Personnel and Pensions Committee

Filed: 5/12/2009

 

 


 

 


 
09600SB1292ham001 LRB096 08007 AMC 26625 a

1
AMENDMENT TO SENATE BILL 1292

2     AMENDMENT NO. ______. Amend Senate Bill 1292 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Public Labor Relations Act is
5 amended by changing Section 15 as follows:
 
6     (5 ILCS 315/15)  (from Ch. 48, par. 1615)
7     Sec. 15. Act Takes Precedence.
8     (a) In case of any conflict between the provisions of this
9 Act and any other law (other than Section 5 of the State
10 Employees Group Insurance Act of 1971 and other than the
11 changes made to the Illinois Pension Code by this amendatory
12 Act of the 96th General Assembly), executive order or
13 administrative regulation relating to wages, hours and
14 conditions of employment and employment relations, the
15 provisions of this Act or any collective bargaining agreement
16 negotiated thereunder shall prevail and control. Nothing in

 

 

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1 this Act shall be construed to replace or diminish the rights
2 of employees established by Sections 28 and 28a of the
3 Metropolitan Transit Authority Act, Sections 2.15 through 2.19
4 of the Regional Transportation Authority Act. The provisions of
5 this Act are subject to Section 5 of the State Employees Group
6 Insurance Act of 1971. Nothing in this Act shall be construed
7 to replace the necessity of complaints against a sworn peace
8 officer, as defined in Section 2(a) of the Uniform Peace
9 Officer Disciplinary Act, from having a complaint supported by
10 a sworn affidavit.
11     (b) Except as provided in subsection (a) above, any
12 collective bargaining contract between a public employer and a
13 labor organization executed pursuant to this Act shall
14 supersede any contrary statutes, charters, ordinances, rules
15 or regulations relating to wages, hours and conditions of
16 employment and employment relations adopted by the public
17 employer or its agents. Any collective bargaining agreement
18 entered into prior to the effective date of this Act shall
19 remain in full force during its duration.
20     (c) It is the public policy of this State, pursuant to
21 paragraphs (h) and (i) of Section 6 of Article VII of the
22 Illinois Constitution, that the provisions of this Act are the
23 exclusive exercise by the State of powers and functions which
24 might otherwise be exercised by home rule units. Such powers
25 and functions may not be exercised concurrently, either
26 directly or indirectly, by any unit of local government,

 

 

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1 including any home rule unit, except as otherwise authorized by
2 this Act.
3 (Source: P.A. 95-331, eff. 8-21-07.)
 
4     Section 10. The Illinois Pension Code is amended by adding
5 Sections 2-300, 2-305, 2-310, 2-315, 2-320, 2-325, 2-330,
6 2-335, 2-340, 14-300, 14-305, 14-310, 14-315, 14-320, 14-325,
7 14-330, 14-335, 14-340, 15-300, 15-305, 15-310, 15-315,
8 15-320, 15-325, 15-330, 15-335, 15-340, 16-300, 16-305,
9 16-310, 16-315, 16-320, 16-325, 16-330, 16-335, 16-340,
10 18-300, 18-305, 18-310, 18-315, 18-320, 18-325, 18-330,
11 18-335, and 18-340 as follows:
 
12     (40 ILCS 5/2-300 new)
13     Sec. 2-300. Provisions applicable to later entrants.
14     (a) The provisions of this Article following this Section
15 apply only to members who first become members on or after
16 August 1, 2009, who are referred to as "later entrants".
17     (b) Except as provided in subsection (c) of this Section,
18 the Sections of this Article before this Section do not apply
19 to members who first become members on or after August 1, 2009.
20     (c) The following Sections are also applicable to members
21 who first become members on or after August 1, 2009: Sections
22 2-101, 2-102, 2-103, 2-104, 2-105, 2-107, 2-108, 2-109, 2-111,
23 2-112, 2-113, 2-114, 2-116, 2-117, 2-117.1, 2-117.3, and
24 2-121.2 and Sections 2-124 through 2-162.

 

 

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1     (d) To the extent that the Sections enumerated in
2 subsection (c) of this Section conflict with the Sections
3 following this Section, the Sections following this Section
4 shall control.
5     (e) To the extent that the applicable Sections are included
6 under subsection (c) of this Section, later entrants, including
7 survivors, are entitled to disability benefits under this
8 Article.
 
9     (40 ILCS 5/2-305 new)
10     Sec. 2-305. Creditable service for later entrants.
11     (a) Creditable service under this Article is subject to the
12 following conditions:
13         (1) The maximum amount of creditable service a member
14     may establish under this Article is 35 years.
15         (2) A member may only establish creditable service for
16     his or her service as a member under this Article. Except
17     as provided in subsection (b), a member may not establish
18     creditable service for any other service.
19         (3) A member may not convert any unused sick leave or
20     vacation into creditable service under this Article.
21     (b) A member may establish creditable service for up to 2
22 years of military service, as defined in Section 2-109, before
23 becoming a member under this Article by paying to the System
24 (1) employee contributions based upon the member's salary upon
25 becoming a member under this Article, (2) an amount determined

 

 

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1 by the board to be equal to the employer's normal cost of the
2 benefit, and (3) interest on items (1) and (2) at 4% per year
3 from the date of first membership in the System to the date of
4 payment.
 
5     (40 ILCS 5/2-310 new)
6     Sec. 2-310. Retirement annuity; conditions for
7 eligibility; later entrants. A member may claim his or her
8 retirement annuity upon attainment of (1) the full (normal)
9 retirement age as provided in the federal Social Security Act
10 with at least 10 years of service credit or (2) age 62 with at
11 least 35 years of service credit.
12     A member may claim a reduced retirement annuity under
13 subsection (c) of Section 2-315 if he or she is at least 62
14 years of age and has at least 10 years of service.
15     The annuity shall begin with the first full calendar month
16 specified in the member's application therefor, the first day
17 of which shall not be before the date of withdrawal as approved
18 by the board. Regardless of the date of withdrawal, the annuity
19 need not begin within one year of application therefor.
 
20     (40 ILCS 5/2-315 new)
21     Sec. 2-315. Retirement life annuity; amount; later
22 entrants.
23     (a) With respect to late entrants:
24         (1) "Final average salary" means the monthly salary

 

 

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1     obtained by dividing the total salary of a participant
2     during the period of: (A) the 96 consecutive months of
3     service within the last 120 months of service in which the
4     total salary was the highest or (B) the total period of
5     service, if less than 96 months, by the number of months of
6     service in such period; provided that for the purposes of a
7     retirement annuity the average salary for the last 12
8     months of the 96 months shall not exceed the final average
9     salary by more than 25%.
10         In no event shall the monthly salary used to determined
11     final average salary exceed (i) the Social Security Covered
12     Wage Base for the given month of service or (ii) $12,500,
13     whichever is less.
14         The earnings limitations contained in this item (1)
15     apply to earnings under any other participating system
16     under the Retirement Systems Reciprocal Act that are
17     considered in calculating a proportional annuity under
18     this Article, except in the case of a person who first
19     became a member of this System before August 22, 1994.
20         (2) "Salary" means:
21             (A) For members of the General Assembly, the total
22         salary paid to the member by the State for one year of
23         service, including the additional amounts, if any,
24         paid to the member as an officer, committee chair, or
25         minority spokesman pursuant to Section 1 of General
26         Assembly Compensation Act. "Salary" shall not include

 

 

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1         any compensation or allowance for mileage, food, or
2         lodging.
3             (B) For the State executive officers specified in
4         Section 2-105, the total salary paid to the member for
5         one year of service. "Salary" shall not include any
6         compensation or allowance for mileage, food, or
7         lodging.
8         However, in the event that federal law results in any
9     participant receiving imputed income based on the value of
10     group term life insurance provided by the State, such
11     imputed income shall not be included in salary for the
12     purposes of this Article.
13     (b) The retirement life annuity shall be 2% of final
14 average salary for each year of service.
15     (c) For a member retiring after attaining age 62, the
16 retirement life annuity shall be reduced by one-half of 1% for
17 each month that the member's age is under the full (normal)
18 retirement age as provided in the federal Social Security Act.
 
