 ILCS 315/7.6 new) |
8 | | Sec. 7.6. No collective bargaining or interest arbitration |
9 | | regarding certain changes to the Illinois Pension Code. |
10 | | (a) Notwithstanding any other provision of this Act, |
11 | | employers shall not be required to bargain over matters |
12 | | affected by the changes, the impact of the changes, and the |
13 | | implementation of the changes to Article 14, 15, 16, or 17 of |
14 | | the Illinois Pension Code made by the addition of Section |
15 | | 14-106.5, 15-132.9, 16-122.9, or 17-115.5 of the Illinois |
16 | | Pension Code, which are deemed to be prohibited subjects of |
17 | | bargaining. Notwithstanding any provision of this Act, the |
18 | | changes, impact of the changes, or implementation of the |
19 | | changes to Article 14, 15, 16, or 17 of the Illinois Pension |
20 | | Code made by the addition of Section 14-106.5, 15-132.9, |
21 | | 16-122.9, or 17-115.5 of the Illinois Pension Code shall not be |
22 | | subject to interest arbitration or any award issued pursuant to |
23 | | interest arbitration. The provisions of this Section shall not |
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1 | | apply to an employment contract or collective bargaining |
2 | | agreement that is in effect on the effective date of this |
3 | | amendatory Act of the 100th General Assembly. However, any such |
4 | | contract or agreement that is modified, amended, renewed, or |
5 | | superseded after the effective date of this amendatory Act of |
6 | | the 100th General Assembly shall be subject to the provisions |
7 | | of this Section. Each employer with active employees |
8 | | participating in a retirement system or pension fund |
9 | | established under Article 14, 15, 16, or 17 of the Illinois |
10 | | Pension Code shall comply with and be subject to the provisions |
11 | | of this amendatory Act of the 100th General Assembly. The |
12 | | provisions of this Section shall not apply to the ability of |
13 | | any employer and employee representative to bargain |
14 | | collectively with regard to the pick up of employee |
15 | | contributions pursuant to Section 14-133.1, 15-157.1, |
16 | | 16-152.1, 17-130.1, or 17-130.2 of the Illinois Pension Code. |
17 | | (b) Subject to and except for the matters set forth in |
18 | | subsection (a) of this Section that are deemed prohibited |
19 | | subjects of bargaining, nothing in this Section shall be |
20 | | construed as otherwise limiting any of the obligations and |
21 | | requirements applicable to employers under any of the |
22 | | provisions of this Act, including, but not limited to, the |
23 | | requirement to bargain collectively with regard to policy |
24 | | matters directly affecting wages, hours, and terms and |
25 | | conditions of employment as well as the impact thereon upon |
26 | | request by employee representatives. Subject to and except for |
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1 | | the matters set forth in subsection (a) of this Section that |
2 | | are deemed prohibited subjects of bargaining, nothing in this |
3 | | Section shall be construed as otherwise limiting any of the |
4 | | rights of employees or employee representatives under the |
5 | | provisions of this Act. |
6 | | (c) In case of any conflict between this Section and any |
7 | | other provisions of this Act or any other law, the provisions |
8 | | of this Section shall control.
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9 | | (5 ILCS 315/10) (from Ch. 48, par. 1610)
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10 | | Sec. 10. Unfair labor practices.
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11 | | (a) It shall be an unfair labor practice
for an employer or |
12 | | its agents:
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13 | | (1) to interfere with, restrain or coerce public |
14 | | employees in the
exercise of the rights guaranteed in this |
15 | | Act or to dominate or interfere
with the formation, |
16 | | existence or administration of any labor organization
or |
17 | | contribute financial or other support to it; provided, an |
18 | | employer shall
not be prohibited from permitting employees |
19 | | to confer with him during
working hours without loss of |
20 | | time or pay;
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21 | | (2) to discriminate in regard to hire or tenure of |
22 | | employment or any term
or condition of employment in order |
23 | | to encourage or discourage membership
in or other support |
24 | | for any labor organization. Nothing in this Act or any
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25 | | other law precludes a public employer from making an |
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1 | | agreement with a labor
organization to require as a |
2 | | condition of employment the payment of a fair
share under |
3 | | paragraph (e) of Section 6;
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4 | | (3) to discharge or otherwise discriminate against a |
5 | | public employee because
he has signed or filed an |
6 | | affidavit, petition or charge or provided any
information |
7 | | or testimony under this Act;
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8 | | (4) subject to and except as provided in Section 7.6, |
9 | | to refuse to bargain collectively in good faith with a |
10 | | labor
organization which is the exclusive representative |
11 | | of public employees in
an appropriate unit, including, but |
12 | | not limited to, the discussing of
grievances with the |
13 | | exclusive representative; however, no actions of the |
14 | | employer taken to implement or otherwise comply with the |
15 | | provisions of subsection (a) of Section 7.6 shall |
16 | | constitute or give rise to an unfair labor practice under |
17 | | this Act;
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18 | | (5) to violate any of the rules and regulations |
19 | | established by the Board
with jurisdiction over them |
20 | | relating to the conduct of representation elections
or the |
21 | | conduct affecting the representation elections;
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22 | | (6) to expend or cause the expenditure of public funds |
23 | | to any external
agent, individual, firm, agency, |
24 | | partnership or association in any attempt
to influence the |
25 | | outcome of representational elections held pursuant to
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26 | | Section 9 of this Act; provided, that nothing in this |
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1 | | subsection shall be
construed to limit an employer's right |
2 | | to internally communicate with its
employees as provided in |
3 | | subsection (c) of this Section, to be represented
on any |
4 | | matter pertaining to unit determinations, unfair labor |
5 | | practice
charges or pre-election conferences in any formal |
6 | | or informal proceeding
before the Board, or to seek or |
7 | | obtain advice from legal counsel.
Nothing in this paragraph |
8 | | shall be construed to prohibit an employer from
expending |
9 | | or causing the expenditure of public funds on, or seeking |
10 | | or
obtaining services or advice from, any organization, |
11 | | group, or association
established by and including public |
12 | | or educational employers, whether
covered by this Act, the |
13 | | Illinois Educational Labor Relations Act or the
public |
14 | | employment labor relations law of any other state or the |
15 | | federal
government, provided that such services or advice |
16 | | are generally available
to the membership of the |
17 | | organization, group or association, and are not
offered |
18 | | solely in an attempt to influence the outcome of a |
19 | | particular
representational election; or
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20 | | (7) to refuse to reduce a collective bargaining |
21 | | agreement to writing
or to refuse to sign such agreement.
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22 | | (b) It shall be an unfair labor practice for a labor |
23 | | organization or its agents:
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24 | | (1) to restrain or coerce public employees in the |
25 | | exercise of the rights
guaranteed in this Act, provided, |
26 | | (i) that this paragraph shall
not impair the right of a |
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1 | | labor organization to prescribe its own rules
with respect |
2 | | to the acquisition or retention of membership therein or |
3 | | the
determination of fair share payments and (ii) that a |
4 | | labor organization
or its agents shall commit an unfair |
5 | | labor practice under this paragraph in
duty of fair |
6 | | representation cases only by intentional misconduct in
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7 | | representing employees under this Act;
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8 | | (2) to restrain or coerce a public employer in the |
9 | | selection of his
representatives for the purposes of |
10 | | collective bargaining or the settlement
of grievances; or
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11 | | (3) to cause, or attempt to cause, an employer to |
12 | | discriminate against
an employee in violation of |
13 | | subsection (a)(2);
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14 | | (4) to refuse to bargain collectively in good faith |
15 | | with a public employer,
if it has been designated in |
16 | | accordance with the provisions of this Act
as the exclusive |
17 | | representative of public employees in an appropriate unit;
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18 | | (5) to violate any of the rules and regulations |
19 | | established by the
boards with jurisdiction over them |
20 | | relating to the conduct of
representation elections or the |
21 | | conduct affecting the representation elections;
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22 | | (6) to discriminate against any employee because he has |
23 | | signed or filed
an affidavit, petition or charge or |
24 | | provided any information or testimony
under this Act;
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25 | | (7) to picket or cause to be picketed, or threaten to |
26 | | picket or cause
to be picketed, any public employer where |
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1 | | an object thereof is forcing or
requiring an employer to |
2 | | recognize or bargain with a labor organization
of the |
3 | | representative of its employees, or forcing or requiring |
4 | | the employees
of an employer to accept or select such labor |
5 | | organization as their collective
bargaining |
6 | | representative, unless such labor organization is |
7 | | currently
certified as the representative of such |
8 | | employees:
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9 | | (A) where the employer has lawfully recognized in |
10 | | accordance with this
Act any labor organization and a |
11 | | question concerning representation may
not |
12 | | appropriately be raised under Section 9 of this Act;
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13 | | (B) where within the preceding 12 months a valid |
14 | | election under Section
9 of this Act has been |
15 | | conducted; or
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16 | | (C) where such picketing has been conducted |
17 | | without a petition under Section
9 being filed within a |
18 | | reasonable period of time not to exceed 30 days from
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19 | | the commencement of such picketing; provided that when |
20 | | such a petition has
been filed the Board shall |
21 | | forthwith, without regard to the provisions of
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22 | | subsection (a) of Section 9 or the absence of a showing |
23 | | of a substantial
interest on the part of the labor |
24 | | organization, direct an election in such
unit as the |
25 | | Board finds to be appropriate and shall certify the |
26 | | results
thereof; provided further, that nothing in |
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1 | | this subparagraph shall be construed
to prohibit any |
2 | | picketing or other publicity for the purpose of |
3 | | truthfully
advising the public that an employer does |
4 | | not employ members of, or have a
contract with, a labor |
5 | | organization unless an effect of such picketing is
to |
6 | | induce any individual employed by any other person in |
7 | | the course of his
employment, not to pick up, deliver, |
8 | | or transport any goods or not to
perform any services; |
9 | | or
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10 | | (8) to refuse to reduce a collective bargaining |
11 | | agreement to writing
or to refuse to sign such agreement.
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12 | | (c) The expressing of any views, argument, or opinion or |
13 | | the
dissemination thereof, whether in written, printed, |
14 | | graphic, or visual
form, shall not constitute or be evidence of |
15 | | an unfair labor practice under
any of the provisions of this |
16 | | Act, if such expression contains no threat of
reprisal or force |
17 | | or promise of benefit.
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18 | | (Source: P.A. 86-412; 87-736 .)
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19 | | (5 ILCS 315/15) (from Ch. 48, par. 1615)
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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. 15. Act Takes Precedence. |
23 | | (a) In case of any conflict between the
provisions of this |
24 | | Act and any other law (other than Section 5 of the State |
25 | | Employees Group Insurance Act of 1971 and other than the |
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1 | | changes made to the Illinois Pension Code by this amendatory |
2 | | Act of the 96th General Assembly), executive order or |
3 | | administrative
regulation relating to wages, hours and |
4 | | conditions of employment and employment
relations, the |
5 | | provisions of this Act or any collective bargaining agreement
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6 | | negotiated thereunder shall prevail and control.
Nothing in |
7 | | this Act shall be construed to replace or diminish the
rights |
8 | | of employees established by Sections 28 and 28a of the |
9 | | Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 |
10 | | of the Regional Transportation
Authority Act. The provisions of |
11 | | this Act are subject to Section 5 of the State Employees Group |
12 | | Insurance Act of 1971. Nothing in this Act shall be construed |
13 | | to replace the necessity of complaints against a sworn peace |
14 | | officer, as defined in Section 2(a) of the Uniform Peace |
15 | | Officer Disciplinary Act, from having a complaint supported by |
16 | | a sworn affidavit.
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17 | | (b) Except as provided in subsection (a) above, any |
18 | | collective bargaining
contract between a public employer and a |
19 | | labor organization executed pursuant
to this Act shall |
20 | | supersede any contrary statutes, charters, ordinances, rules
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21 | | or regulations relating to wages, hours and conditions of |
22 | | employment and
employment relations adopted by the public |
23 | | employer or its agents. Any collective
bargaining agreement |
24 | | entered into prior to the effective date of this Act
shall |
25 | | remain in full force during its duration.
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26 | | (c) It is the public policy of this State, pursuant to |
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1 | | paragraphs (h)
and (i) of Section 6 of Article VII of the |
2 | | Illinois Constitution, that the
provisions of this Act are the |
3 | | exclusive exercise by the State of powers
and functions which |
4 | | might otherwise be exercised by home rule units. Such
powers |
5 | | and functions may not be exercised concurrently, either |
6 | | directly
or indirectly, by any unit of local government, |
7 | | including any home rule
unit, except as otherwise authorized by |
8 | | this Act. |
9 | | (d) Notwithstanding any other provision of law, no |
10 | | collective bargaining agreement entered into, renewed, or |
11 | | extended after the effective date of this amendatory Act of the |
12 | | 100th General Assembly or any arbitration award issued under |
13 | | such collective bargaining agreement may violate or conflict |
14 | | with the changes made by this amendatory Act of the 100th |
15 | | General Assembly. |
16 | | (Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .) |
17 | | Section 10. The State Employees Group Insurance Act of 1971 |
18 | | is amended by changing Sections 3 and 10 as follows:
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19 | | (5 ILCS 375/3) (from Ch. 127, par. 523)
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20 | | Sec. 3. Definitions. Unless the context otherwise |
21 | | requires, the
following words and phrases as used in this Act |
22 | | shall have the following
meanings. The Department may define |
23 | | these and other words and phrases
separately for the purpose of |
24 | | implementing specific programs providing benefits
under this |
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1 | | Act.
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2 | | (a) "Administrative service organization" means any |
3 | | person, firm or
corporation experienced in the handling of |
4 | | claims which is
fully qualified, financially sound and capable |
5 | | of meeting the service
requirements of a contract of |
6 | | administration executed with the Department.
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7 | | (b) "Annuitant" means (1) an employee who retires, or has |
8 | | retired,
on or after January 1, 1966 on an immediate annuity |
9 | | under the provisions
of Articles 2, 14 (including an employee |
10 | | who has elected to receive an alternative retirement |
11 | | cancellation payment under Section 14-108.5 of the Illinois |
12 | | Pension Code in lieu of an annuity or who meets the criteria |
13 | | for retirement, but in lieu of receiving an annuity under that |
14 | | Article has elected to receive an accelerated pension benefit |
15 | | payment under Section 14-147.5 of that Article ), 15 (including |
16 | | an employee who has retired under the optional
retirement |
17 | | program established under Section 15-158.2 or who meets the |
18 | | criteria for retirement but in lieu of receiving an annuity |
19 | | under that Article has elected to receive an accelerated |
20 | | pension benefit payment under Section 15-185.5 of the Article ),
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21 | | paragraphs (2), (3), or (5) of Section 16-106 (including an |
22 | | employee who meets the criteria for retirement, but in lieu of |
23 | | receiving an annuity under that Article has elected to receive |
24 | | an accelerated pension benefit payment under Section 16-190.5 |
25 | | of the Illinois Pension Code) , or
Article 18 of the Illinois |
26 | | Pension Code; (2) any person who was receiving
group insurance |
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1 | | coverage under this Act as of March 31, 1978 by
reason of his |
2 | | status as an annuitant, even though the annuity in relation
to |
3 | | which such coverage was provided is a proportional annuity |
4 | | based on less
than the minimum period of service required for a |
5 | | retirement annuity in
the system involved; (3) any person not |
6 | | otherwise covered by this Act
who has retired as a |
7 | | participating member under Article 2 of the Illinois
Pension |
8 | | Code but is ineligible for the retirement annuity under Section
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9 | | 2-119 of the Illinois Pension Code; (4) the spouse of any |
10 | | person who
is receiving a retirement annuity under Article 18 |
11 | | of the Illinois Pension
Code and who is covered under a group |
12 | | health insurance program sponsored
by a governmental employer |
13 | | other than the State of Illinois and who has
irrevocably |
14 | | elected to waive his or her coverage under this Act and to have
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15 | | his or her spouse considered as the "annuitant" under this Act |
16 | | and not as
a "dependent"; or (5) an employee who retires, or |
17 | | has retired, from a
qualified position, as determined according |
18 | | to rules promulgated by the
Director, under a qualified local |
19 | | government, a qualified rehabilitation
facility, a qualified |
20 | | domestic violence shelter or service, or a qualified child |
21 | | advocacy center. (For definition
of "retired employee", see (p) |
22 | | post).
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23 | | (b-5) (Blank).
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24 | | (b-6) (Blank).
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25 | | (b-7) (Blank).
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26 | | (c) "Carrier" means (1) an insurance company, a corporation |
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1 | | organized
under the Limited Health Service Organization Act or |
2 | | the Voluntary Health
Services Plan Act, a partnership, or other |
3 | | nongovernmental organization,
which is authorized to do group |
4 | | life or group health insurance business in
Illinois, or (2) the |
5 | | State of Illinois as a self-insurer.
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6 | | (d) "Compensation" means salary or wages payable on a |
7 | | regular
payroll by the State Treasurer on a warrant of the |
8 | | State Comptroller out
of any State, trust or federal fund, or |
9 | | by the Governor of the State
through a disbursing officer of |
10 | | the State out of a trust or out of
federal funds, or by any |
11 | | Department out of State, trust, federal or
other funds held by |
12 | | the State Treasurer or the Department, to any person
for |
13 | | personal services currently performed, and ordinary or |
14 | | accidental
disability benefits under Articles 2, 14, 15 |
15 | | (including ordinary or accidental
disability benefits under |
16 | | the optional retirement program established under
Section |
17 | | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or |
18 | | Article 18 of the Illinois Pension Code, for disability
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19 | | incurred after January 1, 1966, or benefits payable under the |
20 | | Workers'
Compensation or Occupational Diseases Act or benefits |
21 | | payable under a sick
pay plan established in accordance with |
22 | | Section 36 of the State Finance Act.
"Compensation" also means |
23 | | salary or wages paid to an employee of any
qualified local |
24 | | government, qualified rehabilitation facility,
qualified |
25 | | domestic violence shelter or service, or qualified child |
26 | | advocacy center.
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1 | | (e) "Commission" means the State Employees Group Insurance |
2 | | Advisory
Commission authorized by this Act. Commencing July 1, |
3 | | 1984, "Commission"
as used in this Act means the Commission on |
4 | | Government Forecasting and Accountability as
established by |
5 | | the Legislative Commission Reorganization Act of 1984.
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6 | | (f) "Contributory", when referred to as contributory |
7 | | coverage, shall
mean optional coverages or benefits elected by |
8 | | the member toward the cost of
which such member makes |
9 | | contribution, or which are funded in whole or in part
through |
10 | | the acceptance of a reduction in earnings or the foregoing of |
11 | | an
increase in earnings by an employee, as distinguished from |
12 | | noncontributory
coverage or benefits which are paid entirely by |
13 | | the State of Illinois
without reduction of the member's salary.
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14 | | (g) "Department" means any department, institution, board,
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15 | | commission, officer, court or any agency of the State |
16 | | government
receiving appropriations and having power to |
17 | | certify payrolls to the
Comptroller authorizing payments of |
18 | | salary and wages against such
appropriations as are made by the |
19 | | General Assembly from any State fund, or
against trust funds |
20 | | held by the State Treasurer and includes boards of
trustees of |
21 | | the retirement systems created by Articles 2, 14, 15, 16 and
18 |
22 | | of the Illinois Pension Code. "Department" also includes the |
23 | | Illinois
Comprehensive Health Insurance Board, the Board of |
24 | | Examiners established under
the Illinois Public Accounting |
25 | | Act, and the Illinois Finance Authority.
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26 | | (h) "Dependent", when the term is used in the context of |
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1 | | the health
and life plan, means a member's spouse and any child |
2 | | (1) from
birth to age 26 including an adopted child, a child |
3 | | who lives with the
member from the time of the filing of a |
4 | | petition for adoption until entry
of an order of adoption, a |
5 | | stepchild or adjudicated child, or a child who lives with the |
6 | | member
if such member is a court appointed guardian of the |
7 | | child or (2)
age 19 or over who has a mental or physical |
8 | | disability from a cause originating prior to the age of 19 (age |
9 | | 26 if enrolled as an adult child dependent). For
the health |
10 | | plan only, the term "dependent" also includes (1) any person
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11 | | enrolled prior to the effective date of this Section who is |
12 | | dependent upon
the member to the extent that the member may |
13 | | claim such person as a
dependent for income tax deduction |
14 | | purposes and (2) any person who
has received after June 30, |
15 | | 2000 an organ transplant and who is financially
dependent upon |
16 | | the member and eligible to be claimed as a dependent for income
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17 | | tax purposes. A member requesting to cover any dependent must |
18 | | provide documentation as requested by the Department of Central |
19 | | Management Services and file with the Department any and all |
20 | | forms required by the Department.
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21 | | (i) "Director" means the Director of the Illinois |
22 | | Department of Central
Management Services.
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23 | | (j) "Eligibility period" means the period of time a member |
24 | | has to
elect enrollment in programs or to select benefits |
25 | | without regard to
age, sex or health.
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26 | | (k) "Employee" means and includes each officer or employee |
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1 | | in the
service of a department who (1) receives his |
2 | | compensation for
service rendered to the department on a |
3 | | warrant issued pursuant to a payroll
certified by a department |
4 | | or on a warrant or check issued and drawn by a
department upon |
5 | | a trust, federal or other fund or on a warrant issued
pursuant |
6 | | to a payroll certified by an elected or duly appointed officer
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7 | | of the State or who receives payment of the performance of |
8 | | personal
services on a warrant issued pursuant to a payroll |
9 | | certified by a
Department and drawn by the Comptroller upon the |
10 | | State Treasurer against
appropriations made by the General |
11 | | Assembly from any fund or against
trust funds held by the State |
12 | | Treasurer, and (2) is employed full-time or
part-time in a |
13 | | position normally requiring actual performance of duty
during |
14 | | not less than 1/2 of a normal work period, as established by |
15 | | the
Director in cooperation with each department, except that |
16 | | persons elected
by popular vote will be considered employees |
17 | | during the entire
term for which they are elected regardless of |
18 | | hours devoted to the
service of the State, and (3) except that |
19 | | "employee" does not include any
person who is not eligible by |
20 | | reason of such person's employment to
participate in one of the |
21 | | State retirement systems under Articles 2, 14, 15
(either the |
22 | | regular Article 15 system or the optional retirement program
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23 | | established under Section 15-158.2) or 18, or under paragraph |
24 | | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension |
25 | | Code, but such term does include persons who are employed |
26 | | during
the 6 month qualifying period under Article 14 of the |
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1 | | Illinois Pension
Code. Such term also includes any person who |
2 | | (1) after January 1, 1966,
is receiving ordinary or accidental |
3 | | disability benefits under Articles
2, 14, 15 (including |
4 | | ordinary or accidental disability benefits under the
optional |
5 | | retirement program established under Section 15-158.2), |
6 | | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of |
7 | | the
Illinois Pension Code, for disability incurred after |
8 | | January 1, 1966, (2)
receives total permanent or total |
9 | | temporary disability under the Workers'
Compensation Act or |
10 | | Occupational Disease Act as a result of injuries
sustained or |
11 | | illness contracted in the course of employment with the
State |
12 | | of Illinois, or (3) is not otherwise covered under this Act and |
13 | | has
retired as a participating member under Article 2 of the |
14 | | Illinois Pension
Code but is ineligible for the retirement |
15 | | annuity under Section 2-119 of
the Illinois Pension Code. |
16 | | However, a person who satisfies the criteria
of the foregoing |
17 | | definition of "employee" except that such person is made
|
18 | | ineligible to participate in the State Universities Retirement |
19 | | System by
clause (4) of subsection (a) of Section 15-107 of the |
20 | | Illinois Pension
Code is also an "employee" for the purposes of |
21 | | this Act. "Employee" also
includes any person receiving or |
22 | | eligible for benefits under a sick pay
plan established in |
23 | | accordance with Section 36 of the State Finance Act.
"Employee" |
24 | | also includes (i) each officer or employee in the service of a
|
25 | | qualified local government, including persons appointed as |
26 | | trustees of
sanitary districts regardless of hours devoted to |
|
| | SB0016 Engrossed | - 18 - | LRB100 05169 KTG 15179 b |
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|
1 | | the service of the
sanitary district, (ii) each employee in the |
2 | | service of a qualified
rehabilitation facility, (iii) each |
3 | | full-time employee in the service of a
qualified domestic |
4 | | violence shelter or service, and (iv) each full-time employee |
5 | | in the service of a qualified child advocacy center, as |
6 | | determined according to
rules promulgated by the Director.
|
7 | | (l) "Member" means an employee, annuitant, retired |
8 | | employee or survivor. In the case of an annuitant or retired |
9 | | employee who first becomes an annuitant or retired employee on |
10 | | or after the effective date of this amendatory Act of the 97th |
11 | | General Assembly, the individual must meet the minimum vesting |
12 | | requirements of the applicable retirement system in order to be |
13 | | eligible for group insurance benefits under that system. In the |
14 | | case of a survivor who first becomes a survivor on or after the |
15 | | effective date of this amendatory Act of the 97th General |
16 | | Assembly, the deceased employee, annuitant, or retired |
17 | | employee upon whom the annuity is based must have been eligible |
18 | | to participate in the group insurance system under the |
19 | | applicable retirement system in order for the survivor to be |
20 | | eligible for group insurance benefits under that system.
|
21 | | (m) "Optional coverages or benefits" means those coverages |
22 | | or
benefits available to the member on his or her voluntary |
23 | | election, and at
his or her own expense.
|
24 | | (n) "Program" means the group life insurance, health |
25 | | benefits and other
employee benefits designed and contracted |
26 | | for by the Director under this Act.
|
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1 | | (o) "Health plan" means a health benefits
program offered
|
2 | | by the State of Illinois for persons eligible for the plan.
|
3 | | (p) "Retired employee" means any person who would be an |
4 | | annuitant as
that term is defined herein but for the fact that |
5 | | such person retired prior to
January 1, 1966. Such term also |
6 | | includes any person formerly employed by
the University of |
7 | | Illinois in the Cooperative Extension Service who would
be an |
8 | | annuitant but for the fact that such person was made ineligible |
9 | | to
participate in the State Universities Retirement System by |
10 | | clause (4) of
subsection (a) of Section 15-107 of the Illinois
|
11 | | Pension Code.
|
12 | | (q) "Survivor" means a person receiving an annuity as a |
13 | | survivor of an
employee or of an annuitant. "Survivor" also |
14 | | includes: (1) the surviving
dependent of a person who satisfies |
15 | | the definition of "employee" except that
such person is made |
16 | | ineligible to participate in the State Universities
Retirement |
17 | | System by clause (4) of subsection (a)
of Section 15-107 of the |
18 | | Illinois Pension Code; (2) the surviving
dependent of any |
19 | | person formerly employed by the University of Illinois in
the |
20 | | Cooperative Extension Service who would be an annuitant except |
21 | | for the
fact that such person was made ineligible to |
22 | | participate in the State
Universities Retirement System by |
23 | | clause (4) of subsection (a) of Section
15-107 of the Illinois |
24 | | Pension Code; and (3) the surviving dependent of a person who |
25 | | was an annuitant under this Act by virtue of receiving an |
26 | | alternative retirement cancellation payment under Section |
|
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1 | | 14-108.5 of the Illinois Pension Code.
|
2 | | (q-2) "SERS" means the State Employees' Retirement System |
3 | | of Illinois, created under Article 14 of the Illinois Pension |
4 | | Code.
|
5 | | (q-3) "SURS" means the State Universities Retirement |
6 | | System, created under Article 15 of the Illinois Pension Code.
|
7 | | (q-4) "TRS" means the Teachers' Retirement System of the |
8 | | State of Illinois, created under Article 16 of the Illinois |
9 | | Pension Code.
|
10 | | (q-5) (Blank).
|
11 | | (q-6) (Blank).
|
12 | | (q-7) (Blank).
|
13 | | (r) "Medical services" means the services provided within |
14 | | the scope
of their licenses by practitioners in all categories |
15 | | licensed under the
Medical Practice Act of 1987.
|
16 | | (s) "Unit of local government" means any county, |
17 | | municipality,
township, school district (including a |
18 | | combination of school districts under
the Intergovernmental |
19 | | Cooperation Act), special district or other unit,
designated as |
20 | | a
unit of local government by law, which exercises limited |
21 | | governmental
powers or powers in respect to limited |
22 | | governmental subjects, any
not-for-profit association with a |
23 | | membership that primarily includes
townships and township |
24 | | officials, that has duties that include provision of
research |
25 | | service, dissemination of information, and other acts for the
|
26 | | purpose of improving township government, and that is funded |
|
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|
1 | | wholly or
partly in accordance with Section 85-15 of the |
2 | | Township Code; any
not-for-profit corporation or association, |
3 | | with a membership consisting
primarily of municipalities, that |
4 | | operates its own utility system, and
provides research, |
5 | | training, dissemination of information, or other acts to
|
6 | | promote cooperation between and among municipalities that |
7 | | provide utility
services and for the advancement of the goals |
8 | | and purposes of its
membership;
the Southern Illinois |
9 | | Collegiate Common Market, which is a consortium of higher
|
10 | | education institutions in Southern Illinois; the Illinois |
11 | | Association of
Park Districts; and any hospital provider that |
12 | | is owned by a county that has 100 or fewer hospital beds and |
13 | | has not already joined the program. "Qualified
local |
14 | | government" means a unit of local government approved by the |
15 | | Director and
participating in a program created under |
16 | | subsection (i) of Section 10 of this
Act.
|
17 | | (t) "Qualified rehabilitation facility" means any |
18 | | not-for-profit
organization that is accredited by the |
19 | | Commission on Accreditation of
Rehabilitation Facilities or |
20 | | certified by the Department
of Human Services (as successor to |
21 | | the Department of Mental Health
and Developmental |
22 | | Disabilities) to provide services to persons with
disabilities
|
23 | | and which receives funds from the State of Illinois for |
24 | | providing those
services, approved by the Director and |
25 | | participating in a program created
under subsection (j) of |
26 | | Section 10 of this Act.
|
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1 | | (u) "Qualified domestic violence shelter or service" means |
2 | | any Illinois
domestic violence shelter or service and its |
3 | | administrative offices funded
by the Department of Human |
4 | | Services (as successor to the Illinois Department of
Public |
5 | | Aid),
approved by the Director and
participating in a program |
6 | | created under subsection (k) of Section 10.
|
7 | | (v) "TRS benefit recipient" means a person who:
|
8 | | (1) is not a "member" as defined in this Section; and
|
9 | | (2) is receiving a monthly benefit or retirement |
10 | | annuity
under Article 16 of the Illinois Pension Code; and
|
11 | | (3) either (i) has at least 8 years of creditable |
12 | | service under Article
16 of the Illinois Pension Code, or |
13 | | (ii) was enrolled in the health insurance
program offered |
14 | | under that Article on January 1, 1996, or (iii) is the |
15 | | survivor
of a benefit recipient who had at least 8
years of |
16 | | creditable service under Article 16 of the Illinois Pension |
17 | | Code or
was enrolled in the health insurance program |
18 | | offered under that Article on
the effective date of this |
19 | | amendatory Act of 1995, or (iv) is a recipient or
survivor |
20 | | of a recipient of a disability benefit under Article 16 of |
21 | | the
Illinois Pension Code.
|
22 | | (w) "TRS dependent beneficiary" means a person who:
|
23 | | (1) is not a "member" or "dependent" as defined in this |
24 | | Section; and
|
25 | | (2) is a TRS benefit recipient's: (A) spouse, (B) |
26 | | dependent parent who
is receiving at least half of his or |
|
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1 | | her support from the TRS benefit
recipient, or (C) natural, |
2 | | step, adjudicated, or adopted child who is (i) under age |
3 | | 26, (ii) was, on January 1, 1996, participating as a |
4 | | dependent
beneficiary in the health insurance program |
5 | | offered under Article 16 of the
Illinois Pension Code, or |
6 | | (iii) age 19 or over who has a mental or physical |
7 | | disability from a cause originating prior to the age of 19 |
8 | | (age 26 if enrolled as an adult child).
|
9 | | "TRS dependent beneficiary" does not include, as indicated |
10 | | under paragraph (2) of this subsection (w), a dependent of the |
11 | | survivor of a TRS benefit recipient who first becomes a |
12 | | dependent of a survivor of a TRS benefit recipient on or after |
13 | | the effective date of this amendatory Act of the 97th General |
14 | | Assembly unless that dependent would have been eligible for |
15 | | coverage as a dependent of the deceased TRS benefit recipient |
16 | | upon whom the survivor benefit is based. |
17 | | (x) "Military leave" refers to individuals in basic
|
18 | | training for reserves, special/advanced training, annual |
19 | | training, emergency
call up, activation by the President of the |
20 | | United States, or any other training or duty in service to the |
21 | | United States Armed Forces.
|
22 | | (y) (Blank).
|
23 | | (z) "Community college benefit recipient" means a person |
24 | | who:
|
25 | | (1) is not a "member" as defined in this Section; and
|
26 | | (2) is receiving a monthly survivor's annuity or |
|
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1 | | retirement annuity
under Article 15 of the Illinois Pension |
2 | | Code; and
|
3 | | (3) either (i) was a full-time employee of a community |
4 | | college district or
an association of community college |
5 | | boards created under the Public Community
College Act |
6 | | (other than an employee whose last employer under Article |
7 | | 15 of the
Illinois Pension Code was a community college |
8 | | district subject to Article VII
of the Public Community |
9 | | College Act) and was eligible to participate in a group
|
10 | | health benefit plan as an employee during the time of |
11 | | employment with a
community college district (other than a |
12 | | community college district subject to
Article VII of the |
13 | | Public Community College Act) or an association of |
14 | | community
college boards, or (ii) is the survivor of a |
15 | | person described in item (i).
|
16 | | (aa) "Community college dependent beneficiary" means a |
17 | | person who:
|
18 | | (1) is not a "member" or "dependent" as defined in this |
19 | | Section; and
|
20 | | (2) is a community college benefit recipient's: (A) |
21 | | spouse, (B) dependent
parent who is receiving at least half |
22 | | of his or her support from the community
college benefit |
23 | | recipient, or (C) natural, step, adjudicated, or adopted |
24 | | child who is (i)
under age 26, or (ii)
age 19 or over and |
25 | | has a mental or physical disability from a cause |
26 | | originating prior to the age of 19 (age 26 if enrolled as |
|
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1 | | an adult child).
|
2 | | "Community college dependent beneficiary" does not |
3 | | include, as indicated under paragraph (2) of this subsection |
4 | | (aa), a dependent of the survivor of a community college |
5 | | benefit recipient who first becomes a dependent of a survivor |
6 | | of a community college benefit recipient on or after the |
7 | | effective date of this amendatory Act of the 97th General |
8 | | Assembly unless that dependent would have been eligible for |
9 | | coverage as a dependent of the deceased community college |
10 | | benefit recipient upon whom the survivor annuity is based. |
11 | | (bb) "Qualified child advocacy center" means any Illinois |
12 | | child advocacy center and its administrative offices funded by |
13 | | the Department of Children and Family Services, as defined by |
14 | | the Children's Advocacy Center Act (55 ILCS 80/), approved by |
15 | | the Director and participating in a program created under |
16 | | subsection (n) of Section 10.
|
17 | | (Source: P.A. 98-488, eff. 8-16-13; 99-143, eff. 7-27-15.)
|
18 | | (5 ILCS 375/10) (from Ch. 127, par. 530)
|
19 | | Sec. 10. Contributions by the State and members.
|
20 | | (a) The State shall pay the cost of basic non-contributory |
21 | | group life
insurance and, subject to member paid contributions |
22 | | set by the Department or
required by this Section and except as |
23 | | provided in this Section, the basic program of group health |
24 | | benefits on each
eligible member, except a member, not |
25 | | otherwise
covered by this Act, who has retired as a |
|
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1 | | participating member under Article 2
of the Illinois Pension |
2 | | Code but is ineligible for the retirement annuity under
Section |
3 | | 2-119 of the Illinois Pension Code, and part of each eligible |
4 | | member's
and retired member's premiums for health insurance |
5 | | coverage for enrolled
dependents as provided by Section 9. The |
6 | | State shall pay the cost of the basic
program of group health |
7 | | benefits only after benefits are reduced by the amount
of |
8 | | benefits covered by Medicare for all members and dependents
who |
9 | | are eligible for benefits under Social Security or
the Railroad |
10 | | Retirement system or who had sufficient Medicare-covered
|
11 | | government employment, except that such reduction in benefits |
12 | | shall apply only
to those members and dependents who (1) first |
13 | | become eligible
for such Medicare coverage on or after July 1, |
14 | | 1992; or (2) are
Medicare-eligible members or dependents of a |
15 | | local government unit which began
participation in the program |
16 | | on or after July 1, 1992; or (3) remain eligible
for, but no |
17 | | longer receive Medicare coverage which they had been receiving |
18 | | on
or after July 1, 1992. The Department may determine the |
19 | | aggregate level of the
State's contribution on the basis of |
20 | | actual cost of medical services adjusted
for age, sex or |
21 | | geographic or other demographic characteristics which affect
|
22 | | the costs of such programs.
