Rep. Daniel Biss

Filed: 2/29/2012

 

 


 

 


 
09700HB4996ham001LRB097 14805 EFG 66871 a

1
AMENDMENT TO HOUSE BILL 4996

2    AMENDMENT NO. ______. Amend House Bill 4996 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 15-113, 15-135, 15-136, 15-136.4, 15-139,
615-153.2, and 15-186 and by adding Sections 15-139.5 and
715-168.2 as follows:
 
8    (40 ILCS 5/15-113)  (from Ch. 108 1/2, par. 15-113)
9    Sec. 15-113. Service. "Service": The periods defined in
10Sections 15-113.1 through 15-113.9 and Section 15-113.11.
11(Source: P.A. 84-1472.)
 
12    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
13    Sec. 15-135. Retirement annuities - Conditions.
14    (a) A participant who retires in one of the following
15specified years with the specified amount of service is

 

 

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1entitled to a retirement annuity at any age under the
2retirement program applicable to the participant:
3        35 years if retirement is in 1997 or before;
4        34 years if retirement is in 1998;
5        33 years if retirement is in 1999;
6        32 years if retirement is in 2000;
7        31 years if retirement is in 2001;
8        30 years if retirement is in 2002 or later.
9    A participant with 8 or more years of service after
10September 1, 1941, is entitled to a retirement annuity on or
11after attainment of age 55.
12    A participant with at least 5 but less than 8 years of
13service after September 1, 1941, is entitled to a retirement
14annuity on or after attainment of age 62.
15    A participant who has at least 25 years of service in this
16system as a police officer or firefighter is entitled to a
17retirement annuity on or after the attainment of age 50, if
18Rule 4 of Section 15-136 is applicable to the participant.
19    (b) The annuity payment period shall begin on the date
20specified by the participant or the recipient of a disability
21retirement annuity submitting a written application, which
22date shall not be prior to termination of employment or more
23than one year before the application is received by the board;
24however, if the participant is not an employee of an employer
25participating in this System or in a participating system as
26defined in Article 20 of this Code on April 1 of the calendar

 

 

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1year next following the calendar year in which the participant
2attains age 70 1/2, the annuity payment period shall begin on
3that date regardless of whether an application has been filed.
4    (c) An annuity is not payable if the amount provided under
5Section 15-136 is less than $10 per month.
6(Source: P.A. 92-749, eff. 8-2-02.)
 
7    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
8    Sec. 15-136. Retirement annuities - Amount. The provisions
9of this Section 15-136 apply only to those participants who are
10participating in the traditional benefit package or the
11portable benefit package and do not apply to participants who
12are participating in the self-managed plan.
13    (a) The amount of a participant's retirement annuity,
14expressed in the form of a single-life annuity, shall be
15determined by whichever of the following rules is applicable
16and provides the largest annuity:
17    Rule 1: The retirement annuity shall be 1.67% of final rate
18of earnings for each of the first 10 years of service, 1.90%
19for each of the next 10 years of service, 2.10% for each year
20of service in excess of 20 but not exceeding 30, and 2.30% for
21each year in excess of 30; or for persons who retire on or
22after January 1, 1998, 2.2% of the final rate of earnings for
23each year of service.
24    Rule 2: The retirement annuity shall be the sum of the
25following, determined from amounts credited to the participant

 

 

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1in accordance with the actuarial tables and the effective
2prescribed rate of interest in effect at the time the
3retirement annuity begins:
4        (i) the normal annuity which can be provided on an
5    actuarially equivalent basis, by the accumulated normal
6    contributions as of the date the annuity begins;
7        (ii) an annuity from employer contributions of an
8    amount equal to that which can be provided on an
9    actuarially equivalent basis from the accumulated normal
10    contributions made by the participant under Section
11    15-113.6 and Section 15-113.7 plus 1.4 times all other
12    accumulated normal contributions made by the participant;
13    and
14        (iii) the annuity that can be provided on an
15    actuarially equivalent basis from the entire contribution
16    made by the participant under Section 15-113.3.
17    With respect to a police officer or firefighter who retires
18on or after August 14, 1998, the accumulated normal
19contributions taken into account under clauses (i) and (ii) of
20this Rule 2 shall include the additional normal contributions
21made by the police officer or firefighter under Section
2215-157(a).
23    The amount of a retirement annuity calculated under this
24Rule 2 shall be computed solely on the basis of the
25participant's accumulated normal contributions, as specified
26in this Rule and defined in Section 15-116. Neither an employee

 

 