19     (40 ILCS 5/2-320 new)
20     Sec. 2-320. Alternative forms of annuities for later
21 entrants. A participant may choose any of the following types
22 of annuities in lieu of receiving the full annuity provided in
23 Section 2-315:
24         (1) Joint and 50% survivor annuity. Under this form of
25     payment, the participant receives a reduced monthly

 

 

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1     payment for his or her lifetime with a payment equal to 50%
2     of the reduced amount payable to the participant paid to
3     the participant's designated beneficiary for the
4     beneficiary's lifetime if the beneficiary survives the
5     participant.
6         (2) Joint and 75% survivor annuity. Under this form of
7     payment, the participant receives a reduced monthly
8     payment for his or her lifetime with a payment equal to 75%
9     of the reduced amount payable to the participant paid to
10     the participant's designated beneficiary for the
11     beneficiary's lifetime if the beneficiary survives the
12     participant.
13         (3) Joint and 100% survivor annuity. Under this form of
14     payment, the participant receives a reduced monthly
15     payment for his or her lifetime with a payment equal to
16     100% of the reduced amount payable to the participant paid
17     to the participant's designated beneficiary for the
18     beneficiary's lifetime if the beneficiary survives the
19     participant.
20         (4) Single life annuity with 60, 120, or 180 months of
21     guaranteed payments. Under this option, the participant
22     receives a reduced monthly payment for his or her lifetime.
23     If the participant dies before receiving at least the
24     number of guaranteed monthly payments, then the
25     participant's beneficiary or estate receives the remaining
26     guaranteed number of monthly payments.

 

 

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1     The Board must determine the participant's optional form of
2 annuity provided under this Section by taking into account the
3 appropriate actuarial assumptions, including without
4 limitation the participant's and beneficiary's age; applicable
5 mortality tables; and any other factors that the Board
6 determines to be relevant. For this purpose, the participant's
7 joint and survivor annuity should result in no significant
8 increase to the System's unfunded actuarial accrued liability
9 determined as of the most recent actuarial valuation, based on
10 the same assumptions and methods used to develop and report the
11 System's actuarial accrued liability and actuarial value of
12 assets under Statement No. 25 of Governmental Accounting
13 Standards Board or any subsequent applicable Statement.
 
14     (40 ILCS 5/2-325 new)
15     Sec. 2-325. Automatic annual increases for later entrants.
16 Notwithstanding any other provision of this Article, a person
17 receiving a retirement or survivor annuity under Sections 2-315
18 or 2-320 shall, on the first anniversary of retirement, but not
19 before attaining age 67, and annually thereafter, have his or
20 her annuity increased by (1) 3% or (2) one-half of the
21 percentage increase, if any, in the Consumer Price Index for
22 All Urban Consumers measured from the preceding January 1 to
23 the January 1 of the year during which the increase is being
24 granted, whichever is less, of the originally granted annuity.
 

 

 

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1     (40 ILCS 5/2-330 new)
2     Sec. 2-330. Contributions by participants; later entrants.
3     (a) Each participant shall contribute 7% of each payment of
4 salary received by him or her for service as a member toward
5 the cost of his or her retirement annuity. In no event shall
6 contributions be deducted from salary in excess of (1) the
7 Social Security Covered Wage Base for the given calendar year
8 or (2) $150,000, whichever is less.
9     (b) Contributions shall be in the form of a deduction from
10 salary and shall be made notwithstanding that the salary paid
11 in cash to the member shall be reduced thereby below the
12 minimum prescribed by law or regulation. Each member is deemed
13 to consent and agree to the deductions from compensation
14 provided for in this Article and shall receipt in full for
15 salary or compensation.
16     (c) These contributions shall be picked up in the manner
17 provided in Section 2-126.1.
 
18     (40 ILCS 5/2-335 new)
19     Sec. 2-335. Refunds; later entrants. A participant who
20 ceases to be a member, other than an annuitant, shall, upon
21 written request, receive a refund of his or her total
22 contributions, plus interest at (1) 3% or (2) one-half of the
23 percentage increase, if any, in the Consumer Price Index for
24 All Urban Consumers measured from the preceding January 1 to
25 the January 1 of the year during which the interest is being

 

 

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1 credited, whichever is less, per year, not compounded.
2     Upon re-entry into service as a member, a former member may
3 reestablish any creditable service forfeited by acceptance of a
4 refund by paying to the System the full amount refunded, plus
5 interest at the actuarially assumed rate, not compounded, from
6 the date of payment of the refund to the date of repayment.
 
7     (40 ILCS 5/2-340 new)
8     Sec. 2-340. Re-entry after retirement; later entrants.
9     (a) An annuitant who re-enters service as a member shall
10 become a participant on the date of re-entry,less he or she
11 elects not to participate under Section 2-117, and retirement
12 annuity payments shall cease at that time. The participant
13 shall resume contributions to the system on the date of
14 re-entry at the rates then in effect and shall begin to accrue
15 additional service credit.
16     (b) Upon subsequent retirement, the participant shall be
17 entitled to a retirement annuity consisting of: (1) the amount
18 of retirement annuity previously granted and terminated by
19 re-entry into service and (2) the amount of additional
20 retirement annuity earned during the additional service.
21     (c) In computing the retirement annuity under subsection
22 (b) of this Section, the time that the member was on retirement
23 shall not interrupt the continuity of service for the
24 computation of final average compensation and the additional
25 membership service shall be considered, together with service

 

 

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1 rendered before the previous retirement, in establishing final
2 average compensation.
3     (d) A person who re-enters service within 3 years after
4 retiring may qualify to have the retirement annuity computed as
5 though the member had not previously retired by paying to the
6 System, within 5 years after re-entry and prior to subsequent
7 retirement, in a lump-sum or in installment payments, in
8 accordance with rules adopted by the board, an amount equal to
9 all retirement annuity payments received, plus interest at the
10 actuarially assumed rate from the date retirement payments were
11 suspended to the date of repayment.
 