|
23 | | The cost of participation in the basic program of group |
24 | | health benefits
for the dependent or survivor of a living or |
25 | | deceased retired employee who was
formerly employed by the |
26 | | University of Illinois in the Cooperative Extension
Service and |
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1 | | would be an annuitant but for the fact that he or she was made
|
2 | | ineligible to participate in the State Universities Retirement |
3 | | System by clause
(4) of subsection (a) of Section 15-107 of the |
4 | | Illinois Pension Code shall not
be greater than the cost of |
5 | | participation that would otherwise apply to that
dependent or |
6 | | survivor if he or she were the dependent or survivor of an
|
7 | | annuitant under the State Universities Retirement System.
|
8 | | (a-1) (Blank).
|
9 | | (a-2) (Blank).
|
10 | | (a-3) (Blank).
|
11 | | (a-4) (Blank).
|
12 | | (a-5) (Blank).
|
13 | | (a-6) (Blank).
|
14 | | (a-7) (Blank).
|
15 | | (a-8) Any annuitant, survivor, or retired employee may |
16 | | waive or terminate coverage in
the program of group health |
17 | | benefits. Any such annuitant, survivor, or retired employee
who |
18 | | has waived or terminated coverage may enroll or re-enroll in |
19 | | the
program of group health benefits only during the annual |
20 | | benefit choice period,
as determined by the Director; except |
21 | | that in the event of termination of
coverage due to nonpayment |
22 | | of premiums, the annuitant, survivor, or retired employee
may |
23 | | not re-enroll in the program.
|
24 | | (a-8.5) Beginning on the effective date of this amendatory |
25 | | Act of the 97th General Assembly, the Director of Central |
26 | | Management Services shall, on an annual basis, determine the |
|
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1 | | amount that the State shall contribute toward the basic program |
2 | | of group health benefits on behalf of annuitants (including |
3 | | individuals who (i) participated in the General Assembly |
4 | | Retirement System, the State Employees' Retirement System of |
5 | | Illinois, the State Universities Retirement System, the |
6 | | Teachers' Retirement System of the State of Illinois, or the |
7 | | Judges Retirement System of Illinois and (ii) qualify as |
8 | | annuitants under subsection (b) of Section 3 of this Act), |
9 | | survivors (including individuals who (i) receive an annuity as |
10 | | a survivor of an individual who participated in the General |
11 | | Assembly Retirement System, the State Employees' Retirement |
12 | | System of Illinois, the State Universities Retirement System, |
13 | | the Teachers' Retirement System of the State of Illinois, or |
14 | | the Judges Retirement System of Illinois and (ii) qualify as |
15 | | survivors under subsection (q) of Section 3 of this Act), and |
16 | | retired employees (as defined in subsection (p) of Section 3 of |
17 | | this Act). The remainder of the cost of coverage for each |
18 | | annuitant, survivor, or retired employee, as determined by the |
19 | | Director of Central Management Services, shall be the |
20 | | responsibility of that annuitant, survivor, or retired |
21 | | employee. |
22 | | Contributions required of annuitants, survivors, and |
23 | | retired employees shall be the same for all retirement systems |
24 | | and shall also be based on whether an individual has made an |
25 | | election under Section 15-135.1 of the Illinois Pension Code. |
26 | | Contributions may be based on annuitants', survivors', or |
|
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1 | | retired employees' Medicare eligibility, but may not be based |
2 | | on Social Security eligibility. |
3 | | (a-9) No later than May 1 of each calendar year, the |
4 | | Director
of Central Management Services shall certify in |
5 | | writing to the Executive
Secretary of the State Employees' |
6 | | Retirement System of Illinois the amounts
of the Medicare |
7 | | supplement health care premiums and the amounts of the
health |
8 | | care premiums for all other retirees who are not Medicare |
9 | | eligible.
|
10 | | A separate calculation of the premiums based upon the |
11 | | actual cost of each
health care plan shall be so certified.
|
12 | | The Director of Central Management Services shall provide |
13 | | to the
Executive Secretary of the State Employees' Retirement |
14 | | System of
Illinois such information, statistics, and other data |
15 | | as he or she
may require to review the premium amounts |
16 | | certified by the Director
of Central Management Services.
|
17 | | The Department of Central Management Services, or any |
18 | | successor agency designated to procure healthcare contracts |
19 | | pursuant to this Act, is authorized to establish funds, |
20 | | separate accounts provided by any bank or banks as defined by |
21 | | the Illinois Banking Act, or separate accounts provided by any |
22 | | savings and loan association or associations as defined by the |
23 | | Illinois Savings and Loan Act of 1985 to be held by the |
24 | | Director, outside the State treasury, for the purpose of |
25 | | receiving the transfer of moneys from the Local Government |
26 | | Health Insurance Reserve Fund. The Department may promulgate |
|
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1 | | rules further defining the methodology for the transfers. Any |
2 | | interest earned by moneys in the funds or accounts shall inure |
3 | | to the Local Government Health Insurance Reserve Fund. The |
4 | | transferred moneys, and interest accrued thereon, shall be used |
5 | | exclusively for transfers to administrative service |
6 | | organizations or their financial institutions for payments of |
7 | | claims to claimants and providers under the self-insurance |
8 | | health plan. The transferred moneys, and interest accrued |
9 | | thereon, shall not be used for any other purpose including, but |
10 | | not limited to, reimbursement of administration fees due the |
11 | | administrative service organization pursuant to its contract |
12 | | or contracts with the Department.
|
13 | | (a-10) To the extent that participation, benefits, or |
14 | | premiums under this Act are based on a person's service credit |
15 | | under an Article of the Illinois Pension Code, service credit |
16 | | terminated in exchange for an accelerated pension benefit |
17 | | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that |
18 | | Code shall be included in determining a person's service credit |
19 | | for the purposes of this Act. |
20 | | (b) State employees who become eligible for this program on |
21 | | or after January
1, 1980 in positions normally requiring actual |
22 | | performance of duty not less
than 1/2 of a normal work period |
23 | | but not equal to that of a normal work period,
shall be given |
24 | | the option of participating in the available program. If the
|
25 | | employee elects coverage, the State shall contribute on behalf |
26 | | of such employee
to the cost of the employee's benefit and any |
|
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|
1 | | applicable dependent supplement,
that sum which bears the same |
2 | | percentage as that percentage of time the
employee regularly |
3 | | works when compared to normal work period.
|
4 | | (c) The basic non-contributory coverage from the basic |
5 | | program of
group health benefits shall be continued for each |
6 | | employee not in pay status or
on active service by reason of |
7 | | (1) leave of absence due to illness or injury,
(2) authorized |
8 | | educational leave of absence or sabbatical leave, or (3)
|
9 | | military leave. This coverage shall continue until
expiration |
10 | | of authorized leave and return to active service, but not to |
11 | | exceed
24 months for leaves under item (1) or (2). This |
12 | | 24-month limitation and the
requirement of returning to active |
13 | | service shall not apply to persons receiving
ordinary or |
14 | | accidental disability benefits or retirement benefits through |
15 | | the
appropriate State retirement system or benefits under the |
16 | | Workers' Compensation
or Occupational Disease Act.
|
17 | | (d) The basic group life insurance coverage shall continue, |
18 | | with
full State contribution, where such person is (1) absent |
19 | | from active
service by reason of disability arising from any |
20 | | cause other than
self-inflicted, (2) on authorized educational |
21 | | leave of absence or
sabbatical leave, or (3) on military leave.
|
22 | | (e) Where the person is in non-pay status for a period in |
23 | | excess of
30 days or on leave of absence, other than by reason |
24 | | of disability,
educational or sabbatical leave, or military |
25 | | leave, such
person may continue coverage only by making |
26 | | personal
payment equal to the amount normally contributed by |
|
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|
1 | | the State on such person's
behalf. Such payments and coverage |
2 | | may be continued: (1) until such time as
the person returns to |
3 | | a status eligible for coverage at State expense, but not
to |
4 | | exceed 24 months or (2) until such person's employment or |
5 | | annuitant status
with the State is terminated (exclusive of any |
6 | | additional service imposed pursuant to law).
|
7 | | (f) The Department shall establish by rule the extent to |
8 | | which other
employee benefits will continue for persons in |
9 | | non-pay status or who are
not in active service.
|
10 | | (g) The State shall not pay the cost of the basic |
11 | | non-contributory
group life insurance, program of health |
12 | | benefits and other employee benefits
for members who are |
13 | | survivors as defined by paragraphs (1) and (2) of
subsection |
14 | | (q) of Section 3 of this Act. The costs of benefits for these
|
15 | | survivors shall be paid by the survivors or by the University |
16 | | of Illinois
Cooperative Extension Service, or any combination |
17 | | thereof.
However, the State shall pay the amount of the |
18 | | reduction in the cost of
participation, if any, resulting from |
19 | | the amendment to subsection (a) made
by this amendatory Act of |
20 | | the 91st General Assembly.
|
21 | | (h) Those persons occupying positions with any department |
22 | | as a result
of emergency appointments pursuant to Section 8b.8 |
23 | | of the Personnel Code
who are not considered employees under |
24 | | this Act shall be given the option
of participating in the |
25 | | programs of group life insurance, health benefits and
other |
26 | | employee benefits. Such persons electing coverage may |
|
| | SB0016 Engrossed | - 33 - | LRB100 05169 KTG 15179 b |
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|
1 | | participate only
by making payment equal to the amount normally |
2 | | contributed by the State for
similarly situated employees. Such |
3 | | amounts shall be determined by the
Director. Such payments and |
4 | | coverage may be continued until such time as the
person becomes |
5 | | an employee pursuant to this Act or such person's appointment |
6 | | is
terminated.
|
7 | | (i) Any unit of local government within the State of |
8 | | Illinois
may apply to the Director to have its employees, |
9 | | annuitants, and their
dependents provided group health |
10 | | coverage under this Act on a non-insured
basis. To participate, |
11 | | a unit of local government must agree to enroll
all of its |
12 | | employees, who may select coverage under either the State group
|
13 | | health benefits plan or a health maintenance organization that |
14 | | has
contracted with the State to be available as a health care |
15 | | provider for
employees as defined in this Act. A unit of local |
16 | | government must remit the
entire cost of providing coverage |
17 | | under the State group health benefits plan
or, for coverage |
18 | | under a health maintenance organization, an amount determined
|
19 | | by the Director based on an analysis of the sex, age, |
20 | | geographic location, or
other relevant demographic variables |
21 | | for its employees, except that the unit of
local government |
22 | | shall not be required to enroll those of its employees who are
|
23 | | covered spouses or dependents under this plan or another group |
24 | | policy or plan
providing health benefits as long as (1) an |
25 | | appropriate official from the unit
of local government attests |
26 | | that each employee not enrolled is a covered spouse
or |
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1 | | dependent under this plan or another group policy or plan, and |
2 | | (2) at least
50% of the employees are enrolled and the unit of |
3 | | local government remits
the entire cost of providing coverage |
4 | | to those employees, except that a
participating school district |
5 | | must have enrolled at least 50% of its full-time
employees who |
6 | | have not waived coverage under the district's group health
plan |
7 | | by participating in a component of the district's cafeteria |
8 | | plan. A
participating school district is not required to enroll |
9 | | a full-time employee
who has waived coverage under the |
10 | | district's health plan, provided that an
appropriate official |
11 | | from the participating school district attests that the
|
12 | | full-time employee has waived coverage by participating in a |
13 | | component of the
district's cafeteria plan. For the purposes of |
14 | | this subsection, "participating
school district" includes a |
15 | | unit of local government whose primary purpose is
education as |
16 | | defined by the Department's rules.
|
17 | | Employees of a participating unit of local government who |
18 | | are not enrolled
due to coverage under another group health |
19 | | policy or plan may enroll in
the event of a qualifying change |
20 | | in status, special enrollment, special
circumstance as defined |
21 | | by the Director, or during the annual Benefit Choice
Period. A |
22 | | participating unit of local government may also elect to cover |
23 | | its
annuitants. Dependent coverage shall be offered on an |
24 | | optional basis, with the
costs paid by the unit of local |
25 | | government, its employees, or some combination
of the two as |
26 | | determined by the unit of local government. The unit of local
|
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|
1 | | government shall be responsible for timely collection and |
2 | | transmission of
dependent premiums.
|
3 | | The Director shall annually determine monthly rates of |
4 | | payment, subject
to the following constraints:
|
5 | | (1) In the first year of coverage, the rates shall be |
6 | | equal to the
amount normally charged to State employees for |
7 | | elected optional coverages
or for enrolled dependents |
8 | | coverages or other contributory coverages, or
contributed |
9 | | by the State for basic insurance coverages on behalf of its
|
10 | | employees, adjusted for differences between State |
11 | | employees and employees
of the local government in age, |
12 | | sex, geographic location or other relevant
demographic |
13 | | variables, plus an amount sufficient to pay for the |
14 | | additional
administrative costs of providing coverage to |
15 | | employees of the unit of
local government and their |
16 | | dependents.
|
17 | | (2) In subsequent years, a further adjustment shall be |
18 | | made to reflect
the actual prior years' claims experience |
19 | | of the employees of the unit of
local government.
|
20 | | In the case of coverage of local government employees under |
21 | | a health
maintenance organization, the Director shall annually |
22 | | determine for each
participating unit of local government the |
23 | | maximum monthly amount the unit
may contribute toward that |
24 | | coverage, based on an analysis of (i) the age,
sex, geographic |
25 | | location, and other relevant demographic variables of the
|
26 | | unit's employees and (ii) the cost to cover those employees |
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|
1 | | under the State
group health benefits plan. The Director may |
2 | | similarly determine the
maximum monthly amount each unit of |
3 | | local government may contribute toward
coverage of its |
4 | | employees' dependents under a health maintenance organization.
|
5 | | Monthly payments by the unit of local government or its |
6 | | employees for
group health benefits plan or health maintenance |
7 | | organization coverage shall
be deposited in the Local |
8 | | Government Health Insurance Reserve Fund.
|
9 | | The Local Government Health Insurance Reserve Fund is |
10 | | hereby created as a nonappropriated trust fund to be held |
11 | | outside the State Treasury, with the State Treasurer as |
12 | | custodian. The Local Government Health Insurance Reserve Fund |
13 | | shall be a continuing
fund not subject to fiscal year |
14 | | limitations. The Local Government Health Insurance Reserve |
15 | | Fund is not subject to administrative charges or charge-backs, |
16 | | including but not limited to those authorized under Section 8h |
17 | | of the State Finance Act. All revenues arising from the |
18 | | administration of the health benefits program established |
19 | | under this Section shall be deposited into the Local Government |
20 | | Health Insurance Reserve Fund. Any interest earned on moneys in |
21 | | the Local Government Health Insurance Reserve Fund shall be |
22 | | deposited into the Fund. All expenditures from this Fund
shall |
23 | | be used for payments for health care benefits for local |
24 | | government and rehabilitation facility
employees, annuitants, |
25 | | and dependents, and to reimburse the Department or
its |
26 | | administrative service organization for all expenses incurred |
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|
1 | | in the
administration of benefits. No other State funds may be |
2 | | used for these
purposes.
|
3 | | A local government employer's participation or desire to |
4 | | participate
in a program created under this subsection shall |
5 | | not limit that employer's
duty to bargain with the |
6 | | representative of any collective bargaining unit
of its |
7 | | employees.
|
8 | | (j) Any rehabilitation facility within the State of |
9 | | Illinois may apply
to the Director to have its employees, |
10 | | annuitants, and their eligible
dependents provided group |
11 | | health coverage under this Act on a non-insured
basis. To |
12 | | participate, a rehabilitation facility must agree to enroll all
|
13 | | of its employees and remit the entire cost of providing such |
14 | | coverage for
its employees, except that the rehabilitation |
15 | | facility shall not be
required to enroll those of its employees |
16 | | who are covered spouses or
dependents under this plan or |
17 | | another group policy or plan providing health
benefits as long |
18 | | as (1) an appropriate official from the rehabilitation
facility |
19 | | attests that each employee not enrolled is a covered spouse or
|
20 | | dependent under this plan or another group policy or plan, and |
21 | | (2) at least
50% of the employees are enrolled and the |
22 | | rehabilitation facility remits
the entire cost of providing |
23 | | coverage to those employees. Employees of a
participating |
24 | | rehabilitation facility who are not enrolled due to coverage
|
25 | | under another group health policy or plan may enroll
in the |
26 | | event of a qualifying change in status, special enrollment, |
|
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1 | | special
circumstance as defined by the Director, or during the |
2 | | annual Benefit Choice
Period. A participating rehabilitation |
3 | | facility may also elect
to cover its annuitants. Dependent |
4 | | coverage shall be offered on an optional
basis, with the costs |
5 | | paid by the rehabilitation facility, its employees, or
some |
6 | | combination of the 2 as determined by the rehabilitation |
7 | | facility. The
rehabilitation facility shall be responsible for |
8 | | timely collection and
transmission of dependent premiums.
|
9 | | The Director shall annually determine quarterly rates of |
10 | | payment, subject
to the following constraints:
|
11 | | (1) In the first year of coverage, the rates shall be |
12 | | equal to the amount
normally charged to State employees for |
13 | | elected optional coverages or for
enrolled dependents |
14 | | coverages or other contributory coverages on behalf of
its |
15 | | employees, adjusted for differences between State |
16 | | employees and
employees of the rehabilitation facility in |
17 | | age, sex, geographic location
or other relevant |
18 | | demographic variables, plus an amount sufficient to pay
for |
19 | | the additional administrative costs of providing coverage |
20 | | to employees
of the rehabilitation facility 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
rehabilitation facility.
|
25 | | Monthly payments by the rehabilitation facility or its |
26 | | employees for
group health benefits shall be deposited in the |
|
| | SB0016 Engrossed | - 39 - | LRB100 05169 KTG 15179 b |
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1 | | Local Government Health
Insurance Reserve Fund.
|
2 | | (k) Any domestic violence shelter or service within the |
3 | | State of Illinois
may apply to the Director to have its |
4 | | employees, annuitants, and their
dependents provided group |
5 | | health coverage under this Act on a non-insured
basis. To |
6 | | participate, a domestic violence shelter or service must agree |
7 | | to
enroll all of its employees and pay the entire cost of |
8 | | providing such coverage
for its employees. The domestic |
9 | | violence shelter shall not be required to enroll those of its |
10 | | employees who are covered spouses or dependents under this plan |
11 | | or another group policy or plan providing health benefits as |
12 | | long as (1) an appropriate official from the domestic violence |
13 | | shelter attests that each employee not enrolled is a covered |
14 | | spouse or dependent under this plan or another group policy or |
15 | | plan and (2) at least 50% of the employees are enrolled and the |
16 | | domestic violence shelter remits the entire cost of providing |
17 | | coverage to those employees. Employees of a participating |
18 | | domestic violence shelter who are not enrolled due to coverage |
19 | | under another group health policy or plan may enroll in the |
20 | | event of a qualifying change in status, special enrollment, or |
21 | | special circumstance as defined by the Director or during the |
22 | | annual Benefit Choice Period. A participating domestic |
23 | | violence shelter may also elect
to cover its annuitants. |
24 | | Dependent coverage shall be offered on an optional
basis, with
|
25 | | employees, or some combination of the 2 as determined by the |
26 | | domestic violence
shelter or service. The domestic violence |
|
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|
1 | | shelter or service shall be
responsible for timely collection |
2 | | and transmission of dependent premiums.
|
3 | | The Director shall annually determine rates of payment,
|
4 | | subject to the following constraints:
|
5 | | (1) In the first year of coverage, the rates shall be |
6 | | equal to the
amount normally charged to State employees for |
7 | | elected optional coverages
or for enrolled dependents |
8 | | coverages or other contributory coverages on
behalf of its |
9 | | employees, adjusted for differences between State |
10 | | employees and
employees of the domestic violence shelter or |
11 | | service in age, sex, geographic
location or other relevant |
12 | | demographic variables, plus an amount sufficient
to pay for |
13 | | the additional administrative costs of providing coverage |
14 | | to
employees of the domestic violence shelter or service |
15 | | and their dependents.
|
16 | | (2) In subsequent years, a further adjustment shall be |
17 | | made to reflect
the actual prior years' claims experience |
18 | | of the employees of the domestic
violence shelter or |
19 | | service.
|
20 | | Monthly payments by the domestic violence shelter or |
21 | | service or its employees
for group health insurance shall be |
22 | | deposited in the Local Government Health
Insurance Reserve |
23 | | Fund.
|
24 | | (l) A public community college or entity organized pursuant |
25 | | to the
Public Community College Act may apply to the Director |
26 | | initially to have
only annuitants not covered prior to July 1, |
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1 | | 1992 by the district's health
plan provided health coverage |
2 | | under this Act on a non-insured basis. The
community college |
3 | | must execute a 2-year contract to participate in the
Local |
4 | | Government Health Plan.
Any annuitant may enroll in the event |
5 | | of a qualifying change in status, special
enrollment, special |
6 | | circumstance as defined by the Director, or during the
annual |
7 | | Benefit Choice Period.
|
8 | | The Director shall annually determine monthly rates of |
9 | | payment subject to
the following constraints: for those |
10 | | community colleges with annuitants
only enrolled, first year |
11 | | rates shall be equal to the average cost to cover
claims for a |
12 | | State member adjusted for demographics, Medicare
|
13 | | participation, and other factors; and in the second year, a |
14 | | further adjustment
of rates shall be made to reflect the actual |
15 | | first year's claims experience
of the covered annuitants.
|
16 | | (l-5) The provisions of subsection (l) become inoperative |
17 | | on July 1, 1999.
|
18 | | (m) The Director shall adopt any rules deemed necessary for
|
19 | | implementation of this amendatory Act of 1989 (Public Act |
20 | | 86-978).
|
21 | | (n) Any child advocacy center within the State of Illinois |
22 | | may apply to the Director to have its employees, annuitants, |
23 | | and their dependents provided group health coverage under this |
24 | | Act on a non-insured basis. To participate, a child advocacy |
25 | | center must agree to enroll all of its employees and pay the |
26 | | entire cost of providing coverage for its employees. The child
|
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|
1 | | advocacy center shall not be required to enroll those of its
|
2 | | employees who are covered spouses or dependents under this plan
|
3 | | or another group policy or plan providing health benefits as
|
4 | | long as (1) an appropriate official from the child advocacy
|
5 | | center attests that each employee not enrolled is a covered
|
6 | | spouse or dependent under this plan or another group policy or
|
7 | | plan and (2) at least 50% of the employees are enrolled and the |
8 | | child advocacy center remits the entire cost of providing |
9 | | coverage to those employees. Employees of a participating child |
10 | | advocacy center who are not enrolled due to coverage under |
11 | | another group health policy or plan may enroll in the event of |
12 | | a qualifying change in status, special enrollment, or special |
13 | | circumstance as defined by the Director or during the annual |
14 | | Benefit Choice Period. A participating child advocacy center |
15 | | may also elect to cover its annuitants. Dependent coverage |
16 | | shall be offered on an optional basis, with the costs paid by |
17 | | the child advocacy center, its employees, or some combination |
18 | | of the 2 as determined by the child advocacy center. The child |
19 | | advocacy center shall be responsible for timely collection and |
20 | | transmission of dependent premiums. |
21 | | The Director shall annually determine rates of payment, |
22 | | subject to the following constraints: |
23 | | (1) In the first year of coverage, the rates shall be |
24 | | equal to the amount normally charged to State employees for |
25 | | elected optional coverages or for enrolled dependents |
26 | | coverages or other contributory coverages on behalf of its |
|
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|
1 | | employees, adjusted for differences between State |
2 | | employees and employees of the child advocacy center in |
3 | | age, sex, geographic location, or other relevant |
4 | | demographic variables, plus an amount sufficient to pay for |
5 | | the additional administrative costs of providing coverage |
6 | | to employees of the child advocacy center and their |
7 | | dependents. |
8 | | (2) In subsequent years, a further adjustment shall be |
9 | | made to reflect the actual prior years' claims experience |
10 | | of the employees of the child advocacy center. |
11 | | Monthly payments by the child advocacy center or its |
12 | | employees for group health insurance shall be deposited into |
13 | | the Local Government Health Insurance Reserve Fund. |
14 | | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
|
15 | | Section 15. The Civil Administrative Code of Illinois is |
16 | | amended by adding Section 5-647 as follows: |
17 | | (20 ILCS 5/5-647 new) |
18 | | Sec. 5-647. Future increases in income. A Department must |
19 | | not pay, offer, or agree to pay any future increase in income, |
20 | | as that term is defined in Section 14-103.42, 15-112.1, or |
21 | | 16-121.1 of the Illinois Pension Code, to any person in a |
22 | | manner that violates Section 14-106.5, 15-132.9, or 16-122.9 of |
23 | | the Illinois Pension Code. |
|
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1 | | Section 20. The Attorney General Act is amended by adding |
2 | | Section 5 as follows: |
3 | | (15 ILCS 205/5 new) |
4 | | Sec. 5. Future increases in income. The Office of the |
5 | | Attorney General must not pay, offer, or agree to pay any |
6 | | future
increase in income, as that term is defined in Section
|
7 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
8 | | manner that violates Section 14-106.5 of the Illinois Pension |
9 | | Code. |
10 | | Section 25. The Secretary of State Merit Employment Code is |
11 | | amended by adding Section 13a as follows: |
12 | | (15 ILCS 310/13a new) |
13 | | Sec. 13a. Future increases in income. The Office of the |
14 | | Secretary of State must not pay, offer, or agree to pay any |
15 | | future
increase in income, as that term is defined in Section
|
16 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
17 | | manner that violates Section 14-106.5 of the Illinois Pension |
18 | | Code. |
19 | | Section 30. The Comptroller Merit Employment Code is |
20 | | amended by adding Section 13a as follows: |
21 | | (15 ILCS 410/13a new) |
|
| | SB0016 Engrossed | - 45 - | LRB100 05169 KTG 15179 b |
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|
1 | | Sec. 13a. Future increases in income. The Office of the |
2 | | Comptroller must not pay, offer, or agree to pay any future
|
3 | | increase in income, as that term is defined in Section
|
4 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
5 | | manner that violates Section 14-106.5 of the Illinois Pension |
6 | | Code. |
7 | | Section 35. The State Treasurer Employment Code is amended |
8 | | by adding Section 12a as follows: |
9 | | (15 ILCS 510/12a new) |
10 | | Sec. 12a. Future increases in income. The Office of the |
11 | | State Treasurer must not pay, offer, or agree to pay any future
|
12 | | increase in income, as that term is defined in Section
|
13 | | 14-103.42 of the Illinois Pension Code,
to any person in a |
14 | | manner that violates Section 14-106.5 of the Illinois Pension |
15 | | Code. |
16 | | Section 40. The Budget Stabilization Act is amended by |
17 | | changing Section 20 as follows: |
18 | | (30 ILCS 122/20) |
19 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
20 | | which has been
held unconstitutional) |
21 | | Sec. 20. Pension Stabilization Fund. |
22 | | (a) The Pension Stabilization Fund is hereby created as a |
|
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|
1 | | special fund in the State treasury. Moneys in the fund shall be |
2 | | used for the sole purpose of making payments to the designated |
3 | | retirement systems as provided in Section 25.
|
4 | | (b) For each fiscal year through State fiscal year 2020, |
5 | | when the General Assembly's
appropriations and transfers or |
6 | | diversions as required by law
from general funds do not exceed |
7 | | 99% of the
estimated general funds revenues pursuant to |
8 | | subsection (a)
of Section 10, the Comptroller shall transfer |
9 | | from the
General Revenue Fund as provided by this Section a |
10 | | total
amount equal to 0.5% of the estimated general funds |
11 | | revenues
to the Pension Stabilization Fund. |
12 | | (c) For each fiscal year through State fiscal year 2020, |
13 | | when the General Assembly's
appropriations and transfers or |
14 | | diversions as required by law
from general funds do not exceed |
15 | | 98% of the
estimated general funds revenues pursuant to |
16 | | subsection (b)
of Section 10, the Comptroller shall transfer |
17 | | from the
General Revenue Fund as provided by this Section a |
18 | | total
amount equal to 1.0% of the estimated general funds |
19 | | revenues
to the Pension Stabilization Fund. |
20 | | (c-5) In addition to any other amounts required to be
|
21 | | transferred under this Section, in State fiscal year 2021 and
|
22 | | each fiscal year thereafter through State fiscal year 2045, or
|
23 | | when each of the designated retirement systems, as defined in
|
24 | | Section 25, has achieved 100% funding, whichever occurs first,
|
25 | | the State Comptroller shall order transferred and the State
|
26 | | Treasurer shall transfer from the General Revenue Fund to the
|
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1 | | Pension Stabilization Fund an amount equal to (1) the
sum of |
2 | | the amounts certified by the designated retirement
systems |
3 | | under subsection
(a-10) of Section 14-135.08, subsection |
4 | | (a-10) of Section
15-165, and subsection (a-10) of Section |
5 | | 16-158 of this Code for that fiscal year minus (2) the sum of |
6 | | the required State
contributions certified by the retirement |
7 | | systems under subsection (a-5) of Section
14-135.08, |
8 | | subsection (a-5) of Section 15-165, and subsection
(a-5) of |
9 | | Section 16-158 of this Code for that fiscal year. The
|
10 | | transferred amount is intended to represent the
annual savings |
11 | | to the State resulting from the enactment of
Section 1-161 and |
12 | | Section 14-155.2, the enactment of subsection (a-2) of Section |
13 | | 15-155 and subsection (b-4) of Section 16-158, and the changes |
14 | | made to Section 1-160 by this amendatory Act of the 100th |
15 | | General Assembly. |
16 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
17 | | to be transferred each fiscal year under this Section
into the |
18 | | Pension Stabilization Fund on the first day of each
month of |
19 | | that fiscal year or as soon thereafter as possible; except that |
20 | | the final transfer of the fiscal year shall be made as soon as |
21 | | practical after the August 31 following the end of the fiscal |
22 | | year. |
23 | | Until State fiscal year 2021, before Before the final |
24 | | transfer for a fiscal year is made, the Comptroller shall |
25 | | reconcile the estimated general funds revenues used in |
26 | | calculating the other transfers under this Section for that |
|
| | SB0016 Engrossed | - 48 - | LRB100 05169 KTG 15179 b |
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1 | | fiscal year with the actual general funds revenues for that |
2 | | fiscal year. The
final transfer for the fiscal year shall be |
3 | | adjusted so that the
total amount transferred under this |
4 | | Section for that fiscal year is equal to the percentage |
5 | | specified in subsection
(b) or (c) of this Section, whichever |
6 | | is applicable, of the actual
general funds revenues for that |
7 | | fiscal year. The actual general funds revenues for the fiscal |
8 | | year shall be calculated in a manner consistent with subsection |
9 | | (c) of
Section 10 of this Act.
