97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3793

 

Introduced 2/10/2012, by Sen. Darin M. LaHood

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-101  from Ch. 108 1/2, par. 2-101
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 5/14-103.05  from Ch. 108 1/2, par. 14-103.05

    Amends the General Assembly and State Employees Articles of the Illinois Pension Code. Provides that, for members of the Illinois Senate, participation in the General Assembly Retirement System is restricted to those individuals who first become participants before the effective date of the amendatory Act. Provides that an individual who first becomes a member of the Illinois Senate on or after February 1, 2011 and before the effective date of the amendatory Act may become a member of the State Employees' Retirement System of Illinois by making an election to participate in that System. Provides that an individual who first becomes a member of the Illinois Senate on or after the effective date of the amendatory Act shall become a member of the State Employees' Retirement System of Illinois beginning on the date of becoming a member of the Illinois Senate unless, within 24 months from that date, he or she has filed with the board a written notice of election not to participate in that System. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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
5Sections 2-101, 2-105, 2-117, and 14-103.05 as follows:
 
6    (40 ILCS 5/2-101)  (from Ch. 108 1/2, par. 2-101)
7    Sec. 2-101. Creation of system. A retirement system is
8created to provide retirement annuities, survivor's annuities
9and other benefits for certain members of the General Assembly,
10certain elected state officials, and their beneficiaries.
11    The system shall be known as the "General Assembly
12Retirement System". All its funds and property shall be a trust
13separate from all other entities, maintained for the purpose of
14securing payment of annuities and benefits under this Article.
15    For members of the Illinois Senate, participation in the
16retirement system created under this Article is restricted to
17those individuals who first become participants before the
18effective date of this amendatory Act of the 97th General
19Assembly.
20(Source: P.A. 83-1440.)
 
21    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
22    Sec. 2-105. Member. "Member": Members of the General

 

 

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1Assembly of this State, including persons who enter military
2service while a member of the General Assembly, and any person
3serving as Governor, Lieutenant Governor, Secretary of State,
4Treasurer, Comptroller, or Attorney General for the period of
5service in such office.
6    Any person who has served for 10 or more years as Clerk or
7Assistant Clerk of the House of Representatives, Secretary or
8Assistant Secretary of the Senate, or any combination thereof,
9may elect to become a member of this system while thenceforth
10engaged in such service by filing a written election with the
11board. Any person so electing shall be deemed an active member
12of the General Assembly for the purpose of validating and
13transferring any service credits earned under any of the funds
14and systems established under Articles 3 through 18 of this
15Code.
16    However, notwithstanding any other provision of this
17Article, a member of the Illinois Senate shall not be deemed to
18be a participant for the purposes of this Article unless he or
19she first becomes a participant before the effective date of
20this amendatory Act of the 97th General Assembly.
21(Source: P.A. 85-1008.)
 
22    (40 ILCS 5/2-117)  (from Ch. 108 1/2, par. 2-117)
23    Sec. 2-117. Participants - Election not to participate.
24    (a) Every person who was a member on November 1, 1947, or
25in military service on such date, is subject to the provisions

 

 

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1of this system beginning upon such date, unless prior to such
2date he or she filed with the board a written notice of
3election not to participate .
4    Every person who becomes a member after November 1, 1947,
5and who is then not a participant becomes a participant
6beginning upon the date of becoming a member unless, within 24
7months from that date, he or she has filed with the board a
8written notice of election not to participate.
9    Every member of the Illinois Senate who first becomes a
10participant after February 1, 2011 and before the effective
11date of this amendatory Act of the 97th General Assembly
12becomes a participant beginning on the date of becoming a
13member unless, within 24 months after that date, he or she has
14filed with the board a written notice of election either (i)
15not to participate or (ii) to participate instead in the
16retirement system created under Article 14.
17    (b) A member who has filed notice of an election not to
18participate (and a former member who has not yet begun to
19receive a retirement annuity under this Article) may become a
20participant with respect to the period for which the member
21elected not to participate upon filing with the board, before
22April 1, 1993, a written rescission of the election not to
23participate. Upon contributing an amount equal to the
24contributions he or she would have made as a participant from
25November 1, 1947, or the date of becoming a member, whichever
26is later, to the date of becoming a participant, with interest

 

 

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1at the rate of 4% per annum until the contributions are paid,
2the participant shall receive credit for service as a member
3prior to the date of the rescission, both before and after
4November 1, 1947. The required contributions shall be made
5before commencement of the retirement annuity; otherwise no
6credit for service prior to the date of participation shall be
7granted.
8(Source: P.A. 86-273; 87-1265.)
 
