HB1154 EngrossedLRB098 08482 EFG 38589 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 6. The Illinois Pension Code is amended by changing
5Sections 2-108, 14-103.10, 15-111, and 16-121 and by adding
6Sections 2-105.1, 14-103.40, 15-107.1, and 16-106.4 as
7follows:
 
8    (40 ILCS 5/2-105.1 new)
9    Sec. 2-105.1. Tier I participant."Tier I participant": A
10participant who first became a participant before January 1,
112011.
 
12    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
13    Sec. 2-108. Salary. "Salary": (1) For members of the
14General Assembly, the total compensation paid to the member by
15the State for one year of service, including the additional
16amounts, if any, paid to the member as an officer pursuant to
17Section 1 of "An Act in relation to the compensation and
18emoluments of the members of the General Assembly", approved
19December 6, 1907, as now or hereafter amended.
20    (2) For the State executive officers specified in Section
212-105, the total compensation paid to the member for one year
22of service.

 

 

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1    (3) For members of the System who are participants under
2Section 2-117.1, or who are serving as Clerk or Assistant Clerk
3of the House of Representatives or Secretary or Assistant
4Secretary of the Senate, the total compensation paid to the
5member for one year of service, but not to exceed the salary of
6the highest salaried officer of the General Assembly.
7    However, in the event that federal law results in any
8participant receiving imputed income based on the value of
9group term life insurance provided by the State, such imputed
10income shall not be included in salary for the purposes of this
11Article.
12    Notwithstanding any other provision of this Code, the
13salary of a Tier I participant for the purposes of this Code
14shall not exceed, for periods of service in a term of office
15beginning on or after the effective date of this amendatory Act
16of the 98th General Assembly, the greater of (i) the annual
17contribution and benefit base established for the applicable
18year by the Commissioner of Social Security under the federal
19Social Security Act or (ii) the annual salary of the
20participant during the 365 days immediately preceding that
21effective date.
22(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
23    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
24    Sec. 14-103.10. Compensation.
25    (a) For periods of service prior to January 1, 1978, the

 

 

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1full rate of salary or wages payable to an employee for
2personal services performed if he worked the full normal
3working period for his position, subject to the following
4maximum amounts: (1) prior to July 1, 1951, $400 per month or
5$4,800 per year; (2) between July 1, 1951 and June 30, 1957
6inclusive, $625 per month or $7,500 per year; (3) beginning
7July 1, 1957, no limitation.
8    In the case of service of an employee in a position
9involving part-time employment, compensation shall be
10determined according to the employees' earnings record.
11    (b) For periods of service on and after January 1, 1978,
12all remuneration for personal services performed defined as
13"wages" under the Social Security Enabling Act, including that
14part of such remuneration which is in excess of any maximum
15limitation provided in such Act, and including any benefits
16received by an employee under a sick pay plan in effect before
17January 1, 1981, but excluding lump sum salary payments:
18        (1) for vacation,
19        (2) for accumulated unused sick leave,
20        (3) upon discharge or dismissal,
21        (4) for approved holidays.
22    (c) For periods of service on or after December 16, 1978,
23compensation also includes any benefits, other than lump sum
24salary payments made at termination of employment, which an
25employee receives or is eligible to receive under a sick pay
26plan authorized by law.

 

 

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1    (d) For periods of service after September 30, 1985,
2compensation also includes any remuneration for personal
3services not included as "wages" under the Social Security
4Enabling Act, which is deducted for purposes of participation
5in a program established pursuant to Section 125 of the
6Internal Revenue Code or its successor laws.
7    (e) For members for which Section 1-160 applies for periods
8of service on and after January 1, 2011, all remuneration for
9personal services performed defined as "wages" under the Social
10Security Enabling Act, excluding remuneration that is in excess
11of the annual earnings, salary, or wages of a member or
12participant, as provided in subsection (b-5) of Section 1-160,
13but including any benefits received by an employee under a sick
14pay plan in effect before January 1, 1981. Compensation shall
15exclude lump sum salary payments:
16        (1) for vacation;
17        (2) for accumulated unused sick leave;
18        (3) upon discharge or dismissal; and
19        (4) for approved holidays.
20    (f) Notwithstanding any other provision of this Code, the
21compensation of a Tier I member for the purposes of this Code
22shall not exceed, for periods of service on or after the
23effective date of this amendatory Act of the 98th General
24Assembly, the greater of (i) the annual contribution and
25benefit base established for the applicable year by the
26Commissioner of Social Security under the federal Social

 

 

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1Security Act or (ii) the annual compensation of the member
2during the 365 days immediately preceding that effective date;
3except that this limitation does not apply to a member's
4compensation that is determined under an employment contract or
5collective bargaining agreement that is in effect on the
6effective date of this amendatory Act of the 98th General
7Assembly and has not been amended or renewed after that date.
8(Source: P.A. 96-1490, eff. 1-1-11.)
 