12     (40 ILCS 5/14-300 new)
13     Sec. 14-300. Provisions applicable to later entrants.
14     (a) The provisions of this Article following this Section
15 apply only to employees who first become employees on or after
16 August 1, 2009, who are referred to as "later entrants".
17     (b) Except as provided in subsection (c) of this Section,
18 the Sections of this Article before this Section do not apply
19 to employees who first become employees on or after August 1,
20 2009.
21     (c) The following Sections are also applicable to employees
22 who first become employees on or after August 1, 2009: Sections
23 14-101, 14-102, 14-103.01, 14-103.02, 14-103.03, 14-103.04,
24 14-103.05, 14-103.06, 14-103.07, 14-103.08, 14-103.09,
25 14-103.10, 14-103.11, 14-103.13, 14-103.15, 14-103.16,

 

 

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1 14-103.17, 14-103.18, 14-103.19, 14-103.22, 14-103.24,
2 14-103.25, 14-103.26, 14-103.27, 14-103.28, 14-103.29,
3 14-103.32, 14-103.33, 14-103.34, 14-103.35, 14-103.36,
4 14-103.37, 14-103.38, 14-103.39, 14-104.7, 14-123, 14-123.1,
5 14-124, 14-125, 14-125.1, 14-126, 14-127, 14-131, 14-132.2,
6 14-132.2, and 14-133.1 and Sections 14-134 through 14-152.2.
7     (d) To the extent that the Sections enumerated in
8 subsection (c) of this Section conflict with the Sections
9 following this Section, the Sections following this Section
10 shall control.
11     (e) To the extent that the applicable Sections are included
12 under subsection (c) of this Section, later entrants, including
13 survivors, are entitled to disability benefits under this
14 Article.
 
15     (40 ILCS 5/14-305 new)
16     Sec. 14-305. Creditable service for later entrants.
17     (a) Creditable service under this Article is subject to the
18 following conditions:
19         (1) The maximum amount of creditable service a member
20     may establish under this Article is 35 years.
21         (2) A member may only establish creditable service for
22     his or her membership service, as defined in Section
23     14-103.13. Except as provided in subsection (b), a member
24     may not establish creditable service for any other service.
25         (3) A member may not convert any unused sick leave or

 

 

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1     vacation into creditable service under this Article.
2     (b) A member may establish creditable service for up to 2
3 years of military service, as defined in Section 14-103.16,
4 before becoming a member under this Article by paying to the
5 System (1) employee contributions based upon the member's
6 salary upon becoming a member under this Article, (2) an amount
7 determined by the board to be equal to the employer's normal
8 cost of the benefit, and (3) interest on items (1) and (2) at
9 the actuarially assumed rate from the date of first membership
10 in the System to the date of payment.
 
11     (40 ILCS 5/14-310 new)
12     Sec. 14-310. Retirement annuity; conditions for
13 eligibility; later entrants. A member may claim his or her
14 retirement annuity upon attainment of (1) the full (normal)
15 retirement age as provided in the federal Social Security Act
16 with at least 10 years of service credit or (2) age 62 with at
17 least 35 years of service credit.
18     A member may claim a reduced retirement annuity under
19 subsection (c) of Section 14-315 if he or she is at least 62
20 years of age and has at least 10 years of service.
21     The annuity shall begin with the first full calendar month
22 specified in the member's application therefor, the first day
23 of which shall not be before the date of withdrawal as approved
24 by the board. Regardless of the date of withdrawal, the annuity
25 need not begin within one year of application therefor.
 

 

 

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1     (40 ILCS 5/14-315 new)
2     Sec. 14-315. Retirement life annuity; amount; later
3 entrants.
4     (a) With respect to late entrants:
5         (1) "Final average compensation" means the monthly
6     compensation obtained by dividing the total compensation
7     of an employee during the period of: (A) the 96 consecutive
8     months of service within the last 120 months of service in
9     which the total compensation was the highest or (B) the
10     total period of service, if less than 96 months, by the
11     number of months of service in such period; provided that
12     for the purposes of a retirement annuity the average
13     compensation for the last 12 months of the 96 months shall
14     not exceed the final average compensation by more than 25%.
15         In no event shall the monthly compensation used to
16     determined final average compensation exceed (i) the
17     Social Security Covered Wage Base for the given month of
18     service or (ii) $12,500, whichever is less.
19         (2) "Compensation" means a member's base compensation
20     and does not include any overtime or bonuses.
21     (b) The retirement life annuity shall be (1) 1.5% of final
22 average compensation for each year of service for covered
23 employees or (2) 2% of final average compensation for each year
24 of service for noncovered employees.
25     (c) For a member retiring after attaining age 62, the

 

 

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1 retirement life annuity shall be reduced by one-half of 1% for
2 each month that the member's age is under the full (normal)
3 retirement age as provided in the federal Social Security Act.
 
4     (40 ILCS 5/14-320 new)
5     Sec. 14-320. Alternative forms of annuities for later
6 entrants. A member may choose any of the following types of
7 annuities in lieu of receiving the full annuity provided in
8 Section 14-315:
9         (1) Joint and 50% survivor annuity. Under this form of
10     payment, the member receives a reduced monthly payment for
11     his or her lifetime with a payment equal to 50% of the
12     reduced amount payable to the member paid to the member's
13     designated beneficiary for the beneficiary's lifetime if
14     the beneficiary survives the member.
15         (2) Joint and 75% survivor annuity. Under this form of
16     payment, the member receives a reduced monthly payment for
17     his or her lifetime with a payment equal to 75% of the
18     reduced amount payable to the member paid to the member's
19     designated beneficiary for the beneficiary's lifetime if
20     the beneficiary survives the member.
21         (3) Joint and 100% survivor annuity. Under this form of
22     payment, the member receives a reduced monthly payment for
23     his or her lifetime with a payment equal to 100% of the
24     reduced amount payable to the member paid to the member's
25     designated beneficiary for the beneficiary's lifetime if

 

 

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1     the beneficiary survives the member.
2         (4) Single life annuity with 60, 120, or 180 months of
3     guaranteed payments. Under this option, the member
4     receives a reduced monthly payment for his or her lifetime.
5     If the member dies before receiving at least the number of
6     guaranteed monthly payments, then the member's beneficiary
7     or estate receives the remaining guaranteed number of
8     monthly payments.
9     The Board must determine the participant's optional form of
10 annuity provided under this Section by taking into account the
11 appropriate actuarial assumptions, including without
12 limitation the participant's and beneficiary's age; applicable
13 mortality tables; and any other factors that the Board
14 determines to be relevant. For this purpose, the participant's
15 joint and survivor annuity should result in no significant
16 increase to the System's unfunded actuarial accrued liability
17 determined as of the most recent actuarial valuation, based on
18 the same assumptions and methods used to develop and report the
19 System's actuarial accrued liability and actuarial value of
20 assets under Statement No. 25 of Governmental Accounting
21 Standards Board or any subsequent applicable Statement.
 
22     (40 ILCS 5/14-325 new)
23     Sec. 14-325. Automatic annual increases for later
24 entrants. Notwithstanding any other provision of this Article,
25 a person receiving a retirement or survivor annuity under

 

 

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1 Sections 14-315 or 14-320 shall, on the first anniversary of
2 retirement, but not before attaining age 67, and annually
3 thereafter, have his or her annuity increased by (1) 3% or (2)
4 one-half of the percentage increase, if any, in the Consumer
5 Price Index for All Urban Consumers measured from the preceding
6 January 1 to the January 1 of the year during which the
7 increase is being granted, whichever is less, of the originally
8 granted annuity.
 