|
10 | | (Source: P.A. 94-839, eff. 6-6-06.) |
11 | | Section 45. The Illinois Pension Code is amended by |
12 | | changing Sections 1-160, 2-101, 2-105, 2-107, 2-108, 2-119.1, |
13 | | 2-124, 2-126, 2-134, 2-162, 14-103.10, 14-114, 14-131, 14-133, |
14 | | 14-135.08, 14-152.1, 15-108.1, 15-108.2, 15-111, 15-136, |
15 | | 15-155, 15-157, 15-165, 15-198, 16-121, 16-133.1, 16-136.1, |
16 | | 16-152, 16-158, 16-203, 17-116, 17-119.2, 17-129, 17-130, |
17 | | 18-131, 18-140, 20-121, 20-123, 20-124, and 20-125 and by |
18 | | adding Sections 1-161, 1-162, 2-105.3, 2-107.9, 2-107.10, |
19 | | 2-110.3, 2-165.1, 2-166.1, 14-103.41, 14-103.42, 14-103.43, |
20 | | 14-106.5, 14-147.5, 14-155.1, 14-155.2, 14-156.1, 15-112.1, |
21 | | 15-112.2, 15-132.9, 15-185.5, 15-200.1, 15-201.1, 16-107.1, |
22 | | 16-121.1, 16-121.2, 16-122.9, 16-190.5, 16-205.1, 16-206.1, |
23 | | 17-106.05, 17-113.4, 17-113.5, 17-113.6, and 17-115.5 as |
24 | | follows:
|
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| | SB0016 Engrossed | - 49 - | LRB100 05169 KTG 15179 b |
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1 | | (40 ILCS 5/1-160)
|
2 | | (Text of Section WITHOUT the changes made by P.A. 98-641, |
3 | | which has been held unconstitutional) |
4 | | Sec. 1-160. Provisions applicable to new hires. |
5 | | (a) The provisions of this Section apply to a person who, |
6 | | on or after January 1, 2011, first becomes a member or a |
7 | | participant under any reciprocal retirement system or pension |
8 | | fund established under this Code, other than a retirement |
9 | | system or pension fund established under Article 2, 3, 4, 5, 6, |
10 | | 15 or 18 of this Code, notwithstanding any other provision of |
11 | | this Code to the contrary, but do not apply to any self-managed |
12 | | plan established under this Code, to any person with respect to |
13 | | service as a sheriff's law enforcement employee under Article |
14 | | 7, or to any participant of the retirement plan established |
15 | | under Section 22-101. Notwithstanding anything to the contrary |
16 | | in this Section, for purposes of this Section, a person who |
17 | | participated in a retirement system under Article 15 prior to |
18 | | January 1, 2011 shall be deemed a person who first became a |
19 | | member or participant prior to January 1, 2011 under any |
20 | | retirement system or pension fund subject to this Section. The |
21 | | changes made to this Section by Public Act 98-596 this |
22 | | amendatory Act of the 98th General Assembly are a clarification |
23 | | of existing law and are intended to be retroactive to January |
24 | | 1, 2011 ( the effective date of Public Act 96-889 ) , |
25 | | notwithstanding the provisions of Section 1-103.1 of this Code. |
26 | | This Section does not apply to a person who, on or after 6 |
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1 | | months after the effective date of this amendatory Act of the |
2 | | 100th General Assembly, first becomes a member or participant |
3 | | under Article 14 or 16, unless that person (i) is a covered |
4 | | employee under Article 14 who has not elected to participate in |
5 | | the defined contribution plan under Section 14-155.2 or (ii) |
6 | | elects under subsection (b) of Section 1-161 to receive the |
7 | | benefits provided under this Section and the applicable |
8 | | provisions of the Article under which he or she is a member or |
9 | | participant. This Section also does not apply to a person who |
10 | | first becomes a member or participant of an affected pension |
11 | | fund on or after 6 months after the resolution or ordinance |
12 | | date, as defined in Section 1-162, unless that person elects |
13 | | under subsection (c) of Section 1-162 to receive the benefits |
14 | | provided under this Section and the applicable provisions of |
15 | | the Article under which he or she is a member or participant. |
16 | | (b) "Final average salary" means the average monthly (or |
17 | | annual) salary obtained by dividing the total salary or |
18 | | earnings calculated under the Article applicable to the member |
19 | | or participant during the 96 consecutive months (or 8 |
20 | | consecutive years) of service within the last 120 months (or 10 |
21 | | years) of service in which the total salary or earnings |
22 | | calculated under the applicable Article was the highest by the |
23 | | number of months (or years) of service in that period. For the |
24 | | purposes of a person who first becomes a member or participant |
25 | | of any retirement system or pension fund to which this Section |
26 | | applies on or after January 1, 2011, in this Code, "final |
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1 | | average salary" shall be substituted for the following: |
2 | | (1) In Article 7 (except for service as sheriff's law |
3 | | enforcement employees), "final rate of earnings". |
4 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average |
5 | | annual salary for any 4 consecutive years within the last |
6 | | 10 years of service immediately preceding the date of |
7 | | withdrawal". |
8 | | (3) In Article 13, "average final salary". |
9 | | (4) In Article 14, "final average compensation". |
10 | | (5) In Article 17, "average salary". |
11 | | (6) In Section 22-207, "wages or salary received by him |
12 | | at the date of retirement or discharge". |
13 | | (b-5) Beginning on January 1, 2011, for all purposes under |
14 | | this Code (including without limitation the calculation of |
15 | | benefits and employee contributions), the annual earnings, |
16 | | salary, or wages (based on the plan year) of a member or |
17 | | participant to whom this Section applies shall not exceed |
18 | | $106,800; however, that amount shall annually thereafter be |
19 | | increased by the lesser of (i) 3% of that amount, including all |
20 | | previous adjustments, or (ii) one-half the annual unadjusted |
21 | | percentage increase (but not less than zero) in the consumer |
22 | | price index-u
for the 12 months ending with the September |
23 | | preceding each November 1, including all previous adjustments. |
24 | | For the purposes of this Section, "consumer price index-u" |
25 | | means
the index published by the Bureau of Labor Statistics of |
26 | | the United States
Department of Labor that measures the average |
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1 | | change in prices of goods and
services purchased by all urban |
2 | | consumers, United States city average, all
items, 1982-84 = |
3 | | 100. The new amount resulting from each annual adjustment
shall |
4 | | be determined by the Public Pension Division of the Department |
5 | | of Insurance and made available to the boards of the retirement |
6 | | systems and pension funds by November 1 of each year. |
7 | | (c) A member or participant is entitled to a retirement
|
8 | | annuity upon written application if he or she has attained age |
9 | | 67 (beginning January 1, 2015, age 65 with respect to service |
10 | | under Article 12 of this Code that is subject to this Section) |
11 | | and has at least 10 years of service credit and is otherwise |
12 | | eligible under the requirements of the applicable Article. |
13 | | A member or participant who has attained age 62 (beginning |
14 | | January 1, 2015, age 60 with respect to service under Article |
15 | | 12 of this Code that is subject to this Section) and has at |
16 | | least 10 years of service credit and is otherwise eligible |
17 | | under the requirements of the applicable Article may elect to |
18 | | receive the lower retirement annuity provided
in subsection (d) |
19 | | of this Section. |
20 | | (d) The retirement annuity of a member or participant who |
21 | | is retiring after attaining age 62 (beginning January 1, 2015, |
22 | | age 60 with respect to service under Article 12 of this Code |
23 | | that is subject to this Section) with at least 10 years of |
24 | | service credit shall be reduced by one-half
of 1% for each full |
25 | | month that the member's age is under age 67 (beginning January |
26 | | 1, 2015, age 65 with respect to service under Article 12 of |
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1 | | this Code that is subject to this Section). |
2 | | (e) Any retirement annuity or supplemental annuity shall be |
3 | | subject to annual increases on the January 1 occurring either |
4 | | on or after the attainment of age 67 (beginning January 1, |
5 | | 2015, age 65 with respect to service under Article 12 of this |
6 | | Code that is subject to this Section) or the first anniversary |
7 | | of the annuity start date, whichever is later. Each annual |
8 | | increase shall be calculated at 3% or one-half the annual |
9 | | unadjusted percentage increase (but not less than zero) in the |
10 | | consumer price index-u for the 12 months ending with the |
11 | | September preceding each November 1, whichever is less, of the |
12 | | originally granted retirement annuity. If the annual |
13 | | unadjusted percentage change in the consumer price index-u for |
14 | | the 12 months ending with the September preceding each November |
15 | | 1 is zero or there is a decrease, then the annuity shall not be |
16 | | increased. |
17 | | (f) The initial survivor's or widow's annuity of an |
18 | | otherwise eligible survivor or widow of a retired member or |
19 | | participant who first became a member or participant on or |
20 | | after January 1, 2011 shall be in the amount of 66 2/3% of the |
21 | | retired member's or participant's retirement annuity at the |
22 | | date of death. In the case of the death of a member or |
23 | | participant who has not retired and who first became a member |
24 | | or participant on or after January 1, 2011, eligibility for a |
25 | | survivor's or widow's annuity shall be determined by the |
26 | | applicable Article of this Code. The initial benefit shall be |
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1 | | 66 2/3% of the earned annuity without a reduction due to age. A |
2 | | child's annuity of an otherwise eligible child shall be in the |
3 | | amount prescribed under each Article if applicable. Any |
4 | | survivor's or widow's annuity shall be increased (1) on each |
5 | | January 1 occurring on or after the commencement of the annuity |
6 | | if
the deceased member died while receiving a retirement |
7 | | annuity or (2) in
other cases, on each January 1 occurring |
8 | | after the first anniversary
of the commencement of the annuity. |
9 | | Each annual increase shall be calculated at 3% or one-half the |
10 | | annual unadjusted percentage increase (but not less than zero) |
11 | | in the consumer price index-u for the 12 months ending with the |
12 | | September preceding each November 1, whichever is less, of the |
13 | | originally granted survivor's annuity. If the annual |
14 | | unadjusted percentage change in the consumer price index-u for |
15 | | the 12 months ending with the September preceding each November |
16 | | 1 is zero or there is a decrease, then the annuity shall not be |
17 | | increased. |
18 | | (g) The benefits in Section 14-110 apply only if the person |
19 | | is a State policeman, a fire fighter in the fire protection |
20 | | service of a department, or a security employee of the |
21 | | Department of Corrections or the Department of Juvenile |
22 | | Justice, as those terms are defined in subsection (b) of |
23 | | Section 14-110. A person who meets the requirements of this |
24 | | Section is entitled to an annuity calculated under the |
25 | | provisions of Section 14-110, in lieu of the regular or minimum |
26 | | retirement annuity, only if the person has withdrawn from |
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1 | | service with not less than 20
years of eligible creditable |
2 | | service and has attained age 60, regardless of whether
the |
3 | | attainment of age 60 occurs while the person is
still in |
4 | | service. |
5 | | (h) If a person who first becomes a member or a participant |
6 | | of a retirement system or pension fund subject to this Section |
7 | | on or after January 1, 2011 is receiving a retirement annuity |
8 | | or retirement pension under that system or fund and becomes a |
9 | | member or participant under any other system or fund created by |
10 | | this Code and is employed on a full-time basis, except for |
11 | | those members or participants exempted from the provisions of |
12 | | this Section under subsection (a) of this Section, then the |
13 | | person's retirement annuity or retirement pension under that |
14 | | system or fund shall be suspended during that employment. Upon |
15 | | termination of that employment, the person's retirement |
16 | | annuity or retirement pension payments shall resume and be |
17 | | recalculated if recalculation is provided for under the |
18 | | applicable Article of this Code. |
19 | | If a person who first becomes a member of a retirement |
20 | | system or pension fund subject to this Section on or after |
21 | | January 1, 2012 and is receiving a retirement annuity or |
22 | | retirement pension under that system or fund and accepts on a |
23 | | contractual basis a position to provide services to a |
24 | | governmental entity from which he or she has retired, then that |
25 | | person's annuity or retirement pension earned as an active |
26 | | employee of the employer shall be suspended during that |
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1 | | contractual service. A person receiving an annuity or |
2 | | retirement pension under this Code shall notify the pension |
3 | | fund or retirement system from which he or she is receiving an |
4 | | annuity or retirement pension, as well as his or her |
5 | | contractual employer, of his or her retirement status before |
6 | | accepting contractual employment. A person who fails to submit |
7 | | such notification shall be guilty of a Class A misdemeanor and |
8 | | required to pay a fine of $1,000. Upon termination of that |
9 | | contractual employment, the person's retirement annuity or |
10 | | retirement pension payments shall resume and, if appropriate, |
11 | | be recalculated under the applicable provisions of this Code. |
12 | | (i) (Blank). |
13 | | (j) Except for Sections 1-161 and 1-162, in In the case of |
14 | | a conflict between the provisions of this Section and any other |
15 | | provision of this Code, the provisions of this Section shall |
16 | | control.
|
17 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596, |
18 | | eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.) |
19 | | (40 ILCS 5/1-161 new) |
20 | | Sec. 1-161. Optional benefits for certain Tier 2 members |
21 | | under Articles 14, 15, and 16. |
22 | | (a) Notwithstanding any other provision of this Code to the |
23 | | contrary, the provisions of this Section apply to a person who, |
24 | | on or after 6 months after the effective date of this |
25 | | amendatory Act of the 100th General Assembly, first becomes a |
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1 | | member or a participant under Article 14, 15, or 16 and who |
2 | | does not make the election under subsection (b) or (c), |
3 | | whichever is applicable. The provisions of this Section do not |
4 | | apply to any participant in a self-managed plan or to a covered |
5 | | employee under Article 14. |
6 | | (b) In lieu of the benefits provided under this Section, a |
7 | | member or participant, except for a participant under Article |
8 | | 15, may irrevocably elect the benefits under Section 1-160 and |
9 | | the benefits otherwise applicable to that member or |
10 | | participant. The election must be made within 30 days after |
11 | | becoming a member or participant. Each retirement system shall |
12 | | establish procedures for making this election. |
13 | | (c) A participant under Article 15 may irrevocably elect |
14 | | the benefits otherwise provided to a Tier 2 participant under |
15 | | Article 15. The election must be made within 30 days after |
16 | | becoming a participant. The retirement system under Article 15 |
17 | | shall establish procedures for making this election. |
18 | | (d) "Final average salary" means the average monthly (or |
19 | | annual) salary obtained by dividing the total salary or |
20 | | earnings calculated under the Article applicable to the member |
21 | | or participant during the last 120 months (or 10 years) of |
22 | | service in which the total salary or earnings calculated under |
23 | | the applicable Article was the highest by the number of months |
24 | | (or years) of service in that period. For the purposes of a |
25 | | person who first becomes a member or participant of any |
26 | | retirement system to which this Section applies on or after 6 |
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1 | | months after the effective date of this amendatory Act of the |
2 | | 100th General Assembly, in this Code, "final average salary" |
3 | | shall be substituted for "final average compensation" in |
4 | | Article 14. |
5 | | (e) Beginning 6 months after the effective date of this |
6 | | amendatory Act of the 100th General Assembly, for all purposes |
7 | | under this Code (including without limitation the calculation |
8 | | of benefits and employee contributions), the annual earnings, |
9 | | salary, or wages (based on the plan year) of a member or |
10 | | participant to whom this Section applies shall not at any time |
11 | | exceed the federal Social Security Wage Base then in effect. |
12 | | (f) A member or participant is entitled to a retirement
|
13 | | annuity upon written application if he or she has attained the |
14 | | normal retirement age determined by the Social Security |
15 | | Administration for that member or participant's year of birth, |
16 | | but no earlier than 67 years of age, and has at least 10 years |
17 | | of service credit and is otherwise eligible under the |
18 | | requirements of the applicable Article. |
19 | | (g) The amount of the retirement annuity to which a member |
20 | | or participant is entitled shall be computed by multiplying |
21 | | 1.25% for each year of service credit by his or her final |
22 | | average salary. |
23 | | (h) Any retirement annuity or supplemental annuity shall be |
24 | | subject to annual increases on the first anniversary of the |
25 | | annuity start date. Each annual increase shall be one-half the |
26 | | annual unadjusted percentage increase (but not less than zero) |
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1 | | in the consumer price index-w for the 12 months ending with the |
2 | | September preceding each November 1 of the originally granted |
3 | | retirement annuity. If the annual unadjusted percentage change |
4 | | in the consumer price index-w for the 12 months ending with the |
5 | | September preceding each November 1 is zero or there is a |
6 | | decrease, then the annuity shall not be increased. |
7 | | For the purposes of this Section, "consumer price index-w" |
8 | | means the index published by the Bureau of Labor Statistics of |
9 | | the United States Department of Labor that measures the average |
10 | | change in prices of goods and services purchased by Urban Wage |
11 | | Earners and Clerical Workers, United States city average, all |
12 | | items, 1982-84 = 100. The new amount resulting from each annual |
13 | | adjustment shall be determined by the Public Pension Division |
14 | | of the Department of Insurance and made available to the boards |
15 | | of the retirement systems and pension funds by November 1 of |
16 | | each year. |
17 | | (i) The initial survivor's or widow's annuity of an |
18 | | otherwise eligible survivor or widow of a retired member or |
19 | | participant who first became a member or participant on or |
20 | | after 6 months after the effective date of this amendatory Act |
21 | | of the 100th General Assembly shall be in the amount of 66 2/3% |
22 | | of the retired member's or participant's retirement annuity at |
23 | | the date of death. In the case of the death of a member or |
24 | | participant who has not retired and who first became a member |
25 | | or participant on or after 6 months after the effective date of |
26 | | this amendatory Act of the 100th General Assembly, eligibility |
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1 | | for a survivor's or widow's annuity shall be determined by the |
2 | | applicable Article of this Code. The benefit shall be 66 2/3% |
3 | | of the earned annuity without a reduction due to age. A child's |
4 | | annuity of an otherwise eligible child shall be in the amount |
5 | | prescribed under each Article if applicable. |
6 | | (j) In lieu of any other employee contributions, except for |
7 | | the contribution to the defined contribution plan under |
8 | | subsection (k) of this Section, each employee shall contribute |
9 | | 6.2% of his her or salary to the retirement system. However, |
10 | | the employee contribution under this subsection shall not |
11 | | exceed the amount of the normal cost of the benefits under this |
12 | | Section (except for the defined contribution plan under |
13 | | subsection (k) of this Section), expressed as a percentage of |
14 | | payroll and determined on or before November 1 of each year by |
15 | | the board of trustees of the retirement system. If the board of |
16 | | trustees of the retirement system determines that the 6.2% |
17 | | employee contribution rate exceeds the normal cost of the |
18 | | benefits under this Section (except for the defined |
19 | | contribution plan under subsection (k) of this Section), then |
20 | | on or before December 1 of that year, the board of trustees |
21 | | shall certify the amount of the normal cost of the benefits |
22 | | under this Section (except for the defined contribution plan |
23 | | under subsection (k) of this Section), expressed as a |
24 | | percentage of payroll, to the State Actuary and the Commission |
25 | | on Government Forecasting and Accountability, and the employee |
26 | | contribution under this subsection shall be reduced to that |
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1 | | amount beginning January 1 of the following year. Thereafter, |
2 | | if the normal cost of the benefits under this Section (except |
3 | | for the defined contribution plan under subsection (k) of this |
4 | | Section), expressed as a percentage of payroll and determined |
5 | | on or before November 1 of each year by the board of trustees |
6 | | of the retirement system, exceeds 6.2% of salary, then on or |
7 | | before December 1 of that year, the board of trustees shall |
8 | | certify the normal cost to the State Actuary and the Commission |
9 | | on Government Forecasting and Accountability, and the employee |
10 | | contributions shall revert back to 6.2% of salary beginning |
11 | | January 1 of the following year. |
12 | | (k) No later than 5 months after the effective date of this |
13 | | amendatory Act of the 100th General Assembly, each retirement |
14 | | system under Article 14, 15, or 16 shall prepare and implement |
15 | | a defined contribution plan for members or participants who are |
16 | | subject to this Section. The defined contribution plan |
17 | | developed under this subsection shall be a plan that aggregates |
18 | | employer and employee contributions in individual participant |
19 | | accounts which, after meeting any other requirements, are used |
20 | | for payouts after retirement in accordance with this subsection |
21 | | and any other applicable laws. |
22 | | (1) Each member or participant shall contribute a |
23 | | minimum of 4% of his or her salary to the defined |
24 | | contribution plan. |
25 | | (2) For each participant in the defined contribution |
26 | | plan who has been employed with the same employer for at |
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1 | | least one year, employer contributions shall be paid into |
2 | | that participant's accounts at a rate expressed as a |
3 | | percentage of salary. This rate may be set for individual |
4 | | employees, but shall be no higher than 6% of salary and |
5 | | shall be no lower than 2% of salary. |
6 | | (3) Employer contributions shall vest when those |
7 | | contributions are paid into a member's or participant's |
8 | | account. |
9 | | (4) The defined contribution plan shall provide a |
10 | | variety of options for investments. These options shall |
11 | | include investments handled by the Illinois State Board of |
12 | | Investment as well as private sector investment options. |
13 | | (5) The defined contribution plan shall provide a |
14 | | variety of options for payouts to retirees and their |
15 | | survivors. |
16 | | (6) To the extent authorized under federal law and as |
17 | | authorized by the retirement system, the defined |
18 | | contribution plan shall allow former participants in the |
19 | | plan to transfer or roll over employee and employer |
20 | | contributions, and the earnings thereon, into other |
21 | | qualified retirement plans. |
22 | | (7) Each retirement system shall reduce the employee |
23 | | contributions credited to the member's defined |
24 | | contribution plan account by an amount determined by that |
25 | | retirement system to cover the cost of offering the |
26 | | benefits under this subsection and any applicable |
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1 | | administrative fees. |
2 | | (8) No person shall begin participating in the defined |
3 | | contribution plan until it has attained qualified plan |
4 | | status and received all necessary approvals from the U.S. |
5 | | Internal Revenue Service. |
6 | | (l) By accepting the benefits under this Section, a member |
7 | | or participant acknowledges and consents that benefits once |
8 | | earned may not be diminished, but that future benefits may be |
9 | | modified, including, but not limited to, changes in the |
10 | | retirement age at which a member or participant becomes |
11 | | eligible to receive future benefits, changes in the amount of |
12 | | the automatic annual increase for those future benefits, or the |
13 | | amount of the retirement annuity. Any increase in benefits |
14 | | under this Section applicable to persons under Article 15 or 16 |
15 | | does not apply unless it is approved by resolution or ordinance |
16 | | of the governing body of the unit of local government with |
17 | | regard to the members or participants under that unit of local |
18 | | government. |
19 | | (m) In the case of a conflict between the provisions of |
20 | | this Section and any other provision of this Code, the |
21 | | provisions of this Section shall control. |
22 | | (40 ILCS 5/1-162 new) |
23 | | Sec. 1-162. Optional benefits for certain Tier 2 members of |
24 | | pension funds under Articles 8, 9, 10, 11, 12, and 17. |
25 | | (a) As used in this Section: |
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1 | | "Affected pension fund" means a pension fund established |
2 | | under Article 8, 9, 10, 11, 12, or 17 that the governing body |
3 | | of the unit of local government has designated as an affected |
4 | | pension fund by adoption of a resolution or ordinance. |
5 | | "Resolution or ordinance date" means the date on which the |
6 | | governing body of the unit of local government designates a |
7 | | pension fund under Article 8, 9, 10, 11, 12, or 17 as an |
8 | | affected pension fund by adoption of a resolution or ordinance. |
9 | | (b) Notwithstanding any other provision of this Code to the |
10 | | contrary, the provisions of this Section apply to a person who |
11 | | first becomes a member or a participant in an affected pension |
12 | | fund on or after 6 months after the resolution or ordinance |
13 | | date and who does not make the election under subsection (c). |
14 | | (c) In lieu of the benefits provided under this Section, a |
15 | | member or participant may irrevocably elect the benefits under |
16 | | Section 1-160 and the benefits otherwise applicable to that |
17 | | member or participant. The election must be made within 30 days |
18 | | after becoming a member or participant. Each affected pension |
19 | | fund shall establish procedures for making this election. |
20 | | (d) "Final average salary" means the average monthly (or |
21 | | annual) salary obtained by dividing the total salary or |
22 | | earnings calculated under the Article applicable to the member |
23 | | or participant during the last 120 months (or 10 years) of |
24 | | service in which the total salary or earnings calculated under |
25 | | the applicable Article was the highest by the number of months |
26 | | (or years) of service in that period. For the purposes of a |
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1 | | person who first becomes a member or participant of an affected |
2 | | pension fund on or after 6 months after the ordinance or |
3 | | resolution date, in this Code, "final average salary" shall be |
4 | | substituted for the following: |
5 | | (1) In Articles 8, 9, 10, 11, and 12, "highest
average |
6 | | annual salary for any 4 consecutive years within the last |
7 | | 10 years of service immediately preceding the date of |
8 | | withdrawal". |
9 | | (2) In Article 17, "average salary". |
10 | | (e) Beginning 6 months after the resolution or ordinance |
11 | | date, for all purposes under this Code (including without |
12 | | limitation the calculation of benefits and employee |
13 | | contributions), the annual earnings, salary, or wages (based on |
14 | | the plan year) of a member or participant to whom this Section |
15 | | applies shall not at any time exceed the federal Social |
16 | | Security Wage Base then in effect. |
17 | | (f) A member or participant is entitled to a retirement
|
18 | | annuity upon written application if he or she has attained the |
19 | | normal retirement age determined by the Social Security |
20 | | Administration for that member or participant's year of birth, |
21 | | but no earlier than 67 years of age, and has at least 10 years |
22 | | of service credit and is otherwise eligible under the |
23 | | requirements of the applicable Article. |
24 | | (g) The amount of the retirement annuity to which a member |
25 | | or participant is entitled shall be computed by multiplying |
26 | | 1.25% for each year of service credit by his or her final |
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1 | | average salary. |
2 | | (h) Any retirement annuity or supplemental annuity shall be |
3 | | subject to annual increases on the first anniversary of the |
4 | | annuity start date. Each annual increase shall be one-half the |
5 | | annual unadjusted percentage increase (but not less than zero) |
6 | | in the consumer price index-w for the 12 months ending with the |
7 | | September preceding each November 1 of the originally granted |
8 | | retirement annuity. If the annual unadjusted percentage change |
9 | | in the consumer price index-w for the 12 months ending with the |
10 | | September preceding each November 1 is zero or there is a |
11 | | decrease, then the annuity shall not be increased. |
12 | | For the purposes of this Section, "consumer price index-w" |
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 Urban Wage |
16 | | Earners and Clerical Workers, United States city average, all |
17 | | items, 1982-84 = 100. The new amount resulting from each annual |
18 | | adjustment shall be determined by the Public Pension Division |
19 | | of the Department of Insurance and made available to the boards |
20 | | of the retirement systems and pension funds by November 1 of |
21 | | each year. |
22 | | (i) The initial survivor's or widow's annuity of an |
23 | | otherwise eligible survivor or widow of a retired member or |
24 | | participant who first became a member or participant on or |
25 | | after 6 months after the resolution or ordinance date shall be |
26 | | in the amount of 66 2/3% of the retired member's or |
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1 | | participant's retirement annuity at the date of death. In the |
2 | | case of the death of a member or participant who has not |
3 | | retired and who first became a member or participant on or |
4 | | after 6 months after the resolution or ordinance date, |
5 | | eligibility for a survivor's or widow's annuity shall be |
6 | | determined by the applicable Article of this Code. The benefit |
7 | | shall be 66 2/3% of the earned annuity without a reduction due |
8 | | to age. A child's annuity of an otherwise eligible child shall |
9 | | be in the amount prescribed under each Article if applicable. |
10 | | (j) In lieu of any other employee contributions, except for |
11 | | the contribution to the defined contribution plan under |
12 | | subsection (k) of this Section, each employee shall contribute |
13 | | 6.2% of his her or salary to the affected pension fund. |
14 | | However, the employee contribution under this subsection shall |
15 | | not exceed the amount of the normal cost of the benefits under |
16 | | this Section (except for the defined contribution plan under |
17 | | subsection (k) of this Section), expressed as a percentage of |
18 | | payroll and determined on or before November 1 of each year by |
19 | | the board of trustees of the affected pension fund. If the |
20 | | board of trustees of the affected pension fund determines that |
21 | | the 6.2% employee contribution rate exceeds the normal cost of |
22 | | the benefits under this Section (except for the defined |
23 | | contribution plan under subsection (k) of this Section), then |
24 | | on or before December 1 of that year, the board of trustees |
25 | | shall certify the amount of the normal cost of the benefits |
26 | | under this Section (except for the defined contribution plan |
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1 | | under subsection (k) of this Section), expressed as a |
2 | | percentage of payroll, to the State Actuary and the Commission |
3 | | on Government Forecasting and Accountability, and the employee |
4 | | contribution under this subsection shall be reduced to that |
5 | | amount beginning January 1 of the following year. Thereafter, |
6 | | if the normal cost of the benefits under this Section (except |
7 | | for the defined contribution plan under subsection (k) of this |
8 | | Section), expressed as a percentage of payroll and determined |
9 | | on or before November 1 of each year by the board of trustees |
10 | | of the affected pension fund, exceeds 6.2% of salary, then on |
11 | | or before December 1 of that year, the board of trustees shall |
12 | | certify the normal cost to the State Actuary and the Commission |
13 | | on Government Forecasting and Accountability, and the employee |
14 | | contributions shall revert back to 6.2% of salary beginning |
15 | | January 1 of the following year. |
16 | | (k) No later than 5 months after the resolution or |
17 | | ordinance date, an affected pension fund shall prepare and |
18 | | implement a defined contribution plan for members or |
19 | | participants who are subject to this Section. The defined |
20 | | contribution plan developed under this subsection shall be a |
21 | | plan that aggregates employer and employee contributions in |
22 | | individual participant accounts which, after meeting any other |
23 | | requirements, are used for payouts after retirement in |
24 | | accordance with this subsection and any other applicable laws. |
25 | | (1) Each member or participant shall contribute a |
26 | | minimum of 4% of his or her salary to the defined |
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1 | | contribution plan. |
2 | | (2) For each participant in the defined contribution |
3 | | plan who has been employed with the same employer for at |
4 | | least one year, employer contributions shall be paid into |
5 | | that participant's accounts at a rate expressed as a |
6 | | percentage of salary. This rate may be set for individual |
7 | | employees, but shall be no higher than 6% of salary and |
8 | | shall be no lower than 2% of salary. |
9 | | (3) Employer contributions shall vest when those |
10 | | contributions are paid into a member's or participant's |
11 | | account. |
12 | | (4) 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 | | (5) The defined contribution plan shall provide a |
17 | | variety of options for payouts to retirees and their |
18 | | survivors. |
19 | | (6) To the extent authorized under federal law and as |
20 | | authorized by the affected pension fund, the defined |
21 | | contribution plan shall allow former participants in the |
22 | | plan to transfer or roll over employee and employer |
23 | | contributions, and the earnings thereon, into other |
24 | | qualified retirement plans. |
25 | | (7) Each affected pension fund shall reduce the |
26 | | employee contributions credited to the member's defined |
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1 | | contribution plan account by an amount determined by that |
2 | | affected pension fund to cover the cost of offering the |
3 | | benefits under this subsection and any applicable |
4 | | administrative fees. |
5 | | (8) No person shall begin participating in the defined |
6 | | contribution plan until it has attained qualified plan |
7 | | status and received all necessary approvals from the U.S. |
8 | | Internal Revenue Service. |
9 | | (l) By accepting the benefits under this Section, a member |
10 | | or participant acknowledges and consents that benefits once |
11 | | earned may not be diminished, but that future benefits may be |
12 | | modified, including, but not limited to, changes in the |
13 | | retirement age at which a member or participant becomes |
14 | | eligible to receive future benefits, changes in the amount of |
15 | | the automatic annual increase for those future benefits, or the |
16 | | amount of the retirement annuity. Any increase in benefits |
17 | | under this Section does not apply unless it is approved by |
18 | | resolution or ordinance of the governing body of the unit of |
19 | | local government with regard to the members or participants |
20 | | under that unit of local government. |
21 | | (m) In the case of a conflict between the provisions of |
22 | | this Section and any other provision of this Code, the |
23 | | provisions of this Section shall control. |
24 | | (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
|
25 | | Sec. 2-101. Creation of system. A retirement system is |
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1 | | created to provide
retirement annuities, survivor's annuities |
2 | | and other benefits for certain
members of the General Assembly, |
3 | | certain elected state officials , and their
beneficiaries.
|
4 | | The system shall be known as the "General Assembly |
5 | | Retirement System".
All its funds and property shall be a trust |
6 | | separate from all other
entities, maintained for the purpose of |
7 | | securing payment of annuities and
benefits under this Article.
|
8 | | Participation in the retirement system created under this |
9 | | Article is
restricted to persons who became participants before |
10 | | the effective date of this amendatory Act of the 100th General |
11 | | Assembly.
Beginning on that date, the System shall not accept |
12 | | any new participants.
|
13 | | (Source: P.A. 83-1440.)
|
14 | | (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
|
15 | | Sec. 2-105. Member. "Member": Members of the General |
16 | | Assembly of this
State , including persons who enter military |
17 | | service while a member of the
General Assembly , and any person |
18 | | serving as Governor, Lieutenant Governor,
Secretary of State, |
19 | | Treasurer, Comptroller, or Attorney General for the period
of |
20 | | service in such office.
|
21 | | Any person who has served for 10 or more years as Clerk or |
22 | | Assistant Clerk
of the House of Representatives, Secretary or |
23 | | Assistant Secretary of the
Senate, or any combination thereof, |
24 | | may elect to become a member
of this system while thenceforth |
25 | | engaged in such service by filing a
written election with the |
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1 | | board. Any person so electing shall be
deemed an active member |
2 | | of the General Assembly for the purpose of validating
and |
3 | | transferring any service credits earned under any of the funds |
4 | | and systems
established under Articles 3 through 18 of this |
5 | | Code.
|
6 | | However, notwithstanding any other provision of this |
7 | | Article, a person
shall not be deemed a member for the purposes |
8 | | of this Article unless he or she
became a participant of the |
9 | | System before the effective date of this amendatory Act of the |
10 | | 100th General Assembly.
|
11 | | (Source: P.A. 85-1008.)
|
12 | | (40 ILCS 5/2-105.3 new) |
13 | | Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A |
14 | | participant who first became a participant before January 1, |
15 | | 2011.
|
16 | | (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
|
17 | | Sec. 2-107. Participant. "Participant": Any member who |
18 | | elects to
participate; and any former member who elects to |
19 | | continue participation
under Section 2-117.1, for the duration |
20 | | of such continued participation. However, notwithstanding any |
21 | | other provision of this Article, a person
shall not be deemed a |
22 | | participant for the purposes of this Article unless he or she
|
23 | | became a participant of the System before the effective date of |
24 | | this amendatory Act of the 100th General Assembly.
|
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1 | | (Source: P.A. 86-1488.)
|
2 | | (40 ILCS 5/2-107.9 new) |
3 | | Sec. 2-107.9. Future increase in income. "Future increase |
4 | | in income" means an increase to a Tier 1 employee's base pay |
5 | | that is offered to the Tier 1 employee for service under this |
6 | | Article after June 30, 2018 that qualifies as "salary", as |
7 | | defined in Section 2-108, or would qualify as "salary" but for |
8 | | the fact that it was offered to and accepted by the Tier 1 |
9 | | employee under the condition set forth in subsection (c) of |
10 | | Section 2-110.3. |
11 | | (40 ILCS 5/2-107.10 new) |
12 | | Sec. 2-107.10. Base pay. As used in Section 2-107.9 of |
13 | | this Code, "base pay" means the Tier 1 employee's annualized |
14 | | rate of salary as of June 30, 2018. For a person returning to |
15 | | active service as a Tier 1 employee after June 30, 2018, |
16 | | however, "base pay" means the employee's annualized rate of |
17 | | salary as of the employee's last date of service prior to July |
18 | | 1, 2018. The System shall calculate the base pay of each Tier 1 |
19 | | employee pursuant to this Section.
|
20 | | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
|
21 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
22 | | which has been
held unconstitutional)
|
23 | | Sec. 2-108. Salary. "Salary": |
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1 | | (1) For members of the General Assembly,
the total |
2 | | compensation paid to the member by the State for one
year of |
3 | | service, including the additional amounts, if any, paid to
the |
4 | | member as an officer pursuant to Section 1 of "An Act
in |
5 | | relation to the compensation and emoluments of the members of |
6 | | the
General Assembly", approved December 6, 1907, as now or |
7 | | hereafter
amended.
|
8 | | (2) For the State executive officers specified
in Section |
9 | | 2-105, the total compensation paid to the member for one year
|
10 | | of service.
|
11 | | (3) For members of the System who are participants under |
12 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk |
13 | | of the House of
Representatives or Secretary or Assistant |
14 | | Secretary of the Senate, the
total compensation paid to the |
15 | | member for one year of service, but not to
exceed the salary of |
16 | | the highest salaried officer of the General Assembly.
|
17 | | However, in the event that federal law results in any |
18 | | participant
receiving imputed income based on the value of |
19 | | group term life insurance
provided by the State, such imputed |
20 | | income shall not be included in salary
for the purposes of this |
21 | | Article.
|
22 | | Notwithstanding any other provision of this Section, |
23 | | "salary" does not include any future increase in income that is |
24 | | offered for service to a Tier 1 employee under this Article |
25 | | pursuant to the condition set forth in subsection (c) of |
26 | | Section 2-110.3 and accepted under that condition by a Tier 1 |
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1 | | employee who has made the election under paragraph (2) of |
2 | | subsection (a) of Section 2-110.3. |
3 | | Notwithstanding any other provision of this Section, |
4 | | "salary" does not include any consideration payment made to a |
5 | | Tier 1 employee. |
6 | | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
|
7 | | (40 ILCS 5/2-110.3 new) |
8 | | Sec. 2-110.3. Election by Tier 1 employees. |
9 | | (a) Each active Tier 1 employee shall make an irrevocable |
10 | | election either: |
11 | | (1) to agree to delay his or her eligibility for |
12 | | automatic annual increases in retirement annuity as |
13 | | provided in subsection (a-1) of Section 2-119.1 and to have |
14 | | the amount of the automatic annual increases in his or her |
15 | | retirement annuity and survivor's annuity that are |
16 | | otherwise provided for in this Article calculated, |
17 | | instead, as provided in subsection (a-1) of Section |
18 | | 2-119.1; or |
19 | | (2) to not agree to paragraph (1) of this subsection. |
20 | | The election required under this subsection (a) shall be |
21 | | made by each active Tier 1 employee no earlier than January 1, |
22 | | 2018 and no later than March 31, 2018, except that a person who |
23 | | returns to active service as a Tier 1 employee under this |
24 | | Article on or after January 1, 2018 and has not yet made an |
25 | | election under this Section must make the election under this |
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1 | | subsection (a) within 60 days after returning to active service |
2 | | 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 | | the State of Illinois shall be expressly and irrevocably |
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1 | | prohibited from offering any future increases in income to a |
2 | | Tier 1 employee who has made an election under paragraph (1) of |
3 | | subsection (a) of this Section on the condition of not |
4 | | constituting salary under Section 2-108. |
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 Section 2-126 before the |
12 | | effective date of that election. The State Comptroller shall |
13 | | pay the consideration payment to the Tier 1 employee out of |
14 | | funds appropriated for that purpose under Section 1.9 of the |
15 | | State Pension Funds Continuing Appropriation Act. The System |
16 | | shall calculate the amount of each consideration payment and, |
17 | | by July 1, 2018, shall certify to the State Comptroller the |
18 | | amount of the consideration payment, together with the name, |
19 | | address, and any other available payment information of the |
20 | | Tier 1 employee as found in the records of the System. The |
21 | | System shall make additional calculations and certifications |
22 | | of consideration payments to the State Comptroller as the |
23 | | System deems necessary. |
24 | | (c) A Tier 1 employee who makes the election under |
25 | | paragraph (2) of subsection (a) of this Section shall not be |
26 | | subject to paragraph (1) of subsection (a) of this Section. |
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1 | | However, each future increase in income offered for service as |
2 | | a member under this Article to a Tier 1 employee who has made |
3 | | the election under paragraph (2) of subsection (a) of this |
4 | | Section shall be offered expressly and irrevocably on the |
5 | | condition of not constituting salary under Section 2-108 and |
6 | | that the Tier 1 employee's acceptance of the offered future |
7 | | increase in income shall constitute his or her agreement to |
8 | | that condition. |
9 | | (d) The System shall make a good faith effort to contact |
10 | | each Tier 1 employee subject to this Section. The System shall |
11 | | mail information describing the required election to each Tier |
12 | | 1 employee by United States Postal Service mail to his or her |
13 | | last known address on file with the System. If the Tier 1 |
14 | | employee is not responsive to other means of contact, it is |
15 | | sufficient for the System to publish the details of any |
16 | | required elections on its website or to publish those details |
17 | | in a regularly published newsletter or other existing public |
18 | | forum. |
19 | | Tier 1 employees who are subject to this Section shall be |
20 | | provided with an election packet containing information |
21 | | regarding their options, as well as the forms necessary to make |
22 | | the required election. Upon request, the System shall offer |
23 | | Tier 1 employees an opportunity to receive information from the |
24 | | System before making the required election. The information may |
25 | | be provided through video materials, group presentations, |
26 | | individual consultation with a member or authorized |
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1 | | representative of the System in person or by telephone or other |
2 | | electronic means, or any combination of those methods. The |
3 | | System shall not provide advice or counseling with respect to |
4 | | which election a Tier 1 employee should make or specific to the |
5 | | legal or tax circumstances of or consequences to the Tier 1 |
6 | | employee. |
7 | | The System shall inform Tier 1 employees in the election |
8 | | packet required under this subsection that the Tier 1 employee |
9 | | may also wish to obtain information and counsel relating to the |
10 | | election required under this Section from any other available |
11 | | source, including, but not limited to, labor organizations and |
12 | | private counsel. |
13 | | In no event shall the System, its staff, or the Board be |
14 | | held liable for any information given to a member regarding the |
15 | | elections under this Section. The System shall coordinate with |
16 | | the Illinois Department of Central Management Services and each |
17 | | other retirement system administering an election in |
18 | | accordance with this amendatory Act of the 100th General |
19 | | Assembly to provide information concerning the impact of the |
20 | | election set forth in this Section. |
21 | | (e) Notwithstanding any other provision of law, each future |
22 | | increase in income offered by the State of Illinois for service |
23 | | as a member must be offered expressly and irrevocably on the |
24 | | condition of not constituting "salary" under Section 2-108 to |
25 | | any Tier 1 employee who has made an election under paragraph |
26 | | (2) of subsection (a) of this Section. The offer shall also |
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1 | | provide that the Tier 1 employee's acceptance of the offered |
2 | | future increase in income shall constitute his or her agreement |
3 | | to the condition set forth in this subsection. |
4 | | For purposes of legislative intent, the condition set forth |
5 | | in this subsection shall be construed in a manner that ensures |
6 | | that the condition is not violated or circumvented through any |
7 | | contrivance of any kind. |
8 | | (f) A member's election under this Section is not a |
9 | | prohibited election under subdivision (j)(1) of Section 1-119 |
10 | | of this Code. |
11 | | (g) No provision of this Section shall be interpreted in a |
12 | | way that would cause the System to cease to be a qualified plan |
13 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
14 | | provisions of this Section shall be subject to and implemented |
15 | | in a manner that complies with Section 11 of Article IV of the |
16 | | Illinois Constitution. |
17 | | (h) If an election created by this amendatory Act in any |
18 | | other Article of this Code or any change deriving from that |
19 | | election is determined to be unconstitutional or otherwise |
20 | | invalid by a final unappealable decision of an Illinois court |
21 | | or a court of competent jurisdiction, the invalidity of that |
22 | | provision shall not in any way affect the validity of this |
23 | | Section or the changes deriving from the election required |
24 | | under this Section.
