102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4206

 

Introduced 4/6/2022, by Sen. Scott M. Bennett

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-103.1
40 ILCS 5/15-103.2
40 ILCS 5/15-103.3
40 ILCS 5/15-107  from Ch. 108 1/2, par. 15-107
40 ILCS 5/15-153.3  from Ch. 108 1/2, par. 15-153.3
40 ILCS 5/15-153.4 new
40 ILCS 5/15-198

    Amends the State Universities Article of the Illinois Pension Code. Provides that if a police officer, as the result of sickness, accident, or injury incurred in or resulting from the performance of an act of duty, is found to be physically or mentally disabled for service as a police officer so as to render necessary his or her suspension or retirement from the police service or is found to be unable to perform his or her duties as a police officer by reason of heart disease, stroke, tuberculosis, or any disease of the lungs or respiratory tract, resulting from service as a police officer, then the police officer shall be entitled to a line of duty disability annuity equal to the greater of: (1) 65% of the salary attached to the rank on the police force held by the officer at the date of suspension of duty or retirement; or (2) the retirement annuity that the police officer would be eligible to receive if he or she retired (but not including any automatic annual increase in that retirement annuity). Provides that a police officer shall be considered to be in the performance of an act of duty while on any assignment approved by the police officer's chief, whether the assignment is on or off the employer's property. Provides that if a police officer who receives a line of duty disability annuity under the provisions dies while still disabled, the line of duty disability retirement annuity shall continue to be paid to his or her survivors. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Contains provisions concerning annual increases; verification of disability; and applicability. Makes conforming and other changes.


LRB102 26557 RPS 37237 b

 

 

A BILL FOR

 

SB4206LRB102 26557 RPS 37237 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 15-103.1, 15-103.2, 15-103.3, 15-107,
615-153.3, and 15-198 and by adding Section 15-153.4 as
7follows:
 
8    (40 ILCS 5/15-103.1)
9    Sec. 15-103.1. Traditional Benefit Package. "Traditional
10benefit package": The defined benefit retirement program
11maintained under the System which includes retirement
12annuities payable directly from the System as provided in
13Sections 15-135 through 15-140 (but disregarding Section
1415-136.4), disability retirement annuities payable under
15Section 15-153.2, line of duty disability annuities under
16Section 15-153.4, death benefits payable directly from the
17System as provided in Sections 15-141 through 15-144,
18survivors insurance benefits payable directly from the System
19as provided in Sections 15-145 through 15-149, and
20contribution refunds as provided in Section 15-154. The
21traditional benefit package also includes disability benefits
22as provided in Sections 15-150 through 15-153.3.
23(Source: P.A. 90-766, eff. 8-14-98.)
 

 

 

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1    (40 ILCS 5/15-103.2)
2    Sec. 15-103.2. Portable Benefit Package. "Portable benefit
3package": The defined benefit retirement program maintained
4under the System which includes retirement annuities payable
5directly from the System as provided in Sections 15-135
6through 15-139 (specifically including Section 15-136.4),
7disability retirement annuities payable under Section
815-153.2, line of duty disability annuities under Section
915-153.4, death benefits payable directly from the System as
10provided in Sections 15-141 through 15-144, and contribution
11refunds as provided in Section 15-154. The portable benefit
12package also includes disability benefits as provided in
13Sections 15-150 through 15-153.3. The portable benefit package
14does not include the survivors insurance benefits payable
15directly from the System as provided in Sections 15-145
16through 15-149.
17(Source: P.A. 90-766, eff. 8-14-98.)
 
18    (40 ILCS 5/15-103.3)
19    Sec. 15-103.3. Self-Managed Plan. "Self-managed plan": The
20defined contribution retirement program maintained under the
21System as described in Section 15-158.2. The self-managed plan
22also includes disability benefits as provided in Sections
2315-150 through 15-153.3 (but disregarding disability
24retirement annuities under Section 15-153.2) and line of duty

 

 

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1disability annuities under Section 15-153.4. The self-managed
2plan does not include retirement annuities, death benefits, or
3survivors insurance benefits payable directly from the System
4as provided in Sections 15-135 through 15-149 and Section
515-153.2, or refunds determined under Section 15-154.
6(Source: P.A. 90-766, eff. 8-14-98.)
 
