093_SB1145

 
                                     LRB093 10727 EFG 11560 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing  Sections  2-101,  2-105, 2-119.1, 2-126, 14-103.05,
 6    14-133, 18-101 and 18-120 as follows:

 7        (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
 8        Sec. 2-101.  Creation of system.  A retirement system  is
 9    created to provide retirement annuities, survivor's annuities
10    and  other  benefits  for  certain  members  of  the  General
11    Assembly,   certain   elected   state  officials,  and  their
12    beneficiaries.
13        The system  shall  be  known  as  the  "General  Assembly
14    Retirement  System".    All its funds and property shall be a
15    trust separate from all other entities,  maintained  for  the
16    purpose  of  securing payment of annuities and benefits under
17    this Article.
18        Participation in the retirement system created under this
19    Article is restricted  to  persons  who  become  participants
20    before  the effective date of this amendatory Act of the 93rd
21    General Assembly.  Beginning on that date, the  System  shall
22    not accept any new participants.
23    (Source: P.A. 83-1440.)

24        (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
25        Sec.  2-105.   Member.  "Member":  Members of the General
26    Assembly of this State, including persons who enter  military
27    service  while  a  member  of  the  General Assembly, and any
28    person serving as Governor, Lieutenant Governor, Secretary of
29    State, Treasurer, Comptroller, or Attorney  General  for  the
30    period of service in such office.
 
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 1        Any  person  who has served for 10 or more years as Clerk
 2    or Assistant Clerk of the House of Representatives, Secretary
 3    or Assistant Secretary of  the  Senate,  or  any  combination
 4    thereof,  may  elect  to become a member of this system while
 5    thenceforth engaged in  such  service  by  filing  a  written
 6    election  with  the  board.   Any person so electing shall be
 7    deemed an active member  of  the  General  Assembly  for  the
 8    purpose  of  validating  and transferring any service credits
 9    earned under any of the funds and systems  established  under
10    Articles 3 through 18 of this Code.
11        However,  notwithstanding  any  other  provision  of this
12    Article, a person shall  not  be  deemed  a  member  for  the
13    purposes   of   this  Article  unless  he  or  she  became  a
14    participant of the System before the effective date  of  this
15    amendatory Act of the 93rd General Assembly.
16    (Source: P.A. 85-1008.)

17        (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
18        Sec. 2-119.1.  Automatic increase in retirement annuity.
19        (a)  A  participant  who retires after June 30, 1967, and
20    who has not received an initial increase under  this  Section
21    before  the  effective  date  of this amendatory Act of 1991,
22    shall,  in  January  or  July  next   following   the   first
23    anniversary of retirement, whichever occurs first, and in the
24    same  month of each year thereafter, but in no event prior to
25    age 60, have the amount of the originally granted  retirement
26    annuity  increased as follows:  for each year through 1971, 1
27    1/2%; for each year from 1972 through 1979, 2%; and for  1980
28    and  each  year thereafter, 3%.  Annuitants who have received
29    an initial  increase  under  this  subsection  prior  to  the
30    effective  date of this amendatory Act of 1991 shall continue
31    to receive their annual increases in the same  month  as  the
32    initial increase.
33        (b)  Beginning  January  1,  1990,  for  participants who
 
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 1    remain in service after  attaining  20  years  of  creditable
 2    service  and  have  not  elected  to  stop contributing under
 3    Section 2-126(e), the 3% increases provided under  subsection
 4    (a) shall begin to accrue on the January 1 next following the
 5    date  upon  which  the participant (1) attains age 55, or (2)
 6    attains 20 years  of  creditable  service,  whichever  occurs
 7    later,  and  shall  continue  to accrue while the participant
 8    remains in service; such increases shall  become  payable  on
 9    January  1  or July 1, whichever occurs first, next following
10    the first anniversary of retirement.  For any person who  has
11    service  credit  in  the  System  for  the entire period from
12    January 15, 1969 through December 31, 1992, regardless of the
13    date of termination of service, the reference to  age  55  in
14    clause (1) of this subsection (b) shall be deemed to mean age
15    50.
16        (c)  The   foregoing  provisions  relating  to  automatic
17    increases are not applicable to  a  participant  who  retires
18    before  having  made contributions (at the rate prescribed in
19    Section 2-126) for automatic  increases  for  less  than  the
20    equivalent  of  one  full  year.   However,  in  order  to be
21    eligible for the automatic increases, such a participant  may
22    make arrangements to pay to the system the amount required to
23    bring  the  total contributions for the automatic increase to
24    the equivalent of one year's contributions based upon his  or
25    her last salary.
26        (d)  A  participant  who terminated service prior to July
27    1, 1967, with at least 14 years of service is entitled to  an
28    increase  in  retirement annuity beginning January, 1976, and
29    to additional increases in January of each year thereafter.
30        The initial increase shall be 1 1/2%  of  the  originally
31    granted  retirement  annuity multiplied by the number of full
32    years that the  annuitant was  in  receipt  of  such  annuity
33    prior  to  January 1, 1972, plus 2% of the originally granted
34    retirement annuity  for  each  year  after  that  date.   The
 