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1or employer contribution for early retirement under Section
215-136.2 nor any other employer contribution shall be used in
3the calculation of the amount of a retirement annuity under
4this Rule 2.
5    This amendatory Act of the 91st General Assembly is a
6clarification of existing law and applies to every participant
7and annuitant without regard to whether status as an employee
8terminates before the effective date of this amendatory Act.
9    This Rule 2 does not apply to a person who first becomes an
10employee under this Article on or after July 1, 2005.
11    Rule 3: The retirement annuity of a participant who is
12employed at least one-half time during the period on which his
13or her final rate of earnings is based, shall be equal to the
14participant's years of service not to exceed 30, multiplied by
15(1) $96 if the participant's final rate of earnings is less
16than $3,500, (2) $108 if the final rate of earnings is at least
17$3,500 but less than $4,500, (3) $120 if the final rate of
18earnings is at least $4,500 but less than $5,500, (4) $132 if
19the final rate of earnings is at least $5,500 but less than
20$6,500, (5) $144 if the final rate of earnings is at least
21$6,500 but less than $7,500, (6) $156 if the final rate of
22earnings is at least $7,500 but less than $8,500, (7) $168 if
23the final rate of earnings is at least $8,500 but less than
24$9,500, and (8) $180 if the final rate of earnings is $9,500 or
25more, except that the annuity for those persons having made an
26election under Section 15-154(a-1) shall be calculated and

 

 

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1payable under the portable retirement benefit program pursuant
2to the provisions of Section 15-136.4.
3    Rule 4: A participant who is at least age 50 and has 25 or
4more years of service as a police officer or firefighter, and a
5participant who is age 55 or over and has at least 20 but less
6than 25 years of service as a police officer or firefighter,
7shall be entitled to a retirement annuity of 2 1/4% of the
8final rate of earnings for each of the first 10 years of
9service as a police officer or firefighter, 2 1/2% for each of
10the next 10 years of service as a police officer or
11firefighter, and 2 3/4% for each year of service as a police
12officer or firefighter in excess of 20. The retirement annuity
13for all other service shall be computed under Rule 1.
14    For purposes of this Rule 4, a participant's service as a
15firefighter shall also include the following:
16        (i) service that is performed while the person is an
17    employee under subsection (h) of Section 15-107; and
18        (ii) in the case of an individual who was a
19    participating employee employed in the fire department of
20    the University of Illinois's Champaign-Urbana campus
21    immediately prior to the elimination of that fire
22    department and who immediately after the elimination of
23    that fire department transferred to another job with the
24    University of Illinois, service performed as an employee of
25    the University of Illinois in a position other than police
26    officer or firefighter, from the date of that transfer

 

 

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1    until the employee's next termination of service with the
2    University of Illinois.
3    Rule 5: The retirement annuity of a participant who elected
4early retirement under the provisions of Section 15-136.2 and
5who, on or before February 16, 1995, brought administrative
6proceedings pursuant to the administrative rules adopted by the
7System to challenge the calculation of his or her retirement
8annuity shall be the sum of the following, determined from
9amounts credited to the participant in accordance with the
10actuarial tables and the prescribed rate of interest in effect
11at the time the retirement annuity begins:
12        (i) the normal annuity which can be provided on an
13    actuarially equivalent basis, by the accumulated normal
14    contributions as of the date the annuity begins; and
15        (ii) an annuity from employer contributions of an
16    amount equal to that which can be provided on an
17    actuarially equivalent basis from the accumulated normal
18    contributions made by the participant under Section
19    15-113.6 and Section 15-113.7 plus 1.4 times all other
20    accumulated normal contributions made by the participant;
21    and
22        (iii) an annuity which can be provided on an
23    actuarially equivalent basis from the employee
24    contribution for early retirement under Section 15-136.2,
25    and an annuity from employer contributions of an amount
26    equal to that which can be provided on an actuarially

 

 

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1    equivalent basis from the employee contribution for early
2    retirement under Section 15-136.2.
3    In no event shall a retirement annuity under this Rule 5 be
4lower than the amount obtained by adding (1) the monthly amount
5obtained by dividing the combined employee and employer
6contributions made under Section 15-136.2 by the System's
7annuity factor for the age of the participant at the beginning
8of the annuity payment period and (2) the amount equal to the
9participant's annuity if calculated under Rule 1, reduced under
10Section 15-136(b) as if no contributions had been made under
11Section 15-136.2.
12    With respect to a participant who is qualified for a
13retirement annuity under this Rule 5 whose retirement annuity
14began before the effective date of this amendatory Act of the
1591st General Assembly, and for whom an employee contribution
16was made under Section 15-136.2, the System shall recalculate
17the retirement annuity under this Rule 5 and shall pay any
18additional amounts due in the manner provided in Section
1915-186.1 for benefits mistakenly set too low.
20    The amount of a retirement annuity calculated under this
21Rule 5 shall be computed solely on the basis of those
22contributions specifically set forth in this Rule 5. Except as
23provided in clause (iii) of this Rule 5, neither an employee
24nor employer contribution for early retirement under Section
2515-136.2, nor any other employer contribution, shall be used in
26the calculation of the amount of a retirement annuity under

