97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2938

 

Introduced 2/1/2012, by Sen. Steven M. Landek

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-105  from Ch. 108 1/2, par. 2-105
40 ILCS 5/2-117  from Ch. 108 1/2, par. 2-117
40 ILCS 5/2-117.4 new
40 ILCS 5/14-103.05  from Ch. 108 1/2, par. 14-103.05
40 ILCS 5/14-104.14 new

    Amends the General Assembly and State Employees Articles of the Illinois Pension Code. Provides for a person first elected or appointed to the Senate after the effective date of the amendatory Act to be a member of the State Employees' Retirement System of Illinois (rather than the General Assembly Retirement System). Allows a member of the Senate who is first appointed to that office on or after February 1, 2011 and who, prior to that date, has no service credit in the General Assembly Retirement System to transfer creditable service earned in the General Assembly Retirement System to the State Employees' Retirement System of Illinois for a limited time. Effective immediately.


LRB097 15497 JDS 60612 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2938LRB097 15497 JDS 60612 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 2-105, 2-117, and 14-103.05 and by adding Sections
62-117.4 and 14-104.14 as follows:
 
7    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
8    Sec. 2-105. Member. "Member": Members of the General
9Assembly of this State including persons who enter military
10service while a member of the General Assembly and any person
11serving as Governor, Lieutenant Governor, Secretary of State,
12Treasurer, Comptroller, or Attorney General for the period of
13service in such office.
14    Any person who has served for 10 or more years as Clerk or
15Assistant Clerk of the House of Representatives, Secretary or
16Assistant Secretary of the Senate, or any combination thereof,
17may elect to become a member of this system while thenceforth
18engaged in such service by filing a written election with the
19board. Any person so electing shall be deemed an active member
20of the General Assembly for the purpose of validating and
21transferring any service credits earned under any of the funds
22and systems established under Articles 3 through 18 of this
23Code.

 

 

SB2938- 2 -LRB097 15497 JDS 60612 b

1    "Member" does not include a person first elected or
2appointed to the Senate on or after the effective date of this
3amendatory Act of the 97th General Assembly.
4(Source: P.A. 85-1008.)
 
5    (40 ILCS 5/2-117)  (from Ch. 108 1/2, par. 2-117)
6    Sec. 2-117. Participants - Election not to participate.
7    (a) Every person who was a member on November 1, 1947, or
8in military service on such date, is subject to the provisions
9of this system beginning upon such date, unless prior to such
10date he or she filed with the board a written notice of
11election not to participate.
12    Every person who becomes a member after November 1, 1947,
13and who is then not a participant becomes a participant
14beginning upon the date of becoming a member unless (i) ,
15within 24 months from that date, he or she has filed with the
16board a written notice of election not to participate or (ii)
17within 6 months after the effective date of this amendatory Act
18of the 97th General Assembly, he or she has transferred,
19pursuant to Section 2-117.4, all of his or her credit
20accumulated under this Article to Article 14.
21    (b) A member who has filed notice of an election not to
22participate (and a former member who has not yet begun to
23receive a retirement annuity under this Article) may become a
24participant with respect to the period for which the member
25elected not to participate upon filing with the board, before

 

 

SB2938- 3 -LRB097 15497 JDS 60612 b

1April 1, 1993, a written rescission of the election not to
2participate. Upon contributing an amount equal to the
3contributions he or she would have made as a participant from
4November 1, 1947, or the date of becoming a member, whichever
5is later, to the date of becoming a participant, with interest
6at the rate of 4% per annum until the contributions are paid,
7the participant shall receive credit for service as a member
8prior to the date of the rescission, both before and after
9November 1, 1947. The required contributions shall be made
10before commencement of the retirement annuity; otherwise no
11credit for service prior to the date of participation shall be
12granted.
13(Source: P.A. 86-273; 87-1265.)
 