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 1    subsequent annual increases shall be at the rate of 2% of the
 2    originally  granted  retirement annuity for each year through
 3    1979 and at the rate of 3% for 1980 and thereafter.
 4        (e)  Beginning January  1,  1990,  all  automatic  annual
 5    increases payable under this Section shall be calculated as a
 6    percentage  of  the  total annuity payable at the time of the
 7    increase, including previous  increases  granted  under  this
 8    Article.
 9    (Source: P.A. 86-273; 87-794; 87-1265.)

10        (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
11        Sec. 2-126.  Contributions by participants.
12        (a)  Each participant shall contribute toward the cost of
13    his or her retirement annuity a percentage of each payment of
14    salary  received  by  him  or  her for service as a member as
15    follows:  for service between October 31, 1947 and January 1,
16    1959, 5%; for service between January 1, 1959  and  June  30,
17    1969,  6%;  for  service between July 1, 1969 and January 10,
18    1973, 6 1/2%; for service after January  10,  1973,  7%;  for
19    service after December 31, 1981, 8 1/2%.
20        (b)  Beginning August 2, 1949, each male participant, and
21    from  July  1, 1971, each female participant shall contribute
22    towards the cost of the survivor's annuity 2% of salary.
23        A participant who  has  no  eligible  survivor's  annuity
24    beneficiary  may  elect  to  cease  making  contributions for
25    survivor's annuity  under  this  subsection.    A  survivor's
26    annuity  shall  not be payable upon the death of a person who
27    has made this  election,  unless  prior  to  that  death  the
28    election has been revoked and the amount of the contributions
29    that  would  have  been  paid  under  this  subsection in the
30    absence of the election is paid to the System, together  with
31    interest  at  the  rate  of  4%  per  year  from the date the
32    contributions would have been made to the date of payment.
33        (c)  Beginning  July  1,  1967,  each  participant  shall
 
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 1    contribute  1%  of  salary  towards  the  cost  of  automatic
 2    increase in  annuity  provided  in  Section  2-119.1.   These
 3    contributions  shall  be made concurrently with contributions
 4    for retirement annuity purposes.
 5        (d)  In addition, each participant serving as an  officer
 6    of  the  General  Assembly  shall  contribute,  for  the same
 7    purposes and at the same rates as are required of  a  regular
 8    participant,  on  each  additional  payment  received  as  an
 9    officer.   If  the  participant  serves  as an officer for at
10    least 2 but less than 4 years, he or she shall contribute  an
11    amount  equal  to the amount that would have been contributed
12    had the  participant  served  as  an  officer  for  4  years.
13    Persons  who  serve  as officers in the 87th General Assembly
14    but cannot receive the additional payment to officers because
15    of the ban on increases in  salary  during  their  terms  may
16    nonetheless  make  contributions  based  on  those additional
17    payments for the purpose of having  the  additional  payments
18    included  in  their  highest  salary  for  annuity  purposes;
19    however,   persons   electing   to   make   these  additional
20    contributions  must  also  pay  an  amount  representing  the
21    corresponding employer contributions, as  calculated  by  the
22    System.
23        (e)  A person may irrevocably elect, within 60 days after
24    attaining  20  years  of creditable service or within 60 days
25    following the effective date of this amendatory  Act  of  the
26    93rd  General  Assembly,  whichever  is later, to stop making
27    employee contributions under this Section.  The election does
28    not affect the person's status as a participant, but a person
29    so electing thereby forfeits the accelerated 3% increases  to
30    which  he or she would otherwise be entitled under subsection
31    (b) of Section 2-119.1.
32    (Source: P.A. 90-766, eff. 8-14-98.)