 

 

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1this Rule 5.
2    The General Assembly has adopted the changes set forth in
3Section 25 of this amendatory Act of the 91st General Assembly
4in recognition that the decision of the Appellate Court for the
5Fourth District in Mattis v. State Universities Retirement
6System et al. might be deemed to give some right to the
7plaintiff in that case. The changes made by Section 25 of this
8amendatory Act of the 91st General Assembly are a legislative
9implementation of the decision of the Appellate Court for the
10Fourth District in Mattis v. State Universities Retirement
11System et al. with respect to that plaintiff.
12    The changes made by Section 25 of this amendatory Act of
13the 91st General Assembly apply without regard to whether the
14person is in service as an employee on or after its effective
15date.
16    (b) The retirement annuity provided under Rules 1 and 3
17above shall be reduced by 1/2 of 1% for each month the
18participant is under age 60 at the time of retirement. However,
19this reduction shall not apply in the following cases:
20        (1) For a disabled participant whose disability
21    benefits have been discontinued because he or she has
22    exhausted eligibility for disability benefits under clause
23    (6) of Section 15-152;
24        (2) For a participant who has at least the number of
25    years of service required to retire at any age under
26    subsection (a) of Section 15-135; or

 

 

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1        (3) For that portion of a retirement annuity which has
2    been provided on account of service of the participant
3    during periods when he or she performed the duties of a
4    police officer or firefighter, if these duties were
5    performed for at least 5 years immediately preceding the
6    date the retirement annuity is to begin.
7    (c) The maximum retirement annuity provided under Rules 1,
82, 4, and 5 shall be the lesser of (1) the annual limit of
9benefits as specified in Section 415 of the Internal Revenue
10Code of 1986, as such Section may be amended from time to time
11and as such benefit limits shall be adjusted by the
12Commissioner of Internal Revenue, and (2) 80% of final rate of
13earnings.
14    (d) An annuitant whose status as an employee terminates
15after August 14, 1969 shall receive automatic increases in his
16or her retirement annuity as follows:
17    Effective January 1 immediately following the date the
18retirement annuity begins, the annuitant shall receive an
19increase in his or her monthly retirement annuity of 0.125% of
20the monthly retirement annuity provided under Rule 1, Rule 2,
21Rule 3, Rule 4, or Rule 5, contained in this Section,
22multiplied by the number of full months which elapsed from the
23date the retirement annuity payments began to January 1, 1972,
24plus 0.1667% of such annuity, multiplied by the number of full
25months which elapsed from January 1, 1972, or the date the
26retirement annuity payments began, whichever is later, to

 

 

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1January 1, 1978, plus 0.25% of such annuity multiplied by the
2number of full months which elapsed from January 1, 1978, or
3the date the retirement annuity payments began, whichever is
4later, to the effective date of the increase.
5    The annuitant shall receive an increase in his or her
6monthly retirement annuity on each January 1 thereafter during
7the annuitant's life of 3% of the monthly annuity provided
8under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
9this Section. The change made under this subsection by P.A.
1081-970 is effective January 1, 1980 and applies to each
11annuitant whose status as an employee terminates before or
12after that date.
13    Beginning January 1, 1990, all automatic annual increases
14payable under this Section shall be calculated as a percentage
15of the total annuity payable at the time of the increase,
16including all increases previously granted under this Article.
17    The change made in this subsection by P.A. 85-1008 is
18effective January 26, 1988, and is applicable without regard to
19whether status as an employee terminated before that date.
20    (e) If, on January 1, 1987, or the date the retirement
21annuity payment period begins, whichever is later, the sum of
22the retirement annuity provided under Rule 1 or Rule 2 of this
23Section and the automatic annual increases provided under the
24preceding subsection or Section 15-136.1, amounts to less than
25the retirement annuity which would be provided by Rule 3, the
26retirement annuity shall be increased as of January 1, 1987, or

 

 

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1the date the retirement annuity payment period begins,
2whichever is later, to the amount which would be provided by
3Rule 3 of this Section. Such increased amount shall be
4considered as the retirement annuity in determining benefits
5provided under other Sections of this Article. This paragraph
6applies without regard to whether status as an employee
7terminated before the effective date of this amendatory Act of
81987, provided that the annuitant was employed at least
9one-half time during the period on which the final rate of
10earnings was based.
11    (f) A participant is entitled to such additional annuity as
12may be provided on an actuarially equivalent basis, by any
13accumulated additional contributions to his or her credit.
14However, the additional contributions made by the participant
15toward the automatic increases in annuity provided under this
16Section shall not be taken into account in determining the
17amount of such additional annuity.
18    (g) If, (1) by law, a function of a governmental unit, as
19defined by Section 20-107 of this Code, is transferred in whole
20or in part to an employer, and (2) a participant transfers
21employment from such governmental unit to such employer within
226 months after the transfer of the function, and (3) the sum of
23(A) the annuity payable to the participant under Rule 1, 2, or
243 of this Section (B) all proportional annuities payable to the
25participant by all other retirement systems covered by Article
2620, and (C) the initial primary insurance amount to which the