9     (40 ILCS 5/14-330 new)
10     Sec. 14-330. Contributions by members; later entrants.
11     (a) Each employee shall contribute the following
12 percentage of each payment of salary received by him or her for
13 service as an employee toward the cost of his or her retirement
14 annuity:
15         (1) Covered employees, 3%.
16         (2) Noncovered employees, 7%.
17     (b) Contributions shall be in the form of a deduction from
18 compensation and shall be made notwithstanding that the
19 compensation paid in cash to the employee shall be reduced
20 thereby below the minimum prescribed by law or regulation. Each
21 member is deemed to consent and agree to the deductions from
22 compensation provided for in this Article and shall receipt in
23 full for salary or compensation.
24     (c) These contributions shall be picked up in the manner
25 provided in Section 14-133.1.

 

 

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1     (d) In no event shall contributions be deducted from salary
2 in excess of (1) the Social Security Covered Wage Base for the
3 given calendar year or (2) $150,000, whichever is less.
 
4     (40 ILCS 5/14-335 new)
5     Sec. 14-335. Refunds; later entrants. An employee who
6 ceases to be a member, other than an annuitant, shall, upon
7 written request, receive a refund of his or her total
8 contributions, plus interest at (1) 3% or (2) one-half of the
9 percentage increase, if any, in the Consumer Price Index for
10 All Urban Consumers measured from the preceding January 1 to
11 the January 1 of the year during which the interest is being
12 credited, whichever is less, per year, not compounded.
13     Upon re-entry into service as a member, a former member may
14 reestablish any creditable service forfeited by acceptance of a
15 refund by paying to the System the full amount refunded, plus
16 interest at actuarially assumed rate, not compounded, from the
17 date of payment of the refund to the date of repayment.
 
18     (40 ILCS 5/14-340 new)
19     Sec. 14-340. Re-entry after retirement; later entrants.
20     (a) An annuitant who re-enters service as a member shall
21 become a member on the date of re-entry and retirement annuity
22 payments shall cease at that time. The employee shall resume
23 contributions to the system on the date of re-entry at the
24 rates then in effect and shall begin to accrue additional

 

 

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1 service credit.
2     (b) Upon subsequent retirement, the employee shall be
3 entitled to a retirement annuity consisting of: (1) the amount
4 of retirement annuity previously granted and terminated by
5 re-entry into service and (2) the amount of additional
6 retirement annuity earned during the additional service.
7     (c) In computing the retirement annuity under subsection
8 (b) of this Section, the time that the member was on retirement
9 shall not interrupt the continuity of service for the
10 computation of final average compensation and the additional
11 membership service shall be considered, together with service
12 rendered before the previous retirement, in establishing final
13 average compensation.
14     (d) A person who re-enters service within 3 years after
15 retiring may qualify to have the retirement annuity computed as
16 though the member had not previously retired by paying to the
17 System, within 5 years after re-entry and prior to subsequent
18 retirement, in a lump-sum or in installment payments, in
19 accordance with rules adopted by the board, an amount equal to
20 all retirement annuity payments received, plus interest at the
21 actuarially assumed rate from the date retirement payments were
22 suspended to the date of repayment.
 
23     (40 ILCS 5/15-300 new)
24     Sec. 15-300. Provisions applicable to later entrants.
25     (a) The provisions of this Article following this Section

 

 

09600SB1292ham001 - 21 - LRB096 08007 AMC 26625 a

1 apply only to employees who first become employees on or after
2 August 1, 2009, who are referred to as "later entrants".
3     (b) Except as provided in subsection (c) of this Section,
4 the Sections of this Article before this Section do not apply
5 to employees who first become employees on or after August 1,
6 2009.
7     (c) The following Sections are also applicable to employees
8 who first become employees on or after August 1, 2009: Sections
9 15-101, 15-102, 15-103.2, 15-103.3, 15-104, 15-105, 15-106,
10 15-107, 15-108, 15-109, 15-110, 15-111, 15-113, 15-113.1,
11 15-118, 15-119, 15-124, 15-126, 15-126.1, 15-134, 15-136.4,
12 15-150, 15-151, 15-152, 15-153, 15-153.1, 15-153.2, 15-153.3,
13 15-155, 15-156, 15-157.1, and 15-158.2 and Sections 15-159
14 through 15-198.
15     (d) To the extent that the Sections enumerated in
16 subsection (c) of this Section conflict with the Sections
17 following this Section, the Sections following this Section
18 shall control.
19     (e) To the extent that the applicable Sections are included
20 under subsection (c) of this Section, later entrants, including
21 survivors, are entitled to disability benefits under this
22 Article.
 
23     (40 ILCS 5/15-305 new)
24     Sec. 15-305. Creditable service for later entrants.
25     (a) Creditable service under this Article is subject to the

 

 

09600SB1292ham001 - 22 - LRB096 08007 AMC 26625 a

1 following conditions:
2         (1) The maximum amount of creditable service a
3     participant may establish under this Article is 35 years.
4         (2) A participant may only establish creditable
5     service for his or her service for employment with an
6     employer, as defined in Section 15-106. Except as provided
7     in subsection (b), a participant may not establish
8     creditable service for any other service.
9         (3) A participant may not convert any unused sick leave
10     or vacation into creditable service under this Article.
11     (b) A participant may establish creditable service for up
12 to 2 years of military service before becoming a participant
13 under this Article by paying to the System (1) employee
14 contributions based upon the participant's salary upon
15 becoming a participant under this Article, (2) an amount
16 determined by the board to be equal to the employer's normal
17 cost of the benefit, and (3) interest on items (1) and (2) at
18 the actuarially assumed rate from the date of first employment
19 in the System to the date of payment.
20     For the purposes of this subsection (b), "military service"
21 means periods during which a person served in the armed forces
22 of the United States for which the person received a discharge
23 other than dishonorable.
 
24     (40 ILCS 5/15-310 new)
25     Sec. 15-310. Retirement annuity; conditions for

 

 

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1 eligibility; later entrants. A participant may claim his or her
2 retirement annuity upon attainment of (1) the full (normal)
3 retirement age as provided in the federal Social Security Act
4 with at least 10 years of service credit or (2) age 62 with at
5 least 35 years of service credit.
6     A participant may claim a reduced retirement annuity under
7 subsection (c) of Section 15-315 if he or she is at least 62
8 years of age and has at least 10 years of service.
9     The annuity shall begin with the first full calendar month
10 specified in the participant's application therefor, the first
11 day of which shall not be before the date of withdrawal as
12 approved by the board. Regardless of the date of withdrawal,
13 the annuity need not begin within one year of application
14 therefor.
 