|
25 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
|
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1 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
2 | | which has been
held unconstitutional)
|
3 | | Sec. 2-119.1. Automatic increase in retirement annuity.
|
4 | | (a) Except as provided in subsection (a-1), a A participant |
5 | | who retires after June 30, 1967, and who has not
received an |
6 | | initial increase under this Section before the effective date
|
7 | | of this amendatory Act of 1991, shall, in January or July next |
8 | | following
the first anniversary of retirement, whichever |
9 | | occurs first, and in the same
month of each year thereafter, |
10 | | but in no event prior to age 60, have the amount
of the |
11 | | originally granted retirement annuity increased as follows: |
12 | | for each
year through 1971, 1 1/2%; for each year from 1972 |
13 | | through 1979, 2%; and for
1980 and each year thereafter, 3%. |
14 | | Annuitants who have received an initial
increase under this |
15 | | subsection prior to the effective date of this amendatory
Act |
16 | | of 1991 shall continue to receive their annual increases in the |
17 | | same month
as the initial increase.
|
18 | | (a-1) Notwithstanding any other provision of this Article, |
19 | | for a Tier 1 employee who made the election under paragraph (1) |
20 | | of subsection (a) of Section 2-110.3: |
21 | | (1) The initial increase in retirement annuity under |
22 | | this Section shall occur on the January 1 occurring either |
23 | | on or after the attainment of age 67 or the fifth |
24 | | anniversary of the annuity start date, whichever is |
25 | | earlier. |
26 | | (2) The amount of each automatic annual increase in |
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1 | | retirement annuity or survivor's annuity occurring on or |
2 | | after the effective date of that election shall be |
3 | | calculated as a percentage of the originally granted |
4 | | retirement annuity or survivor's annuity, equal to 3% or |
5 | | one-half the annual unadjusted percentage increase (but |
6 | | not less than zero) in the consumer price index-u for the |
7 | | 12 months ending with the September preceding each November |
8 | | 1, whichever is less. If the annual unadjusted percentage |
9 | | change in the consumer price index-u for the 12 months |
10 | | ending with the September preceding each November 1 is zero |
11 | | or there is a decrease, then the annuity shall not be |
12 | | increased. |
13 | | For the purposes of this Section, "consumer price index-u" |
14 | | means
the index published by the Bureau of Labor Statistics of |
15 | | the United States
Department of Labor that measures the average |
16 | | change in prices of goods and
services purchased by all urban |
17 | | consumers, United States city average, all
items, 1982-84 = |
18 | | 100. The new amount resulting from each annual adjustment
shall |
19 | | be determined by the Public Pension Division of the Department |
20 | | of Insurance and made available to the board of the retirement |
21 | | system by November 1 of each year. |
22 | | (b) Beginning January 1, 1990, for eligible participants |
23 | | who remain
in service after attaining 20 years of creditable |
24 | | service, the 3% increases
provided under subsection (a) shall |
25 | | begin to accrue on the January 1 next
following the date upon |
26 | | which the participant (1) attains age 55, or (2)
attains 20 |
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1 | | years of creditable service, whichever occurs later, and shall
|
2 | | continue to accrue while the participant remains in service; |
3 | | such increases
shall become payable on January 1 or July 1, |
4 | | whichever occurs first, next
following the first anniversary of |
5 | | retirement. For any person who has service
credit in the System |
6 | | for the entire period from January 15, 1969 through
December |
7 | | 31, 1992, regardless of the date of termination of service, the
|
8 | | reference to age 55 in clause (1) of this subsection (b) shall |
9 | | be deemed to
mean age 50.
|
10 | | This subsection (b) does not apply to any person who first |
11 | | becomes a
member of the System after August 8, 2003 ( the |
12 | | effective date of Public Act 93-494) this amendatory Act of
the |
13 | | 93rd General Assembly .
|
14 | | (b-5) Notwithstanding any other provision of this Article, |
15 | | a participant who first becomes a participant on or after |
16 | | January 1, 2011 (the effective date of Public Act 96-889) |
17 | | shall, in January or July next following the first anniversary |
18 | | of retirement, whichever occurs first, and in the same month of |
19 | | each year thereafter, but in no event prior to age 67, have the |
20 | | amount of the retirement annuity then being paid increased by |
21 | | 3% or the annual unadjusted percentage increase in the Consumer |
22 | | Price Index for All Urban Consumers as determined by the Public |
23 | | Pension Division of the Department of Insurance under |
24 | | subsection (a) of Section 2-108.1, whichever is less. |
25 | | (c) The foregoing provisions relating to automatic |
26 | | increases are not
applicable to a participant who retires |
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1 | | before having made contributions
(at the rate prescribed in |
2 | | Section 2-126) for automatic increases for less
than the |
3 | | equivalent of one full year. However, in order to be eligible |
4 | | for
the automatic increases, such a participant may make |
5 | | arrangements to pay
to the system the amount required to bring |
6 | | the total contributions for the
automatic increase to the |
7 | | equivalent of one year's contributions based upon
his or her |
8 | | last salary.
|
9 | | (d) A participant who terminated service prior to July 1, |
10 | | 1967, with at
least 14 years of service is entitled to an |
11 | | increase in retirement annuity
beginning January, 1976, and to |
12 | | additional increases in January of each
year thereafter.
|
13 | | The initial increase shall be 1 1/2% of the originally |
14 | | granted retirement
annuity multiplied by the number of full |
15 | | years that the annuitant was in
receipt of such annuity prior |
16 | | to January 1, 1972, plus 2% of the originally
granted |
17 | | retirement annuity for each year after that date. The |
18 | | subsequent
annual increases shall be at the rate of 2% of the |
19 | | originally granted
retirement annuity for each year through |
20 | | 1979 and at the rate of 3% for
1980 and thereafter.
|
21 | | (e) Beginning January 1, 1990, and except as provided in |
22 | | subsection (a-1), all automatic annual increases payable
under |
23 | | this Section shall be calculated as a percentage of the total |
24 | | annuity
payable at the time of the increase, including previous |
25 | | increases granted
under this Article.
|
26 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
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1 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
|
2 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
3 | | which has been
held unconstitutional)
|
4 | | Sec. 2-124. Contributions by State.
|
5 | | (a) The State shall make contributions to the System by
|
6 | | appropriations of amounts which, together with the |
7 | | contributions of
participants, interest earned on investments, |
8 | | and other income
will meet the cost of maintaining and |
9 | | administering the System on a 90%
funded basis in accordance |
10 | | with actuarial recommendations.
|
11 | | (b) The Board shall determine the amount of State
|
12 | | contributions required for each fiscal year on the basis of the
|
13 | | actuarial tables and other assumptions adopted by the Board and |
14 | | the
prescribed rate of interest, using the formula in |
15 | | subsection (c).
|
16 | | (c) For State fiscal years 2018 through 2045 (except as |
17 | | otherwise provided for fiscal year 2019), the minimum |
18 | | contribution to the System to be made by the State for each |
19 | | fiscal year shall be an amount determined by the System to be |
20 | | sufficient to bring the total assets of the System up to 90% of |
21 | | the total actuarial liabilities of the System by the end of |
22 | | State fiscal year 2045. In making these determinations, the |
23 | | required State contribution shall be calculated each year as a |
24 | | level percentage of total payroll, including payroll that is |
25 | | not deemed pensionable, but excluding payroll attributable to |
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1 | | participants in the defined contribution plan under Section |
2 | | 2-165.1, over the years remaining to and including fiscal year |
3 | | 2045 and shall be determined under the projected unit credit |
4 | | actuarial cost method. |
5 | | For State fiscal year 2019: |
6 | | (1) The initial calculation and certification shall be |
7 | | based on the amount determined above. |
8 | | (2) For purposes of the recertification due on or |
9 | | before May 1, 2018, the recalculation of the required State |
10 | | contribution for fiscal year 2019 shall take into account |
11 | | the effect on the System's liabilities of the elections |
12 | | made under Section 2-110.3. |
13 | | (3) For purposes of the recertification due on or |
14 | | before October 1, 2018, the total required State |
15 | | contribution for fiscal year 2019 shall be reduced by the |
16 | | amount of the consideration payments made to Tier 1 |
17 | | employees who made the election under paragraph (1) of |
18 | | subsection (a) of Section 2-110.3. |
19 | | Beginning in State fiscal year 2018, any increase or |
20 | | decrease in State contribution over the prior fiscal year due |
21 | | exclusively to changes in actuarial or investment assumptions |
22 | | adopted by the Board shall be included in the State |
23 | | contribution to the System, as a percentage of the applicable |
24 | | employee payroll, and shall be increased in equal annual |
25 | | increments so that by the State fiscal year occurring 5 years |
26 | | after the adoption of the actuarial or investment assumptions, |
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1 | | the State is contributing at the rate otherwise required under |
2 | | this Section. |
3 | | For State fiscal years 2012 through 2017 2045 , 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 payroll
over the years remaining to and |
11 | | including fiscal year 2045 and shall be
determined under the |
12 | | projected unit credit actuarial cost method.
|
13 | | For State fiscal years 1996 through 2005, the State |
14 | | contribution to
the System, as a percentage of the applicable |
15 | | employee payroll, shall be
increased in equal annual increments |
16 | | so that by State fiscal year 2011, the
State is contributing at |
17 | | the rate required under this Section.
|
18 | | Notwithstanding any other provision of this Article, the |
19 | | total required State
contribution for State fiscal year 2006 is |
20 | | $4,157,000.
|
21 | | Notwithstanding any other provision of this Article, the |
22 | | total required State
contribution for State fiscal year 2007 is |
23 | | $5,220,300.
|
24 | | For each of State fiscal years 2008 through 2009, 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 | | from the required State contribution for State fiscal year |
2 | | 2007, so that by State fiscal year 2011, the
State is |
3 | | contributing at the rate otherwise required under this Section.
|
4 | | Notwithstanding any other provision of this Article, the |
5 | | total required State contribution for State fiscal year 2010 is |
6 | | $10,454,000 and shall be made from the proceeds of bonds sold |
7 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
8 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
9 | | expenses determined by the System's share of total bond |
10 | | proceeds, (ii) any amounts received from the General Revenue |
11 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
12 | | proceeds due to the issuance of discounted bonds, if |
13 | | applicable. |
14 | | Notwithstanding any other provision of this Article, the
|
15 | | total required State contribution for State fiscal year 2011 is
|
16 | | the amount recertified by the System on or before April 1, 2011 |
17 | | pursuant to Section 2-134 and shall be made from the proceeds |
18 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
19 | | the General
Obligation Bond Act, less (i) the pro rata share of |
20 | | bond sale
expenses determined by the System's share of total |
21 | | bond
proceeds, (ii) any amounts received from the General |
22 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
23 | | bond
proceeds due to the issuance of discounted bonds, if
|
24 | | applicable. |
25 | | Beginning in State fiscal year 2046, the minimum State |
26 | | contribution for
each fiscal year shall be the amount needed to |
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1 | | maintain the total assets of
the System at 90% of the total |
2 | | actuarial liabilities of the System.
|
3 | | Amounts received by the System pursuant to Section 25 of |
4 | | the Budget Stabilization Act or Section 8.12 of the State |
5 | | Finance Act in any fiscal year do not reduce and do not |
6 | | constitute payment of any portion of the minimum State |
7 | | contribution required under this Article in that fiscal year. |
8 | | Such amounts shall not reduce, and shall not be included in the |
9 | | calculation of, the required State contributions under this |
10 | | Article in any future year until the System has reached a |
11 | | funding ratio of at least 90%. A reference in this Article to |
12 | | the "required State contribution" or any substantially similar |
13 | | term does not include or apply to any amounts payable to the |
14 | | System under Section 25 of the Budget Stabilization Act.
|
15 | | Notwithstanding any other provision of this Section, the |
16 | | required State
contribution for State fiscal year 2005 and for |
17 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
18 | | under this Section and
certified under Section 2-134, shall not |
19 | | exceed an amount equal to (i) the
amount of the required State |
20 | | contribution that would have been calculated under
this Section |
21 | | for that fiscal year if the System had not received any |
22 | | payments
under subsection (d) of Section 7.2 of the General |
23 | | Obligation Bond Act, minus
(ii) the portion of the State's |
24 | | total debt service payments for that fiscal
year on the bonds |
25 | | issued in fiscal year 2003 for the purposes of that Section |
26 | | 7.2, as determined
and certified by the Comptroller, that is |
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1 | | the same as the System's portion of
the total moneys |
2 | | distributed under subsection (d) of Section 7.2 of the General
|
3 | | Obligation Bond Act. In determining this maximum for State |
4 | | fiscal years 2008 through 2010, however, the amount referred to |
5 | | in item (i) shall be increased, as a percentage of the |
6 | | applicable employee payroll, in equal increments calculated |
7 | | from the sum of the required State contribution for State |
8 | | fiscal year 2007 plus the applicable portion of the State's |
9 | | total debt service payments for fiscal year 2007 on the bonds |
10 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
11 | | the General
Obligation Bond Act, so that, by State fiscal year |
12 | | 2011, the
State is contributing at the rate otherwise required |
13 | | under this Section.
|
14 | | (d) For purposes of determining the required State |
15 | | contribution to the System, the value of the System's assets |
16 | | shall be equal to the actuarial value of the System's assets, |
17 | | which shall be calculated as follows: |
18 | | As of June 30, 2008, the actuarial value of the System's |
19 | | assets shall be equal to the market value of the assets as of |
20 | | that date. In determining the actuarial value of the System's |
21 | | assets for fiscal years after June 30, 2008, any actuarial |
22 | | gains or losses from investment return incurred in a fiscal |
23 | | year shall be recognized in equal annual amounts over the |
24 | | 5-year period following that fiscal year. |
25 | | (e) For purposes of determining the required State |
26 | | contribution to the system for a particular year, the actuarial |
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1 | | value of assets shall be assumed to earn a rate of return equal |
2 | | to the system's actuarially assumed rate of return. |
3 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
4 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
5 | | 7-13-12.)
|
6 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
|
7 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
8 | | which has been
held unconstitutional)
|
9 | | Sec. 2-126. Contributions by participants.
|
10 | | (a) Each participant shall contribute toward the cost of |
11 | | his or her
retirement annuity a percentage of each payment of |
12 | | salary received by him or
her for service as a member as |
13 | | follows: for service between October 31, 1947
and January 1, |
14 | | 1959, 5%; for service between January 1, 1959 and June 30, |
15 | | 1969,
6%; for service between July 1, 1969 and January 10, |
16 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
17 | | service after December 31, 1981, 8 1/2%.
|
18 | | (b) Beginning August 2, 1949, each male participant, and |
19 | | from July 1,
1971, each female participant shall contribute |
20 | | towards the cost of the
survivor's annuity 2% of salary.
|
21 | | A participant who has no eligible survivor's annuity |
22 | | beneficiary may elect
to cease making contributions for |
23 | | survivor's annuity under this subsection.
A survivor's annuity |
24 | | shall not be payable upon the death of a person who has
made |
25 | | this election, unless prior to that death the election has been |
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1 | | revoked
and the amount of the contributions that would have |
2 | | been paid under this
subsection in the absence of the election |
3 | | is paid to the System, together
with interest at the rate of 4% |
4 | | per year from the date the contributions
would have been made |
5 | | to the date of payment.
|
6 | | (c) Beginning July 1, 1967, each participant shall |
7 | | contribute 1% of
salary towards the cost of automatic increase |
8 | | in annuity provided in
Section 2-119.1. These contributions |
9 | | shall be made concurrently with
contributions for retirement |
10 | | annuity purposes.
|
11 | | (d) In addition, each participant serving as an officer of |
12 | | the General
Assembly shall contribute, for the same purposes |
13 | | and at the same rates
as are required of a regular participant, |
14 | | on each additional payment
received as an officer. If the |
15 | | participant serves as an
officer for at least 2 but less than 4 |
16 | | years, he or she shall
contribute an amount equal to the amount |
17 | | that would have been contributed
had the participant served as |
18 | | an officer for 4 years. Persons who serve
as officers in the |
19 | | 87th General Assembly but cannot receive the additional
payment |
20 | | to officers because of the ban on increases in salary during |
21 | | their
terms may nonetheless make contributions based on those |
22 | | additional payments
for the purpose of having the additional |
23 | | payments included in their highest
salary for annuity purposes; |
24 | | however, persons electing to make these
additional |
25 | | contributions must also pay an amount representing the
|
26 | | corresponding employer contributions, as calculated by the |
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1 | | System.
|
2 | | (e) Notwithstanding any other provision of this Article, |
3 | | the required contribution of a participant who first becomes a |
4 | | participant on or after January 1, 2011 shall not exceed the |
5 | | contribution that would be due under this Article if that |
6 | | participant's highest salary for annuity purposes were |
7 | | $106,800, plus any increases in that amount under Section |
8 | | 2-108.1. |
9 | | (f) Beginning July 1, 2018 or the effective date of the |
10 | | Tier 1 employee's election under paragraph (1) of subsection |
11 | | (a) of Section 2-110.3, whichever is later, in lieu of the |
12 | | contributions otherwise required under this Section, each Tier |
13 | | 1 employee who made the election under paragraph (1) of |
14 | | subsection (a) of Section 2-110.3 shall contribute 8.5% of each |
15 | | payment of salary toward the cost of his or her retirement |
16 | | annuity and 1.85% of each payment of salary toward the cost of |
17 | | the survivor's annuity. |
18 | | (g) Notwithstanding subsection (f) of this Section, |
19 | | beginning July 1, 2018 or the effective date of the Tier 1 |
20 | | employee's election under paragraph (1) of subsection (a) of |
21 | | 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 and has elected to cease |
25 | | making contributions for survivor's annuity under subsection |
26 | | (b) of this Section, shall contribute 8.55% of each payment of |
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1 | | salary toward the cost of his or her retirement annuity. |
2 | | (Source: P.A. 96-1490, eff. 1-1-11.)
|
3 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
|
4 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
5 | | which has been
held unconstitutional)
|
6 | | Sec. 2-134. To certify required State contributions and |
7 | | submit vouchers.
|
8 | | (a) The Board shall certify to the Governor on or before |
9 | | December 15 of each
year until December 15, 2011 the amount of |
10 | | the required State contribution to the System for the next
|
11 | | fiscal year and shall specifically identify the System's |
12 | | projected State normal cost for that fiscal year. The |
13 | | certification shall include a copy of the actuarial
|
14 | | recommendations upon which it is based and shall specifically |
15 | | identify the System's projected State normal cost for that |
16 | | fiscal year.
|
17 | | On or before November 1 of each year, beginning November 1, |
18 | | 2012, the Board shall submit to the State Actuary, the |
19 | | Governor, and the General Assembly a proposed certification of |
20 | | the amount of the required State contribution to the System for |
21 | | the next fiscal year, along with all of the actuarial |
22 | | assumptions, calculations, and data upon which that proposed |
23 | | certification is based. On or before January 1 of each year |
24 | | beginning January 1, 2013, the State Actuary shall issue a |
25 | | preliminary report concerning the proposed certification and |
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1 | | identifying, if necessary, recommended changes in actuarial |
2 | | assumptions that the Board must consider before finalizing its |
3 | | certification of the required State contributions. On or before |
4 | | January 15, 2013 and every January 15 thereafter, the Board |
5 | | shall certify to the Governor and the General Assembly the |
6 | | amount of the required State contribution for the next fiscal |
7 | | year. The Board's certification must note any deviations from |
8 | | the State Actuary's recommended changes, the reason or reasons |
9 | | for not following the State Actuary's recommended changes, and |
10 | | the fiscal impact of not following the State Actuary's |
11 | | recommended changes on the required State contribution. |
12 | | On or before May 1, 2004, 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 2005, taking |
15 | | into account the amounts appropriated to and
received by the |
16 | | System under subsection (d) of Section 7.2 of the General
|
17 | | Obligation Bond Act.
|
18 | | On or before July 1, 2005, the Board shall recalculate and |
19 | | recertify
to the Governor the amount of the required State
|
20 | | contribution to the System for State fiscal year 2006, taking |
21 | | into account the changes in required State contributions made |
22 | | by this amendatory Act of the 94th General Assembly.
|
23 | | On or before April 1, 2011, the Board shall recalculate and |
24 | | recertify to the Governor the amount of the required State |
25 | | contribution to the System for State fiscal year 2011, applying |
26 | | the changes made by Public Act 96-889 to the System's assets |
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1 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
2 | | was approved on that date. |
3 | | As soon as practical after the effective date of this |
4 | | amendatory Act of the 100th General Assembly, the Board shall |
5 | | recalculate and recertify to the State Actuary, the Governor, |
6 | | and the General Assembly the amount of the State contribution |
7 | | to the System for State fiscal year 2018, taking into account |
8 | | the changes in required State contributions made by this |
9 | | amendatory Act of the 100th General Assembly. The State Actuary |
10 | | shall review the assumptions and valuations underlying the |
11 | | Board's revised certification and issue a preliminary report |
12 | | concerning the proposed recertification and identifying, if |
13 | | necessary, recommended changes in actuarial assumptions that |
14 | | the Board must consider before finalizing its certification of |
15 | | the required State contributions. The Board's final |
16 | | certification must note any deviations from the State Actuary's |
17 | | recommended changes, the reason or reasons for not following |
18 | | the State Actuary's recommended changes, and the fiscal impact |
19 | | of not following the State Actuary's recommended changes on the |
20 | | required State contribution. |
21 | | On or before May 1, 2018, the Board shall recalculate and |
22 | | recertify
to the Governor and the General Assembly the amount |
23 | | of the required State
contribution to the System for State |
24 | | fiscal year 2019, taking into account the effect on the |
25 | | System's liabilities of the elections made under Section |
26 | | 2-110.3. |
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1 | | On or before October 1, 2018, the Board shall recalculate |
2 | | and recertify to the Governor and the General Assembly the |
3 | | amount of the required State contribution to the System for |
4 | | State fiscal year 2019, taking into account the reduction |
5 | | specified under item (3) of subsection (c) of Section 2-124. |
6 | | (b) Beginning in State fiscal year 1996, on or as soon as |
7 | | possible after the
15th day of each month the Board shall |
8 | | submit vouchers for payment of State
contributions to the |
9 | | System, in a total monthly amount of one-twelfth of the
|
10 | | required annual State contribution certified under subsection |
11 | | (a).
From the effective date of this amendatory Act
of the 93rd |
12 | | General Assembly through June 30, 2004, the Board shall not
|
13 | | submit vouchers for the remainder of fiscal year 2004 in excess |
14 | | of the
fiscal year 2004 certified contribution amount |
15 | | determined
under this Section after taking into consideration |
16 | | the transfer to the
System under subsection (d) of Section |
17 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
18 | | the State Comptroller and Treasurer by warrants drawn
on the |
19 | | funds appropriated to the System for that fiscal year. If in |
20 | | any month
the amount remaining unexpended from all other |
21 | | appropriations to the System for
the applicable fiscal year |
22 | | (including the appropriations to the System under
Section 8.12 |
23 | | of the State Finance Act and Section 1 of the State Pension |
24 | | Funds
Continuing Appropriation Act) is less than the amount |
25 | | lawfully vouchered under
this Section, the difference shall be |
26 | | paid from the General Revenue Fund under
the continuing |
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1 | | appropriation authority provided in Section 1.1 of the State
|
2 | | Pension Funds Continuing Appropriation Act.
|
3 | | (c) The full amount of any annual appropriation for the |
4 | | System for
State fiscal year 1995 shall be transferred and made |
5 | | available to the System
at the beginning of that fiscal year at |
6 | | the request of the Board.
Any excess funds remaining at the end |
7 | | of any fiscal year from appropriations
shall be retained by the |
8 | | System as a general reserve to meet the System's
accrued |
9 | | liabilities.
|
10 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
11 | | 97-694, eff. 6-18-12.)
|
12 | | (40 ILCS 5/2-162) |
13 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
14 | | which has been
held unconstitutional)
|
15 | | Sec. 2-162. Application and expiration of new benefit |
16 | | increases. |
17 | | (a) As used in this Section, "new benefit increase" means |
18 | | an increase in the amount of any benefit provided under this |
19 | | Article, or an expansion of the conditions of eligibility for |
20 | | any benefit under this Article, that results from an amendment |
21 | | to this Code that takes effect after the effective date of this |
22 | | amendatory Act of the 94th General Assembly. "New benefit |
23 | | increase", however, does not include any benefit increase |
24 | | resulting from the changes made to this Article by this |
25 | | amendatory Act of the 100th General Assembly. |
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1 | | (b) Notwithstanding any other provision of this Code or any |
2 | | subsequent amendment to this Code, every new benefit increase |
3 | | is subject to this Section and shall be deemed to be granted |
4 | | only in conformance with and contingent upon compliance with |
5 | | the provisions of this Section.
|
6 | | (c) The Public Act enacting a new benefit increase must |
7 | | identify and provide for payment to the System of additional |
8 | | funding at least sufficient to fund the resulting annual |
9 | | increase in cost to the System as it accrues. |
10 | | Every new benefit increase is contingent upon the General |
11 | | Assembly providing the additional funding required under this |
12 | | subsection. The Commission on Government Forecasting and |
13 | | Accountability shall analyze whether adequate additional |
14 | | funding has been provided for the new benefit increase and |
15 | | shall report its analysis to the Public Pension Division of the |
16 | | Department of Insurance Financial and Professional Regulation . |
17 | | A new benefit increase created by a Public Act that does not |
18 | | include the additional funding required under this subsection |
19 | | is null and void. If the Public Pension Division determines |
20 | | that the additional funding provided for a new benefit increase |
21 | | under this subsection is or has become inadequate, it may so |
22 | | certify to the Governor and the State Comptroller and, in the |
23 | | absence of corrective action by the General Assembly, the new |
24 | | benefit increase shall expire at the end of the fiscal year in |
25 | | which the certification is made.
|
26 | | (d) Every new benefit increase shall expire 5 years after |
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1 | | its effective date or on such earlier date as may be specified |
2 | | in the language enacting the new benefit increase or provided |
3 | | under subsection (c). This does not prevent the General |
4 | | Assembly from extending or re-creating a new benefit increase |
5 | | by law. |
6 | | (e) Except as otherwise provided in the language creating |
7 | | the new benefit increase, a new benefit increase that expires |
8 | | under this Section continues to apply to persons who applied |
9 | | and qualified for the affected benefit while the new benefit |
10 | | increase was in effect and to the affected beneficiaries and |
11 | | alternate payees of such persons, but does not apply to any |
12 | | other person, including without limitation a person who |
13 | | continues in service after the expiration date and did not |
14 | | apply and qualify for the affected benefit while the new |
15 | | benefit increase was in effect.
|
16 | | (Source: P.A. 94-4, eff. 6-1-05.) |
17 | | (40 ILCS 5/2-165.1 new) |
18 | | Sec. 2-165.1. Defined contribution plan. |
19 | | (a) By July 1, 2018, the System shall prepare and implement |
20 | | a voluntary defined contribution plan for up to 5% of eligible |
21 | | active Tier 1 employees. The System shall determine the 5% cap |
22 | | by the number of active Tier 1 employees on the effective date |
23 | | of this Section. The defined contribution plan developed under |
24 | | this Section shall be a plan that aggregates employer and |
25 | | employee contributions in individual participant accounts |
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1 | | which, after meeting any other requirements, are used for |
2 | | payouts after retirement in accordance with this Section and |
3 | | any other applicable laws. |
4 | | As used in this Section, "defined benefit plan" means the |
5 | | retirement plan available under this Article to Tier 1 |
6 | | employees who have not made the election authorized under this |
7 | | Section. |
8 | | (1) Under the defined contribution plan, an active
Tier |
9 | | 1 employee of this System could elect to cease accruing |
10 | | benefits in the defined benefit plan under this Article and |
11 | | begin accruing benefits for future service in the defined |
12 | | contribution plan. Service credit under the defined |
13 | | contribution plan may be used for determining retirement |
14 | | eligibility under the defined benefit plan. |
15 | | (2) Participants in the defined contribution plan
|
16 | | shall pay employee contributions at the same rate as Tier 1 |
17 | | employees in this System who do not participate in the |
18 | | defined contribution plan. |
19 | | (3) State contributions shall be paid into the
accounts |
20 | | of all participants in the defined contribution plan at a |
21 | | uniform rate, expressed as a percentage of compensation and |
22 | | determined for each year. This rate shall be no higher than |
23 | | the employer's normal cost for Tier 1 employees in the |
24 | | defined benefit plan for that year, as determined by the |
25 | | System and expressed as a percentage of compensation, and |
26 | | shall be no lower than 3% of compensation. The State shall |
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1 | | adjust this rate annually. |
2 | | (4) The defined contribution plan shall require 5
years |
3 | | of participation in the defined contribution plan before |
4 | | vesting in State contributions. If the participant fails to |
5 | | vest in them, the State contributions, and the earnings |
6 | | thereon, shall be forfeited. |
7 | | (5) The defined contribution plan may provide for
|
8 | | participants in the plan to be eligible for defined |
9 | | disability benefits. If it does, the System shall reduce |
10 | | the employee contributions credited to the participant's |
11 | | defined contribution plan account by an amount determined |
12 | | by the System to cover the cost of offering such benefits. |
13 | | (6) The defined contribution plan shall provide a
|
14 | | variety of options for investments. These options shall |
15 | | include investments handled by the Illinois State Board of |
16 | | Investment as well as private sector investment options. |
17 | | (7) The defined contribution plan shall provide a
|
18 | | variety of options for payouts to retirees and their |
19 | | survivors. |
20 | | (8) To the extent authorized under federal law and
as |
21 | | authorized by the System, the plan shall allow former |
22 | | participants in the plan to transfer or roll over employee |
23 | | and vested State contributions, and the earnings thereon, |
24 | | into other qualified retirement plans. |
25 | | (9) The System shall reduce the employee
contributions |
26 | | credited to the participant's defined contribution plan |
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1 | | account by an amount determined by the System to cover the |
2 | | cost of offering these benefits and any applicable |
3 | | administrative fees. |
4 | | (b) Only persons who are active Tier 1 employees of the |
5 | | System on the effective date of this Section are eligible to |
6 | | participate in the defined contribution plan. Participation in |
7 | | the defined contribution plan shall be limited to the first 5% |
8 | | of eligible persons who elect to participate. The election to |
9 | | participate in the defined contribution plan is voluntary and |
10 | | irrevocable. |
11 | | (c) An eligible active Tier 1 employee may irrevocably |
12 | | elect to participate in the defined contribution plan by filing |
13 | | with the System a written application to participate that is |
14 | | received by the System prior to its determination that 5% of |
15 | | eligible persons have elected to participate in the defined |
16 | | contribution plan. |
17 | | When the System first determines that 5% of eligible |
18 | | persons have elected to participate in the defined contribution |
19 | | plan, the System shall provide notice to previously eligible |
20 | | employees that the plan is no longer available and shall cease |
21 | | accepting applications to participate. |
22 | | (d) The System shall make a good faith effort to contact |
23 | | each active Tier 1 employee who is eligible to participate in |
24 | | the defined contribution plan. The System shall mail |
25 | | information describing the option to join the defined |
26 | | contribution plan to each of these employees to his or her last |
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1 | | known address on file with the System. If the employee is not |
2 | | responsive to other means of contact, it is sufficient for the |
3 | | System to publish the details of the option on its website. |
4 | | Upon request for further information describing the |
5 | | option, the System shall provide employees with information |
6 | | from the System before exercising the option to join the plan, |
7 | | including information on the impact to their vested benefits or |
8 | | non-vested service. The individual consultation shall include |
9 | | projections of the participant's defined benefits at |
10 | | retirement or earlier termination of service and the value of |
11 | | the participant's account at retirement or earlier termination |
12 | | of service. The System shall not provide advice or counseling |
13 | | with respect to whether the employee should exercise the |
14 | | option. The System shall inform Tier 1 employees who are |
15 | | eligible to participate in the defined contribution plan that |
16 | | they may also wish to obtain information and counsel relating |
17 | | to their option from any other available source, including but |
18 | | not limited to labor organizations, private counsel, and |
19 | | financial advisors. |
20 | | (e) In no event shall the System, its staff, its authorized |
21 | | representatives, or the Board be liable for any information |
22 | | given to an employee under this Section. The System may |
23 | | coordinate with the Illinois Department of Central Management |
24 | | Services and other retirement systems administering a defined |
25 | | contribution plan in accordance with this amendatory Act of the |
26 | | 100th General Assembly to provide information concerning the |
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1 | | impact of the option set forth in this Section. |
2 | | (f) Notwithstanding any other provision of this Section, no |
3 | | person shall begin participating in the defined contribution |
4 | | plan until it has attained qualified plan status and received |
5 | | all necessary approvals from the U.S. Internal Revenue Service. |
6 | | (g) The System shall report on its progress under this |
7 | | Section, including the available details of the defined |
8 | | contribution plan and the System's plans for informing eligible |
9 | | Tier 1 employees about the plan, to the Governor and the |
10 | | General Assembly on or before January 15, 2018. |
11 | | (h) The Illinois State Board of Investments shall be the |
12 | | plan sponsor for the defined contribution plan established |
13 | | under this Section. |
14 | | (i) The intent of this amendatory Act of the 100th General |
15 | | Assembly is to ensure that the State's normal cost of |
16 | | participation in the defined contribution plan is similar, and |
17 | | if possible equal, to the State's normal cost of participation |
18 | | in the defined benefit plan, unless a lower State's normal cost |
19 | | is necessary to ensure cost neutrality. |
20 | | (40 ILCS 5/2-166.1 new) |
21 | | Sec. 2-166.1. Defined contribution plan; termination. If |
22 | | the defined contribution plan is terminated or becomes |
23 | | inoperative pursuant to law, then each participant in the plan |
24 | | shall automatically be deemed to have been a contributing Tier |
25 | | 1 employee in the System's defined benefit plan during the time |
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1 | | in which he or she participated in the defined contribution |
2 | | plan, and for that purpose the System shall be entitled to |
3 | | recover the amounts in the participant's defined contribution |
4 | | accounts.
|
5 | | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
|
6 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
7 | | which has been
held unconstitutional)
|
8 | | Sec. 14-103.10. Compensation.
|
9 | | (a) For periods of service prior to January 1, 1978, the |
10 | | full rate of salary
or wages payable to an employee for |
11 | | personal services performed if he worked
the full normal |
12 | | working period for his position, subject to the following
|
13 | | maximum amounts: (1) prior to July 1, 1951, $400 per month or |
14 | | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 |
15 | | inclusive, $625 per month or $7,500
per year; (3) beginning |
16 | | July 1, 1957, no limitation.
|
17 | | In the case of service of an employee in a position |
18 | | involving
part-time employment, compensation shall be |
19 | | determined according to the
employees' earnings record.
|
20 | | (b) For periods of service on and after January 1, 1978, |
21 | | all
remuneration for personal services performed defined as |
22 | | "wages" under
the Social Security Enabling Act, including that |
23 | | part of such
remuneration which is in excess of any maximum |
24 | | limitation provided in
such Act, and including any benefits |
25 | | received by an employee under a sick
pay plan in effect before |
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1 | | January 1, 1981, but excluding lump sum salary
payments:
|
2 | | (1) for vacation,
|
3 | | (2) for accumulated unused sick leave,
|
4 | | (3) upon discharge or dismissal,
|
5 | | (4) for approved holidays.
|
6 | | (c) For periods of service on or after December 16, 1978, |
7 | | compensation
also includes any benefits, other than lump sum |
8 | | salary payments made at
termination of employment, which an |
9 | | employee receives or is eligible to
receive under a sick pay |
10 | | plan authorized by law.
|
11 | | (d) For periods of service after September 30, 1985, |
12 | | compensation also
includes any remuneration for personal |
13 | | services not included as "wages"
under the Social Security |
14 | | Enabling Act, which is deducted for purposes of
participation |
15 | | in a program established pursuant to Section 125 of the
|
16 | | Internal Revenue Code or its successor laws.
|
17 | | (e) For members for which Section 1-160 applies for periods |
18 | | of service on and after January 1, 2011, all remuneration for |
19 | | personal services performed defined as "wages" under the Social |
20 | | Security Enabling Act, excluding remuneration that is in excess |
21 | | of the annual earnings, salary, or wages of a member or |
22 | | participant, as provided in subsection (b-5) of Section 1-160, |
23 | | but including any benefits received by an employee under a sick |
24 | | pay plan in effect before January 1, 1981.