 

 

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1participant is entitled under the Social Security Act, is less
2than the retirement annuity which would have been payable if
3all of the participant's pension credits validated under
4Section 20-109 had been validated under this system, a
5supplemental annuity equal to the difference in such amounts
6shall be payable to the participant.
7    (h) On January 1, 1981, an annuitant who was receiving a
8retirement annuity on or before January 1, 1971 shall have his
9or her retirement annuity then being paid increased $1 per
10month for each year of creditable service. On January 1, 1982,
11an annuitant whose retirement annuity began on or before
12January 1, 1977, shall have his or her retirement annuity then
13being paid increased $1 per month for each year of creditable
14service.
15    (i) On January 1, 1987, any annuitant whose retirement
16annuity began on or before January 1, 1977, shall have the
17monthly retirement annuity increased by an amount equal to 8
18per year of creditable service times the number of years that
19have elapsed since the annuity began.
20(Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
 
21    (40 ILCS 5/15-136.4)
22    Sec. 15-136.4. Retirement and Survivor Benefits Under
23Portable Benefit Package.
24    (a) This Section 15-136.4 describes the form of annuity and
25survivor benefits available to a participant who has elected

 

 

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1the portable benefit package and has completed the one-year
2waiting period required under subsection (e) of Section
315-134.5. For purposes of this Section, the term "eligible
4spouse" means the husband or wife of a participant to whom the
5participant is married on the date the participant's annuity
6payment period begins, provided however, that if the
7participant should die prior to the commencement of retirement
8annuity benefits, then "eligible spouse" means the husband or
9wife, if any, to whom the participant was married throughout
10the one-year period preceding the date of his or her death.
11    (b) This subsection (b) describes the normal form of
12annuity payable to a participant subject to this Section
1315-136.4. If the participant is unmarried on the date his or
14her annuity payment period begins, then the annuity payments
15shall be made in the form of a single-life annuity as described
16in Section 15-118. If the participant is married on the date
17his or her annuity payments commence, then the annuity payments
18shall be paid in the form of a qualified joint and survivor
19annuity that is the actuarial equivalent of the single-life
20annuity. Under the "qualified joint and survivor annuity", a
21reduced amount shall be paid to the participant for his or her
22lifetime and his or her eligible spouse, if surviving at the
23participant's death, shall be entitled to receive thereafter a
24lifetime survivorship annuity in a monthly amount equal to 50%
25of the reduced monthly amount that was payable to the
26participant. The last payment of a qualified joint and survivor

 

 

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1annuity shall be made as of the first day of the month in which
2the death of the survivor occurs.
3    (c) Instead of the normal form of annuity that would be
4paid under subsection (b), a participant may elect in writing
5within the 180-day 90-day period prior to the date his or her
6annuity payments commence to waive the normal form of annuity
7payment and receive an optional form of payment as described in
8subsection (h). If the participant is married and elects an
9optional form of payment under subsection (h) other than a
10joint and survivor annuity with the eligible spouse designated
11as the contingent annuitant, then such election shall require
12the consent of his or her eligible spouse in the manner
13described in subsection (d). At any time during the 180-day
1490-day period preceding the date the participant's payment
15period begins, the participant may revoke the optional form of
16payment elected under this subsection (c) and reinstate
17coverage under the qualified joint and survivor annuity without
18the spouse's consent, but an election to revoke the optional
19form elected and elect a new optional form of payment or
20designate a different contingent annuitant shall not be
21effective without the eligible spouse's consent.
22    (d) The eligible spouse's consent to any election made
23pursuant to this Section that requires the eligible spouse's
24consent shall be in writing and shall acknowledge the effect of
25the consent. In addition, the eligible spouse's signature on
26the written consent must be witnessed by a notary public. The

 

 