14    (40 ILCS 5/2-117.4 new)
15    Sec. 2-117.4. Transfer of creditable service to Article 14
16fund.
17    (a) A member of the Senate who is first appointed to that
18office on or after February 1, 2011 and who has accrued no
19service credit under this Article before that date may, within
206 months after the effective date of this Section, apply for
21the transfer of all of his or her creditable service
22accumulated under this System to the system established under
23Article 14. Such creditable service shall be transferred
24forthwith. Payment by this System to the system established
25under Article 14 shall be made at the same time and shall

 

 

SB2938- 4 -LRB097 15497 JDS 60612 b

1consist of:
2        (1) the amounts credited to the participant under this
3    System through participant contributions, including
4    interest, if any, on the date of the transfer; plus
5        (2) employer contributions in an amount equal to the
6    amount determined under clause (1).
7    Participation in this System as to any credits transferred
8under this Section shall terminate on the date of transfer.
9    (b) Any such employee who has credits and creditable
10service under the System may establish additional credits and
11creditable service for periods during which he or she could
12have elected to participate but did not so elect. Credits and
13creditable service may be established by payment to the System
14of an amount equal to the contributions he or she would have
15made if he or she had elected to participate, plus interest to
16the date of payment.
17    (c) Any such employee may reinstate credits and creditable
18service terminated upon receipt of a refund, by payment to the
19System of the amount of the refund plus interest thereon to the
20date of payment.
 
21    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)
22    Sec. 14-103.05. Employee.
23    (a) Any person employed by a Department who receives salary
24for personal services rendered to the Department on a warrant
25issued pursuant to a payroll voucher certified by a Department

 

 

SB2938- 5 -LRB097 15497 JDS 60612 b

1and drawn by the State Comptroller upon the State Treasurer,
2including an elected official described in subparagraph (d) of
3Section 14-104, shall become an employee for purpose of
4membership in the Retirement System on the first day of such
5employment.
6    A person entering service on or after January 1, 1972 and
7prior to January 1, 1984 shall become a member as a condition
8of employment and shall begin making contributions as of the
9first day of employment.
10    A person entering service on or after January 1, 1984
11shall, upon completion of 6 months of continuous service which
12is not interrupted by a break of more than 2 months, become a
13member as a condition of employment. Contributions shall begin
14the first of the month after completion of the qualifying
15period.
16    A person employed by the Chicago Metropolitan Agency for
17Planning on the effective date of this amendatory Act of the
1895th General Assembly who was a member of this System as an
19employee of the Chicago Area Transportation Study and makes an
20election under Section 14-104.13 to participate in this System
21for his or her employment with the Chicago Metropolitan Agency
22for Planning.
23    The qualifying period of 6 months of service is not
24applicable to: (1) a person who has been granted credit for
25service in a position covered by the State Universities
26Retirement System, the Teachers' Retirement System of the State

 

 

SB2938- 6 -LRB097 15497 JDS 60612 b

1of Illinois, the General Assembly Retirement System, or the
2Judges Retirement System of Illinois unless that service has
3been forfeited under the laws of those systems; (2) a person
4entering service on or after July 1, 1991 in a noncovered
5position; (3) a person to whom Section 14-108.2a or 14-108.2b
6applies; or (4) a person to whom subsection (a-5) of this
7Section applies.
8    (a-5) A person entering service on or after December 1,
92010 shall become a member as a condition of employment and
10shall begin making contributions as of the first day of
11employment. A person serving in the qualifying period on
12December 1, 2010 will become a member on December 1, 2010 and
13shall begin making contributions as of December 1, 2010.
14    (a-10) A person first elected or appointed to the Senate on
15or after the effective date of this amendatory Act of the 97th
16General Assembly shall be deemed an employee under this
17Article, unless that person elects not to participate in this
18System.
19    (a-11) A person who elects to transfer his or her
20creditable service to this System under Section 2-117.4 shall
21be deemed an employee under this Article upon receipt of the
22amounts transferred to the System under Section 2-117.4.
23    (b) The term "employee" does not include the following:
24        (1) except as otherwise provided in this Section,
25    members of the State Legislature, and persons electing to
26    become members of the General Assembly Retirement System