Compensation shall |
25 | | exclude lump sum salary payments: |
26 | | (1) for vacation; |
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1 | | (2) for accumulated unused sick leave; |
2 | | (3) upon discharge or dismissal; and |
3 | | (4) for approved holidays. |
4 | | (f) Notwithstanding the other provisions of this Section, |
5 | | for service on or after July 1, 2013, "compensation"
does not |
6 | | include any stipend payable to an employee for service on a |
7 | | board or commission. |
8 | | (g) Notwithstanding any other provision of this Section, |
9 | | "compensation" does not include any future increase in income |
10 | | that is offered for service by a department to a Tier 1 |
11 | | employee under this Article pursuant to the condition set forth |
12 | | in subsection (c) of Section 14-106.5 and accepted under that |
13 | | condition by a Tier 1 employee who has made the election under |
14 | | paragraph (2) of subsection (a) of Section 14-106.5. |
15 | | (h) Notwithstanding any other provision of this Section, |
16 | | "compensation" does not include any consideration payment made |
17 | | to a Tier 1 employee. |
18 | | (Source: P.A. 98-449, eff. 8-16-13.)
|
19 | | (40 ILCS 5/14-103.41 new) |
20 | | Sec. 14-103.41. Tier 1 employee. "Tier 1 employee": An |
21 | | employee under this Article who first became a member or |
22 | | participant before January 1, 2011 under any reciprocal |
23 | | retirement system or pension fund established under this Code |
24 | | other than a retirement system or pension fund established |
25 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. |
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1 | | (40 ILCS 5/14-103.42 new) |
2 | | Sec. 14-103.42. Future increase in income. "Future |
3 | | increase in income" means an increase to a Tier 1 employee's |
4 | | base pay that is offered by a department to the Tier 1 employee |
5 | | for service under this Article after June 30, 2019 that |
6 | | qualifies as "compensation", as defined in Section 14-103.10, |
7 | | or would qualify as "compensation" but for the fact that it was |
8 | | offered to and accepted by the Tier 1 employee under the |
9 | | condition set forth in subsection (c) of Section 14-106.5. The |
10 | | term "future increase in income" includes an increase to a Tier |
11 | | 1 employee's base pay that is paid to the Tier 1 employee |
12 | | pursuant to an extension, amendment, or renewal of any |
13 | | employment contract or collective bargaining agreement after |
14 | | the effective date of this Section. |
15 | | (40 ILCS 5/14-103.43 new) |
16 | | Sec. 14-103.43. Base pay. As used in Section 14-103.42 of |
17 | | this Code, "base pay" means the greater of either (i) the Tier |
18 | | 1 employee's annualized rate of compensation as of June 30, |
19 | | 2019, or (ii) the Tier 1 employee's annualized rate of |
20 | | compensation immediately preceding the expiration, renewal, or |
21 | | amendment of an employment contract or collective bargaining |
22 | | agreement in effect on the effective date of this Section. For |
23 | | a person returning to active service as a Tier 1 employee after |
24 | | June 30, 2019, however, "base pay" means the employee's |
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1 | | annualized rate of compensation as of the employee's last date |
2 | | of service prior to July 1, 2019. The System shall calculate |
3 | | the base pay of each Tier 1 employee pursuant to this Section. |
4 | | (40 ILCS 5/14-106.5 new) |
5 | | Sec. 14-106.5. Election by Tier 1 employees. |
6 | | (a) Each active Tier 1 employee shall make an irrevocable |
7 | | election either: |
8 | | (1) to agree to delay his or her eligibility for |
9 | | automatic annual increases in retirement annuity as |
10 | | provided in subsection (a-1) of Section 14-114 and to have |
11 | | the amount of the automatic annual increases in his or her |
12 | | retirement annuity and survivors or widow's annuity that |
13 | | are otherwise provided for in this Article calculated, |
14 | | instead, as provided in subsection (a-1) of Section 14-114; |
15 | | or |
16 | | (2) to not agree to paragraph (1) of this subsection. |
17 | | The election required under this subsection (a) shall be |
18 | | made by each active Tier 1 employee no earlier than January 1, |
19 | | 2019 and no later than March 31, 2019, except that: |
20 | | (i) a person who becomes a Tier 1 employee under this |
21 | | Article on or after January 1, 2019 must make the election |
22 | | under this subsection (a) within 60 days after becoming a |
23 | | Tier 1 employee; and |
24 | | (ii) a person who returns to active service as a Tier 1 |
25 | | employee under this Article on or after January 1, 2019 and |
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1 | | has not yet made an election under this Section must make |
2 | | the election under this subsection (a) within 60 days after |
3 | | returning to active service as a Tier 1 employee. |
4 | | If a Tier 1 employee fails for any reason to make a |
5 | | required election under this subsection within the time |
6 | | specified, then the employee shall be deemed to have made the |
7 | | election under paragraph (2) of this subsection. |
8 | | (a-5) If this Section is enjoined or stayed by an Illinois |
9 | | court or a court of competent jurisdiction pending the entry of |
10 | | a final and unappealable decision, and this Section is |
11 | | determined to be constitutional or otherwise valid by a final |
12 | | unappealable decision of an Illinois court or a court of |
13 | | competent jurisdiction, then the election procedure set forth |
14 | | in subsection (a) of this Section shall commence on the 180th |
15 | | calendar day after the date of the issuance of the final |
16 | | unappealable decision and shall conclude at the end of the |
17 | | 270th calendar day after that date. |
18 | | (a-10) All elections under subsection (a) that are made or |
19 | | deemed to be made before July 1, 2019 shall take effect on July |
20 | | 1, 2019. Elections that are made or deemed to be made on or |
21 | | after July 1, 2019 shall take effect on the first day of the |
22 | | month following the month in which the election is made or |
23 | | deemed to be made. |
24 | | (b) As adequate and legal consideration provided under this |
25 | | amendatory Act of the 100th General Assembly for making an |
26 | | election under paragraph (1) of subsection (a) of this Section, |
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1 | | the department shall be expressly and irrevocably prohibited |
2 | | from offering any future increases in income to a Tier 1 |
3 | | employee who has made an election under paragraph (1) of |
4 | | subsection (a) of this Section on the condition of not |
5 | | constituting compensation under Section 14-103.10. |
6 | | As adequate and legal consideration provided under this |
7 | | amendatory Act of the 100th General Assembly for making an |
8 | | election under paragraph (1) of subsection (a) of this Section, |
9 | | each Tier 1 employee who has made an election under paragraph |
10 | | (1) of subsection (a) of this Section shall receive a |
11 | | consideration payment equal to 10% of the contributions made by |
12 | | or on behalf of the employee before the effective date of that |
13 | | election. The State Comptroller shall pay the consideration |
14 | | payment to the Tier 1 employee out of funds appropriated for |
15 | | that purpose under Section 1.9 of the State Pension Funds |
16 | | Continuing Appropriation Act. The System shall calculate the |
17 | | amount of each consideration payment and, by July 1, 2019, |
18 | | shall 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. The System shall make |
22 | | additional calculations and certifications of consideration |
23 | | payments to the State Comptroller as it deems necessary. |
24 | | (c) A Tier 1 employee who makes the election under |
25 | | paragraph (2) of subsection (a) of this Section shall not be |
26 | | subject to paragraph (1) of subsection (a) of this Section. |
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1 | | However, each future increase in income offered by a department |
2 | | under this Article to a Tier 1 employee who has made the |
3 | | election under paragraph (2) of subsection (a) of this Section |
4 | | shall be offered by the department expressly and irrevocably on |
5 | | the condition of not constituting compensation under Section |
6 | | 14-103.10 and that the Tier 1 employee's acceptance of the |
7 | | offered future increase in income shall constitute his or her |
8 | | agreement to that condition. |
9 | | (d) The System shall make a good faith effort to contact |
10 | | each Tier 1 employee subject to this Section. The System shall |
11 | | mail information describing the required election to each Tier |
12 | | 1 employee by United States Postal Service mail to his or her |
13 | | last known address on file with the System. If the Tier 1 |
14 | | employee is not responsive to other means of contact, it is |
15 | | sufficient for the System to publish the details of any |
16 | | required elections on its website or to publish those details |
17 | | in a regularly published newsletter or other existing public |
18 | | forum. |
19 | | Tier 1 employees who are subject to this Section shall be |
20 | | provided with an election packet containing information |
21 | | regarding their options, as well as the forms necessary to make |
22 | | the required election. Upon request, the System shall offer |
23 | | Tier 1 employees an opportunity to receive information from the |
24 | | System before making the required election. The information may |
25 | | consist of video materials, group presentations, individual |
26 | | consultation with a member or authorized representative of the |
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1 | | System in person or by telephone or other electronic means, or |
2 | | any combination of those methods. The System shall not provide |
3 | | advice or counseling with respect to which election a Tier 1 |
4 | | employee should make or specific to the legal or tax |
5 | | circumstances of or consequences to the Tier 1 employee. |
6 | | The System shall inform Tier 1 employees in the election |
7 | | packet required under this subsection that the Tier 1 employee |
8 | | may also wish to obtain information and counsel relating to the |
9 | | election required under this Section from any other available |
10 | | source, including, but not limited to, labor organizations and |
11 | | private counsel. |
12 | | In no event shall the System, its staff, or the Board be |
13 | | held liable for any information given to a member regarding the |
14 | | elections under this Section. The System shall coordinate with |
15 | | the Illinois Department of Central Management Services and each |
16 | | other retirement system administering an election in |
17 | | accordance with this amendatory Act of the 100th General |
18 | | Assembly to provide information concerning the impact of the |
19 | | election set forth in this Section. |
20 | | (e) Notwithstanding any other provision of law, a |
21 | | department under this Article is required to offer each future |
22 | | increase in income expressly and irrevocably on the condition |
23 | | of not constituting "compensation" under Section 14-103.10 to |
24 | | any Tier 1 employee who has made an election under paragraph |
25 | | (2) of subsection (a) of this Section. The offer shall also |
26 | | provide that the Tier 1 employee's acceptance of the offered |
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1 | | future increase in income shall constitute his or her agreement |
2 | | to the condition set forth in this subsection. |
3 | | For purposes of legislative intent, the condition set forth |
4 | | in this subsection shall be construed in a manner that ensures |
5 | | that the condition is not violated or circumvented through any |
6 | | contrivance of any kind. |
7 | | (f) A member's election under this Section is not a |
8 | | prohibited election under subdivision (j)(1) of Section 1-119 |
9 | | of this Code. |
10 | | (g) No provision of this Section shall be interpreted in a |
11 | | way that would cause the System to cease to be a qualified plan |
12 | | under Section 401(a) of the Internal Revenue Code of 1986. The |
13 | | provisions of this Section shall be subject to and implemented |
14 | | in a manner that complies with Section 21 of Article V of the |
15 | | Illinois Constitution. |
16 | | (h) If an election created by this amendatory Act in any |
17 | | other Article of this Code or any change deriving from that |
18 | | election is determined to be unconstitutional or otherwise |
19 | | invalid by a final unappealable decision of an Illinois court |
20 | | or a court of competent jurisdiction, the invalidity of that |
21 | | provision shall not in any way affect the validity of this |
22 | | Section or the changes deriving from the election required |
23 | | under this Section.
|
24 | | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
|
25 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
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1 | | which has been held unconstitutional)
|
2 | | Sec. 14-114. Automatic increase in retirement annuity.
|
3 | | (a) Subject to the provisions of subsections (a-1), any Any |
4 | | person receiving a retirement annuity under this Article who
|
5 | | retires having attained age 60, or who retires before age 60 |
6 | | having at
least 35 years of creditable service, or who retires |
7 | | on or after January
1, 2001 at an age which, when added to the |
8 | | number of years of his or her
creditable service, equals at |
9 | | least 85, shall, on January 1 next
following the first full |
10 | | year of retirement, have the amount of the then fixed
and |
11 | | payable monthly retirement annuity increased 3%. Any person |
12 | | receiving a
retirement annuity under this Article who retires |
13 | | before attainment of age 60
and with less than (i) 35 years of |
14 | | creditable service if retirement
is before January 1, 2001, or |
15 | | (ii) the number of years of creditable service
which, when |
16 | | added to the member's age, would equal 85, if retirement is on
|
17 | | or after January 1, 2001, shall have the amount of the fixed |
18 | | and payable
retirement annuity increased by 3% on the January 1 |
19 | | occurring on or next
following (1) attainment of age 60, or (2) |
20 | | the first anniversary of retirement,
whichever occurs later. |
21 | | However, for persons who receive the alternative
retirement |
22 | | annuity under Section 14-110, references in this subsection (a) |
23 | | to
attainment of age 60 shall be deemed to refer to attainment |
24 | | of age 55. For a
person receiving early retirement incentives |
25 | | under Section 14-108.3 whose
retirement annuity began after |
26 | | January 1, 1992 pursuant to an extension granted
under |
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1 | | subsection (e) of that Section, the first anniversary of |
2 | | retirement shall
be deemed to be January 1, 1993.
For a person |
3 | | who retires on or after June 28, 2001 and on or before October |
4 | | 1, 2001,
and whose retirement annuity is calculated, in whole |
5 | | or in part, under Section
14-110 or subsection (g) or (h) of |
6 | | Section 14-108, the first anniversary of
retirement shall be |
7 | | deemed to be January 1, 2002.
|
8 | | On each January 1 following the date of the initial |
9 | | increase under this
subsection, the employee's monthly |
10 | | retirement annuity shall be increased
by an additional 3%.
|
11 | | Beginning January 1, 1990 , and except as provided in |
12 | | subsection (a-1) , all automatic annual increases payable under
|
13 | | this Section shall be calculated as a percentage of the total |
14 | | annuity
payable at the time of the increase, including previous |
15 | | increases granted
under this Article.
|
16 | | (a-1) Notwithstanding any other provision of this Article, |
17 | | for a Tier 1 employee who made the election under paragraph (1) |
18 | | of subsection (a) of Section 14-106.5: |
19 | | (1) The initial increase in retirement annuity under |
20 | | this Section shall occur on the January 1 occurring either |
21 | | on or after the attainment of age 67 or the fifth |
22 | | anniversary of the annuity start date, whichever is |
23 | | earlier. |
24 | | (2) The amount of each automatic annual increase in |
25 | | retirement annuity or survivors or widow's annuity |
26 | | occurring on or after the effective date of that election |
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1 | | shall be calculated as a percentage of the originally |
2 | | granted retirement annuity or survivors or widow's |
3 | | annuity, equal to 3% or one-half the annual unadjusted |
4 | | percentage increase (but not less than zero) in the |
5 | | consumer price index-u for the 12 months ending with the |
6 | | September preceding each November 1, whichever is less. If |
7 | | the annual unadjusted percentage change in the consumer |
8 | | price index-u for the 12 months ending with the September |
9 | | preceding each November 1 is zero or there is a decrease, |
10 | | then the annuity shall not be increased. |
11 | | For the purposes of this Section, "consumer price index-u" |
12 | | means
the index published by the Bureau of Labor Statistics of |
13 | | the United States
Department of Labor that measures the average |
14 | | change in prices of goods and
services purchased by all urban |
15 | | consumers, United States city average, all
items, 1982-84 = |
16 | | 100. The new amount resulting from each annual adjustment
shall |
17 | | be determined by the Public Pension Division of the Department |
18 | | of Insurance and made available to the board of the retirement |
19 | | system by November 1 of each year. |
20 | | (b) The provisions of subsection (a) of this Section shall |
21 | | be
applicable to an employee only if the employee makes the |
22 | | additional
contributions required after December 31, 1969 for |
23 | | the purpose of the
automatic increases for not less than the |
24 | | equivalent of one full year.
If an employee becomes an |
25 | | annuitant before his additional contributions
equal one full |
26 | | year's contributions based on his salary at the date of
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1 | | retirement, the employee may pay the necessary balance of the
|
2 | | contributions to the system, without interest, and be eligible |
3 | | for the
increasing annuity authorized by this Section.
|
4 | | (c) The provisions of subsection (a) of this Section shall |
5 | | not be
applicable to any annuitant who is on retirement on |
6 | | December 31, 1969, and
thereafter returns to State service, |
7 | | unless the member has established at
least one year of |
8 | | additional creditable service following reentry into service.
|
9 | | (d) In addition to other increases which may be provided by |
10 | | this Section,
on January 1, 1981 any annuitant who was |
11 | | receiving a retirement annuity
on or before January 1, 1971 |
12 | | shall have his retirement annuity then being
paid increased $1 |
13 | | per month for each year of creditable service. On January
1, |
14 | | 1982, any annuitant who began receiving a retirement annuity on |
15 | | or
before January 1, 1977, shall have his retirement annuity |
16 | | then being paid
increased $1 per month for each year of |
17 | | creditable service.
|
18 | | On January 1, 1987, any annuitant who began receiving a |
19 | | retirement
annuity on or before January 1, 1977, shall have the |
20 | | monthly retirement annuity
increased by an amount equal to 8¢ |
21 | | per year of creditable service times the
number of years that |
22 | | have elapsed since the annuity began.
|
23 | | (e) Every person who receives the alternative retirement |
24 | | annuity under
Section 14-110 and who is eligible to receive the |
25 | | 3% increase under subsection
(a) on January 1, 1986, shall also |
26 | | receive on that date a one-time increase
in retirement annuity |
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1 | | equal to the difference between (1) his actual
retirement |
2 | | annuity on that date, including any increases received under
|
3 | | subsection (a), and (2) the amount of retirement annuity he |
4 | | would have
received on that date if the amendments to |
5 | | subsection (a) made by Public
Act 84-162 had been in effect |
6 | | since the date of his retirement.
|
7 | | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
|
8 | | 92-651, eff. 7-11-02.)
|
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 (except as |
11 | | otherwise provided for fiscal year 2020), the minimum |
12 | | contribution to the System to be made by the State for each |
13 | | fiscal year shall be an amount determined by the System to be |
14 | | sufficient to bring the total assets of the System up to 90% of |
15 | | the total actuarial liabilities of the System by the end of |
16 | | State fiscal year 2045. In making these determinations, the |
17 | | required State contribution shall be calculated each year as a |
18 | | level percentage of total payroll, including payroll that is |
19 | | not deemed pensionable, over the years remaining to and |
20 | | including fiscal year 2045 and shall be determined under the |
21 | | projected unit credit actuarial cost method. |
22 | | For State fiscal year 2020: |
23 | | (1) The initial calculation and certification shall be |
24 | | based on the amount determined above. |
25 | | (2) For purposes of the recertification due on or |
26 | | before May 1, 2019, the recalculation of the required State |
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1 | | contribution for fiscal year 2020 shall take into account |
2 | | the effect on the System's liabilities of the elections |
3 | | made under Section 14-106.5. |
4 | | (3) For purposes of the recertification due on or |
5 | | before October 1, 2019, the total required State |
6 | | contribution for fiscal year 2020 shall be reduced by the |
7 | | amount of the consideration payments made to Tier 1 |
8 | | employees who made the election under paragraph (1) of |
9 | | subsection (a) of Section 14-106.5. |
10 | | Beginning in State fiscal year 2018, any increase or |
11 | | decrease in State contribution over the prior fiscal year due |
12 | | exclusively to changes in actuarial or investment assumptions |
13 | | adopted by the Board shall be included in the State |
14 | | contribution to the System, as a percentage of the applicable |
15 | | employee payroll, and shall be increased in equal annual |
16 | | increments so that by the State fiscal year occurring 5 years |
17 | | after the adoption of the actuarial or investment assumptions, |
18 | | the State is contributing at the rate otherwise required under |
19 | | this Section. |
20 | | For State fiscal years 2012 through 2017 2045 , the minimum |
21 | | contribution
to the System to be made by the State for each |
22 | | fiscal year shall be an amount
determined by the System to be |
23 | | sufficient to bring the total assets of the
System up to 90% of |
24 | | the total actuarial liabilities of the System by the end
of |
25 | | State fiscal year 2045. In making these determinations, the |
26 | | required State
contribution shall be calculated each year as a |
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1 | | level percentage of payroll
over the years remaining to and |
2 | | including fiscal year 2045 and shall be
determined under the |
3 | | projected unit credit actuarial cost method.
|
4 | | For State fiscal years 1996 through 2005, the State |
5 | | contribution to
the System, as a percentage of the applicable |
6 | | employee payroll, shall be
increased in equal annual increments |
7 | | so that by State fiscal year 2011, the
State is contributing at |
8 | | the rate required under this Section; except that
(i) for State |
9 | | fiscal year 1998, for all purposes of this Code and any other
|
10 | | law of this State, the certified percentage of the applicable |
11 | | employee payroll
shall be 5.052% for employees earning eligible |
12 | | creditable service under Section
14-110 and 6.500% for all |
13 | | other employees, notwithstanding any contrary
certification |
14 | | made under Section 14-135.08 before the effective date of this
|
15 | | amendatory Act of 1997, and (ii)
in the following specified |
16 | | State fiscal years, the State contribution to
the System shall |
17 | | not be less than the following indicated percentages of the
|
18 | | applicable employee payroll, even if the indicated percentage |
19 | | will produce a
State contribution in excess of the amount |
20 | | otherwise required under this
subsection and subsection (a):
|
21 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY |
22 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
|
23 | | Notwithstanding any other provision of this Article, the |
24 | | total required State
contribution to the System for State |
25 | | fiscal year 2006 is $203,783,900.
|
26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State
contribution to the System for State |
2 | | fiscal year 2007 is $344,164,400.
|
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 General Revenue Fund contribution for |
11 | | State fiscal year 2010 is $723,703,100 and shall be made from |
12 | | the proceeds of bonds sold in fiscal year 2010 pursuant to |
13 | | Section 7.2 of the General Obligation Bond Act, less (i) the |
14 | | pro rata share of bond sale expenses determined by the System's |
15 | | share of total bond proceeds, (ii) any amounts received from |
16 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
17 | | reduction in bond proceeds due to the issuance of discounted |
18 | | bonds, if applicable. |
19 | | Notwithstanding any other provision of this Article, the
|
20 | | total required State General Revenue Fund contribution for
|
21 | | State fiscal year 2011 is the amount recertified by the System |
22 | | on or before April 1, 2011 pursuant to Section 14-135.08 and |
23 | | shall be made from
the proceeds of bonds sold in fiscal year |
24 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond |
25 | | Act, less (i) the
pro rata share of bond sale expenses |
26 | | determined by the System's
share of total bond proceeds, (ii) |
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1 | | any amounts received from
the General Revenue Fund in fiscal |
2 | | year 2011, and (iii) any
reduction in bond proceeds due to the |
3 | | issuance of discounted
bonds, if applicable. |
4 | | Beginning in State fiscal year 2046, the minimum State |
5 | | contribution for
each fiscal year shall be the amount needed to |
6 | | maintain the total assets of
the System at 90% of the total |
7 | | actuarial liabilities of the System.
|
8 | | Amounts received by the System pursuant to Section 25 of |
9 | | the Budget Stabilization Act or Section 8.12 of the State |
10 | | Finance Act in any fiscal year do not reduce and do not |
11 | | constitute payment of any portion of the minimum State |
12 | | contribution required under this Article in that fiscal year. |
13 | | Such amounts shall not reduce, and shall not be included in the |
14 | | calculation of, the required State contributions under this |
15 | | Article in any future year until the System has reached a |
16 | | funding ratio of at least 90%. A reference in this Article to |
17 | | the "required State contribution" or any substantially similar |
18 | | term does not include or apply to any amounts payable to the |
19 | | System under Section 25 of the Budget Stabilization Act.
|
20 | | Notwithstanding any other provision of this Section, the |
21 | | required State
contribution for State fiscal year 2005 and for |
22 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
23 | | under this Section and
certified under Section 14-135.08, shall |
24 | | not exceed an amount equal to (i) the
amount of the required |
25 | | State contribution that would have been calculated under
this |
26 | | Section for that fiscal year if the System had not received any |
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1 | | payments
under subsection (d) of Section 7.2 of the General |
2 | | Obligation Bond Act, minus
(ii) the portion of the State's |
3 | | total debt service payments for that fiscal
year on the bonds |
4 | | issued in fiscal year 2003 for the purposes of that Section |
5 | | 7.2, as determined
and certified by the Comptroller, that is |
6 | | the same as the System's portion of
the total moneys |
7 | | distributed under subsection (d) of Section 7.2 of the General
|
8 | | Obligation Bond Act. In determining this maximum for State |
9 | | fiscal years 2008 through 2010, however, the amount referred to |
10 | | in item (i) shall be increased, as a percentage of the |
11 | | applicable employee payroll, in equal increments calculated |
12 | | from the sum of the required State contribution for State |
13 | | fiscal year 2007 plus the applicable portion of the State's |
14 | | total debt service payments for fiscal year 2007 on the bonds |
15 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
16 | | the General
Obligation Bond Act, so that, by State fiscal year |
17 | | 2011, the
State is contributing at the rate otherwise required |
18 | | under this Section.
|
19 | | (f) After the submission of all payments for eligible |
20 | | employees
from personal services line items in fiscal year 2004 |
21 | | have been made,
the Comptroller shall provide to the System a |
22 | | certification of the sum
of all fiscal year 2004 expenditures |
23 | | for personal services that would
have been covered by payments |
24 | | to the System under this Section if the
provisions of this |
25 | | amendatory Act of the 93rd General Assembly had not been
|
26 | | enacted. Upon
receipt of the certification, the System shall |
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1 | | determine the amount
due to the System based on the full rate |
2 | | certified by the Board under
Section 14-135.08 for fiscal year |
3 | | 2004 in order to meet the State's
obligation under this |
4 | | Section. The System shall compare this amount
due to the amount |
5 | | received by the System in fiscal year 2004 through
payments |
6 | | under this Section and under Section 6z-61 of the State Finance |
7 | | Act.
If the amount
due is more than the amount received, the |
8 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
9 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall |
10 | | shall be satisfied under Section 1.2 of the State
Pension Funds |
11 | | Continuing Appropriation Act. If the amount due is less than |
12 | | the
amount received, the
difference shall be termed the "Fiscal |
13 | | Year 2004 Overpayment" for purposes of
this Section, and the |
14 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
15 | | the Pension Contribution Fund as soon as practicable
after the |
16 | | certification.
|
17 | | (g) For purposes of determining the required State |
18 | | contribution to the System, the value of the System's assets |
19 | | shall be equal to the actuarial value of the System's assets, |
20 | | which shall be calculated as follows: |
21 | | As of June 30, 2008, the actuarial value of the System's |
22 | | assets shall be equal to the market value of the assets as of |
23 | | that date. In determining the actuarial value of the System's |
24 | | assets for fiscal years after June 30, 2008, any actuarial |
25 | | gains or losses from investment return incurred in a fiscal |
26 | | year shall be recognized in equal annual amounts over the |
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1 | | 5-year period following that fiscal year. |
2 | | (h) For purposes of determining the required State |
3 | | contribution to the System for a particular year, the actuarial |
4 | | value of assets shall be assumed to earn a rate of return equal |
5 | | to the System's actuarially assumed rate of return. |
6 | | (i) After the submission of all payments for eligible |
7 | | employees from personal services line items paid from the |
8 | | General Revenue Fund in fiscal year 2010 have been made, the |
9 | | Comptroller shall provide to the System a certification of the |
10 | | sum of all fiscal year 2010 expenditures for personal services |
11 | | that would have been covered by payments to the System under |
12 | | this Section if the provisions of this amendatory Act of the |
13 | | 96th General Assembly had not been enacted. Upon receipt of the |
14 | | certification, the System shall determine the amount due to the |
15 | | System based on the full rate certified by the Board under |
16 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
17 | | State's obligation under this Section. The System shall compare |
18 | | this amount due to the amount received by the System in fiscal |
19 | | year 2010 through payments under this Section. If the amount |
20 | | due is more than the amount received, the difference shall be |
21 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this |
22 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied |
23 | | under Section 1.2 of the State Pension Funds Continuing |
24 | | Appropriation Act. If the amount due is less than the amount |
25 | | received, the difference shall be termed the "Fiscal Year 2010 |
26 | | Overpayment" for purposes of this Section, and the Fiscal Year |
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1 | | 2010 Overpayment shall be repaid by the System to the General |
2 | | Revenue Fund as soon as practicable after the certification. |
3 | | (j) After the submission of all payments for eligible |
4 | | employees from personal services line items paid from the |
5 | | General Revenue Fund in fiscal year 2011 have been made, the |
6 | | Comptroller shall provide to the System a certification of the |
7 | | sum of all fiscal year 2011 expenditures for personal services |
8 | | that would have been covered by payments to the System under |
9 | | this Section if the provisions of this amendatory Act of the |
10 | | 96th General Assembly had not been enacted. Upon receipt of the |
11 | | certification, the System shall determine the amount due to the |
12 | | System based on the full rate certified by the Board under |
13 | | Section 14-135.08 for fiscal year 2011 in order to meet the |
14 | | State's obligation under this Section. The System shall compare |
15 | | this amount due to the amount received by the System in fiscal |
16 | | year 2011 through payments under this Section. If the amount |
17 | | due is more than the amount received, the difference shall be |
18 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this |
19 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied |
20 | | under Section 1.2 of the State Pension Funds Continuing |
21 | | Appropriation Act. If the amount due is less than the amount |
22 | | received, the difference shall be termed the "Fiscal Year 2011 |
23 | | Overpayment" for purposes of this Section, and the Fiscal Year |
24 | | 2011 Overpayment shall be repaid by the System to the General |
25 | | Revenue Fund as soon as practicable after the certification. |
26 | | (k) For fiscal years 2012 through 2017 only, after the |
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1 | | submission of all payments for eligible employees from personal |
2 | | services line items paid from the General Revenue Fund in the |
3 | | fiscal year have been made, the Comptroller shall provide to |
4 | | the System a certification of the sum of all expenditures in |
5 | | the fiscal year for personal services. Upon receipt of the |
6 | | certification, the System shall determine the amount due to the |
7 | | System based on the full rate certified by the Board under |
8 | | Section 14-135.08 for the fiscal year in order to meet the |
9 | | State's obligation under this Section. The System shall compare |
10 | | this amount due to the amount received by the System for the |
11 | | fiscal year. If the amount due is more than the amount |
12 | | received, the difference shall be termed the "Prior Fiscal Year |
13 | | Shortfall" for purposes of this Section, and the Prior Fiscal |
14 | | Year Shortfall shall be satisfied under Section 1.2 of the |
15 | | State Pension Funds Continuing Appropriation Act. If the amount |
16 | | due is less than the amount received, the difference shall be |
17 | | termed the "Prior Fiscal Year Overpayment" for purposes of this |
18 | | Section, and the Prior Fiscal Year Overpayment shall be repaid |
19 | | by the System to the General Revenue Fund as soon as |
20 | | practicable after the certification. |
21 | | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-8, |
22 | | eff. 7-9-15; 99-523, eff. 6-30-16.)
|
23 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
|
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. 14-133. Contributions on behalf of members.
|
2 | | (a) Except as provided in subsection (a-5), each Each |
3 | | participating employee shall make contributions to the System,
|
4 | | based on the employee's compensation, as follows:
|
5 | | (1) Covered employees, except as indicated below, 3.5% |
6 | | for
retirement annuity, and 0.5% for a widow or survivors
|
7 | | annuity;
|
8 | | (2) Noncovered employees, except as indicated below, |
9 | | 7% for retirement
annuity and 1% for a widow or survivors |
10 | | annuity;
|
11 | | (3) Noncovered employees serving in a position in which |
12 | | "eligible
creditable service" as defined in Section 14-110 |
13 | | may be earned, 1% for a widow
or survivors annuity
plus the |
14 | | following amount for retirement annuity: 8.5% through |
15 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
16 | | in 2004 and thereafter;
|
17 | | (4) Covered employees serving in a position in which |
18 | | "eligible creditable
service" as defined in Section 14-110 |
19 | | may be earned, 0.5% for a widow or survivors annuity
plus |
20 | | the following amount for retirement annuity: 5% through |
21 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 |
22 | | and thereafter;
|
23 | | (5) Each security employee of the Department of |
24 | | Corrections
or of the Department of Human Services who is a |
25 | | covered employee, 0.5% for a widow or survivors annuity
|
26 | | plus the following amount for retirement annuity: 5% |
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1 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
2 | | in 2004 and thereafter;
|
3 | | (6) Each security employee of the Department of |
4 | | Corrections
or of the Department of Human Services who is |
5 | | not a covered employee, 1% for a widow or survivors annuity
|
6 | | plus the following amount for retirement annuity: 8.5% |
7 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
8 | | 11.5% in 2004 and thereafter.
|
9 | | (a-5) Beginning July 1, 2019 or the effective date of the |
10 | | Tier 1 employee's election under paragraph (1) of subsection |
11 | | (a) of Section 14-106.5, whichever is later, in lieu of the |
12 | | contributions otherwise required under subsection (a), each |
13 | | Tier 1 employee who made the election under paragraph (1) of |
14 | | subsection (a) of Section 14-106.5 who is a participating |
15 | | employee shall make contributions to the System, based on his |
16 | | or her compensation, as follows: |
17 | | (1) Covered employees, except as indicated below,
|
18 | | 3.15% for retirement annuity, and 0.45% for a widow or |
19 | | survivors annuity; |
20 | | (2) Noncovered employees, except as indicated below,
|
21 | | 6.3% for retirement annuity and 0.9% for a widow or |
22 | | survivors annuity; |
23 | | (3) Noncovered employees serving in a position in
which |
24 | | "eligible creditable service" as defined in Section 14-110 |
25 | | may be earned, 10.35% for retirement annuity and 0.9% for a |
26 | | widow or survivors annuity; |
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1 | | (4) Covered employees serving in a position in which
|
2 | | "eligible creditable service" as defined in Section 14-110 |
3 | | may be earned, 7.2% for retirement annuity and 0.45% for a |
4 | | widow or survivors annuity; |
5 | | (5) Each security employee of the Department of
|
6 | | Corrections or of the Department of Human Services who is a |
7 | | covered employee, 10.8% for retirement annuity and 0.45% |
8 | | for a widow or survivors annuity; |
9 | | (6) Each security employee of the Department of
|
10 | | Corrections or of the Department of Human Services who is |
11 | | not a covered employee, 10.35% for retirement annuity and |
12 | | 0.9% for a widow or survivors annuity. |
13 | | (b) Contributions shall be in the form of a deduction from
|
14 | | compensation and shall be made notwithstanding that the |
15 | | compensation
paid in cash to the employee shall be reduced |
16 | | thereby below the minimum
prescribed by law or regulation. Each |
17 | | member is deemed to consent and
agree to the deductions from |
18 | | compensation provided for in this Article,
and shall receipt in |
19 | | full for salary or compensation.
|
20 | | (Source: P.A. 92-14, eff. 6-28-01.)
|
21 | | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
|
22 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
23 | | which has been held unconstitutional)
|
24 | | Sec. 14-135.08. To certify required State contributions. |
25 | | (a)
To certify to the Governor and to each department, on |
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1 | | or before
November 15 of each year until November 15, 2011, the |
2 | | required rate for State contributions to the
System for the |
3 | | next State fiscal year, as determined under subsection (b) of
|
4 | | Section 14-131. The certification to the Governor under this |
5 | | subsection (a) shall include a copy of the
actuarial |
6 | | recommendations upon which the rate is based and shall |
7 | | specifically identify the System's projected State normal cost |
8 | | for that fiscal year.
|
9 | | (a-5) On or before November 1 of each year, beginning |
10 | | November 1, 2012, the Board shall submit to the State Actuary, |
11 | | the Governor, and the General Assembly a proposed certification |
12 | | of the amount of the required State contribution to the System |
13 | | for the next fiscal year, along with all of the actuarial |
14 | | assumptions, calculations, and data upon which that proposed |
15 | | certification is based. On or before January 1 of each year |
16 | | beginning January 1, 2013, the State Actuary shall issue a |
17 | | preliminary report concerning the proposed certification and |
18 | | identifying, if necessary, recommended changes in actuarial |
19 | | assumptions that the Board must consider before finalizing its |
20 | | certification of the required State contributions. On or before |
21 | | January 15, 2013 and each January 15 thereafter, the Board |
22 | | shall certify to the Governor and the General Assembly the |
23 | | amount of the required State contribution for the next fiscal |
24 | | year. The Board's certification must note any deviations from |
25 | | the State Actuary's recommended changes, the reason or reasons |
26 | | for not following the State Actuary's recommended changes, and |
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1 | | the fiscal impact of not following the State Actuary's |
2 | | recommended changes on the required State contribution. |
3 | | (a-10) For purposes of subsection (c-5) of Section 20 of |
4 | | the
Budget Stabilization Act, on or before November 1 of each |
5 | | year
beginning November 1, 2019, the Board shall determine the
|
6 | | amount of the State contribution to the System that would have
|
7 | | been required for the next fiscal year if Section 1-161, |
8 | | Section 14-155.2, and the changes made to Section 1-160 by this |
9 | | amendatory Act of the 100th General Assembly had not taken |
10 | | effect, using the
best and most recent available data but based |
11 | | on the law in
effect on May 31, 2019. The Board shall submit to |
12 | | the State
Actuary, the Governor, and the General Assembly a |
13 | | proposed
certification, along with the relevant law, actuarial
|
14 | | assumptions, calculations, and data upon which that
|
15 | | certification is based. On or before January 1, 2020 and every |
16 | | January 1 thereafter, the State Actuary shall issue a
|
17 | | preliminary report concerning the proposed certification and
|
18 | | identifying, if necessary, recommended changes in actuarial
|
19 | | assumptions that the Board must consider before finalizing its
|
20 | | certification. On or before January 15, 2020 and every January
|
21 | | 1 thereafter, the Board shall certify to the Governor and the
|
22 | | General Assembly the amount of the State contribution to the
|
23 | | System that would have been required for the next fiscal year
|
24 | | if Section 1-161, Section 14-155.2, and the changes made to |
25 | | Section 1-160 by this amendatory Act of the 100th General |
26 | | Assembly had not taken effect, using the best and most recent |
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1 | | available data but
based on the law in effect on May 31, 2019. |
2 | | The Board's
certification must note any deviations from the |
3 | | State Actuary's
recommended changes, the reason or reasons for |
4 | | not following
the State Actuary's recommended changes, and the |
5 | | impact of not
following the State Actuary's recommended |
6 | | changes. |
7 | | (b) The certifications under subsections (a) and (a-5) |
8 | | shall include an additional amount necessary to pay all |
9 | | principal of and interest on those general obligation bonds due |
10 | | the next fiscal year authorized by Section 7.2(a) of the |
11 | | General Obligation Bond Act and issued to provide the proceeds |
12 | | deposited by the State with the System in July 2003, |
13 | | representing deposits other than amounts reserved under |
14 | | Section 7.2(c) of the General Obligation Bond Act. For State |
15 | | fiscal year 2005, the Board shall make a supplemental |
16 | | certification of the additional amount necessary to pay all |
17 | | principal of and interest on those general obligation bonds due |
18 | | in State fiscal years 2004 and 2005 authorized by Section |
19 | | 7.2(a) of the General Obligation Bond Act and issued to provide |
20 | | the proceeds deposited by the State with the System in July |
21 | | 2003, representing deposits other than amounts reserved under |
22 | | Section 7.2(c) of the General Obligation Bond Act, as soon as |
23 | | practical after the effective date of this amendatory Act of |
24 | | the 93rd General Assembly.
|
25 | | On or before May 1, 2004, the Board shall recalculate and |
26 | | recertify
to the Governor and to each department the amount of |
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1 | | the required State
contribution to the System and the required |
2 | | rates for State contributions
to the System for State fiscal |
3 | | year 2005, taking into account the amounts
appropriated to and |
4 | | received by the System under subsection (d) of Section
7.2 of |
5 | | the General Obligation Bond Act.
|
6 | | On or before July 1, 2005, the Board shall recalculate and |
7 | | recertify
to the Governor and to each department the amount of |
8 | | the required State
contribution to the System and the required |
9 | | rates for State contributions
to the System for State fiscal |
10 | | year 2006, taking into account the changes in required State |
11 | | contributions made by this amendatory Act of the 94th General |
12 | | Assembly.