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1eligible spouse's consent need not be obtained if the system is
2satisfied that there is no eligible spouse, that the eligible
3spouse cannot be located, or because of any other relevant
4circumstances. An eligible spouse's consent under this Section
5is valid only with respect to the specified optional form of
6payment and, if applicable, contingent annuitant designated by
7the participant. If the optional form of payment or the
8contingent annuitant is subsequently changed (other than by a
9revocation of the optional form of payment and reinstatement of
10the qualified joint and survivor annuity), a new consent by the
11eligible spouse is required. The eligible spouse's consent to
12an election made by a participant pursuant to this Section,
13once made, may not be revoked by the eligible spouse.
14    (e) Within a reasonable period of time preceding the date a
15participant's annuity commences, a participant shall be
16supplied with a written explanation of (1) the terms and
17conditions of the normal form single-life annuity and qualified
18joint and survivor annuity, (2) the participant's right to
19elect a single-life annuity or an optional form of payment
20under subsection (h) subject to his or her eligible spouse's
21consent, if applicable, and (3) the participant's right to
22reinstate coverage under the qualified joint and survivor
23annuity prior to his or her annuity commencement date by
24revoking an election of an optional form of payment under
25subsection (h).
26    (f) If a married participant with at least 1.5 years of

 

 

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1service dies prior to commencing retirement annuity payments
2and prior to taking a refund under Section 15-154, his or her
3eligible spouse is entitled to receive a pre-retirement
4survivor annuity, if there is not then in effect a waiver of
5the pre-retirement survivor annuity. The pre-retirement
6survivor annuity payable under this subsection shall be a
7monthly annuity payable for the eligible spouse's life,
8commencing as of the beginning of the month next following the
9later of the date of the participant's death or the date the
10participant would have first met the eligibility requirements
11for retirement, and continuing through the beginning of the
12month in which the death of the eligible spouse occurs. The
13monthly amount payable to the spouse under the pre-retirement
14survivor annuity shall be equal to the monthly amount that
15would be payable as a survivor annuity under the qualified
16joint and survivor annuity described in subsection (b) if: (1)
17in the case of a participant who dies on or after the date on
18which the participant has met the eligibility requirements for
19retirement, the participant had retired with an immediate
20qualified joint and survivor annuity on the day before the
21participant's date of death; or (2) in the case of a
22participant who dies before the earliest date on which the
23participant would have met the eligibility requirements for
24retirement age, the participant had separated from service on
25the date of death, survived to the earliest retirement age
26based on service prior to his or her death, retired with an

 

 

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1immediate qualified joint and survivor annuity at the earliest
2retirement age, and died on the day after the day on which the
3participant would have attained the earliest retirement age.
4    (g) A married participant who has not retired may elect at
5any time to waive the pre-retirement survivor annuity described
6in subsection (f). Any such election shall require the consent
7of the participant's eligible spouse in the manner described in
8subsection (d). A waiver of the pre-retirement survivor annuity
9shall increase the lump sum death benefit payable under
10subsection (b) of Section 15-141. Prior to electing any waiver
11of the pre-retirement survivor annuity, the participant shall
12be provided with a written explanation of (1) the terms and
13conditions of the pre-retirement survivor annuity and the death
14benefits payable from the system both with and without the
15pre-retirement survivor annuity, (2) the participant's right
16to elect a waiver of the pre-retirement survivor annuity
17coverage subject to his or her spouse's consent, and (3) the
18participant's right to reinstate pre-retirement survivor
19annuity coverage at any time by revoking a prior waiver of such
20coverage.
21    (h) By filing a timely election with the system, a
22participant who will be eligible to receive a retirement
23annuity under this Section may waive the normal form of annuity
24payment described in subsection (b), subject to obtaining the
25consent of his or her eligible spouse, if applicable, and elect
26to receive any one of the following optional forms of payment:

 

 

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1        (1) Joint and Survivor Annuity Options: The
2    participant may elect to receive a reduced annuity payable
3    for his or her life and to have a lifetime survivorship
4    annuity in a monthly amount equal to 50%, 75%, or 100% (as
5    elected by the participant) of that reduced monthly amount,
6    to be paid after the participant's death to his or her
7    contingent annuitant, if the contingent annuitant is alive
8    at the time of the participant's death.
9        (2) Single-Life Annuity Option (optional for married
10    participants). The participant may elect to receive a
11    single-life annuity payable for his or her life only.
12        (3) Lump sum retirement benefit. The participant may
13    elect to receive a lump sum retirement benefit that is
14    equal to the amount of a refund payable under Section
15    15-154(a-2).
16All joint and survivor annuity forms shall be in an amount that
17is the actuarial equivalent of the single-life annuity.
18    For the purposes of this Section, the term "contingent
19annuitant" means the beneficiary who is designated by a
20participant at the time the participant elects a joint and
21survivor annuity to receive the lifetime survivorship annuity
22in the event the beneficiary survives the participant at the
23participant's death.
24    (i) Under no circumstances may an option be elected,
25changed, or revoked after the date the participant's retirement
26annuity commences.

 

 

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1    (j) An election made pursuant to subsection (h) shall
2become inoperative if the participant or the contingent
3annuitant dies before the date the participant's annuity
4payments commence, or if the eligible spouse's consent is
5required and not given.
6    (k) (Blank).
7    (l) The automatic annual increases described in subsection
8(d) of Section 15-136 shall apply to retirement benefits under
9the portable benefit package and the automatic annual increases
10described in subsection (j) of Section 15-145 shall apply to
11survivor benefits under the portable benefit package.
12(Source: P.A. 96-586, eff. 8-18-09.)
 