 

 

SB2938- 7 -LRB097 15497 JDS 60612 b

1    pursuant to Section 2-105;
2        (2) incumbents of offices normally filled by vote of
3    the people;
4        (3) except as otherwise provided in this Section, any
5    person appointed by the Governor with the advice and
6    consent of the Senate unless that person elects to
7    participate in this system;
8        (3.1) any person serving as a commissioner of an ethics
9    commission created under the State Officials and Employees
10    Ethics Act unless that person elects to participate in this
11    system with respect to that service as a commissioner;
12        (3.2) any person serving as a part-time employee in any
13    of the following positions: Legislative Inspector General,
14    Special Legislative Inspector General, employee of the
15    Office of the Legislative Inspector General, Executive
16    Director of the Legislative Ethics Commission, or staff of
17    the Legislative Ethics Commission, regardless of whether
18    he or she is in active service on or after July 8, 2004
19    (the effective date of Public Act 93-685), unless that
20    person elects to participate in this System with respect to
21    that service; in this item (3.2), a "part-time employee" is
22    a person who is not required to work at least 35 hours per
23    week;
24        (3.3) any person who has made an election under Section
25    1-123 and who is serving either as legal counsel in the
26    Office of the Governor or as Chief Deputy Attorney General;

 

 

SB2938- 8 -LRB097 15497 JDS 60612 b

1        (4) except as provided in Section 14-108.2 or
2    14-108.2c, any person who is covered or eligible to be
3    covered by the Teachers' Retirement System of the State of
4    Illinois, the State Universities Retirement System, or the
5    Judges Retirement System of Illinois;
6        (5) an employee of a municipality or any other
7    political subdivision of the State;
8        (6) any person who becomes an employee after June 30,
9    1979 as a public service employment program participant
10    under the Federal Comprehensive Employment and Training
11    Act and whose wages or fringe benefits are paid in whole or
12    in part by funds provided under such Act;
13        (7) enrollees of the Illinois Young Adult Conservation
14    Corps program, administered by the Department of Natural
15    Resources, authorized grantee pursuant to Title VIII of the
16    "Comprehensive Employment and Training Act of 1973", 29 USC
17    993, as now or hereafter amended;
18        (8) enrollees and temporary staff of programs
19    administered by the Department of Natural Resources under
20    the Youth Conservation Corps Act of 1970;
21        (9) any person who is a member of any professional
22    licensing or disciplinary board created under an Act
23    administered by the Department of Professional Regulation
24    or a successor agency or created or re-created after the
25    effective date of this amendatory Act of 1997, and who
26    receives per diem compensation rather than a salary,

 

 

SB2938- 9 -LRB097 15497 JDS 60612 b

1    notwithstanding that such per diem compensation is paid by
2    warrant issued pursuant to a payroll voucher; such persons
3    have never been included in the membership of this System,
4    and this amendatory Act of 1987 (P.A. 84-1472) is not
5    intended to effect any change in the status of such
6    persons;
7        (10) any person who is a member of the Illinois Health
8    Care Cost Containment Council, and receives per diem
9    compensation rather than a salary, notwithstanding that
10    such per diem compensation is paid by warrant issued
11    pursuant to a payroll voucher; such persons have never been
12    included in the membership of this System, and this
13    amendatory Act of 1987 is not intended to effect any change
14    in the status of such persons;
15        (11) any person who is a member of the Oil and Gas
16    Board created by Section 1.2 of the Illinois Oil and Gas
17    Act, and receives per diem compensation rather than a
18    salary, notwithstanding that such per diem compensation is
19    paid by warrant issued pursuant to a payroll voucher;
20        (12) a person employed by the State Board of Higher
21    Education in a position with the Illinois Century Network
22    as of June 30, 2004, who remains continuously employed
23    after that date by the Department of Central Management
24    Services in a position with the Illinois Century Network
25    and participates in the Article 15 system with respect to
26    that employment;