15     (40 ILCS 5/15-315 new)
16     Sec. 15-315. Retirement life annuity; amount; employer
17 contribution; later entrants.
18     (a) With respect to late entrants:
19         (1) "Final average rate of earnings" means the monthly
20     rate of earnings obtained by dividing the total rate of
21     earnings of an employee during the period of: (A) the 96
22     consecutive months of service within the last 120 months of
23     service in which the total rate of earnings was the highest
24     or (B) the total period of service, if less than 96 months,
25     by the number of months of service in such period; provided

 

 

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1     that for the purposes of a retirement annuity the average
2     rate of earnings for the last 12 months of the 96 months
3     shall not exceed the final average rate of earnings by more
4     than 25%.
5         In no event shall the monthly rate of earnings used to
6     determined final average rate of earnings exceed (i) the
7     Social Security Covered Wage Base for the given month of
8     service or (ii) $12,500, whichever is less.
9         (2) "Earnings" means a participant's base earnings and
10     does not include any overtime or bonuses.
11     (b) The retirement life annuity shall be 2% of final
12 average rate of earnings for each year of service.
13     (c) For a participant retiring after attaining age 62, the
14 retirement life annuity shall be reduced by one-half of 1% for
15 each month that the participant's age is under the full
16 (normal) retirement age as provided in the federal Social
17 Security Act.
 
18     (40 ILCS 5/15-320 new)
19     Sec. 15-320. Alternative forms of annuities for later
20 entrants.
21     (a) A participant may choose any of the following types of
22 annuities in lieu of receiving the full annuity provided in
23 Section 15-315:
24         (1) Joint and 50% survivor annuity. Under this form of
25     payment, the participant receives a reduced monthly

 

 

09600SB1292ham001 - 25 - LRB096 08007 AMC 26625 a

1     payment for his or her lifetime with a payment equal to 50%
2     of the reduced amount payable to the participant paid to
3     the participant's designated beneficiary for the
4     beneficiary's lifetime if the beneficiary survives the
5     participant.
6         (2) Joint and 75% survivor annuity. Under this form of
7     payment, the participant receives a reduced monthly
8     payment for his or her lifetime with a payment equal to 75%
9     of the reduced amount payable to the participant paid to
10     the participant's designated beneficiary for the
11     beneficiary's lifetime if the beneficiary survives the
12     participant.
13         (3) Joint and 100% survivor annuity. Under this form of
14     payment, the participant receives a reduced monthly
15     payment for his or her lifetime with a payment equal to
16     100% of the reduced amount payable to the participant paid
17     to the participant's designated beneficiary for the
18     beneficiary's lifetime if the beneficiary survives the
19     participant.
20         (4) Single life annuity with 60, 120, or 180 months of
21     guaranteed payments. Under this option, the participant
22     receives a reduced monthly payment for his or her lifetime.
23     If the participant dies before receiving at least the
24     number of guaranteed monthly payments, then the
25     participant's beneficiary or estate receives the remaining
26     guaranteed number of monthly payments.

 

 

09600SB1292ham001 - 26 - LRB096 08007 AMC 26625 a

1     (b) In lieu of the annuities under Section 15-315 and
2 subsection (a) of this Section, a participant may choose the
3 portable benefit package under Section 15-136.4 or the
4 self-managed plan under Section 15-158.2.
5     (c) The Board must determine the participant's optional
6 form of annuity provided under this Section by taking into
7 account the appropriate actuarial assumptions, including
8 without limitation the participant's and beneficiary's age;
9 applicable mortality tables; and any other factors that the
10 Board determines to be relevant. For this purpose, the
11 participant's joint and survivor annuity should result in no
12 significant increase to the System's unfunded actuarial
13 accrued liability determined as of the most recent actuarial
14 valuation, based on the same assumptions and methods used to
15 develop and report the System's actuarial accrued liability and
16 actuarial value of assets under Statement No. 25 of
17 Governmental Accounting Standards Board or any subsequent
18 applicable Statement.
 
19     (40 ILCS 5/15-325 new)
20     Sec. 15-325. Automatic annual increases for later
21 entrants. Notwithstanding any other provision of this Article,
22 a person receiving a retirement or survivor annuity under
23 Sections 15-315 or 15-320 shall, on the first anniversary of
24 retirement, but not before attaining age 67, and annually
25 thereafter, have his or her annuity increased by (1) 3% or (2)

 

 

09600SB1292ham001 - 27 - LRB096 08007 AMC 26625 a

1 one-half of the percentage increase, if any, in the Consumer
2 Price Index for All Urban Consumers measured from the preceding
3 January 1 to the January 1 of the year during which the
4 increase is being granted, whichever is less, of the originally
5 granted annuity.
 
6     (40 ILCS 5/15-330 new)
7     Sec. 15-330. Contributions by participants; later
8 entrants.
9     (a) Each employee shall contribute 7% of each payment of
10 salary received by him or her for service as an employee toward
11 the cost of his or her retirement annuity.
12     (b) Contributions shall be in the form of a deduction from
13 earnings and shall be made notwithstanding that the earnings
14 paid in cash to the employee shall be reduced thereby below the
15 minimum prescribed by law or regulation. Each participant is
16 deemed to consent and agree to the deductions from earnings
17 provided for in this Article and shall receipt in full for
18 salary or compensation.
19     (c) These contributions shall be picked up in the manner
20 provided in Section 15-157.1.
21     (d) In no event shall contributions be deducted from salary
22 in excess of (1) the Social Security Covered Wage Base for the
23 given calendar year or (2) $150,000, whichever is less.
 
24     (40 ILCS 5/15-335 new)

 

 

09600SB1292ham001 - 28 - LRB096 08007 AMC 26625 a

1     Sec. 15-335. Refunds; later entrants. An employee who
2 ceases to be a participant, other than an annuitant, shall,
3 upon written request, receive a refund of his or her total
4 contributions, plus interest at (1) 3% or (2) one-half of the
5 percentage increase, if any, in the Consumer Price Index for
6 All Urban Consumers measured from the preceding January 1 to
7 the January 1 of the year during which the interest is being
8 credited, whichever is less, per year, not compounded.
9     Upon re-entry into service as an employee, a former
10 participant may reestablish any creditable service forfeited
11 by acceptance of a refund by paying to the System the full
12 amount refunded, plus interest at the actuarially assumed rate,
13 not compounded, from the date of payment of the refund to the
14 date of repayment.
 
15     (40 ILCS 5/15-340 new)
16     Sec. 15-340. Re-entry after retirement; later entrants.
17     (a) An annuitant who re-enters service as an employee shall
18 become a participant on the date of re-entry and retirement
19 annuity payments shall cease at that time. The employee shall
20 resume contributions to the system on the date of re-entry at
21 the rates then in effect and shall begin to accrue additional
22 service credit.
23     (b) Upon subsequent retirement, the employee shall be
24 entitled to a retirement annuity consisting of: (1) the amount
25 of retirement annuity previously granted and terminated by

 

 

09600SB1292ham001 - 29 - LRB096 08007 AMC 26625 a

1 re-entry into service and (2) the amount of additional
2 retirement annuity earned during the additional service.
3     (c) In computing the retirement annuity under subsection
4 (b) of this Section, the time that the employee was on
5 retirement shall not interrupt the continuity of service for
6 the computation of final average rate of earnings and the
7 additional service shall be considered, together with service
8 rendered before the previous retirement, in establishing final
9 average rate of earnings.
10     (d) A person who re-enters service within 3 years after
11 retiring may qualify to have the retirement annuity computed as
12 though the participant had not previously retired by paying to
13 the System, within 5 years after re-entry and prior to
14 subsequent retirement, in a lump-sum or in installment
15 payments, in accordance with rules adopted by the board, an
16 amount equal to all retirement annuity payments received, plus
17 interest at the actuarially assumed rate from the date
18 retirement payments were suspended to the date of repayment.
 