13    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
14    Sec. 15-139. Retirement annuities; cancellation; suspended
15during employment.
16    (a) If an annuitant returns to employment for an employer
17within 60 days after the beginning of the retirement annuity
18payment period, the retirement annuity shall be cancelled, and
19the annuitant shall refund to the System the total amount of
20the retirement annuity payments which he or she received. If
21the retirement annuity is cancelled, the participant shall
22continue to participate in the System.
23    (b) If an annuitant retires prior to age 60 and receives or
24becomes entitled to receive during any month compensation in
25excess of the monthly retirement annuity (including any

 

 

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1automatic annual increases) for services performed after the
2date of retirement for any employer under this System, that
3portion of the monthly retirement annuity provided by employer
4contributions shall not be payable.
5    If an annuitant retires at age 60 or over and receives or
6becomes entitled to receive during any academic year
7compensation in excess of the difference between his or her
8highest annual earnings prior to retirement and his or her
9annual retirement annuity computed under Rule 1, Rule 2, Rule
103, Rule 4, or Rule 5 of Section 15-136, or under Section
1115-136.4, for services performed after the date of retirement
12for any employer under this System, that portion of the monthly
13retirement annuity provided by employer contributions shall be
14reduced by an amount equal to the compensation that exceeds
15such difference.
16    However, any remuneration received for serving as a member
17of the Illinois Educational Labor Relations Board shall be
18excluded from "compensation" for the purposes of this
19subsection (b), and serving as a member of the Illinois
20Educational Labor Relations Board shall not be deemed to be a
21return to employment for the purposes of this Section. This
22provision applies without regard to whether service was
23terminated prior to the effective date of this amendatory Act
24of 1991.
25    (c) If an employer certifies that an annuitant has been
26reemployed on a permanent and continuous basis or in a position

 

 

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1in which the annuitant is expected to serve for at least 9
2months, the annuitant shall resume his or her status as a
3participating employee and shall be entitled to all rights
4applicable to participating employees upon filing with the
5board an election to forgo forego all annuity payments during
6the period of reemployment. Upon subsequent retirement, the
7retirement annuity shall consist of the annuity which was
8terminated by the reemployment, plus the additional retirement
9annuity based upon service granted during the period of
10reemployment, but the combined retirement annuity shall not
11exceed the maximum annuity applicable on the date of the last
12retirement.
13    The total service and earnings credited before and after
14the initial date of retirement shall be considered in
15determining eligibility of the employee or the employee's
16beneficiary to benefits under this Article, and in calculating
17final rate of earnings.
18    In determining the death benefit payable to a beneficiary
19of an annuitant who again becomes a participating employee
20under this Section, accumulated normal and additional
21contributions shall be considered as the sum of the accumulated
22normal and additional contributions at the date of initial
23retirement and the accumulated normal and additional
24contributions credited after that date, less the sum of the
25annuity payments received by the annuitant.
26    The survivors insurance benefits provided under Section

 

 

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115-145 shall not be applicable to an annuitant who resumes his
2or her status as a participating employee, unless the
3annuitant, at the time of initial retirement, has a survivors
4insurance beneficiary who could qualify for such benefits.
5    If the participant's annuitant's employment is terminated
6because of circumstances other than death before 9 months from
7the date of reemployment, the provisions of this Section
8regarding resumption of status as a participating employee
9shall not apply. The normal and survivors insurance
10contributions which are deducted during this period shall be
11refunded to the annuitant without interest, and subsequent
12benefits under this Article shall be the same as those which
13were applicable prior to the date the annuitant resumed
14employment.
15    The amendments made to this Section by this amendatory Act
16of the 91st General Assembly apply without regard to whether
17the annuitant was in service on or after the effective date of
18this amendatory Act.
19(Source: P.A. 91-887 (Sections 10 and 25), eff. 7-6-00; 92-16,
20eff. 6-28-01.)
 