 

 

SB2938- 10 -LRB097 15497 JDS 60612 b

1        (13) any person who first becomes a member of the Civil
2    Service Commission on or after January 1, 2012;
3        (14) any person, other than the Director of Employment
4    Security, who first becomes a member of the Board of Review
5    of the Department of Employment Security on or after
6    January 1, 2012;
7        (15) any person who first becomes a member of the Civil
8    Service Commission on or after January 1, 2012;
9        (16) any person who first becomes a member of the
10    Illinois Liquor Control Commission on or after January 1,
11    2012;
12        (17) any person who first becomes a member of the
13    Secretary of State Merit Commission on or after January 1,
14    2012;
15        (18) any person who first becomes a member of the Human
16    Rights Commission on or after January 1, 2012;
17        (19) any person who first becomes a member of the State
18    Mining Board on or after January 1, 2012;
19        (20) any person who first becomes a member of the
20    Property Tax Appeal Board on or after January 1, 2012;
21        (21) any person who first becomes a member of the
22    Illinois Racing Board on or after January 1, 2012;
23        (22) any person who first becomes a member of the
24    Department of State Police Merit Board on or after January
25    1, 2012;
26        (23) any person who first becomes a member of the

 

 

SB2938- 11 -LRB097 15497 JDS 60612 b

1    Illinois State Toll Highway Authority on or after January
2    1, 2012; or
3        (24) any person who first becomes a member of the
4    Illinois State Board of Elections on or after January 1,
5    2012.
6    (c) An individual who represents or is employed as an
7officer or employee of a statewide labor organization that
8represents members of this System may participate in the System
9and shall be deemed an employee, provided that (1) the
10individual has previously earned creditable service under this
11Article, (2) the individual files with the System an
12irrevocable election to become a participant within 6 months
13after the effective date of this amendatory Act of the 94th
14General Assembly, and (3) the individual does not receive
15credit for that employment under any other provisions of this
16Code. An employee under this subsection (c) is responsible for
17paying to the System both (i) employee contributions based on
18the actual compensation received for service with the labor
19organization and (ii) employer contributions based on the
20percentage of payroll certified by the board; all or any part
21of these contributions may be paid on the employee's behalf or
22picked up for tax purposes (if authorized under federal law) by
23the labor organization.
24    A person who is an employee as defined in this subsection
25(c) may establish service credit for similar employment prior
26to becoming an employee under this subsection by paying to the

 

 

SB2938- 12 -LRB097 15497 JDS 60612 b

1System for that employment the contributions specified in this
2subsection, plus interest at the effective rate from the date
3of service to the date of payment. However, credit shall not be
4granted under this subsection (c) for any such prior employment
5for which the applicant received credit under any other
6provision of this Code or during which the applicant was on a
7leave of absence.
8(Source: P.A. 96-1490, eff. 1-1-11; 97-609, eff. 1-1-12.)
 
9    (40 ILCS 5/14-104.14 new)
10    Sec. 14-104.14. Service transferred from Article 2.
11Service also includes any period as a participant for which
12credit was established under Article 2 of this Code, subject to
13the following conditions:
14        (1) the credits accrued for such employment under
15    Article 2 have been transferred to this System; and
16        (2) the participant has contributed to this System an
17    amount equal to (A) employee contributions at the rate in
18    effect for noncoordinated eligible creditable service at
19    the date of membership in this System, based upon the
20    salary in effect during such period of service, plus (B)
21    the employer's share of the normal cost under this System
22    for each year that credit is being established, based on
23    the salary in effect during such period of service, plus
24    (C) regular interest, compounded annually, less (D) the
25    amount transferred on behalf of the participant under

 

 

SB2938- 13 -LRB097 15497 JDS 60612 b

1    Section 2-117.4.
2    Credit established under this Section shall be deemed
3noncoordinated eligible creditable service as defined in
4Section 14-110.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.