33        (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
 
                            -6-      LRB093 10727 EFG 11560 b
 1        Sec. 14-103.05.  Employee.
 2        (a)  Any person employed by  a  Department  who  receives
 3    salary  for personal services rendered to the Department on a
 4    warrant issued pursuant to a payroll voucher certified  by  a
 5    Department  and drawn by the State Comptroller upon the State
 6    Treasurer,  including  an  elected  official   described   in
 7    subparagraph  (d) of Section 14-104, shall become an employee
 8    for purpose of membership in the  Retirement  System  on  the
 9    first day of such employment.
10        A  person who becomes a judge, constitutional officer, or
11    member of the General Assembly on or after the effective date
12    of this amendatory Act of the 93rd General  Assembly  and  is
13    not  eligible  to participate in the Judges Retirement System
14    of Illinois or the General Assembly Retirement  System  shall
15    be  deemed  an  employee  for  purposes of membership in this
16    System beginning on the first day of such service.
17        A person entering service on or after January 1, 1972 and
18    prior to January 1, 1984 shall become a member as a condition
19    of employment and shall begin making contributions as of  the
20    first day of employment.
21        A  person  entering  service  on or after January 1, 1984
22    shall, upon completion of  6  months  of  continuous  service
23    which  is  not  interrupted by a break of more than 2 months,
24    become a member as a condition of employment.   Contributions
25    shall  begin  the  first of the month after completion of the
26    qualifying period.
27        The qualifying period of  6  months  of  service  is  not
28    applicable  to:  (1) a person who has been granted credit for
29    service in a  position  covered  by  the  State  Universities
30    Retirement  System,  the  Teachers'  Retirement System of the
31    State of Illinois, the General Assembly Retirement System, or
32    the Judges Retirement System of Illinois unless that  service
33    has  been  forfeited  under  the laws of those systems; (2) a
34    person entering service  on  or  after  July  1,  1991  in  a
 
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 1    noncovered   position;  or  (3)  a  person  to  whom  Section
 2    14-108.2a or 14-108.2b  applies;  or  (4)  a  person  who  is
 3    serving  as a judge, constitutional officer, or member of the
 4    General Assembly.
 5        (b)  The term "employee" does not include the following:
 6             (1)  persons participating in members of  the  State
 7        Legislature,  and  persons  electing to become members of
 8        the  General  Assembly  Retirement  System  pursuant   to
 9        Section 2-105;
10             (2)  incumbents  of  offices normally filled by vote
11        of  the  people,  other   than   judges,   constitutional
12        officers, and members of the General Assembly;
13             (3)  except  as  otherwise provided in this Section,
14        any person appointed by the Governor with the advice  and
15        consent  of  the  Senate  unless  that  person  elects to
16        participate in this system;
17             (4)  except  as  provided  in  Section  14-108.2  or
18        14-108.2c, any person who is covered or  eligible  to  be
19        covered  by  the Teachers' Retirement System of the State
20        of Illinois, the State Universities Retirement System, or
21        the Judges Retirement System of Illinois;
22             (5)  an employee of  a  municipality  or  any  other
23        political subdivision of the State;
24             (6)  any  person  who becomes an employee after June
25        30,  1979  as  a  public   service   employment   program
26        participant  under  the  Federal Comprehensive Employment
27        and Training Act and whose wages or fringe  benefits  are
28        paid  in  whole  or  in part by funds provided under such
29        Act;
30             (7)  enrollees   of   the   Illinois   Young   Adult
31        Conservation   Corps   program,   administered   by   the
32        Department  of  Natural  Resources,  authorized   grantee
33        pursuant  to  Title VIII of the "Comprehensive Employment
34        and Training  Act  of  1973",  29  USC  993,  as  now  or
 
                            -8-      LRB093 10727 EFG 11560 b
 1        hereafter amended;
 2             (8)  enrollees   and  temporary  staff  of  programs
 3        administered by the Department of Natural Resources under
 4        the Youth Conservation Corps Act of 1970;
 5             (9)  any person who is a member of any  professional
 6        licensing  or  disciplinary  board  created  under an Act
 7        administered by the Department of Professional Regulation
 8        or a successor agency or created or re-created after  the
 9        effective  date  of  this amendatory Act of 1997, and who
10        receives per diem  compensation  rather  than  a  salary,
11        notwithstanding  that  such per diem compensation is paid
12        by warrant issued pursuant to  a  payroll  voucher;  such
13        persons  have  never  been  included in the membership of
14        this System,  and  this  amendatory  Act  of  1987  (P.A.
15        84-1472)  is  not  intended  to  effect any change in the
16        status of such persons;
17             (10)  any person who is a  member  of  the  Illinois
18        Health  Care  Cost  Containment Council, and receives per
19        diem compensation rather than a  salary,  notwithstanding
20        that such per diem compensation is paid by warrant issued
21        pursuant  to  a  payroll voucher; such persons have never
22        been included in the membership of this System, and  this
23        amendatory  Act  of  1987  is  not intended to effect any
24        change in the status of such persons; or
25             (11)  any person who is a member of the Oil and  Gas
26        Board  created by Section 1.2 of the Illinois Oil and Gas
27        Act, and receives per diem  compensation  rather  than  a
28        salary,  notwithstanding  that such per diem compensation
29        is paid by warrant issued pursuant to a payroll voucher.
30    (Source: P.A. 92-14, eff. 6-28-01.)

