98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1721

 

Introduced 2/15/2013, by Sen. John M. Sullivan

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-104.6  from Ch. 108 1/2, par. 14-104.6
40 ILCS 5/14-108.2  from Ch. 108 1/2, par. 14-108.2

    Amends the Illinois Pension Code. Allows certain teachers employed by the Department of Corrections to transfer their participation and credits from the Teachers' Retirement System to the State Employees' Retirement System, upon payment of a specified contribution. Requires application within 45 days after the effective date. Provides that the transferred employees shall become noncovered employees and that the transferred service shall be deemed noncovered alternative formula service. 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 14-104.6 and 14-108.2 as follows:
 
6    (40 ILCS 5/14-104.6)  (from Ch. 108 1/2, par. 14-104.6)
7    Sec. 14-104.6. Service transferred from Article 16.
8Service also includes the following:
9    (a) Any period as a teacher employed by the Department of
10Corrections for which credit was established under Article 16
11of this Code, subject to the following conditions: (1) the
12credits accrued for such employment under Article 16 have been
13transferred to this System; and (2) the participant has
14contributed to this System an amount equal to (A) employee
15contributions at the rate in effect for noncoordinated eligible
16creditable service at the date of membership in this System,
17based upon the salary in effect during such period of service,
18plus (B) the employer's share of the normal cost under this
19System for each year that credit is being established, based on
20the salary in effect during such period of service, plus (C)
21regular interest, compounded annually, from July 1, 1987 or the
22date of first membership in this System, whichever is later, to
23the date of payment, less (D) the amount transferred on behalf

 

 

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1of the participant under Section 16-131.6.
2    (b) Any period as a security employee of the Department of
3Human Services, as defined in Section 14-110, for which credit
4was established under Article 16 of this Code, subject to the
5following conditions: (1) the credits accrued for that
6employment under Article 16 have been transferred to this
7System; and (2) the participant has contributed to this System
8an amount equal to (A) employee contributions at the rate in
9effect for noncoordinated eligible creditable service at the
10date of membership in this System, based upon the salary in
11effect during the period of service, plus (B) the employer's
12share of the normal cost under this System for each year that
13credit is being established, based on the salary in effect
14during the period of service, plus (C) regular interest,
15compounded annually, from July 1, 2001 to the date of payment,
16less (D) the amount transferred on behalf of the participant
17under Section 16-131.6.
18    (c) Credit established under this Section shall be deemed
19noncoordinated eligible creditable service as defined in
20Section 14-110.
21(Source: P.A. 92-14, eff. 6-28-01.)
 
22    (40 ILCS 5/14-108.2)  (from Ch. 108 1/2, par. 14-108.2)
23    Sec. 14-108.2. Election to transfer participation from
24TRS.
25    (a) Any person employed by the Department of Corrections

 

 

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1who is a member of the Teachers' Retirement System established
2under Article 16 of this Code may elect to become a member of
3this System on either June 1, 1987 or July 1, 1987, by
4notifying the board of his election in writing on or before May
531, 1987.
6    For such persons electing to become covered employees,
7participation in the Article 16 system shall terminate on June
81, 1987, and membership in this System shall begin on that
9date.
10    For such persons electing to become noncovered employees,
11participation in the Article 16 system shall terminate on July
121, 1987, and membership in this System shall begin on that
13date.
14    (b) Any person employed by the Department of Corrections
15who is a member of the Teachers' Retirement System established
16under Article 16 of this Code may elect to become a member of
17this System by notifying the board of his or her election in
18writing within 30 days after the effective date of this
19amendatory Act of the 98th General Assembly.
20    For such persons electing to become members, participation
21in the Article 16 system shall terminate on the first day of
22the third month following the month in which this amendatory
23Act rakes effect, and membership in this System shall begin on
24that date. Such persons shall become noncovered employees.
25(Source: P.A. 84-1472.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.