7    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
8    Sec. 15-107. Employee.
9    (a) "Employee" means any member of the educational,
10administrative, secretarial, clerical, mechanical, labor or
11other staff of an employer whose employment is permanent and
12continuous or who is employed in a position in which services
13are expected to be rendered on a continuous basis for at least
144 months or one academic term, whichever is less, who (A)
15receives payment for personal services on a warrant issued
16pursuant to a payroll voucher certified by an employer and
17drawn by the State Comptroller upon the State Treasurer or by
18an employer upon trust, federal or other funds, or (B) is on a
19leave of absence without pay. Employment which is irregular,
20intermittent or temporary shall not be considered continuous
21for purposes of this paragraph.
22    However, a person is not an "employee" if he or she:
23        (1) is a student enrolled in and regularly attending
24    classes in a college or university which is an employer,
25    and is employed on a temporary basis at less than full

 

 

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1    time;
2        (2) is currently receiving a retirement annuity or a
3    disability retirement annuity under Section 15-153.2 from
4    this System;
5        (3) is on a military leave of absence;
6        (4) is eligible to participate in the Federal Civil
7    Service Retirement System and is currently making
8    contributions to that system based upon earnings paid by
9    an employer;
10        (5) is on leave of absence without pay for more than 60
11    days immediately following termination of disability
12    benefits under this Article;
13        (6) is hired after June 30, 1979 as a public service
14    employment program participant under the Federal
15    Comprehensive Employment and Training Act and receives
16    earnings in whole or in part from funds provided under
17    that Act; or
18        (7) is employed on or after July 1, 1991 to perform
19    services that are excluded by subdivision (a)(7)(f) or
20    (a)(19) of Section 210 of the federal Social Security Act
21    from the definition of employment given in that Section
22    (42 U.S.C. 410); or .
23        (8) receives a line of duty disability annuity under
24    Section 15-153.4.
25    (b) Any employer may, by filing a written notice with the
26board, exclude from the definition of "employee" all persons

 

 

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1employed pursuant to a federally funded contract entered into
2after July 1, 1982 with a federal military department in a
3program providing training in military courses to federal
4military personnel on a military site owned by the United
5States Government, if this exclusion is not prohibited by the
6federally funded contract or federal laws or rules governing
7the administration of the contract.
8    (c) Any person appointed by the Governor under the Civil
9Administrative Code of Illinois is an employee, if he or she is
10a participant in this system on the effective date of the
11appointment.
12    (d) A participant on lay-off status under civil service
13rules is considered an employee for not more than 120 days from
14the date of the lay-off.
15    (e) A participant is considered an employee during (1) the
16first 60 days of disability leave, (2) the period, not to
17exceed one year, in which his or her eligibility for
18disability benefits is being considered by the board or
19reviewed by the courts, and (3) the period he or she receives
20disability benefits under the provisions of Section 15-152,
21workers' compensation or occupational disease benefits, or
22disability income under an insurance contract financed wholly
23or partially by the employer.
24    (f) Absences without pay, other than formal leaves of
25absence, of less than 30 calendar days, are not considered as
26an interruption of a person's status as an employee. If such

 

 

SB4206- 6 -LRB102 26557 RPS 37237 b

1absences during any period of 12 months exceed 30 work days,
2the employee status of the person is considered as interrupted
3as of the 31st work day.
4    (g) A staff member whose employment contract requires
5services during an academic term is to be considered an
6employee during the summer and other vacation periods, unless
7he or she declines an employment contract for the succeeding
8academic term or his or her employment status is otherwise
9terminated, and he or she receives no earnings during these
10periods.
11    (h) An individual who was a participating employee
12employed in the fire department of the University of
13Illinois's Champaign-Urbana campus immediately prior to the
14elimination of that fire department and who immediately after
15the elimination of that fire department became employed by the
16fire department of the City of Urbana or the City of Champaign
17shall continue to be considered as an employee for purposes of
18this Article for so long as the individual remains employed as
19a firefighter by the City of Urbana or the City of Champaign.
20The individual shall cease to be considered an employee under
21this subsection (h) upon the first termination of the
22individual's employment as a firefighter by the City of Urbana
23or the City of Champaign.
24    (i) An individual who is employed on a full-time basis as
25an officer or employee of a statewide teacher organization
26that serves System participants or an officer of a national

 

 