19     (40 ILCS 5/16-300 new)
20     Sec. 16-300. Provisions applicable to later entrants.
21     (a) The provisions of this Article following this Section
22 apply only to teachers who first become teachers on or after
23 August 1, 2009, who are referred to as "later entrants".
24     (b) Except as provided in subsection (c) of this Section,
25 the Sections of this Article before this Section do not apply

 

 

09600SB1292ham001 - 30 - LRB096 08007 AMC 26625 a

1 to teachers who first become teachers on or after August 1,
2 2009.
3     (c) The following Sections are also applicable to teachers
4 who first become teachers on or after August 1, 2009: Sections
5 16-101, 16-102, 16-103, 16-104, 16-105, 16-106, 16-106.1,
6 16-106.2, 16-106.3, 16-107, 16-109, 16-110, 16-111.1, 16-113,
7 16-114, 16-118, 16-121, 16-123, 16-149, 16-149.1, 16-149.2,
8 16-149.3, 16-149.4, 16-149.5, 16-149.6, and 16-152.1 and
9 Sections 16-155 through 16-203.
10     (d) To the extent that the Sections enumerated in
11 subsection (c) of this Section conflict with the Sections
12 following this Section, the Sections following this Section
13 shall control.
14     (e) To the extent that the applicable Sections are included
15 under subsection (c) of this Section, later entrants, including
16 survivors, are entitled to disability benefits under this
17 Article.
 
18     (40 ILCS 5/16-305 new)
19     Sec. 16-305. Creditable service for later entrants.
20     (a) Creditable service under this Article is subject to the
21 following conditions:
22         (1) The maximum amount of creditable service a member
23     may establish under this Article is 35 years.
24         (2) A member may only establish creditable service for
25     his or her service for employment as a teacher, as defined

 

 

09600SB1292ham001 - 31 - LRB096 08007 AMC 26625 a

1     in Section 16-106. Except as provided in subsection (b), a
2     member may not establish creditable service for any other
3     service.
4         (3) A member may not convert any unused sick leave or
5     vacation into creditable service under this Article.
6     (b) A member may establish creditable service for up to 2
7 years of military service before becoming a member under this
8 Article by paying to the System (1) employee contributions
9 based upon the member's salary upon becoming a member under
10 this Article, (2) an amount determined by the board to be equal
11 to the employer's normal cost of the benefit, and (3) interest
12 on items (1) and (2) at the actuarially assumed rate from the
13 date of first employment in the System to the date of payment.
14     For the purposes of this subsection (b), "military service"
15 means periods a person spent in active service with the
16 military forces of the United States for which the person
17 received a discharge other than dishonorable.
 
18     (40 ILCS 5/16-310 new)
19     Sec. 16-310. Retirement annuity; conditions for
20 eligibility; later entrants. A member may claim his or her
21 retirement annuity upon attainment of (1) the full (normal)
22 retirement age as provided in the federal Social Security Act
23 with at least 10 years of service credit or (2) age 62 with at
24 least 35 years of service credit.
25     A member may claim a reduced retirement annuity under

 

 

09600SB1292ham001 - 32 - LRB096 08007 AMC 26625 a

1 subsection (c) of Section 16-315 if he or she is at least 62
2 years of age and has at least 10 years of service.
3     The annuity shall begin with the first full calendar month
4 specified in the member's application therefor, the first day
5 of which shall not be before the date of withdrawal as approved
6 by the board. Regardless of the date of withdrawal, the annuity
7 need not begin within one year of application therefor.
 
8     (40 ILCS 5/16-315 new)
9     Sec. 16-315. Retirement life annuity; amount; employer
10 contribution; later entrants.
11     (a) With respect to late entrants:
12         (1) "Final average salary" means the monthly salary
13     obtained by dividing the total salary of a member during
14     the period of: (A) the 96 consecutive months of service
15     within the last 120 months of service in which the total
16     salary was the highest or (B) the total period of service,
17     if less than 96 months, by the number of months of service
18     in such period; provided that for the purposes of a
19     retirement annuity the average salary for the last 12
20     months of the 96 months shall not exceed the final average
21     salary by more than 25%.
22         In no event shall the monthly salary used to determined
23     final average salary exceed (i) the Social Security Covered
24     Wage Base for the given month of service or (ii) $12,500,
25     whichever is less.

 

 

09600SB1292ham001 - 33 - LRB096 08007 AMC 26625 a

1         (2) "Salary" means a member's base salary and does not
2     include any overtime or bonuses.
3     (b) The retirement life annuity shall be 2% of final
4 average salary for each year of service.
5     (c) For a member retiring after attaining age 62, the
6 retirement life annuity shall be reduced by one-half of 1% for
7 each month that the member's age is under the full (normal)
8 retirement age as provided in the federal Social Security Act.
 
9     (40 ILCS 5/16-320 new)
10     Sec. 16-320. Alternative forms of annuities for later
11 entrants. A member may choose any of the following types of
12 annuities in lieu of receiving the full annuity provided in
13 Section 14-315:
14         (1) Joint and 50% survivor annuity. Under this form of
15     payment, the member receives a reduced monthly payment for
16     his or her lifetime with a payment equal to 50% of the
17     reduced amount payable to the member paid to the member's
18     designated beneficiary for the beneficiary's lifetime if
19     the beneficiary survives the member.
20         (2) Joint and 75% survivor annuity. Under this form of
21     payment, the member receives a reduced monthly payment for
22     his or her lifetime with a payment equal to 75% of the
23     reduced amount payable to the member paid to the member's
24     designated beneficiary for the beneficiary's lifetime if
25     the beneficiary survives the member.

 

 

09600SB1292ham001 - 34 - LRB096 08007 AMC 26625 a

1         (3) Joint and 100% survivor annuity. Under this form of
2     payment, the member receives a reduced monthly payment for
3     his or her lifetime with a payment equal to 100% of the
4     reduced amount payable to the member paid to the member's
5     designated beneficiary for the beneficiary's lifetime if
6     the beneficiary survives the member.
7         (4) Single life annuity with 60, 120, or 180 months of
8     guaranteed payments. Under this option, the member
9     receives a reduced monthly payment for his or her lifetime.
10     If the member dies before receiving at least the number of
11     guaranteed monthly payments, then the member's beneficiary
12     or estate receives the remaining guaranteed number of
13     monthly payments.
14     The Board must determine the participant's optional form of
15 annuity provided under this Section by taking into account the
16 appropriate actuarial assumptions, including without
17 limitation the participant's and beneficiary's age; applicable
18 mortality tables; and any other factors that the Board
19 determines to be relevant. For this purpose, the participant's
20 joint and survivor annuity should result in no significant
21 increase to the System's unfunded actuarial accrued liability
22 determined as of the most recent actuarial valuation, based on
23 the same assumptions and methods used to develop and report the
24 System's actuarial accrued liability and actuarial value of
25 assets under Statement No. 25 of Governmental Accounting
26 Standards Board or any subsequent applicable Statement.
 