21    (40 ILCS 5/15-139.5 new)
22    Sec. 15-139.5. Return to work by affected annuitant; notice
23and contribution by employer.
24    (a) An employer who employs a person receiving a retirement
25annuity from the System in an academic year beginning on or

 

 

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1after August 1, 2012 must notify the System of that employment
2within 60 days after employing the annuitant. The notice must
3specify whether the annuitant will be compensated from federal,
4foundation, or trust funds that are contingent upon the
5employment of that specific annuitant. The notice must include
6the employer's determination of whether or not the annuitant is
7an "affected annuitant" as defined in subsection (b).
8    The employer must also record, document, and certify to the
9System (i) the number of paid days and paid weeks worked by the
10annuitant in the academic year, (ii) the amount of compensation
11paid to the annuitant for employment during the academic year,
12and (iii) the amount of that compensation, if any, that comes
13from federal, foundation, or trust funds that are contingent
14upon the employment of that specific annuitant.
15    As used in this Section, "paid day" means a day on which a
16person performs personal services for an employer and for which
17the person is compensated by the employer; and "paid week"
18means a calendar week in which a person has at least one paid
19day.
20    For the purposes of this Section, an annuitant whose
21employment by an employer extends over more than one academic
22year shall be deemed to be re-employed by that employer in each
23of those academic years.
24    The System may specify the time, form, and manner of
25providing the determinations, notifications, certifications,
26and documentation required under this Section.

 

 

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1    (b) A person receiving a retirement annuity from the System
2becomes an "affected annuitant" on the first day of the
3academic year following the academic year in which the
4annuitant first meets both of the following conditions:
5        (1) While receiving a retirement annuity under this
6    Article, the annuitant has been employed on or after August
7    1, 2012 by one or more employers under this Article for a
8    total of more than 18 paid weeks (which need not have been
9    with the same employer or in the same academic year);
10    except that any periods of employment for which the
11    annuitant was compensated solely from federal, foundation,
12    or trust funds that were contingent upon the employment of
13    that specific annuitant are excluded.
14        (2) While receiving a retirement annuity under this
15    Article, the annuitant was employed on or after August 1,
16    2012 by one or more employers under this Article and
17    received or became entitled to receive during an academic
18    year compensation for that employment in excess of 40% of
19    his or her highest annual earnings prior to retirement;
20    except that compensation paid from federal, foundation, or
21    trust funds that are contingent upon the employment of that
22    specific annuitant is excluded.
23    A person who becomes an affected annuitant remains an
24affected annuitant, except for any period during which the
25person returns to active service and does not receive a
26retirement annuity from the System.

 

 

09700HB4996ham001- 26 -LRB097 14805 EFG 66871 a

1    (c) It is the obligation of the employer to determine
2whether an annuitant is an affected annuitant before employing
3the annuitant. For that purpose the employer may require the
4annuitant to disclose and document his or her relevant prior
5employment and earnings history. Failure of the employer to
6make this determination correctly and in a timely manner or to
7include this determination with the notification required
8under subsection (a) does not excuse the employer from making
9the contribution required under subsection (e).
10    The System may assist the employer in determining whether a
11person is an affected annuitant. The System shall inform the
12employer if it discovers that the employer's determination is
13inconsistent with the employment and earnings information in
14the System's records.
15    (d) Upon the request of an annuitant, the System shall
16certify to the annuitant the following information, as that
17information is indicated in the records of the System: (i) the
18annuitant's highest annual earnings prior to retirement, (ii)
19the number of paid weeks worked by the annuitant for an
20employer on or after August 1, 2012, (iii) the compensation
21paid for that employment in each academic year, and (iv)
22whether any of that employment or compensation has been
23certified to the System as being paid from federal, foundation,
24or trust funds that were contingent upon the employment of that
25specific annuitant.
26    (e) In addition to the requirements of subsection (a), an

 

 

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1employer who employs an affected annuitant must pay to the
2System an employer contribution in the amount and manner
3provided in this Section, unless the annuitant is compensated
4by that employer solely from federal, foundation, or trust
5funds that are contingent upon the employment of that specific
6annuitant.
7    The employer contribution required under this Section for
8employment of an affected annuitant in an academic year shall
9be equal to 12 times the amount of the gross monthly retirement
10annuity payable to the annuitant for the month in which the
11first paid day of that employment occurs, after any reduction
12in that annuity that may be imposed under subsection (b) of
13Section 15-139.
14    If an affected annuitant is employed by more than one
15employer in an academic year, the employer contribution
16required under this Section shall be divided among those
17employers in proportion to their respective portions of the
18total compensation paid to the affected annuitant for that
19employment during that academic year.
20    If the System determines that an employer, without
21reasonable justification, has failed to make the determination
22of affected annuitant status correctly and in a timely manner,
23or has failed to notify the system or to correctly document or
24certify to the System any of the information required by this
25Section, and that failure results in a delayed determination by
26the System that a contribution is payable under this Section,

 

 