9    (40 ILCS 5/14-103.40 new)
10    Sec. 14-103.40. Tier I member. "Tier I member": A member of
11this System who first became a member or participant before
12January 1, 2011 under any reciprocal retirement system or
13pension fund established under this Code other than a
14retirement system or pension fund established under Article 2,
153, 4, 5, 6, or 18 of this Code.
 
16    (40 ILCS 5/15-107.1 new)
17    Sec. 15-107.1. Tier I participant. "Tier I participant": A
18participant under this Article, other than a participant in the
19self-managed plan under Section 15-158.2, who first became a
20member or participant before January 1, 2011 under any
21reciprocal retirement system or pension fund established under
22this Code other than a retirement system or pension fund
23established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 

 

 

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1    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
2    Sec. 15-111. Earnings. "Earnings": An amount paid for
3personal services equal to the sum of the basic compensation
4plus extra compensation for summer teaching, overtime or other
5extra service. For periods for which an employee receives
6service credit under subsection (c) of Section 15-113.1 or
7Section 15-113.2, earnings are equal to the basic compensation
8on which contributions are paid by the employee during such
9periods. Compensation for employment which is irregular,
10intermittent and temporary shall not be considered earnings,
11unless the participant is also receiving earnings from the
12employer as an employee under Section 15-107.
13    With respect to transition pay paid by the University of
14Illinois to a person who was a participating employee employed
15in the fire department of the University of Illinois's
16Champaign-Urbana campus immediately prior to the elimination
17of that fire department:
18        (1) "Earnings" includes transition pay paid to the
19    employee on or after the effective date of this amendatory
20    Act of the 91st General Assembly.
21        (2) "Earnings" includes transition pay paid to the
22    employee before the effective date of this amendatory Act
23    of the 91st General Assembly only if (i) employee
24    contributions under Section 15-157 have been withheld from
25    that transition pay or (ii) the employee pays to the System
26    before January 1, 2001 an amount representing employee

 

 

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1    contributions under Section 15-157 on that transition pay.
2    Employee contributions under item (ii) may be paid in a
3    lump sum, by withholding from additional transition pay
4    accruing before January 1, 2001, or in any other manner
5    approved by the System. Upon payment of the employee
6    contributions on transition pay, the corresponding
7    employer contributions become an obligation of the State.
8    Notwithstanding any other provision of this Code, the
9earnings of a Tier I participant for the purposes of this Code
10shall not exceed, for periods of service on or after the
11effective date of this amendatory Act of the 98th General
12Assembly, the greater of (i) the annual contribution and
13benefit base established for the applicable year by the
14Commissioner of Social Security under the federal Social
15Security Act or (ii) the annual earnings of the participant
16during the 365 days immediately preceding that effective date;
17except that this limitation does not apply to a participant's
18earnings that are determined under an employment contract or
19collective bargaining agreement that is in effect on the
20effective date of this amendatory Act of the 98th General
21Assembly and has not been amended or renewed after that date.
22(Source: P.A. 91-887, eff. 7-6-00.)
 
23    (40 ILCS 5/16-106.4 new)
24    Sec. 16-106.4. Tier I member. "Tier I member": A member
25under this Article who first became a member or participant

 

 

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1before January 1, 2011 under any reciprocal retirement system
2or pension fund established under this Code other than a
3retirement system or pension fund established under Article 2,
43, 4, 5, 6, or 18 of this Code.
 
5    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
6    Sec. 16-121. Salary. "Salary": The actual compensation
7received by a teacher during any school year and recognized by
8the system in accordance with rules of the board. For purposes
9of this Section, "school year" includes the regular school term
10plus any additional period for which a teacher is compensated
11and such compensation is recognized by the rules of the board.
12    Notwithstanding any other provision of this Code, the
13salary of a Tier I member for the purposes of this Code shall
14not exceed, for periods of service on or after the effective
15date of this amendatory Act of the 98th General Assembly, the
16greater of (i) the annual contribution and benefit base
17established for the applicable year by the Commissioner of
18Social Security under the federal Social Security Act or (ii)
19the annual salary of the member during the 365 days immediately
20preceding that effective date; except that this limitation does
21not apply to a member's salary that is determined under an
22employment contract or collective bargaining agreement that is
23in effect on the effective date of this amendatory Act of the
2498th General Assembly and has not been amended or renewed after
25that date.

 

 

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1(Source: P.A. 84-1028.)
 
2    Section 90. The State Mandates Act is amended by adding
3Section 8.37 as follows:
 
4    (30 ILCS 805/8.37 new)
5    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
6of this Act, no reimbursement by the State is required for the
7implementation of any mandate created by this amendatory Act of
8the 98th General Assembly.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.