9    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)
10    Sec. 14-103.05. Employee.
11    (a) Any person employed by a Department who receives salary
12for personal services rendered to the Department on a warrant
13issued pursuant to a payroll voucher certified by a Department
14and drawn by the State Comptroller upon the State Treasurer,
15including an elected official described in subparagraph (d) of
16Section 14-104, shall become an employee for purpose of
17membership in the Retirement System on the first day of such
18employment.
19    A person entering service on or after January 1, 1972 and
20prior to January 1, 1984 shall become a member as a condition
21of employment and shall begin making contributions as of the
22first day of employment.
23    A person entering service on or after January 1, 1984
24shall, upon completion of 6 months of continuous service which
25is not interrupted by a break of more than 2 months, become a

 

 

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1member as a condition of employment. Contributions shall begin
2the first of the month after completion of the qualifying
3period.
4    A person employed by the Chicago Metropolitan Agency for
5Planning on the effective date of this amendatory Act of the
695th General Assembly who was a member of this System as an
7employee of the Chicago Area Transportation Study and makes an
8election under Section 14-104.13 to participate in this System
9for his or her employment with the Chicago Metropolitan Agency
10for Planning.
11    An individual who first becomes a member of the Illinois
12Senate on or after February 1, 2011 and before the effective
13date of this amendatory Act of the 97th General Assembly shall
14become a member of the System by making an election under
15Section 2-117 to participate in the System created under this
16Article.
17    An individual who first becomes a member of the Illinois
18Senate on or after the effective date of this amendatory Act of
19the 97th General Assembly shall become a member of the System
20beginning on the date of becoming a member of the Illinois
21Senate unless, within 24 months from that date, he or she has
22filed with the board a written notice of election not to
23participate in the System created under this Article.
24    The qualifying period of 6 months of service is not
25applicable to: (1) a person who has been granted credit for
26service in a position covered by the State Universities

 

 

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1Retirement System, the Teachers' Retirement System of the State
2of Illinois, the General Assembly Retirement System, or the
3Judges Retirement System of Illinois unless that service has
4been forfeited under the laws of those systems; (2) a person
5entering service on or after July 1, 1991 in a noncovered
6position; (3) a person to whom Section 14-108.2a or 14-108.2b
7applies; or (4) a person to whom subsection (a-5) of this
8Section applies.
9    (a-5) A person entering service on or after December 1,
102010 shall become a member as a condition of employment and
11shall begin making contributions as of the first day of
12employment. A person serving in the qualifying period on
13December 1, 2010 will become a member on December 1, 2010 and
14shall begin making contributions as of December 1, 2010.
15    (b) The term "employee" does not include the following:
16        (1) except as otherwise provided in this Section,
17    members of the State Legislature, and persons electing to
18    become members of the General Assembly Retirement System
19    pursuant to Section 2-105;
20        (2) incumbents of offices normally filled by vote of
21    the people;
22        (3) except as otherwise provided in this Section, any
23    person appointed by the Governor with the advice and
24    consent of the Senate unless that person elects to
25    participate in this system;
26        (3.1) any person serving as a commissioner of an ethics

 

 

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1    commission created under the State Officials and Employees
2    Ethics Act unless that person elects to participate in this
3    system with respect to that service as a commissioner;
4        (3.2) any person serving as a part-time employee in any
5    of the following positions: Legislative Inspector General,
6    Special Legislative Inspector General, employee of the
7    Office of the Legislative Inspector General, Executive
8    Director of the Legislative Ethics Commission, or staff of
9    the Legislative Ethics Commission, regardless of whether
10    he or she is in active service on or after July 8, 2004
11    (the effective date of Public Act 93-685), unless that
12    person elects to participate in this System with respect to
13    that service; in this item (3.2), a "part-time employee" is
14    a person who is not required to work at least 35 hours per
15    week;
16        (3.3) any person who has made an election under Section
17    1-123 and who is serving either as legal counsel in the
18    Office of the Governor or as Chief Deputy Attorney General;
19        (4) except as provided in Section 14-108.2 or
20    14-108.2c, any person who is covered or eligible to be
21    covered by the Teachers' Retirement System of the State of
22    Illinois, the State Universities Retirement System, or the
23    Judges Retirement System of Illinois;
24        (5) an employee of a municipality or any other
25    political subdivision of the State;
26        (6) any person who becomes an employee after June 30,

 

 