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1then the amount of that employer's contribution otherwise
2determined under this Section shall be doubled.
3    The System shall deem a failure to correctly determine the
4annuitant's status to be justified if the employer establishes
5to the System's satisfaction that the employer, after due
6diligence, made an erroneous determination that the annuitant
7was not an affected annuitant due to reasonable reliance on
8false or misleading information provided by the annuitant or
9another employer, or an error in the annuitant's official
10employment or earnings records.
11    (f) Whenever the System determines that an employer is
12liable for a contribution under this Section, it shall so
13notify the employer and certify the amount of the contribution.
14The employer may pay the required contribution without interest
15at any time within one year after receipt of the certification.
16If the employer fails to pay within that year, then interest
17shall be charged at a rate equal to the System's annual
18actuarially assumed rate of return on investment, compounded
19annually from the 366th day after receipt of the certification
20from the System. Payment must be concluded within 2 years after
21receipt of the certification by the employer. If the employer
22fails to make complete payment, including applicable interest,
23within 2 years, then the System may, after giving notice to the
24employer, certify the delinquent amount to the State
25Comptroller, and the Comptroller shall thereupon deduct the
26certified delinquent amount from State funds payable to the

 

 

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1employer and pay them instead to the System.
2    (g) If an employer is required to make a contribution to
3the System as a result of employing an affected annuitant and
4the annuitant later elects to forgo his or her annuity in that
5same academic year pursuant to subsection (c) of Section
615-139, then the required contribution by the employer shall be
7waived, and if the contribution has already been paid, it shall
8be refunded to the employer without interest.
9    (h) Notwithstanding any other provision of this Article,
10the employer contribution required under this Section shall not
11be included in the determination of any benefit under this
12Article or any other Article of this Code, regardless of
13whether the annuitant returns to active service, and is in
14addition to any other State or employer contribution required
15under this Article.
 
16    (40 ILCS 5/15-153.2)  (from Ch. 108 1/2, par. 15-153.2)
17    Sec. 15-153.2. Disability retirement annuity. A
18participant whose disability benefits are discontinued under
19the provisions of clause (6) of Section 15-152 and who is not a
20participant in the optional retirement plan established under
21Section 15-158.2 is entitled to a disability retirement annuity
22of 35% of the basic compensation which was payable to the
23participant at the time that disability began, provided that
24the board determines that the participant has a medically
25determinable physical or mental impairment that prevents him or

 

 

09700HB4996ham001- 30 -LRB097 14805 EFG 66871 a

1her from engaging in any substantial gainful activity, and
2which can be expected to result in death or which has lasted or
3can be expected to last for a continuous period of not less
4than 12 months.
5    The board's determination of whether a participant is
6disabled shall be based upon:
7        (i) a written certificate from one or more licensed and
8    practicing physicians appointed by or acceptable to the
9    board, stating that the participant is unable to engage in
10    any substantial gainful activity; and
11        (ii) any other medical examinations, hospital records,
12    laboratory results, or other information necessary for
13    determining the employment capacity and condition of the
14    participant.
15    The terms "medically determinable physical or mental
16impairment" and "substantial gainful activity" shall have the
17meanings ascribed to them in the federal Social Security Act,
18as now or hereafter amended, and the regulations issued
19thereunder.
20    The disability retirement annuity payment period shall
21begin immediately following the expiration of the disability
22benefit payments under clause (6) of Section 15-152 and shall
23be discontinued for a recipient of a disability retirement
24annuity when (1) the physical or mental impairment no longer
25prevents the participant from engaging in any substantial
26gainful activity, (2) the participant dies or (3) the

 

 

09700HB4996ham001- 31 -LRB097 14805 EFG 66871 a

1participant elects to receive a retirement annuity under
2Sections 15-135 and 15-136. If a person's disability retirement
3annuity is discontinued under clause (1), all rights and
4credits accrued in the system on the date that the disability
5retirement annuity began shall be restored, and the disability
6retirement annuity paid shall be considered as disability
7payments under clause (6) of Section 15-152.
8(Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
9eff. 8-22-97; 90-766, eff. 8-14-98.)
 
10    (40 ILCS 5/15-168.2 new)
11    Sec. 15-168.2. Audit of employers. Beginning August 1,
122012, the System may audit the employment records and payroll
13records of all employers. When the System audits an employer,
14it shall specify the exact information it requires, which may
15include but need not be limited to the names, titles, and
16earnings history of every individual receiving compensation
17from the employer. If an employer is audited by the System,
18then the employer must provide to the System all necessary
19documents and records within 60 calendar days after receiving
20notification from the System. When the System audits an
21employer, it shall send related correspondence by certified
22mail.
 
23    (40 ILCS 5/15-186)  (from Ch. 108 1/2, par. 15-186)
24    Sec. 15-186. Fraud.

 

 

09700HB4996ham001- 32 -LRB097 14805 EFG 66871 a

1    Any person who knowingly makes any false statement, or
2falsifies or permits to be falsified any record or records of
3this system, in any attempt to defraud the system or to mislead
4or defraud an employer with respect to employment of an
5annuitant under Section 15-139.5, is guilty of a Class A
6misdemeanor.
7(Source: P.A. 77-2830.)
 
8    Section 99. Effective date. This Act takes effect July 1,
92012.".