103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3906

 

Introduced 2/17/2023, by Rep. Katie Stuart

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-135  from Ch. 108 1/2, par. 15-135
40 ILCS 5/15-198

    Amends the State Universities Article of the Illinois Pension Code. Provides that a Tier 2 member who has at least 20 years of service in this system as a police officer or firefighter is entitled to a retirement annuity upon written application on or after the attainment of age 55 (instead of age 60) if a specified rule is applicable to the participant. Provides that the changes apply retroactively to January 1, 2011. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase".


LRB103 30724 RPS 57200 b

 

 

A BILL FOR

 

HB3906LRB103 30724 RPS 57200 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 15-135 and 15-198 as follows:
 
6    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
7    Sec. 15-135. Retirement annuities; conditions.
8    (a) This subsection (a) applies only to a Tier 1 member. A
9participant who retires in one of the following specified
10years with the specified amount of service is entitled to a
11retirement annuity at any age under the retirement program
12applicable to the participant:
13        35 years if retirement is in 1997 or before;
14        34 years if retirement is in 1998;
15        33 years if retirement is in 1999;
16        32 years if retirement is in 2000;
17        31 years if retirement is in 2001;
18        30 years if retirement is in 2002 or later.
19    A participant with 8 or more years of service after
20September 1, 1941, is entitled to a retirement annuity on or
21after attainment of age 55.
22    A participant with at least 5 but less than 8 years of
23service after September 1, 1941, is entitled to a retirement

 

 

HB3906- 2 -LRB103 30724 RPS 57200 b

1annuity on or after attainment of age 62.
2    A participant who has at least 25 years of service in this
3system as a police officer or firefighter is entitled to a
4retirement annuity on or after the attainment of age 50, if
5Rule 4 of Section 15-136 is applicable to the participant.
6    (a-5) A Tier 2 member is entitled to a retirement annuity
7upon written application if he or she has attained age 67 and
8has at least 10 years of service credit and is otherwise
9eligible under the requirements of this Article. A Tier 2
10member who has attained age 62 and has at least 10 years of
11service credit and is otherwise eligible under the
12requirements of this Article may elect to receive the lower
13retirement annuity provided in subsection (b-5) of Section
1415-136 of this Article.
15    (a-10) A Tier 2 member who has at least 20 years of service
16in this system as a police officer or firefighter is entitled
17to a retirement annuity upon written application on or after
18the attainment of age 55 60 if Rule 4 of Section 15-136 is
19applicable to the participant. The changes made to this
20subsection by this amendatory Act of the 103rd General
21Assembly this amendatory Act of the 101st General Assembly
22apply retroactively to January 1, 2011.
23    (b) The annuity payment period shall begin on the date
24specified by the participant or the recipient of a disability
25retirement annuity submitting a written application. For a
26participant, the date on which the annuity payment period

 

 

HB3906- 3 -LRB103 30724 RPS 57200 b

1begins shall not be prior to termination of employment or more
2than one year before the application is received by the board;
3however, if the participant is not an employee of an employer
4participating in this System or in a participating system as
5defined in Article 20 of this Code on April 1 of the calendar
6year next following the calendar year in which the participant
7attains the age specified under Section 401(a)(9) of the
8Internal Revenue Code of 1986, as amended, the annuity payment
9period shall begin on that date regardless of whether an
10application has been filed. For a recipient of a disability
11retirement annuity, the date on which the annuity payment
12period begins shall not be prior to the discontinuation of the
13disability retirement annuity under Section 15-153.2.
14    (c) An annuity is not payable if the amount provided under
15Section 15-136 is less than $10 per month.
16(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
 
17    (40 ILCS 5/15-198)
18    Sec. 15-198. Application and expiration of new benefit
19increases.
20    (a) As used in this Section, "new benefit increase" means
21an increase in the amount of any benefit provided under this
22Article, or an expansion of the conditions of eligibility for
23any benefit under this Article, that results from an amendment
24to this Code that takes effect after June 1, 2005 (the
25effective date of Public Act 94-4). "New benefit increase",

 

 

HB3906- 4 -LRB103 30724 RPS 57200 b

1however, does not include any benefit increase resulting from
2the changes made to Article 1 or this Article by Public Act
3100-23, Public Act 100-587, Public Act 100-769, Public Act
4101-10, Public Act 101-610, Public Act 102-16, or this
5amendatory Act of the 103rd General Assembly this amendatory
6Act of the 102nd General Assembly.
7    (b) Notwithstanding any other provision of this Code or
8any subsequent amendment to this Code, every new benefit
9increase is subject to this Section and shall be deemed to be
10granted only in conformance with and contingent upon
11compliance with the provisions of this Section.
12    (c) The Public Act enacting a new benefit increase must
13identify and provide for payment to the System of additional
14funding at least sufficient to fund the resulting annual
15increase in cost to the System as it accrues.
16    Every new benefit increase is contingent upon the General
17Assembly providing the additional funding required under this
18subsection. The Commission on Government Forecasting and
19Accountability shall analyze whether adequate additional
20funding has been provided for the new benefit increase and
21shall report its analysis to the Public Pension Division of
22the Department of Insurance. A new benefit increase created by
23a Public Act that does not include the additional funding
24required under this subsection is null and void. If the Public
25Pension Division determines that the additional funding
26provided for a new benefit increase under this subsection is

 

 

HB3906- 5 -LRB103 30724 RPS 57200 b

1or has become inadequate, it may so certify to the Governor and
2the State Comptroller and, in the absence of corrective action
3by the General Assembly, the new benefit increase shall expire
4at the end of the fiscal year in which the certification is
5made.
6    (d) Every new benefit increase shall expire 5 years after
7its effective date or on such earlier date as may be specified
8in the language enacting the new benefit increase or provided
9under subsection (c). This does not prevent the General
10Assembly from extending or re-creating a new benefit increase
11by law.
12    (e) Except as otherwise provided in the language creating
13the new benefit increase, a new benefit increase that expires
14under this Section continues to apply to persons who applied
15and qualified for the affected benefit while the new benefit
16increase was in effect and to the affected beneficiaries and
17alternate payees of such persons, but does not apply to any
18other person, including, without limitation, a person who
19continues in service after the expiration date and did not
20apply and qualify for the affected benefit while the new
21benefit increase was in effect.
22(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
23101-610, eff. 1-1-20; 102-16, eff. 6-17-21.)