SB4206- 7 -LRB102 26557 RPS 37237 b

1teacher organization that serves System participants may
2participate in the System and shall be deemed an employee,
3provided that (1) the individual has previously earned
4creditable service under this Article, (2) the individual
5files with the System an irrevocable election to become a
6participant before January 5, 2012 (the effective date of
7Public Act 97-651), (3) the individual does not receive credit
8for that employment under any other Article of this Code, and
9(4) the individual first became a full-time employee of the
10teacher organization and becomes a participant before January
115, 2012 (the effective date of Public Act 97-651). An employee
12under this subsection (i) is responsible for paying to the
13System both (A) employee contributions based on the actual
14compensation received for service with the teacher
15organization and (B) employer contributions equal to the
16normal costs (as defined in Section 15-155) resulting from
17that service; all or any part of these contributions may be
18paid on the employee's behalf or picked up for tax purposes (if
19authorized under federal law) by the teacher organization.
20    A person who is an employee as defined in this subsection
21(i) may establish service credit for similar employment prior
22to becoming an employee under this subsection by paying to the
23System for that employment the contributions specified in this
24subsection, plus interest at the effective rate from the date
25of service to the date of payment. However, credit shall not be
26granted under this subsection for any such prior employment

 

 

SB4206- 8 -LRB102 26557 RPS 37237 b

1for which the applicant received credit under any other
2provision of this Code, or during which the applicant was on a
3leave of absence under Section 15-113.2.
4    (j) A person employed by the State Board of Higher
5Education in a position with the Illinois Century Network as
6of June 30, 2004 shall be considered to be an employee for so
7long as he or she remains continuously employed after that
8date by the Department of Central Management Services in a
9position with the Illinois Century Network, the Bureau of
10Communication and Computer Services, or, if applicable, any
11successor bureau or the Department of Innovation and
12Technology and meets the requirements of subsection (a).
13    (k) The Board shall promulgate rules with respect to
14determining whether any person is an employee within the
15meaning of this Section. In the case of doubt as to whether any
16person is an employee within the meaning of this Section or any
17rule adopted by the Board, the decision of the Board shall be
18final.
19(Source: P.A. 101-81, eff. 7-12-19; 101-321, eff. 8-9-19.)
 
20    (40 ILCS 5/15-153.3)  (from Ch. 108 1/2, par. 15-153.3)
21    Sec. 15-153.3. Automatic increase in disability benefit.
22Each disability benefit payable under Section 15-150 and
23calculated under Section 15-153 or 15-153.2 and each line of
24duty disability annuity under Section 15-153.4 that has not
25yet received an initial increase under this Section shall be

 

 

SB4206- 9 -LRB102 26557 RPS 37237 b

1increased by 0.25% of the monthly disability benefit
2multiplied by the number of full months that have elapsed
3since the benefit began on January 1, 2002 or the January 1
4next following the granting of the benefit, whichever occurs
5later.
6    On each January 1 following the initial increase under
7this Section, the disability benefit shall be increased by 3%
8of the current amount of the benefit, including prior
9increases under this Article.
10    The changes made to this Section by this amendatory Act of
11the 92nd General Assembly apply without regard to whether the
12benefit recipient was in service on or after the effective
13date of this amendatory Act.
14(Source: P.A. 92-749, eff. 8-2-02.)
 
15    (40 ILCS 5/15-153.4 new)
16    Sec. 15-153.4. Line of duty disability annuity.
17    (a) This Section applies only to police officers, and the
18annuities provided under this Section are in lieu of the
19benefits under Section 15-150, disability retirement
20annuities, and retirement annuities. If a police officer, as
21the result of sickness, accident, or injury incurred in or
22resulting from the performance of an act of duty, is found to
23be physically or mentally disabled for service as a police
24officer so as to render necessary his or her suspension or
25retirement from the police service or is found to be unable to

 

 

SB4206- 10 -LRB102 26557 RPS 37237 b

1perform his or her duties as a police officer by reason of
2heart disease, stroke, tuberculosis, or any disease of the
3lungs or respiratory tract, resulting from service as a police
4officer, then the police officer shall be entitled to a line of
5duty disability annuity under this Section equal to the
6greater of: (1) 65% of the salary attached to the rank on the
7police force held by the officer at the date of suspension of
8duty or retirement; or (2) the retirement annuity that the
9police officer would be eligible to receive if he or she
10retired (but not including any automatic annual increase in
11that retirement annuity). The amount of the benefit shall be
12subject to the reductions specified in Section 15-153.1.
13    Any police officer who suffers a heart attack or stroke as
14a result of the performance and discharge of police duty shall
15be considered to have been injured in the performance of an act
16of duty and shall be eligible for the benefits provided under
17this Section.
18    A police officer shall be considered to be in the
19performance of an act of duty while on any assignment approved
20by the police officer's chief, whether the assignment is on or
21off the employer's property.
22    (b) A line of duty disability annuity shall not be paid
23unless there is filed with the Board certificates of the
24police officer's disability, subscribed and sworn to by the
25police officer if he or she is not under legal disability, or
26by a representative if the police officer is under legal