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13 | | On or before April 1, 2011, the Board shall recalculate and |
14 | | recertify to the Governor and to each department the amount of |
15 | | the required State contribution to the System for State fiscal |
16 | | year 2011, applying the changes made by Public Act 96-889 to |
17 | | the System's assets and liabilities as of June 30, 2009 as |
18 | | though Public Act 96-889 was approved on that date. |
19 | | As soon as practical after the effective date of this |
20 | | amendatory Act of the 100th General Assembly, the Board shall |
21 | | recalculate and recertify to the State Actuary, the Governor, |
22 | | and the General Assembly the amount of the State contribution |
23 | | to the System for State fiscal year 2018, taking into account |
24 | | the changes in required State contributions made by this |
25 | | amendatory Act of the 100th General Assembly. The State Actuary |
26 | | shall review the assumptions and valuations underlying the |
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1 | | Board's revised certification and issue a preliminary report |
2 | | concerning the proposed recertification and identifying, if |
3 | | necessary, recommended changes in actuarial assumptions that |
4 | | the Board must consider before finalizing its certification of |
5 | | the required State contributions. The Board's final |
6 | | certification must note any deviations from the State Actuary's |
7 | | recommended changes, the reason or reasons for not following |
8 | | the State Actuary's recommended changes, and the fiscal impact |
9 | | of not following the State Actuary's recommended changes on the |
10 | | required State contribution. |
11 | | On or before May 1, 2019, the Board shall recalculate and |
12 | | recertify
to the Governor and the General Assembly the amount |
13 | | of the required State
contribution to the System for State |
14 | | fiscal year 2020, taking into account the effect on the |
15 | | System's liabilities of the elections made under Section |
16 | | 14-106.5. |
17 | | On or before October 1, 2019, the Board shall recalculate |
18 | | and recertify to the Governor and the General Assembly the |
19 | | amount of the required State contribution to the System for |
20 | | State fiscal year 2020, taking into account the reduction |
21 | | specified under item (3) of subsection (e) of Section 14-131. |
22 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
23 | | 97-694, eff. 6-18-12.)
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24 | | (40 ILCS 5/14-147.5 new) |
25 | | Sec. 14-147.5. Accelerated pension benefit payment. |
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1 | | (a) As used in this Section: |
2 | | "Eligible person" means a person who: |
3 | | (1) has terminated service; |
4 | | (2) has accrued sufficient service credit to be |
5 | | eligible to receive a retirement annuity under this |
6 | | Article; |
7 | | (3) has not received any retirement annuity under this |
8 | | Article; and |
9 | | (4) does not have a QILDRO in effect against him or her |
10 | | under this Article. |
11 | | "Pension benefit" means the benefits under this Article, or |
12 | | Article 1 as it relates to those benefits, including any |
13 | | anticipated annual increases, that an eligible person is |
14 | | entitled to upon attainment of the applicable retirement age. |
15 | | "Pension benefit" also includes applicable survivor's or |
16 | | disability benefits. |
17 | | (b) Before January 1, 2019, and annually thereafter, the |
18 | | System shall calculate, using actuarial tables and other |
19 | | assumptions adopted by the Board, the net present value of |
20 | | pension benefits for each eligible person and shall offer each |
21 | | eligible person the opportunity to irrevocably elect to receive |
22 | | an amount determined by the System to be equal to 70% of the |
23 | | net present value of his or her pension benefits in lieu of |
24 | | receiving any pension benefit. The offer shall specify the |
25 | | dollar amount that the eligible person will receive if he or |
26 | | she so elects and shall expire when a subsequent offer is made |
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1 | | to an eligible person or when the System determines that 10% of |
2 | | eligible persons in that year have made the election under this |
3 | | subsection, whichever occurs first. The System shall make a |
4 | | good faith effort to contact every eligible person to notify |
5 | | him or her of the election and of the amount of the accelerated |
6 | | pension benefit payment. |
7 | | Until the System determines that 10% of eligible persons in |
8 | | that year have made the election under this subsection, an |
9 | | eligible person may irrevocably elect to receive an accelerated |
10 | | pension benefit payment in the amount that the System offers |
11 | | under this subsection in lieu of receiving any pension benefit. |
12 | | A person who elects to receive an accelerated pension benefit |
13 | | payment under this Section may not elect to proceed under the |
14 | | Retirement Systems Reciprocal Act with respect to service under |
15 | | this Article. |
16 | | (c) A person's credits and creditable service under this |
17 | | Article shall be terminated upon the person's receipt of an |
18 | | accelerated pension benefit payment under this Section, and no |
19 | | other benefit shall be paid under this Article based on those |
20 | | terminated credits and creditable service, including any |
21 | | retirement, survivor, or other benefit; except that to the |
22 | | extent that participation, benefits, or premiums under the |
23 | | State Employees Group Insurance Act of 1971 are based on the |
24 | | amount of service credit, the terminated service credit shall |
25 | | be used for that purpose. |
26 | | (d) If a person who has received an accelerated pension |
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1 | | benefit payment under this Section returns to active service |
2 | | under this Article, then: |
3 | | (1) Any benefits under the System earned as a result of |
4 | | that return to active service shall be based solely on the |
5 | | person's credits and creditable service arising from the |
6 | | return to active service. |
7 | | (2) The accelerated pension benefit payment may not be |
8 | | repaid to the System, and the terminated credits and |
9 | | creditable service may not under any circumstances be |
10 | | reinstated. |
11 | | (e) As a condition of receiving an accelerated pension |
12 | | benefit payment, an eligible person must have another |
13 | | retirement plan or account qualified under the Internal Revenue |
14 | | Code of 1986, as amended, for the accelerated pension benefit |
15 | | payment to be rolled into. The accelerated pension benefit |
16 | | payment under this Section may be subject to withholding or |
17 | | payment of applicable taxes, but to the extent permitted by |
18 | | federal law, a person who receives an accelerated pension |
19 | | benefit payment under this Section must direct the System to |
20 | | pay all of that payment as a rollover into another retirement |
21 | | plan or account qualified under the Internal Revenue Code of |
22 | | 1986, as amended. |
23 | | (f) Before January 1, 2020 and every January 1 thereafter, |
24 | | the Board shall certify to the Illinois Finance Authority and |
25 | | the General Assembly the amount by which the total amount of |
26 | | accelerated pension benefit payments made under this Section |
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1 | | exceed the amount appropriated to the System for the purpose of |
2 | | making those payments. |
3 | | (g) The Board shall adopt any rules necessary to implement |
4 | | this Section. |
5 | | (h) No provision of this Section shall be interpreted in a |
6 | | way that would cause the applicable System to cease to be a |
7 | | qualified plan under the Internal Revenue Code of 1986. |
8 | | (i) Notwithstanding any other provision of this Section, in |
9 | | no case shall the total amount of accelerated pension benefit |
10 | | payments paid under this Section, Section 15-185.5, and Section |
11 | | 16-190.5 cause the Illinois Finance Authority to issue more |
12 | | than the $250,000,000 of State Pension Obligation Acceleration |
13 | | Bonds authorized in subsection (c-5) of Section 801-40 of the |
14 | | Illinois Finance Authority Act. |
15 | | (40 ILCS 5/14-152.1) |
16 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
17 | | which has been held unconstitutional)
|
18 | | Sec. 14-152.1. Application and expiration of new benefit |
19 | | increases. |
20 | | (a) As used in this Section, "new benefit increase" means |
21 | | an increase in the amount of any benefit provided under this |
22 | | Article, or an expansion of the conditions of eligibility for |
23 | | any benefit under this Article, that results from an amendment |
24 | | to this Code that takes effect after June 1, 2005 (the |
25 | | effective date of Public Act 94-4). "New benefit increase", |
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1 | | however, does not include any benefit increase resulting from |
2 | | the changes made to this Article by Public Act 96-37 or by this |
3 | | amendatory Act of the 100th General Assembly this amendatory |
4 | | Act of the 96th General Assembly .
|
5 | | (b) Notwithstanding any other provision of this Code or any |
6 | | subsequent amendment to this Code, every new benefit increase |
7 | | is subject to this Section and shall be deemed to be granted |
8 | | only in conformance with and contingent upon compliance with |
9 | | the provisions of this Section.
|
10 | | (c) The Public Act enacting a new benefit increase must |
11 | | identify and provide for payment to the System of additional |
12 | | funding at least sufficient to fund the resulting annual |
13 | | increase in cost to the System as it accrues. |
14 | | Every new benefit increase is contingent upon the General |
15 | | Assembly providing the additional funding required under this |
16 | | subsection. The Commission on Government Forecasting and |
17 | | Accountability shall analyze whether adequate additional |
18 | | funding has been provided for the new benefit increase and |
19 | | shall report its analysis to the Public Pension Division of the |
20 | | Department of Insurance Financial and Professional Regulation . |
21 | | A new benefit increase created by a Public Act that does not |
22 | | include the additional funding required under this subsection |
23 | | is null and void. If the Public Pension Division determines |
24 | | that the additional funding provided for a new benefit increase |
25 | | under this subsection is or has become inadequate, it may so |
26 | | certify to the Governor and the State Comptroller and, in the |
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1 | | absence of corrective action by the General Assembly, the new |
2 | | benefit increase shall expire at the end of the fiscal year in |
3 | | which the certification is made.
|
4 | | (d) Every new benefit increase shall expire 5 years after |
5 | | its effective date or on such earlier date as may be specified |
6 | | in the language enacting the new benefit increase or provided |
7 | | under subsection (c). This does not prevent the General |
8 | | Assembly from extending or re-creating a new benefit increase |
9 | | by law. |
10 | | (e) Except as otherwise provided in the language creating |
11 | | the new benefit increase, a new benefit increase that expires |
12 | | under this Section continues to apply to persons who applied |
13 | | and qualified for the affected benefit while the new benefit |
14 | | increase was in effect and to the affected beneficiaries and |
15 | | alternate payees of such persons, but does not apply to any |
16 | | other person, including without limitation a person who |
17 | | continues in service after the expiration date and did not |
18 | | apply and qualify for the affected benefit while the new |
19 | | benefit increase was in effect.
|
20 | | (Source: P.A. 96-37, eff. 7-13-09.) |
21 | | (40 ILCS 5/14-155.1 new) |
22 | | Sec. 14-155.1. Defined contribution plan. |
23 | | (a) By July 1, 2019, the System shall prepare and implement |
24 | | a voluntary defined contribution plan for up to 5% of eligible |
25 | | active Tier 1 employees. The System shall determine the 5% cap |
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1 | | by the number of active Tier 1 employees on the effective date |
2 | | of this Section. The defined contribution plan developed under |
3 | | this Section shall be a plan that aggregates employer and |
4 | | employee contributions in individual participant accounts |
5 | | which, after meeting any other requirements, are used for |
6 | | payouts after retirement in accordance with this Section and |
7 | | any other applicable laws. |
8 | | As used in this Section, "defined benefit plan" means the |
9 | | retirement plan available under this Article to Tier 1 |
10 | | employees who have not made the election authorized under this |
11 | | Section. |
12 | | (1) Under the defined contribution plan, an active
Tier |
13 | | 1 employee of this System could elect to cease accruing |
14 | | benefits in the defined benefit plan under this Article and |
15 | | begin accruing benefits for future service in the defined |
16 | | contribution plan. Service credit under the defined |
17 | | contribution plan may be used for determining retirement |
18 | | eligibility under the defined benefit plan. |
19 | | (2) Participants in the defined contribution plan
|
20 | | shall pay employee contributions at the same rate as Tier 1 |
21 | | employees in this System who do not participate in the |
22 | | defined contribution plan. |
23 | | (3) State contributions shall be paid into the
accounts |
24 | | of all participants in the defined contribution plan at a |
25 | | uniform rate, expressed as a percentage of compensation and |
26 | | determined for each year. This rate shall be no higher than |
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1 | | the employer's normal cost for Tier 1 employees in the |
2 | | defined benefit plan for that year, as determined by the |
3 | | System and expressed as a percentage of compensation, and |
4 | | shall be no lower than 3% of compensation. The State shall |
5 | | adjust this rate annually. |
6 | | (4) The defined contribution plan shall require 5
years |
7 | | of participation in the defined contribution plan before |
8 | | vesting in State contributions. If the participant fails to |
9 | | vest in them, the State contributions, and the earnings |
10 | | thereon, shall be forfeited. |
11 | | (5) The defined contribution plan may provide for
|
12 | | participants in the plan to be eligible for the defined |
13 | | disability benefits available to other participants under |
14 | | this Article. If it does, the System shall reduce the |
15 | | employee contributions credited to the member's defined |
16 | | contribution plan account by an amount determined by the |
17 | | System to cover the cost of offering such benefits. |
18 | | (6) The defined contribution plan shall provide a
|
19 | | variety of options for investments. These options shall |
20 | | include investments handled by the Illinois State Board of |
21 | | Investment as well as private sector investment options. |
22 | | (7) The defined contribution plan shall provide a
|
23 | | variety of options for payouts to retirees and their |
24 | | survivors. |
25 | | (8) To the extent authorized under federal law and
as |
26 | | authorized by the System, the plan shall allow former |
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1 | | participants in the plan to transfer or roll over employee |
2 | | and vested State contributions, and the earnings thereon, |
3 | | into other qualified retirement plans. |
4 | | (9) The System shall reduce the employee
contributions |
5 | | credited to the member's defined contribution plan account |
6 | | by an amount determined by the System to cover the cost of |
7 | | offering these benefits and any applicable administrative |
8 | | fees. |
9 | | (b) Only persons who are active Tier 1 employees of the |
10 | | System on the effective date of this Section are eligible to |
11 | | participate in the defined contribution plan. Participation in |
12 | | the defined contribution plan shall be limited to the first 5% |
13 | | of eligible persons who elect to participate. The election to |
14 | | participate in the defined contribution plan is voluntary and |
15 | | irrevocable. |
16 | | (c) An eligible Tier 1 employee may irrevocably elect to |
17 | | participate in the defined contribution plan by filing with the |
18 | | System a written application to participate that is received by |
19 | | the System prior to its determination that 5% of eligible |
20 | | persons have elected to participate in the defined contribution |
21 | | plan. |
22 | | When the System first determines that 5% of eligible |
23 | | persons have elected to participate in the defined contribution |
24 | | plan, the System shall provide notice to previously eligible |
25 | | employees that the plan is no longer available and shall cease |
26 | | accepting applications to participate. |
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1 | | (d) The System shall make a good faith effort to contact |
2 | | each active Tier 1 employee who is eligible to participate in |
3 | | the defined contribution plan. The System shall mail |
4 | | information describing the option to join the defined |
5 | | contribution plan to each of these employees to his or her last |
6 | | known address on file with the System. If the employee is not |
7 | | responsive to other means of contact, it is sufficient for the |
8 | | System to publish the details of the option on its website. |
9 | | Upon request for further information describing the |
10 | | option, the System shall provide employees with information |
11 | | from the System before exercising the option to join the plan, |
12 | | including information on the impact to their vested benefits or |
13 | | non-vested service. The individual consultation shall include |
14 | | projections of the member's defined benefits at retirement or |
15 | | earlier termination of service and the value of the member's |
16 | | account at retirement or earlier termination of service. The |
17 | | System shall not provide advice or counseling with respect to |
18 | | whether the employee should exercise the option. The System |
19 | | shall inform Tier 1 employees who are eligible to participate |
20 | | in the defined contribution plan that they may also wish to |
21 | | obtain information and counsel relating to their option from |
22 | | any other available source, including, but not limited to, |
23 | | labor organizations, private counsel, and financial advisors. |
24 | | (e) In no event shall the System, its staff, its authorized |
25 | | representatives, or the Board be liable for any information |
26 | | given to an employee under this Section. The System may |
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1 | | coordinate with the Illinois Department of Central Management |
2 | | Services and other retirement systems administering a defined |
3 | | contribution plan in accordance with this amendatory Act of the |
4 | | 100th General Assembly to provide information concerning the |
5 | | impact of the option set forth in this Section. |
6 | | (f) Notwithstanding any other provision of this Section, no |
7 | | person shall begin participating in the defined contribution |
8 | | plan until it has attained qualified plan status and received |
9 | | all necessary approvals from the U.S. Internal Revenue Service. |
10 | | (g) The System shall report on its progress under this |
11 | | Section, including the available details of the defined |
12 | | contribution plan and the System's plans for informing eligible |
13 | | Tier 1 employees about the plan, to the Governor and the |
14 | | General Assembly on or before January 15, 2019. |
15 | | (h) The Illinois State Board of Investment shall be the |
16 | | plan sponsor for the defined contribution plan established |
17 | | under this Section. |
18 | | (i) The intent of this amendatory Act of the 100th General |
19 | | Assembly is to ensure that the State's normal cost of |
20 | | participation in the defined contribution plan is similar, and |
21 | | if possible equal, to the State's normal cost of participation |
22 | | in the defined benefit plan, unless a lower State's normal cost |
23 | | is necessary to ensure cost neutrality. |
24 | | (40 ILCS 5/14-155.2 new) |
25 | | Sec. 14-155.2. Defined contribution plan for certain |
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1 | | covered employees. |
2 | | (a) As used in this Section: |
3 | | "Defined benefit plan" means the retirement plan available |
4 | | under this Article and Section 1-160 to eligible covered |
5 | | employees who do not make the election authorized under this |
6 | | Section. |
7 | | "Eligible covered employee" means a covered employee who |
8 | | first becomes a participant under this Article on or after 6 |
9 | | months after the effective date of this amendatory Act of the |
10 | | 100th General Assembly. |
11 | | (b) In lieu of the defined benefit plan, an eligible |
12 | | covered employee may irrevocably elect to participate in the |
13 | | defined contribution plan under this Section. The election to |
14 | | participate in the defined contribution plan must be made |
15 | | within 30 days after becoming an eligible covered employee. The |
16 | | election to participate in the defined contribution plan under |
17 | | this Section is voluntary and irrevocable. |
18 | | (c) No later than 5 months after the effective date of this
|
19 | | amendatory Act of the 100th General Assembly, the System shall
|
20 | | prepare and implement a voluntary defined contribution plan for |
21 | | eligible covered employees. The defined
contribution plan |
22 | | developed under this Section shall be a
plan that aggregates |
23 | | employer and employee contributions in
individual participant |
24 | | accounts which, after meeting any other
requirements, are used |
25 | | for payouts after retirement in
accordance with this Section |
26 | | and any other applicable laws. |
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1 | | (1) A participant in the defined contribution plan |
2 | | shall contribute a minimum of 3% of his or her compensation |
3 | | to the defined contribution plan. |
4 | | (2) For persons who participate in the defined |
5 | | contribution plan for at least one year, employer |
6 | | contributions shall be paid into the accounts of those |
7 | | participants at a rate of 3% of compensation. |
8 | | (3) Employer contributions shall vest when those |
9 | | contributions are paid into a participant's account. |
10 | | (4) The defined contribution plan shall provide a |
11 | | variety of options for investments. These options shall |
12 | | include investments handled by the Illinois State Board of |
13 | | Investment as well as private sector investment options. |
14 | | (5) The defined contribution plan shall provide a |
15 | | variety of options for payouts to retirees and their |
16 | | survivors. |
17 | | (6) To the extent authorized under federal law and as |
18 | | authorized by the affected pension fund, the defined |
19 | | contribution plan shall allow former participants in the |
20 | | plan to transfer or roll over employee and employer |
21 | | contributions, and the earnings thereon, into other |
22 | | qualified retirement plans. |
23 | | (7) The System shall reduce the employee contributions |
24 | | credited to the participant's defined contribution plan |
25 | | account by an amount determined by the System to cover the |
26 | | cost of offering the benefits under this Section and any |
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1 | | applicable administrative fees. |
2 | | (40 ILCS 5/14-156.1 new) |
3 | | Sec. 14-156.1. Defined contribution plan; termination. If |
4 | | the defined contribution plan under Section 14-155.1 is |
5 | | terminated or becomes inoperative pursuant to law, then each |
6 | | participant in the plan shall automatically be deemed to have |
7 | | been a contributing Tier 1 employee in the System's defined |
8 | | benefit plan during the time in which he or she participated in |
9 | | the defined contribution plan, and for that purpose the System |
10 | | shall be entitled to recover the amounts in the participant's |
11 | | defined contribution accounts. |
12 | | (40 ILCS 5/15-108.1) |
13 | | Sec. 15-108.1. Tier 1 member ; Tier 1 employee . |
14 | | "Tier 1 member": A participant or an annuitant of a |
15 | | retirement annuity under this Article, other than a participant |
16 | | in the self-managed plan under Section 15-158.2, who first |
17 | | became a participant or member before January 1, 2011 under any |
18 | | reciprocal retirement system or pension fund established under |
19 | | this Code, other than a retirement system or pension fund |
20 | | established under Articles 2, 3, 4, 5, 6, or 18 of this Code. |
21 | | "Tier 1 member" includes a person who first became a |
22 | | participant under this System before January 1, 2011 and who |
23 | | accepts a refund and is subsequently reemployed by an employer |
24 | | on or after January 1, 2011.
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1 | | "Tier 1 employee": A Tier 1 member who is a participating |
2 | | employee, unless he or she is a disability benefit recipient |
3 | | under Section 15-150. However, for the purposes of the election |
4 | | under Section 15-132.9, "Tier 1 employee" does not include an |
5 | | individual who has made an irrevocable election on or before |
6 | | June 1, 2017 to retire from service pursuant to the terms of an |
7 | | employment contract or a collective bargaining agreement in |
8 | | effect on June 1, 2017, excluding any extension, amendment, or |
9 | | renewal of that agreement on or after that date, and has |
10 | | notified the System of that election. |
11 | | (Source: P.A. 98-92, eff. 7-16-13.) |
12 | | (40 ILCS 5/15-108.2) |
13 | | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who |
14 | | first becomes a participant under this Article on or after |
15 | | January 1, 2011 and before 6 months after the effective date of |
16 | | this amendatory Act of the 100th General Assembly , other than a |
17 | | person in the self-managed plan established under Section |
18 | | 15-158.2 or a person who makes the election under subsection |
19 | | (c) of Section 1-161 , unless the person is otherwise a Tier 1 |
20 | | member. The changes made to this Section by this amendatory Act |
21 | | of the 98th General Assembly are a correction of existing law |
22 | | and are intended to be retroactive to the effective date of |
23 | | Public Act 96-889, notwithstanding the provisions of Section |
24 | | 1-103.1 of this Code.
|
25 | | (Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
|
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1 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
|
2 | | Sec. 15-111. Earnings.
|
3 | | (a) "Earnings": Subject to Section 15-111.5, an amount paid |
4 | | for personal services equal to the sum of
the basic |
5 | | compensation plus extra compensation for summer teaching,
|
6 | | overtime or other extra service. For periods for which an |
7 | | employee receives
service credit under subsection (c) of |
8 | | Section 15-113.1 or Section 15-113.2,
earnings are equal to the |
9 | | basic compensation on which contributions are
paid by the |
10 | | employee during such periods. Compensation for employment |
11 | | which is
irregular, intermittent and temporary shall not be |
12 | | considered earnings, unless
the participant is also receiving |
13 | | earnings from the employer as an employee
under Section 15-107.
|
14 | | With respect to transition pay paid by the University of |
15 | | Illinois to a
person who was a participating employee employed |
16 | | in the fire department of
the University of Illinois's |
17 | | Champaign-Urbana campus immediately prior to
the elimination |
18 | | of that fire department:
|
19 | | (1) "Earnings" includes transition pay paid to the |
20 | | employee on or after
the effective date of this amendatory |
21 | | Act of the 91st General Assembly.
|
22 | | (2) "Earnings" includes transition pay paid to the |
23 | | employee before the
effective date of this amendatory Act |
24 | | of the 91st General Assembly only if (i)
employee |
25 | | contributions under Section 15-157 have been withheld from |
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1 | | that
transition pay or (ii) the employee pays to the System |
2 | | before January 1, 2001
an amount representing employee |
3 | | contributions under Section 15-157 on that
transition pay. |
4 | | Employee contributions under item (ii) may be paid in a |
5 | | lump
sum, by withholding from additional transition pay |
6 | | accruing before January 1,
2001, or in any other manner |
7 | | approved by the System. Upon payment of the
employee |
8 | | contributions on transition pay, the corresponding |
9 | | employer
contributions become an obligation of the State.
|
10 | | (a-5) Notwithstanding any other provision of this Section, |
11 | | "earnings" does not include any future increase in income that |
12 | | is offered for service by an employer to a Tier 1 employee |
13 | | under this Article pursuant to the condition set forth in |
14 | | subsection (c) of Section 15-132.9 and accepted under that |
15 | | condition by a Tier 1 employee who has made the election under |
16 | | paragraph (2) of subsection (a) of Section 15-132.9. |
17 | | (a-10) Notwithstanding any other provision of this |
18 | | Section, "earnings" does not include any consideration payment |
19 | | made to a Tier 1 employee. |
20 | | (b) For a Tier 2 member, the annual earnings shall not |
21 | | exceed $106,800; however, that amount shall annually |
22 | | thereafter be increased by the lesser of (i) 3% of that amount, |
23 | | including all previous adjustments, or (ii) one half the annual |
24 | | unadjusted percentage increase (but not less than zero) in the |
25 | | consumer price index-u for the 12 months ending with the |
26 | | September preceding each November 1, including all previous |
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1 | | adjustments. |
2 | | For the purposes of this Section, "consumer price index u" |
3 | | means the index published by the Bureau of Labor Statistics of |
4 | | the United States Department of Labor that measures the average |
5 | | change in prices of goods and services purchased by all urban |
6 | | consumers, United States city average, all items, 1982-84 = |
7 | | 100. The new amount resulting from each annual adjustment shall |
8 | | be determined by the Public Pension Division of the Department |
9 | | of Insurance and made available to the boards of the retirement |
10 | | systems and pension funds by November 1 of each year. |
11 | | (c) With each submission of payroll information in the |
12 | | manner prescribed by the System, the
employer shall certify |
13 | | that the payroll information is correct and complies with all |
14 | | applicable
State and federal laws. |
15 | | (Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
|
16 | | (40 ILCS 5/15-112.1 new) |
17 | | Sec. 15-112.1. Future increase in income. "Future increase |
18 | | in income" means an increase to a Tier 1 employee's base pay |
19 | | that is offered by an employer to the Tier 1 employee for |
20 | | service under this Article after June 30, 2018 that qualifies |
21 | | as "earnings", as defined in Section 15-111, or would qualify |
22 | | as "earnings" but for the fact that it was offered to and |
23 | | accepted by the Tier 1 employee under the condition set forth |
24 | | in subsection (c) of Section 15-132.9. The term "future |
25 | | increase in income" includes an increase to a Tier 1 employee's |
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1 | | base pay that is paid to the Tier 1 employee pursuant to an |
2 | | extension, amendment, or renewal of any such employment |
3 | | contract or collective bargaining agreement after the |
4 | | effective date of this Section. |
5 | | (40 ILCS 5/15-112.2 new) |
6 | | Sec. 15-112.2. Base pay. As used in Section 15-112.1 of |
7 | | this Code, "base pay" means the greater of either (i) the Tier |
8 | | 1 employee's annualized rate of earnings as of June 30, 2018, |
9 | | or (ii) the Tier 1 employee's annualized rate of earnings |
10 | | immediately preceding the expiration, renewal, or amendment of |
11 | | an employment contract or collective bargaining agreement in |
12 | | effect on the effective date of this Section. For a person |
13 | | returning to participating employee status as a Tier 1 employee |
14 | | after June 30, 2018, however, "base pay" means the employee's |
15 | | annualized rate of earnings as of the employee's last date of |
16 | | service prior to July 1, 2018. The System shall calculate the |
17 | | base pay of each Tier 1 employee pursuant to this Section. |
18 | | (40 ILCS 5/15-132.9 new) |
19 | | Sec. 15-132.9. Election by Tier 1 employees. |
20 | | (a) Each Tier 1 employee shall make an irrevocable election |
21 | | either: |
22 | | (1) to agree to delay his or her eligibility for |
23 | | automatic annual increases in retirement annuity as |
24 | | provided in subsection (d-1) of Section 15-136 and to have |
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1 | | the amount of the automatic annual increases in his or her |
2 | | retirement annuity and survivor annuity that are otherwise |
3 | | provided for in this Article calculated, instead, as |
4 | | provided in subsection (d-1) of Section 15-136; or |
5 | | (2) to not agree to the provisions of paragraph (1) of |
6 | | this subsection. |
7 | | The election required under this subsection (a) shall be |
8 | | made by each Tier 1 employee no earlier than January 1, 2018 |
9 | | and no later than March 31, 2018, except that: |
10 | | (i) a person who becomes a Tier 1 employee under this |
11 | | Article on or after January 1, 2018 must make the election |
12 | | under this subsection (a) within 60 days after becoming a |
13 | | Tier 1 employee; |
14 | | (ii) a person who returns to participating employee |
15 | | status as a Tier 1 employee under this Article on or after |
16 | | January 1, 2018 and has not yet made an election under this |
17 | | Section must make the election under this subsection (a) |
18 | | within 60 days after returning to participating employee |
19 | | status as a Tier 1 employee; and |
20 | | (iii) a person who returns to participating employee |
21 | | status as a Tier 1 employee under this Article but who has |
22 | | not made an election under Section 15-134.5 must make the |
23 | | election under this subsection (a) at the same time as the |
24 | | election under Section 15-134.5 and within the timeframes |
25 | | required by that Section. |
26 | | If a Tier 1 employee fails for any reason to make a |
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1 | | required election under this subsection within the time |
2 | | specified, then the employee shall be deemed to have made the |
3 | | election under paragraph (2) of this subsection. |
4 | | (a-5) If this Section is enjoined or stayed by an Illinois |
5 | | court or a court of competent jurisdiction pending the entry of |
6 | | a final and unappealable decision, and this Section is |
7 | | determined to be constitutional or otherwise valid by a final |
8 | | unappealable decision of an Illinois court or a court of |
9 | | competent jurisdiction, then the election procedure set forth |
10 | | in subsection (a) of this Section shall commence on the 180th |
11 | | calendar day after the date of the issuance of the final |
12 | | unappealable decision and shall conclude at the end of the |
13 | | 270th calendar day after that date. |
14 | | (a-10) All elections under subsection (a) that are made or |
15 | | deemed to be made before July 1, 2018 shall take effect on July |
16 | | 1, 2018. Elections that are made or deemed to be made on or |
17 | | after July 1, 2018 shall take effect on the first day of the |
18 | | month following the month in which the election is made or |
19 | | deemed to be made. |
20 | | (b) As adequate and legal consideration provided under this |
21 | | amendatory Act of the 100th General Assembly for making an |
22 | | election under paragraph (1) of subsection (a) of this Section, |
23 | | the employer shall be expressly and irrevocably prohibited from |
24 | | offering any future increases in income to a Tier 1 employee |
25 | | who has made an election under paragraph (1) of subsection (a) |
26 | | of this Section on the condition of not constituting earnings |
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1 | | under Section 15-111. |
2 | | As adequate and legal consideration provided under this |
3 | | amendatory Act of the 100th General Assembly for making an |
4 | | election under paragraph (1) of subsection (a) of this Section, |
5 | | each Tier 1 employee who has made an election under paragraph |
6 | | (1) of subsection (a) of this Section shall receive a |
7 | | consideration payment equal to 10% of the contributions made by |
8 | | or on behalf of the employee under Section 15-157 before the |
9 | | effective date of that election. The State Comptroller shall |
10 | | pay the consideration payment to the Tier 1 employee out of |
11 | | funds appropriated for that purpose under Section 1.9 of the |
12 | | State Pension Funds Continuing Appropriation Act. The System |
13 | | shall calculate the amount of each consideration payment and, |
14 | | by July 1, 2018, shall certify to the State Comptroller the |
15 | | amount of the consideration payment, together with the name, |
16 | | address, and any other available payment information of the |
17 | | Tier 1 employee as found in the records of the System. The |
18 | | System shall make additional calculations and certifications |
19 | | of consideration payments to the State Comptroller as the |
20 | | System deems necessary. |
21 | | (c) A Tier 1 employee who makes the election under |
22 | | paragraph (2) of subsection (a) of this Section shall not be |
23 | | subject to paragraph (1) of subsection (a) of this Section. |
24 | | However, each future increase in income offered by an employer |
25 | | under this Article to a Tier 1 employee who has made the |
26 | | election under paragraph (2) of subsection (a) of this Section |
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1 | | shall be offered by the employer expressly and irrevocably on |
2 | | the condition of not constituting earnings under Section 15-111 |
3 | | and that the Tier 1 employee's acceptance of the offered future |
4 | | increase in income shall constitute his or her agreement to |
5 | | that condition. |
6 | | (d) The System shall make a good faith effort to contact |
7 | | each Tier 1 employee subject to this Section. The System shall |
8 | | mail information describing the required election to each Tier |
9 | | 1 employee by United States Postal Service mail to his or her |
10 | | last known address on file with the System. If the Tier 1 |
11 | | employee is not responsive to other means of contact, it is |
12 | | sufficient for the System to publish the details of any |
13 | | required elections on its website or to publish those details |
14 | | in a regularly published newsletter or other existing public |
15 | | forum. |
16 | | Tier 1 employees who are subject to this Section shall be |
17 | | provided with an election packet containing information |
18 | | regarding their options, as well as the forms necessary to make |
19 | | the required election. Upon request, the System shall offer |
20 | | Tier 1 employees an opportunity to receive information from the |
21 | | System before making the required election. The information may |
22 | | consist of video materials, benefit estimators, group |
23 | | presentations, individual consultation with a member or |
24 | | authorized representative of the System in person or by |
25 | | telephone or other electronic means, or any combination of |
26 | | these methods. The System shall not provide advice or |
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1 | | counseling with respect to which election a Tier 1 employee |
2 | | should make or specific to the legal or tax circumstances of or |
3 | | 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 "earnings" under Section 15-111 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.
|
19 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
|
20 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
21 | | which has been held unconstitutional)
|
22 | | Sec. 15-136. Retirement annuities - Amount. The provisions |
23 | | of this
Section 15-136 apply only to those participants who are |
24 | | participating in the
traditional benefit package or the |
25 | | portable benefit package and do not
apply to participants who |
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1 | | are participating in the self-managed plan.
|
2 | | (a) The amount of a participant's retirement annuity, |
3 | | expressed in the form
of a single-life annuity, shall be |
4 | | determined by whichever of the following
rules is applicable |
5 | | and provides the largest annuity:
|
6 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
7 | | of earnings for
each of the first 10 years of service, 1.90% |
8 | | for each of the next 10 years of
service, 2.10% for each year |
9 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
10 | | each year in excess of 30; or for persons who retire on or
|
11 | | after January 1, 1998, 2.2% of the final rate of earnings for |
12 | | each year of
service.
|
13 | | Rule 2: The retirement annuity shall be the sum of the |
14 | | following,
determined from amounts credited to the participant |
15 | | in accordance with the
actuarial tables and the effective rate |
16 | | of interest in effect at the
time the retirement annuity |
17 | | begins:
|
18 | | (i) the normal annuity which can be provided on an |
19 | | actuarially
equivalent basis, by the accumulated normal |
20 | | contributions as of
the date the annuity begins;
|
21 | | (ii) an annuity from employer contributions of an |
22 | | amount equal to that
which can be provided on an |
23 | | actuarially equivalent basis from the accumulated
normal |
24 | | contributions made by the participant under Section |
25 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
26 | | accumulated normal contributions made by
the participant; |
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1 | | and
|
2 | | (iii) the annuity that can be provided on an |
3 | | actuarially equivalent basis
from the entire contribution |
4 | | made by the participant under Section 15-113.3.
|
5 | | With respect to a police officer or firefighter who retires |
6 | | on or after
August 14, 1998, the accumulated normal |
7 | | contributions taken into account under
clauses (i) and (ii) of |
8 | | this Rule 2 shall include the additional normal
contributions |
9 | | made by the police officer or firefighter under Section
|
10 | | 15-157(a).
|
11 | | The amount of a retirement annuity calculated under this |
12 | | Rule 2 shall
be computed solely on the basis of the |
13 | | participant's accumulated normal
contributions, as specified |
14 | | in this Rule and defined in Section 15-116.