 

 

09600SB1292ham001 - 35 - LRB096 08007 AMC 26625 a

1     (40 ILCS 5/16-325 new)
2     Sec. 16-325. Automatic annual increases for later
3 entrants. Notwithstanding any other provision of this Article,
4 a person receiving a retirement or survivor annuity under
5 Sections 16-315 or 16-320 shall, on the first anniversary of
6 retirement, but not before attaining age 67, and annually
7 thereafter, have his or her annuity increased by (1) 3% or (2)
8 one-half of the percentage increase, if any, in the Consumer
9 Price Index for All Urban Consumers measured from the preceding
10 January 1 to the January 1 of the year during which the
11 increase is being granted, whichever is less, of the originally
12 granted annuity.
 
13     (40 ILCS 5/16-330 new)
14     Sec. 16-330. Contributions by teachers; later entrants.
15     (a) Each teacher shall contribute 8% of each payment of
16 salary received by him or her for service as a teacher toward
17 the cost of his or her retirement annuity.
18     (b) Contributions shall be in the form of a deduction from
19 salary and shall be made notwithstanding that the salary paid
20 in cash to the teacher shall be reduced thereby below the
21 minimum prescribed by law or regulation. Each member is deemed
22 to consent and agree to the deductions from salary provided for
23 in this Article and shall receipt in full for salary or
24 compensation.

 

 

09600SB1292ham001 - 36 - LRB096 08007 AMC 26625 a

1     (c) These contributions shall be picked up in the manner
2 provided in Section 16-152.1.
3     (d) In no event shall contributions be deducted from salary
4 in excess of (1) the Social Security Covered Wage Base for the
5 given calendar year or (2) $150,000, whichever is less.
 
6     (40 ILCS 5/16-335 new)
7     Sec. 16-335. Refunds; later entrants. A teacher who ceases
8 to be a member, other than an annuitant, shall, upon written
9 request, receive a refund of his or her total contributions,
10 plus interest at (1) 3% or (2) one-half of the percentage
11 increase, if any, in the Consumer Price Index for All Urban
12 Consumers measured from the preceding January 1 to the January
13 1 of the year during which the interest is being credited,
14 whichever is less, per year, not compounded.
15     Upon re-entry into service as a teacher, a former member
16 may reestablish any creditable service forfeited by acceptance
17 of a refund by paying to the System the full amount refunded,
18 plus interest at the actuarially assumed rate, not compounded,
19 from the date of payment of the refund to the date of
20 repayment.
 
21     (40 ILCS 5/16-340 new)
22     Sec. 16-340. Re-entry after retirement; later entrants.
23     (a) An annuitant who re-enters service as a teacher shall
24 become a member on the date of re-entry and retirement annuity

 

 

09600SB1292ham001 - 37 - LRB096 08007 AMC 26625 a

1 payments shall cease at that time. The teacher shall resume
2 contributions to the system on the date of re-entry at the
3 rates then in effect and shall begin to accrue additional
4 service credit.
5     (b) Upon subsequent retirement, the teacher shall be
6 entitled to a retirement annuity consisting of: (1) the amount
7 of retirement annuity previously granted and terminated by
8 re-entry into service and (2) the amount of additional
9 retirement annuity earned during the additional service.
10     (c) In computing the retirement annuity under subsection
11 (b) of this Section, the time that the teacher was on
12 retirement shall not interrupt the continuity of service for
13 the computation of final average salary and the additional
14 service shall be considered, together with service rendered
15 before the previous retirement, in establishing final average
16 salary.
17     (d) A person who re-enters service within 3 years after
18 retiring may qualify to have the retirement annuity computed as
19 though the member had not previously retired by paying to the
20 System, within 5 years after re-entry and prior to subsequent
21 retirement, in a lump-sum or in installment payments, in
22 accordance with rules adopted by the board, an amount equal to
23 all retirement annuity payments received, plus interest at the
24 actuarially assumed rate from the date retirement payments were
25 suspended to the date of repayment.
 

 

 

09600SB1292ham001 - 38 - LRB096 08007 AMC 26625 a

1     (40 ILCS 5/18-300 new)
2     Sec. 18-300. Provisions applicable to later entrants.
3     (a) The provisions of this Article following this Section
4 apply only to judges who first become judges on or after August
5 1, 2009, who are referred to as "later entrants".
6     (b) Except as provided in subsection (c) of this Section,
7 the Sections of this Article before this Section do not apply
8 to judges who first become judges on or after August 1, 2009.
9     (c) The following Sections are also applicable to judges
10 who first become judges on or after August 1, 2009: Sections
11 18-101, 18-102, 18-103, 18-104, 18-105, 18-106, 18-107,
12 18-108, 18-109, 18-110, 18-111, 18-112.5, 18-113, 18-114,
13 18-116, 18-118, 18-119, 18-120, 18-120.1, 18-121, 18-126,
14 18-126.1, 18-128.2, 18-131, and 18-132 and Sections 18-133.1
15 through 18-169.
16     (d) To the extent that the Sections enumerated in
17 subsection (c) of this Section conflict with the Sections
18 following this Section, the Sections following this Section
19 shall control.
20     (e) To the extent that the applicable Sections are included
21 under subsection (c) of this Section, later entrants, including
22 survivors, are entitled to disability benefits under this
23 Article.
 
24     (40 ILCS 5/18-305 new)
25     Sec. 18-305. Creditable service for later entrants.

 

 

09600SB1292ham001 - 39 - LRB096 08007 AMC 26625 a

1     (a) Creditable service under this Article is subject to the
2 following conditions:
3         (1) The maximum amount of creditable service a
4     participant may establish under this Article is 35 years.
5         (2) A participant may only establish creditable
6     service for his or her service for employment as a judge,
7     as defined in Section 16-106. Except as provided in
8     subsection (b), a participant may not establish creditable
9     service for any other service.
10         (3) A participant may not convert any unused sick leave
11     or vacation into creditable service under this Article.
12     (b) A participant may establish creditable service for up
13 to 2 years of military service before becoming a participant
14 under this Article by paying to the System (1) employee
15 contributions based upon the participant's salary upon
16 becoming a participant under this Article, (2) an amount
17 determined by the board to be equal to the employer's normal
18 cost of the benefit, and (3) interest on items (1) and (2) at
19 the actuarially assumed rate from the date of first employment
20 in the System to the date of payment.
21     For the purposes of this subsection (b), "military service"
22 means periods a person spent in active service with the
23 military forces of the United States for which the person
24 received a discharge other than dishonorable.
 
25     (40 ILCS 5/18-310 new)

 

 

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1     Sec. 18-310. Retirement annuity; conditions for
2 eligibility; later entrants. A participant may claim his or her
3 retirement annuity upon attainment of (1) the full (normal)
4 retirement age as provided in the federal Social Security Act
5 with at least 10 years of service credit or (2) age 62 with at
6 least 35 years of service credit.
7     A participant may claim a reduced retirement annuity under
8 subsection (c) of Section 16-315 if he or she is at least 62
9 years of age and has at least 10 years of service.
10     The annuity shall begin with the first full calendar month
11 specified in the participant's application therefor, the first
12 day of which shall not be before the date of withdrawal as
13 approved by the board. Regardless of the date of withdrawal,
14 the annuity need not begin within one year of application
15 therefor.
 