 

 

SB4206- 11 -LRB102 26557 RPS 37237 b

1disability, and by the police surgeon (if there is one) and 3
2practicing physicians selected by the Board. The Board may
3require other evidence of disability. Medical examination of a
4police officer receiving a line of duty disability annuity
5shall be made at least once each year prior to attainment of
6age 50, as verification of the continuance of disability for
7service as a police officer. No examination shall be required
8after age 50.
9    (c) The System may take appropriate steps to verify the
10applicant's disability and earnings status and, for this
11purpose, may request from the Department of Revenue a
12certified copy of the applicant's Illinois income tax return
13for any year for which an annuity under this Section is payable
14or has been paid.
15    (d) A disabled police officer who (1) is receiving a line
16of duty disability annuity, (2) annually files with the
17System, while the line of duty disability annuity remains
18payable, a written application for the benefits of this
19subsection, including an affidavit stating that the applicant
20has not earned any income from gainful employment during the
21most recently concluded tax year and a copy of his or her most
22recent Illinois income tax return, (3) has service credit
23under this Article for at least 7 years of active duty, and (4)
24has been receiving the annuity under this Section for a period
25that, when added to the officer's total service credit under
26this Article, equals at least 20 years, shall be eligible to

 

 

SB4206- 12 -LRB102 26557 RPS 37237 b

1receive an annual noncompounded increase in his or her annuity
2under this Section, equal to 3% of the original annuity. The
3annual increase shall accrue on each anniversary of the
4initial payment date of the line of duty disability annuity
5under this Section for so long as the annuity remains payable
6to the disabled police officer and the required annual
7application is made, except that the annual increases under
8this Section shall cease if the disabled police officer earns
9income from gainful employment. Within 60 days after accepting
10an initial application under this Section, the System shall
11pay to the disabled police officer, in a lump sum without
12interest, the amounts resulting from the annual increases that
13have accrued retroactively.
14    (e) This Section is not limited to persons in active
15service on or after the effective date of this amendatory Act
16of the 102nd General Assembly, but it applies only to an
17annuity that is payable under this Section to a disabled
18police officer (rather than a survivor). Upon the death of the
19disabled police officer, the line of duty disability annuity
20payable under this Section to his or her survivors shall
21include any annual increases previously received, but no
22additional increases shall accrue under this subsection.
23    (f) If a police officer who receives a line of duty
24disability annuity under this Section dies while still
25disabled, the line of duty disability annuity under this
26Section shall continue to be paid to his or her survivors in

 

 

SB4206- 13 -LRB102 26557 RPS 37237 b

1the sequence provided in Section 15-145 in lieu of the
2survivors insurance benefits provided in Section 15-145,
3unless the survivors insurance benefits are greater.
4    (g) The Board shall adopt rules governing the filing,
5investigation, control, and supervision of line of duty
6disability annuity claims.
 
7    (40 ILCS 5/15-198)
8    Sec. 15-198. Application and expiration of new benefit
9increases.
10    (a) As used in this Section, "new benefit increase" means
11an increase in the amount of any benefit provided under this
12Article, or an expansion of the conditions of eligibility for
13any benefit under this Article, that results from an amendment
14to this Code that takes effect after June 1, 2005 (the
15effective date of Public Act 94-4). "New benefit increase",
16however, does not include any benefit increase resulting from
17the changes made to Article 1 or this Article by Public Act
18100-23, Public Act 100-587, Public Act 100-769, Public Act
19101-10, Public Act 101-610, Public Act 102-16, or this
20amendatory Act of the 102nd General Assembly this amendatory
21Act of the 102nd General Assembly.
22    (b) Notwithstanding any other provision of this Code or
23any subsequent amendment to this Code, every new benefit
24increase is subject to this Section and shall be deemed to be
25granted only in conformance with and contingent upon

 

 

SB4206- 14 -LRB102 26557 RPS 37237 b

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

 

 

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1by law.
2    (e) Except as otherwise provided in the language creating
3the new benefit increase, a new benefit increase that expires
4under this Section continues to apply to persons who applied
5and qualified for the affected benefit while the new benefit
6increase was in effect and to the affected beneficiaries and
7alternate payees of such persons, but does not apply to any
8other person, including, without limitation, a person who
9continues in service after the expiration date and did not
10apply and qualify for the affected benefit while the new
11benefit increase was in effect.
12(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
13101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)