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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 changing
5Section 2-108.1 and by adding Sections 1-166 and 2-126.2 as
6follows:
 
7    (40 ILCS 5/1-166 new)
8    Sec. 1-166. Proportional annuity liability.
9    (a) If a participant's final average salary in a
10participating system under the Retirement Systems Reciprocal
11Act, other than the General Assembly Retirement System, is used
12to calculate a proportional retirement annuity for that
13participant under the General Assembly Retirement System, if
14that final average salary is higher than the highest salary for
15annuity purposes of that person under the General Assembly
16Retirement System, and if the participant retires after the
17effective date of this Section with less than 2 years of
18service that has accrued in that participating system since his
19or her last day of active participation in the General Assembly
20Retirement System, then the increased cost of the proportional
21annuity paid by the General Assembly Retirement System that is
22attributable to that higher level of compensation shall be paid
23by the employer of the participant under that other

 

 

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1participating system to the General Assembly Retirement System
2in the form of a lump sum payment determined by the General
3Assembly Retirement System in accordance with its annuity
4tables and other actuarial assumptions.
5    (b) For the purposes of this Section, "final average salary
6in a participating system under the Retirement Systems
7Reciprocal Act, other than the General Assembly Retirement
8System," includes:
9        (1) In Section 1-160 and Articles 16 and 18, "final
10    average salary".
11        (2) In Articles 7 and 15, "final rate of earnings".
12        (3) In Articles 8, 9, 10, 11, and 12, "highest average
13    annual salary for any 4 consecutive years within the last
14    10 years of service immediately preceding the date of
15    withdrawal".
16        (4) In Article 13, "average final salary".
17        (5) In Article 14, "final average compensation".
18        (6) In Article 17, "average salary".
19        (7) In Section 22-207, "wages or salary received by him
20    at the date of retirement or discharge".
21    (c) If an employer fails to pay the amount required under
22this Section to the General Assembly Retirement System for more
23than 90 days after the payment is due, the System, after giving
24notice to the employer, may certify to the State Comptroller
25the amount of the delinquent payment and the Comptroller shall
26deduct the amount so certified or any part thereof from any

 

 

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1payment of State funds to the employer and shall pay the amount
2so deducted to the System. If State funds from which such
3deductions may be made are not available, then the System may
4proceed against the employer to recover the amount of the
5delinquent payment in the appropriate circuit court.
 
6    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
7    Sec. 2-108.1. Highest salary for annuity purposes.
8    (a) "Highest salary for annuity purposes" means whichever
9of the following is applicable to the participant:
10    For a participant who first becomes a participant of this
11System before August 10, 2009 (the effective date of Public Act
1296-207):
13        (1) For a participant who is a member of the General
14    Assembly on his or her last day of service: the highest
15    salary that is prescribed by law, on the participant's last
16    day of service, for a member of the General Assembly who is
17    not an officer; plus, if the participant was elected or
18    appointed to serve as an officer of the General Assembly
19    for 2 or more years and has made contributions as required
20    under subsection (d) of Section 2-126, the highest
21    additional amount of compensation prescribed by law, at the
22    time of the participant's service as an officer, for
23    members of the General Assembly who serve in that office.
24        (2) For a participant who holds one of the State
25    executive offices specified in Section 2-105 on his or her

 

 

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1    last day of service: the highest salary prescribed by law
2    for service in that office on the participant's last day of
3    service.
4        (3) For a participant who is Clerk or Assistant Clerk
5    of the House of Representatives or Secretary or Assistant
6    Secretary of the Senate on his or her last day of service:
7    the salary received for service in that capacity on the
8    last day of service, but not to exceed the highest salary
9    (including additional compensation for service as an
10    officer) that is prescribed by law on the participant's
11    last day of service for the highest paid officer of the
12    General Assembly.
13        (4) For a participant who is a continuing participant
14    under Section 2-117.1 on his or her last day of service:
15    the salary received for service in that capacity on the
16    last day of service, but not to exceed the highest salary
17    (including additional compensation for service as an
18    officer) that is prescribed by law on the participant's
19    last day of service for the highest paid officer of the
20    General Assembly.
21    For a participant who first becomes a participant of this
22System on or after August 10, 2009 (the effective date of
23Public Act 96-207) and before January 1, 2011 (the effective
24date of Public Act 96-889), the average monthly salary obtained
25by dividing the total salary of the participant during the
26period of: (1) the 48 consecutive months of service within the

 

 

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1last 120 months of service in which the total compensation was
2the highest, or (2) the total period of service, if less than
348 months, by the number of months of service in that period.
4    For a participant who first becomes a participant of this
5System on or after January 1, 2011 (the effective date of
6Public Act 96-889), the average monthly salary obtained by
7dividing the total salary of the participant during the 96
8consecutive months of service within the last 120 months of
9service in which the total compensation was the highest by the
10number of months of service in that period; however, beginning
11January 1, 2011, the highest salary for annuity purposes may
12not exceed $106,800, except that that amount shall annually
13thereafter be increased by the lesser of (i) 3% of that amount,
14including all previous adjustments, or (ii) the annual
15unadjusted percentage increase (but not less than zero) in the
16consumer price index-u for the 12 months ending with the
17September preceding each November 1. "Consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the average
20change in prices of goods and services purchased by all urban
21consumers, United States city average, all items, 1982-84 =
22100. The new amount resulting from each annual adjustment shall
23be determined by the Public Pension Division of the Department
24of Insurance and made available to the Board by November 1 of
25each year.
26    (b) The earnings limitations of subsection (a) apply to

 

 

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1earnings under any other participating system under the
2Retirement Systems Reciprocal Act that are considered in
3calculating a proportional annuity under this Article, except
4in the case of a person who first became a member of this
5System before August 22, 1994 and has not, on or after the
6effective date of this amendatory Act of the 97th General
7Assembly, irrevocably elected to have those limitations apply.
8The limitations of subsection (a) shall apply, however, to
9earnings under any other participating system under the
10Retirement Systems Reciprocal Act that are considered in
11calculating the proportional annuity of a person who first
12became a member of this System before August 22, 1994 if, on or
13after the effective date of this amendatory Act of the 97th
14General Assembly, that member irrevocably elects to have those
15limitations apply.
16    (c) In calculating the subsection (a) earnings limitation
17to be applied to earnings under any other participating system
18under the Retirement Systems Reciprocal Act for the purpose of
19calculating a proportional annuity under this Article, the
20participant's last day of service shall be deemed to mean the
21last day of service in any participating system from which the
22person has applied for a proportional annuity under the
23Retirement Systems Reciprocal Act.
24(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
2596-1490, eff. 1-1-11.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.