16     (40 ILCS 5/18-315 new)
17     Sec. 18-315. Retirement life annuity; amount; employer
18 contribution; later entrants.
19     (a) With respect to late entrants:
20         (1) "Final average salary" means the monthly salary
21     obtained by dividing the total salary of a participant
22     during the period of: (A) the 96 consecutive months of
23     service within the last 120 months of service in which the
24     total salary was the highest or (B) the total period of
25     service, if less than 96 months, by the number of months of

 

 

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1     service in such period; provided that for the purposes of a
2     retirement annuity the average salary for the last 12
3     months of the 96 months shall not exceed the final average
4     salary by more than 25%.
5         In no event shall the monthly salary used to determined
6     final average salary exceed (i) the Social Security Covered
7     Wage Base for the given month of service or (ii) $12,500,
8     whichever is less.
9         (2) "Salary" means a participant's base salary and does
10     not include any overtime or bonuses.
11     (b) The retirement life annuity shall be 2% of final
12 average salary for each year of service.
13     (c) For a participant retiring after attaining age 62, the
14 retirement life annuity shall be reduced by one-half of 1% for
15 each month that the participant's age is under the full
16 (normal) retirement age as provided in the federal Social
17 Security Act.
 
18     (40 ILCS 5/18-320 new)
19     Sec. 18-320. Alternative forms of annuities for later
20 entrants. A participant may choose any of the following types
21 of annuities in lieu of receiving the full annuity provided in
22 Section 14-315:
23         (1) Joint and 50% survivor annuity. Under this form of
24     payment, the participant receives a reduced monthly
25     payment for his or her lifetime with a payment equal to 50%

 

 

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1     of the reduced amount payable to the participant paid to
2     the participant's designated beneficiary for the
3     beneficiary's lifetime if the beneficiary survives the
4     participant.
5         (2) Joint and 75% survivor annuity. Under this form of
6     payment, the participant receives a reduced monthly
7     payment for his or her lifetime with a payment equal to 75%
8     of the reduced amount payable to the participant paid to
9     the participant's designated beneficiary for the
10     beneficiary's lifetime if the beneficiary survives the
11     participant.
12         (3) Joint and 100% survivor annuity. Under this form of
13     payment, the participant receives a reduced monthly
14     payment for his or her lifetime with a payment equal to
15     100% of the reduced amount payable to the participant paid
16     to the participant's designated beneficiary for the
17     beneficiary's lifetime if the beneficiary survives the
18     participant.
19         (4) Single life annuity with 60, 120, or 180 months of
20     guaranteed payments. Under this option, the participant
21     receives a reduced monthly payment for his or her lifetime.
22     If the participant dies before receiving at least the
23     number of guaranteed monthly payments, then the
24     participant's beneficiary or estate receives the remaining
25     guaranteed number of monthly payments.
26     The Board must determine the participant's optional form of

 

 

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1 annuity provided under this Section by taking into account the
2 appropriate actuarial assumptions, including without
3 limitation the participant's and beneficiary's age; applicable
4 mortality tables; and any other factors that the Board
5 determines to be relevant. For this purpose, the participant's
6 joint and survivor annuity should result in no significant
7 increase to the System's unfunded actuarial accrued liability
8 determined as of the most recent actuarial valuation, based on
9 the same assumptions and methods used to develop and report the
10 System's actuarial accrued liability and actuarial value of
11 assets under Statement No. 25 of Governmental Accounting
12 Standards Board or any subsequent applicable Statement.
 
13     (40 ILCS 5/18-325 new)
14     Sec. 18-325. Automatic annual increases for later
15 entrants. Notwithstanding any other provision of this Article,
16 a person receiving a retirement or survivor annuity under
17 Sections 16-315 or 16-320 shall, on the first anniversary of
18 retirement, but not before attaining age 67, and annually
19 thereafter, have his or her annuity increased by (1) 3% or (2)
20 one-half of the percentage increase, if any, in the Consumer
21 Price Index for All Urban Consumers measured from the preceding
22 January 1 to the January 1 of the year during which the
23 interest is being credited, whichever is less, of the
24 originally granted annuity.
 

 

 

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1     (40 ILCS 5/18-330 new)
2     Sec. 18-330. Contributions by judges; later entrants.
3     (a) Each judge shall contribute 7% of each payment of
4 salary received by him or her for service as a judge toward the
5 cost of his or her retirement annuity.
6     (b) Contributions shall be in the form of a deduction from
7 salary and shall be made notwithstanding that the salary paid
8 in cash to the judge shall be reduced thereby below the minimum
9 prescribed by law or regulation. Each participant is deemed to
10 consent and agree to the deductions from salary provided for in
11 this Article and shall receipt in full for salary or
12 compensation.
13     (c) These contributions shall be picked up in the manner
14 provided in Section 18-133.1.
15     (d) In no event shall contributions be deducted from salary
16 in excess of (1) the Social Security Covered Wage Base for the
17 given calendar year or (2) $150,000, whichever is less.
 
18     (40 ILCS 5/18-335 new)
19     Sec. 18-335. Refunds; later entrants. A judge who ceases to
20 be a participant, other than an annuitant, shall, upon written
21 request, receive a refund of his or her total contributions,
22 plus interest at (1) 3% or (2) one-half of the percentage
23 increase, if any, in the Consumer Price Index for All Urban
24 Consumers measured from the preceding January 1 to the January
25 1 of the year during which the interest is being credited,

 

 

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1 whichever is less, per year, not compounded.
2     Upon re-entry into service as a judge, a former participant
3 may reestablish any creditable service forfeited by acceptance
4 of a refund by paying to the System the full amount refunded,
5 plus interest at the actuarially assumed rate, not compounded,
6 from the date of payment of the refund to the date of
7 repayment.
 
8     (40 ILCS 5/18-340 new)
9     Sec. 18-340. Re-entry after retirement; later entrants.
10     (a) An annuitant who re-enters service as a judge shall
11 become a participant on the date of re-entry and retirement
12 annuity payments shall cease at that time. The judge shall
13 resume contributions to the system on the date of re-entry at
14 the rates then in effect and shall begin to accrue additional
15 service credit.
16     (b) Upon subsequent retirement, the judge shall be entitled
17 to a retirement annuity consisting of: (1) the amount of
18 retirement annuity previously granted and terminated by
19 re-entry into service and (2) the amount of additional
20 retirement annuity earned during the additional service.
21     (c) In computing the retirement annuity under subsection
22 (b) of this Section, the time that the judge was on retirement
23 shall not interrupt the continuity of service for the
24 computation of final average salary and the additional service
25 shall be considered, together with service rendered before the

 

 

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1 previous retirement, in establishing final average salary.
2     (d) A person who re-enters service within 3 years after
3 retiring may qualify to have the retirement annuity computed as
4 though the participant had not previously retired by paying to
5 the System, within 5 years after re-entry and prior to
6 subsequent retirement, in a lump-sum or in installment
7 payments, in accordance with rules adopted by the board, an
8 amount equal to all retirement annuity payments received, plus
9 interest at the actuarially assumed rate from the date
10 retirement payments were suspended to the date of repayment.
 
11     Section 99. Effective date. This Act takes effect upon
12 becoming law.".