Neither an employee |
15 | | or employer contribution for early retirement under
Section |
16 | | 15-136.2 nor any other employer contribution shall be used in |
17 | | the
calculation of the amount of a retirement annuity under |
18 | | this Rule 2.
|
19 | | This amendatory Act of the 91st General Assembly is a |
20 | | clarification of
existing law and applies to every participant |
21 | | and annuitant without regard to
whether status as an employee |
22 | | terminates before the effective date of this
amendatory Act.
|
23 | | This Rule 2 does not apply to a person who first becomes an |
24 | | employee under this Article on or after July 1, 2005.
|
25 | | Rule 3: The retirement annuity of a participant who is |
26 | | employed
at least one-half time during the period on which his |
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1 | | or her final rate of
earnings is based, shall be equal to the |
2 | | participant's years of service
not to exceed 30, multiplied by |
3 | | (1) $96 if the participant's final rate
of earnings is less |
4 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
5 | | $3,500 but less than $4,500, (3) $120 if the final rate of |
6 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if |
7 | | the final rate
of earnings is at least $5,500 but less than |
8 | | $6,500, (5)
$144 if the final rate of earnings is at least |
9 | | $6,500 but less than
$7,500, (6) $156 if the final rate of |
10 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if |
11 | | the final rate of earnings is at least $8,500 but
less than |
12 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
|
13 | | more, except that the annuity for those persons having made an |
14 | | election under
Section 15-154(a-1) shall be calculated and |
15 | | payable under the portable
retirement benefit program pursuant |
16 | | to the provisions of Section 15-136.4.
|
17 | | Rule 4: A participant who is at least age 50 and has 25 or |
18 | | more years of
service as a police officer or firefighter, and a |
19 | | participant who is age 55 or
over and has at least 20 but less |
20 | | than 25 years of service as a police officer
or firefighter, |
21 | | shall be entitled to a retirement annuity of 2 1/4% of the
|
22 | | final rate of earnings for each of the first 10 years of |
23 | | service as a police
officer or firefighter, 2 1/2% for each of |
24 | | the next 10 years of service as a
police officer or |
25 | | firefighter, and 2 3/4% for each year of service as a police
|
26 | | officer or firefighter in excess of 20. The retirement annuity |
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1 | | for all other
service shall be computed under Rule 1. A Tier 2 |
2 | | member is eligible for a retirement annuity calculated under |
3 | | Rule 4 only if that Tier 2 member meets the service |
4 | | requirements for that benefit calculation as prescribed under |
5 | | this Rule 4 in addition to the applicable age requirement under |
6 | | subsection (a-5) of Section 15-135.
|
7 | | For purposes of this Rule 4, a participant's service as a |
8 | | firefighter
shall also include the following:
|
9 | | (i) service that is performed while the person is an |
10 | | employee under
subsection (h) of Section 15-107; and
|
11 | | (ii) in the case of an individual who was a |
12 | | participating employee
employed in the fire department of |
13 | | the University of Illinois's
Champaign-Urbana campus |
14 | | immediately prior to the elimination of that fire
|
15 | | department and who immediately after the elimination of |
16 | | that fire department
transferred to another job with the |
17 | | University of Illinois, service performed
as an employee of |
18 | | the University of Illinois in a position other than police
|
19 | | officer or firefighter, from the date of that transfer |
20 | | until the employee's
next termination of service with the |
21 | | University of Illinois.
|
22 | | (b) For a Tier 1 member, the retirement annuity provided |
23 | | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each |
24 | | month the participant is under age 60 at the
time of |
25 | | retirement. However, this reduction shall not apply in the |
26 | | following
cases:
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1 | | (1) For a disabled participant whose disability |
2 | | benefits have been
discontinued because he or she has |
3 | | exhausted eligibility for disability
benefits under clause |
4 | | (6) of Section 15-152;
|
5 | | (2) For a participant who has at least the number of |
6 | | years of service
required to retire at any age under |
7 | | subsection (a) of Section 15-135; or
|
8 | | (3) For that portion of a retirement annuity which has |
9 | | been provided on
account of service of the participant |
10 | | during periods when he or she performed
the duties of a |
11 | | police officer or firefighter, if these duties were |
12 | | performed
for at least 5 years immediately preceding the |
13 | | date the retirement annuity
is to begin.
|
14 | | (b-5) The retirement annuity of a Tier 2 member who is |
15 | | retiring after attaining age 62 with at least 10 years of |
16 | | service credit shall be reduced by 1/2 of 1% for each full |
17 | | month that the member's age is under age 67. |
18 | | (c) The maximum retirement annuity provided under Rules 1, |
19 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of |
20 | | benefits as specified in
Section 415 of the Internal Revenue |
21 | | Code of 1986, as such Section may be
amended from time to time |
22 | | and as such benefit limits shall be adjusted by
the |
23 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
|
24 | | earnings.
|
25 | | (d) Subject to the provisions of subsection (d-1), a A Tier |
26 | | 1 member whose status as an employee terminates after August |
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1 | | 14,
1969 shall receive automatic increases in his or her |
2 | | retirement annuity as
follows:
|
3 | | Effective January 1 immediately following the date the |
4 | | retirement annuity
begins, the annuitant shall receive an |
5 | | increase in his or her monthly
retirement annuity of 0.125% of |
6 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
7 | | Rule 3, or Rule 4 contained in this
Section, multiplied by
the |
8 | | number of full months which elapsed from the date the |
9 | | retirement annuity
payments began to January 1, 1972, plus |
10 | | 0.1667% of such annuity, multiplied by
the number of full |
11 | | months which elapsed from January 1, 1972, or the date the
|
12 | | retirement annuity payments began, whichever is later, to |
13 | | January 1, 1978, plus
0.25% of such annuity multiplied by the |
14 | | number of full months which elapsed
from January 1, 1978, or |
15 | | the date the retirement annuity payments began,
whichever is |
16 | | later, to the effective date of the increase.
|
17 | | The annuitant shall receive an increase in his or her |
18 | | monthly retirement
annuity on each January 1 thereafter during |
19 | | the annuitant's life of 3% of
the monthly annuity provided |
20 | | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this |
21 | | Section. The change made under this subsection by P.A. 81-970 |
22 | | is
effective January 1, 1980 and applies to each annuitant |
23 | | whose status as
an employee terminates before or after that |
24 | | date.
|
25 | | Beginning January 1, 1990, and except as provided in |
26 | | subsection (d-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 all |
3 | | increases previously
granted under this Article.
|
4 | | The change made in this subsection by P.A. 85-1008 is |
5 | | effective January
26, 1988, and is applicable without regard to |
6 | | whether status as an employee
terminated before that date.
|
7 | | (d-1) Notwithstanding any other provision of this Article, |
8 | | for a Tier 1 employee who made the election under paragraph (1) |
9 | | of subsection (a) of Section 15-132.9: |
10 | | (1) The initial increase in retirement annuity under |
11 | | this Section shall occur on the January 1 occurring either |
12 | | on or after the attainment of age 67 or the fifth |
13 | | anniversary of the annuity start date, whichever is |
14 | | earlier. |
15 | | (2) The amount of each automatic annual increase in |
16 | | retirement annuity or survivor annuity occurring on or |
17 | | after the effective date of that election shall be |
18 | | calculated as a percentage of the originally granted |
19 | | retirement annuity or survivor annuity, equal to 3% or |
20 | | one-half the annual unadjusted percentage increase (but |
21 | | not less than zero) in the consumer price index-u for the |
22 | | 12 months ending with the September preceding each November |
23 | | 1, whichever is less. If the annual unadjusted percentage |
24 | | change in the consumer price index-u for the 12 months |
25 | | ending with the September preceding each November 1 is zero |
26 | | or there is a decrease, then the annuity shall not be |
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1 | | increased. |
2 | | For the purposes of this Section, "consumer price index-u" |
3 | | means
the index published by the Bureau of Labor Statistics of |
4 | | the United States
Department of Labor that measures the average |
5 | | change in prices of goods and
services purchased by all urban |
6 | | consumers, United States city average, all
items, 1982-84 = |
7 | | 100. The new amount resulting from each annual adjustment
shall |
8 | | be determined by the Public Pension Division of the Department |
9 | | of Insurance and made available to the board of the retirement |
10 | | system by November 1 of each year. |
11 | | (d-5) A retirement annuity of a Tier 2 member shall receive |
12 | | annual increases on the January 1 occurring either on or after |
13 | | the attainment of age 67 or the first anniversary of the |
14 | | annuity start date, whichever is later. Each annual increase |
15 | | shall be calculated at 3% or one half the annual unadjusted |
16 | | percentage increase (but not less than zero) in the consumer |
17 | | price index-u for the 12 months ending with the September |
18 | | preceding each November 1, whichever is less, of the originally |
19 | | granted retirement annuity. If the annual unadjusted |
20 | | percentage change in the consumer price index-u for the 12 |
21 | | months ending with the September preceding each November 1 is |
22 | | zero or there is a decrease, then the annuity shall not be |
23 | | increased. |
24 | | (e) If, on January 1, 1987, or the date the retirement |
25 | | annuity payment
period begins, whichever is later, the sum of |
26 | | the retirement annuity
provided under Rule 1 or Rule 2 of this |
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1 | | Section
and the automatic annual increases provided under the |
2 | | preceding subsection
or Section 15-136.1, amounts to less than |
3 | | the retirement
annuity which would be provided by Rule 3, the |
4 | | retirement
annuity shall be increased as of January 1, 1987, or |
5 | | the date the
retirement annuity payment period begins, |
6 | | whichever is later, to the amount
which would be provided by |
7 | | Rule 3 of this Section. Such increased
amount shall be |
8 | | considered as the retirement annuity in determining
benefits |
9 | | provided under other Sections of this Article. This paragraph
|
10 | | applies without regard to whether status as an employee |
11 | | terminated before the
effective date of this amendatory Act of |
12 | | 1987, provided that the annuitant was
employed at least |
13 | | one-half time during the period on which the final rate of
|
14 | | earnings was based.
|
15 | | (f) A participant is entitled to such additional annuity as |
16 | | may be provided
on an actuarially equivalent basis, by any |
17 | | accumulated
additional contributions to his or her credit. |
18 | | However,
the additional contributions made by the participant |
19 | | toward the automatic
increases in annuity provided under this |
20 | | Section shall not be taken into
account in determining the |
21 | | amount of such additional annuity.
|
22 | | (g) If, (1) by law, a function of a governmental unit, as |
23 | | defined by Section
20-107 of this Code, is transferred in whole |
24 | | or in part to an employer, and (2)
a participant transfers |
25 | | employment from such governmental unit to such employer
within |
26 | | 6 months after the transfer of the function, and (3) the sum of |
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1 | | (A) the
annuity payable to the participant under Rule 1, 2, or |
2 | | 3 of this Section (B)
all proportional annuities payable to the |
3 | | participant by all other retirement
systems covered by Article |
4 | | 20, and (C) the initial primary insurance amount to
which the |
5 | | participant is entitled under the Social Security Act, is less |
6 | | than
the retirement annuity which would have been payable if |
7 | | all of the
participant's pension credits validated under |
8 | | Section 20-109 had been validated
under this system, a |
9 | | supplemental annuity equal to the difference in such
amounts |
10 | | shall be payable to the participant.
|
11 | | (h) On January 1, 1981, an annuitant who was receiving
a |
12 | | retirement annuity on or before January 1, 1971 shall have his |
13 | | or her
retirement annuity then being paid increased $1 per |
14 | | month for
each year of creditable service. On January 1, 1982, |
15 | | an annuitant whose
retirement annuity began on or before |
16 | | January 1, 1977, shall have his or her
retirement annuity then |
17 | | being paid increased $1 per month for each year of
creditable |
18 | | service.
|
19 | | (i) On January 1, 1987, any annuitant whose retirement |
20 | | annuity began on or
before January 1, 1977, shall have the |
21 | | monthly retirement annuity increased by
an amount equal to 8¢ |
22 | | per year of creditable service times the number of years
that |
23 | | have elapsed since the annuity began.
|
24 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; |
25 | | 98-92, eff. 7-16-13.)
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1 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
|
2 | | Sec. 15-155. Employer contributions.
|
3 | | (a) The State of Illinois shall make contributions by |
4 | | appropriations of
amounts which, together with the other |
5 | | employer contributions from trust,
federal, and other funds, |
6 | | employee contributions, income from investments,
and other |
7 | | income of this System, will be sufficient to meet the cost of
|
8 | | maintaining and administering the System on a 90% funded basis |
9 | | in accordance
with actuarial recommendations.
|
10 | | The Board shall determine the amount of State contributions |
11 | | required for
each fiscal year on the basis of the actuarial |
12 | | tables and other assumptions
adopted by the Board and the |
13 | | recommendations of the actuary, using the formula
in subsection |
14 | | (a-1).
|
15 | | (a-1) For State fiscal years 2018 through 2045 (except as |
16 | | otherwise provided for fiscal year 2019), the minimum |
17 | | contribution to the System to be made by the State for each |
18 | | fiscal year shall be an amount determined by the System to be |
19 | | sufficient to bring the total assets of the System up to 90% of |
20 | | the total actuarial liabilities of the System by the end of |
21 | | State fiscal year 2045. In making these determinations, the |
22 | | required State contribution shall be calculated each year as a |
23 | | level percentage of total payroll, including payroll that is |
24 | | not deemed pensionable, but excluding payroll attributable to |
25 | | participants in the defined contribution plan under Section |
26 | | 15-200.1, over the years remaining to and including fiscal year |
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1 | | 2045 and shall be determined under the projected unit credit |
2 | | actuarial cost method. |
3 | | For State fiscal year 2019: |
4 | | (1) The initial calculation and certification shall be |
5 | | based on the amount determined above. |
6 | | (2) For purposes of the recertification due on or |
7 | | before May 1, 2018, the recalculation of the required State |
8 | | contribution for fiscal year 2019 shall take into account |
9 | | the effect on the System's liabilities of the elections |
10 | | made under Section 15-132.9. |
11 | | (3) For purposes of the recertification due on or |
12 | | before October 1, 2018, the total required State |
13 | | contribution for fiscal year 2019 shall be reduced by the |
14 | | amount of the consideration payments made to Tier 1 |
15 | | employees who made the election under paragraph (1) of |
16 | | subsection (a) of Section 15-132.9. |
17 | | Beginning in State fiscal year 2018, any increase or
|
18 | | decrease in State contribution over the prior fiscal year due
|
19 | | exclusively to changes in actuarial or investment assumptions
|
20 | | adopted by the Board shall be included in the State
|
21 | | contribution to the System, as a percentage of the applicable
|
22 | | employee payroll, and shall be increased in equal annual
|
23 | | increments so that by the State fiscal year occurring 5 years
|
24 | | after the adoption of the actuarial or investment assumptions,
|
25 | | the State is contributing at the rate otherwise required under
|
26 | | this Section. |
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1 | | For State fiscal years 2012 through 2017 2045 , the minimum |
2 | | contribution
to the System to be made by the State for each |
3 | | fiscal year shall be an amount
determined by the System to be |
4 | | sufficient to bring the total assets of the
System up to 90% of |
5 | | the total actuarial liabilities of the System by the end of
|
6 | | State fiscal year 2045. In making these determinations, the |
7 | | required State
contribution shall be calculated each year as a |
8 | | level percentage of payroll
over the years remaining to and |
9 | | including fiscal year 2045 and shall be
determined under the |
10 | | projected unit credit actuarial cost method.
|
11 | | For State fiscal years 1996 through 2005, the State |
12 | | contribution to
the System, as a percentage of the applicable |
13 | | employee payroll, shall be
increased in equal annual increments |
14 | | so that by State fiscal year 2011, the
State is contributing at |
15 | | the rate required under this Section.
|
16 | | Notwithstanding any other provision of this Article, the |
17 | | total required State
contribution for State fiscal year 2006 is |
18 | | $166,641,900.
|
19 | | Notwithstanding any other provision of this Article, the |
20 | | total required State
contribution for State fiscal year 2007 is |
21 | | $252,064,100.
|
22 | | For each of State fiscal years 2008 through 2009, the State |
23 | | contribution to
the System, as a percentage of the applicable |
24 | | employee payroll, shall be
increased in equal annual increments |
25 | | from the required State contribution for State fiscal year |
26 | | 2007, so that by State fiscal year 2011, the
State is |
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1 | | contributing at the rate otherwise required under this Section.
|
2 | | Notwithstanding any other provision of this Article, the |
3 | | total required State contribution for State fiscal year 2010 is |
4 | | $702,514,000 and shall be made from the State Pensions Fund and |
5 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
6 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
7 | | share of bond sale expenses determined by the System's share of |
8 | | total bond proceeds, (ii) any amounts received from the General |
9 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
10 | | proceeds due to the issuance of discounted bonds, if |
11 | | applicable. |
12 | | Notwithstanding any other provision of this Article, the
|
13 | | total required State contribution for State fiscal year 2011 is
|
14 | | the amount recertified by the System on or before April 1, 2011 |
15 | | pursuant to Section 15-165 and shall be made from the State |
16 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
17 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
18 | | less (i) the pro rata
share of bond sale expenses determined by |
19 | | the System's share of
total bond proceeds, (ii) any amounts |
20 | | received from the General
Revenue Fund in fiscal year 2011, and |
21 | | (iii) any reduction in bond
proceeds due to the issuance of |
22 | | discounted bonds, if
applicable. |
23 | | Beginning in State fiscal year 2046, the minimum State |
24 | | contribution for
each fiscal year shall be the amount needed to |
25 | | maintain the total assets of
the System at 90% of the total |
26 | | actuarial liabilities of the System.
|
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1 | | Amounts received by the System pursuant to Section 25 of |
2 | | the Budget Stabilization Act or Section 8.12 of the State |
3 | | Finance Act in any fiscal year do not reduce and do not |
4 | | constitute payment of any portion of the minimum State |
5 | | contribution required under this Article in that fiscal year. |
6 | | Such amounts shall not reduce, and shall not be included in the |
7 | | calculation of, the required State contributions under this |
8 | | Article in any future year until the System has reached a |
9 | | funding ratio of at least 90%. A reference in this Article to |
10 | | the "required State contribution" or any substantially similar |
11 | | term does not include or apply to any amounts payable to the |
12 | | System under Section 25 of the Budget Stabilization Act. |
13 | | Notwithstanding any other provision of this Section, the |
14 | | required State
contribution for State fiscal year 2005 and for |
15 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
16 | | under this Section and
certified under Section 15-165, shall |
17 | | not exceed an amount equal to (i) the
amount of the required |
18 | | State contribution that would have been calculated under
this |
19 | | Section for that fiscal year if the System had not received any |
20 | | payments
under subsection (d) of Section 7.2 of the General |
21 | | Obligation Bond Act, minus
(ii) the portion of the State's |
22 | | total debt service payments for that fiscal
year on the bonds |
23 | | issued in fiscal year 2003 for the purposes of that Section |
24 | | 7.2, as determined
and certified by the Comptroller, that is |
25 | | the same as the System's portion of
the total moneys |
26 | | distributed under subsection (d) of Section 7.2 of the General
|
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1 | | Obligation Bond Act. In determining this maximum for State |
2 | | fiscal years 2008 through 2010, however, the amount referred to |
3 | | in item (i) shall be increased, as a percentage of the |
4 | | applicable employee payroll, in equal increments calculated |
5 | | from the sum of the required State contribution for State |
6 | | fiscal year 2007 plus the applicable portion of the State's |
7 | | total debt service payments for fiscal year 2007 on the bonds |
8 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
9 | | the General
Obligation Bond Act, so that, by State fiscal year |
10 | | 2011, the
State is contributing at the rate otherwise required |
11 | | under this Section.
|
12 | | (a-2) For employees first hired on or after 6 months after |
13 | | the effective date of this amendatory Act of the 100th General |
14 | | Assembly who have elected the benefits under Section 1-161 of |
15 | | this Code, the employer shall annually contribute an amount, |
16 | | expressed as a percentage of payroll, equal to the defined |
17 | | benefit normal cost of the defined benefit plan, less the |
18 | | employee contribution, plus 2%. On an annual basis, the System |
19 | | shall certify to each employer the amount of unfunded liability |
20 | | accrued in the employer's account to be paid by the employer so |
21 | | that the System is 90% funded by the end of State fiscal year |
22 | | 2045. The contributions shall be divided equally over a |
23 | | 12-month period and made monthly. The employer shall also |
24 | | contribute an amount equal to the employer defined |
25 | | contribution, as set on an individual employee basis, under |
26 | | paragraph (2) of subsection (k) of Section 1-161 during each |
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1 | | pay period. The System shall have the authority to adopt rules |
2 | | regarding implementation of employer contributions. |
3 | | (b) If an employee is paid from trust or federal funds, the |
4 | | employer
shall pay to the Board contributions from those funds |
5 | | which are
sufficient to cover the accruing normal costs on |
6 | | behalf of the employee.
However, universities having employees |
7 | | who are compensated out of local
auxiliary funds, income funds, |
8 | | or service enterprise funds are not required
to pay such |
9 | | contributions on behalf of those employees. The local auxiliary
|
10 | | funds, income funds, and service enterprise funds of |
11 | | universities shall not be
considered trust funds for the |
12 | | purpose of this Article, but funds of alumni
associations, |
13 | | foundations, and athletic associations which are affiliated |
14 | | with
the universities included as employers under this Article |
15 | | and other employers
which do not receive State appropriations |
16 | | are considered to be trust funds for
the purpose of this |
17 | | Article.
|
18 | | (b-1) The City of Urbana and the City of Champaign shall |
19 | | each make
employer contributions to this System for their |
20 | | respective firefighter
employees who participate in this |
21 | | System pursuant to subsection (h) of Section
15-107. The rate |
22 | | of contributions to be made by those municipalities shall
be |
23 | | determined annually by the Board on the basis of the actuarial |
24 | | assumptions
adopted by the Board and the recommendations of the |
25 | | actuary, and shall be
expressed as a percentage of salary for |
26 | | each such employee. The Board shall
certify the rate to the |
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1 | | affected municipalities as soon as may be practical.
The |
2 | | employer contributions required under this subsection shall be |
3 | | remitted by
the municipality to the System at the same time and |
4 | | in the same manner as
employee contributions.
|
5 | | (c) Through State fiscal year 1995: The total employer |
6 | | contribution shall
be apportioned among the various funds of |
7 | | the State and other employers,
whether trust, federal, or other |
8 | | funds, in accordance with actuarial procedures
approved by the |
9 | | Board. State of Illinois contributions for employers receiving
|
10 | | State appropriations for personal services shall be payable |
11 | | from appropriations
made to the employers or to the System. The |
12 | | contributions for Class I
community colleges covering earnings |
13 | | other than those paid from trust and
federal funds, shall be |
14 | | payable solely from appropriations to the Illinois
Community |
15 | | College Board or the System for employer contributions.
|
16 | | (d) Beginning in State fiscal year 1996, the required State |
17 | | contributions
to the System shall be appropriated directly to |
18 | | the System and shall be payable
through vouchers issued in |
19 | | accordance with subsection (c) of Section 15-165, except as |
20 | | provided in subsection (g).
|
21 | | (e) The State Comptroller shall draw warrants payable to |
22 | | the System upon
proper certification by the System or by the |
23 | | employer in accordance with the
appropriation laws and this |
24 | | Code.
|
25 | | (f) Normal costs under this Section means liability for
|
26 | | pensions and other benefits which accrues to the System because |
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1 | | of the
credits earned for service rendered by the participants |
2 | | during the
fiscal year and expenses of administering the |
3 | | System, but shall not
include the principal of or any |
4 | | redemption premium or interest on any bonds
issued by the Board |
5 | | or any expenses incurred or deposits required in
connection |
6 | | therewith.
|
7 | | (g) For academic years beginning on or after June 1, 2005 |
8 | | and before July 1, 2018, if If the amount of a participant's |
9 | | earnings for any academic year used to determine the final rate |
10 | | of earnings, determined on a full-time equivalent basis, |
11 | | exceeds the amount of his or her earnings with the same |
12 | | employer for the previous academic year, determined on a |
13 | | full-time equivalent basis, by more than 6%, the participant's |
14 | | employer shall pay to the System, in addition to all other |
15 | | payments required under this Section and in accordance with |
16 | | guidelines established by the System, the present value of the |
17 | | increase in benefits resulting from the portion of the increase |
18 | | in earnings that is in excess of 6%. This present value shall |
19 | | be computed by the System on the basis of the actuarial |
20 | | assumptions and tables used in the most recent actuarial |
21 | | valuation of the System that is available at the time of the |
22 | | computation. The System may require the employer to provide any |
23 | | pertinent information or documentation. |
24 | | Whenever it determines that a payment is or may be required |
25 | | under this subsection (g), the System shall calculate the |
26 | | amount of the payment and bill the employer for that amount. |
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1 | | The bill shall specify the calculations used to determine the |
2 | | amount due. If the employer disputes the amount of the bill, it |
3 | | may, within 30 days after receipt of the bill, apply to the |
4 | | System in writing for a recalculation. The application must |
5 | | specify in detail the grounds of the dispute and, if the |
6 | | employer asserts that the calculation is subject to subsection |
7 | | (h) or (i) of this Section, must include an affidavit setting |
8 | | forth and attesting to all facts within the employer's |
9 | | knowledge that are pertinent to the applicability of subsection |
10 | | (h) or (i). Upon receiving a timely application for |
11 | | recalculation, the System shall review the application and, if |
12 | | appropriate, recalculate the amount due.
|
13 | | The employer contributions required under this subsection |
14 | | (g) may be paid in the form of a lump sum within 90 days after |
15 | | receipt of the bill. If the employer contributions are not paid |
16 | | within 90 days after receipt of the bill, then interest will be |
17 | | charged at a rate equal to the System's annual actuarially |
18 | | assumed rate of return on investment compounded annually from |
19 | | the 91st day after receipt of the bill. Payments must be |
20 | | concluded within 3 years after the employer's receipt of the |
21 | | bill. |
22 | | When assessing payment for any amount due under this |
23 | | subsection (g), the System shall include earnings, to the |
24 | | extent not established by a participant under Section 15-113.11 |
25 | | or 15-113.12, that would have been paid to the participant had |
26 | | the participant not taken (i) periods of voluntary or |
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1 | | involuntary furlough occurring on or after July 1, 2015 and on |
2 | | or before June 30, 2017 or (ii) periods of voluntary pay |
3 | | reduction in lieu of furlough occurring on or after July 1, |
4 | | 2015 and on or before June 30, 2017. Determining earnings that |
5 | | would have been paid to a participant had the participant not |
6 | | taken periods of voluntary or involuntary furlough or periods |
7 | | of voluntary pay reduction shall be the responsibility of the |
8 | | employer, and shall be reported in a manner prescribed by the |
9 | | System. |
10 | | (g-1) For academic years beginning on or after July 1, |
11 | | 2018, if the amount of a participant's earnings for any |
12 | | academic year used to determine the final rate of earnings, |
13 | | determined on a full-time equivalent basis, exceeds the amount |
14 | | of his or her earnings with the same employer for the previous |
15 | | academic year, determined on a full-time equivalent basis, by |
16 | | more than the unadjusted percentage increase in the consumer |
17 | | price index-u for the calendar year immediately preceding the |
18 | | beginning of the academic year, published by the Public Pension |
19 | | Division of the Department of Insurance by November 1 of each |
20 | | year, then the participant's employer shall pay to the System, |
21 | | in addition to all other payments required under this Section |
22 | | and in accordance with guidelines established by the System, |
23 | | the present value of the increase in benefits resulting from |
24 | | the portion of the increase in earnings that is in excess of |
25 | | the unadjusted percentage increase in the consumer price |
26 | | index-u for the applicable calendar year. This present value |
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1 | | shall be computed by the System on the basis of the actuarial |
2 | | assumptions and tables used in the most recent actuarial |
3 | | valuation of the System that is available at the time of the |
4 | | computation. The System may require the employer to provide any |
5 | | pertinent information or documentation. |
6 | | Whenever it determines that a payment is or may be required |
7 | | under this subsection (g-1), the System shall calculate the |
8 | | amount of the payment and bill the employer for that amount. |
9 | | The bill shall specify the calculations used to determine the |
10 | | amount due. If the employer disputes the amount of the bill, it |
11 | | may, within 30 days after receipt of the bill, apply to the |
12 | | System in writing for a recalculation. The application must |
13 | | specify in detail the grounds of the dispute and, if the |
14 | | employer asserts that the calculation is subject to subsection |
15 | | (i-1) of this Section, must include an affidavit setting forth |
16 | | and attesting to all facts within the employer's knowledge that |
17 | | are pertinent to the applicability of subsection (i-1). Upon |
18 | | receiving a timely application for recalculation, the System |
19 | | shall review the application and, if appropriate, recalculate |
20 | | the amount due. |
21 | | The employer contributions required under this subsection |
22 | | (g-1) may be paid in the form of a lump sum within 90 days after |
23 | | receipt of the bill. If the employer contributions are not paid |
24 | | within 90 days after receipt of the bill, then interest shall |
25 | | be charged at a rate equal to the System's annual actuarially |
26 | | assumed rate of return on investment compounded annually from |
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1 | | the 91st day after receipt of the bill. Payments must be |
2 | | concluded within 3 years after the employer's receipt of the |
3 | | bill. |
4 | | For the purposes of this Section, "consumer price index-u" |
5 | | means the index published by the Bureau of Labor Statistics of |
6 | | the United States Department of Labor that measures the average |
7 | | change in prices of goods and services purchased by all urban |
8 | | consumers, United States city average, all items, 1982-84 = |
9 | | 100. The new amount resulting from each annual adjustment shall |
10 | | be determined by the Public Pension Division of the Department |
11 | | of Insurance and made available to the boards of the retirement |
12 | | systems and pension funds by November 1 of each year. |
13 | | (h) This subsection (h) applies only to payments made or |
14 | | salary increases given on or after June 1, 2005 but before July |
15 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
16 | | require the System to refund any payments received before July |
17 | | 31, 2006 (the effective date of Public Act 94-1057). |
18 | | When assessing payment for any amount due under subsection |
19 | | (g), the System shall exclude earnings increases paid to |
20 | | participants under contracts or collective bargaining |
21 | | agreements entered into, amended, or renewed before June 1, |
22 | | 2005.
|
23 | | When assessing payment for any amount due under subsection |
24 | | (g), the System shall exclude earnings increases paid to a |
25 | | participant at a time when the participant is 10 or more years |
26 | | from retirement eligibility under Section 15-135.
|
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1 | | When assessing payment for any amount due under subsection |
2 | | (g), the System shall exclude earnings increases resulting from |
3 | | overload work, including a contract for summer teaching, or |
4 | | overtime when the employer has certified to the System, and the |
5 | | System has approved the certification, that: (i) in the case of |
6 | | overloads (A) the overload work is for the sole purpose of |
7 | | academic instruction in excess of the standard number of |
8 | | instruction hours for a full-time employee occurring during the |
9 | | academic year that the overload is paid and (B) the earnings |
10 | | increases are equal to or less than the rate of pay for |
11 | | academic instruction computed using the participant's current |
12 | | salary rate and work schedule; and (ii) in the case of |
13 | | overtime, the overtime was necessary for the educational |
14 | | mission. |
15 | | When assessing payment for any amount due under subsection |
16 | | (g), the System shall exclude any earnings increase resulting |
17 | | from (i) a promotion for which the employee moves from one |
18 | | classification to a higher classification under the State |
19 | | Universities Civil Service System, (ii) a promotion in academic |
20 | | rank for a tenured or tenure-track faculty position, or (iii) a |
21 | | promotion that the Illinois Community College Board has |
22 | | recommended in accordance with subsection (k) of this Section. |
23 | | These earnings increases shall be excluded only if the |
24 | | promotion is to a position that has existed and been filled by |
25 | | a member for no less than one complete academic year and the |
26 | | earnings increase as a result of the promotion is an increase |
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1 | | that results in an amount no greater than the average salary |
2 | | paid for other similar positions. |
3 | | (i) When assessing payment for any amount due under |
4 | | subsection (g), the System shall exclude any salary increase |
5 | | described in subsection (h) of this Section given on or after |
6 | | July 1, 2011 but before July 1, 2014 under a contract or |
7 | | collective bargaining agreement entered into, amended, or |
8 | | renewed on or after June 1, 2005 but before July 1, 2011. |
9 | | Notwithstanding any other provision of this Section, any |
10 | | payments made or salary increases given after June 30, 2014 |
11 | | shall be used in assessing payment for any amount due under |
12 | | subsection (g) of this Section.
|
13 | | (i-1) When assessing payment for any amount due under |
14 | | subsection (g-1), the System shall exclude salary increases |
15 | | paid to participants under contracts or collective bargaining |
16 | | agreements entered into, amended, or renewed before the |
17 | | effective date of this amendatory Act of the 100th General |
18 | | Assembly. |
19 | | (j) The System shall prepare a report and file copies of |
20 | | the report with the Governor and the General Assembly by |
21 | | January 1, 2007 that contains all of the following information: |
22 | | (1) The number of recalculations required by the |
23 | | changes made to this Section by Public Act 94-1057 for each |
24 | | employer. |
25 | | (2) The dollar amount by which each employer's |
26 | | contribution to the System was changed due to |
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1 | | recalculations required by Public Act 94-1057. |
2 | | (3) The total amount the System received from each |
3 | | employer as a result of the changes made to this Section by |
4 | | Public Act 94-4. |
5 | | (4) The increase in the required State contribution |
6 | | resulting from the changes made to this Section by Public |
7 | | Act 94-1057. |
8 | | (j-5) For academic years beginning on or after July 1, |
9 | | 2018, if the amount of a participant's earnings for any |
10 | | academic year, determined on a full-time equivalent basis, |
11 | | exceeds $140,000, the participant's employer shall pay to the |
12 | | System, in addition to all other payments required under this |
13 | | Section and in accordance with guidelines established by the |
14 | | System, the amount of the earnings that exceed $140,000 |
15 | | multiplied by the level percentage of payroll used in that |
16 | | fiscal year, as determined by the System, to be sufficient to |
17 | | bring the total assets of the System up to 90% of the total |
18 | | actuarial liabilities of the System by the end of State fiscal |
19 | | year 2045. This amount shall be computed by the System on the |
20 | | basis of the actuarial assumptions and tables used in the most |
21 | | recent actuarial valuation of the System that is available at |
22 | | the time of the computation. The System may require the |
23 | | employer to provide any pertinent information or |
24 | | documentation. |
25 | | Whenever it determines that a payment is or may be required |
26 | | under this subsection, the System shall calculate the amount of |
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1 | | the payment and bill the employer for that amount. The bill |
2 | | shall specify the calculations used to determine the amount |
3 | | due. If the employer disputes the amount of the bill, it may, |
4 | | within 30 days after receipt of the bill, apply to the System |
5 | | in writing for a recalculation. The application must specify in |
6 | | detail the grounds of the dispute. Upon receiving a timely |
7 | | application for recalculation, the System shall review the |
8 | | application and, if appropriate, recalculate the amount due. |
9 | | The employer contributions required under this subsection |
10 | | 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 | | (k) The Illinois Community College Board shall adopt rules |
19 | | for recommending lists of promotional positions submitted to |
20 | | the Board by community colleges and for reviewing the |
21 | | promotional lists on an annual basis. When recommending |
22 | | promotional lists, the Board shall consider the similarity of |
23 | | the positions submitted to those positions recognized for State |
24 | | universities by the State Universities Civil Service System. |
25 | | The Illinois Community College Board shall file a copy of its |
26 | | findings with the System. The System shall consider the |
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1 | | findings of the Illinois Community College Board when making |
2 | | determinations under this Section. The System shall not exclude |
3 | | any earnings increases resulting from a promotion when the |
4 | | promotion was not submitted by a community college. Nothing in |
5 | | this subsection (k) shall require any community college to |
6 | | submit any information to the Community College Board.
|
7 | | (l) 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 | | (m) 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 | | (Source: P.A. 98-92, eff. 7-16-13; 98-463, eff. 8-16-13; |
23 | | 99-897, eff. 1-1-17 .)
|
24 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
|
25 | | Sec. 15-157. Employee Contributions.
|
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1 | | (a) Each participating employee
shall make contributions |
2 | | towards the retirement
benefits payable under the retirement |
3 | | program applicable to the
employee from each payment
of |
4 | | earnings applicable to employment under this system on and |
5 | | after the
date of becoming a participant as follows: Prior to |
6 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
7 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
8 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
9 | | are to be considered as normal contributions for purposes
of |
10 | | this Article.
|
11 | | Each participant who is a police officer or firefighter |
12 | | shall make normal
contributions of 8% of each payment of |
13 | | earnings applicable to employment as a
police officer or |
14 | | firefighter under this system on or after September 1, 1981,
|
15 | | unless he or she files with the board within 60 days after the |
16 | | effective date
of this amendatory Act of 1991 or 60 days after |
17 | | the board receives notice that
he or she is employed as a |
18 | | police officer or firefighter, whichever is later,
a written |
19 | | notice waiving the retirement formula provided by Rule 4 of |
20 | | Section
15-136. This waiver shall be irrevocable. If a |
21 | | participant had met the
conditions set forth in Section |
22 | | 15-132.1 prior to the effective date of this
amendatory Act of |
23 | | 1991 but failed to make the additional normal contributions
|
24 | | required by this paragraph, he or she may elect to pay the |
25 | | additional
contributions plus compound interest at the |
26 | | effective rate. If such payment
is received by the board, the |
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1 | | service shall be considered as police officer
service in |
2 | | calculating the retirement annuity under Rule 4 of Section |
3 | | 15-136.