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1    1979 as a public service employment program participant
2    under the Federal Comprehensive Employment and Training
3    Act and whose wages or fringe benefits are paid in whole or
4    in part by funds provided under such Act;
5        (7) enrollees of the Illinois Young Adult Conservation
6    Corps program, administered by the Department of Natural
7    Resources, authorized grantee pursuant to Title VIII of the
8    "Comprehensive Employment and Training Act of 1973", 29 USC
9    993, as now or hereafter amended;
10        (8) enrollees and temporary staff of programs
11    administered by the Department of Natural Resources under
12    the Youth Conservation Corps Act of 1970;
13        (9) any person who is a member of any professional
14    licensing or disciplinary board created under an Act
15    administered by the Department of Professional Regulation
16    or a successor agency or created or re-created after the
17    effective date of this amendatory Act of 1997, and who
18    receives per diem compensation rather than a salary,
19    notwithstanding that such per diem compensation is paid by
20    warrant issued pursuant to a payroll voucher; such persons
21    have never been included in the membership of this System,
22    and this amendatory Act of 1987 (P.A. 84-1472) is not
23    intended to effect any change in the status of such
24    persons;
25        (10) any person who is a member of the Illinois Health
26    Care Cost Containment Council, and receives per diem

 

 

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1    compensation rather than a salary, notwithstanding that
2    such per diem compensation is paid by warrant issued
3    pursuant to a payroll voucher; such persons have never been
4    included in the membership of this System, and this
5    amendatory Act of 1987 is not intended to effect any change
6    in the status of such persons;
7        (11) any person who is a member of the Oil and Gas
8    Board created by Section 1.2 of the Illinois Oil and Gas
9    Act, and receives per diem compensation rather than a
10    salary, notwithstanding that such per diem compensation is
11    paid by warrant issued pursuant to a payroll voucher;
12        (12) a person employed by the State Board of Higher
13    Education in a position with the Illinois Century Network
14    as of June 30, 2004, who remains continuously employed
15    after that date by the Department of Central Management
16    Services in a position with the Illinois Century Network
17    and participates in the Article 15 system with respect to
18    that employment;
19        (13) any person who first becomes a member of the Civil
20    Service Commission on or after January 1, 2012;
21        (14) any person, other than the Director of Employment
22    Security, who first becomes a member of the Board of Review
23    of the Department of Employment Security on or after
24    January 1, 2012;
25        (15) any person who first becomes a member of the Civil
26    Service Commission on or after January 1, 2012;

 

 

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1        (16) any person who first becomes a member of the
2    Illinois Liquor Control Commission on or after January 1,
3    2012;
4        (17) any person who first becomes a member of the
5    Secretary of State Merit Commission on or after January 1,
6    2012;
7        (18) any person who first becomes a member of the Human
8    Rights Commission on or after January 1, 2012;
9        (19) any person who first becomes a member of the State
10    Mining Board on or after January 1, 2012;
11        (20) any person who first becomes a member of the
12    Property Tax Appeal Board on or after January 1, 2012;
13        (21) any person who first becomes a member of the
14    Illinois Racing Board on or after January 1, 2012;
15        (22) any person who first becomes a member of the
16    Department of State Police Merit Board on or after January
17    1, 2012;
18        (23) any person who first becomes a member of the
19    Illinois State Toll Highway Authority on or after January
20    1, 2012; or
21        (24) any person who first becomes a member of the
22    Illinois State Board of Elections on or after January 1,
23    2012.
24    (c) An individual who represents or is employed as an
25officer or employee of a statewide labor organization that
26represents members of this System may participate in the System

 

 

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1and shall be deemed an employee, provided that (1) the
2individual has previously earned creditable service under this
3Article, (2) the individual files with the System an
4irrevocable election to become a participant within 6 months
5after the effective date of this amendatory Act of the 94th
6General Assembly, and (3) the individual does not receive
7credit for that employment under any other provisions of this
8Code. An employee under this subsection (c) is responsible for
9paying to the System both (i) employee contributions based on
10the actual compensation received for service with the labor
11organization and (ii) employer contributions based on the
12percentage of payroll certified by the board; all or any part
13of these contributions may be paid on the employee's behalf or
14picked up for tax purposes (if authorized under federal law) by
15the labor organization.
16    A person who is an employee as defined in this subsection
17(c) may establish service credit for similar employment prior
18to becoming an employee under this subsection by paying to the
19System for that employment the contributions specified in this
20subsection, plus interest at the effective rate from the date
21of service to the date of payment. However, credit shall not be
22granted under this subsection (c) for any such prior employment
23for which the applicant received credit under any other
24provision of this Code or during which the applicant was on a
25leave of absence.
26(Source: P.A. 96-1490, eff. 1-1-11; 97-609, eff. 1-1-12.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.