31        (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
32        Sec. 14-133.  Contributions by or on behalf of members.
33        (a)  Each participating employee shall make contributions
 
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 1    to the System,  based  on  the  employee's  compensation,  as
 2    follows:
 3             (1)  Covered  employees,  except as indicated below,
 4        3.5% for retirement annuity, and  0.5%  for  a  widow  or
 5        survivors annuity;
 6             (2)  Noncovered   employees,   except  as  indicated
 7        below, 7% for retirement annuity and 1% for  a  widow  or
 8        survivors annuity;
 9             (3)  Noncovered  employees  serving in a position in
10        which "eligible creditable service" as defined in Section
11        14-110 may be earned, 1% for a widow or survivors annuity
12        plus the following amount for  retirement  annuity:  8.5%
13        through  December  31, 2001; 9.5% in 2002; 10.5% in 2003;
14        and 11.5% in 2004 and thereafter;
15             (4)  Covered employees  serving  in  a  position  in
16        which "eligible creditable service" as defined in Section
17        14-110  may  be  earned,  0.5%  for  a widow or survivors
18        annuity plus the following amount for retirement annuity:
19        5% through December 31, 2001; 6% in 2002; 7% in 2003; and
20        8% in 2004 and thereafter;
21             (5)  Each security employee  of  the  Department  of
22        Corrections or of the Department of Human Services who is
23        a covered employee, 0.5% for a widow or survivors annuity
24        plus  the  following  amount  for  retirement annuity: 5%
25        through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
26        in 2004 and thereafter;
27             (6)  Each security employee  of  the  Department  of
28        Corrections or of the Department of Human Services who is
29        not  a  covered  employee,  1%  for  a widow or survivors
30        annuity plus the following amount for retirement annuity:
31        8.5% through December 31, 2001; 9.5% in  2002;  10.5%  in
32        2003; and 11.5% in 2004 and thereafter.
33        (b)  Contributions  shall  be  in the form of a deduction
34    from compensation and shall be made notwithstanding that  the
 
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 1    compensation  paid  in  cash to the employee shall be reduced
 2    thereby below the minimum prescribed by  law  or  regulation.
 3    Each  member is deemed to consent and agree to the deductions
 4    from compensation provided for in  this  Article,  and  shall
 5    receipt in full for salary or compensation.
 6        (c)  All  or  a  portion  of  the  employee contributions
 7    required under this Section may  be  paid  by  the  State  on
 8    behalf   of   the  employee  through  a  separate  line  item
 9    appropriation to the department for that purpose;  this  does
10    not,  however,  apply  to judges, constitutional officers, or
11    members of the General Assembly.
12    (Source: P.A. 92-14, eff. 6-28-01.)

13        (40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
14        Sec. 18-101. Creation of fund.
15        A retirement system is created to be known as the "Judges
16    Retirement System of Illinois". It shall be a trust  separate
17    and  distinct  from  all  other  entities, maintained for the
18    purpose of securing the payment of annuities and benefits  as
19    prescribed herein.
20        Participation in the retirement system created under this
21    Article  is  restricted  to  persons  who become participants
22    before the effective date of this amendatory Act of the  93rd
23    General  Assembly.   Beginning on that date, the System shall
24    not accept any new participants.
25    (Source: Laws 1963, p. 161.)

26        (40 ILCS 5/18-102) (from Ch. 108 1/2, par. 18-102)
27        Sec. 18-102. Purpose.
28        The purpose of the system is to  establish  an  efficient
29    method   of   permitting   retirement,  without  hardship  or
30    prejudice, of  certain  judges  who  are  aged  or  otherwise
31    incapacitated,  by  enabling  them to accumulate reserves for
32    themselves and their  dependents  for  old  age,  disability,
 
                            -11-     LRB093 10727 EFG 11560 b
 1    death, and termination of employment.
 2    (Source: Laws 1963, p. 161.)

 3        (40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
 4        Sec.  18-120.  Employee participation.  An eligible judge
 5    who is not a participant shall become a participant beginning
 6    on the date he or she becomes an eligible judge,  unless  the
 7    judge  files  with the board a written notice of election not
 8    to participate within 30 days of the date of  being  notified
 9    of the option.
10        A  person electing not to participate shall thereafter be
11    ineligible to become a participant  unless  the  election  is
12    revoked as provided in Section 18-121.
13        However,  notwithstanding  any  other  provision  of this
14    Article,  a  person  shall  not  be  deemed  an  eligible  or
15    participating judge for the purposes of this  Article  unless
16    he  or  she  became  a  participant  of the System before the
17    effective date of this amendatory Act  of  the  93rd  General
18    Assembly.
19    (Source: P.A. 83-1440.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.