While performing service described in clause (i) or |
4 | | (ii) of Rule 4 of Section
15-136, a participating employee |
5 | | shall be deemed to be employed as a
firefighter for the purpose |
6 | | of determining the rate of employee contributions
under this |
7 | | Section.
|
8 | | (b) Starting September 1, 1969, each participating |
9 | | employee shall make
additional contributions of 1/2 of 1% of |
10 | | earnings to finance a portion
of the cost of the annual |
11 | | increases in retirement annuity provided under
Section 15-136, |
12 | | except that with respect to participants in the
self-managed |
13 | | plan this additional contribution shall be used to finance the
|
14 | | benefits obtained under that retirement program. Beginning |
15 | | July 1, 2018 or the effective date of the Tier 1 employee's |
16 | | election under paragraph (1) of subsection (a) of Section |
17 | | 15-132.9, whichever is later, each Tier 1 employee who made the |
18 | | election under paragraph (1) of subsection (a) of Section |
19 | | 15-132.9 is no longer required to make contributions under this |
20 | | subsection.
|
21 | | (c) Except as provided in subsection (c-5), in In addition |
22 | | to the amounts described in subsections (a) and (b) of this
|
23 | | Section, each participating employee shall make contributions |
24 | | of 1% of earnings
applicable under this system on and after |
25 | | August 1, 1959. The contributions
made under this subsection |
26 | | (c) shall be considered as survivor's insurance
contributions |
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1 | | for purposes of this Article if the employee is covered under
|
2 | | the traditional benefit package, and such contributions shall |
3 | | be considered
as additional contributions for purposes of this |
4 | | Article if the employee is
participating in the self-managed |
5 | | plan or has elected to participate in the
portable benefit |
6 | | package and has completed the applicable one-year waiting
|
7 | | period. Contributions in excess of $80 during any fiscal year |
8 | | beginning before
August 31, 1969 and in excess of $120 during |
9 | | any fiscal year thereafter until
September 1, 1971 shall be |
10 | | considered as additional contributions for purposes
of this |
11 | | Article.
|
12 | | (c-5) Beginning July 1, 2018 or the effective date of the |
13 | | Tier 1 employee's election under paragraph (1) of subsection |
14 | | (a) of Section 15-132.9, whichever is later, in lieu of the |
15 | | contributions otherwise required under subsection (c), each |
16 | | Tier 1 employee who made the election under paragraph (1) of |
17 | | subsection (a) of Section 15-132.9 shall make contributions of |
18 | | 0.7% of earnings applicable under this System and each Tier 1 |
19 | | employee who is a police officer or firefighter who makes |
20 | | normal contributions of 8% of each payment of earnings |
21 | | applicable to employment as a police officer or firefighter |
22 | | under this System and who made the election under paragraph (1) |
23 | | of subsection (a) of Section 15-132.9 shall make contributions |
24 | | of 0.55% of earnings applicable under this System. The |
25 | | contributions made under this subsection (c-5) shall be |
26 | | considered as survivor's insurance contributions for purposes |
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1 | | of this Article and such contributions shall be considered as |
2 | | additional contributions for purposes of this Article if the |
3 | | employee has elected to participate in the portable benefit |
4 | | package and has completed the applicable one-year waiting |
5 | | period. |
6 | | (d) If the board by board rule so permits and subject to |
7 | | such conditions
and limitations as may be specified in its |
8 | | rules, a participant may make
other additional contributions of |
9 | | such percentage of earnings or amounts as
the participant shall |
10 | | elect in a written notice thereof received by the board.
|
11 | | (e) That fraction of a participant's total accumulated |
12 | | normal
contributions, the numerator of which is equal to the |
13 | | number of years of
service in excess of that which is required |
14 | | to qualify for the maximum
retirement annuity, and the |
15 | | denominator of which is equal to the total
service of the |
16 | | participant, shall be considered as accumulated additional
|
17 | | contributions. The determination of the applicable maximum |
18 | | annuity and
the adjustment in contributions required by this |
19 | | provision shall be made
as of the date of the participant's |
20 | | retirement.
|
21 | | (f) Notwithstanding the foregoing, a participating |
22 | | employee shall not
be required to make contributions under this |
23 | | Section after the date upon
which continuance of such |
24 | | contributions would otherwise cause his or her
retirement |
25 | | annuity to exceed the maximum retirement annuity as specified |
26 | | in
clause (1) of subsection (c) of Section 15-136.
|
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1 | | (g) A participant may make contributions for the purchase |
2 | | of
service credit under this Article; however, only a |
3 | | participating employee may make optional contributions under |
4 | | subsection (b) of Section 15-157.1 of this Article.
|
5 | | (h) A Tier 2 member shall not make contributions on |
6 | | earnings that exceed the limitation as prescribed under |
7 | | subsection (b) of Section 15-111 of this Article. |
8 | | (Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
|
9 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
|
10 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
11 | | which has been held unconstitutional)
|
12 | | Sec. 15-165. To certify amounts and submit vouchers.
|
13 | | (a) The Board shall certify to the Governor on or before |
14 | | November 15 of each
year until November 15, 2011 the |
15 | | appropriation required from State funds for the purposes of |
16 | | this
System for the following fiscal year. The certification |
17 | | under this subsection (a) shall include a copy
of the actuarial |
18 | | recommendations upon which it is based and shall specifically |
19 | | identify the System's projected State normal cost for that |
20 | | fiscal year and the projected State cost for the self-managed |
21 | | plan for that fiscal year.
|
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 |
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1 | | System under subsection (d) of Section 7.2 of the General
|
2 | | Obligation Bond Act.
|
3 | | On or before July 1, 2005, the Board shall recalculate and |
4 | | recertify
to the Governor the amount of the required State
|
5 | | contribution to the System for State fiscal year 2006, taking |
6 | | into account the changes in required State contributions made |
7 | | by this amendatory Act of the 94th General Assembly.
|
8 | | On or before April 1, 2011, the Board shall recalculate and |
9 | | recertify to the Governor the amount of the required State |
10 | | contribution to the System for State fiscal year 2011, applying |
11 | | the changes made by Public Act 96-889 to the System's assets |
12 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
13 | | was approved on that date. |
14 | | (a-5) On or before November 1 of each year, beginning |
15 | | November 1, 2012, the Board shall submit to the State Actuary, |
16 | | the Governor, and the General Assembly a proposed certification |
17 | | of the amount of the required State contribution to the System |
18 | | for the next fiscal year, along with all of the actuarial |
19 | | assumptions, calculations, and data upon which that proposed |
20 | | certification is based. On or before January 1 of each year, |
21 | | beginning January 1, 2013, the State Actuary shall issue a |
22 | | preliminary report concerning the proposed certification and |
23 | | identifying, if necessary, recommended changes in actuarial |
24 | | assumptions that the Board must consider before finalizing its |
25 | | certification of the required State contributions. On or before |
26 | | January 15, 2013 and each January 15 thereafter, the Board |
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1 | | shall certify to the Governor and the General Assembly the |
2 | | amount of the required State contribution for the next fiscal |
3 | | year. The Board's certification must note, in a written |
4 | | response to the State Actuary, any deviations from the State |
5 | | Actuary's recommended changes, the reason or reasons for not |
6 | | following the State Actuary's recommended changes, and the |
7 | | fiscal impact of not following the State Actuary's recommended |
8 | | changes on the required State contribution. |
9 | | (a-10) For purposes of subsection (c-5) of Section 20 of |
10 | | the
Budget Stabilization Act, on or before November 1 of each |
11 | | year
beginning November 1, 2019, the Board shall determine the
|
12 | | amount of the State contribution to the System that would have
|
13 | | been required for the next fiscal year if Section 1-161, |
14 | | subsection (a-2) of Section 15-155, and the changes made to |
15 | | Section 1-160 by this amendatory Act of the 100th General |
16 | | Assembly had not taken effect, using the
best and most recent |
17 | | available data but based on the law in
effect on May 31, 2019. |
18 | | The Board shall submit to the State
Actuary, the Governor, and |
19 | | the General Assembly a proposed
certification, along with the |
20 | | relevant law, actuarial
assumptions, calculations, and data |
21 | | upon which that
certification is based. On or before January 1, |
22 | | 2020 and every January 1 thereafter, the State Actuary shall |
23 | | issue a
preliminary report concerning the proposed |
24 | | certification and
identifying, if necessary, recommended |
25 | | changes in actuarial
assumptions that the Board must consider |
26 | | before finalizing its
certification. On or before January 15, |
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1 | | 2020 and every January
1 thereafter, the Board shall certify to |
2 | | the Governor and the
General Assembly the amount of the State |
3 | | contribution to the
System that would have been required for |
4 | | the next fiscal year
if Section 1-161, subsection (a-2) of |
5 | | Section 15-155, and the changes made to Section 1-160 by this |
6 | | amendatory Act of the 100th General Assembly had not taken |
7 | | effect, using the best and most recent available data but
based |
8 | | on the law in effect on May 31, 2019. The Board's
certification |
9 | | must note any deviations from the State Actuary's
recommended |
10 | | changes, the reason or reasons for not following
the State |
11 | | Actuary's recommended changes, and the impact of not
following |
12 | | the State Actuary's recommended changes. |
13 | | (a-15) As soon as practical after the effective date of |
14 | | this amendatory Act of the 100th General Assembly, the Board |
15 | | shall recalculate and recertify to the State Actuary, the |
16 | | Governor, and the General Assembly the amount of the State |
17 | | contribution to the System for State fiscal year 2018, taking |
18 | | into account the changes in required State contributions made |
19 | | by this amendatory Act of the 100th General Assembly. The State |
20 | | Actuary shall review the assumptions and valuations underlying |
21 | | the Board's revised certification and issue a preliminary |
22 | | report concerning the proposed recertification and |
23 | | identifying, if necessary, recommended changes in actuarial |
24 | | assumptions that the Board must consider before finalizing its |
25 | | certification of the required State contributions. The Board's |
26 | | final certification must note any deviations from the State |
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1 | | Actuary's recommended changes, the reason or reasons for not |
2 | | following the State Actuary's recommended changes, and the |
3 | | fiscal impact of not following the State Actuary's recommended |
4 | | changes on the required State contribution. |
5 | | (a-20) On or before May 1, 2018, the Board shall |
6 | | recalculate and recertify
to the Governor and the General |
7 | | Assembly the amount of the required State
contribution to the |
8 | | System for State fiscal year 2019, taking into account the |
9 | | effect on the System's liabilities of the elections made under |
10 | | Section 15-132.9. |
11 | | On or before October 1, 2018, the Board shall recalculate |
12 | | and recertify to the Governor and the General Assembly the |
13 | | amount of the required State contribution to the System for |
14 | | State fiscal year 2019, taking into account the reduction |
15 | | specified under item (3) of subsection (a-1) of Section 15-155. |
16 | | (b) The Board shall certify to the State Comptroller or |
17 | | employer, as the
case may be, from time to time, by its |
18 | | chairperson and secretary, with its seal
attached, the amounts |
19 | | payable to the System from the various funds.
|
20 | | (c) Beginning in State fiscal year 1996, on or as soon as |
21 | | possible after the
15th day of each month the Board shall |
22 | | submit vouchers for payment of State
contributions to the |
23 | | System, in a total monthly amount of one-twelfth of the
|
24 | | required annual State contribution certified under subsection |
25 | | (a).
From the effective date of this amendatory Act
of the 93rd |
26 | | General Assembly through June 30, 2004, the Board shall not
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1 | | submit vouchers for the remainder of fiscal year 2004 in excess |
2 | | of the
fiscal year 2004 certified contribution amount |
3 | | determined
under this Section after taking into consideration |
4 | | the transfer to the
System under subsection (b) of Section |
5 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
6 | | the State Comptroller and Treasurer by warrants drawn
on the |
7 | | funds appropriated to the System for that fiscal year.
|
8 | | If in any month the amount remaining unexpended from all |
9 | | other
appropriations to the System for the applicable fiscal |
10 | | year (including the
appropriations to the System under Section |
11 | | 8.12 of the State Finance Act and
Section 1 of the State |
12 | | Pension Funds Continuing Appropriation Act) is less than
the |
13 | | amount lawfully vouchered under this Section, the difference |
14 | | shall be paid
from the General Revenue Fund under the |
15 | | continuing appropriation authority
provided in Section 1.1 of |
16 | | the State Pension Funds Continuing Appropriation
Act.
|
17 | | (d) So long as the payments received are the full amount |
18 | | lawfully
vouchered under this Section, payments received by the |
19 | | System under this
Section shall be applied first toward the |
20 | | employer contribution to the
self-managed plan established |
21 | | under Section 15-158.2. Payments shall be
applied second toward |
22 | | the employer's portion of the normal costs of the System,
as |
23 | | defined in subsection (f) of Section 15-155. The balance shall |
24 | | be applied
toward the unfunded actuarial liabilities of the |
25 | | System.
|
26 | | (e) In the event that the System does not receive, as a |
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1 | | result of
legislative enactment or otherwise, payments |
2 | | sufficient to
fully fund the employer contribution to the |
3 | | self-managed plan
established under Section 15-158.2 and to |
4 | | fully fund that portion of the
employer's portion of the normal |
5 | | costs of the System, as calculated in
accordance with Section |
6 | | 15-155(a-1), then any payments received shall be
applied |
7 | | proportionately to the optional retirement program established |
8 | | under
Section 15-158.2 and to the employer's portion of the |
9 | | normal costs of the
System, as calculated in accordance with |
10 | | Section 15-155(a-1).
|
11 | | (Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
|
12 | | (40 ILCS 5/15-185.5 new) |
13 | | Sec. 15-185.5. Accelerated pension benefit payment. |
14 | | (a) As used in this Section: |
15 | | "Eligible person" means a person who: |
16 | | (1) has terminated service; |
17 | | (2) has accrued sufficient service credit to be |
18 | | eligible to receive a retirement annuity under this |
19 | | Article; |
20 | | (3) has not received any retirement annuity under this |
21 | | Article; |
22 | | (4) does not have a QILDRO in effect against him or her |
23 | | under this Article; and |
24 | | (5) is not a participant in the self-managed plan under |
25 | | Section 15-158.2. |
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1 | | "Pension benefit" means the benefits under this Article, or |
2 | | Article 1 as it relates to those benefits, including any |
3 | | anticipated annual increases, that an eligible person is |
4 | | entitled to upon attainment of the applicable retirement age. |
5 | | "Pension benefit" also includes applicable survivor's or |
6 | | disability benefits. |
7 | | (b) Before January 1, 2018, and annually thereafter, the |
8 | | System shall calculate, using actuarial tables and other |
9 | | assumptions adopted by the Board, the net present value of |
10 | | pension benefits for each eligible person and shall offer each |
11 | | eligible person the opportunity to irrevocably elect to receive |
12 | | an amount determined by the System to be equal to 70% of the |
13 | | net present value of his or her pension benefits in lieu of |
14 | | receiving any pension benefit. The offer shall specify the |
15 | | dollar amount that the eligible person will receive if he or |
16 | | she so elects and shall expire when a subsequent offer is made |
17 | | to an eligible person or when the System determines that 10% of |
18 | | eligible persons in that year have made the election under this |
19 | | subsection, whichever occurs first. The System shall make a |
20 | | good faith effort to contact every eligible person to notify |
21 | | him or her of the election and of the amount of the accelerated |
22 | | pension benefit payment. |
23 | | Until the System determines that 10% of eligible persons in |
24 | | that year have made the election under this subsection, an |
25 | | eligible person may irrevocably elect to receive an accelerated |
26 | | pension benefit payment in the amount that the System offers |
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1 | | under this subsection in lieu of receiving any pension benefit. |
2 | | A person who elects to receive an accelerated pension benefit |
3 | | payment under this Section may not elect to proceed under the |
4 | | Retirement Systems Reciprocal Act with respect to service under |
5 | | this Article. |
6 | | (c) A person's credits and creditable service under this |
7 | | Article shall be terminated upon the person's receipt of an |
8 | | accelerated pension benefit payment under this Section, and no |
9 | | other benefit shall be paid under this Article based on those |
10 | | terminated credits and creditable service, including any |
11 | | retirement, survivor, or other benefit; except that to the |
12 | | extent that participation, benefits, or premiums under the |
13 | | State Employees Group Insurance Act of 1971 are based on the |
14 | | amount of service credit, the terminated service credit shall |
15 | | be used for that purpose. |
16 | | (d) If a person who has received an accelerated pension |
17 | | benefit payment under this Section returns to participating |
18 | | employee status under this Article, then: |
19 | | (1) Any benefits under the System earned as a result of |
20 | | that return to participating employee status shall be based |
21 | | solely on the person's credits and creditable service |
22 | | arising from the return to participating employee status. |
23 | | (2) The accelerated pension benefit payment may not be |
24 | | repaid to the System, and the terminated credits and |
25 | | creditable service may not under any circumstances be |
26 | | reinstated. |
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1 | | (e) As a condition of receiving an accelerated pension |
2 | | benefit payment, an eligible person must have another |
3 | | retirement plan or account qualified under the Internal Revenue |
4 | | Code of 1986, as amended, for the accelerated pension benefit |
5 | | payment to be rolled into. The accelerated pension benefit |
6 | | payment under this Section may be subject to withholding or |
7 | | payment of applicable taxes, but to the extent permitted by |
8 | | federal law, a person who receives an accelerated pension |
9 | | benefit payment under this Section must direct the System to |
10 | | pay all of that payment as a rollover into another retirement |
11 | | plan or account qualified under the Internal Revenue Code of |
12 | | 1986, as amended. |
13 | | (f) Before January 1, 2019 and every January 1 thereafter, |
14 | | the Board shall certify to the Illinois Finance Authority and |
15 | | the General Assembly the amount by which the total amount of |
16 | | accelerated pension benefit payments made under this Section |
17 | | exceed the amount appropriated to the System for the purpose of |
18 | | making those payments. |
19 | | (g) The Board shall adopt any rules necessary to implement |
20 | | this Section. |
21 | | (h) No provision of this Section shall be interpreted in a |
22 | | way that would cause the applicable System to cease to be a |
23 | | qualified plan under the Internal Revenue Code of 1986. |
24 | | (i) Notwithstanding any other provision of this Section, in |
25 | | no case shall the total amount of accelerated pension benefit |
26 | | payments paid under this Section, Section 14-147.5, and Section |
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1 | | 16-190.5 cause the Illinois Finance Authority to issue more |
2 | | than the $250,000,000 of State Pension Obligation Acceleration |
3 | | Bonds authorized in subsection (c-5) of Section 801-40 of the |
4 | | Illinois Finance Authority Act. |
5 | | (40 ILCS 5/15-198) |
6 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
7 | | which has been held unconstitutional)
|
8 | | Sec. 15-198. Application and expiration of new benefit |
9 | | increases. |
10 | | (a) As used in this Section, "new benefit increase" means |
11 | | an increase in the amount of any benefit provided under this |
12 | | Article, or an expansion of the conditions of eligibility for |
13 | | any benefit under this Article, that results from an amendment |
14 | | to this Code that takes effect after the effective date of this |
15 | | amendatory Act of the 94th General Assembly. "New benefit |
16 | | increase", however, does not include any benefit increase |
17 | | resulting from the changes made to this Article by this |
18 | | amendatory Act of the 100th General Assembly. |
19 | | (b) Notwithstanding any other provision of this Code or any |
20 | | subsequent amendment to this Code, every new benefit increase |
21 | | is subject to this Section and shall be deemed to be granted |
22 | | only in conformance with and contingent upon compliance with |
23 | | the provisions of this Section.
|
24 | | (c) The Public Act enacting a new benefit increase must |
25 | | identify and provide for payment to the System of additional |
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1 | | funding at least sufficient to fund the resulting annual |
2 | | increase in cost to the System as it accrues. |
3 | | Every new benefit increase is contingent upon the General |
4 | | Assembly providing the additional funding required under this |
5 | | subsection. The Commission on Government Forecasting and |
6 | | Accountability shall analyze whether adequate additional |
7 | | funding has been provided for the new benefit increase and |
8 | | shall report its analysis to the Public Pension Division of the |
9 | | Department of Insurance Financial and Professional Regulation . |
10 | | A new benefit increase created by a Public Act that does not |
11 | | include the additional funding required under this subsection |
12 | | is null and void. If the Public Pension Division determines |
13 | | that the additional funding provided for a new benefit increase |
14 | | under this subsection is or has become inadequate, it may so |
15 | | certify to the Governor and the State Comptroller and, in the |
16 | | absence of corrective action by the General Assembly, the new |
17 | | benefit increase shall expire at the end of the fiscal year in |
18 | | which the certification is made.
|
19 | | (d) Every new benefit increase shall expire 5 years after |
20 | | its effective date or on such earlier date as may be specified |
21 | | in the language enacting the new benefit increase or provided |
22 | | under subsection (c). This does not prevent the General |
23 | | Assembly from extending or re-creating a new benefit increase |
24 | | by law. |
25 | | (e) Except as otherwise provided in the language creating |
26 | | the new benefit increase, a new benefit increase that expires |
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1 | | under this Section continues to apply to persons who applied |
2 | | and qualified for the affected benefit while the new benefit |
3 | | increase was in effect and to the affected beneficiaries and |
4 | | alternate payees of such persons, but does not apply to any |
5 | | other person, including without limitation a person who |
6 | | continues in service after the expiration date and did not |
7 | | apply and qualify for the affected benefit while the new |
8 | | benefit increase was in effect.
|
9 | | (Source: P.A. 94-4, eff. 6-1-05.) |
10 | | (40 ILCS 5/15-200.1 new) |
11 | | Sec. 15-200.1. Defined contribution plan. |
12 | | (a) By July 1, 2018, the System shall prepare and implement |
13 | | a voluntary defined contribution plan for up to 5% of eligible |
14 | | Tier 1 employees. The System shall determine the 5% cap by the |
15 | | number of Tier 1 employees on the effective date of this |
16 | | Section. The defined contribution plan developed under this |
17 | | Section shall be a plan that aggregates employer and employee |
18 | | contributions in individual participant accounts which, after |
19 | | meeting any other requirements, are used for payouts after |
20 | | retirement in accordance with this Section and any other |
21 | | applicable laws. |
22 | | As used in this Section, "defined benefit plan" means the |
23 | | retirement plan available under this Article to Tier 1 |
24 | | employees who have not made the election authorized under this |
25 | | Section. |
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1 | | (1) Under the defined contribution plan, a
Tier 1 |
2 | | employee of this System could elect to cease accruing |
3 | | benefits in the defined benefit plan under this Article and |
4 | | begin accruing benefits for future service in the defined |
5 | | contribution plan. Service credit under the defined |
6 | | contribution plan may be used for determining retirement |
7 | | eligibility under the defined benefit plan. A Tier 1 |
8 | | employee who elects to cease accruing benefits in his or |
9 | | her defined benefit plan shall be prohibited from |
10 | | purchasing service credit on or after the date of his or |
11 | | her election. A Tier 1 employee making the irrevocable |
12 | | election provided under this Section shall not receive |
13 | | interest accruals to his or her Rule 2 benefit on or after |
14 | | the date of his or her election. |
15 | | (2) Participants in the defined contribution plan
|
16 | | shall pay employee contributions at the same rate as other |
17 | | participants under this Article as determined by the |
18 | | System. |
19 | | (3) State contributions shall be paid into the
accounts |
20 | | of all participants in the defined contribution plan at a |
21 | | uniform rate, expressed as a percentage of earnings and |
22 | | determined for each year. This rate shall be no higher than |
23 | | the employer's normal cost for Tier 1 employees in the |
24 | | defined benefit plan for that year, as determined by the |
25 | | System and expressed as a percentage of earnings, and shall |
26 | | be no lower than 3% of earnings. The State shall adjust |
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1 | | this rate annually. |
2 | | (4) The defined contribution plan shall require 5
years |
3 | | of participation in the defined contribution plan before |
4 | | vesting in State contributions. If the participant fails to |
5 | | vest in them, the State contributions, and the earnings |
6 | | thereon, shall be forfeited. |
7 | | (5) The defined contribution plan may provide for
|
8 | | participants in the plan to be eligible for the defined |
9 | | disability benefits available to other participants under |
10 | | this Article. If it does, the System shall reduce the |
11 | | employee contributions credited to the member's defined |
12 | | contribution plan account by an amount determined by the |
13 | | System to cover the cost of offering such benefits. |
14 | | (6) The defined contribution plan shall provide a
|
15 | | variety of options for investments. These options shall |
16 | | include investments handled by the System as well as |
17 | | private sector investment options. |
18 | | (7) The defined contribution plan shall provide a
|
19 | | variety of options for payouts to retirees and their |
20 | | survivors. |
21 | | (8) To the extent authorized under federal law and
as |
22 | | authorized by the System, the plan shall allow former |
23 | | participants in the plan to transfer or roll over employee |
24 | | and vested State contributions, and the earnings thereon, |
25 | | into other qualified retirement plans. |
26 | | (9) The System shall reduce the employee
contributions |
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1 | | credited to the member's defined contribution plan account |
2 | | by an amount determined by the System to cover the cost of |
3 | | offering these benefits and any applicable administrative |
4 | | fees. |
5 | | (b) Only persons who are Tier 1 employees of the System on |
6 | | the effective date of this Section are eligible to participate |
7 | | in the defined contribution plan. Participation in the defined |
8 | | contribution plan shall be limited to the first 5% of eligible |
9 | | persons who elect to participate. The election to participate |
10 | | in the defined contribution plan is voluntary and irrevocable. |
11 | | (c) An eligible Tier 1 employee may irrevocably elect to |
12 | | participate in the defined contribution plan by filing with the |
13 | | System a written application to participate that is received by |
14 | | the System prior to its determination that 5% of eligible |
15 | | persons have elected to participate in the defined contribution |
16 | | plan. |
17 | | When the System first determines that 5% of eligible |
18 | | persons have elected to participate in the defined contribution |
19 | | plan, the System shall provide notice to previously eligible |
20 | | employees that the plan is no longer available and shall cease |
21 | | accepting applications to participate. |
22 | | (d) The System shall make a good faith effort to contact |
23 | | each Tier 1 employee who is eligible to participate in the |
24 | | defined contribution plan. The System shall mail information |
25 | | describing the option to join the defined contribution plan to |
26 | | each of these employees to his or her last known address on |
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1 | | file with the System. If the employee is not responsive to |
2 | | other means of contact, it is sufficient for the System to |
3 | | publish the details of the option on its website. |
4 | | Upon request for further information describing the |
5 | | option, the System shall provide employees with information |
6 | | from the System before exercising the option to join the plan, |
7 | | including information on the impact to their vested benefits or |
8 | | non-vested service. The individual consultation shall include |
9 | | projections of the member's defined benefits at retirement or |
10 | | earlier termination of service and the value of the member's |
11 | | account at retirement or earlier termination of service. The |
12 | | System shall not provide advice or counseling with respect to |
13 | | whether the employee should exercise the option. The System |
14 | | shall inform Tier 1 employees who are eligible to participate |
15 | | in the defined contribution plan that they may also wish to |
16 | | obtain information and counsel relating to their option from |
17 | | any other available source, including but not limited to labor |
18 | | organizations, private counsel, and 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) If a Tier 1 employee has not made an election under |
11 | | Section 15-134.5 of this Code, then the plan prescribed under |
12 | | this Section shall not apply to that Tier 1 employee and that |
13 | | Tier 1 employee shall remain eligible to make the election |
14 | | prescribed under Section 15-134.5. |
15 | | (i) The intent of this amendatory Act of the 100th General |
16 | | Assembly is to ensure that the State's normal cost of |
17 | | participation in the defined contribution plan is similar, and |
18 | | if possible equal, to the State's normal cost of participation |
19 | | in the defined benefit plan, unless a lower State's normal cost |
20 | | is necessary to ensure cost neutrality. |
21 | | (40 ILCS 5/15-201.1 new) |
22 | | Sec. 15-201.1. Defined contribution plan; termination. If |
23 | | the defined contribution plan is terminated or becomes |
24 | | inoperative pursuant to law, then each participant in the plan |
25 | | shall automatically be deemed to have been a contributing Tier |
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1 | | 1 employee participating in the System's defined benefit plan |
2 | | during the time in which he or she participated in the defined |
3 | | contribution plan, and for that purpose the System shall be |
4 | | entitled to recover the amounts in the participant's defined |
5 | | contribution accounts. |
6 | | (40 ILCS 5/16-107.1 new) |
7 | | Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A |
8 | | teacher under this Article who first became a member or |
9 | | participant before January 1, 2011 under any reciprocal |
10 | | retirement system or pension fund established under this Code |
11 | | other than a retirement system or pension fund established |
12 | | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for |
13 | | the purposes of the election under Section 16-122.9, "Tier 1 |
14 | | employee" does not include a teacher under this Article who |
15 | | would qualify as a Tier 1 employee but who has made an |
16 | | irrevocable election on or before June 1, 2017 to retire from |
17 | | service pursuant to the terms of an employment contract or a |
18 | | collective bargaining agreement in effect on June 1, 2017, |
19 | | excluding any extension, amendment, or renewal of that |
20 | | agreement after that date, and has notified the System of that |
21 | | election.
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22 | | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
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23 | | (Text of Section WITHOUT the changes made by P.A. 98-599, |
24 | | which has been held unconstitutional)
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1 | | Sec. 16-121. Salary. "Salary": The actual compensation |
2 | | received by a teacher during any
school year and recognized by |
3 | | the system in accordance with
rules of the board. For purposes |
4 | | of this Section, "school year" includes
the regular school term |
5 | | plus any additional period for which a teacher is
compensated |
6 | | and such compensation is recognized by the rules of the board.
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7 | | Notwithstanding any other provision of this Section, |
8 | | "salary" does not include any future increase in income that is |
9 | | offered by an employer for service as a Tier 1 employee under |
10 | | this Article pursuant to the condition set forth in subsection |
11 | | (c) of Section 16-122.9 and accepted under that condition by a |
12 | | Tier 1 employee who has made the election under paragraph (2) |
13 | | of subsection (a) of Section 16-122.9. |
14 | | Notwithstanding any other provision of this Section, |
15 | | "salary" does not include any consideration payment made to a |
16 | | Tier 1 employee. |
17 | | (Source: P.A. 84-1028.)
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18 | | (40 ILCS 5/16-121.1 new) |
19 | | Sec. 16-121.1. Future increase in income. "Future increase |
20 | | in income" means an increase to a Tier 1 employee's base pay |
21 | | that is offered by an employer to the Tier 1 employee for |
22 | | service under this Article after June 30, 2018 that qualifies |
23 | | as "salary", as defined in Section 16-121, or would qualify as |
24 | | "salary" but for the fact that it was offered to and accepted |
25 | | by the Tier 1 employee under the condition set forth in |
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1 | | subsection (c) of Section 16-122.9. The term "future increase |
2 | | in income" includes an increase to a Tier 1 employee's base pay |
3 | | that is paid to the Tier 1 employee pursuant to an extension, |
4 | | amendment, or renewal of any such employment contract or |
5 | | collective bargaining agreement after the effective date of |
6 | | this Section. |
7 | | (40 ILCS 5/16-121.2 new) |
8 | | Sec. 16-121.2. Base pay. As used in Section 16-121.1 of |
9 | | this Code, "base pay" means the greater of either (i) the Tier |
10 | | 1 employee's annualized rate of salary as of June 30, 2018, or |
11 | | (ii) the Tier 1 employee's annualized rate of salary |
12 | | immediately preceding the expiration, renewal, or amendment of |
13 | | an employment contract or collective bargaining agreement in |
14 | | effect on the effective date of this Section. For a person |
15 | | returning to active service as a Tier 1 employee after June 30, |
16 | | 2018, however, "base pay" means the employee's annualized rate |
17 | | of salary as of the employee's last date of service prior to |
18 | | July 1, 2018. The System shall calculate the base pay of each |
19 | | Tier 1 employee pursuant to this Section. |
20 | | (40 ILCS 5/16-122.9 new) |
21 | | Sec. 16-122.9. 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 retirement annuity as |
2 | | provided in subsection (a-1) of Section 16-133.1 or |
3 | | subsection (b-1) of Section 16-136.1, whichever is |
4 | | applicable, and to have the amount of the automatic annual |
5 | | increases in his or her retirement annuity and survivor |
6 | | benefit that are otherwise provided for in this Article |
7 | | calculated, instead, as provided in subsection (a-1) of |
8 | | Section 16-133.1 or subsection (b-1) of Section 16-136.1, |
9 | | whichever is applicable; or |
10 | | (2) to not agree to paragraph (1) of this subsection. |
11 | | The election required under this subsection (a) shall be |
12 | | made by each active Tier 1 employee no earlier than January 1, |
13 | | 2018 and no later than March 31, 2018, except that: |
14 | | (i) a person who becomes a Tier 1 employee under this |
15 | | Article on or after February 1, 2018 must make the election |
16 | | under this subsection (a) within 60 days after becoming a |
17 | | Tier 1 employee; and |
18 | | (ii) a person who returns to active service as a Tier 1 |
19 | | employee under this Article on or after February 1, 2018 |
20 | | and has not yet made an election under this Section must |
21 | | make the election under this subsection (a) within 60 days |
22 | | after returning to active service as a Tier 1 employee. |
23 | | If a Tier 1 employee fails for any reason to make a |
24 | | required election under this subsection within the time |
25 | | specified, then the employee shall be deemed to have made the |
26 | | election under paragraph (2) of this subsection. |
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1 | | (a-5) If this Section is enjoined or stayed by an Illinois |
2 | | court or a court of competent jurisdiction pending the entry of |
3 | | a final and unappealable decision, and this Section is |
4 | | determined to be constitutional or otherwise valid by a final |
5 | | unappealable decision of an Illinois court or a court of |
6 | | competent jurisdiction, then the election procedure set forth |
7 | | in subsection (a) of this Section shall commence on the 180th |
8 | | calendar day after the date of the issuance of the final |
9 | | unappealable decision and shall conclude at the end of the |
10 | | 270th calendar day after that date. |
11 | | (a-10) All elections under subsection (a) that are made or |
12 | | deemed to be made before July 1, 2018 shall take effect on July |